Companies are now beginning to apply a global human resources (HR) mindset to their global footprint and operations, according to findings from a recent multinational research survey released today by Mercer’s outsourcing business. The key drivers behind HR’s operational transformation, which were unveiled last week at Mercer’s Global Outsourcing Conference in Washington, DC, include:

• Rapid employee growth in emerging markets (many companies reported having more than 50% of their workforce located outside of their corporate home country or region)
• An increase in global workforce mobility
• More stringent governance and compliance requirements that vary dramatically by region
• Pressure for overall cost savings through process and policy standardization

In early 2008, Mercer partnered with Harvard Business Publishing to launch an in-depth study on the needs and expectations of multinational companies in the area of global benefits outsourcing. The survey was based upon extensive interviews with nearly 60 HR senior executives – 70% of whom hold global positions – at corporate headquarters and regional offices across the U.S., the U.K., Europe, Asia, and Australia.

The survey also shows that even as multinational companies and their HR executives take on more global roles, they are still largely entrenched in local and regional issues. In addition, they face significant business challenges that threaten to slow their progress in globalization, in particular the lack of centralized employee and benefits data.

At the same time, HR executives recognize that, with the help of specific strategic outsourcing product solutions – including global data aggregation and an integrated employee online experience – they can successfully overcome many of these challenges, deliver a higher level of employee service, and fulfill the new global role that is expected of them.

“This survey was the first of its kind to look at benefits outsourcing from a global client perspective,” noted Jeff Miller, president of Mercer’s outsourcing business. “The findings show that in order to become more strategic on a global level, senior HR leaders need better data and transparency across all of their benefit programs worldwide.