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Talent mobility
2020 and beyond
The future of mobility in a
globally connected world
Background
Our globally connected world and your business
The year 2020, which once seemed so
distant, is approaching rapidly. The
future promises to look very different,
particularly in the way the global
workforce is sourced, organised and
managed; an explosion of activity and
business growth potential in emerging
markets has already contributed to
a significant increase in the need for
companies to move people and source
talent from around the world. Talent
mobility is in the grip of radical change
and in this report we investigate the
emerging trends, what they mean for
talent, mobility and resourcing strategies,
and the urgent need for alignment with
wider business growth plans and strategy.
1 Managing tomorrow’s people: The future of work to 2020, PwC
2 PwC’s 15th Annual Global CEO Survey, 2012
3 Millennials at work: Reshaping the workplace, PwC, 2011
We’ve drawn from several sources in
producing this report:
• Information from our database
representing 900 companies that have
been surveyed on assignment trends
over the past 20 years.
• Findings from scenario planning
studies for our Managing tomorrow’s
people series, which explored the
future of work to 2020.1
• Results from PwC’s annual global
CEO survey.2
• Findings from PwC’s 2011 survey of
millennials, which resulted in more
than 4,300 responses.3
• Interviews with PwC talent mobility
specialists supported by the views
of several global organisations from
around the world.
Our conclusions paint a business world
that’s far removed from that of today.
Talent and mobility strategies will need
to progress significantly to keep pace with
this change and the further increases in
mobile employee numbers we expect to
see. We’re not yet consigning existing
models for international assignments
to the history books, but the changes
underway surely call for a radical rethink.
“The demographic changes that we see occurring in many of the
regions where we operate – shrinking populations, an ageing
workforce and diversifying demographics – compound the
challenges we face and intensify the war for talent.”
Dr Rüdiger Grube Chairman and CEO,
Deutsche Bahn AG, Germany
Contents
Executive summary 1
A changing world – the next decade 5
Populations change and shift 6
Urban populations on the rise 7
Future view: New cities 9
The nature of work in 2020 10
Modern mobility 11
Mobility, but not as we know it 11
Future view: Mobility without moves 13
Mobility in financial services 14
Managing modern mobility 15
Talent on the agenda 16
Retaining the best 16
Growing talent from within 17
Adapt and survive 17
Managing millennials 19
Future view: Choice and flexibility 22
The risks of modern mobility 23
Western employers lose their appeal 23
Pressure on pay 24
Focus on Africa 24
The politicisation of immigration 25
Pressure on HR 25
Creating a ‘modern mobility’ strategy 27
Future view: Delivering the experience 28
Conclusion 29
Executive summary
The world in 2020 and beyond
The business world is changing rapidly
and this has transformed the way the
global workforce is sourced, organised and
managed. Knowledge, trade, technology,
capital and goods are more globally
connected than ever before.
Explosive growth in emerging markets is
creating a huge increase in the number
of employees working outside their home
location and critical shortages in talent
in specific markets and disciplines have
pushed mobility up the boardroom agenda.
“We’re deploying our assets and operations in a more flexible
manner so that we can control costs not only with regard to
predictable business cycles, but also to cope with unpredictable
macro-economic events.”
Jouko Karvinen, CEO,
Stora Enso Oyj
1
But this isn’t mobility as it’s been
understood in the past; this is modern
mobility and it brings its own unique set
of challenges:
• More mobility – but not as
we know it. Assignee levels have
increased by 25% over the past decade;
we predict a further 50% growth in
mobile employees by 2020. But the
era where assignments meant a three
or four-year relocation followed by
a return home is coming to an end.
New forms of global mobility have
developed in response to business
demands and employee preferences,
many of which don’t involve
relocation at all.
• New talent, new destinations.
The growing importance of emerging
markets has created a significant
shift in mobility patterns. Skilled
employees from emerging markets are
increasingly in demand at home and
abroad. Domestic multinationals are
increasingly attractive to local talent.
delivery of the mobility experience and
the underpinning career promise (or
‘deal’) will become more critical in the
future as new, unfamiliar and often less
desirable locations come into play.
• Giving people what they want.
Mobility opportunities are now
recognised as a key element in
attracting, retaining, developing and
engaging talent. This is particularly
true of the millennial generation; 71%
say they want and expect an overseas
assignment during their career. But as
the workforce becomes more diverse
this inevitably affects global mobility
strategies. The number of female
assignees, for example, has doubled
in the past 10 years from 10% to 20%.
The preferences and expectations
of mobile employees will have to be
carefully managed in the next decade.
• Bringing down the political
barriers. Businesses need to move
and deploy people quickly, but tax,
social security and immigration
requirements often stand in their
way. Politics and political unrest
are constantly shifting the barriers
to mobility and any global mobility
strategy needs to be nimble enough
to react quickly to changes. By 2020,
governments and regulators will need
to accept the economic benefits of
talent mobility to stimulate economic
growth. This acceptance smooths the
way to greater collaboration between
governments and businesses to remove
some of the barriers to mobility
around the world.
• More sophisticated programmes.
As we look forward, mobility strategies
will need to be more sophisticated
to deal with growing deployment
demands, while simultaneously
managing the very different needs
and expectations of three generations
of workers. The best mobility
strategies will be agile, adaptable and
constantly evolving to meet the specific
requirements of the business and
different groups of employees.
• Powered by technology. Technology The mobile population in large organisations is increasing
will play a key role in global working
arrangements and help to support
compliance obligations; however,
technology will not erode the need to
200 50%
Average number growth
25% growth
have people deployed ‘on the ground’. of mobile
employees1
• Mobility functions rising to the 0 100 200 300 400 500
challenge. The pressure on HR to 1998 2009 2020
provide evidence and insight to support
mobility decisions and to manage 1. 2020 projection: As the business model of an organisation evolves from multinational to international to global,
programme costs will only increase in the mix shifts accordingly (from 80% of mobile employees from HQ to 60% from HQ to 40% from HQ). Numbers
the future, and this means developing continue to increase and the definitions of mobility have broadened – even with increasing numbers, costs may
be flat due to changes in package design and focus on lower cost alternatives. Mobile employee type mix has
a predictive way of thinking – and evolved from 50% executive to 10% executive.
embracing the analytical techniques
Source: PwC international mobility database – sample 900 companies
that support it.
How will your business operate in this new Companies are hosting mobile employees in more countries than ever before
environment? What talent will you need, The average number of host locations supported by a global organisation continues to rise
to compete, and how will you safeguard
your talent pipeline for the long term?
And how will you align your Mobility,
Global Resourcing and Talent Management
1998 13 50%
growth
2009 22
strategies with wider business strategy?
The winners of 2020 and beyond will 2020 33
be those companies that adjust their 5 10 15 20 25 30 35
0
strategies now. Average number of host locations per organisation
Source: PwC international mobility database – sample 900 companies
Talent mobility – 2020 and beyond 2
Three eras of international assignments

