Etude PwC sur la mobilité professionnelle d'ici à 2020 (2013)


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La production de l’étude « Talent mobility 2020 and beyond » est le résultat de l’analyse de plusieurs sources sur le secteur de l’économie mondiale et des grandes entreprises.
L’étude reprend les réponses des 900 entreprises qui ont été interrogés sur les tendances de mobilité au cours des 20 dernières années et les résultats de la planification de scénarios testés avec plusieurs séries d’employés de demain sur l'avenir du travail à 2020. L’étude retranscrit aussi les entretiens des spécialistes des « talents » et de la mobilité PwC soutenus par les avis de plusieurs organisations mondiales dans le monde entier.

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Etude PwC sur la mobilité professionnelle d'ici à 2020 (2013)

  1. 1. Talent mobility 2020 and beyondThe future of mobility in aglobally connected world
  2. 2. BackgroundOur globally connected world and your businessThe year 2020, which once seemed so We’ve drawn from several sources in Our conclusions paint a business worlddistant, is approaching rapidly. The producing this report: that’s far removed from that of today.future promises to look very different, Talent and mobility strategies will needparticularly in the way the global • Information from our database to progress significantly to keep pace withworkforce is sourced, organised and representing 900 companies that have this change and the further increases inmanaged; an explosion of activity and been surveyed on assignment trends mobile employee numbers we expect tobusiness growth potential in emerging over the past 20 years. see. We’re not yet consigning existingmarkets has already contributed to • Findings from scenario planning models for international assignmentsa significant increase in the need for studies for our Managing tomorrow’s to the history books, but the changescompanies to move people and source people series, which explored the underway surely call for a radical rethink.talent from around the world. Talent future of work to 2020.1mobility is in the grip of radical change • Results from PwC’s annual globaland in this report we investigate the CEO survey.2emerging trends, what they mean for • Findings from PwC’s 2011 survey oftalent, mobility and resourcing strategies, millennials, which resulted in moreand the urgent need for alignment with than 4,300 responses.3wider business growth plans and strategy. • Interviews with PwC talent mobility specialists supported by the views of several global organisations from around the world. “The demographic changes that we see occurring in many of the regions where we operate – shrinking populations, an ageing workforce and diversifying demographics – compound the challenges we face and intensify the war for talent.” Dr Rüdiger Grube Chairman and CEO, Deutsche Bahn AG, Germany1 Managing tomorrow’s people: The future of work to 2020, PwC2 PwC’s 15th Annual Global CEO Survey, 20123 Millennials at work: Reshaping the workplace, PwC, 2011
  3. 3. ContentsExecutive summary 1A changing world – the next decade 5 Populations change and shift 6 Urban populations on the rise 7 Future view: New cities 9 The nature of work in 2020 10Modern mobility 11 Mobility, but not as we know it 11 Future view: Mobility without moves 13 Mobility in financial services 14Managing modern mobility 15 Talent on the agenda 16 Retaining the best 16 Growing talent from within 17 Adapt and survive 17 Managing millennials 19 Future view: Choice and flexibility 22The risks of modern mobility 23 Western employers lose their appeal 23 Pressure on pay 24 Focus on Africa 24 The politicisation of immigration 25 Pressure on HR 25Creating a ‘modern mobility’ strategy 27 Future view: Delivering the experience 28Conclusion 29
  4. 4. Executive summary The world in 2020 and beyond But this isn’t mobility as it’s been The business world is changing rapidly understood in the past; this is modern • New talent, new destinations. and this has transformed the way the mobility and it brings its own unique set The growing importance of emerging global workforce is sourced, organised and of challenges: markets has created a significant managed. Knowledge, trade, technology, shift in mobility patterns. Skilled capital and goods are more globally • More mobility – but not as employees from emerging markets are connected than ever before. we know it. Assignee levels have increasingly in demand at home and increased by 25% over the past decade; abroad. Domestic multinationals are Explosive growth in emerging markets is we predict a further 50% growth in increasingly attractive to local talent. creating a huge increase in the number mobile employees by 2020. But the delivery of the mobility experience and of employees working outside their home era where assignments meant a three the underpinning career promise (or location and critical shortages in talent or four-year relocation followed by ‘deal’) will become more critical in the in specific markets and disciplines have a return home is coming to an end. future as new, unfamiliar and often less pushed mobility up the boardroom agenda. New forms of global mobility have desirable locations come into play. developed in response to business demands and employee preferences, • Giving people what they want. many of which don’t involve Mobility opportunities are now relocation at all. recognised as a key element in attracting, retaining, developing and engaging talent. This is particularly“We’re deploying our assets and operations in a more flexible true of the millennial generation; 71%manner so that we can control costs not only with regard to say they want and expect an overseaspredictable business cycles, but also to cope with unpredictable assignment during their career. But asmacro-economic events.” the workforce becomes more diverse this inevitably affects global mobility strategies. The number of femaleJouko Karvinen, CEO, assignees, for example, has doubledStora Enso Oyj in the past 10 years from 10% to 20%. The preferences and expectations of mobile employees will have to be carefully managed in the next decade.1
