First Take Monday – Do Global HR Leaders Really Understand Yurop (also known as Europe)?

2 comments

Two weeks ago, I had the pleasure of attending the first annual HR Tech Europe conference in Amsterdam. I found the conversations enlightening and a stark contrast from those with HR leaders in North America. Three key themes resonated throughout the three days…

  1. While everyone likes to lump all European countries into a single bucket, “Europe”, each region and country has very unique localized needs. During his fantastic keynote, my good friend Thomas Otter poked fun at Europe’s uniqueness, pulling a definition out of Urban Dictionary referring to Europe as, “Yurop…an ancient continent, rumoured to have been sunk, just like Atlantis. It used to be a magical, super-fun land, full of fairies and butterflies, trolls and other magical creatures.” To truly understand Europe means you must understand the local needs, privacy rules, and regulations particular to the respective country.
  2. IT, particularly HRIT, plays a completely different role for European companies (in part, due to the demands on localization). Data models are extremely critical as the cost impacts — both positive and negative — can be significant. An additional observation is that the merits of the Software-as-a-Service (SaaS) model are still under debate in Europe. While many progressive companies such as Barclays, Nokia, and Virgin Media, are embracing SaaS and recognizing the benefits, the paradigm shift is still evolving. This is not unique and IT shifts in North America, where SaaS has become the preferred delivery model for business applications, often have a lagging effect to take hold in Europe (typically between 18-24 months). Interestingly, like North America, in Europe the business is recognizing the value of SaaS in advance of IT.
  3. Talent management and talent mobility is completely different across Europe. While North American companies tend to take a “tops down” approach based on hierarchy and status, many European companies tend to take a “bottoms up” approach. In North America, talent pipelines are often built based on open positions, flight risk and critical roles and gaps are filled by looking down through the organization. Conversely, companies in highly regulated countries such as France, Germany and others, identify high performers and then look for where they can be mobilized across the organization. American companies can learn a lot from their European peers regarding talent mobility.

As globalization accelerates, and companies increasingly look across the globe to build their talent management strategies, understanding Europe is essential, even if you are not there today.

Image courtesy of http://www.flickr.com/photos/dhjiz/532666419/in/photostream

  • Kevin Oakes

    Why just Europe?  Your point is no different than lumping the US, Canada and Mexico into “North America” and treating them all the same.  Anytime you design a strategy for an entire continent vs. the individual countries you will have issues.  Having just returned from Asia, I think the problem for American companies is more acute there.  Personally I find less commonalities between Asian countries (China, India, Japan, Korea, Australia, etc.) than just about anywhere else, yet US companies continue to strategize for continents vs. countries.  The problem isn’t just cultural, it’s a legal one as well.  For Talent Management vendors who want to be global, understanding the different legal implications in each country is essential.  In a recent group meeting of F500 companies on HR Technology, this was a common complaint of the vendor community, Cornerstone being one of the primary vendors mentioned.  It’s going to be an investment on the part of the vendors to understand the data hosting, transfer, etc. requirements from a legal perspective of each country if they want to truly be global providers.

  • Lexy Martin

    Seeing this entry and just having finished reading the latest IHRIM Workforce Solutions Review issue on Risk Mitigation and Compliance in Global or Country Specific Operation I think you are spot on! Forgive the plug for the magazine, but the issue is so important for organizations “going global” or for vendors expanding their footprint more globally.  Here’s the table of contents: http://www.ihrimpublications.com/Public_WSR_Archives/11_OctNov/WSR_OctNov11-TOC.pdf and if you don’t already subscribe, here’s the link to do so: http://www.ihrimpublications.com/index.php

Previous post:

Next post: