The close relationship among economic change, recruitment strategies and its impact on local workers whether they are highly skilled or not is showed and explained in this article. Population aging, the rising demand for talent in emerging economies and increasing cross-border employment opportunities is what drives global demand for highly skilled workers which are all intensifying the competition for talent. The variety of policies and practices reflecting corporation’s goals in the absence of an international consensus on global policy frameworks and national governments and values is discussed in this chapter. The supply and demand factors converge in the selection of foreign skills which is the trend in national recruitment strategies and shows clearly in the direction of hybrid arrangements and values migrants’ long-term contributions to the receiving country through the supply-driven point’s system values. The abilitiesy of migrants to fill labor shortages are emphasized by demand driven systems to fill labor shortages.
There is a need to compete globally and expand the paths and possibilities abroad and in a globalized level in order to compete, increase productivity, and maximize the organization or company profit. It’s also important to ensure a solid and strong management level to compete with the globalized environment efficiently and effectively and integrate the workforce power. Recruiting an international workforce power becomes mandatory in order to maintain or lead in producing a product or serving a service as organizations grow and begin to compete in a global scale. The goal for an international scaled company or organization is to be on top and leading the industry to ensure maintaining the lead to achieve a competitive advantage in a global international scale [
Companies usually considered their customer base and market to be origin of their country prior to the recent increase in globalization. Now because of the globalization management these companies can now consider the entire world as their market and available customer base. Management has been affected by globalization which has caused it to expand cross the globe and this allowed production to increase as “the most critical global attribute is open-mindedness” [
Implying an international strategic recruitment and its process by manager’s impacts on local workers and globalized management issues; managers will come across opportunities, problems, and challenges as they analyze each category. “If you have to be sensitive and responsive to national differences, you better not put someone who is an arrogant and ethnocentric person” [
Churchwell is making a valid point by mentioning that not any one can be a globalized or becomes an international manager. The manager or person in charge should have some characteristics that will allow him/her to either adapt the organization going globally or make the whole organization adapt to the outside environment. Daniel Altman has discussed this in the New York Times about “Managing Globalization: If it’s here to stay, what do we do now”, [
I-Requiting foreign construction or normal low level jobs such as workers in construction sites, cleaners in organizations or waiters in restaurants or hotels brings a lot of foreign workers that the local country workers either doesn’t want because of their low level or sometimes the management itself refuses to recruit the local’s for the sake of getting cheaper labor wages [
The impact from the ethical point of way may occur, managers are creating unemployment to the locals which will lead to the consequence of poverty and result into many problems in the country’s economy and the worst possible scenario is high rates of inflation and high rates on unemployment. Another reason is recruitment injustice in which foreigners are getting the jobs no matter how skilled or hard working they are just because they are foreigners, while locals may have more experience than these foreigners which will lead to injustice and unethical act for example Malaysia has recruitment rate of 45,000 foreign workers from India to meet the demand in 13 small-scale business sectors, [
II-Recruiting employees in operational level and secretary level. Some foreign workers are unable to merge with the local workers for a couple of reasons such as they are getting more wages than their local colleagues who are doing the same job. Also it is common that foreigners are getting well treated by superiors which can be categorized as un-ethical act. Usually the work performance is fundamental that employees are hired to perform in exchange for their compensation packages and this implies on foreigners [
III-Recruiting foreigners for top level management and CEO. It’s common in some organization to recruit a foreigner CEO and many of them will have a preference to foreigners and has dictator management style and affect the recruiting process and can layoff the local workers easily in favor of the foreigner workers.
Due to the complexity of global operations it requires managers to devote attention to matters such as cultural diversity and economic development [
For example, the dress for gender as some employees especially women in some cultures like to wear a scarf or hijab around their face all the time others prefer not. Another factor is religious practices some religions require time during working hours each and every day for prayer time or time off for special religious days. Customs is another factor in which some cultures can or can’t have some kind of foods and drinks, or may have rules about how food is prepared [
But what managers should do to prevent this impact? The answer is simple managers can make use of staff cultural skills, promote cultural celebrations, be flexible and not to discriminate against workers because of their different cultural background through continuous awareness, training and acceptance of different cultures.
