Globalization offers the opportunity for organizations to span multiple continents and derive value from diametrically different cultures and locales. With that opportunity, however, comes challenging employee management issues. Human capital management systems work to provide standardizations multinational corporations need and offer the flexibility to satisfy very unique local employee demands. The ability to enjoy high employee efficiency, regardless of location, is just one benefit of a unified HCM system.
Deploying a human capital management system globally, throughout an organization of both corporate and subsidiary locations, can be a far easier process technologically than managerially. Achieving global HCM solution buy-in can be a task that succeeds only through a delicate blend of people-centric education and intricate logistical planning.
Subsidiary or field locations can often be resistant to such systems, despite the clear benefits they offer. In order to truly achieve understanding and acceptance throughout all levels of the organization, a full HCM strategy and corresponding network of support must be developed.
Encouraging Local Subsidiary Buy-In
Worried about facing criticism and push back as you rollout your HCM solution? You're not alone. Front-line employees, or employees who identify more clearly with your subsidiary than your corporate entity, may feel like an HCM solution is simply another piece of software that will scream for attention while not delivering on its promises. That's why the first important step toward a successful HCM deployment is creating the human capital strategy and providing your teams with the tools to support it.
Strategizing isn't enough, however, especially when that strategy is kept solely at the corporate level instead of combining with tactical considerations at the local and subsidiaries level. A lack of organizational awareness could ultimately undermine HCM success.
The next step after creating the overarching strategy — which should at the very least include consideration of locally based issues — is developing the education to support it. And lest the cart be put before the horse, education related to both the strategy and the solution must precede implementation to loop in all affected parties.
HCM Wins = Better Management and Better Financials
It's likely that subsidiary leaders will be surprised by how high the cost of an HCM solution can be, especially if they aren't seeing the bigger global picture. By including key human capital metrics within the strategy and education, you can begin to relay the appropriate story for you. Whether through dollars saved, greater productivity achieved or a lessened strain on management resources, those metrics should become a bedrock upon which to build a solid and relatable HCM strategy.
Painting the Human Capital Picture
Lack of understanding, fear of or irritation with change or previous failed integration attempts can easily turn off a local manager to the whole concept of an HCM solution — something that makes acquiring buy-ins that much more difficult. To get around those impediments, the fullest possible picture of human capital successes must be painted. Showing its two-pronged benefit — both how it benefits corporate locations and subsidiaries alike — can lead to a shared sense of both pain (cost) and gain. Those benefits are best shown through the comprehensive educational plan that accompanies an HCM rollout, as well as examples of successful HCM implementations.
International Automotive Components (IAC) is just one example of an organization that successfully moved to a unified global solution. They have a presence in 22 countries with over 100 locations and 32,000 employees. As is common in large multinational corporations, differing locations implemented various employee-management systems — using 30 types of payroll processing software alone. Because of this diversity, Bonnie Tibitowski, IAC's Senior Director of Financial Shared Services, highlighted her organization's need to change to "one global system across all of IAC to be able to standardize processes and procedures, achieving local and global compliance and ensuring accurate and timely pay for their employees across the globe to support their organization's growth."
By employing a strategy and educational plan that shows manpower and monetary savings at each level while supporting your organizations overall mission, you can silence the critics and facilitate a comprehensive global HCM solution buy-in to support growth for both your local and global subsidiaries.
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