Tag: mobility
ReLocate spoke with professor Greg Clark, urbanist and Senior Fellow at the Urban Land Institute Europe, to find out more. He is a widely published author on city development and investment issues and advises a wide array of international organisations. In May 2016 he presented a new report analysing the competitiveness of Brussels and Antwerp. Where most analyses of a city’s competitiveness rely on economic performance, The Urban Land Institute report looks at a much wider range of issues. Ranging from liveability to geopolitical risk and sustainability, these are the things that influence a city’s attractiveness to residents and companies alike.
Brussels and Antwerp are very different in nature: how did you approach the comparison?
“We put together two benchmarking groups, ran workshops, visited the cities and conducted a ton of interviews before running this comparative analysis in which we measured Brussels and Antwerp against groups of peer cities to arrive at an assessment of their competitiveness,” explains Greg Clark. “We didn’t just look at economic performance, but at other issues that impact a city’s attractiveness to residents too. Matters such as liveability, governance, geopolitical risk and sustainability are just as important in urban life. Brussels was tested against well established capitals such as London and Paris, cities that provide tough competition. Antwerp on the other hand was held up against peer cities that are reinventing themselves – some of them port cities – like Hamburg and Amsterdam, and other (former) industry greats such as Manchester and Liverpool.”
Antwerp has a huge opportunity to build a central role for itself as part of a regional system of cities.
What are their main selling points?
“Both cities have very good fundamentals, and their own, unique attractions. Antwerp is compelling for its extraordinary DNA. It has always been one of the world’s greatest trading cities and has invented many ideas about the connection between trade, innovation and discovery. Antwerp knows how to build a city around a port. Located within a north-western European economy of roughly 100 million people with a huge GDP, it’s well connected with Belgian, Dutch, Northern French and German cities on all sides. Antwerp has a huge opportunity to build a central role for itself as part of a regional system of cities.”
“The Antwerp port is embracing innovation in terms of how goods are managed, how energy is used and what technology is applied. They’re building an innovative port and energy complex, with a big focus on the circular economy, which is important and fascinating. Of course, the city of Antwerp is synonymous with the craft and design of high-quality goods. From the diamond industry to its fashion sector, Antwerpians know how to make items of high value work in the market place. This mercantilist attitude means it is truly open for business.”
“Boasting a young and vibrant population that is committed to taking the city forward, Antwerp is further boosted by a government with big ambitions. From building a canopy over the ring road to creating more public spaces and developing the left bank, the city is redesigning its urban fabric to make a future-proof city. Smart citizen initiatives activate people to act as the eyes and ears of the city, giving feedback on the quality of bicycle lanes or roads and public facilities that might need maintenance. These distinctive edges of Antwerp amount to things that are quite exciting considering its small size. Thinking about the business opportunities that arise from disruption runs deep within the Antwerp DNA.”
Brussels’ youthful population and great cosmopolitan mixity give rise to a highly scientific, entrepreneurial labour force that is willing to work in all sorts of industries.
“Brussels on the other hand is distinctive in a completely different way,” Greg continues. “It is a major capital city, and as home to the various European institutions and NATO it has an influential presence on the global stage, although it is yet to leverage it to its full potential. It’s interesting when you compare Brussels with cities like Washington DC or Singapore, which play an influential role by hosting global institutions, international summits and other gatherings that really work for the city.”
“It has a youthful population and great cosmopolitan mixity giving rise to a highly scientific, entrepreneurial labour force that is willing to work in all sorts of industries. The high calibre of educational institutes in Brussels is somewhat obscured by the presence of international institutions such as the EU and NATO, but the educational cluster has enormous potential thanks to leadership in fields such as IT, life sciences, or medicine. Most obviously it has enormous potential to be a global school of government, public policy and management.”
“When you look at productivity progress in Brussels a lot of it is to do with the dynamism of the labour market and its liquidity. People want to spend time in Brussels, partly because of its influence, but then find they want to stay and do other things too. It’s important to remember that government institutions feed and support a huge cluster of other kinds of decision making and communication activities. There are very big, positive spill-overs and multipliers that you can leverage into other industries. If you thought a government town can only ever be a government town, you’d be wrong.”
