Currently, many large businesses consider globalization as the most appropriate approach to increase their stability both financially and in terms of customer base. Through globalization, large businesses are able to gain competitive advantage against competitors in the market (Pride & Hughes 2011). Despite a huge competition in the global market, large companies design effective strategies that grant them a competitive edge. This is imperative because a company that is not able to adapt to the dynamic global market will obviously be outdone by other companies operating in the global market.
One of the most vital strategies that any global company must incorporate in their company is effective human resource management (Birn 2003). This is because human resource is the most valuable asset for any organization. Therefore, for any company to achieve its goals and objectives, it must focus on its employees by creating favorable working environment that guarantees employees’ retention. Additionally, a company must ensure that its employees are competitive in the labor market. A company can achieve this introducing training and development of its employees. This might play a key role in retaining existing employees and attracting new employees in the company.
Large companies endeavor to retain its employees and attract highly skilled employees in their company as they penetrate global market (Menipaz & Menipaz 2011). They send some of their employees to work in various countries where the company operates. However, some employees prefer to work in a truly global company rather than working in a multinational company from their domestic countries. They consider working for such companies more advantageous compared to working in multinational companies from their home countries.
There are various reasons that make some employees consider working for global companies. One advantage that employees see in a global organization is the fact that such companies provide a challenging working environment compared to multinational companies from their countries. As a matter of fact, many employees like a challenging working environment. This implies that many employees prefer a working environment that provides them with an ample opportunity to learn new things and develop their knowledge and skills on how to perform various tasks.
Employees perceive this as an advantage because a challenging working environment enables them to gain vital skills, knowledge and perfect credentials that make them competitive in the labor market. Additionally, a challenging working environment offers excellent platform that enables employees to develop skills and gain knowledge that make them more flexible in the dynamic working environment. Therefore, many employees consider working in a truly global organization with the motive of learning new things on how to execute various tasks in line with their job (Bederman 2008).
Moreover, employees may want to work for truly global company because they believe that such companies are remarkably successful and have strong financial stability (Wolf 2004). To employees, this is highly imperative because such companies guarantee job security compared to multinational companies that are less successful in the global market. Moreover, employee perceives such companies as advantageous in the sense that they provide attractive remuneration packages to employees. Therefore, in such a case, money is the motivating factor that makes employees want to work for global companies.
Moreover, many employees feel that such companies provide attractive pension plans and fridge benefits. For employees, money is not always a motivating factor that induces them to work hard towards the accomplishment of organizational goals and objectives. Benefits offered by a company also play a key role in determining performance of employees, productivity and profitability of a company (Sodersten 2004). Additionally, benefits determine employees’ retention in a company, for instance, a company that does not offer attractive benefits experiences high employees’ turnover rates than companies that provide competitive packages. Therefore, many employees prefer working in such companies because they give them attractive benefits and pension plans.
Other employees consider working for such organization because they provide job satisfaction. Many employees might consider working for global company since they feel that multinational companies from their country do not provide job satisfaction to their employees. For instance, global companies provide job satisfaction to their employees by providing outstanding insurance covers to all employees (Ali 2000). Through such covers, employees feel valued by such companies and they feel safe working there. Moreover, such companies provide job satisfaction by providing attractive allowances to their employees. For instance, employees working for a global organization in developing countries are given hardship allowances that are aimed at helping them survive in adverse conditions in such countries. Therefore, employees may feel free to work for global companies since they guarantee job satisfaction to their employees.
Another advantage that employees might see in working for a truly global company is the fact that such companies provide an opportunity for exploration (Tabb 2002). Many employees perceive working for a global company as an advantage because it provides them with a chance to explore new opportunities in the world. Employees are able to understand how economy of different countries operates and how global companies thrive in different economic conditions. For instance, employees may be anxious to know how global companies thrive under the economic conditions in developing countries. Moreover, employees perceive these companies as advantageous because they provide them with an ample opportunity to learn new ways of executing various tasks and cultures. This makes them more flexible to the changing working environment.
Another factor that makes employees prefer working in a global company is the fact that they perceive such organization as progressive and leading in their industry. Many employees consider working for leading companies in the market since they create a strong corporate image; thus many employees want to be associated with such organization (Ferrel et al. 2011). For instance, a company like Coca Cola has consistently maintained its strong corporate image in the global market and many employees like to be associated with such companies, which are widely recognized in the global market.
Therefore, employees regard working for a global company as an advantage since every employee wants to be part of a leading company. This is because being part of a leading team gives an employee a competitive edge than employees from less performing companies. This implies that employees working in a leading global company are always competitive in the labor market since their skills and knowledge are on high demand. As a result, employees can have a strong bargaining power even when they live such companies.
Employees may also be attracted to join global organizations due to their financial stability. Many global companies have a strong financial base that guarantees progressive operations of the company regardless of the economic conditions present in a certain country. This implies that most global companies are able to adapt to the adverse economic condition. Employees are sure of retain their jobs even in adverse economic conditions in the global market. Additionally, financial stability of such companies ensures the long-term existence of such companies. For instance, many global companies are not easily sold or absorbed by other companies. Therefore, many employees may consider working for such companies because they ensure continuous survival in the global market since they enjoy strong financial and customer base.