Mutual Learning Between NFPs and MNCs
Although issues such as retaining talent may be common to both NFPs and MNCs, their approach to managing such issues differs. An important reason lies in the divergence between them in terms of vision, mission and goals.
Nevertheless, NFPs and MNCs can learn from each other in order to manage their talent better. In this final section, we make recommendations for both types of organisations.
- • Attracting talents: NFPs need to learn from MNCs that focusing on attracting the right people is crucial, but due to limited resources in comparison with MNCs, they need to use different weapons in the ‘war for talent’. Their advantages lie in their meaningful missions and the opportunities that provide for their employees to have careers that ‘ make a difference’ . There is room here for MNCs to learn from NFPs that the mission and values of an organisation may also be vital attractors.
- • Developing talents: We recommend NFPs provide more developmental opportunities. This will involve increased investment in the staff, always difficult for organisations with moral missions to spend their money on. Career management and development programmes are beneficial to both types of organisations, but are often lacking in both.
- • Retaining talents: Retaining talent is seen as a problem in both NFPs and MNCs. Turnover is a larger problem for short projects. In our opinion, MNCs can learn from NFPs that the contribution one makes to society is as important to employees as the compensation and benefits. Thus, we would recommend MNCs to attempt to create meaningful jobs with a sense of purpose to retain their talents.
- • Use of technology: NFPs can learn from MNCs in relation to exploiting available employee information. MNCs tend to be good at maintaining and using information on their employees, while NFPs often struggle with rather outdated sources and systems with data often not being readily available. Since having information about the performance of talents is crucial to TM, we recommend NFPs make use of better tools for managing and updating information about their talents.
- • Future ofTM: TM at NFPs is in the early stages of development, compared to MNCs. NFPs can learn from the experience of MNCs and should take steps to do so. They may need to catch up too with the ongoing discussions in the field of TM and especially in GTM—the idea that an organisation needs to make use of all available sources of talent across the world and not rely only on local talent. By contrast, MNCs can learn from the more ‘internationalist’ mindset common in NFPs.
- • Challenges ofTM: Important stakeholders of NFPs are recognising the need for TM. Benchmarking their own programmes against successful TM programmes in MNCs would be valuable, and their benefits could be used to promote and gain support for TM in the NFPs.