All attractive qualities indeed, surely there must be some drawbacks?
“They also both suffer from a number of challenges,” agrees Greg. “Part of this is that they are located in Belgium, and, great as Belgium may be, it is not a country that enjoys a clear institutional framework. Both Brussels and Antwerp struggle to build their identity and present themselves in a way that cities in less confusing countries do not. Brussels has far greater assets than say Vienna or Zurich, yet these cities have fewer difficulties presenting and promoting themselves on an international stage. Similarly, whilst Antwerp has greater or equivalent assets to Liverpool, Lyon, Genoa, and Turin, it has difficulty articulating what it is, where it is, and why.”
“They’re also rather late to the urbanisation agenda compared to other European cities. Citizens in Brussels and Antwerp are highly dependent on their cars and prefer the suburbs to the city centre. The Belgians tend to sub optimise the use of land and real estate, which translates into low levels of densification and very few mixed-use development projects. It also means there has been very little focus on transport and connectivity as a way of embracing and spurring on urbanism. The third thing that seems to be true for both of them – although each city has a slightly different version of this – is that they have had some difficulty creating the right geographical and institutional space through which to apply leadership to the city.”
“Brussels Capital Region struggles due to the way it is defined; geographically it’s too small for the – much larger – Brussels metropolitan area and then of course there is the fragmentation of having 19 separate municipalities, which rather effectively prevents an integrated governance model. You need a leadership platform for the whole area, otherwise you end up with different policies being pursued in different parts of the region, which is not particularly helpful. For Antwerp it was more of a question of leadership appetite in the past, although I think this is now being addressed. The current leadership has the appetite to succeed and a vision for moving the city forward. It’s just been slow getting there.”
“The public sector almost has a monopoly on leadership control in Belgium. Other sectors, such as business, cultural and higher education, have not played active civic leadership roles like they do in other cities of comparable sizes. There’s been too much waiting around for city government to put things right, rather than civic leadership working hand in hand with city governments to create forward momentum. I suppose you could say both cities have become somewhat institutionalised. This is now being addressed in Antwerp where civil and trade movements are working together with the city towards creating a more sustainable future for the city.”
Both cities need to build a strong brand and identity. Getting together with organisations that will back the city and help create a new global story will help put them on the map.
How can Brussels and Antwerp improve on their competitiveness?
“We focused on three main areas for our recommendations on addressing these weaknesses,” Greg tells us. “First, Brussels and Antwerp need to start embracing urbanisation. This means being proactive in extending and developing public transport as a way of reducing car dependence. By strengthening the urban mix, you create excitement and vibrancy. Creating exciting city centres and sub centres, together with a more active transport mix, helps attract and retain corporate investment and the dynamic workforce needed by these companies.”
“Secondly, the institutional frameworks have to be right. This creates room for city leadership that is continuously thinking about their city as somewhere people will want to live and work, rather than getting stuck in Belgian politics. Thinking about public and private partnerships on a city level is a big part of this, just look at how Antwerp is involving its citizens in the maintenance of its city.”
“This in turn leads into our third point: the promotion of Brussels and Antwerp. Both cities need to build a strong brand and identity. Getting together an alliance of organisations that will back the city and help create a new global story will help put them on the map. This is certainly happening in Antwerp, and I believe efforts are underfoot in Brussels now too.”
“Finally, both cities have really creative industries which are part of the impact of the cosmopolitan diversity of the city. You should be able to really use that cosmopolitan diversity as a driver of creative endeavour. The idea isthat diversity creates competitive advantage through interaction. To realise that, you’ve got to address the challenges of social exclusion and segregation. Brussels has two cosmopolitan populations: one is the elite that services the global institutions, the other is the population of migrants who have come from a poorer set of countries in search of a better life. Somehow, you’ve got to make those two kinds of populations work together.”
To read the full report, visit the Urban Land Institute website:
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Generational Differences
Lisa Johnson, Consulting Services Global Practice Leader of Crown World Mobility says: “The differences for this generation seems to fall into two big categories. First, there are a number of studies that show millennials worldwide expect to gain some international experience during their careers, as well as expecting career progress to happen with a shorter timeline than in the past.