  5. 5. • Bringing down the political • Powered by technology. Technology The mobile population in large organisations is increasing barriers. Businesses need to move will play a key role in global working and deploy people quickly, but tax, arrangements and help to support social security and immigration compliance obligations; however, requirements often stand in their technology will not erode the need to 200 50% Average number growth 25% growth way. Politics and political unrest have people deployed ‘on the ground’. of mobile are constantly shifting the barriers employees1 to mobility and any global mobility • Mobility functions rising to the 0 100 200 300 400 500 strategy needs to be nimble enough challenge. The pressure on HR to 1998 2009 2020 to react quickly to changes. By 2020, provide evidence and insight to support governments and regulators will need mobility decisions and to manage 1. 2020 projection: As the business model of an organisation evolves from multinational to international to global, to accept the economic benefits of programme costs will only increase in the mix shifts accordingly (from 80% of mobile employees from HQ to 60% from HQ to 40% from HQ). Numbers talent mobility to stimulate economic the future, and this means developing continue to increase and the definitions of mobility have broadened – even with increasing numbers, costs may be flat due to changes in package design and focus on lower cost alternatives. Mobile employee type mix has growth. This acceptance smooths the a predictive way of thinking – and evolved from 50% executive to 10% executive. way to greater collaboration between embracing the analytical techniques Source: PwC international mobility database – sample 900 companies governments and businesses to remove that support it. some of the barriers to mobility around the world. How will your business operate in this new Companies are hosting mobile employees in more countries than ever before environment? What talent will you need, The average number of host locations supported by a global organisation continues to rise• More sophisticated programmes. to compete, and how will you safeguard As we look forward, mobility strategies your talent pipeline for the long term? will need to be more sophisticated And how will you align your Mobility, to deal with growing deployment Global Resourcing and Talent Management 1998 13 50% growth 2009 22 demands, while simultaneously strategies with wider business strategy? managing the very different needs The winners of 2020 and beyond will 2020 33 and expectations of three generations be those companies that adjust their 5 10 15 20 25 30 35 0 of workers. The best mobility strategies now. Average number of host locations per organisation strategies will be agile, adaptable and Source: PwC international mobility database – sample 900 companies constantly evolving to meet the specific requirements of the business and different groups of employees. Talent mobility – 2020 and beyond 2
  6. 6. Three eras of international assignments1970–1990International assignments are mostly driven by largemultinationals based in the US and Europe. Theseorganisations send talent from the HQ country out intothe field to manage operations in other parts of theworld. Many assignments are from the US into Europe,but oil and gas, mining and other industries dependenton natural resources regularly send staff to morefar‑flung destinations. Assignees are usually sent offfor a two to five-year period and are incentivised withattractive expatriate packages.1990–2010Demand for global mobility of talent increases as newmarkets emerge for companies to sell their productsand services to, and also manufacture their goodsat lower cost. Offshoring gathers pace. A new breedof mobile worker emerges alongside the expatriateand meets the globalisation demand throughcommuter, rotational, and technology-enabled virtualassignments. The flow of talent is still predominantlyfrom West to East, or intracontinental, but companiesbegin to tap into rich talent pools in emerging markets,particularly India and China.3
  7. 7. Future view2020Global mobility continues to grow in volume. Withinthe context of closely aligned international regulatoryframeworks, the growth of cross-border acquisitions bysovereign wealth funds, lingering public investments inprivate business concerns, greater security cooperationbetween nations, and information technology thatcan identify and connect talent in an instant, globalmobility becomes part of the new normal. Mobility oftalent is fluid. For example, a Chinese company mayengage a European team to manage an investmentin Africa.“We try to avoid overseas assignments just to fill a gap, butsometimes you just can’t avoid it.”Marijn Dekkers, Chairman,Bayer AG Talent mobility – 2020 and beyond 4
  8. 8. A changing world – the next decadeThe global marketplace is a constantly shiftinglandscape and in recent years the primarydevelopment has been a steady but relentlessmigration of economic power from West toEast. Over the coming decades, demographicchanges and economic forces will combineto transform the business landscapestill further. New centres of growth willemerge; Western multinationals are alreadystruggling to compete with new and dynamicmultinationals from emerging economies inthe fiercely competitive battlegrounds of Africaand Latin America. The next decade promisesto be even more testing.5
  9. 9. Populations change and shift Proportion of the world population aged 60 years or more Median ageA combination of population changes and 2011 2050 25%an ageing workforce in many countries, Worldand the evolution of country-based 21% 26 36 20%multinationals into truly global entities 15% years yearshas created a fundamental change in howand where business is carried out. A sharp 10% 8% 10%growth in international mobility is a clear Lowest median age 5%consequence of this, as organisations Yemen Nigerwork hard to make sure that they have the (15 years) (20 years)people they need, where they need them. Highest median ageThese demographic shifts are intensifying. 1950 2000 2050The ageing workforce and impending Japan Spainretirement of the baby-boomer generation Source: UN report World Population Ageing 1950–2050 (41 years) (55 years)will pose serious challenges for mostdeveloped countries and even some Investment in education in Asia and Africaemerging markets such as China. By 2015, is creating a steady stream of talentedone‑third of China’s population will be youngsters who will increasingly be inover the age of 50 and annual workforce demand at home and abroad. At the samegrowth will be less than 5%. In India, by time, the population of Europe is in steadycontrast, over half of the population is decline. These are serious challenges thatunder the age of 30. multinational organisations must face if they are to succeed in the future. Talent mobility – 2020 and beyond 6
  10. 10. Urban populations on the rise whose population is projected to Urban and rural population trends 1950–2050 The world urban population is increase from 2.7 billion in 2011 to expected to increase by 72% by 5.1 billion in 2050. Over the same 6,000 2050, from 3.6 billion in 2011 to period, the rural population of the 6.3 billion in 2050. By mid-century less developed regions is expected the world urban population will to decline from 3.1 billion to 2.9 5,000 likely be the same size as the billion. In the more developed Population (millions) world’s total population was in regions, the urban population is 4,000 2002. Virtually all of the expected projected to increase modestly, growth in the world population from 1 billion in 2011 to 1.1 billion 3,000 will be concentrated in the urban in 2050. areas of the less developed regions, 2,000 1,000 World urban population 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 More developed regions – Urban population More developed regions – Rural population Less developed regions – Urban population Less developed regions – Rural population 72% The world urban population is expected to increase by 72% by 2050 Increase Source: World Urbanization Prospects: 2011 Revision, produced by the UN Department of Economic and Social Affairs7
