International Human Resource Management: Trends and Challenges Faced by Google

This report evaluates the current trends and challenges faced by multinational corporations in international HRM practices, with a focus on Google. The report identifies three key challenges faced by Google, including technological changes, demographic challenges, and educational issues, and provides recommendations to address these issues.

International Human Resource Management
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Executive Summary
The aim of this report is to evaluate various current trends/challenges which
multinational corporations face regarding international HRM practices. The case of Google is
taken in this report which is facing three key international HRM challenges which include
technological changes, demographic challenges, and educational issues. The change in
technology increases resistance between employees, and it resulted in causing workforce
shortage because it is difficult for employees to adopt as per the latest technologies. The
demographic changes make it difficult for Google to retain talented employees in the
workplace. The educational factors make it difficult for Google to fulfil its global talent
demand and maintain a qualified workforce. Various recommendations are given in the
report to address these issues which include providing training to employees in order to
prepare them for technological changes and making older employees adopt as per the latest
technologies. Promoting employee engagement also assist in retaining millennial employees
in the workforce and providing higher education facilities will improve the qualification of
workforce of the company across the globe which addresses the challenges relating to
shortage of qualified workforce.
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Table of Contents
Introduction...............................................................................................................................3
HR Practices in the MNC............................................................................................................4
Trends/challenges in International HRM...................................................................................4
Technological changes...........................................................................................................4
Demographic changes............................................................................................................5
Education................................................................................................................................6
Impact of Trends/challenges in International HRM on MNC.....................................................6
Technological changes...........................................................................................................6
Resistance to change..........................................................................................................6
Adopting latest technologies.............................................................................................7
Dealing with workforce shortage.......................................................................................7
Demographic changes............................................................................................................7
Older “Non-traditional” Workforce...................................................................................8
Millennial issues.................................................................................................................8
Education................................................................................................................................8
Qualified workforce...........................................................................................................8
Talent management...........................................................................................................9
Recommendations.....................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
In today’s competitive business world, the importance of competitive advantage has
grown substantially. The corporations focus on generating a competitive advantage by
improving their operations. The corporations focus on implementing effective human
resource management (HRM) policies in order to attract qualified employee from all across
the globe and retaining them for a longer period of time. By evaluating future trends and
challenges, multinational corporations ensure that they are able to satisfy their human
capital needs even in adverse market conditions. MNCs face a number of challenges relating
to change in trends of HRM practices across the globe since they hire employees in different
countries (Reiche, Stahl, Mendenhall & Oddou, 2016). In this report, the case of Google LLC
will be evaluated in order to identify the three key trends/challenges relating to
international HRM which the company faces. This report will also analyse the impact of
these three trends on the HRM practices of Google. Moreover, recommendations will be
given in the report for Google to address the international HRM trends/challenges in order
to meet the human capital requirements and sustain its future growth.
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HR Practices in the MNC
Google LLC is an America-based organisation which operates in technology,
consumer electronics, internal and software industry. It is a leading subsidiary of Alphabet
Incorporation. The company is a global leader since it provides high-quality services to its
customers. Effective HRM practices are one of the key contributors to the success of the
organisation. It is known for implementing HR policies which are targeted towards building
strong and positive relationships with employees. Therefore, the company attracts a large
number of highly talented individuals from all across the globe. It receives over 2 million job
application each year, and it has currently hired more than 88,110 worldwide as of 2017
(Statista, 2017). The corporation has adopted a thorough HR procedure which focuses on
finding the best candidates from all across the globe. However, the company faces many
issues relating to its HR practices due to changes in international HRM policies.
Trends/challenges in International HRM
Following are three major trends and future challenges which create barriers and
adversely affect the operations of multinational corporations while managing their business.
Technological changes
The structure of the global workforce is changing along with the power of
technology. With the advancement in technology, the permanent loss of jobs has become a
major issue in the international HRM. As the future of technological progress, the
opportunities and challenges faced by MNCs relating to the same are affected as well. The
employment market is changed by the technological changes because narrow industry-
specific skills employees are experiencing hardship because of becoming outmoded by
automotive workers (Bardoel, Pettit, De Cieri & McMillan, 2014). The future re-education
burden on these employees is heavy as well. MNCs prefer to outsource their work to other
countries since it reduces their overall costs. However, with the advancement in technology,
it has become difficult for corporations to hire employees who understand how to work
with the latest technology while at the same time retain them for a longer period of time
(Jiang, Lepak, Hu & Baer, 2012). As per technology progresses, the requirement of qualified
workers increases as well due to which corporations face issues of layoffs and
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retrenchments, and they also find it difficult to hire talented workers and retain them
without giving huge salary packages.
