When multinational companies decide to enter into an emerging market with the hopes and expectations that what worked in established markets will work in emerging markets too, they are often faced with failures. There is war for talent going on in emerging markets and that is what makes the situation more complex for multinationals to operate it. The recruitment and hiring process is pretty much similar but there are a number of challenges that have to be faced in order to successfully hire and retain talent in these markets.
Many multinationals face failure simply due to their lack of awareness about the market they are entering. These firms fail to completely understand the complex nature of the emerging markets and this is what makes them fail to settle in. The local culture, environment and the way things are done is quite different which is what makes settling in a crucial effort for the multinationals. One of the most crucial challenges is the shallowness if the talent pool in these markets. While the multinationals fail to understand the local language, culture and environment, the search for the best talent is also very intense as the specific skills required by the multinationals are limited in amount. In countries like India and Africa, there are a very few number of professionals that have the skills and expertise required to work for a multinational and even fewer for executive roles.
This is where a search firm comes in. Multinational companies, in such situations, look to local search firms to fulfil their hiring needs. This is mainly because of the fact that local search firms better understand the dynamics of the local community and are in a better position to conduct a more specific search for the right talent rather than companies from a foreign land. Executive search firms that have their roots in these emerging markets are better equipped to dig in the markets and reach out to the most qualified individuals from the locals. Additionally, they are also efficient in negotiating the best salary packages for the company because the locals do not feel like they are being taken advantage of from foreign companies.
Moreover, external search firms also serve as a source of advice and guidance to the company that chooses to partner with them. They help the companies cater to the needs of the locals in a better way by bridging the language and cultural gap between the two parties. This leads to the establishment of a satisfied and well-motivated workforce that is happy to work for the company because they feel valued. Furthermore, external search firms are also able to provide industrial insights to the company from other competitors or any past experiences that they have had in the respective local markets. This gives the organization an edge over the locals and ensures a smooth process of settling in and establishing a successful business in that particular emerging market. They additionally also help the multinationals with compliance with the local laws and regulations.