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ManpowerGroup Fresh Perspectives


                                      Moving People to Work: Leveraging
                                      Talent Mobility To Address the Talent
                                      Mismatch in the Human Age



The world has entered a “new normal”—a post-                           agent of economic growth. ManpowerGroup identified
recession business environment in which organizations                  this new era as the Human Age, and it will demand
have to do more with less, and are forced to compete                   that the world rethinks national policies and corporate
more rigorously to find the best talent. Complicating                  business models to ensure that organizations have
matters are the demographic trends: Working-age                        access to the skilled talent they need.
populations in developed countries are declining
                                                                       Even amid high unemployment, employers are
faster than replacement rates, constraining supply
                                                                       struggling to find people with the precise skills or
amidst increasing demand. And while the economies
                                                                       combination of skills they need. ManpowerGroup
of emerging markets such as Indonesia and Brazil are
                                                                       research indicates that 34 percent of employers
booming, their education and training systems are
                                                                       worldwide are having trouble filling key positions
generally failing to supply enough skilled individuals
                                                                       (Figure 1). As the economy continues to recover, it will
to sustain their growth. The result of these trends is a
                                                                       only get harder to put the right people with the right
global skills shortage and talent mismatch.
                                                                       skills in the right place at the right time (Figure 2). As
At the same time, epic shifts in business dynamics are                 Jean Charest, Premier of Quebec, has put it, “We are
converging: for many companies and countries, talent                   entering the era of unparalleled talent scarcity, which, if
is replacing capital as the key competitive differentiator.            left unaddressed, will put a brake on economic growth
As “talentism” becomes the new “capitalism,” human                     around the world, and will fundamentally change the
potential will be the catalyst for change and the major                way we approach workforce challenges.”1


  FIGURE 1. TRENDS IN DIFFICULTY FILLING JOBS DUE TO LACK OF AVAILABLE TALENT
  Compared to last year at this time, the proportion of employers reporting difficulty filling jobs has increased by
  three percentage points – this is the highest percentage since 2007.

  45%
                                  41%
              40%
  40%


  35%                                                                                                                     34%
                                                           31%                                    31%
                                                                              30%
  30%


  25%

              2006                2007                  2008                  2009                  2010                  2011

                                                                                                             Source: ManpowerGroup



                                   Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age   1
2    Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age


In the Human Age, talent mobility—moving people                            national borders to balance supply and demand in the
to where the work is—must be one component of                              labor market. “Global mobility of talent is becoming
a coordinated public-private response to the talent                        as critical as the global mobility of goods and capital,”
mismatch. While the topic is a political lightning rod                     according to a recent report from the World Economic
in this period of continuing high unemployment, it’s                       Forum.2 The point here is that talent mobility is not the
important to recognize that talent mobility is a proven                    only answer. Along with education and innovation, it’s
way to address many pressing business needs. And                           one crucial component of a long-term approach—one
talent mobility is not solely about bringing in foreign                    that will take careful planning and new thinking on the
workers; it’s also about moving domestic talent within                     part of both policy-makers and business leaders.

    FIGURE 2. SIGNIFICANT TALENT GAPS EXPECTED BY 2020 AND BEYOND
    In countries with no talent shortage trend, employability is the challenge




    Talent Gap Trend 2010-2030
     Strong talent shortage trend
     Talent shortage trend
     Low/No talent shortage trend
     Strong employability challenge
     Medium employability challenge

