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New report predicts increase in global assignments

A new report produced by PwC has predicted an increase in overseas assignments, up to 50% by 2020.

The PwC ‘Talent Motility 2010 and Beyond’ report predicts that growth will be due to ambitious companies wanting growth in emerging markets.

 

The study also reported that over 2/3 or graduates would like an international assignment during their career.

The trend for interest in overseas placements is positive and matches the trend with employers to reach new markets abroad. The challenge however is matching the employee with the location. India and China are markets which many companies would like to achieve growth in, only 11% of those surveyed are willing to work in India however and only 2% in mainland China.

For companies trying to reduce their global mobility costs, new forms of global mobility may be considered for example project based assignments, mobile working, virtual mobility or long-distance commuting. Increasing the options for working in overseas markets should mean that this increased flexibility will be able to meet fast changing company needs for an international workforce.

Other trends reported included an increase in short-term assignments, as well as being used to fill a skills gap / shortage, they can also be used for the employee to gain experience which they can then bring home and use in their home market. The traditional three or four year assignment is likely to become less and less popular as other global mobility forms begin to emerge and become more prevalent.

In addition, women are increasingly taking up overseas posts, it is expected that this figure will rise to 25% by 2020. Intra-country mobility is also predicted to increase as the number of ‘globally mobile employees’ rises.

A demographic trend for HR Directors and HR Managers to bear in mind is that the world’s urban population is increasing. Therefore the emergence of new commercial centres e.g. in Brazil, India – will mean that a workforce may be required in new cities.

Challenges for HR Directors and Managers over the next few years are likely to involve tax and immigration hurdles as well as controlling mobility costs. The tax and immigration barriers should start to decrease over time as countries take steps to become more business friendly as they realise the value of attracting talent to their economy.

900 companies and HR Directors were interviewed for the report worldwide. Further information can be found here: http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/global-mobility-map.jhtml

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