A recent PwC report – Talent Mobility 2020 shows that in the next 10 years companies will have a greater need to deploy their talent around the world, and as a consequence, international assignment levels and overall mobility will increase significantly. Having access to the best talent continues to be a challenge for CEOs and business leaders – with 97% of CEOs in PwC’s annual global CEO survey saying that having the right talent is the most critical factor for their business growth. In addition, 79% of CEOs said they would be changing their strategies for managing talent as a result of the downturn – and 55% said they would look to change their approach to global mobility including international secondments. In the wake of a foreseeable upturn, the winners and losers of the next decade will be defined by those who are able to attract, retain, and deploy their key talent globally. The sentiments outlined above are well aligned with PwC’s key findings:
• Assignee levels have increased by 25% over the last decade; PwC predicts a further 50% growth in assignments by 2020. There will be more assignees, more business travel, more virtual tools, and especially more quick, short-term, and commuter assignments.
• The growing importance of emerging markets will create a significant shift in mobility patterns, as skilled employees from emerging markets increasingly operate across their home continent and beyond, creating greater diversity in the global talent pool.
• Mobility strategies will need to become more sophisticated and complex as organizations meet growing deployment demands, while simultaneously managing the very different needs and expectations of three generations of workers.
• Governments and regulators will accept the economic benefits of talent mobility to stimulate economic growth. This acceptance will lead to greater collaboration between governments and businesses, and within the business community, to remove some of the barriers to mobility around the world.
• The millennial generation will view overseas assignments as a rite of passage, an outlook that will change the way workers and organizations approach overseas opportunities in the future.
• Organizations will adopt “destination pay and local plus” remuneration methodologies as compensation levels across some skill sets and industries will begin to harmonise across the globe.
• Technology will play a key role in global working arrangements and help to support compliance obligations; however technology will not erode the need to have people deployed “on the ground”.
The nature of overseas assignments has changed significantly since the 1970s. Businesses, like the population, seam to continue adjusting their operations, nature and geographic location of the workforce, as well as their fundamental structure and roles.
How an organisation responds to these rapid changes will be critical. Business and mobilisation strategies will need to progress quickly to keep ahead of both changes in the organisation’s geographic landscape, and the further increases in assignee numbers that will result. The winners of 2020 will be those companies that adjust their strategies now.
For details see PwC’s report