                                                                                                         Source: World Economic Forum

Organizations Must Be Pro-Active                                           are an effective professional-development approach,
                                                                           as international experience becomes an increasingly
In the Human Age, companies must align their talent                        important requirement for future business leaders.
strategies with their business strategies to ensure
                                                                           Given all that, it’s no surprise that skilled talent is ready
that they have the right people in place to grow
                                                                           and willing to move. ManpowerGroup’s new Migration
and succeed. Business leaders must rethink old
                                                                           for Work Survey finds that six in 10 employees would
assumptions about work models, people practices
                                                                           consider relocating for a job, including 25 percent who
and talent sources. They can expand their internal
                                                                           would consider permanent relocation. Among those
talent pools via retraining or by reaching into pools
                                                                           surveyed who would be willing to relocate, 32 percent
of talent with skills adjacent to those in demand.3
                                                                           would be prepared to relocate anywhere in their
But they should also figure out how talent mobility
                                                                           current country and 30 percent would go anywhere
programs can support their business goals. In the
                                                                           in the world. And while the recession has clearly
short term, for example, in countries such as the
                                                                           impeded individuals’ ability to relocate for work (i.e.
U.S., Japan and the U.K., where there is a shortage
                                                                           not being able to sell current house or pay relocation
of nurses, healthcare organizations have offset those
                                                                           costs) 27 percent of employees surveyed said they
shortages by recruiting nurses across international
                                                                           are more willing to move for work since the recession
borders. Over the long term, talent-mobility programs
                                                                           (Figure 3).4 These findings highlight the importance
for both companies and countries alike to “brand”                      As they consider their strategic skills planning,
themselves as talent destinations if they want to                      business leaders should think about how talent
become more attractive to potential employees in                       mobility factors into their efforts to attract, engage
their respective regions and around the world.                         and retain key employees. Internal talent mobility
                                                                       programs—international rotations, projects and


  FIGURE 3. WILLINGNESS TO RELOCATE FOR WORK SINCE THE GLOBAL RECESSION
  27 percent of people are more willing to relocate for work since the global recession




                                                                                             19%
                   27%
                More willing to relocate
                                                                                          Less willing to relocate




                                                                                             54%
                                                                                        About the same willingness
                                                                                                to relocate



                                                                                                             Source: ManpowerGroup


transfers, for example—can enhance the employer’s                      the right match of international candidates. Consider
brand even as they promote collaboration, cohesion                     this example: A global technology company was
and cross-pollination of ideas. Sourcing talent across                 facing internal pressure to reduce its server-
international borders has the added benefit of sparking                maintenance costs and back-end delivery operations
innovation, promoting diversity and introducing new                    in Asia. One option was to offshore back-end support
perspectives—all important to companies that operate                   functions to another country. However, the tech
across borders where familiarity with local markets and                company didn’t want to invest the considerable
social customs is vital.                                               resources it would have taken to establish its
Of course, integrating an effective talent mobility                    offshore presence, nor did it want to lose daily
program into a broader talent strategy is complicated.                 oversight of the back-end operations. Working with
To work, the program has to encompass the full                         ManpowerGroup’s Borderless Talent Solutions, the
gamut of recruitment processes—planning, sourcing,                     company was able to bring in qualified IT engineers
attraction, assessment, selection—and do it in                         who spoke the local language from several countries
compliance with international visa and other legal                     across Asia. In addition, the ManpowerGroup solution
requirements. Clearly, there are logistics and cultural                addressed the visa, housing and cultural barriers often
acclimation to consider: relocation, local orientation,                associated with work migration to the home country.
company on-boarding and other types of care.                           ManpowerGroup delivered an innovative workforce
Fraught with complexities though this process is,                      solution that helped the client achieve its goals.
investing resources in this effort will pay off in a
workforce that powers growth and success.
ManpowerGroup Solutions engages a five-phase
process led by a single point of contact to ensure
consistency and continuity in providing clients with


                                   Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age   3
4   Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age



