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One Size Does NOT Fit All When It Comes to Global Recognition

I recently came across this post on Compensation Café. It discusses how global companies are experiencing difficulties in recruiting and retention of their international staff because they are trying to apply US business practices in areas with different laws, policies and culture. In today’s corporate environment, multinational corporations (MNCs) are constantly faced with the task of managing the globalization of their brand as they set-up operations in different countries. It is key for these MNCs to recognize that cross-cultural practices have to be managed at a localized level while simultaneously maintaining and encouraging consistent business practices. How do you do this when you have varying communication styles, budgets, policies and practices around the world? It’s not an easy task.

MNCs who are successful at this pay close attention to issues related to IHRM (International Human Resource Management). One way they do this is by hiring managers, either local or expatriate, with specific qualifications to handle international operations. Managers must display and practice cross-cultural managerial values. They also need to be cognizant of different communication styles and be willing to  educate themselves on  the local cultural norms and preferences of global employees – all while adhering to a consistent business process. With additional training and education, and by working closely with consultants who are subject matter experts (SMEs) on IHRM, managers can thoroughly understand what is appropriate for their organization and their employees at a local level.

The Michael C. Fina customers I work with are typically MNCs that are looking to recognize and reward their global employees, and the issues detailed above can be a significant concern in this area. By tapping into the knowledge of SMEs in specific regions where our customers operate, and relying on independent research, we offer guidance on what is appropriate when it comes to their employee recognition programs. This research is used as a guide as we set-up international service recognition programs around the world because what is an appropriate means of rewarding an employee in one country is often inappropriate in another.

Employee recognition – whether service awards, on-the-spot recognition, sales incentives, etc. – must be designed using a combination of cultural determinants while simultaneously maintaining the organization’s branding and public message. For example, a service anniversary celebration in Japan will be entirely different when compared to a service anniversary celebration in Australia. Japanese employees in the workplace have a high need for certainty in the workplace where as Australian employees do not.  

 

The need for certainty is defined as the extent to which employees are comfortable with uncertain or ambiguous situations. This need for certainty is strong across generations in Japan, meaning companies seek to make their gifting and recognition programs systematic and consistent. The Japanese can be embarrassed by gifts if they are given without proper introduction. Managers and directors announce ahead of time that they will present a gift at the end of a formal meeting or event. They give a speech recognizing the accomplishment of the team, rather than the recipient alone.

A recognition program in Australia is usually set in informal social settings. These events are much less formal.  Various co-workers make speeches and then a gift is given to the recipient. There is usually no formal banquet or event organized.

These are the types of underlying cultural differences that HR Managers need to keep in mind in order to successfully launch a consistent yet appropriate recognition program, built based on cultural preferences and practices.

“For those who work in international business, it is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that ‘deep inside’ all people are the same – but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country – the chances are we’ll make some very bad decisions.” -Geert Hofstede