Finding Balance: How to Navigate a Global-Local Strategy with Dana Incorporated and JYSK Hungary

Combining global and local strategies is crucial for organisations operating in multiple markets and cultures. While doing this, how can organisations balance the benefits of standardisation and maintain a sense of authenticity in each location?

We spoke with Zsolt Tánczos, Compensation and Benefits Europe for Dana Incorporated, and Ágnes Nyester, HR Manager for JYSK Hungary, during the 2023 Top Employers Inspire event to learn more about this topic. Both companies have been navigating the global-local balance for years. Dana Incorporated has over 40 000 employees in more than 30 countries, and JYSK has 3 100 stores in 51 countries.

Through our discussion, we gleaned some practical tips and examples of creating a successful global-local strategy, which I will highlight in this article. Watch the complete discussion for more details about Zsolt and Ágnes’s experiences and actionable plans for replicating their success.

Integration & Differentiation for Multinational Organisations

Multinational organisations must decide how much to integrate or differentiate activities and policies across locations. Integration refers to standardising processes, systems, and policies to create efficiency and consistency. Differentiation means customising those aspects of an organisation–processes, systems, and policies–to meet the specific needs of each office.

As a conceptual retail company, JYSK has carefully considered the balance between integration and differentiation in their offices and stores. Ágnes explained why they chose to integrate their recruitment process, “Whether you are in Hungary or Spain, the recruitment process is the same, which means it’s transparent. This makes the process easy to measure, and progress is trackable from year to year.” If one location achieves notably higher or lower metrics, headquarters can gain insights into what’s happening and adjust accordingly.

Similarly, this unified approach helps the organisation retain talent. “Our policy is that 80% of open positions need to be filled with internal candidates. This helps us develop our future talents and support existing staff,” Ágnes described the reasoning behind their approach. If it is not possible to fill the position internally, then external candidates may be considered.

Zsolt gave examples of when differentiation is beneficial. “Local regulations need to be considered. If they aren’t, it can be a very painful situation that will block the entire process,” he explained. For example, he mentioned how data protection rules vary from country to country. Involving local experts and engaging key stakeholders early in the implementation process is essential to successful local operations.

Limited resources are another standard challenge organisations face on the local level. Zsolt described how this challenge often plays out, “if a local office is told to implement a change, the key questions are really: who and when? Because they might not have enough staff support, or it might be a bad time because they have other projects.” So, considering the dynamic of each office is essential while trying to implement policies across multinational organisations.

Global-Local Challenges For Multicultural Organisations

Navigating cultural differences is challenging for international organisations, especially when determining global-local strategies. Ágnes described a time when offices in three countries had the same management team. “We took the collaboration quite seriously. We had cultural training to better understand our different perspectives and motivations. We talked about the business plan and how to make it work in each office, and we met several times to keep things going smoothly,” she explained. Regular communication was the key to their success. Although it sounds simple, having good communication requires intentional effort to bridge cultural divides.

Zsolt described how fostering relationships between country offices is advantageous. “There were some production problems in our Belgium office. Because there was a good relationship between the Belgium and Hungary offices, we were able to quickly move some employees from one to the other to resolve the issue immediately while working on a more long-term solution,” he said.

As a multicultural and multinational organisation, Dana Incorporated knew the relocated employees would need help settling into their new environment. Zsolt elaborated, “We supported our colleagues with housing, tips about the local community, and connected them with colleagues through a kind of buddy system to help them have a smooth transition.”

While developing a global-local strategy, organisations must remember it’s a balancing act. There is no one-size-fits-all approach. Considering local dynamics helps avoid operational issues and creates a positive, efficient work environment, ultimately giving organisations a competitive advantage.

Paradigm Shifts: Agile HR Practices and Skills-Based Organisations

To close the 2023 Top Employers Inspire event, I sat down with my colleague Quinton van Es, Director of Research & Insights for Top Employers Institute, to discuss two closely linked topics –the funadamental shifts in HR practices and the rise in skills-based organisations. These ideas are reaching a tipping point in business practices and creating paradigm shifts.