1970–1990
International assignments are mostly driven by large
multinationals based in the US and Europe. These
organisations send talent from the HQ country out into
the field to manage operations in other parts of the
world. Many assignments are from the US into Europe,
but oil and gas, mining and other industries dependent
on natural resources regularly send staff to more
far‑flung destinations. Assignees are usually sent off
for a two to five-year period and are incentivised with
attractive expatriate packages.

1990–2010
Demand for global mobility of talent increases as new
markets emerge for companies to sell their products
and services to, and also manufacture their goods
at lower cost. Offshoring gathers pace. A new breed
of mobile worker emerges alongside the expatriate
and meets the globalisation demand through
commuter, rotational, and technology-enabled virtual
assignments. The flow of talent is still predominantly
from West to East, or intracontinental, but companies
begin to tap into rich talent pools in emerging markets,
particularly India and China.

3
Future view
2020
Global mobility continues to grow in volume. Within
the context of closely aligned international regulatory
frameworks, the growth of cross-border acquisitions by
sovereign wealth funds, lingering public investments in
private business concerns, greater security cooperation
between nations, and information technology that
can identify and connect talent in an instant, global
mobility becomes part of the new normal. Mobility of
talent is fluid. For example, a Chinese company may
engage a European team to manage an investment
in Africa.

“We try to avoid overseas assignments just to fill a gap, but

sometimes you just can’t avoid it.”

Marijn Dekkers, Chairman,

Bayer AG

Talent mobility – 2020 and beyond 4

A changing world – the next decade

The global marketplace is a constantly shifting

landscape and in recent years the primary
development has been a steady but relentless
migration of economic power from West to
East. Over the coming decades, demographic
changes and economic forces will combine
to transform the business landscape
still further. New centres of growth will
emerge; Western multinationals are already
struggling to compete with new and dynamic
multinationals from emerging economies in
the fiercely competitive battlegrounds of Africa
and Latin America. The next decade promises
to be even more testing.

