In winter 2015 the Canadian Employee Relocation Council (CERC) began a research project to explore the wide spectrum of survey research conducted on global employee mobility. They conducted content analysis on 57 reports published between 2011 and 2016 by a diverse group of publishers. Stephen Cryne, President and CEO of CERC presented the results at the EuRA conference earlier this year, as with so many voices – surveys, analysts, predictions – in the industry, CERC wondered is there any consensus in the literature? Extracts republished with permission of EuRA.
'“The millennial generation will make up 50% of the workforce in less than a decade and a recent study by PricewaterhouseCoopers 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.” '
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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