ORC Sightlines

February 2004

Leading Companies Share Global Diversity Strategies

Global companies often struggle with how best to manage diversity on a worldwide scale. Frequently at issue are the definition of diversity outside the US context and the proper balance to strike between promulgating universal corporate values and respecting local differences. Every company has to hammer out its own answers to those questions, but most rely on two fundamental principles: understand the local issues and involve individuals at all levels and locations in the effort.

At last month's meeting of ORC's Workforce Opportunity Network, four leading multinational companies outlined their approaches to global diversity. Each represented a different stage in the process and a strategy in keeping with the culture of its organization.

For example, one company, with a long R&D tradition and a management culture that demands in-depth quantitative analysis of issues, gathered information about local issues through a formalized, comprehensive data-gathering program. In-depth surveys, translated by language and cultural experts, as well as focus groups and senior management interviews, explored what differences are seen as important in various places, how employees view the corporation's culture, and what values are important.

In another smaller and much younger technology company, the head of diversity embarked on a world tour in order to learn firsthand about local issues while developing personal relationships with the managers and employees who would be developing and implementing diversity management plans in their locations.

A third organization, well advanced in its diversity journey in the US and abroad, encourages grass-roots employee network groups around the world to surface and address issues of concern locally and to the corporation as a whole. While the groups are created and controlled by their members, the corporation invests heavily in their support and provides an infrastructure that fosters sharing and integration among the groups.

The fourth company, driven largely by its interest in reaching diverse markets, stresses integration of diversity principles into its marketing and management practices. By managing organizational development, employee relations, and management training on a global basis, this company seeks to incorporate multicultural awareness in everything it does.

All of these companies used means tailored to their own situations to accomplish their common goals of learning about local issues and values and gaining commitment from the people on the ground in those locations.

For more information on global diversity practices or ORC's Workforce Opportunity Network, contact Liz MacGillivray, 212-852-0406.

Short-Term Expatriate Assignments Gain Popularity

Mostly due to cost-cutting pressure and the need to develop employees with international management skills, short-term expatriate assignments have become a popular option for many multinational companies, according to results of the 2003 Global Survey of Short-term International Assignment Policies, released in late December. In fact, the majority of the 550 North American, European, and Asian-based multinationals participating in the survey predicted that the number of such assignments would increase in their organizations.

Managing short-term international assignments (those lasting from 3 to 12 months) represents a significant challenge for human resource and business unit managers. Some of the key issues cited by participants include keeping track of assignments to avoid tax consequences, coordinating the overall program, establishing financial incentives, and developing appropriate per diems.

The survey was conducted jointly by ORC Worldwide, TheMIGroup, the SHRM Global Forum, and Worldwide ERC. The results include an overview of remuneration policies and practices offered to short-term assignees. For more information, contact Samantha Blackhurst.

Article Reviews Compensation Fundamentals

Sbusiness, the management magazine for executives, managers, and professionals in the high-technology services and support industry, invited ORC Worldwide consultant Joan Naudts to teach its readers the basic principles behind a sound compensation program. Sightlines readers may find the series of three articles useful as quick references for line managers or HR professionals new to the compensation field:

Part I lays out the issues that need to be addressed in order to establish a fundamental compensation philosophy.

Part II takes readers through methodologies for evaluating jobs and determining their relative worth.

The final piece in the series, covering how to set pay rates, will appear later this month and will be posted in our on-line Reading Room.

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