  11. 11. Population of urban centres with 10 million inhabitants or moreRank – 2011 Rank – 2025Population Population1. Tokyo, Japan 37.2 1. Tokyo, Japan 38.72. Delhi, India 22.7 2. Delhi, India 32.93. Ciudad de México (Mexico City), Mexico 20.4 3. Shanghai, China 28.44. New York, USA 20.4 4. Mumbai, India 26.65. Shanghai, China 20.2 5. Ciudad de México (Mexico City), Mexico 24.66. São Paulo, Brazil 19.9 6. New York, USA 23.67. Mumbai, India 19.7 7. São Paulo, Brazil 23.28. Beijing, China 15.6 8. Dhaka, Bangladesh 22.99. Dhaka, Bangladesh 15.4 9. Beijing, China 22.610. Kolkata, India 14.4 10. Karachi, Pakistan 20.211. Karachi, Pakistan 13.9 11. Lagos, Nigeria 18.912. Buenos Aires, Argentina 13.5 12. Kolkata, India 18.713. Los Angeles, USA 13.4 13. Manila, Philippines 16.314. Rio de Janeiro, Brazil 12.0 14. Los Angeles, USA 15.715. Manila, Philippines 11.9 15. Shenzhen, China 15.516. Moskva (Moscow), Russian Federation 11.6 16. Buenos Aires, Argentina 15.517. Osaka-Kobe, Japan 11.5 17. Guangzhou, China 15.518. Istanbul, Turkey 11.3 18. Istanbul, Turkey 14.919. Lagos, Nigeria 11.2 19. Al-Qahirah (Cairo), Egypt 14.720. Al-Qahirah (Cairo), Egypt 11.2 20. Kinshasa, Democratic Rep. of the Congo New 14.521. Guangzhou, China 10.8 21. Chongqing, China New 13.622. Shenzhen, China 10.6 22. Rio de Janeiro, Brazil 13.623. Paris, France 10.6 23. Bangalore, India New 13.2 24. Jakarta, Indonesia New 12.8 25. Chennai, India New 12.8 26. Wuhan, China New 12.7“37 cities will have 10million 27. Moskva (Moscow), Russian Federation 12.6or more citizens by 2025. 28. Paris, France 12.2 29. Osaka-Kobe, Japan 12.0The number with more than 30. Tianjin, China New 11.920million citizens will double.” 31. Hyderabad, India New 11.6 32. Lima, Peru New 11.5 33. Chicago, USA New 11.4 34. Bogotá, Colombia New 11.4 35. Krung Thep (Bangkok), Thailand New 11.2Source:United Nations, Department of Economic and 36. Lahore, Pakistan New 11.2Social Affairs, World Urbanization Prospects,The 2011 Revision 37. London, United Kingdom New 10.3 Talent mobility – 2020 and beyond 8
  12. 12. Future viewNew citiesPopulation shifts will have a strong 10 million. It’s estimated that Wuhan’sinfluence on where organisations will economy is growing at an annual ratedo business over the coming decades. of over 12% and that GDP will doubleMuch of the population growth over within five years.the next 30 years will be concentratedaround urban areas in emerging China is not alone – a similar pattern iseconomies as these countries begin to emerging in Brazil, India and Mexico,mirror developed economies. Today, for albeit at a slower rate. The emergenceexample, in developed countries 75% of new commercial centres away fromof the population live in urban areas capital cities will create a new demandand this will rise to 84% by 2030; in for domestic mobility in the next decadeless developed regions only 40% live in as well as difficult challenges for HR –urban areas today, but this will increase such as whether ambitious employeesto 56% by 2030. will see assignments to newer cities in their home economy as a step backward.China’s growth means that new urbancentres are constantly evolving.New cities are initially selected bythe government, which through taxincentives and grants creates a fertilesite for companies. Housing, schools andhospitals soon follow and a new thrivingcity, ripe for multinationals, is born. Oneof the newest is Wuhan, 750 miles inlandfrom Shanghai, with a population of9
  13. 13. The nature of work in 2020In the longer term, economic, social and 2020: three worlds Fragmentationdemographic forces are steadily leadingtowards a fundamental change in the waywe work, and in the way corporations ‘Orange World’, where businesses are fragmented and companies are small andorganise their workforce. We’ve predicted nimble, relying on an extensive network ofthat modern trends will help to create suppliers. Companies have multiple clientsa future where tensions exist between and contracts and they routinely supplement their workforce with a globally diverse networkfragmentation and consolidation and of ‘team workers’ – technologically savvy,between collectivism and individualism. networked employees who are contractedWe speculated that three possible business on a supply and demand basis, anywhere in the world.approaches coexist,4 each impacting ona company’s strategy for dealing with Collectivism Individualismtalent issues.Each of these scenarios calls for a unique ‘Green World’, where companies have ‘Blue World’, where corporations are kingapproach to talent management and to developed a powerful social conscience that’s and individual preferences override belief closely tied to their brand. Their focus is on in collective social responsibility. Theseglobal mobility, which will place specific sustainable and ethical business practice and companies have invested heavily in the talentdemands on HR and business. they attract employees with values that reflect pipeline and believe in developing people as their own. Their success is largely driven by assets and take a paternal approach to their a high degree of employee engagement. This workforce. While the work is pressurised and impacts business decisions about mobility and fast-paced, employees are committed, well the way employees work. trained and more likely to remain with a single employer long-term. Integration4 Managing Tomorrow’s People: How the downturn will change the future of work Talent mobility – 2020 and beyond 10
  14. 14. Modern mobility Mobility is evolving from a straightforward Organisations are innovating in their transfer of skills to a far more complex approach to global mobility, partly through concept, designed to address a diverse set necessity as they adapt to the requirements of business needs: of the changing business world and partly to adapt to the preferences of different • The need to develop well-rounded generations of employees. leaders of the future, with a truly international perspective. Mobility, but not as we know it • The need to offer exciting career The critical need for companies to shore opportunities to the best talent as up skills in particular disciplines, regions competition to attract and retain the and projects is creating a sea-change best intensifies. in international assignments. Where • The recognition that an organisation assignments were typically ‘duration can benefit from a two-way transfer based’ e.g. for three to five years, of knowledge, skills and experience followed by a return to headquarters – every market is a fertile ground for or home location, short-term ‘purpose- new ideas. based’ assignments are becoming • The recognition that in an increasingly increasingly popular. international world where key roles often have a regional perspective The main priority for organisations is that and travel is relatively painless, the they have the right skills in the right place idea of a ‘home’ country is becoming at the right time. How that’s done is set less relevant. to become a more fluid concept, driven by strategic need but also by the desire to optimise the investment in a mobility programme. Many more mobility solutions are developing, designed for tomorrow’s business realities:11