5
Populations change and shift Proportion of the world population aged 60 years or more Median age
A combination of population changes and 2011 2050
25%
an ageing workforce in many countries,
World
and the evolution of country-based 21% 26 36
20%
multinationals into truly global entities
15% years years
has created a fundamental change in how
and where business is carried out. A sharp 10%
8% 10%
growth in international mobility is a clear Lowest median age
5%
consequence of this, as organisations
Yemen Niger
work hard to make sure that they have the (15 years) (20 years)
people they need, where they need them.
Highest median age
These demographic shifts are intensifying. 1950 2000 2050
The ageing workforce and impending Japan Spain
retirement of the baby-boomer generation Source: UN report World Population Ageing 1950–2050 (41 years) (55 years)
will pose serious challenges for most
developed countries and even some Investment in education in Asia and Africa
emerging markets such as China. By 2015, is creating a steady stream of talented
one‑third of China’s population will be youngsters who will increasingly be in
over the age of 50 and annual workforce demand at home and abroad. At the same
growth will be less than 5%. In India, by time, the population of Europe is in steady
contrast, over half of the population is decline. These are serious challenges that
under the age of 30. multinational organisations must face if
they are to succeed in the future.

Talent mobility – 2020 and beyond 6

 Urban populations on the rise
The world urban population is
expected to increase by 72% by
2050, from 3.6 billion in 2011 to
6.3 billion in 2050. By mid-century
the world urban population will
whose population is projected to Urban and rural population trends 1950–2050
increase from 2.7 billion in 2011 to
5.1 billion in 2050. Over the same
6,000
period, the rural population of the
less developed regions is expected
to decline from 3.1 billion to 2.9 5,000

likely be the same size as the billion. In the more developed

Population (millions)
world’s total population was in regions, the urban population is 4,000

2002. Virtually all of the expected projected to increase modestly,

growth in the world population from 1 billion in 2011 to 1.1 billion 3,000
will be concentrated in the urban in 2050.
areas of the less developed regions, 2,000

1,000
World urban population

0
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

More developed regions – Urban population

More developed regions – Rural population
Less developed regions – Urban population
Less developed regions – Rural population

72% The world urban population is expected

to increase by 72% by 2050
Increase

Source: World Urbanization Prospects: 2011 Revision, produced by the UN

Department of Economic and Social Affairs

7
Population of urban centres with 10 million inhabitants or more
Rank – 2011 Rank – 2025

Population Population
1. Tokyo, Japan 37.2 1. Tokyo, Japan 38.7
2. Delhi, India 22.7 2. Delhi, India 32.9
3. Ciudad de México (Mexico City), Mexico 20.4 3. Shanghai, China 28.4
4. New York, USA 20.4 4. Mumbai, India 26.6
5. Shanghai, China 20.2 5. Ciudad de México (Mexico City), Mexico 24.6
6. São Paulo, Brazil 19.9 6. New York, USA 23.6
7. Mumbai, India 19.7 7. São Paulo, Brazil 23.2
8. Beijing, China 15.6 8. Dhaka, Bangladesh 22.9
9. Dhaka, Bangladesh 15.4 9. Beijing, China 22.6
10. Kolkata, India 14.4 10. Karachi, Pakistan 20.2
11. Karachi, Pakistan 13.9 11. Lagos, Nigeria 18.9
12. Buenos Aires, Argentina 13.5 12. Kolkata, India 18.7
13. Los Angeles, USA 13.4 13. Manila, Philippines 16.3
14. Rio de Janeiro, Brazil 12.0 14. Los Angeles, USA 15.7
15. Manila, Philippines 11.9 15. Shenzhen, China 15.5
16. Moskva (Moscow), Russian Federation 11.6 16. Buenos Aires, Argentina 15.5
17. Osaka-Kobe, Japan 11.5 17. Guangzhou, China 15.5
18. Istanbul, Turkey 11.3 18. Istanbul, Turkey 14.9
19. Lagos, Nigeria 11.2 19. Al-Qahirah (Cairo), Egypt 14.7
20. Al-Qahirah (Cairo), Egypt 11.2
20. Kinshasa, Democratic Rep. of the Congo New 14.5
21. Guangzhou, China 10.8
21. Chongqing, China New 13.6
22. Shenzhen, China 10.6
22. Rio de Janeiro, Brazil 13.6
23. Paris, France 10.6
23. Bangalore, India New 13.2
24. Jakarta, Indonesia New 12.8
25. Chennai, India New 12.8
26. Wuhan, China New 12.7
“37 cities will have 10million 27. Moskva (Moscow), Russian Federation 12.6
or more citizens by 2025. 28. Paris, France 12.2
29. Osaka-Kobe, Japan 12.0
The number with more than 30. Tianjin, China New 11.9
20million citizens will double.” 31. Hyderabad, India New 11.6
32. Lima, Peru New 11.5
33. Chicago, USA New 11.4
34. Bogotá, Colombia New 11.4
35. Krung Thep (Bangkok), Thailand New 11.2
Source:United Nations, Department of Economic and
36. Lahore, Pakistan New 11.2
Social Affairs, World Urbanization Prospects,
The 2011 Revision 37. London, United Kingdom New 10.3