At Top Employers Institute, we certify organisations based on best practices, which requires us to look ahead at developing industry trends and consider those that are proven successful. Agile HR practices and skills-based organisations are becoming more mainstream when there are many disruptions and uncertainties. From a business perspective, now more than ever, organisations need to be resilient, adaptive, and human-centric. We discussed how these two practices are enabling organisations to do just that.

From the basic tenets of each to the more significant industry implications to our personal experiences with each principle, our discussion covered a lot of ground. In this article, I’ll summarise the highlights of our conversation. You can watch our discussion in full at the end of the article.

What Are Agile HR Practices?

Working agile has long been established as a best practice for IT where rapid innovation was a necessity. Gradually, the ability to quickly adapt has become a strategic imperative for organisations, causing agile practices to spill over into other areas and functions. In HR, operations are moving away from a rules- and planning-based approach toward a simpler model based on feedback.

Organisations can struggle with agile HR operations because many things, like payroll, feel fixed–there is no trial and error. However, the application is more of a big-picture consideration. Quinton explained, “When it comes to working agile, we are used to seeing these principles applied to projects. In the context of operating models, a lot of organisations are more agile than they realise because they already have a continuous feedback loop in place.” The essence of this approach is about regularly receiving and responding to feedback rather than specific tasks.

There are considerable variations in how organisations apply agile principles to their HR operations. Quinton gave examples, “some organisations focus on the mindset and values. Other organisations are taking a more methodological approach and just implement scrum.” Each approach has its pros and cons. There is no one solution, which is part of what makes this paradigm shift so interesting.

Skills-based Organisations

Historically, jobs were the dominating structure for work. Job descriptions and titles defined who did what and how their work was managed and evaluated. This approach is falling out of favour because it hinders many organisational objectives, including growth, innovation, agility, and the ability to offer employees a positive work culture.

“A job-based approach is very linear and predictive but it’s also a reductive view of work and the individual. In contrast, skills-based organisations zoom in on specific skills and the whole person to consider how an employee’s talents may best be applied. It’s a more human-centric approach,” Quinton said to highlight why this paradigm shift is happening. Another reason it’s gaining popularity is that it offers a great deal of flexibility and adaptability.

As jobs shift from being the primary construct for work to being one of many factors, organisations must adapt their HR practices. HR writes job descriptions, sets compensation, and manages performance reviews–all tasks based on defined jobs. Skills-based organisations thoroughly shake up this model, reimagining employee management, which is partly why agile HR practices and skills-based organisations are often closely linked.

Benefits of Shifting

Working agile means iterations happen quickly–things are done slightly better each time. Employees do not have to wait long to see their feedback in action. Additionally, employees get used to adapting and a certain level of ambiguity. This model fosters a culture of continuous improvement and creates better engagement.

A human-centric skills-based approach supports employee well-being. It considers the whole individual, not just their education and experience. As a result, organisations can tap into larger talent pools, and current employees have a greater sense of mobility. “A famous example here is Google,” explained Quinton, “They acknowledged that they made a mistake by just relying on credentials because performance dropped. They figured out that they needed to consider motivation and individual skills more than specific credentials.”

Advice for Getting Starting

Starting small always helps ease the transition–it creates less of a shock to the system. “Why not put someone from IT that’s used to working agile on the HR project team and see what comes from that,” Quinton suggested.

It is also helpful to identify your value proposition. A clear understanding of your business case for making these changes will justify the required resources. A valuable next step could be a readiness assessment. This process will let you see if your organisation is ready to move into that domain and identify potential challenges.

From my experience during transitions, the art of letting go is essential for leadership. As you guide your organisation through significant operational changes, accepting uncertainty is a requirement. If you don’t, progress is seriously inhibited.

