Talent management decisionmakingVlad Vaiman

School of Business, Reykjavik University, Reykjavik, Iceland

Hugh ScullionJ.E. Cairnes School of Business and Economics, NUI Galway, Galway, Ireland, and

David CollingsDublin City University Business School, Dublin City University, Dublin, Ireland

Abstract

Purpose – The paper sets out to understand the key issues that emerge in the context of decisionmaking.

Design/methodology/approach – The paper is a literature review.

Findings – First, the authors review debates around talent management decision making. Second,they examine some of the main factors currently influencing decision making in talent management.Third, they seek to identify some future research areas that will inform future decision making intalent management.

Practical implications – The paper will be of interest to practitioners in designing and developingtalent management decision systems.

Originality/value – The paper presents a state of the art review of talent management decisionmarking.

Keywords Talent management, Decision making, Global talent, Human resource management,Employees

Paper type Research paper

1. IntroductionIn today’s rapidly moving, dynamic, uncertain and highly competitive global market,firms worldwide are facing major decisions and challenges in global talentmanagement (Schuler et al., 2011; Scullion et al., 2010; Tarique and Schuler, 2010).For organizations across the globe, talent management of knowledge workers and highpotentials is of increasing strategic importance (Tymon et al., 2010; Vaiman, 2010).Indeed, there has been growing interest in talent management among senior managersand academics alike since the late 1990s when McKinsey consultants coined the phrase“the war for talent” to underscore the key role of leaders and high potentials played inthe success of leading companies (Boudreau and Ramstad, 2007;PricewaterhouseCoopers, 2008a; Scullion et al., 2010; McDonnell, 2011; Scullion andCollings, 2011). A recent report by the Boston Consulting Group highlighted talentmanagement as one of five key challenges facing the HR profession in the Europeancontext and, interestingly, that it was also one of the areas which the function was leastcompetent in (Boston Consulting Group, 2007).

It is important to note that there is considerable debate between researchers withrespect to their understanding of the meaning of talent management. Some researcherssee talent management from a primarily human capital perspective (Cappelli, 2008)

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Management DecisionVol. 50 No. 5, 2012

pp. 925-941q Emerald Group Publishing Limited

0025-1747DOI 10.1108/00251741211227663

while others see it as essentially a mindset with talent as the key to organizationalsuccess. Others see the alignment of talent management closely to the businessstrategy and the corporate culture as a key feature of talent management (Farndaleet al., 2010; Kim and Scullion, 2011). Recent reviews have concluded that the lack ofprecise definitions of talent management may have contributed to our limitedunderstanding of the area (Mellahi and Collings, 2010; Collings and Scullion, 2009).

While talent management has been criticized for lacking conceptual and intellectualfoundation, and still faces some difficult issues around its definition and intellectualboundaries (Lewis and Heckman, 2006; Scullion and Collings, 2011), some recent workhas addressed this issue and has contributed theoretically to the study of talentmanagement (Boudreau and Ramstad, 2007; Cappelli, 2008; Vance and Vaiman, 2008;Vaiman and Vance, 2008; Collings and Mellahi, 2009; Becker et al., 2009; Farndale et al.,2010; Groysberg, 2010; Lengnick-Hall and Andrade, 2008; McDonnell et al., 2010;Scullion et al., 2010; Tarique and Schuler, 2010; McDonnell, 2011; Asag-Gau and vanDierendonck, 2011; Bethke-Langenegger et al., 2011).

As the field of talent management develops to a more mature stage over the comingyears, emergence of greater consensus around its definition and intellectual boundarieswill be an important measure of progress (Collings et al., 2011). However, it is equallyimportant not to loose sight of differences in how talent management is defined andconducted in different national contexts. This comparative understanding will beequally important as the field matures. Such an understanding should help tocounteract an overly ethnocentric or Anglo-Saxon conceptualization of talentmanagement which is not reflective of practice in many parts of the world (Luthanset al., 2006; Vance and Vaiman, 2008; Mellahi and Collings, 2010; Tymon et al., 2010;Scullion and Collings, 2011).