Talent mobility – 2020 and beyond 8

Future view

New cities
Population shifts will have a strong 10 million. It’s estimated that Wuhan’s
influence on where organisations will economy is growing at an annual rate
do business over the coming decades. of over 12% and that GDP will double
Much of the population growth over within five years.
the next 30 years will be concentrated
around urban areas in emerging China is not alone – a similar pattern is
economies as these countries begin to emerging in Brazil, India and Mexico,
mirror developed economies. Today, for albeit at a slower rate. The emergence
example, in developed countries 75% of new commercial centres away from
of the population live in urban areas capital cities will create a new demand
and this will rise to 84% by 2030; in for domestic mobility in the next decade
less developed regions only 40% live in as well as difficult challenges for HR –
urban areas today, but this will increase such as whether ambitious employees
to 56% by 2030. will see assignments to newer cities in
their home economy as a step backward.
China’s growth means that new urban
centres are constantly evolving.
New cities are initially selected by
the government, which through tax
incentives and grants creates a fertile
site for companies. Housing, schools and
hospitals soon follow and a new thriving
city, ripe for multinationals, is born. One
of the newest is Wuhan, 750 miles inland
from Shanghai, with a population of

9
The nature of work in 2020
In the longer term, economic, social and
demographic forces are steadily leading
towards a fundamental change in the way
we work, and in the way corporations
organise their workforce. We’ve predicted
that modern trends will help to create
a future where tensions exist between
fragmentation and consolidation and
between collectivism and individualism.
We speculated that three possible business
approaches coexist,4 each impacting on
a company’s strategy for dealing with
talent issues.
2020: three worlds Fragmentation
‘Orange World’, where businesses are
fragmented and companies are small and
nimble, relying on an extensive network of
suppliers. Companies have multiple clients
and contracts and they routinely supplement
their workforce with a globally diverse network
of ‘team workers’ – technologically savvy,
networked employees who are contracted
on a supply and demand basis, anywhere in
the world.
Collectivism Individualism

Each of these scenarios calls for a unique ‘Green World’, where companies have
approach to talent management and to developed a powerful social conscience that’s
closely tied to their brand. Their focus is on
global mobility, which will place specific sustainable and ethical business practice and
demands on HR and business. they attract employees with values that reflect
their own. Their success is largely driven by
a high degree of employee engagement. This
impacts business decisions about mobility and
the way employees work.
‘Blue World’, where corporations are king
and individual preferences override belief
in collective social responsibility. These
companies have invested heavily in the talent
pipeline and believe in developing people as
assets and take a paternal approach to their
workforce. While the work is pressurised and
fast-paced, employees are committed, well
trained and more likely to remain with a single
employer long-term.