I invite you to watch our complete discussion to hear more examples of how organisations that are Certified Top Employers put these principles into action. The applications are quite varied and continuously evolving, making agile HR operations and a skills-based approach to work exciting trends to follow.

Amgen FlexSpace: Taking Flexible Work to the Next Level

Amgen’s cutting-edge flexible work model offers innovative ways organisations can modernise their approach to remote work.

During the pandemic, many organisations learned out of necessity that remote work can be highly effective. Even after offices were able to re-open, remote work widely remained an option because it was so popular with employees. Amgen Spain & Portugal, a Certified Top Employer, had already learned this lesson well, having adopted a remote work approach in 2004, long before it was mainstream. During the pandemic, they began to offer employees even more flexibility. Sandra Vicente, HR Director for the organisation, spoke with me about their best practices during the 2023 Top Employers Inspire event. Their ideas and fresh perspectives will inspire companies looking to meet the needs of a remote workforce better.

Making the Transition

Amgen Spain & Portugal was able to swiftly adapt to a 100% remote workforce when the pandemic struck because of three factors.

Because the organisation had offered flexible work arrangements for fifteen years, managers and teams had already honed their remote work skills and were well-prepared to continue working from home. The transition from a partial to completely remote dynamic was not difficult for the company.
Amgen had recently provided employees with a stipend to create a functional home workspace, including screens and ergonomic chairs. As a result, virtually everyone was already equipped with a suitable home office setup by the time the pandemic hit.
The organisation had a robust culture of trust because of their long history with remote work. This trust was critical in facilitating a smooth transition to fully remote work and the company’s confidence in everyone’s ability to thrive in that model.

Download Now: World of Work Trends 2024

What Makes Amgen’s Approach Unique?

In 2021, Amgen refined its approach to flexible work by establishing FlexSpace – a novel way of working that combines the traditional practice of face-to-face office meetings with remote work. Unlike a more conventional approach to hybrid work, where companies allocate specific days for remote work and office attendance, FlexSpace empowers employees to make that choice for themselves. “The main driver of that decision is the purpose of their activity,” Sandra explained.

Practically, this means that employees have the ability to select which work environment best aligns with their daily responsibilities. For instance, employees might opt for remote work when tackling tasks requiring intense focus, such as preparing presentations, budgets, or brand plans. Conversely, activities like strategic meetings, brainstorming sessions, or welcoming a new team member thrive on face-to-face interactions. This modern flex work model offers employees even more flexibility and autonomy in their work life.

Read Now: The Era of Personalisation: Customising the Employee Experience at SAP India

Rethinking Office Space

As part of the FlexSpace initiative, the organisation thoughtfully designed a new open-concept office space to cater to a diverse work styles and objectives. Workstations were not assigned to specific employees. Instead, the variety of stations remained available to anyone in the office. This way, employees have an adaptable environment for whatever needs might arise.

Transitioning to an open-concept office space necessitated a mindset shift. The first step was for employees to understand the dynamic nature of this type of open space. Throughout the day, people have the freedom to reconfigure their surroundings. If someone needs a whiteboard for a brainstorming session or if working alone at a desk for a couple of hours is required, dedicated spaces that cater to those needs are available. Regardless of the task, adapting to the constant background noise of conversation in an open-concept office is essential, and employees always work from home if they need a reprieve from the frequent office activity.

Strategies for Success

Over the years, Sandra shared that they have identified three key factors for a successful flexible work environment:

Asynchronous work,
Intentional socialisation, and
Maintaining a strong company culture.

Asynchronous work is a natural extension of a remote work model. Just as employees do not need to be in the same place to get work done, they often also do not have to work at the same time to get things done effectively. Using collaborative tools like Microsoft Teams helps make this asynchronous approach function.

