Global jaunts not giving businesses value for money, claims PwC

BY Fraser Tennant

Businesses investing millions sending their employees on assignments across the globe may not be getting value for money, according to a new Modern Mobility report by PwC.

The report, which draws on a survey of 200 global executives, states that six in 10 organisations believe that their global mobility programs do not represent a worthwhile return on investment.

Additionally, PwC predicts that the number of people undertaking global assignments will jump 50 percent by 2020, despite only a paltry 8 percent of global organisations currently being able to accurately calculate the cost of their mobility programs.

Clare Hughes, a director in PwC’s global mobility team, said “It’s not surprising that organisations are expecting a jump in the number of people that are globally mobile – it is a great way for businesses to fill skills gaps, enter high growth markets, attract employees and develop their people. For some businesses, international experience is now a must-have for anyone taking on a leadership position.”

The PwC report also warns that HR teams across the globe are being forced to operate with meagre resources, lacking the investment and infrastructure information they require to tackle the evolving business landscape, as well as the know-how to effectively manage the increasing number of globally mobile employees.

Ms Hughes continued: “Organisations’ failure to measure the cost and value of their programmes will cost them dearly in the long run. Many businesses risk wasting considerable money sending the wrong people to the wrong places, overpaying for expats when local talent is available in-country or offering large financial packages when people are more motivated by the development opportunity.

“Businesses need to have a clear global mobility strategy which is based on growth priorities and what skills they are going to need and where, backed up by plans on how they are going to source, deploy, manage and motivate employees who work internationally.”

Providing extra food for thought, the PwC report, while noting that nine in 10 organisations say they are looking to increase the number of their globally mobile employees over the next two years, three in 10 admit they aren’t sure how many of their employees actually work overseas each year.

Report: Moving people with purpose – modern mobility survey 2014

Working in South Africa

Following abuse of previous corporate immigration rules in South Africa, the government has recently implemented a program of reform. However, despite the changes, the situation remains tense.

FW speaks with Angelika Yakovchuk at WerthSchröderInc Attorneys about developments in corporate immigration in South Africa.

10Questions: Corporate immigration in South Africa

Mexico’s immigration reform

In recent years, the Mexican approach to corporate immigration has been drastically altered by the implementation of the 2012 Immigration Reform Act.

FW speaks with Juan Carlos Aguilar Noble at Fragomen Mexico, S. de R.L. de C.V., about developments in corporate immigration in Mexico.

10Questions: Corporate immigration in Mexico

Canada emphasises home-grown talent

For a number of years, Canada has recognised the importance of immigration to its economic and cultural development. However, the country’s immigration principles place significant importance on employing home talent first – temporary foreign workers should be a last resort, and are generally viewed as a temporary solution to shortages in the labour market.

FW speaks with Howard Greenberg, a partner at KPMG, about corporate immigration in Canada.

10Questions: Corporate immigration in Canada

Skills gap hampers recruitment efforts

BY Matt Atkins

A PwC report suggests businesses are planning a recruitment drive in the next 12 months as growth approaches pre-2008 levels. Organisations in the emerging markets are expected to make the most net hires, particularly in the Middle East, South East Asia and China. The most active sectors are expected to be business services, insurance and technology.

Despite this positive outlook, business leaders are worried about filling the roles they need most. Almost two-thirds of firms (63 percent) are concerned about the availability of candidates with the right skills, a 5 percent increase on 2013. CEOs in Africa, South East Asia and South Africa are particularly alarmed by the lack of skills. Technology and engineering firms are feeling the brunt of the problem.

This skills gap is only expected to increase, causing continuing headaches for emerging nations. For the past few years, large multinationals have been busy cherry-picking the best talent from these regions. In countries such as China and India, where wages are increasing and working conditions improving, employees are beginning to favour domestic employers. However, western firms are now widening their search for new talent into Indonesia, Vietnam and the Philippines.

Business leaders are looking to the authorities to do more to help to plug the skills gap. Two in five CEOs say creating a skilled workforce should be a government priority and over half believe regulation is hampering their efforts to attract talent.

However, the overwhelming majority of business leaders believe they need to change their approach to attracting and retaining talent, though the majority have yet to do so.

“Business leaders are looking for people with a far wider range of skills than ever before,” says Michael Rendell, global HR consulting leader at PwC. “Gone are the days of life-time careers; chameleonlike employees who apply their skills whenever and wherever they’re needed are now in high demand. Businesses need to get out of the mindset that new skills equals new people. The most successful organisations will combine recruitment with developing their own people to be more adaptable to its changing plans.”

Report: The talent challenge: Adapting to growth