Integration

4 Managing Tomorrow’s People: How the downturn will change the future of work Talent mobility – 2020 and beyond 10
Modern mobility
Mobility is evolving from a straightforward
transfer of skills to a far more complex
concept, designed to address a diverse set
of business needs:
• The need to develop well-rounded
leaders of the future, with a truly
international perspective.
• The need to offer exciting career
opportunities to the best talent as
competition to attract and retain the
best intensifies.
• The recognition that an organisation
can benefit from a two-way transfer
of knowledge, skills and experience
– every market is a fertile ground for
new ideas.
• The recognition that in an increasingly
international world where key roles
often have a regional perspective
and travel is relatively painless, the
idea of a ‘home’ country is becoming
less relevant.
11
Organisations are innovating in their
approach to global mobility, partly through
necessity as they adapt to the requirements
of the changing business world and partly
to adapt to the preferences of different
generations of employees.
Mobility, but not as we know it
The critical need for companies to shore
up skills in particular disciplines, regions
and projects is creating a sea-change
in international assignments. Where
assignments were typically ‘duration
based’ e.g. for three to five years,
followed by a return to headquarters
or home location, short-term ‘purpose-
based’ assignments are becoming
increasingly popular.
The main priority for organisations is that
they have the right skills in the right place
at the right time. How that’s done is set
to become a more fluid concept, driven
by strategic need but also by the desire
to optimise the investment in a mobility
programme. Many more mobility solutions
are developing, designed for tomorrow’s
business realities:
Short-term assignments, often lasting
a year or less have become more popular;
20% of assignments now last less than 12
months, compared with 10% in 2002.5
Short-term assignments are generally more
appealing to younger workers who want
to broaden their experience than to those
with families, as disruption is minimised.
The (generally) lower costs simultaneously
make short-term assignments appealing
to employers.
Project-based assignments.
Organisations are bringing selected
employees from different parts of the
organisation together for a specific project,
requiring some to relocate temporarily,
or travel frequently while the work is
carried out.
5 PwC Global Mobility Effectiveness Survey 2012
Commuting and extended
business travel allows assignees to work
in a specific location without relocating
and has become a viable alternative to
relocation for employees with family
commitments, and in roles that require
extensive travel by their nature.
Intra-country mobility is on the rise
as organisations look to maximise their
investment in mobility. It may be easier
and more effective, for example, for a
company to transfer skilled workers from
Shenzen to Huangshan or from Mumbai to
Ahmadabad, than to move workers from
the US or other mature markets.
Rotational employee programmes,
often used in the development of
high‑potential employees and in specific
industries, are becoming increasingly
internationalised.
Reverse transfers, where top
performers from emerging markets are
moved into developed markets, usually on
a short-term assignment, to gain valuable
experience and skills.
Global nomads. Regional leaders often
find that their role requires extensive
business travel and as a result they are
constantly on the move. Similarly, some
specialists move from project to project
to the extent that they effectively have no
‘home’ country.
One-way relocation, as organisations
move their regional or global headquarters
in order to be closer to business interests
and the fastest-growing markets, meaning
the permanent relocation of key managers
and their families.
Contingent labour is increasingly being
used by organisations to meet short-term
and specialist demand.
Virtual mobility is the final piece in
the jigsaw. Technological innovation
has allowed employers to bring the best
people, wherever they may be, to work and
train together.
Mobility is evolving, but this greatly
increases the complexity of managing
a global mobility programme that
may involve a diverse selection of
approaches and in an environment
where organisations need to move
talent quickly, as well as monitoring the
risk and compliance, costs and return
on investment.
Talent mobility – 2020 and beyond 12
 Future view
Mobility without moves
Many of the new approaches to global
mobility have an element in common –
the lack of relocation. Organisations are
questioning whether, in this connected
society, there’s a pressing need for a
worker to physically relocate for their
work: Does the employee need to be in a
particular location all the time? Or just
when they need to be?
The best candidates for overseas
assignments may not be ready or willing
to relocate, so alternatives to traditional
mobility such as virtual meetings and
commuting are an efficient way of
making sure that the best skills are
made available. Extended business
travel and short-term, as-needed visits
are an effective way of moving skills
where they need to be and often make
the most sense for roles that require
extensive travel anyway. Overall,
assignees (in the traditional sense)
represent 1% of the global workforce,
but our latest figures suggest that mobile
workers, encompassing these new
forms of non-traditional movement,
account for between 7% and 8% of the
working population.6
6 PwC Global Mobility Effectiveness Survey, September 2012
13
Long-distance commuting, on a weekly
or monthly basis, is no longer seen as
unusual and potentially, has no limits
– it’s not strange, for instance, for key
employees to fly regularly between
California and China. Increasingly,
employers are leaving the choice of
where to live to the individual worker,
but this leaves significant challenges for
the HR function, which must make sure
that immigration and tax compliance
requirements and duty of care
obligations to the employee - for example
healthcare and security - are met.
The main impetus for mobility without
moves is not necessarily cost control, as
short-term assignments and commuting
are often expensive once per diem
rates, accommodation and travel are
taken into account. And there are other
risks to manage such as the perception
that a commuting worker is not fully
committed to either location, and
the challenge of keeping a travelling
employee engaged.
Mobility in financial services
The fast-emerging markets of South
America, Asia, Africa and the Middle
East are widely seen as more important
than developed markets to the future of
the financial services industry as these
markets continue to expand.
It’s estimated that China’s banking
sector will overtake the US by 2023, and
that India will become the third largest
domestic banking sector, behind China,
by 2050. By the same year, the leading
emerging economies of China, India,
Russia, Brazil, Turkey, Mexico and
Indonesia will have banking assets and
profits that exceed that of the G7.
We already see a more systematic and
centralised approach to assignment
management emerging including
a new emphasis on shorter, more
targeted, purpose‑based assignments.
And looking forward to the future,
organisations are making extensive
use of talent mapping, forecasting
and analytics to improve their talent
management strategy and align it more
closely with the wider business plan.

