Definition: A geocentric approach method helps organizations recruit employees globally. Usually, multinational companies use this method to employ personnel regardless of their nationality.
MNCs use the geocentric approach as they have a presence in different countries and the resources to do so. This approach helps them hire the most suitable employee.
This approval helps MNCs use employees from one location to another. For example, suppose an organization has an employee with special skills in Korea, and these skills are required in the USA. In that case, the organization can quickly relocate this employee to the USA.
A study by the U.S. Bureau of Labor Statistics highlighted that such strategic employee placements can enhance company performance.
The geocentric approach lets businesses use the talent whenever and wherever they are required.
MNCs mostly hire employees through recruitment agencies, which costs them a lot as hiring the right and quality talent is not easy. However, sometimes, they can have their in-house recruitment department take care of this process.
Advantages of the Geocentric Approach
- It helps organizations hire the best talent
- It helps diversify the cultural environment
- It reduces biases and racism
Disadvantages of the Geocentric Approach
- Training and relocation cost is high
- The hiring process is costly
- Only MNCs can use this approach
The geocentric approach is the best way to hire talent. Only the right talent gets promoted and reaches the top. This is best for an organization that needs the best talent for a key position. The organization becomes multicultural, which helps them grow the business in different countries.
As PMI suggests, a diverse work environment can bolster innovation and adaptability, essential traits for businesses aspiring for global reach.
Summary
The geocentric approach lets businesses recruit the best talent for a job irrespective of their nationality, culture, etc. It makes an organization truly global and multicultural.
Nice explanations