Government’s Role                                                         Over the long term, governments should work with
                                                                          business to address the imbalance in supply and
In response to devastating and persistent                                 demand of skills in a sustainable way. This starts with
unemployment, many developed countries have                               analysis of the skills needed, now and in the future.
adopted policies that restrict the import of both skilled                 Common competency definitions are important here
and unskilled labor. Though understandable on an                          for both analysis and certification. A national skills
emotional level, these policies are short-sighted.                        registry would be invaluable in measuring supply and
They ignore the expert consensus that migration—                          demand, and more broadly, businesses, governments
when managed strategically—can stimulate global                           and educational institutions—the key stakeholders—
economic growth and development.5 Protectionist                           need to agree on common global standards on skills
policies make it almost impossible for employers to fill                  and availability to facilitate movement across borders.
critical positions now and will surely inhibit growth in                  Finally, stakeholders need to invest in the right kind of
the future. In the short term, many companies need                        training. Business should be granted incentives and
people with skills that aren’t easy to develop quickly—                   credits to invest in developing talent locally and
nurses and engineers, for example—and strategic                           should collaborate with academic institutions to
migration is the most expedient way to fill those                         make sure schools are providing the training the
roles. In the long term, the effect of these policies can                 marketplace needs.
be paralyzing. Political leaders will find that it’s a lot
harder to loosen restraints on migration than it was to                                                   
tighten them. As The Economist has noted, “When the
                                                                          The dawn of the Human Age demands that the
world economy emerges from the doldrums, some
                                                                          collective group of stakeholders collaborate to find
countries that have passed legislation restricting the
                                                                          new, innovative ways to operate in a world where
ability of local companies to hire foreigners may find
                                                                          people with the right skills are the scarce resource and
themselves lacking the flexibility that migrants bring.”6
                                                                          “talentism” is supplanting capitalism. When a third of
Countries need to reexamine their immigration                             employers globally cannot fill positions, it’s imperative
policies to remove barriers to flexibility and foster                     that stakeholders expand their view of talent sources
mobility policies that enable organizations to match                      and incorporate strategies for attracting individuals
talent supply and demand and help labor markets                           with needed skills from across international borders.
function better. But they need to do this in a way that                   Business and national competitiveness depend on
demonstrates sensitivity to the social implications                       this. To win in the increasingly volatile world of work,
both at home and in the employees’ nations of origin,                     all stakeholders must work together to find sustainable
though it should be noted that the OECD has found                         ways to unleash human potential—no matter where it
a tendency for long-term migrants—particularly                            comes from.
highly skilled individuals—to return to their nations of
                                                                          REFERENCES
origin.7 The World Economic Forum offers a series                         World Economic Forum, Global Talent Risk - Seven
                                                                          1

of recommendations that include creation of a new                         Responses, 2011
category of short-term visa targeting the highly
                                                                          2
                                                                              Ibid.
                                                                          3
                                                                            ManpowerGroup, Teachable Fit, 2010.
skilled with fast turnaround and less bureaucracy and                     4
                                                                            ManpowerGroup, Migration for Work Survey, 2010.
collaboration between host and sending countries to                       5
                                                                            OECD, The Global Competition for Talent: Mobility of the Highly
                                                                          Skilled, 2008.
ensure that the countries of origin can benefit from
                                                                          6
                                                                           The Economist, People Protectionism: Rich countries respond to
knowledge sharing.8 As the OECD notes, “Shorter                           the economic downturn by trying to limit the flow of migrants, 2009.
(and potentially repeated) periods abroad may avoid                       7
                                                                              OECD, op. cit.
some of the obstacles that currently hinder mobility,                     8
                                                                              World Economic Forum, op. cit.
and would support knowledge flows associated with
                                                                          9
                                                                           World Economic Forum, Stimulating Economies through Fostering
                                                                          Talent Mobility, 2010.
brain circulation….”9

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Manpower Group Talent Mobility White Paper Jun2011

