The five key challenges Facing Global Companies are collaboration, transparency, agility, innovation and productivity, reports Forbes.
These are problems that global companies are going to have to deal with in the next five years as discovered by global management consultancy Hay Group research.
Mark Royal, senior principal at Hay Group, said that the business sector is extremely dynamic. According to their research, most companies lack the right strategies to deal with these rapid changes in the business sector.
In order to keep up with the change and make the right decisions, significant levels of collaboration is vital. The kind of collaboration required is one that brings together teams, organizations, functions and competitors so as to come up with an effective solution.
But as much as 80 percent of global organizations claiming they have strong teams to see them survive any difficulties, Hay Group research revealed that 44% of their employees feel that they do not get adequate support as opposed to their counterparts in the business. In addition, 40% don’t believe there is a cooperative culture in their organization and more than a third (35%) feel that cooperation and sharing of ideas and resources is not readily encouraged.
Training, and not just training but continuous training, will greatly assist in equipping employees with the skills needed to cope with the changing demands. The study revealed that only 50 percent of the employees are allowed time to train. Communication is the other critical element for adjusting year after year. Unfortunately about 43% are of the opinion that their companies are not open and honest in communication.
Working in an agile way assists in coming up with new ways of thinking, behaving and reacting. This is a challenge that most organizations contend with on a daily basis as revealed by the hay Group study.
He research further exposed the lack of clarity and reward for development. 45 percent of the surveyed employees think that their performance is not well recognized and does not lead to any progress. At the same time, 52% believe their pay and performance do not link at all. Therefore, there is no clarity on the career paths they can take.
Martin Palimeris, consultant at Hay Group, said that “When employees fail to see a link between their pay and performance they can end up feeling unfairly rewarded or insufficiently recognized for their contribution to the business.”
He added that they may get demotivated once they realize that the work they do does not yield to their expectations. In order to improve this link, organizations can develop precise performance management framework that constantly reminds the criteria for evaluating performance and the reward expected. He further says that every time a promotion is announced, examples supporting the employee’s deserved reward should be stated.