HOW TO TACKLE EMERGING MARKETS
Creating a powerful emerging market strategy has moved to the top of the agenda for many multinational companies such as Hilti, a European-headquartered global provider of products and services for construction professionals. In less than 10 years, 65 per cent of total global construction growth will occur in emerging markets, with half of this growth in China. This ongoing expansion has already resulted in a severe shortage of talent.
For a specialised industrial company like ours, the challenge is magnified as we don't always appeal to Generation Y, and our brand is not yet universally recognised beyond its own industry. As such, the company has had to develop a strategic approach to attracting and retaining the most talented individuals.
Most companies fall into the trap of salary wars, while competing for talent. The attempt to attract and retain talent exclusively through the use of monetary rewards is, however, shortlived, and tends to have a limited impact. Competitive remuneration and benefits are, of course, necessary but in the end, the employee experience is what counts. The ability to provide a great employee experience is a key differentiator for us. We have always believed that it is our organisational culture that has made the difference when it comes to attracting and retaining talent.
Accordingly, we highly stress the importance of our managers' ability not only to deliver business results, but also to deliver convincing progress with regards to organisational development. Both aspects paired together are crucial for future company growth.
This combination of hard and soft results is the main criteria for career advancement. For someone aspiring to be a manager at Hilti, merely achieving short-term financial results is not good enough.
India and China are definitely not short of growth opportunities. However, the ability to adjust organisational development to match high-growth patterns is a decisive success factor. In India, for example, we experienced strong double-digit growth rates in the past 10 years which led to headcount additions of more than 30 per cent annually. Proactive manpower planning helped to master this challenge.
Using our three- to five-year business plan as a