While a thorough debate on the variations in definitions is beyond the scope of thecurrent paper, for the objectives of this paper, we propose Scullion and Collings (2011)definition of global talent management:Global talent management includes allorganizational activities for the purpose of attracting, selecting, developing, andretaining the best employees in the most strategic roles (those roles necessary toachieve organizational strategic priorities) on a global scale. Global talent managementtakes into account the differences in both organizations’ global strategic priorities aswell as the differences across national contexts for how talent should be managed inthe countries where they operate.The empirical evidence on talent managementremains limited but does point to wide differences between the rhetoric of formalpolicies and the reality of what happens in practice. While firms tend to recognise theimportance of talent management, they often fail to manage it effectively (Scullion et al.,2007; Schuler et al., 2011; Collings et al., 2011). The global financial crisis has led toquestions on the continued relevance of traditional approaches to talent management,but evidence suggests that it remains a rather significant issue for senior managers inmany large organizations. For some companies, identifying, attracting and retainingtalented, high value employees has actually increased in importance in recent years(Beechler and Woodward, 2009; Farndale et al., 2010; McDonnell et al., 2010; Scullionet al., 2011).

Talent management is likely to be a challenge for organizations in all the majoreconomies right across the world, with recent research suggesting that talentmanagement challenges may even be more acute in the emerging markets (Yeung et al.,

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2008; Tymon et al., 2010; Vaiman and Holden, 2011). Yet, there is a dearth of empiricalresearch on talent management in the emerging markets, notwithstanding some recentcontributions on India and China, reflecting the growing strategic importance of thesemarkets (e.g. Teagarden et al., 2008; Illes et al., 2010).

Decision making in talent management increasingly needs to recognize that thecontext in which people management takes place in different parts of the globe,including the emerging markets, is significantly different to the US context wheremuch of the theory around talent management has emerged (Brewster, 1995; Brewsteret al., 2004; Holt Larsen and Mayrhofer, 2006; Dickmann et al., 2008).

This article has three main aims. First, it seeks to review debates around talentmanagement decision making. Second, it examines some of the main factors currentlyinfluencing decision making in talent management. Third, it seeks to identify somefuture research areas which will inform future decision making in talent management.

2. The linkage between talent management and management decisionsThe linkage between talent management and management decision making is not new.John Boudreau began using the term decision science in the context of talentmanagement and HR in the late 1990s (Boudreau and Ramstad, 2007). Boudreau andRamstad (2007, p. 25) defined the goal of talentship decision science as “to increase thesuccess of the organization by improving decisions that depend on or impact talentresources”. Essentially, they argue that HR must reposition itself as a function andshift the emphasis from the provision of services to supporting key decisions withinthe business, particularly in relation to talent. In much the same way as marketing andfinance have evolved to become functions which very much inform and supportdecision making by organizational leaders beyond their functions, Boudreau andRamstad argue that HR offers far great potential if it focuses on providing non-HRleaders who ultimately make talent decisions with the decision framework and dataand analysis required to inform key decision around talent. However, even a cursoryexamination of organizations suggests that decisions around talent are often madewithout well-understood frameworks or consideration of the key relevant data(Boudreau, 2010). Instincts and informed preferences and biases of key stakeholdersoften unduly bias talent decisions (Mellahi and Collings, 2010; Boudreau andJesuthasan, 2011).

Moving beyond the limited role which the HR function has historically played inkey talent decisions involves moving beyond the provision of data requested byorganizational leaders towards bringing synthesis to the data, presenting them inusable metrics and analytics, and explaining the nuances behind them (Boudreau andJesuthasan, 2011). This is important as information overload where managers have toomuch data are far more common than a lack of data. When this is considered in thecontext of bounded rationality, where the cognitive limits which individuals experiencein their ability to process and interpret large volumes of complex information oftenresults in poor decisions (Simon, 1979). In coping with their limited ability to processsuch complex and incomplete information, managers often make decisions based on asubset of the information available, often leading to biases in decision making (Marchand Shapira, 1987; Bukszar and Connolly, 1988; Hammond et al., 1998). The idea ofbounded rationality has been applied to decision making in global talent management(Mellahi and Collings, 2010; Makela et al., 2010). The implications of framing talent

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decisions around this include questions about the extent to which decision makerssearch for pertinent information to guide their decision making and satisfying in termsof the level of information required before managers feel they can make a decision andstop the process of gathering information (Simon, 1979). In practice it is unlikely thatmanagers faced with global talent management decisions will have the time or thecapability to scrutinise all possible candidates from all subsidiaries who fit the criteria(Mellahi and Collings, 2010). It has been argued that in such situations decision makersare likely to select candidates closer to them – who are considered good enough –based on previous experience and predispositions and biases. As Makela et al. (2010)point out, talent decisions are often made on the basis of cognition-based choiceprocesses, in which boundedly rational decision makers evaluate availableperformance data and anticipations of future potential.

