Read our article from October 2023 for a quick refresh on the basics of EPRG, or read on to find out how to adapt your GM policy according to you EPRG goals.
Step 1: Get leadership on board
Deciding to adopt the EPRG model can have major consequences on your company’s overall strategy. If you currently follow a solid ethnocentric approach, you may have a hard time revamping your Global Mobility strategy to become more polycentric. You will need support from leadership because the bigger the change, the bigger the possible obstacles. With the leadership team in your corner, you can focus on the task on hand without having to worry about them pulling the plug.
Step 2: Figure out which EPRG approach to select
Not every approach of the EPRG model may fit your company. So, it is important you take a good look at your organisation – down to a departmental level – to evaluate which approach works best.
For example, if you are a car manufacturer with factories all over the world, the last thing you want is a difference in production standards. The final product should have the same quality no matter where it is produced. In this case, an ethnocentric approach would make the most sense. By sending the management team from HQ, rather than hiring locally, you will retain greater control over process conformity.
However, if you consider Research and Development, a regiocentric approach may be more appropriate. Of course, you want the basics to be the same. But don’t you think people in China may have different expectations, needs and wishes than people in Germany? And who would be best qualified to identify those needs? Probably a local employee.
Just in this example, you can see how much variation there can be in just one company alone.
Step 3: Look at the markets you operate in
Before you adopt the strategy, you may need to look at the human resources available in the markets you choose. If you decide on a polycentric approach, research how much talent is available locally. Highly qualified experts can be especially scarce and, therefore, not available in every region. If you discover the required expertise is not there before implementation, you still have time to correct your strategy. Instead, you may decide upon a more geocentric approach while working to build up local expertise by collaborating with education institutes and offering apprenticeships.
Step 4: Write your global mobility policy
In this step you channel all the research you did on your organisation’s needs and the specifics of the locations into your policy. If you choose an ethnocentric approach your policy must provide the necessary incentives to entice your employees from HQ to relocate. With a polycentric approach, you need to make sure that your HR policy accommodates the needs of local talent and that locals are actually hired and have enough autonomy to make the necessary calls without too much interference from HQ. Compensation and benefits play a major part in this as well, as does cultural sensitivity training for upper and middle management to remove cultural biases that may otherwise stop a non-ethnocentric approach from succeeding.
Step 5: Communicate and adapt
Often forgotten but important nonetheless is communicating the change to employees. Only that way can you ensure support and address concerns before they get out of hand. Take time and listen to employee feedback. No first draft is ever perfect, so analyse what works and what doesn’t and don’t be afraid to make the necessary changes to improve.
With expert insights, gleaned from years of working with multinational clients around the globe, AGS Relocation is also here to help. Contact us for a no-obligation discussion on the tangible impacts your EPRG goals could have on your GM policy.