Organisations can pull off major performance and productivity improvements by taking a more strategic approach to where they place their people, says an EY-LinkedIn report.
Organisations can pull off major performance and productivity improvements by taking a more strategic approach to where they place their people, says an EY-LinkedIn report. According to the report titled ‘Right people, wrong place?’, location of an organisation’s talent footprint is now key to high productivity and profit. “Placing talent where the sector market opportunity is instead of only the headquarter country or legacy markets can bring substantial gains for companies,” said Sonu Iyer, Tax Partner and People Advisory Services Leader, EY India. The report, which analysed 659 organisations of varied size and scale across 11 sectors, noted that firms headquartered in North America tend to achieve a considerably higher talent-to-market alignment than those with headquarters in the Asia-Pacific and Europe.
Firms headquartered in emerging market locations like Central and South America, India and Africa had the largest scope to improve their talent-to-market alignment, it added. “India has a huge potential to grow and improve its talent-to-market alignment. Further to that, there is scope for firms headquartered in India to improve the match between their workforce and the markets that will drive future growth in top and bottom line,” said Anurag Malik, Partner – People Advisory Services, EY India.
When it came to seniority and business function alignment, the report further said, many companies often misalign the location of their talent with legacy mature markets rather than with countries where greater revenue and faster growth opportunities lie.
“Notable trends were seen in how companies distribute their senior executives, sales, marketing and research talent around the globe, with key functions often being underrepresented in crucial markets,” it noted. The research for the report was based on combined analysis of 659 companies across 11 sectors. Out of the total sample size, 24 are from India.