In his contributions over the past decade or so Boudreau has attempted to move thenature of talent decisions beyond such imprecise and bounded frameworks to decisionssupported by scientific data and processes. The aim is to improve decision makers’ability to make informed decisions around human capital and talent management.More recent contributions point to evidence of the increasing adoption of sophisticatedmethods of analyzing employee data in pursuit of competitive advantage (Davenportet al., 2010b). Indeed, Davenport et al. (2010b) have developed a useful typology ofanalytics which represents the different uses organizations can make of talentanalytics. These range from simple human-capital facts which include individual levelperformance data and enterprise level data such as head-count, turnover andrecruitment metrics to sophisticated real-time deployment of talent based on quicklychanging needs. However, the potential of analytics in understanding which actionshave the greatest impact on business performance is also an important category intheir typology which some could argue is the most significant. Understanding theimpact of key roles or “pivotal talent segments” and optimising investments in humancapital are central aspects of maximising the efficiency of decisions around talentmanagement (Becker et al., 2009; Collings and Mellahi, 2009; Boudreau and Jesuthasan,2011). All in all the effective use of analytics (Davenport et al., 2010a) and provenbusiness tools (Boudreau, 2010; Boudreau and Jesuthasan, 2011) in making talentdecisions are reflective of the shift towards evidence based management (Rousseau andBarends, 2011) and represent an important step in maximizing the contribution of theHR function to organizational decision making and performance.

In the following we consider some specific factors which add to the complexity ofdecision making in talent management in the global context.

3. The key factors influencing talent management decision making in theglobal contextAs we have outlined previously, the framing of talent decisions in appropriateframeworks and maximising the use of appropriate data in the decision process havereceived increasing attention over recent years. Decision making around global talentmanagement has emerged as a key challenge for multinational enterprises (MNEs) inthe last decade (Scullion and Collings, 2011). We identify a number of factors whichhave impacted on this complexity.

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Talent shortagesFirst, there is a growing recognition of the critical role played by international talentmanagement in ensuring the success of MNEs (Scullion and Starkey, 2000; Black et al.,2000). This reflects the intensification of global competition and the greater need forinternational learning and innovation in MNEs (Bartlett and Ghoshal, 1989). Indeed,the effective management of human resources, and particularly the quality ofleadership talent in the MNE are increasingly seen as major influences on the successor failure in international business (Black et al., 2000; Scullion and Starkey, 2000;Collings et al., 2007). Shortages of international management and professional talenthave emerged as a key HR challenge facing many MNEs that are competing for thesame global talent pool and facing difficulties in recruiting and retaining themanagerial talent required to run their global operations (Tarique and Schuler, 2010).

Research highlights that a shortage of leadership talent is a major obstacle thatmany companies face as they seek to operate on a global scale (Scullion and Starkey,2000; Stahl et al., 2007; Cappelli, 2008; Briscoe et al., 2009). This literature suggests thatmanagement decision making in the area of global leadership is a critical area forglobal talent management, and that decision making in this area needs to be strategicand effective in order for MNEs to successfully implement their global strategies(Scullion, 1994; Scullion and Brewster, 2001; Cohn et al., 2005; Ready and Conger, 2007;Stahl et al., 2007; Bjorkman and Lervik, 2007; Farndale et al., 2010).

There is growing recognition that MNEs need to manage talent on a global basis toremain competitive, reflecting the trend that competition between employers for talenthas shifted from the country level to the regional and global levels, and that talent maybe located in different parts of the global network (Sparrow et al., 2004; Farndale et al.,2010). On the supply side, a number of factors have increased the level of internationalmobility and opportunity for new forms of mobility, such as the volume of migrationand the shift towards skills-related immigration systems; the globalization of a numberof professional labour markets such as healthcare and information technology is alsosignificant in this respect (Sparrow et al., 2004; Solimano, 2010). On the demand side,there has been an increase in demand for expatriates with the capability to developnew markets, and there is a growing demand for alternative forms of internationalassignments such as short term assignments, commuter assignments and the like(Collings et al., 2007; Farndale et al., 2010).