The innovations in technology have also created both opportunities and threats for
the HR managers. Now, fewer employees have to work in the central office locations since it
has become easier for them to do their job remotely (Jiang, Wang & Zhao, 2012). These
trends are also increasing diversity in the workplace which assists in the growth of cross-
cultural, multigenerational and flexibly skilled workforce. However, it has also increased the
competition between MNCs since qualified employees receive handsome salary packages
from other corporations which make it difficult for the HR management to retain them for a
longer period of time (Banerji, 2013). For example, most MNCs prefer to hire employees
through online websites which provide these services. The corporations can conduct tests
and evaluate the performance of candidates before setting up the interviews which remove
the guesswork from the operations.
Demographic changes
Demographic shifts are referred to the continuous changes in the workforce patterns
which creates new challenges for HR department while operating at an international level.
One of the demographic issues which the HR department faces is related to the aging
population due to which two key concerns are raised. Firstly, the aging workforce resulted in
potentially killing the intellectual property and organisational memory when the workforce
retires. The second issues are related to the subsequent demand for post-retirement
pensions/incomes, welfare services and public health benefits which companies have to
provide to its workforce which increases their expenses (Caligiuri & Bonache, 2016). In the
technology field, the HR department has to deal with the issue of demographic issue as well.
Most of the employees working in these corporations are millennial, and the HR department
has to meet their standards in order to retain them in the organisation. The emergence of a
new younger workforce is also called ‘lost generation’. These individuals prefer to work for
their own ventures, and they prefer to establish start-ups rather than working for some
other corporate multinational company. The technology corporations generate a
competitive advantage in the industry by retaining highly qualified and talented individuals;
however, the demographic changes make it difficult for them to achieve this objective which
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creates new challenges for HR department while managing operations in international
markets (Bieling, Stock & Dorozalla, 2015).
Education
The international traditional educational sector is a challenge for the HR department
of multinational corporations while they manage their operations overseas. The
requirement of quality of tertiary and technical qualifications varies across institutional
provides due to which the challenges faced by the HR department have increased. In the
technology field, the importance of smart work is dominating the employment growth
patterns. The corporations operating in this industry are focused on reducing the number of
labour force by relying on technological advancements (Decramer, Smolders &
Vanderstraeten, 2013). However, MNCs face many problems in this sector since they have
to hire qualified employees in different countries which make it difficult for them due to
lower educational standards (Story, Barbuto, Luthans & Bovaird, 2014). The HR department
has to pay high salary packages to talented employees in order to ensure that they are
retained in the organisations. However, firstly they have to find employees who are
qualified enough to handle the pressure of the particular task and how are educated enough
to understand the operations of the project. Moreover, the corporations also have to
provide educational facilities to its employees for their career development which create
new challenges for them since it increases the overall costs and it also affects the
performance of the employees at the workplace.
Impact of Trends/challenges in International HRM on MNC
Google has generated a competitive advantage over its competitors by
implementing effective HRM policies in the organisation. However, its HR department faces
various current international HRM challenges while managing its operations. Following are
three current HRM issues which HR department of Google faces.
Technological changes
As discussed above, the changes in technologies create various challenges for
corporations operating in technology related field and Google is no exception. The company
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is known for adopting the latest technologies in its operations which makes creates various
challenges for its workforce.
Resistance to change
One of the key issues which the HR department at Google faces is resistance to
change by employees. Since it is a technology company, it continuously changing its
procedures in order to adopt the latest technologies to stay relevant in the industry.
However, the continuous change in technology makes it difficult for employees to keep up
with the trends especially in foreign countries (Maheshwari & Vohra, 2015). It is easier for
Google to change and adopt new technologies in its headquarters, however, its employees
are situated all across the globe, and they might face difficulties due to continuous changes
in the operations of the company. Many employees also resist such changes by combating
with the management which create various challenges for the HR department of the
company (Cullen, Edwards, Casper & Gue, 2014). The HR department has to ensure that
employees are not resisting to the change and they are not quitting their jobs for the same
reason.
Adopting latest technologies
Google is constantly changing its operations to adopt the latest technologies, for
example, the company is focusing on using machine learning to change its operations. The
corporation is also heavily invested in artificial intelligence which it uses in its services and
products. The employees of the company who are currently working on new products or
services have to learn regarding these new technologies for which they have to train
themselves (French & Goodman, 2012). Many employees resist the training provided to
them, or they may not prefer to learn about new technologies which create resistance in the
workforce, and it makes it difficult for the HR department to retain qualified employees.
