Today’s business world is in many ways different as it used to be 40-60 years ago. One of such dissimilarity concerns the staff turnover. Whereas in the 1950’s, 60’s and 70’s many employees used to work their entire life in only one or two companies the employment culture changed drastically to this day in this regard. Nowadays enterprises have to deal with (early) retirement issues form the so called baby boomer generation and beyond this it is much more common to change workplaces every few years too. Present figures underline that the annual 2005/06 voluntary turnover rate for the US was circa 23.4% which was an increase by 0.7% from the previous year. Although this high value might be specific to the US, another survey identified this rate for the UK in “old Europe” still to be 17.3% in 2007. These numbers are especially for companies worrying because each job change also means a loss of money.
Including the direct costs (e.g. recruitment, selection and training) as well as the indirect ones (e.g. loss of expertise, increased workloads for colleagues plus morale effects on employees) researchers estimate costs between 30% of yearly salary of entry-level staff and up to 400% for high-level employees. Since the impact for firms seems to be significant it has to be their goal to minimize the potential turnover causes. Regarding the UK survey the key ones are change of career (55%), promotion outside of organization (45%), level of payment (41%) and lack of career opportunities (33%). The good thing is that based on a US study the majority of asked business executives, namely over 80% in 2008 against 41% in 2007, realized the top priority of employee retention and its effect on the company overall performance.
One firm that was always not as strongly affected as others from high staff turnover but still suffered from it is the Solvay Group. Due to its growing international strategic orientation, the enterprise underwent a restructuring process until 2007 and managed in this course to improve one of the key retention aspects, namely its workforce mobility program. In line with the homonymous human resource issue, the author will initially state the different mobility types including their determinants. After emphasizing the close link between the retention tool of talent management and international mobility including current survey data it will be analyzed how successful Solvay uses its expatriate program to gain a competitive advantage.
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Table of Contents
1. Introduction
2. Types of labor mobility and overview of its determinants
3. Flexible workforce mobility – one Tool to increase company productivity plus retain “high potential”
4. The Solvay Group
4.1. Talent management
4.2. Workforce mobility – overview
4.3. The workforce mobility process and its improvements
4.4. Challenges
5. Conclusion
6. List of literature
Objectives and Topics
This paper examines how international workforce mobility serves as a strategic tool for talent retention and productivity enhancement within the Solvay Group. It analyzes the correlation between corporate mobility support, expatriate management, and competitive advantage in a global business environment.
- Evolution of staff turnover and retention strategies in modern enterprises.
- Determinants of labor mobility and its impact on organizational productivity.
- Talent management structures and the role of expatriation at Solvay.
- Optimization of the workforce mobility process, including support services and transition management.
- Challenges associated with global mobility, including work-life balance and career development.
Excerpt from the Book
4.3. The workforce mobility process and its improvements
In conjunction with the already advanced restructuring processes within Solvay a manager named Lorent formerly working in the Plastics sector was appointed to the HR department in 2006 to bring forward improvements of the workforce mobility program. Since mobility with the group corresponds mainly to assignments abroad Lorent’s task was to meliorate the entire expat transitions. Up to now he fulfilled his job as he made flows easier, created more value for them as well as allowed the firm to be more productive overall.
Before people can be sent to other countries they need to be identified and this was not always easy in the past. There was a lack of transparency because even though generally there was information available it was not consistent across the group. If expertise was needed in one region or business sector it was difficult for employees from different areas to know that. In such cases the personal network only helped so the search was informal and not always well planned. Lorent and his colleagues changed that by putting in place or advancing open job postings where staff could identify themselves as potential employees for vacancies. Moreover the round tables provided a new platform in the search for talents.
As soon as an aspirant was found the expatriate package was determined. The calculation was until recently based on the Mercers cost of living index but nowadays Solvay uses their own computation which is supposed to be more individual focused. The organization weights the aspect of supporting the workers family/partner (e.g. schooling for kids, help in job search for partner, insurances, free home flights) today more than in the past because the total costs of finishing a project unexpectedly earlier due to private challenges can be very high. Lorent also pushed for further improvements in a way that an online simulation tool is now available making it easy and transparent to evaluate the expected expat terms.
Summary of Chapters
1. Introduction: Discusses the rising challenge of staff turnover in modern businesses and the strategic importance of employee retention for company performance.
2. Types of labor mobility and overview of its determinants: Defines labor mobility and categorizes movements into job changes, occupational switches, and geographical relocations, driven by personal and structural factors.
3. Flexible workforce mobility – one Tool to increase company productivity plus retain “high potential”: Highlights the link between corporate support for international mobility and overall worker productivity, backed by industry survey data.
4. The Solvay Group: Profiles Solvay's corporate structure and its strategic evolution toward a centralized HR management model focusing on international mobility.
4.1. Talent management: Explains how Solvay manages its internal talent pool and identifies successors through yearly evaluations and talent roundtables.
4.2. Workforce mobility – overview: Details the history and implementation of Solvay's expatriate strategy, including the "triple-two rule" for leadership development.
4.3. The workforce mobility process and its improvements: Describes the operational enhancements led by the HR department to increase transparency and support for expatriates.
4.4. Challenges: Addresses ongoing difficulties in the mobility process, such as short-notice changes in assignments and the need for better family support.
5. Conclusion: Summarizes the benefits of proactive mobility management for Solvay, emphasizing the gains in productivity and retention.
6. List of literature: Provides a comprehensive bibliography of the sources cited throughout the paper.
Keywords
International HRM, Workforce Mobility, Solvay Group, Talent Management, Employee Retention, Expatriates, Corporate Productivity, Human Resources, Career Development, Labor Mobility, Staff Turnover, Global Strategy, Organizational Restructuring, Mobility Index, Assignment Support
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the role of international workforce mobility as a strategic tool for increasing company productivity and improving talent retention, specifically using the Solvay Group as a case study.
What are the central themes discussed?
The central themes include the changing nature of modern employment, the cost of high staff turnover, the correlation between mobility support and productivity, and the optimization of HR processes for expatriates.
What is the main research objective?
The objective is to analyze how Solvay successfully utilizes its expatriate program and mobility support mechanisms to gain a competitive advantage in the global market.
What scientific methods were employed?
The author employs a case study approach, utilizing internal company practices, HR survey data, and industry research from reputable sources to evaluate the effectiveness of Solvay's mobility programs.
What does the main body of the paper cover?
The main body examines the types and determinants of labor mobility, the strategic organizational structure of Solvay, the redesign of their talent management, and the operational improvements made to their expatriate processes.
Which keywords best describe this study?
Key terms include International HRM, Workforce Mobility, Solvay Group, Talent Management, Employee Retention, Expatriates, and Corporate Productivity.
What is the significance of the "triple-two rule" mentioned in the text?
The "triple-two rule" is an internal Solvay policy requiring candidates for senior leadership positions to have experience across two divisions, two functions, and two different countries, emphasizing global mobility as a necessity for advancement.
How has Solvay improved its expatriate support services?
Solvay has improved these services by introducing an online simulation tool for package transparency, implementing professional relocation services, and establishing a mentoring system to aid in post-assignment reintegration.
- Citar trabajo
- Christian Baumann (Autor), 2009, Workforce Mobility using the example of the Solvay Group , Múnich, GRIN Verlag, https://www.grin.com/document/134005