Further, the importance of talent management decision making is no longerconfined to large MNEs or large domestic organizations. Research suggests that talentmanagement issues are becoming increasingly more significant than previously due tothe rapid internationalization of small and medium-sized enterprises and theemergence of “micro multinationals” in recent years (Scullion and Brewster, 2001).

Demographics and societal trendsSecond, declining birth rates and increasing longevity are key demographic trendswhich increasingly impact the nature of the talent management decision making andthe nature of talent management challenges facing organizations (Taylor and Napier,2005; Beechler and Woodward, 2009). Research has highlighted rapid shifts in thedemographic profiles of many countries which impact on the supply of labouravailable to employers in those countries, and this requires many organizations tointroduce new approaches in their recruitment and retention policies and practices

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(Tarique and Schuler, 2010). There are a number of specific demographic trends likelyto influence talent management decision making, for instance, in Europe in the nextdecade.

A major survey on HR trends in Europe identified managing demographics as oneof the key challenges facing the HR function (Boston Consulting Group, 2007). Asignificant problem was the loss of capacity and knowledge, as workers retire inincreasing numbers. Another key problem is the aging of the workforce. These trendsare reinforced by a recent study which highlights the implications of the retirement ofbaby boomers in terms of talent gaps in key economies around the globe (WorldEconomic Forum, 2011). The study suggests that in Western Europe the talent supplywill decline continuously, leading to “almost empty talent pipelines beyond 2020”(World Economic Forum, 2011). The analysis suggests that in the UK and Germanyimmigration and growth rates will not be enough to offset the reduction in theworkforce resulting from the aging population. The study also highlights that talentshortages are expected to be major issues in Spain and Germany for the next 20 years(World Economic Forum, 2011), and that the challenges for managing the labour forcein Poland and Russia are also considerable (Ward, 2011).

The nature of talent management decision making will also be influenced by theincreased significance of the so-called Millennials (i.e. those who entered the workforcesince the turn of the present century) which has emerged as a significant demographictrend in recent years The Millennials are an employee group who are likely to be inhigh demand given the demographic trends identified previously, and a recent reportsuggests that they have rather different expectations in terms of the psychologicalcontract at work (PricewaterhouseCoopers, 2008b). They place a strong emphasis oncorporate social responsibility and highly value training and development. They alsohave a preference for mobility at an early stage in their careers. Millennials also havestrong expectations that they will change organizations a number of times during theircareers (PricewaterhouseCoopers, 2008b) which reflects the characteristics ofboundaryless careers (Arthur and Rousseau, 1996). Senior managers making the keystrategic decisions in talent management will increasingly need to better understandthe role of employer branding in attracting and retaining this employee group. Also,they will need to develop a greater understanding of the issues affecting the motivationand engagement of this cohort, and its emergence will involve greater complexity ofdecision making in talent management (Pate and Scullion, 2010).

Corporate social responsibilityThird, recent research suggests that increasingly many companies need to considerCorporate Social Responsibility (CSR) as an important element of their approach todecision making in talent management. Many companies see CSR as a key part of theirrecruitment and retention strategy and regard CSR as a useful tool to attracthigh-quality international talent. In addition, research suggests that contemporaryworkers do not select a workplace only for money, particularly in dynamic and fastmoving markets (Summer, 2005; Tymon et al., 2010). Cultivating a reputation as asocially responsible company can be an important lever in talent management andretention. Managers can use CSR to enhance employee sense of intrinsic rewards ratherthan becoming too dependent on increasing compensation or benefits. This helpsorganizations to develop an employee value proposition that is more difficult for

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competitors to copy compared to an alternative of offering higher compensation(Bhattacharaya et al., 2008; Tymon et al., 2010). Once an employee is motivated by afirm’s CSR efforts, the employer might experience lower staff turnover rates(Redington, 2005), and research suggests that employees place a lot of emphasis on thequality of their relationships within the organization: trust, pride, fun and developmentare increasingly important to motivate and retain key staff (Levering and Moskowitz,1983/1984).