  15. 15. Short-term assignments, often lasting Commuting and extended Global nomads. Regional leaders often Virtual mobility is the final piece ina year or less have become more popular; business travel allows assignees to work find that their role requires extensive the jigsaw. Technological innovation20% of assignments now last less than 12 in a specific location without relocating business travel and as a result they are has allowed employers to bring the bestmonths, compared with 10% in 2002.5 and has become a viable alternative to constantly on the move. Similarly, some people, wherever they may be, to work andShort-term assignments are generally more relocation for employees with family specialists move from project to project train together.appealing to younger workers who want commitments, and in roles that require to the extent that they effectively have noto broaden their experience than to those extensive travel by their nature. ‘home’ country. Mobility is evolving, but this greatlywith families, as disruption is minimised. increases the complexity of managingThe (generally) lower costs simultaneously Intra-country mobility is on the rise One-way relocation, as organisations a global mobility programme thatmake short-term assignments appealing as organisations look to maximise their move their regional or global headquarters may involve a diverse selection ofto employers. investment in mobility. It may be easier in order to be closer to business interests approaches and in an environment and more effective, for example, for a and the fastest-growing markets, meaning where organisations need to moveProject-based assignments. company to transfer skilled workers from the permanent relocation of key managers talent quickly, as well as monitoring theOrganisations are bringing selected Shenzen to Huangshan or from Mumbai to and their families. risk and compliance, costs and returnemployees from different parts of the Ahmadabad, than to move workers from on investment.organisation together for a specific project, the US or other mature markets. Contingent labour is increasingly beingrequiring some to relocate temporarily, used by organisations to meet short-termor travel frequently while the work is Rotational employee programmes, and specialist demand.carried out. often used in the development of high‑potential employees and in specific industries, are becoming increasingly internationalised. Reverse transfers, where top performers from emerging markets are moved into developed markets, usually on a short-term assignment, to gain valuable experience and skills.5 PwC Global Mobility Effectiveness Survey 2012 Talent mobility – 2020 and beyond 12
  16. 16. Future view Mobility without moves Long-distance commuting, on a weekly Many of the new approaches to global or monthly basis, is no longer seen as mobility have an element in common – unusual and potentially, has no limits the lack of relocation. Organisations are – it’s not strange, for instance, for key questioning whether, in this connected employees to fly regularly between society, there’s a pressing need for a California and China. Increasingly, worker to physically relocate for their employers are leaving the choice of work: Does the employee need to be in a where to live to the individual worker, particular location all the time? Or just but this leaves significant challenges for when they need to be? the HR function, which must make sure that immigration and tax compliance The best candidates for overseas requirements and duty of care assignments may not be ready or willing obligations to the employee - for example to relocate, so alternatives to traditional healthcare and security - are met. mobility such as virtual meetings and commuting are an efficient way of The main impetus for mobility without making sure that the best skills are moves is not necessarily cost control, as made available. Extended business short-term assignments and commuting travel and short-term, as-needed visits are often expensive once per diem are an effective way of moving skills rates, accommodation and travel are where they need to be and often make taken into account. And there are other the most sense for roles that require risks to manage such as the perception extensive travel anyway. Overall, that a commuting worker is not fully assignees (in the traditional sense) committed to either location, and represent 1% of the global workforce, the challenge of keeping a travelling but our latest figures suggest that mobile employee engaged. workers, encompassing these new forms of non-traditional movement, account for between 7% and 8% of the working population.66 PwC Global Mobility Effectiveness Survey, September 201213
  17. 17. Mobility in financial services We already see a more systematic andThe fast-emerging markets of South centralised approach to assignmentAmerica, Asia, Africa and the Middle management emerging includingEast are widely seen as more important a new emphasis on shorter, morethan developed markets to the future of targeted, purpose‑based assignments.the financial services industry as these And looking forward to the future,markets continue to expand. organisations are making extensive use of talent mapping, forecastingIt’s estimated that China’s banking and analytics to improve their talentsector will overtake the US by 2023, and management strategy and align it morethat India will become the third largest closely with the wider business plan.domestic banking sector, behind China,by 2050. By the same year, the leadingemerging economies of China, India,Russia, Brazil, Turkey, Mexico andIndonesia will have banking assets andprofits that exceed that of the G7.Financial services firms may haveambitious growth targets, but ashortage of talent in key areas andregions could hold them back. Talent mobility – 2020 and beyond 14
  18. 18. Managing modern mobility As the best companies work to align Global mobility functions and HR This will be particularly important for their global mobility programmes more professionals have always held employers in emerging markets, most closely with business planning and talent responsibility for addressing the notably in parts of Asia, who are relatively management, the goal is to react with regulatory, compensation and tax issues new to the management of global mobility greater agility as the world’s economic associated with global mobility, and and who perhaps lack the sophisticated growth engines continue to shift, the for developing the relevant policies global mobility functions of their population ages and a new generation of and streamlined processes needed for competitors in developed economies. employees takes over. assignees and the organisation itself. But as talent management becomes In practice, this means looking beyond strategically critical, their role will take on the traditional concerns of logistics, a new level of importance. compensation and tax issues, and aligning global mobility more closely to talent, Talent constraints are imposing tangible costs on global companies succession planning and global resourcing. Q: Have talent constraints impacted your company’s growth and profitability As well as serving to meet skills demands over the past 12 months in the following ways? in different regions, international assignments are seen as critical in the development of well‑rounded talent, in the Direct costs 43% Our talent-rated expenses rose more than expected retention of key workers and development 31% We weren’t able to innnovate effectively of talent pipelines for the next decade. 29% We were unable to pursue a market opportunity Opportunity costs 24% We cancelled or delayed a key strategic initiative 24% We couldn’t achieve growth forecasts in overseas markets 24% We couldn’t achieve growth forecasts in the country where we were based 21% Our quality standards fell 0% 50% Base: All respondents 2012 (1,258).15 Source: PwC 15th Annual Global CEO Survey 2012.
