hr & mobility challenges in emerging markets...mercer 10 g7 & e7 comparison g7 e7 gdp $31.7...

HR & MOBILITY CHALLENGES IN EMERGING MARKETS27 June 2012

Eleana Rodriguez, Principal & Market Business Leader, Canada

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HR & Mobility Challenges in Emerging MarketsOutline

Talent Mobility

Challenging Countries

Mobility Challenges

TALENT MOBILITY – Global & Canadian Business Contexts

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World Economic Forum (WEF)Talent Mobility

“The world is moving from capitalism to

talentism”

~ Klaus Schwab, Founder & Executive Chairman of the World Economic

Forum

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Why this issue? Why NOW?

Talent Employers

There is a clearmismatch between

What’sIN DEMAND

and

What’sAVAILABLE

in the global talent pool

Talent & Skills GapTalent & Skills Gap

205 million

unemployed globally

205 million

unemployed globally

Globally 34%

of employers can’t fill

available jobs

Globally 34%

of employers can’t fill

available jobs

Source: U.S. Department of Labor – Bureau of Labor Statistics; 2011 Gallup Employment Survey; Manpower Group’s 2011 Talent Shortage Survey

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Significant Talent Gaps Expected by 2020 and Beyond In Countries With No Talent Shortage Trend, Employability is the Challenge

Source: The Boston Consulting Group analysis

Strong talent shortage trend

Talent shortage trend

Low/no talent shortage trend

Strong employability challenge

Medium employability challenge

2010‐20 2010‐30

Talent Gap Trend

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Mercer WEF Research Identified Four Key Barriers to Talent Mobility

Widespread unemployabilityWidespread unemployability

Critical skills gapCritical skills gap

Information gapsInformation gaps

Public & private constraintsPublic & private constraints

Source: Mercer WEF Analysis

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Talent MobilityDefinition Must Expand to Fit the New Age of Talent Mobility

Talent Mobility:The physical movement of workers

within or across organizations,

industries or countries, and globally,

or the professional movement of

workers across occupations or skill

sets. Mobility may be temporary or

permanent and may also involve

moving people from unemployed to

employed, moving jobs to people or

allowing for virtual mobility.

Talent Mobility: tal·ənt mō·bil·ətē

The movement of workers between organizations or among locationsof an international organization

7

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Overview of Emerging MarketsGlobal GDP growth

• World GDP is forecasted to expand by 3.5% in 2012

• Advanced economies are expected to expand by 1.4% in 2012– United States: 2.1%– Eurozone: -0.3%– Japan: 2.0%

• Emerging and developing economies are expected to expand by 5.7% in 2012– Brazil: 3.0%– China: 8.2%– India: 6.9%– Mexico: 3.6%

Sou

rce:

IMF

WE

O U

pdat

e A

pril

2012

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G7 & E7

G7CanadaFrance

GermanyItaly

JapanUKUS

E7ChinaBrazilIndia

RussiaMexico

IndonesiaTurkey

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G7 & E7 Comparison

G7 E7GDP $31.7 trillion US GDP $13.1 trillion US10% of world’s population but highly productive 48% of world’s population

Large burden of aging populations/ workforce

Predominately young/working age population

Limited wage and income growth Growing middle income

Experience and specialized talent readily available at a price

Talent shortages at skilled/management level

Motivational challenges for next generation of workers

Developing education facilities and lack of experienced skills

High labor costs High salary increase rates may reduce the relative labor cost advantage

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The Demise of Expatriates?Many Organizations are Increasing Their Use of Expatriates

Source: Mercer’s Worldwide Survey of International Assignment Policies and Practices, 2010

47% 47%

28% 36%

25% 17%

Worldwide Asia Pacific

Decreasing use of expatriates

No marked change

Increasing use of expatriates

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Where are the Expatriates Located?