We should not forget, however, that national context plays an enormous role indefining the relationship between CSR and people management. Recent research byKim and Scullion (2011) highlights that not only there are very different conceptions ofCSR in different countries, but also there are very different ideas about the linksbetween CSR and global talent management in different national contexts, whichreflects that people are motivated for different reasons in different institutionalsettings. Their study of the link between CSR and talent management in a comparativecontext showed that the current state of knowledge exploring the links between CSRand talent management were rather limited, and their research highlighted how itspractice may vary in different national contexts. Their empirical study demonstrates amarked contrast in the approach of CSR towards talent management strategy betweenAsian and western countries, and suggested that key decision makers in talentmanagement need to take account of cultural and institutional differences betweencountries. The research highlighted the large divergence in CSR-HRM relationships indifferent national contexts despite the strong pressures for convergence due toglobalization, isomorphism, and standardization of CSR. Future research should paymore attention to the relationship between CSR and people management in differentnational contexts, as to date the bulk of research on CSR has focussed on companiesusing the Anglo-American corporate system (Kim and Scullion, 2011).

DiversityFourth, the challenge of managing diverse employee groups in a globalizedenvironment (Briscoe et al., 2009) is emerging as a significant factor impacting thecomplexity of decision making in global talent management, as the level of diversitywithin organizations is increasing (Beechler and Woodward, 2009). Gender diversity isalso on the rise, as reflected in growing female labour force participation rates acrossthe globe, yet women continue to be seriously underrepresented in senior managementpositions and in international management ( Jacobs, 2005; International LabourOrganization, 2009; Linehan and Scullion, 2008). Recent research also suggests that thelevel of ethnic, cultural and generational diversity of staff working in organizationsacross the world is on the rise as well, which has a strong influence on the way theemployees are managed and decisions are made (Briscoe et al., 2009; Beechler andWoodward, 2009; Scullion and Collings, 2011).

The increasing mobilityFifth, the increasing mobility of people across geographical and cultural boundariesprogressively impacts on decision making in global talent management (Tung andLazarova, 2007; Vance et al., 2009). The trend towards greater mobility and emigrationrates are higher among professionals and high skilled workers; however, reversemigration is also becoming more significant in recent years with many countries

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seeking to encourage returnee immigrants due to the growing recognition of thepotential benefits of their international management experience and networks in thehome country (Carr et al., 2005; Tung and Lazarova, 2006; Tung and Lazarova, 2007;International Labour Organization, 2009; Solimano, 2010). In addition, researchershave highlighted a trend where people with special talents show little loyalty tocountry or region and are very comfortable crossing cultural and geographicalboundaries. This new global elite have been described as “cosmopolitans” (Kanter,1995), and it has been argued that this trend results in a “talent divide” with a growingnumber of talents spanning national borders, and at the same time, a large pool ofpeople who have few opportunities for international mobility due to lack of access toeducation and career opportunities (Taylor and Napier, 2005; Baruch and Dickmann,2011).

Permanent shift to a knowledge based economyThe move to knowledge based economies is a further factor impacting on decisionmaking in global talent management. The rapid growth of the service sector indeveloped economies results in a growing need by companies to hire high-valueworkers in more complex roles which requires higher levels of cognitive ability(Chartered Institute of Personnel and Development, 2007), and this trend reflects theshift towards intangible and human assets (International Labour Organization, 2009).Key decision makers in many large organizations and MNEs are increasinglyconcerned with the retention and motivation of these knowledge workers, which hasemerged as a key talent management challenge for many organizations (Johnson et al.,2005; Beechler and Woodward, 2009; Vaiman, 2010; Sparrow, 2012). However, thecurrent global recession characterized by corporate downsizing has resulted inprofessional managers increasingly trading security for flexibility and becoming lessdependent on a single employer. Some have argued that the traditional psychologicalcontract based on loyalty, commitment and accountability in return for job security iscurrently being replaced with one where employees increasingly take responsibility fortheir own employability and career development (Pink, 2001; Sparrow et al., 2004; Pateand Scullion, 2010; Farndale et al., 2010; Cappellen and Janssens, 2010; Baruch andDickmann, 2011).

Recent research suggests there has been a growth of a wide range of internationalassignment options over the last decade ranging from the traditional expatriateassignment to the growing number of more flexible global staffing arrangements suchas short term assignments, international commuter assignments, virtual teams andothers (Collings et al., 2007; Mayrhofer et al., 2012). While researchers have highlightedthe absence of empirical data about the utilization of alternative forms of assignment(Mayrhofer et al., 2008), it can be argued that rapid changes in the global competitiveenvironment mean that more flexible forms of global staffing will be progressivelyused as alternatives to traditional expatriate assignments (Collings et al., 2007;Mayrhofer et al., 2012). Therefore, key decisions on global talent management willincreasingly need to consider the emergence of more flexible forms of internationalstaffing as well as the traditional forms of international assignment.

