Importance of Competitive Advantage in Today’s Business World

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. 

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.

Following are three major trends and future challenges which create barriers and adversely affect the operations of multinational corporations while managing their business.

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 retrenchments, and they also find it difficult to hire talented workers and retain them without giving huge salary packages.

Three Major Trends and Future Challenges in International HRM

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 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 creates new challenges for HR department while managing operations in international markets (Bieling, Stock & Dorozalla, 2015).

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.

HRM Practices of Google LLC

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.

As discussed above, the changes in technologies create various challenges for corporations operating in technology related field and Google is no exception. The company is known for adopting the latest technologies in its operations which makes creates various challenges for its workforce.

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.

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.

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 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.

Challenges Faced by Google LLC in International HRM

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.

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.

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.

Following are various education-related challenges which the HR department of Google faces while managing its operations overseas.

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.

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.

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 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. 

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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