The second big difference has to do with how information is communicated and the options that are open to millennials. There is a need to provide information and communicate using apps, texts and emails rather than through policy documents, face to face meetings or phone calls. Technology and how information is received is one of the biggest shifts in any industry and, of course, also impacts Mobility.”
Lisa Johnson finds that the most recurrent questions faced by relocators today are around low cost ways in which they can provide their services to early career employees seeking international experiences. Discovering which technology lends itself to developing apps and updated services fast enough is a big one, especially as many destination service providers have to operate within a limited budget and timeframe.
The New Normal
Walter Vermeeren, Senior Vice President EMEA of Altair Global, agrees that the difference in demands is mainly a result of changing times. “Our environment is continually evolving and as a consequence the people living in that environment change. There’s a difference in the type of requests we are seeing and to stand out as a DSP in a society driven by technology you have to adapt, no matter what age group you’re dealing with.”
Although many millennials will have travelled or studied abroad before embarking on their professional careers, they often lack a deeper understanding Walter Vermeeren feels. “They are the younger transferees, frequently single and in most cases they won’t have children. This is very different compared to the typical expat we saw 20 years ago. Millennials are generally very confident. Most of them will have enjoyed a student life without too many financial problems, be it in Europe, Asia or the USA. I certainly wouldn’t want to call them spoiled but it is fair to say that this is a generation that takes a lot for granted. Essentially, we’re looking at a group of independent workers who don’t necessarily expect relocation support but who simply assume that everything they do will go smoothly. And this means that the customer has changed drastically for relocation providers.”
Lisa Johnson elaborates: “We find that a lot of our early career employees have never moved before. They have no idea about all the things they don’t know. Ironically enough companies offer them cash options and DIY move solutions. But few employees are experts at moving, which means we need to offer a lot of practical advice and support. How much will it cost? Is immigration compliance important? Can I live anywhere I want without being concerned about safety? Why shouldn’t I negotiate my own lease?”
Corrective actions are not unfamiliar Walter Vermeeren tells us. “A lease agreement signed without DSP support is a typical example of this. We all know what can go wrong: from dodgy contracts, overpaying for a property or landlords who refuse to take care of essential repairs, by bypassing professional support, millennials can be left disappointed from the moment they arrive in their new home country. Situations like these usually mean the relocation service provider has to step in and fix things after the fact. Equally, it’s not much fun for the millennial who has to ask for emergency support. All this can also end up costing the employer a much higher service fee than anticipated.”
“The emergence of technology designed to support low cost moves is creating a shift in services. Yes, you can move more cheaply and find your own apartment quite easily, but you have to factor in human support in order to advise the millennial employee on the more practical side of things.” – Lisa Johnson, Crown World Mobility
Troubleshooting the Gap
Even so, we are dealing with actual physical human beings and a gap between brain and technology, let alone the detailed and specialist knowledge on vital components to a move abroad, such as immigration. This means that problem solving will probably continue to form a substantial part of the job. Adjusting your services and communication to the specific needs of your clients will surely help to minimize the number of hours spent troubleshooting.
Ensuring a smooth relocation for your clients will (for a part) hinge on how you deliver your services to the client. “With millennials you are best off offering a list of services from which they can choose, with a few mandatory services on the list. And the service list cannot be changed for a financial benefit if they don’t use it,” says Walter Vermeeren. “Start compiling your list by talking to millennials and finding out what it is that they really expect. DSP’s should work with their customers to develop this itemised service list. Try to be as pro-active as you can be, think about what you can provide and what the customer might want you to provide. And communication really works best using modern technology. Keep it fast, short and simple!”
“Use apps, timelines, texts and infographics instead of the typical HR policy document,” Lisa Johnson adds. “Information across the board is being produced and shared in new ways. Uber is a great example of getting what you need when you need it, just as airbnb is. I believe we’ll see a general shift where for example housing options are presented in a way not dissimilar to the airbnb model. And it’s not just the millennials who see the benefits of these technological changes; society at large is coming to rely quite heavily on these visually pleasing and easy to use applications, whatever their form or function. At the same time, technology is shifting faster than guidelines and security measures, so there are some very realistic concerns around these ‘uber mobility’ solutions that will need to be addressed.”
