Local Content Requirements and Strategic Workforce Planning
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Local content requirements (LCRs)—quotas governments establish to ensure their communities benefit from foreign investments—often include hiring and training local people. LCRs are so pervasive in certain industries—oil, gas, minerals, and, increasingly, renewable energy—that some companies develop an integrated approach, including a structure, policies, systems, and procedures for dealing with them that can be rolled out globally and customized locally.
Most multinationals, however, do not have an integrated strategy for achieving localization. Strategic workforce planning can help companies pressure-test their plans and model various alternatives, providing business leaders with a realistic view of the costs and benefits.