  19. 19. Talent on the agenda In their efforts to address the talentTalent management has become a challenge, CEOs are increasingly choosingheadache for CEOs, with only 30% saying to integrate HR, talent and successionthat they have the talent they need to fulfiltheir future growth ambitions.7 planning, and global mobility programmes in particular, with business planning at the highest level. 78%Business leaders face a dual challenge:the short-term problem of acute skills’ Retaining the bestshortages in specific markets and With attrition rates in many regionsdisciplines, and the longer term concern very high, retaining talent has become a CEOs – making changes to theirof finding and developing the talent the priority; retention is a particular concern strategy for managing talentbusiness will need in the future. It’s hardly in Asia, where hiring levels and resignationsurprising, then, that talent management rates are almost twice that in the West,is right at the top of CEOs’ agendas. and the churn rate of high-performance Resignation rate by regionTwo‑thirds say that they plan to devote employees is also significantly higher.more attention to developing the talentpipeline and the future leaders of their 6% LATAMorganisation, and 78% said they expectedto see changes in the way their company 7% Western Europemanages talent in the near future. 8% US 9% UK“Our starting point is to have a human capital strategy that, asmuch as possible, pre-empts and mirrors our business strategy and 10% CEEbusiness plan. And that’s a challenge in itself.” 15% Asia-PacificRohana Rozhan, CEO,ASTRO Malaysia Holdings, Malaysia 0% 20%7 PwC 15th Annual CEO Survey Talent mobility – 2020 and beyond 16
  20. 20. CEOs have a new focus on retaining the Growing talent from within Adapt and survive best: two‑thirds say that it’s more likely There is a growing recognition that the The changing composition of the that talent in their organisation will best future leaders of today’s organisations workforce inevitably has consequences come from internal promotions in the must reflect the world in which they for assignment strategy, as does the fluid future. Mobility is increasingly being operate. International experience is concept of family. Employees may have recognised as playing an important role an essential part of their development; ailing parents to care for, and working in attracting, retaining and engaging despite the prevalence of technology that parents form an increasing proportion of talent. The challenge HR faces is in brings us all closer together, there’ll never the workforce; the proportion of female convincing organisations to look beyond be a substitute for experience gained on assignees has doubled over the past 10 the quantitative costs of international the ground. years, from 10% to 20%. Our projections assignments and to take a longer term view see this rising to 27% by 2020. of investment in talent mobility. The demand for home-grown future leaders is particular strong in Asia and, as a The emergence of a new approach result, many organisations are accelerating to mobility is a clear indication that the progress of high-potential employees organisations understand that one into leadership positions as they look to size doesn’t fit all when it comes to the future. The importance of mobility assignments. The preference of the in building up the experience of future individual employee will become a leaders is recognised by governments in major factor in mobility decisions, Asia as well as businesses; the Singaporean with employers flexing their strategy government, for example, is encouraging accordingly. The best mobility strategies local talent to gain international will be agile, adaptable and constantly experience in the hope that this will create evolving to meet the specific requirements a new generation of Singaporeans who of each generation and each group of will cement the country’s reputation as an employees, and the business as a whole. international business and financial hub in the next decade.17
  21. 21. “The evolution of senior leadership teams is going to continue.I think people will have to be more global in their perspective. Theywill have to understand the interconnectedness around the world.That’s going to be a very important element.”F William McNabb III, Chairman,President and CEO, The Vanguard Group Inc Talent mobility – 2020 and beyond 18
  22. 22. Managing millennials This trait is particularly pronounced in Millennials keep one eye on the job marketThe millennial generation, which will Asia, where job-hopping is fast becomingform the majority of the workforce by the norm. The resignation rate in Asia2020, has particular characteristics that currently stands at 15%, comparedemployers can’t afford to ignore. Theyexpect to burn through a number of with 6% in Latin America.8 This could deteriorate further in the future. Many 38% 43% 18%employers during their career and they’re millennials have made compromises tolooking for job satisfaction, fulfilment and get themselves into the marketplace overfast career progression. Their focus is on the past few years, which means that theinterest and opportunity rather than on chances of them moving on once bettermonetary awards. times arrive is higher than normal. 38% of I am always actively on I am not actively looking for I plan to stay in my current millennials said they’re on the lookout for the lookout for other another job, but would be job long‑term new opportunities, while a further 43% opportunities and keep an open to offers said they were not actively looking, but eye on the job market 1 would be open to offers.How many employers do you expect to have I would like to work outside my home country in my careerin your career? 4% 154% 2-5 North America and The Carribean Central and 69% Eastern Europe16% 6-9 Western 72% Asia Europe 9% 10+ 70% Middle 69% 3% None – I expect to work myself East 74%14% Don’t know Africa 0% 60% South and Central America 93%Base: All graduates 81% Australasia and Pacific Islands 76%8 Key Trends in Human Capital, 201219 Graduate respondents by current location