  • 1. ManpowerGroup Fresh Perspectives Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age The world has entered a “new normal”—a post- agent of economic growth. ManpowerGroup identified recession business environment in which organizations this new era as the Human Age, and it will demand have to do more with less, and are forced to compete that the world rethinks national policies and corporate more rigorously to find the best talent. Complicating business models to ensure that organizations have matters are the demographic trends: Working-age access to the skilled talent they need. populations in developed countries are declining Even amid high unemployment, employers are faster than replacement rates, constraining supply struggling to find people with the precise skills or amidst increasing demand. And while the economies combination of skills they need. ManpowerGroup of emerging markets such as Indonesia and Brazil are research indicates that 34 percent of employers booming, their education and training systems are worldwide are having trouble filling key positions generally failing to supply enough skilled individuals (Figure 1). As the economy continues to recover, it will to sustain their growth. The result of these trends is a only get harder to put the right people with the right global skills shortage and talent mismatch. skills in the right place at the right time (Figure 2). As At the same time, epic shifts in business dynamics are Jean Charest, Premier of Quebec, has put it, “We are converging: for many companies and countries, talent entering the era of unparalleled talent scarcity, which, if is replacing capital as the key competitive differentiator. left unaddressed, will put a brake on economic growth As “talentism” becomes the new “capitalism,” human around the world, and will fundamentally change the potential will be the catalyst for change and the major way we approach workforce challenges.”1 FIGURE 1. TRENDS IN DIFFICULTY FILLING JOBS DUE TO LACK OF AVAILABLE TALENT Compared to last year at this time, the proportion of employers reporting difficulty filling jobs has increased by three percentage points – this is the highest percentage since 2007. 45% 41% 40% 40% 35% 34% 31% 31% 30% 30% 25% 2006 2007 2008 2009 2010 2011 Source: ManpowerGroup Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age 1
  • 2. 2 Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age In the Human Age, talent mobility—moving people national borders to balance supply and demand in the to where the work is—must be one component of labor market. “Global mobility of talent is becoming a coordinated public-private response to the talent as critical as the global mobility of goods and capital,” mismatch. While the topic is a political lightning rod according to a recent report from the World Economic in this period of continuing high unemployment, it’s Forum.2 The point here is that talent mobility is not the important to recognize that talent mobility is a proven only answer. Along with education and innovation, it’s way to address many pressing business needs. And one crucial component of a long-term approach—one talent mobility is not solely about bringing in foreign that will take careful planning and new thinking on the workers; it’s also about moving domestic talent within part of both policy-makers and business leaders. FIGURE 2. SIGNIFICANT TALENT GAPS EXPECTED BY 2020 AND BEYOND In countries with no talent shortage trend, employability is the challenge Talent Gap Trend 2010-2030 Strong talent shortage trend Talent shortage trend Low/No talent shortage trend Strong employability challenge Medium employability challenge Source: World Economic Forum Organizations Must Be Pro-Active are an effective professional-development approach, as international experience becomes an increasingly In the Human Age, companies must align their talent important requirement for future business leaders. strategies with their business strategies to ensure Given all that, it’s no surprise that skilled talent is ready that they have the right people in place to grow and willing to move. ManpowerGroup’s new Migration and succeed. Business leaders must rethink old for Work Survey finds that six in 10 employees would assumptions about work models, people practices consider relocating for a job, including 25 percent who and talent sources. They can expand their internal would consider permanent relocation. Among those talent pools via retraining or by reaching into pools surveyed who would be willing to relocate, 32 percent of talent with skills adjacent to those in demand.3 would be prepared to relocate anywhere in their But they should also figure out how talent mobility current country and 30 percent would go anywhere programs can support their business goals. In the in the world. And while the recession has clearly short term, for example, in countries such as the impeded individuals’ ability to relocate for work (i.e. U.S., Japan and the U.K., where there is a shortage not being able to sell current house or pay relocation of nurses, healthcare organizations have offset those costs) 27 percent of employees surveyed said they shortages by recruiting nurses across international are more willing to move for work since the recession borders. Over the long term, talent-mobility programs (Figure 3).4 These findings highlight the importance