Future Visions
When asked how he sees the future of relocation services, Walter Vermeeren tells us that “The millennials will grow older, which means we’ll likely find that expectations and services required will level out somewhat. But don’t forget that the next generation is hot on their heels: the Z-generation or i-Generation, the digital natives. They’ll expect even more online and highly personalised services through all the media they use (TV, Smartphone, PC, Smartwatch and other things to come, 24/7!). This is a generation that likes to share goods and so co-housing will become more of an option, and a service where DSP’s can add value. This Z-generation was not financially pampered and is growing up in a very uncertain environment. They will be looking for more certainty, which is where DSP’s come in by once again providing guaranteed services and support.”
Lisa Johnson has a more philosophical approach to the future of relocation services: “Every company is aware of the fact that the majority of employees today are millennials and that they are driving certain shifts around career paths and experiences. They want work to be meaningful, have time for activities outside of work or want to be sure they can work for a company that does meaningful things. We will all benefit from these attitudes.”
Technology Musts
Computers, tablets, gaming consoles and smartphones are firmly embedded in our everyday lives. White papers by Crown Relocations, Xonex and Living Abroad teach us that:
1 – one of the greatest values of relocation technology is its ability to deliver pre-assignment resources to candidates through multiple platforms;
2 – tools should be streamlined, allow 24/7 access, reduce disruption, and offset problems in the new location. All of these features add up to faster assimilation into a new location, with less employee and family stress;
3 – relocation technology should be easy to use, must be fully functional on mobile platforms, giving an assignee greater convenience, connectivity and control of their relocation process.
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Increasing Mobility
There is a clear consensus that the volume of workers is expected to keep climbing. A strong majority of employers indicates the number of mobile employees in their organisations will increase or stay the same. As many as 89% of organizations indicated they plan to increase their mobile workers in the next two years according to PwC’s “Moving People with Purpose – Modern Mobility Survey 2014”.
KEY DRIVERS
Talent Gaps
Talent gaps continue to be cited as the top motivator for moving employees abroad with as many as one in three (34%) employers cited as “having trouble filling key positions.” (Moving People to Work) The dynamics are also changing. The profile of the Western senior executive being sent to explore foreign market opportunities is long replaced with a more complex, horizontal portrait.
“Talent management has become a headache for CEOs, with only 30% saying that they have the talent they need to fulfill their future growth ambitions.” (Talent Mobility 2020)
Expanded Reach
Employers also cite market expansion as a key driver for sending employees abroad. While this was also true in the past, the opportunities and barriers of market expansion have evolved. The balance between developed and emerging markets is shifting; while Western economies continue to send employees to emerging markets in droves, mobile employees from emerging markets are going not only to more developed countries but to other developing markets too.
“Nearly half of firms (45%) indicate some form of expansion impacted their relocation volumes.” (Corporate Relocation Survey Results)
“[Mobility professionals] regard new market growth as the principal driver behind the growing need for global mobility (60%).” (Strategic Global Mobility)
Leadership Development
Successful organisations are planning for their futures by making sure their high-potential employees develop a global mindset through international experience. They will have to be comfortable leading colleagues, and pursuing market opportunities, from very different corners of the world. International experiences are seen as opportunities to build intangible leadership skills.
Attract and Fulfill
A key evolution is that employees themselves are asking for international assignments. It is not lost on the broader talent base that global experiences have become a stepping stone to promotion and mandatory for senior leadership. While previous generations held mixed views regarding the personal value of international work, millennials in particular are increasingly requesting these assignments. International posts, then, are a key tool in the global contest for young talent.
The millennial generation will make up 50% of the workforce in less than a decade and a recent study by PricewaterhouseCoopers (PwC) reports that of 4000 millennial generation survey participants, 80% state that they want to work outside of their home country at some point during their career. It will be seen as a rite of passage.
Cost Pressures
Global economic confidence has hardly recovered from recent effects of the European debt crisis, let alone the global economic crash of 2008-2009, and cost management continues to place pressure on mobility professionals. This pressure isn’t slowing mobility volumes or even shrinking budgets, but is driving managers to more clearly demonstrate effective management and return on investment.