Dealing with workforce shortage
Google faces the issue of workforce shortage since it only hires the best and most
talented individuals from the industry and it makes it difficult for the HR department to hire
appropriate number of employees within particular time frame. The process of hiring
employees in Google is a long procedure in which the HR executives evaluate both
technology and personal skills of the candidates. However, in foreign countries, it becomes
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difficult for the company to conduct a thorough interview and test before hiring the
employees due to which the HR department deals with workforce shortage (Cappelli, 2015).
It is difficult for the HR department to ensure that appropriate number of qualified
employees are hired and retained in the overseas operations of Google at all-time who have
the knowledge and skills regarding the technological operations of the company.
Demographic changes
Google is a leading technology organisation which always remains a step ahead of its
competitors when it comes to adaptation of the latest technologies. Due to the change in
demographic of the workforce, the HR department faces a number of issues.
Older “Non-traditional” Workforce
Generally, Google prefers to hire young individuals because they have more
knowledge regarding the latest technologies than compared to older people. For example,
the median employee age at top tech companies is between 27 and 39. In Google, the
average median age of employees is 30 years (Pelisson & Hartmans, 2017). Since most of
the workforce is young at Google, it makes it difficult for older employees to adopt as per
the change in technologies. Many older employees prefer the way of traditional work,
however, it makes it difficult for the company to innovate and break boundaries.
Millennial issues
A substantial number of the workforce at Google is millennial employees, and the HR
department faces difficulties based on their demographic. The characteristics of millennial
workers are different from older generations since they prefer to work under their terms
which mean flexible working hours, time to work on personal projects, and others. They also
prefer to start their own business rather than working for a corporations. Since most
employees at Google are millennial, the HR department of the company faces these issues
which make it difficult for them to retain talented employees (Fishman, 2016). These issues
are magnified especially when the workforce of Google is situated in different countries
since it makes it difficult for the HR department in implementing appropriate strategies.
Education
Following are various education-related challenges which the HR department of
Google faces while managing its operations overseas.
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Qualified workforce
One of the key requirements of Google is finding a highly qualified workforce which
is able to adapt as per changes in the technology world. However, it puts a burden on the
HR department of the company since they have to find educated employees who are also
suitable for the working environment at Google. The situation becomes difficult in foreign
countries where the education standard of universities and institutes are not compatible or
suitable due to which the HR department finds it difficult to hire local employees who can
lead a team (Raemdonck, van der Leeden, Valcke, Segers & Thijssen, 2012). It also becomes
difficult for an outsider to lead the team in foreign country due to which the attrition rate of
employees increases.
Talent management
Retaining talented employees in the company provides a competitive advantage to
corporations; however, it is difficult for them to retain them without implementing a talent
management strategy (Nilsson & Ellstrom, 2012). The HR department at Google faces the
issue of managing talented employees who are constantly receiving better offers from other
organisations. In order to retain those employees, the HR department has to provide them
effective and positive workplace environment which suits their needs. They also have to
adopt a hostile approach while retaining those members in the company.
Recommendations
Following recommendations can assist the HR department at Google in addressing these
challenges.
 The company should improve its training facilities to ensure that the staff members
are prepared for the changes in the technology. Appropriate training given to the
staff members ensures that they did not resist the change and they are capable
enough to develop their skills as per the changes in technologies. It also assists the
HR department in retaining millennial employees in the organisation. The older
employees can also develop their skills based on which diversity can be maintained
in the workplace.
 The company should promote engagement between millennial and employees from
other generations by establishing a positive working environment. It attracts
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candidates from all across the globe to work for the company, and it ensures that
the retention rate of employees is high.
 The company can also provide educational facilities to its employees on an
international level. The employees working in foreign countries should have the
opportunities to improve their knowledge and skills by getting higher education
facilities which assist the HR department in addressing the issues of workforce
shortage.
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Conclusion
In conclusion, as the competition across industries increases, the companies focus on
retaining talented staff members who assist them in generating and maintaining a
competitive advantage. The corporations generate competitive advantage by adopting
affecting HRM policies in the organisation. While implementing HRM policies, the
management thinks strategically by evaluating various current and future challenges which
might affect their policies. The current challenges faced by Google relating to international
HRM include technology changes, demographic issues, and educational factors. Due to
these issues, it becomes difficult for Google to retain talented employees in the workplace
and ensuring that its workforce is capable enough to adapt as per change in technologies.
To address these issues, the company can provide training to its employees, provide higher
educational facilities, and promote engagement between employees by creating a positive
working environment.
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