  23. 23. Where outside your home country would you most want to work (Top 20) The opportunity to travel and gather Australia firmly at the top of their wish new skills and experience is a strong list. And while over half said they would incentive for this generation and one many be willing to work in a less developed58% US employers are harnessing in their efforts country to further their career, only 11%48% to attract and retain the best. Millennials were willing to work in India and 2% in UK have a strong appetite for working abroad; mainland China – the same proportion39% Australia 71% of those questioned at the end of that are willing to work in Iran. 2011 said they wanted, and expected, an33% Canada overseas assignment during their career.32% Germany While this is excellent news for employers, the reality is a little more complex. When31% France asked where they would most like to work,28% Switzerland millennials placed the US, the UK and23% Japan23% Italy23% New Zealand “Let’s face it. There are 80 million Baby Boomers who are going to retire over the next five to seven years, and they’re going to22% Hong Kong be replaced by 40 million Generation Xers. That’s two to one,21% Singapore so you’d better be developing your next generation now if you’re20% Spain going to be ready for that transition.”19% Sweden Michael White, Chairman, President and CEO,16% Netherlands The Directv Group Inc16% Brazil16% Denmark14% Finland13% Norway13% Belgium 0% 70%Base: Those who like to work outside their home country Talent mobility – 2020 and beyond 20
  24. 24. 21
  25. 25. Future view Choice and flexibility Employee choice will become a critical Employee-driven assignments are byI would be willing to work in a less developed country in order to gain element in mobility strategy in the no means unusual, particularly whenexperience and further my career future, as employers recognise that an organisation is keen to retain key different groups of workers have talent. This is beginning to go beyond a different needs and preferences. By straight choice of assignment location, 7% adapting to the preferences and needs though to a more extreme lifestyle of different generations and groups of or circumstance-driven decision. If Strongly disagree 18% employees, organisations are likely to a valuable worker wants to live in a 34% Disagree bring about a fundamental change in particular country, modern technology the assignment duration, package type makes it possible, even if the work is Strongly agree and value. Also, allowing flexibility for elsewhere. And if an employer wants to Neither employees within a global framework, keep them, they’ll make it happen. 19% so that the individual can select the Agree assignment benefits of most value to It’s become increasingly clear that 22% them, the sense of employee ownership one size doesn’t fit all when it comes of the assignment increases, as well to employees and that’s also trueBase: All graduates as recognition of the investment the of mobility. Allowing assignees the organisation is making. flexibility to choose from a range of benefits that best meet their needs and The millennial generation is leading preferences and those of their family the way and many employers have (however they may define it – and already modified their global talent the definition is changing every year) mobility strategy specifically to increases the likelihood of a candidate“I expect to travel and my career will be more about appeal to this growing section of the accepting an assignment, of retainingenjoying the experience than earning money.” workforce. Some organisations are the employee at the end of the posting offering international experience to and maximising the investment made byFemale graduate employee, new recruits straight out of college, and the employer.Republic of Ireland one company PwC is working with has tailored its international assignment strategy to millennials by making overseas’ assignments available earlier, before they have family ties, and for shorter periods. Talent mobility – 2020 and beyond 22
  26. 26. The risks of modern mobility Western employers lose their appeal Highly skilled Chinese workers start to favour Workers from emerging economies domestic employers have historically placed a high value on 2007 education, experience and skills earned in the West. But not for much longer – by 2020, domestic multinationals in China, India and other emerging markets will match and even exceed Western multinationals in terms of remuneration 41% 9% and career development. This means that skilled workers from emerging economies will return home Would like to work for a Would like to work for a to exploit their new-found skills in the Western multinational Chinese employer lucrative domestic markets. Local workers with international experience are often 2010 far more attractive to domestic employers than foreign workers in the same market; we’ve already seen Brazilian organisations, 28% for example, that are more than willing to search for the best Brazilian workers overseas and tempt them home. These 44% returning locals can typically command better pay than their local counterparts, and an entirely new compensation structure is developing. HR professionals Would like to work for a Would like to work for a need to be prepared to manage the career Western multinational Chinese employer and remuneration expectations of these East–West–East pioneers. Source http://www.executiveboard.com23
  27. 27. Pressure on payEconomies, living standards and Focus on: Africacompensation levels are beginning toharmonise across the globe, although Africa has become one of the major The strong growth in Africa has Local employees: Generally, localthe transition won’t be easy. Pay scales in battlegrounds for large multinationals. inevitably exacerbated a skills’ shortage, nationals, these permanent employeesemerging markets are relatively low up to Natural resources have long been the and managerial and specialist workers receive a local compensation and benefitsa certain level, but salaries are beginning focus for organisations entering the are in very short supply. While the package in line with local marketto reflect the boom and the local salary African arena, but increasingly, investors region is rich in human capital – 40% practices.structures for executives may be higher are attracted to the fast‑growing of the population are under the age ofthan in mature markets. Higher pay, infrastructure and consumer 15 – there is a critical need for better ‘Local plus’ employees: A relativelysometimes combined with lower tax rates markets. Sectors on the rise include education and training. new group of employees are thesecreates local anomalies that have the telecoms, financial services, retail and returning nationals, who were oftenpotential to sabotage a multinational’s pharmaceuticals. A three-tiered compensation structure educated and/or gained work experienceassignment compensation strategy, is already evolving in some African in the West. This group can commandmaking the ‘local-plus’ pay approach Traditionally, Africa’s major business countries, particularly across central a