Compliance
Changing tax requirements and government regulations are quickly becoming the top risk faced by global employers. Governments in every corner of the world are ramping up pressure around enforcement of these regulations. As compliance becomes increasingly complex and increasingly important, employers appear to be increasing the levels of outsourcing this work to external consultants. Despite this rising need, many companies are facing avoidable penalties for non-compliance.
“Over-regulation is cited by 78% as a concern.” (Global CEO Survey)
“Some 40% of respondents reported that they did not have a formal risk control framework to monitor payroll tax and social security compliance, with 64% reporting they incurred avoidable penalties for non-compliance in 2012.” (Global Mobility Effectiveness)
Key Trends
Steven Cryne concludes that there are four important key trends that can be taken from the various reports:
(1) flexible program design as a result of a globalised talent pool, shifting employee demographics and demands; (2) increasingly strategic role for mobility in the organisation; (3) heightened focus and expertise in ROI and data analytics; and (4) more collaboration between business and government on labour regulations.
1. Global Talent Pool and Option Diversity
We are likely to continue to see an increasing variety in the types of assignments and policies, which is being driven by a number of factors. Cost pressures are driving employers to consider less expensive options for mobilising talent, ranging from short-term assignments and employing regional staff to virtual teams and “local plus” packages. Technology is making these different options easier to manage and demand from employees, especially millennials, is also driving flexibility.
2. Integrating Talent Mobility in Organisational Strategy
As the value proposition of mobility shifts, so might its role in the organisation. Mobility professionals and consultancies are all advocating for mobility to play a more strategic role and to become embedded in a diverse range of activities, playing a broader role in human resources.
3. Proving Return on Investment Becomes Crucial
All surveys that asked about tracking, evaluating, and other elements related to ROI clearly show organisations are not excelling in this area. “95% of companies don’t measure international assignment ROI… respondents simply are not sure how to do so” (Mindful Mobility).
“Three in four respondents expect to be measuring return on investment from mobility in two years’ time, compared with just 9% who do this today. Fewer say they can accurately quantify the cost of their programme. Even by 2017, only around half (49%) expect to be able to do this accurately.” (Moving People with Purpose)
4. Increased Government Collaboration
Employers have not been passive in response to heightened pressure over government regulations and compliance requirements. Even when their governments do not see it, employers know that mobile labour is a national economic advantage. Developed countries with ageing populations will become less dependent on domestic labour and employers – and associations – are helping them to recognise it.
“Indeed, 44% of CEOs plan to work with their governments to develop a skilled and adaptable workforce over the next three years. Twenty-seven percent want to collaborate with government to create a more competitive and efficient tax system.” (Global CEO Survey)
For the full presentation, please contact EuRA.
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Highly skilled personnel – From 1 January 2016, a foreign worker must earn at least 39,824 Euro gross per year in order to qualify for an employment authorisation and work permit type B as a highly skilled worker. In addition, he or she must also hold a higher education or university degree (or the equivalent).
Management personnel – The salary required for an employment authorisation and work permit type B as a manager will be at least 66,442 (or 66,441 in the Brussels region) Euro gross per year from 1 January 2016. Obviously the person in question must also actually hold a managerial position within the company.
Blue card – For the award of a European “Blue card” (i.e. a residence title which (under certain conditions) grants its beneficiary a right to a stay of longer than 3 months, while at the same time granting him the right to work) a minimum gross annual salary of 51,494 Euro is required as from 1 January 2016.
Exemption for executives working at headquarters – For foreign nationals employed at headquarters as executives or managerial personnel to benefit from the work permit exemption, from 1 January 2016 they must earn at least 66,441 Euro gross per year.
Wage elements taken into account – For the calculation of this minimum amount, all sums (gross salary, bonuses, year-end bonuses, double and single holiday allowances, etc.) and benefits in kind such as housing, car, etc. which count as remuneration for work will be taken into account, provided they are expressly included in the employment contract, with the amount specified.
Wage elements not taken into account – The allowances often granted to foreign workers to cover the additional costs that their employment abroad may involve are therefore not eligible (so-called ‘cost of living allowances’, removal costs, children’s school fees, etc.).
www.fieldfisher.com/locations/brussels
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