Financial services firms may have

ambitious growth targets, but a
shortage of talent in key areas and
regions could hold them back.

Talent mobility – 2020 and beyond 14

Managing modern mobility
As the best companies work to align
their global mobility programmes more
closely with business planning and talent
management, the goal is to react with
greater agility as the world’s economic
growth engines continue to shift, the
population ages and a new generation of
employees takes over.
In practice, this means looking beyond
the traditional concerns of logistics,
compensation and tax issues, and aligning
global mobility more closely to talent,
succession planning and global resourcing.
As well as serving to meet skills demands
in different regions, international
assignments are seen as critical in the
development of well‑rounded talent, in the
retention of key workers and development
of talent pipelines for the next decade.
15
Global mobility functions and HR This will be particularly important for
professionals have always held employers in emerging markets, most
responsibility for addressing the notably in parts of Asia, who are relatively
regulatory, compensation and tax issues new to the management of global mobility
associated with global mobility, and and who perhaps lack the sophisticated
for developing the relevant policies global mobility functions of their
and streamlined processes needed for competitors in developed economies.
assignees and the organisation itself.
But as talent management becomes
strategically critical, their role will take on
a new level of importance.
Talent constraints are imposing tangible costs on global companies
Q: Have talent constraints impacted your company’s growth and profitability
over the past 12 months in the following ways?
Direct
costs 43% Our talent-rated expenses rose more than expected
31%
We weren’t able to innnovate effectively
29%
We were unable to pursue a market opportunity
Opportunity
costs
24% We cancelled or delayed a key strategic initiative
24% We couldn’t achieve growth forecasts in overseas markets
24% We couldn’t achieve growth forecasts in the country where we were based
21% Our quality standards fell
0% 50%
Base: All respondents 2012 (1,258).
Source: PwC 15th Annual Global CEO Survey 2012.
Talent on the agenda
Talent management has become a
headache for CEOs, with only 30% saying
that they have the talent they need to fulfil
their future growth ambitions.7
Business leaders face a dual challenge:
the short-term problem of acute skills’
shortages in specific markets and
disciplines, and the longer term concern
of finding and developing the talent the
business will need in the future. It’s hardly
surprising, then, that talent management
is right at the top of CEOs’ agendas.
Two‑thirds say that they plan to devote
more attention to developing the talent
pipeline and the future leaders of their
In their efforts to address the talent
challenge, CEOs are increasingly choosing
to integrate HR, talent and succession
planning, and global mobility programmes
in particular, with business planning at the
highest level.
78%
Retaining the best
With attrition rates in many regions
very high, retaining talent has become a CEOs – making changes to their
priority; retention is a particular concern strategy for managing talent
in Asia, where hiring levels and resignation
rates are almost twice that in the West,
and the churn rate of high-performance Resignation rate by region
employees is also significantly higher.
6% LATAM

organisation, and 78% said they expected

to see changes in the way their company
7% Western Europe

manages talent in the near future.

8% US

9% UK

“Our starting point is to have a human capital strategy that, as

much as possible, pre-empts and mirrors our business strategy and 10% CEE

business plan. And that’s a challenge in itself.”