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Growing importance of emerging marketsFinally, the growth of the emerging markets has a major impact on decision making intalent management. Organizations are seeking managers with distinctivecompetencies and a desire to manage in culturally complex and geographicallydistant countries (Li and Scullion, 2006; Bjorkman and Lervik, 2007; Scullion et al.,2007; Li and Scullion, 2010; Farndale et al., 2010). In the current climate with highunemployment in many countries, it may no longer be appropriate to talk about a“war” for talent (Farndale et al., 2010). However, more people on the labour market doesnot necessarily mean that employers are able to find the level of skilled managers andprofessionals that they are seeking. The evidence suggests the demand for talentremains high, and that there is still a scarcity of high-level knowledge talent in theemerging markets. Also the evidence suggests that there is strong competition betweenMNEs and local players for the available talent (Teagarden et al., 2008; Li and Scullion,2010).

The retention of knowledge workers and managers in the emerging markets hasmaterialized as a major challenge for MNEs with annual turnover rates in key sectorsmuch higher than found in the West (Bhatnagar, 2007). For example, in India andChina problems in producing graduates in the numbers and quality needed bymultinational companies has resulted in acute skill shortages in key areas (Farrell andGrant, 2007; Farndale et al., 2010; Li and Scullion, 2010; Tymon et al., 2010). In addition,due to the intense competition for scarce professionals and managers in these markets,the talents are able to be more selective in the assignments they choose to accept, andmay not be prepared to move to some of the emerging markets due to concerns aboutquality of life, family, safety or related issues (Scullion et al., 2007; Farndale et al., 2010;Yeung et al., 2008). Another point of concern is the issue of dual careers, which is nowregarded as a worldwide trend that poses significant restrictions on the talentmanagement decision making and career plans of multinational enterprises (Scullion,1994; Sparrow et al., 2004; Scullion and Collings, 2006; Farndale et al., 2010;). And, moregenerally, the restrictions on international mobility make decision making in globaltalent management both more complex and more uncertain (Farndale et al., 2010).

Vaiman and Holden (2011) examine the emergence of talent management in thecontext of the complex geopolitical and socio-economic countries of Central andEastern Europe (CEE) and highlight that talent management in CEE countries remainrelatively underdeveloped in comparison to many western countries. The challenges oftalent management are discussed in the context of transition economies whichalthough undergoing rapid economic and social transformation are still influenced bythe regions socialist legacy which strongly impacts mental models at the workplace.Before the reforms, the management style was bureaucratic and authoritarian, andmanagers were expected to follow centrally imposed rules and regulations whichlimited the willingness of managers to take responsibility and restricted the use ofinitiative and innovation (Piske, 2002; Suutari, 1998). Although in Poland, for example,the transformation period (1990-2004) brought some freedom in the decision-makingprocess, the management style remained bureaucratic and authoritarian. Managerslacked the skills required to lead a company in the free market economy (Suutari andRiusala, 2001).

The rapid economic, social and political transformation in CEE countries makesdecision making in talent management more complex and more uncertain, and it also

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presents challenges for researchers due to the lack of knowledge of managementpractices and work relationships in post-communist countries (Pearce, 1991; Suutari,1998; Martin, 2006). The convergence of Western and Eastern practices was widelyassumed in the post transition period, yet while economic transition might beconsiderably advanced (Alam et al. 2008), the cultural processes influencingmanagerial practices are still in a period of change and believed to be far fromconverging with Western models (Vaiman and Holden, 2011; Skuza et al., 2012). Thissupports the argument of Luthans et al. (2006) that there is an urgent need toempirically investigate the relevance and operation of constructs to criticalorganizational issues in non-Western cultures.

4. Future research agendaThis article recognizes that global talent management has emerged as a criticalelement of strategic human resource management in the multinational enterprise andhighlights a number of key factors which have influenced decision making in globaltalent management as well as some emerging trends which will influence decisionmaking in talent management in the future. However, the authors recognise that thestudy of talent management is still a relatively new and continually evolving area ofresearch, and more empirical studies are required to better understand talentmanagement decision making in relation to the context in which it takes place.

