The Virtual Global Workforce Leveraging Its Impact Wayne

The Virtual Global Workforce: Leveraging Its Impact Wayne F. Cascio Gateway I/O Psychology St. Louis, MO March 30, 2012

Global Labor Markets Knowledge, trade, technology, capital, goods, and services are more globally connected than ever Coupled with the rise of emerging markets, and focus on new revenue streams, these trends have created a swell in global worker mobility 2

Labor Will Become More Mobile 500 M people, double the number today, will legally work outside their home countries in the next 20 years; why? Conflict, natural disasters, climate change, economic opportunism Implication: Great need for cross-cultural skills, adaptability, and flexibility Source: SHRM, “At Work in 2020”

The Search for Talent Having access to the best talent continues to challenge CEOs and business leaders 97% of CEOs in Price. Waterhouse Cooper’s 2011 Global CEO Survey say that having the right talent is THE most critical factor for their business growth 4

SIOP XXVI - Number and Title of the Workshop 5

Global Talent Gap As many world populations age, birthrates in most mature economies are trending downward Many Western economies cite declining birth rates as a major problem in the war for talent China, India, Eastern Europe, and parts of South America are also grappling with critical talent shortages Russia alone faces an estimated reduction of approximately 20 million working-age people by 2030 The UN anticipates that China’s working-age population (those aged 1559) will fall behind Vietnam’s in 2020, and lag behind India and Brazil in 2025 Result: Safeguarding the talent pipeline will be a key driving force in HR strategy over the next decade 6

The Rise of Virtual Teams Aon Consulting’s 2009 Benefits and Talent Survey: 97% of respondents said their organizations either planned to increase virtual work and telework options or keep them at the same level 7

“According to our research ~30% of tasks in multinational corporations could be done virtually. Virtual mobility can also take a lead in women inclusion and enablement that have previously been excluded from the active labour force. ” – David Arkless, President, Corporate and Government Affairs, Manpower Inc.

Source: Johnson, S. L. , SIOP/LEC, Oct. , 2011

Source: Johnson, S. L. , SIOP/LEC, Oct. , 2011

Source: Global Talent Mobility (2011)

Examples of Virtual Mobility Intel – virtual recruiting An Intel representative presents an audio or video presentation, and prospective employees can submit topic and job questions Intel also offers a variety of social-networking opportunities — blogs, podcasts, video, Facebook, Twitter — to allow interested individuals to interact with Intel employees around the world “E-lancer” businesses - composed of one or more workers connected by electronic networks - will enable more people to undertake full or part-time work from home, such as outsourced tasks from other companies

Key Management Challenges in Virtual Teams The success of any team – virtual or not – depends on the people Technology can bring people together, but it’s the manager who must ensure that: Relationships stay vital Each team member is valued, and Productivity is high 13

Source: Johnson, S. L. , SIOP/LEC, Oct. , 2011

Managing Global Virtual Teams Must be sensitive to language differences, differences in business protocol, and time zones With ESL: It’s vital to determine that everyone understands what’s been said “I heard you say…” is a good way to clarify Show respect to far-flung team members by varying start times, so people take turns participating in meetings in their early mornings or late evenings Try to visit each country’s team once a year E&Y’s Americas Inclusiveness Team: all team members meet together annually Billie Williamson, E&Y partner and Americas Inclusiveness Officer: Communicate more frequently, check in more often, be sure that people understand what is going on 15

To Nurture Relationships Among Team Members Set up a community home space featuring pictures and profiles of team members A discussion board, a team calendar, a chat room Result: team members can connect with each other outside of meetings and create closer bonds as a group Listen carefully to each team member on phone calls – is he/she excited? Bored? Listen to everything, particularly to silences Silence can mean consent, disagreement, or disengagement Follow up immediately to those who are not responding, not participating, or missing deadlines. Find out: what’s going on? 16

Source: Johnson, S. L. , SIOP/LEC, Oct. , 2011

What Role Can I/O Psychologists Play? Staffing Virtual Teams – many psychological issues are at play in virtual work Cisco and Pear Kandola (UK consultancy) studied hundreds of workers at Cisco and other companies worldwide Hypothesis: quants, introverts, and reclusive types will thrive in virtual work situations Finding: It’s extroverts – office gabbers, life of the break-room party – who thrive They stay connected no matter where they are Shy, disorganized types are better kept in-house Hypothesis: Mobile workers are more likely to be disorganized Finding: Mobile workers are far better organized personally than their office-bound counterparts 18

Developing Feedback Systems Helps virtual workers feel connected to an organization Must define expected deliverables clearly and in advance – projects completed on time, customersatisfaction ratings Leaders must reach out often; also use micro-feedback 19

Source: Johnson, S. L. , SIOP/LEC, Oct. , 2011

Implications for Managers of Global Virtual Teams Find ways for more face-to-face contact with introverts on the team Possibly pair them up with executives in the same geographic area Create an office-like environment in cyberspace – perhaps through in-house social networks 21

Creating “Swift Trust” in a Virtual Team Such teams are often assembled to carry out a specific project Must build trust swiftly at the outset, but it can be fragile No prior history of working together, no F 2 F communication Can create a sense of physical and psychological distance among team members Solution: focus more on building cognitive than affective trust at the outset Cognitive trust – rational characteristics – reliability, integrity, competence, professionalism Affective trust – emotional aspects and social skills of others – care and concern for the welfare of others, and an emotional connection 22

Creating Trust (Cont. ) To work effectively, team members need to establish trust quickly to enable them to take risks and to rely on fellow team members With short-lived virtual projects there is insufficient time to gather enough info about team members to assess their trustworthiness fully Assessing cognitive, work-related attributes, such as competence, enables team members to judge potential trustworthiness quickly 23

Creating Trust (Cont. ) Cognitive trust can be fragile One missed deadline or failure to respond can shatter the team’s faith in an individual Teams with higher levels of affective trust: Have more continuous and frequent communication Communicate more social information Allows closer relationships to be formed With time, virtual teams can build affective trust 24

Source: Johnson, S. L. , SIOP/LEC, Oct. , 2011

Implications for Managers Facilitate cognitive trust building at the outset by sharing “CV information” among team members Include details of their accomplishments, competence, experience, and integrity Use socialization strategies to facilitate development of affective trust Online chat rooms, social videoconferences, social conference calls Must maintain trust once it does develop! Use research-based conflict-resolution strategies to deal with disagreements quickly before they undermine trust 26

Data Privacy and Other Concerns Organizations will need to pay close attention to the risks that emerge as a result of technological enhancements Key focus areas include: • The potential interception of financial or personal data when transmitted across borders • The importance of personal data privacy when tracking an employee’s movement • The need for a distinct separation of business and personal profiling with regard to social networking 27

Concerns (Cont. ) Need clear company guidelines about the extent to which an employee is seen to sites represent the corporation in social networking Employers need to be careful about monitoring the ‘behavior’ of employees when accessing these communication channels 28

Hidden Benefit of Global Virtual Work Arrangements Permits employers to keep fast-track employees who are unwilling or unable to relocate for job assignments to remain in their leadership-succession pipelines Hidden cost: Failure to get direct exposure to international assignments 29

Conclusions World Economic Forum (2011): “Widespread talent scarcity will persist for decades. That scarcity will redefine human capital practices and ways of doing business for a long time to come” I/O psychologists will play crucial roles in defining and facilitating those human capital practices The rise of global labor markets and global virtual teams offer ongoing opportunities for I/O psychologists to develop and refine innovative practices to meet these challenges Isn’t it time we got on with the job? 30