  • 3. for both companies and countries alike to “brand” As they consider their strategic skills planning, themselves as talent destinations if they want to business leaders should think about how talent become more attractive to potential employees in mobility factors into their efforts to attract, engage their respective regions and around the world. and retain key employees. Internal talent mobility programs—international rotations, projects and FIGURE 3. WILLINGNESS TO RELOCATE FOR WORK SINCE THE GLOBAL RECESSION 27 percent of people are more willing to relocate for work since the global recession 19% 27% More willing to relocate Less willing to relocate 54% About the same willingness to relocate Source: ManpowerGroup transfers, for example—can enhance the employer’s the right match of international candidates. Consider brand even as they promote collaboration, cohesion this example: A global technology company was and cross-pollination of ideas. Sourcing talent across facing internal pressure to reduce its server- international borders has the added benefit of sparking maintenance costs and back-end delivery operations innovation, promoting diversity and introducing new in Asia. One option was to offshore back-end support perspectives—all important to companies that operate functions to another country. However, the tech across borders where familiarity with local markets and company didn’t want to invest the considerable social customs is vital. resources it would have taken to establish its Of course, integrating an effective talent mobility offshore presence, nor did it want to lose daily program into a broader talent strategy is complicated. oversight of the back-end operations. Working with To work, the program has to encompass the full ManpowerGroup’s Borderless Talent Solutions, the gamut of recruitment processes—planning, sourcing, company was able to bring in qualified IT engineers attraction, assessment, selection—and do it in who spoke the local language from several countries compliance with international visa and other legal across Asia. In addition, the ManpowerGroup solution requirements. Clearly, there are logistics and cultural addressed the visa, housing and cultural barriers often acclimation to consider: relocation, local orientation, associated with work migration to the home country. company on-boarding and other types of care. ManpowerGroup delivered an innovative workforce Fraught with complexities though this process is, solution that helped the client achieve its goals. investing resources in this effort will pay off in a workforce that powers growth and success. ManpowerGroup Solutions engages a five-phase process led by a single point of contact to ensure consistency and continuity in providing clients with Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age 3
  • 4. 4 Moving People to Work: Leveraging Talent Mobility To Address the Talent Mismatch in the Human Age Government’s Role Over the long term, governments should work with business to address the imbalance in supply and In response to devastating and persistent demand of skills in a sustainable way. This starts with unemployment, many developed countries have analysis of the skills needed, now and in the future. adopted policies that restrict the import of both skilled Common competency definitions are important here and unskilled labor. Though understandable on an for both analysis and certification. A national skills emotional level, these policies are short-sighted. registry would be invaluable in measuring supply and They ignore the expert consensus that migration— demand, and more broadly, businesses, governments when managed strategically—can stimulate global and educational institutions—the key stakeholders— economic growth and development.5 Protectionist need to agree on common global standards on skills policies make it almost impossible for employers to fill and availability to facilitate movement across borders. critical positions now and will surely inhibit growth in Finally, stakeholders need to invest in the right kind of the future. In the short term, many companies need training. Business should be granted incentives and people with skills that aren’t easy to develop quickly— credits to invest in developing talent locally and nurses and engineers, for example—and strategic should collaborate with academic institutions to migration is the most expedient way to fill those make sure schools are providing the training the roles. In the long term, the effect of these policies can marketplace needs. be paralyzing. Political leaders will find that it’s a lot harder to loosen restraints on migration than it was to    tighten them. As The Economist has noted, “When the The dawn of the Human Age demands that the world economy emerges from the doldrums, some collective group of stakeholders collaborate to find countries that have passed legislation restricting the new, innovative ways to operate in a world where ability of local companies to hire foreigners may find people with the right skills are the scarce resource and themselves lacking the flexibility that migrants bring.”6 “talentism” is supplanting capitalism. When a third of Countries need to reexamine their immigration employers globally cannot fill positions, it’s imperative policies to remove barriers to flexibility and foster that stakeholders expand their view of talent sources mobility policies that enable organizations to match and incorporate strategies for attracting individuals talent supply and demand and help labor markets with needed skills from across international borders. function better. But they need to do this in a way that Business and national competitiveness depend on demonstrates sensitivity to the social implications this. To win in the increasingly volatile world of work, both at home and in the employees’ nations of origin, all stakeholders must work together to find sustainable though it should be noted that the OECD has found ways to unleash human potential—no matter where it a tendency for long-term migrants—particularly comes from. highly skilled individuals—to return to their nations of REFERENCES origin.7 The World Economic Forum offers a series World Economic Forum, Global Talent Risk - Seven 1 of recommendations that include creation of a new Responses, 2011 category of short-term visa targeting the highly 2 Ibid. 3 ManpowerGroup, Teachable Fit, 2010. skilled with fast turnaround and less bureaucracy and 4 ManpowerGroup, Migration for Work Survey, 2010. collaboration between host and sending countries to 5 OECD, The Global Competition for Talent: Mobility of the Highly Skilled, 2008. ensure that the countries of origin can benefit from 6 The Economist, People Protectionism: Rich countries respond to knowledge sharing.8 As the OECD notes, “Shorter the economic downturn by trying to limit the flow of migrants, 2009. (and potentially repeated) periods abroad may avoid 7 OECD, op. cit. some of the obstacles that currently hinder mobility, 8 World Economic Forum, op. cit. and would support knowledge flows associated with 9 World Economic Forum, Stimulating Economies through Fostering Talent Mobility, 2010. brain circulation….”9