premium local salary and othermore attractive. partners have been the US and Europe, Africa. This has previously been seen in benefits such as a housing subsidy and but in recent years investors from parts of Asia, most notably China, and educational benefits for their children.Separate remuneration policies for distant emerging markets – most notably that reflects the three emerging groupsgeographical locations will be a distant India and China – have moved into of employees: Global assignees: These designatedmemory by 2020. Instead, the standard the market, sometimes with more assignees of any nationality receivewill become an overarching global policy immediate success than their Western full allowances for the cost of living,system that’s aligned to the talent mobility counterparts. Organisations that were home leave, relocation benefits and taxstrategy. Some organisations have already built in emerging economies have been equalisation.adopted ‘destination pay’ and ‘local plus’ able to exploit the complex, uncertainremuneration methodologies across many and challenging African environmentof their locations, allowing employees to by applying the many lessons they havebe more quickly and easily deployed in a learned at home.cost-effective way. The definition of ‘plus’,though, will be flexible enough to allowemployers to be responsive to local marketconditions rather than a global mandate. Talent mobility – 2020 and beyond 24
  28. 28. The politicisation of immigration The economic turmoil of recent years, Pressure on HR And at the coalface, the workforce willThe acceleration of global mobility combined with political instability and The nature of global mobility has moved become increasingly diverse as mobilityis happening, it seems, in spite of unrest in many parts of the world, has well beyond its traditional form and the increases. This puts enormous pressure ongovernments in many regions, rather than pushed immigration up the political mobility function is no longer restricted HR and global mobility functions, skillsaided by it. We’ve long argued that those agenda. Borders have tightened in many to delivering services to assignees and and policies, which may struggle to keepcountries that facilitate the free movement regions, as some governments attempt other stakeholders; it will become a vital up with the pace of change.of labour are more likely to become the to restrict immigration in their response strategic tool that requires a predictivemost economically competitive. Those to low employment, while others bow to rather than reactive mindset. Moderncountries that recognise that their ageing concerns over national security. mobility has widened the demands placedworkforce will soon create a pressing need on the global mobility function, whichfor imported talent have already taken In a business world where organisations must now:the first steps towards lowering their will have to move people faster and moreimmigration barriers, and we predict that often, this increased politicisation of • manage compliance and riskmore countries will adopt less restrictive immigration is a problem. The political • deliver a good, or preferably excellent,immigration in the future. But it won’t be awareness to anticipate immigration assignee experience so the worker caneasy, as recent history has illustrated. changes will become an essential skill. concentrate on their new role We expect immigration issues to be one • understand, report on and of the major contributors to the increase manage costs in short-term assignments and business • make sure that the organisation travellers by 2020, as businesses navigate gets the best value for money and immigration requirements. In the longer report on the return on investment in a term, though, the clear economic benefits mobility programme that talent mobility brings will encourage • contribute to developing a sustainable greater collaboration between businesses talent supply and governments to remove some of • promote the rapid deployment of key the barriers. skills and talent • develop meaningful management information to aid business strategy and decisions • partner with the business, understand the wider business strategy and then develop effective communications, policies and processes to deliver the talent mobility strategy.25
  29. 29. “I believe organisations have to find their own solutions. We runa talent factory of 700 to 800 people here in India and we areworking on creating a global talent pool of about 100 people – 60of them from India and 40 from other countries – so that we cansend them anywhere across our operations. We hope to have thistalent pool ready within the next three years.”Baba Kalyani Chairman and Managing Director,Bharat Forge Ltd, India Talent mobility – 2020 and beyond 26
  30. 30. Creating a ‘modern mobility’ strategy As organisations align their global A closer eye on compliance The use of predictive analytics in HR is still mobility programmes more closely with The line between international in its relative infancy, but an increasing talent management and overall business assignments and business travel is number of organisations are beginning to strategy, a ‘new normal’ for mobility will becoming more blurred as time moves on. embrace the concept. The data is available, emerge. Mobility will encompass a broad This raises the question of whether it still but more sophisticated analysis would range of experiences, short and long term, makes sense to separate the management provide valuable trend information and project-based and assignee-led. It will of business travel and global mobility. the potential to identify risks. Predictive encompass virtual mobility and long-range In some organisations, business travel analysis is already commonly used in commuting, and play a vital role in the is managed by business units without other business functions such as sales and development of future leaders and the oversight from HR, and this represents an marketing, but our research suggests that retention of valued staff. increasing compliance risk. 95% of organisations have only an ad hoc approach to analytics in HR,9 if any at all. A borderless workforce Predicting trends This has to change. If companies are to become nimble enough Talent mobility will become an important to respond to unexpected changes, they strategic tool. The pressure on HR to Personalising mobility should see their workforce as essentially provide evidence and insight to support As organisations in many regions struggle borderless. That could mean developing mobility decisions will only increase in to source the talent they need, business talent where the jobs are, relocating the future, and this means developing leaders are focusing on specific groups talent to the jobs, or moving jobs closer a predictive way of thinking – and of the workforce and personalising their to sources of talent, within the constantly embracing the technical data techniques recruitment and retention strategies to shifting constraints of international that support it. suit them. Younger workers, older and immigration law. experienced employees and women are all seen as valuable sources of talent, provided Cultural and language differences can be employers can deliver the flexibility a significant hurdle when expanding into they need. new markets; the challenge for employers will lie in attracting and developing workers who are able to adapt and fit to an unfamiliar workplace.27 9 Key Trends in Human Capital 2012
