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International business and HR after September 11

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According to research by expatriation specialist Propeller in conjunction with the Chartered Institute of Personnel and Development, confidence is slowly being restored to the international business community in the wake of September 11th. The slump in the American economy and its knock-on effects have meant that some cuts have been made, but HR managers expect to be moving staff abroad as companies continue to conduct business globally. The research also suggests that western-based multinational companies will focus more on ethical business practices and forging links with third world countries in an attempt to reduce the gap between the “haves and the have-nots”.

The research was carried out in late 2001 by expatriation specialist Propeller in conjunction with the Chartered Institute of Personnel Development (CIPD) amongst members of the CIPD’s International Forum. The exercise aimed to better understand key HR-related issues and assess the effect September 11th has had on HR and general business trends.

Global relations are expected to alter over time, as one respondent forecast: “I think in the future ‘normal’ will be entirely different to what we have known to date. There may well be a slow, but inexorable movement by multinationals to associate themselves with the third world.” Another respondent cites the need for closer alliances and greater cultural awareness as a route to better understanding between different nationalities.

A greater emphasis on safety is also expected. One HR manager in the biopharmaceutical industry commented on the future of the global workforce: “Life will never be what it was before September 11th, however, I anticipate international strategy will continue, but with greater emphasis on safety.” More companies are expected to put emergency plans in place.

Perhaps unsurprisingly, it is expected that US nationals will be less likely to be among the increasingly mobile workforce of the next few years, as a representative from an international consulting company alleged: “Europeans will move around more. US nationals will stay at home and not move around so much.” It was also found that global organisations would be likely to re-evaluate and modify the way they communicate with external markets and audiences.

The survey also identified the increasing tendency for companies to use technology to deliver services, in particular in the HR department. Short-term assignments are being replaced by the use of email, telephone and Internet facilities, as international communication methods become more sophisticated. Nevertheless, respondents including UK and international HR managers, academics and business students, cited that globalisation will continue and long-term overseas assignments remain commonplace once the short term feelings of uncertainty have passed and confidence in the world economy has been restored.

The general consensus amongst participants was that the events of September 11th have helped to accelerate already occurring trends such as the weakening of the travel industry, as one HR manager in the financial services industry stated: “September 11th has hastened the coming downsizing in the financial industry. Otherwise it is now an excuse – a poor one.”

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