“Nothing will be the same anymore”. That is everyone’s fear: companies, organizations, governments and society in general. The current COVID19 pandemic has no borders and has spread from country to country with overwhelming ease. In a hyper-connected, global world, everything circulates faster. Good and bad.
All countries affected by the virus have been forced to isolate their populations with the aim of curbing infections and protecting the limited capacity of national health systems. A kind of de-globalisation where the movement of people and goods will be restricted, more controlled. International trade will be affected. According to the economist Federico Steinberg, there will be a “retreat” of international supply chains. Companies will try to find local suppliers to avoid international sources. A “regionalization of production”.
Deglobalization: a virus lurking
We want to think that the COVID19 pandemic is just a pause and that things will go back to normal when it passes. But they won’t: it will transform the economy and society as we know it today.
One of the transformation factors is the “deglobalization” phenomenon, which is not new. It had already occurred since at the moment of the shock of the 11 September 2001 attacks or the Lehman Brothers crisis in 2008, which affected demand, supply and debt. COVID19 has only accelerated this trend, already seen in Trump’s protectionism, Johnson’s Brexit, or the reduction of multilateral treaties, for example.
This new “virus” will result in winning (few) and losing (many) countries. An “every man for himself” situation that will affect the weaker countries, provoke interest shocks between them, a fall in consumption and investment, and impoverishment of the general population, to mention a few effects.
This is why it is necessary to fight the de-globalization virus, because it could have serious consequences for economies, even the most powerful ones (China is very dependent on foreign investment, for example).
Globalization needs to transform itself
Economic experts could have determined that we have already reached the peak of globalization, and that, after stagnation, it could be reduced if it is not further developed. And this reduction can be accelerated by these “shocks”.
Globalization must not disappear but it must be transformed and adapted to the circumstances of the market and the economy. Can we maintain the same conditions that we have been maintaining? Not in view the current situation.
The fight against deglobalization involves a reorientation of the economy. A new economy based primarily on technologies, capable of changing, among others, the organization of companies, government plans, the demand and supply of products and services, marketing, distribution, forms of work, or labour relations.
What about the demand and supply for talent?
The tendency to control more and to limit the movement of people could also be said to have consequences for global recruitment. And so much is the need for the mobility of goods in our world for economies to work, such as the mobility of people. Because talent has become a global resource, given the scarcity of a local one to cover the present and future needs of companies.
Here, the fight against de-globalization and the protectionism of talent involves adapting recruitment and incorporation of talent (from talent-seeking countries) into the digital world. It also involves a generalisation of telecommuting and a redefinition of the relations between employee and company.
Do you want to know which countries generate the most talent?
Many of the activities of today’s economies require human presence. What if a labour-generating country were to ban the mobility of its workers to other countries? What if a country in need of professionals did not have any? Would unemployment and the impoverishment of the population of the former increase? Would the activity of the second stop? The consequences can be disastrous.
For other activities that can be easily automated or digitized technology exists. Background exists. We know how to do it.
Digitization of Talent Acquisition, Recruitment and Management
Many companies have opted for the digitisation of these processes in order not to paralyse their activities. Having the right tools or the best partner will be vital to reorient talent strategies in the coming months.
The ultimate goal is to avoid falling into the “virus” of de-globalization, the protectionism of talent and its negative consequences. Why not use technology to access a larger pool of candidates? Why not attract and incorporate that talent and form the team we really need, even if it’s remote?
At Catenon we are already doing this for our customers around the world. They count on us to digitize their recruitment, build their teams, detect internal talent with high managerial potential, and evaluate the potential of their teams, among others. You want to know how?