Problems and Challenges Faced by Global Firms in Africa, Asia and the Middle East
The venture into the international market is aimed at expanding a firm's profit. The management of international human resource requires current information relating to employee benefits required in the different market. To leverage a company's human resource, strategic management is required for administrative and information control, retention and attraction of the best talent and the resultant competitive advantage of having the best employees in the global market. This essay will discuss the challenges faced by international companies in the management of international human resources in Africa, Asia, and the Middle East.
Compliance with regulations relating to employee benefits in the different countries in the effort of ensuring that the company does not receive complaints from the labor unions. The three markets have varied commitments in aspects such as retirement benefits even in the strained economic conditions experienced all over the globe. International companies thus face problems in flexing and execution of their employee benefits across the three markets to fit the varied government legislation, cultural variation, and the worker expectation.
The second challenge faced relates to the creation of competitive employee programs aimed at attracting and retaining the best talent in the markets. International companies have an international image to guard, face a relatively increased competition and require in most instances specialized skill. To meet this requirement a company may have to structure employee programs that exceed standard compensation to ensure employee comfort and increased productivity. The company thus faces the challenge of meeting this high standard in the different market segments while still maintain profitability.
The third challenge faced is the acquisition of a cost-effective method of acquiring and administering global benefits. The expansion into international markets calls for human resource expertise that could work out employee benefits in the different market. This kind of expertise would be needed to draw up programs in the markets and in different growth stages for the company and country. There lacks this kind of expertise which would be too expensive to hire if available. A company is thus forced to outsource different experts a venture that is often expensive and risks a company's confidentiality as the three markets have varied security issues and competitors.
Human resource managers face increased a cost of administering employee benefits. The managers face increased challenges in maintaining a competitive advantage over other international and local firms. The implications of this are increased the cost of employment and thus reduced profitability.