Africa4%

Eastern Europe

5%

Latin America

5%

Middle East22%

Asia Pacific

28%Western Europe

19%

North America

17%

Source: Mercer’s Worldwide Survey of International Assignment Policies and Practices, 2010

HR & MOBILITY CHALLENGES IN EMERGING MARKETS

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Mercer’s North American Survey Panel

• Complimentary, topical polls for Mercer compensation survey participants

Survey Panel Benefits 2012 Topics

• Attraction and retention• Pay and performance• Leadership assessment and

Development• ….and more

• Up-to-date topical data • Consistent participant base of the

market’s “key” clients • Quick polls with real time results on

current issues

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Industry Profile

2%2%2%2%2%2%2%2%2%2%2%2%2%

4%4%4%4%4%4%

6%6%6%

10%10%

12%

0% 2% 4% 6% 8% 10% 12% 14%

Business/Professional ServicesComputer and E lectronic Products

ConstructionElectrical Equipment, Appliance and Component

EntertainmentHospitality/Restaurant

Insurance - OtherMedical Equipment and Supplies

Real EstateTelecommunications

Transportation and WarehousingTransportation Equipment - Auto Parts

Utilities - OtherAgriculture, Forestry, Fishing and Hunting

BankingDurable Goods, Miscellaneous

MachineryPublic Administration - Local/Municipal Government

RetailOil and Gas Downstream

Transportation Equipment - AerospaceUtilities - Energy

Mining/Milling/Smelting (except Oil & Gas)Services - Other or Combination

Oil and Gas Upstream

Source: Mercer Survey Panel – HR & Mobility Challenges of Emerging Markets - 2011

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Ownership Profile

Public60%

Private30%

Not-for-profit10%


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Revenue Profile

21%

4%

25%

15%

23%

13%

Under 50 million50 million < 100 million100 million < 500 million500 million < 1 billion1 billion < 5 billionOver 5 billion


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Organization Size

11%

26%

15%

19%

30%

Less than 100100 to 500501 to 1,0001,001 to 5,000Over 5,000


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Business Development in Emerging Markets

64%

36%

YesNo


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Most Challenging Countries

10% 10% 10% 10%

14%

24%

29%

38%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Argentina Brazil Kazakhstan United ArabEmirates

Tanzania Russia India China


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HR Challenges for Local Nationals

4%

17%

30%

35%

43%

70%

74%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other (please specify):

Competing with larger localcompanies or governmental

agencies for resources

Establishing appropriatebenefits plans

Availability of talent withrequired managerial or people

skills

Establishing appropriatesalary structures

Availability of talent withrequired technical skills

Dealing with local labor laws


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HR Challenges for Expatriates

10%

19%

24%

33%

33%

33%

52%

67%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Establishing pension and healthinsurance coverage

Determining appropriate mix ofexpatriates and local nationals

Assisting with tax compliance

Determining incentives such aspremiums and hardship

Assisting with work permits

Addressing equity issues betweenexpatriates and local nationals

Establishing competitive policiesto attract and retain expatriates

Attracting the right candidates


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HR Policies for Local Nationals

26%

22%

30%

17%

4%

0%

5%

10%

15%

20%

25%

30%

35%

Manage programscentrally

Manage programsregionally

Manage programlocally

Rely on consultants Rely on other third-party


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Satisfaction With Policies for Local Nationals

0%

61%

39%

0% 10% 20% 30% 40% 50% 60% 70%

Very satisfied

Satisfied, but need to finetune

Still trying to put in place


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Satisfaction with Policies for Expatriates

9%

64%

27%

0% 10% 20% 30% 40% 50% 60% 70%

Very satisfied

Satisfied, but need to finetune

Still trying to put in place


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KEY TAKEAWAYS

Attracting the right talent was cited as the greatest expatriate challenge

China, India and Russia were cited as the three most challenging emerging countries

Talent mobility today means more than international assignments

The global landscape is changing from capital to talent

Most Canadian firms feel that their policies need fine -tuning

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Mobility Event Registrants’ Key Challenges in Managing Assignees

• Most frequently cited:– Internal equity/consistency/compliance (6)– Immigration/tax issues (5)– Cost management (3)

• Other issues cited:– Balance expat expectations with need to control costs– Repatriation– Mobility service provider selection

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Mobility Event Registrants’ Roundtable Topics

• Internal equity/consistency/compliance

• Balance expat. expectations with need to control costs

• Repatriation

• Mobility service provider selection

• Tax compliance

• Global trends – mining industry

• Adjusting policies for emerging market assignees

• Payroll management in Canada for expats waiting for work permits in foreign markets

• “Local plus” package design

QUESTIONS

+1 416‐868‐2871

Eleana Rodriguez

[email protected] (Canada) Limited

hr & mobility challenges in emerging markets...mercer 10 g7 & e7 comparison g7 e7 gdp $31.7...

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