15% Asia-Pacific

Rohana Rozhan, CEO,

ASTRO Malaysia Holdings, Malaysia 0% 20%

7 PwC 15th Annual CEO Survey Talent mobility – 2020 and beyond 16
 CEOs have a new focus on retaining the
best: two‑thirds say that it’s more likely
that talent in their organisation will
come from internal promotions in the
future. Mobility is increasingly being
recognised as playing an important role
in attracting, retaining and engaging
talent. The challenge HR faces is in
convincing organisations to look beyond
the quantitative costs of international
assignments and to take a longer term view
of investment in talent mobility.
17
Growing talent from within
There is a growing recognition that the
best future leaders of today’s organisations
must reflect the world in which they
operate. International experience is
an essential part of their development;
despite the prevalence of technology that
brings us all closer together, there’ll never
be a substitute for experience gained on
the ground.
The demand for home-grown future
leaders is particular strong in Asia and, as a
result, many organisations are accelerating
the progress of high-potential employees
into leadership positions as they look to
the future. The importance of mobility
in building up the experience of future
leaders is recognised by governments in
Asia as well as businesses; the Singaporean
government, for example, is encouraging
local talent to gain international
experience in the hope that this will create
a new generation of Singaporeans who
will cement the country’s reputation as an
international business and financial hub in
the next decade.
Adapt and survive
The changing composition of the
workforce inevitably has consequences
for assignment strategy, as does the fluid
concept of family. Employees may have
ailing parents to care for, and working
parents form an increasing proportion of
the workforce; the proportion of female
assignees has doubled over the past 10
years, from 10% to 20%. Our projections
see this rising to 27% by 2020.
The emergence of a new approach
to mobility is a clear indication that
organisations understand that one
size doesn’t fit all when it comes to
assignments. The preference of the
individual employee will become a
major factor in mobility decisions,
with employers flexing their strategy
accordingly. The best mobility strategies
will be agile, adaptable and constantly
evolving to meet the specific requirements
of each generation and each group of
employees, and the business as a whole.
“The evolution of senior leadership teams is going to continue.
I think people will have to be more global in their perspective. They
will have to understand the interconnectedness around the world.
That’s going to be a very important element.”

F William McNabb III, Chairman,

President and CEO, The Vanguard Group Inc

Talent mobility – 2020 and beyond 18

Managing millennials
The millennial generation, which will
form the majority of the workforce by
2020, has particular characteristics that
employers can’t afford to ignore. They
expect to burn through a number of
employers during their career and they’re
looking for job satisfaction, fulfilment and
fast career progression. Their focus is on
interest and opportunity rather than on
monetary awards.
1
This trait is particularly pronounced in Millennials keep one eye on the job market
Asia, where job-hopping is fast becoming
the norm. The resignation rate in Asia
currently stands at 15%, compared
with 6% in Latin America.8 This could
deteriorate further in the future. Many 38% 43% 18%
millennials have made compromises to
get themselves into the marketplace over
the past few years, which means that the
chances of them moving on once better
times arrive is higher than normal. 38% of I am always actively on I am not actively looking for I plan to stay in my current
millennials said they’re on the lookout for the lookout for other another job, but would be job long‑term
new opportunities, while a further 43% opportunities and keep an open to offers
said they were not actively looking, but eye on the job market
would be open to offers.

How many employers do you expect to have I would like to work outside my home country in my career
in your career?

4% 1
54% 2-5
North America
and The Carribean Central and

69%
Eastern Europe

16% 6-9 Western 72% Asia

Europe

9% 10+ 70% Middle

69%
3% None – I expect to work myself
East

74%
14% Don’t know Africa

0% 60%
South and Central
America
93%
Base: All graduates 81%
Australasia and
Pacific Islands

76%
8 Key Trends in Human Capital, 2012

19 Graduate respondents by current location

Where outside your home country would you most want to work (Top 20) The opportunity to travel and gather Australia firmly at the top of their wish
new skills and experience is a strong list. And while over half said they would
incentive for this generation and one many be willing to work in a less developed
58% US employers are harnessing in their efforts country to further their career, only 11%
48% to attract and retain the best. Millennials were willing to work in India and 2% in
UK
have a strong appetite for working abroad; mainland China – the same proportion
39%
Australia
71% of those questioned at the end of that are willing to work in Iran.
2011 said they wanted, and expected, an
33% Canada overseas assignment during their career.
32% Germany While this is excellent news for employers,
the reality is a little more complex. When
31% France asked where they would most like to work,
28% Switzerland millennials placed the US, the UK and

