Media Coverage: Julia Scheffer, Global Communications and Marketing Manager at AltoPartners, shares her views on the nuances of hiring in emerging markets, with particular emphasis on Africa.

This article was first published in the online version of the HR Grapevine Magazine.

The world we live in is getting smaller and more competitive; multi-national companies (MNCs) are crowding emerging markets in the hope of getting a slice of an ever-decreasing cake. But getting a slice of the cake is the easy part. Deciding who to eat it with is substantially harder.

The challenges of hiring in an emerging market are manifold as Julia Scheffer, AltoPartners Global Head of Communications and Brand, attests. Most obviously, there’s a lack of understanding of the local language, culture, context and environment and overall nuances of the country in question. Add major infrastructure and developmental challenges into the mix – roads that are still being built or telecommunication and electrical supply issues – and these are plenty to get to grips with.

“An understanding of the unique complexities of an emerging market is vital,” Scheffer says, “as too often an established company will go in with the mindset that ‘what worked in a developed economy will work here’. This is not the case, and many have experienced failures because of a fundamental lack of understanding.”

Due to scarcity, the war for talent in such areas is so intense that many a veteran would be shocked at its ferocity. One must also bear in mind that “local markets want local employees and leaders,” Scheffer adds. MNCs are adapting to this by sending in an expat team on a short-term basis to help with transition and to build up the local team but, Scheffer points out, “the emphasis is on having locals in leadership positions.”

HR departments must also consider the initial dangers of sending an expat team out there in the first place.

Dr Tim Hammond, Chief Medical Officer at medical and security provider CEGA, says: “The medical and security needs of employees in emerging destination are becoming increasingly intertwined. The journey to a doctor’s appointment for instance, may call for a security-trained driver in a secure vehicle.

“Employers are beginning to request integrated medical and security assistance to enable them to manage employees risks and emergencies in one place. They want to know everything from the availability and accessibility of overseas care, to the likelihood of disease, civil unrest, piracy or terrorism before their workers set off abroad.” Once the dangers are known staff can be trained to handle them.

This just adds another layer of complexity onto what is already a matrix of intricacy.

Scheffer gives Africa as an example. “Many companies from developed markets mistakenly see the African continent as one holistic entity,” she says, “but they don’t look at the fact it’s made up of 54 independent countries, each with its own way of doing business.”

Laws of attraction

Again, due to rigidity of approach and candidate criteria, MNCs are overlooking talent that is right in front of them.

“The talent and skills may not be in the country in the exact form they’re looking for, and they need to be far more flexible in their approach rather than search for a person who has the right mix of competencies, skills and local market insights, experience and expertise.”

If it can’t be found though, it can always be brought back. The Homecoming Revolution, an African movement, seeks to bring talent back from developed countries. This provides the desired mix of worldwide experience alongside local knowhow.

And, Scheffer highlights, it’s not just about money: “It is about the opportunity to make a difference in their home countries and for them to be a part of the development of their nation.”

Cracking India

David Oxley was assigned by BP to work at their partner Reliance in India, where he serves as Chief HR Officer.

“India is huge,” he says. “I have no lack of volume for any job application. Or no lack of academic qualifications.”

Like Scheffer, he stresses that the hiring challenges are nuanced. He has few problems for narrow technical engineering roles but “for middle and senior leadership roles there is a lack of multi-national calibre talent.

“Part of me says this is okay as the challenge here is to develop the local talent. Equally, you can make mistakes if you view talent through Western managerial lenses. The societal norms in India are different. Consequently, management talent is different.”

He explains this dissimilarity further: “There is a huge issue with not disappointing or upsetting people. In an Indian context the management structures are more prescriptive and impose verifications and checks as a means to balance this. For a Western MNC these can be deceptive and often result in a different set of cultural assimilation (both ways!).”