”Increasing Globalization and Its Effect on Human Resource Management”
The role of human resources has evolved over time due to the driving forces of globalization. Globalization is driven by shortages of talent, the ease of recruiting low cost labor, and technological advancements. The evolvement of globalization has brought many challenges for health human resources. Some challenges are tax regulations, finding adequate talent, controlling risk, relocating workers. Health human resources have taken on more modern and complex roles in the categories of Strategic business partner, Change Agent, Employee champion, and Administration. They now focus more on long tem objectives. Only companies hta have human resources that adapt to the changing world will advance. There are many factors driving globalization today. Some factors include: shortages of talent in developed countries, the availability of low cost labor and increasing consumers in developed countries, and technological improvements (Kapnor,2014). There are challenges associated with globalization such as finding individuals wiling to relocate to foreign countries for employment. As modern business evolves, the roles and responsibilities of human resources are becoming critical in accommodating workers and handling aspects of globalization. Rapid globalization of business has increased the need for companies to relocate people and source talent from around the world. Deploying employees across different borders is critical to the success of companies internationally. However, managing a global mobility program is incredibly complex, and is a challenge for human resources. Companies face numerous challenges such as: navigating intricate and dynamic nature of national and regional tax regulations, controlling risk against a vast, global backdrop, coordinating assignees’ taxes, and finding suitable technology to help manage it all. There is a shortage on the demand and supply for talent globally and this is also a challenge for human resources around the world. There is a shortage of talent in developed countries. Most developed countries, including the United States, Germany, and Japan, face these shortages because of aging and the retiring of baby boomers. Despite what seems opposite, there are actually more workers retiring than entering the workforce. “By 2020, for every five retiring workers, only four new workers will join the labor force in most developed countries” (Kapnor, 2014). A study conducted estimated that the United States will need to add 26 million workers to the talent pool in order to sustain economic growth of the past two decades unless there is a technological breakthrough to replace the manpower The shortage between the demand and supply of talent is likely to continue to increase especially for highly-skilled workers, such as healthcare professionals, for the next generation. Emerging nations with larger populations such as those including Brazil, Russia, India, and China face a critical challenge of sustaining a workforce with adequate skills (Kapnor, 2014). Poorer countries also bear the burden of supply and demand. The availability of low cost labor from emerging countries drives globalization. Multinationals have the advantage of attracting leading talent from merging countries such as Brazil, Russia, or China, or to outsource from them. “Population growth differs greatly in developing countries versus developed countries. In developed countries such as the United States and Japan, the annual growth rate is less than 0.3 perent, while in the remaining countries, population is growing almost six times as fast”. The supply of, young professional talent in emerging markets is growing at 5.5 percent annually while he number in developed countries is growing at just 1 percent annually (McKinsey Global Institute, 2005 II). There are more university educated graduates produced by developing countries than in higher wage...
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McKinley Global Institute, ‘The Emerging Global Labor Market: Part I- The Demand for Offshore Talent
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