Working at different times, however, means that colleagues will likely have fewer direct interactions with each other. This dynamic means employees need to be intentional about socialising with each other. Sandra elaborated, “When you are in the office every day, socialising happens organically. You chat with people when you get a cup of coffee or when you see each other in the hallway. So, now when people come into the office for some reason, we encourage them to take into account the importance of socialising and set aside time for that.”

The importance placed on socialising is part of the company’s culture. “Company culture needs to be a lived experience,” Sandra explained, “Our turnover is very low, only 3% in ten years, so most employees know the culture very well and embrace it.” In performance management discussions, employees frequently cite the positive culture and flexible work approach as pivotal factors influencing their choice to remain with the company. The extremely high retention and employee satisfaction rate Amgen Spain & Portugal has achieved undoubtedly has numerous positive ripple effects across their operations.

Best Practice | Addressing Staff Issues through Employee Experience Managers with Kaufland

Starting in 2018, certified Top Employer Kaufland began operating a network of employee experience managers across sites in Europe. These are trained HR liaison officers who work to address employee welfare issues and solve challenges that might be putting a drag on business or individual performance. In our latest best practice focus, we are focusing on what brought in these managers and how they’re changing the employee experience for Kaufland workers.

This is just a snapshot of Kaufland’s innovative best practice; you can find the entire practice on our HR Best Practices database, which is exclusively available to Top Employers. Get inspiration and insight into the approach, challenges and learnings experienced by certified Top Employers. Access it now via the Top Employers Programme if you are certified, or learn more about it here!

Why the practice was needed:

It is challenging to keep an eye on employee engagement when an organisation like Kaufland has many employees scattered across many locations. For this reason, Kaufland introduced ‘employee experience managers’ (a Vertrauensperson, in German): a neutral, trustworthy, and independent liaison for all employees.

How the practice was implemented:

The primary objectives behind Kaufland’s practice of employee experience managers are:

Anchoring of the corporate principles and leadership approach.
Early detection of (potential) disputes.
To better understand the atmosphere/mood among frontline employees.
To provide support to employees in difficult situations.

In the European locations where Kaufland’s employee experience managers are active, every employee can freely contact a dedicated employee experience manager and access contact details for other employee experience managers via a page on the company intranet, should they prefer to speak to someone specific. Each employee experience manager acts as a confidante for receiving confidential feedback. Employees may remain anonymous if they wish to report a sensitive issue.

Employee experience manager responsibilities:

The main tasks of each employee experience manager at Kaufland are to:

Attend stores daily: talk with employees about their jobs, work-related problems, the store environment, etc.
Use employee feedback to identify work environment issues or business issues that could be improved.

Assist employees in handling issues with co-workers or to tackle personal problems having an impact on their work.
Improve employees’ perception of the company.

The typical employee experience manager:

has an HR background,
is skilled in psychology, mentoring and communication.

Kaufland offers special training, for instance, a mediation training course to support the work of the employee experience managers.

Results

Each employee experience manager has a target number of conversations to be held each month (approx. 300). The rationale behind this (as opposed to a target number of employees to speak with) is that sometimes, one employee may require several conversations to be had until their issue is resolved.

As a result of the work of the employee experience managers, Kaufland has improved many of its operational and work-related issues based on employee feedback.

The Era of Personalisation: Customising the Employee Experience at SAP India

By Billy Elliot, Regional Director for APAC, Top Employers Institute

Today’s workplace culture is in the midst of an unparalleled era of personalised experiences. Employees, similar to customers, desire treatment that caters to their individual needs and preferences. This change has propelled employers to shift from a people-centric approach towards a more person-centric one. Undoubtedly, the pandemic profoundly impacted reshaping expectations, with many people reevaluating their priorities.

Data from the 2023 Top Employers Institute Certification Programme shows a striking trend among the over 2 000 certified companies across 121 countries. Remarkably, 74% have updated their employee journeys to accommodate remote work dynamics—a 6% increase from the previous year. The Asia-Pacific (APAC) region is the most advanced in this regard, with 66% of Certified Top Employers having successfully implemented formal remote work options.

