Multinational corporations need to align their transferable home-country retention practices with overall strategy and complement them with flexible context-specific practices, according to IESE Prof. Sebastian Reiche, whose article "The Configuration of Employee Retention Practices in Multinational Corporations' Foreign Subsidiaries" was published in the International Business Review.
In this video, Prof. Reiche explains the different techniques that companies use to retain talent. According to the Assistant Professor of Managing People in Organizations, there are five key dimensions that determine which strategies to implement when designing a retention plan abroad. The first dimension depends on the company of origin. Anglo-Saxon companies differ from continental European countries and Japan, for example, in the way in which employees are promoted. The second step is to ensure that the retention practice (context-generalizable versus context-specific) matches the strategic needs of the company. The third is to ensure that if context-specific practices are adapted, they are adapted across a company's different subsidiaries in a flexible way. The fourth dimension involves the factors that influence the relative importance of these context-generalizable versus context-specific practices. Finally, the last dimension refers to ensuring internal consistency between the retention practices for each subsidiary context, which helps to achieve synergies in retaining local talent.