Important decision needs to be taken in order to compete globally, and gain competitive advantage to support the organization or companies to achieve its goals. The way of recruiting employees at local and global level whether a normal worker, operational employee or even at the top level management has to improve. The impact for example could be on the top management as the company recruits a foreign well talented individual to run and lead the organization towards success who will be the image of the company. It will have a negative implication for example if an American company is run by a Japanese manager or vice versa which might trigger a thought that the organization is run by Japanese which in reality not. In the contrary, many conflicts and civil wars will lead to huge displacements and local workers will immigrate and take their knowledge and power elsewhere which is putting further pressure on the system and increasing reliance on foreign workers” [
Managers also should consider the cost of local workers and foreign workers “Since the construction industry requires massive manpower, labor supplies are always essential, and have become the most expensive resource deployed within the industry” [
The company can increase its performance through local and foreign staff when they work together in a team work to achieve the goals needed. Staff can perform their best on the job under the best circumstances. They either can both preform very well or one will perform well and the other one less for many reasons from discrimination to injustice in work and so on. The availability of a management plan in advance, the decision making will affect the performance of the outcome [
In order to improve performance when we have mixed workers local and foreigners it is crucial to implement a self-managed work team which is an independent and self-ruled form of work which gives a group of workers the responsibility for regulating, organizing and controlling of their jobs and the conditions that are surrounding them [
This is the outcome of the whole recruitment process as these managers will know whether they did the right recruitment decision or not. Either way they will know based on the knowledge the local’s gained from the foreigners or the knowledge the foreigners gained from the local’s which can be measured by implying some tests to the employees. There is one test which is called situational judgment tests (SJT) which is commonly used as employee-selection and employee-screening tools and have been developed to predict employment success and the amount of knowledge the job requires [
The challenge to the transition to a more globalized world economy is to keep it human and fair, which is to agree on values, rules and procedures which organizes and allows us to set up the necessary governance, [
There are many factors that influence the managers’ decision when they start to implement the international recruiting strategy for both sending and receiving countries who are using a variety of regimes to regulate and harness the benefits of international recruitment [
Competition for skills is arguably the main reason as diffusing technologies and knowledge as well as labor mobility can contribute to economic development the search for talent has become a major concern for Asian business leaders. In 2011, it ranked among the top 10challenges for CEOs in Asia [
Chiquiar and Hanson had argued that countries with high return to skill and wage, as in much of the developing world, there will be the negative selection of immigration. Those with the greatest motivation to migrate to the US will be individuals with below-average skill levels in their home countries, as appears to be the case in western Europe, there will be positive selection of immigrants. Those with above-average skill levels will have greater incentive to migrate. Relative to earlier cohorts, recent immigrants earn lower wages than natives at time of arrival and take longer for their earnings to converge to native levels, [
As fertility declines, life expectancies rise and populations age, an increasing number of countries face declining work forces and potential labor shortages. At the same time as the number of dependents (people over age 65 and under age 14) is rising. The demographic transition has economic and fiscal implications for emerging economies. Governments are aware of these challenges and are boosting efforts to attract scientists, engineers, other high-level management, and technical workers. Countries like Japan and South Korea which traditionally have not been open to foreign immigration face a lot of challenges [
Outward movements of the highly skilled used to be described as the “brain drain.” Recently this term has been replaced by the term “brain circulation”. Migration is no longer a simple one-off event. Labor circulates globally. People no longer leave their home country permanently to take up residence in another; they study abroad, work in a different country, and many return to their home countries although some also reside in countries. Policy objectives are changing “from preventing the brain drain to making the most of the brain circulation” [
Not only do receiving countries benefit from specialized expatriate workers, but immigrants’ skills, networks and knowledge generate important pay offs to their families in their home countries. Countries also benefit from the skills and experience acquired overseas due to the movement of personnel and skilled workers returning to their home counties [
Highly-skilled labor such as: Science, Technology, Engineer, and Mathematics workers are now the wheel of the global economy and critical to any emerging countries’ economic growth. China and India are now seeking more skilled workers and intensifying global competitive pressures [
This paper discusses in depth about the impact on the recruitment process from various aspects. Managers are responsible for any acts they pursue towards achieving organizations goals such as the ethical acts towards workers and also the behavior and compensations that the top management should do to compensate and maintain the workers whether local or foreigners without making a diversification between the two of them. Human resource management department should run its one system of analyzing the important steps before selection employees wither local or international. The HRM department should first know what are the skills required to hire the right person at the right place.
Then whether there is a need to recruit from the local workforce or the foreign workforce. It’s important when recruiting employees to analyze the potential cost that might be charged when recruiting local or international worker. The rate of wages might differ from nation to nation so careful analysis of the cost of recruitment is mandatory for managers to decide. Another important aspect is for example will there be enough workers who have enough power to perform the job on time or not. Will they live near the job place or not. If they are foreign instructors or assembly workers with lower wages than the local workfare wages, they will need a place to stay so the manager will have to come up with a solution for them and it will be definitely costly so managers might think cutting cost when bringing international labor with lower wages but will deal with other costs that might make the foreigners total cost more the local workforce because the local will have their home to stay. The knowledge and experience is another important point when implying a strategic recruitment process.
Managers should recruit the worker with enough knowledge and experience for the job so managers should be very selective because they don’t want someone who is highly skilled employee for a job that doesn’t really need that amount of knowledge this will result in misappropriate placement for the job. The highly skilled employee will be costly for nothing while a lower skilled employee will perform better than the highly skilled one because the highly skilled got higher potential to work in more complicated projects rather than simple one which can be performed by normal skilled workers. Managers don’t need to recruit highly skilled employees by wasting money on highly skilled employees. On the other hand, hiring non skilled employee’s for a job that requires a certain amount of skills will lead to many effects. One effect is for the company for example lower employees might have more knowledge and experience than the leader who lacks a lot of managerial skills. This will lead employees to preform less efficiently. It’s also important for managers to recruit the right people for the right job without forcing them to do things against their will, power, or knowledge.
The importance of analyzing and discussing the process of implying an international strategic recruitment and its impact on local workers is actually going to help the manager and the organization to make a decision on how to execute the recruitment strategy and how to effectively carry the organizational goals to success and analyze the behavior of the worker towards the other workers and to the work itself. All the points that have been discussed are important to make and plan a decision that will help the organization or company to understand the importance of recruiting an international workforce and its effects whether positive or negative towards the local workforce. Looking to the future the way managers recruit employees whether local or international workers, employees or top management level, will have to be planned and analyzed before making any decisions on recruitment process.