As part of the 2023 Top Employers Inspire event, I had the pleasure of hosting a presentation about this topic by Rashmi Raghuraja, Senior HRBP Consultant/PMO to the Head of HR at SAP Labs India. SAP India stands out as a leader in creating tailored employee experiences. Rashmi shared how the company addresses its workforce’s personal needs to enhance the end-to-end employee experience.

The People Experience

SAP India’s People Experience Programme was created “so we have an inclusive environment where people can be who they are. They don’t have to pretend or leave parts of themselves at home,” Rashmi explained. The programme has five foundational pillars to support that mission:

Pride: Fostering a sense of pride among employees, both in their association with the company and in their contributions to its success.
Purpose: Employees are encouraged to make connections between their daily tasks and the overarching company mission.
Innovation: Sustaining innovation through providing resources and platform tools employees can use to create and collaborate.
Appreciation: Each individual’s contributions are recognised as valuable to the company’s success.
Care: Genuine care and respect for employees is consistently demonstrated, bolstering a sense of belonging and support.

Pledge to Flex

Providing autonomy over individual work schedules and habits was a priority as the company assessed its employee journey. “We have a real commitment to offering a flexible and trust-based work schedule,” said Rashmi. Feedback indicates they have successfully done so. The 2023 SAP Future of Work Trend report revealed a whopping 77% of SAP employees feel empowered to determine when and where they perform their tasks.

They achieved such a high level of success by forming a group of employees to facilitate the transition, the Change Ambassadors Community. This group functioned as a guiding force, coaching managers and teams as they navigated the shift towards flexible work arrangements. Rashmi described the HR team’s thought process, “We realised early on that this is going to be a journey of not just a few weeks or months. It’s going to take years. We wanted to bring our employees along on the journey and have a bottom-up approach.” Pilot programmes and continuous feedback loops kept stakeholders engaged and enabled adjustments.

People Unplugged

Establishing a foundation of transparency and understanding within the company’s workforce was the motivation behind the People Unplugged Programme. Rashmi elaborated on this mission, “We wanted to have authentic conversations with leaders and offer a platform to debate, ideate, and collect feedback.” The first initiative was a six-part conversation series that engaged employees with company leaders.

All employees were invited to participate in these conversations featuring sensitive topics like performance management. Strikingly, 4,000 employees across India participated. These sessions were an opportunity to engage in genuine discourse to shed light on why the organisation did certain things and potentially pave the way towards something new. Ultimately, this series underscored SAP India’s commitment to creating a workplace culture that values open dialogue, mutual respect, and collective growth.

Download Now: Inspiring HR Practices from Asia-Pacific’s Top Employers

Career Canvas

In the wake of transitioning back to business as usual after the pandemic, the need to assist employees with the adjustment became evident. “One of the things we heard often was that people were feeling lost as they came back. They knew about different programmes, platforms, and tools but not how to find them,” Rashmi explained.

To address this concern, a series of brainstorming sessions were organised. These sessions included employees representing a variety of roles and career stages. The primary objective was to understand any gaps in support and identify what resources might be helpful.

Through this process, recurring themes were identified and served as focal points for taking action. As a result, two programmes were created:

The Inspire Talk Series is a forum for insightful discussions,
The Career Mentoring Programme supports individuals feeling indecisive about their career path.

To conclude the presentation, Rashmi emphasised that SAP India focuses on providing their employees with the best possible workplace. She quoted author Jacob Morgan’s book The Employee Experience Advantage to emphasise her point, “In a world where money is no longer the primary motivating factor for employees, focusing on the employee experience is the most promising competitive advantage that organisations can create.”

Check out Rashmi’s full presentation to hear more about SAP India’s innovative programmes and the organisation’s plans for new initiatives in the near future.