A key requirement for effective decision making in talent management is that talentmanagement should be linked to the strategy and corporate culture of the firm, and ithas been suggested that the focus of the global talent management agenda is likely toshift over time as a firm passes through the various stages of the internationalizationprocess (Scullion and Starkey, 2000; Farndale et al., 2010). For example, global firmswhich have a growing need for co-ordination and integration of international activitiesrequire a greater central control over the careers and mobility of their internationalmanagers and high potentials, while decentralized multinationals tend to pursue moreof a multi-domestic international strategy requiring lower degrees of co-ordination andintegration and tend to operate with a less centralized approach (Scullion and Starkey,2000). Further research is required on the key decisions and challenges facing thecorporate human resource function in the talent management area, and on how newcorporate HR roles are emerging in response to the complex challenges of global talentmanagement (Farndale et al., 2010).

Further empirical research is required on the different nature of the challengesassociated with the implementation of global talent management strategies andpolicies in a variety of different contexts. We reject the prescriptive best practiceapproach to global talent management which is still dominant in the global talentmanagement literature (Scullion et al., 2010). In contrast, we call for future researchwhich highlights the complex problems of implementing talent management indifferent countries and in different types of organizations, where industrial andorganizational factors interact with institutional, historical, and cultural forces inshaping talent management in practice (Vaiman and Holden, 2011;).

Finally, to improve decision making in talent management, we suggest the need todevelop more comprehensive frameworks to reflect the complex set of environmentalfactors that affect talent management in the international context (Scullion andCollings, 2006). However, while there is much prescription about the need for

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integrated approaches to global talent management practices, there is little rigorousresearch in this area (Stahl et al., 2007; Mellahi and Collings, 2010). Similarly, furtherempirical research is needed into how MNEs balance the needs of short term decisionmaking of operating the companies with the long term strategic decision making ofglobal talent management, which seeks to align talent management with corporateculture and business strategy (Scullion and Collings, 2011). There is also an urgentneed for more empirical research on global talent management strategies and decisionmaking in the emerging markets due to the rapid growth of these markets and thedearth of empirical research in these areas (Tymon et al., 2010). Also recent researchsuggests there is growing evidence that an MNE’s social responsibility (CSR) activitiesare becoming an increasingly important way to attract and retain high potential staff(Macey and Schneider, 2008). Future research should examine the links between CSRand talent management (Kim and Scullion, 2011), and this could be particularly fruitfulin some of the emerging markets like India and China, where talent managementdecision making is increasingly influenced by CSR considerations.

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About the authorsVlad Vaiman is Professor of International Management and Academic Director of GraduatePrograms at the School of Business of Reykjavik University in Iceland, and is a visiting professorat several top universities around the world. His research interests include issues of bothorganizational behaviour and international management, and more specifically, matters ofcultural differences and their influences on leadership, motivation, and talent management inmultinational companies. Dr Vaiman has published two very successful books on managingtalent in organizations. His work has also appeared in several top academic journals includingAcademy of Management Learning & Education, Academy of Management Perspectives, HumanResource Management, Journal of Business Ethics, and others. He is also a co-founder and anexecutive editor of European Journal of International Management, an ISI-indexed publication.Vlad Vaiman is the corresponding author and can be contacted at: vlad@ru.is

Hugh Scullion is Professor of International Management at the J.E. Cairnes School of Businessand Economics at NUI Galway, Ireland. His research interests include global staffing, the role ofthe corporate HR function in international firms and global talent management. He has publishedin journals such as Academy of Management Journal, Journal of World Business and HumanResource Management Journal. He has acted as adviser and consultant for a number ofmultinational companies including Rolls Royce and Sun Microsoft. His latest book (with DavidCollings) is Global Talent Management, published by Routledge in 2011.

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David Collings is Professor of HRM at the Dublin City University Business School. Previouslyhe was on the faculty at the J.E. Cairnes School of Business and Economics at NUI Galway,Ireland. His research interests focus on management in multinational corporations with aparticular emphasis on staffing and talent management issues. His work in these areas has beenpublished in outlets such as Journal of World Business, Human Resource Management, andInternational Journal of Management Reviews. He has edited six books, most recently GlobalTalent Management, with Hugh Scullion and published by Routledge (2011). He sits on a numberof editorial boards, including Journal of World Business, and is Editor of Human ResourceManagement Journal and Irish Journal of Management.

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