  31. 31. Future view Delivering the experience up innovative relationships with other It’s clear that organisations need to companies to develop schooling, adapt their mobility programmes for medical facilities, shopping and lifestyle specific groups of employees, and amenities in hotspot locations, creating that a more personalised approach expatriate communities with the to mobility is developing. A natural services people need. Some businesses progression of this is that organisations are already partnering with the will concentrate more closely on making educational sector in a bid to improve the mobility experience – whatever the supply of specific skills that theyA single mobility programme won’t fit effectiveness of a mobility strategy. But the form it takes – as positive as possible for need.all and mobility strategy needs to be as longer term need to develop future talent, the assignee.flexible and tailored to the individual as and provide the international perspective The focus on the individual willwell as the business as any other area and experience that they need, is more We expect to see a rise in business-to- encourage innovation in the deliveryof talent management. For instance, difficult to measure. business collaboration in 2020 and of assignments, such as conciergethe pensions crisis in many countries beyond, as companies think about how services to ease the transition and livingsuggests that many from the Baby If employers are to maximise their to provides the infrastructure that arrangements of assignees, to betterBoomer generation will most likely seek investment in global assignments, they allows their employees to maintain out-of-office communications thatto continue working after retirement must establish clear expectations and an acceptable standard of living while provides 24-hour support. Led by theage, and their motivation in accepting performance measures. Regular feedback, also providing for long-term financial millennial generation, the boundariesan assignment will be based on the support and mentoring will not only security. We’ll see organisations strike between work and home will package and term. Millennials, help to disseminate the internationalon the other hand, will more likely favour knowledge gained by the assignee, butshort‑term and project-based assignments. reduce the chance of the mobile workerEmployees with families, or those caring resigning, once their assignment ends.for parents may turn down relocation, butembrace occasional commuting or virtual A top-class function in controlmobility techniques. The changes already underway in global mobility place ever-increasing demandsMeasure and monitor on the functions that must manage theWith talent management firmly on the programmes. The best organisations knowstrategic agenda, the appetite to measure that a strong global mobility strategy thatthe value and return on investment of has buy-in from the board and CEO, whichassignments will increase exponentially. supports the wider growth objectives andThe cost of international deployment business strategy and which is closelyremains a primary concern, as does tied to the management and developmentthe retention rate among returning of talent has become essential. Such anassignees in many countries. Of course, important task requires specific skillsthere’s pressure from stakeholders to and knowledge, and investment anddemonstrate a positive financial return development in the global mobilityon the investment in assignments and the function itself should be a priority. Talent mobility – 2020 and beyond 28
  32. 32. Conclusion The business world is in the midst of Economic transformation and • Have you built strong links between fundamental change and in 2020 and demographic changes have already had an the functions within the organisation, beyond, the ability of organisations to impact on talent supply and demand. The which are responsible for mobility, manage their global talent efficiently will emergence of a new generation of workers talent development, succession mark the difference between success and presents an entirely new set of challenges. planning and global resourcing? failure. We’re facing a world where the best Talent management will become a • Do senior stakeholders and the global and brightest talent are prepared to follow key strategic tool, which places great mobility function have a common their own agenda and opportunities, responsibility on the shoulders of HR. Are understanding of the main priorities? wherever they may be and irrespective of you up to the challenge? • How do you plan to manage the who is offering them. It’s a world where the millennial generation? Can you use strongest and most sustainable supply of How do these trends affect your their eagerness to travel to your talent is in the East, rather than the West, organisation? advantage? and a world where technology has changed • Have you mapped and tracked your • What reward and incentive model the very way we work. mobility needs to determine what skills is appropriate to meet the various you will need and when and where you needs across generations in your need them? organisation? • Do you have the right insight and data • Are your mobility policies and“We really do need to staff up local businesses with people from to determine where changes and/or processes forward looking, or mainlythose countries. It doesn’t make sense to have large numbers of investments may be necessary? reactive?expats working all round the world as it’s just very expensive, so we • Have you aligned your talent • What strategies do you have, to retain management strategy with the wider the employees you’ve invested in?have to train, we have to develop and we have to attract the right business strategy? • Is your HR function equipped to deallocal talent. For the most part these locations are in pretty wild with the challenges ahead?places. And now most professionals want to be in urban locations,particularly if they have families. So it’s an increasing challenge toinduce people to work in those difficult locations.”Tom Albanese, Chief Executive,Rio Tinto UK29
  33. 33. Talent mobility – 2020 and beyond 32
  34. 34. firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with close to 169,000 people who are committed to deliveringquality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information containedin this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the informationcontained in this publication, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone elseacting, or refraining to act, in reliance on the information contained in this publication, or for any decision based on it.© 2012 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see forfurther details.120816-094937-JB-OS (10/12).