T-shaped Skills: A Simple Approach with Big Results with Boehringer Ingelheim

How T-shaped skills can bring clarity, alignment, and focus to employees and the employee journey.

By Jonas van Wees, HR Auditor, Top Employers Institute

Like many other companies, Boehringer Ingelheim, a certified Top Employer, had to expedite operational changes during the COVID-19 pandemic to meet customer needs while adhering to safety recommendations like social distancing. Face-to-face meetings were the norm in the pharmaceutical industry, making Boehringer Ingelheim’s transition to remote meetings a significant adjustment. However, maintaining the highest level of service remained a top priority. “As a business we sat down and asked how can we support our customers and patients in the best way possible? That is when we really sped up the T-shape initiative,” Helen Doeswijk-Lindley, People Growth Manager for Boehringer Ingelheim, explained.

Helen and I discussed how a T-shaped approach enhanced company operations and benefited employees as part of our conversation during the 2022 Top Employers Institute Best Practices Week. In this article, I want to share the wealth of insights we discussed, highlighting how this approach not only enhanced overall efficiency but also empowered employees to recognise and voice their needs effectively.

What is a T-shaped Approach?

The T-shape is a symbol that illustrates an individual’s strengths. The vertical line represents expertise and knowledge in a specific field, while the horizontal line represents cross-discipline competencies and the ability to collaborate effectively with professionals from various industries or roles. Helen simplified this concept, stating for employees, “The T-shape allows you to understand what general skills you need, the horizontal line, and what you need to be an expert in, the vertical line.”

Boehringer Ingelheim began implementing T-shaped job descriptions with the customer-facing teams. Helen explained that the first step was for everyone to individually consider the skills and competencies required for a specific role. After comparing notes, they compiled a list of thirty-four competencies. Helen described what happened next to narrow down the list, “We really got crisp. What are we asking our team to do? Where does responsibility start with one team member or one job role and where does it end? We really defined the skills for each role.” They arrived at a final set of fourteen competencies, nine general skills and five unique skills, that everyone agreed fit the respective role.

Their process of individual and team workshops was used throughout the organisation to define roles using the T-shaped approach and followed these general steps:

Employees individually consider the required skills and competencies for specific roles,
Teams gather and discuss the skills and competencies each person identified, and
Teams collaboratively narrow down the identified skills and competencies to one list.

Helen shared that they were pleasantly surprised by this approach’s far-reaching impacts, “What actually came out of those workshops is that we could take the T-shape and really start looking holistically at what we were offering to our employees – all the way from providing a clear job description to assisting with career progression planning to helping us recruit talent.”

Benefits of the T-shaped Approach

The T-shaped approach offers numerous benefits to both employees and the company. Employees are better able to engage in self-reflection with a T-shaped job description. They can evaluate their competencies and have meaningful conversations with their managers about growth opportunities. Helen elaborated on this benefit, “I can say from [the] feedback I’ve received that the T-shape has given employees clarity. It’s also given them a voice to express where they need support to do their job effectively, whether that’s from an educational standpoint or from a process standpoint.”

Furthermore, the T-shape creates a shared understanding of skills and competencies across the company. Helen explained how this clarity led to the restructuring of various roles, “We actually started to change key processes. We didn’t want certain roles to have to do certain things anymore because it was slowing them down.” To support these changes, Helen developed skills-based training tailored for the newly defined roles, which enhanced operations and better-equipped employees for career advancement.

A T-shaped skills approach is a powerful tool for self-reflection. As our conversation concluded, Helen challenged the audience, “Create a T-shape for your role. Review your job description and ask yourself: Is my role the same today as when I started in terms of the required skills? What is needed for the future? The T-shape is a straightforward way to look at your general skills and expertise and identify opportunities for growth.”

Whether utilised by individuals or organisations, investing in T-shaped skills brings clarity and focus to future development. This approach enhances efficiency and facilitates meaningful discussions, ultimately driving progress.