23% Japan
23% Italy
23% New Zealand “Let’s face it. There are 80 million Baby Boomers who are going
to retire over the next five to seven years, and they’re going to
22% Hong Kong be replaced by 40 million Generation Xers. That’s two to one,
21%
Singapore
so you’d better be developing your next generation now if you’re
20%
Spain
going to be ready for that transition.”
19% Sweden Michael White, Chairman, President and CEO,
16% Netherlands The Directv Group Inc
16% Brazil
16% Denmark
14% Finland
13% Norway
13% Belgium
0% 70%

Base: Those who like to work outside their home country

Talent mobility – 2020 and beyond 20

21
 Future view
Choice and flexibility
Employee choice will become a critical
I would be willing to work in a less developed country in order to gain element in mobility strategy in the
experience and further my career future, as employers recognise that
different groups of workers have
different needs and preferences. By
7% adapting to the preferences and needs
of different generations and groups of
Strongly disagree
18% employees, organisations are likely to
34%
Disagree bring about a fundamental change in
the assignment duration, package type
Strongly agree
and value. Also, allowing flexibility for
Neither employees within a global framework,
19%
so that the individual can select the
Agree
assignment benefits of most value to
22%
them, the sense of employee ownership
of the assignment increases, as well
Base: All graduates
as recognition of the investment the
organisation is making.
The millennial generation is leading
the way and many employers have
already modified their global talent
mobility strategy specifically to
“I expect to travel and my career will be more about appeal to this growing section of the
enjoying the experience than earning money.” workforce. Some organisations are
offering international experience to
Female graduate employee, new recruits straight out of college, and
Republic of Ireland one company PwC is working with has
tailored its international assignment
strategy to millennials by making
overseas’ assignments available earlier,
before they have family ties, and for
shorter periods.
Employee-driven assignments are by
no means unusual, particularly when
an organisation is keen to retain key
talent. This is beginning to go beyond a
straight choice of assignment location,
though to a more extreme lifestyle
or circumstance-driven decision. If
a valuable worker wants to live in a
particular country, modern technology
makes it possible, even if the work is
elsewhere. And if an employer wants to
keep them, they’ll make it happen.
It’s become increasingly clear that
one size doesn’t fit all when it comes
to employees and that’s also true
of mobility. Allowing assignees the
flexibility to choose from a range of
benefits that best meet their needs and
preferences and those of their family
(however they may define it – and
the definition is changing every year)
increases the likelihood of a candidate
accepting an assignment, of retaining
the employee at the end of the posting
and maximising the investment made by
the employer.
Talent mobility – 2020 and beyond 22
The risks of modern mobility

Western employers lose their appeal Highly skilled Chinese workers start to favour
Workers from emerging economies domestic employers
have historically placed a high value on
2007
education, experience and skills earned
in the West. But not for much longer
– by 2020, domestic multinationals in
China, India and other emerging markets
will match and even exceed Western
multinationals in terms of remuneration
41% 9%
and career development.

This means that skilled workers from

emerging economies will return home
Would like to work for a Would like to work for a
to exploit their new-found skills in the
Western multinational Chinese employer
lucrative domestic markets. Local workers
with international experience are often 2010
far more attractive to domestic employers
than foreign workers in the same market;
we’ve already seen Brazilian organisations,

28%
for example, that are more than willing
to search for the best Brazilian workers
overseas and tempt them home. These
44%
returning locals can typically command
better pay than their local counterparts,
and an entirely new compensation
structure is developing. HR professionals
Would like to work for a Would like to work for a
need to be prepared to manage the career
Western multinational Chinese employer
and remuneration expectations of these
East–West–East pioneers.

Source http://www.executiveboard.com

23
Pressure on pay
Economies, living standards and
Focus on: Africa
compensation levels are beginning to
harmonise across the globe, although
Africa has become one of the major The strong growth in Africa has Local employees: Generally, local
the transition won’t be easy. Pay scales in
battlegrounds for large multinationals. inevitably exacerbated a skills’ shortage, nationals, these permanent employees
emerging markets are relatively low up to
Natural resources have long been the and managerial and specialist workers receive a local compensation and benefits
a certain level, but salaries are beginning
focus for organisations entering the are in very short supply. While the package in line with local market
to reflect the boom and the local salary
African arena, but increasingly, investors region is rich in human capital – 40% practices.
structures for executives may be higher
are attracted to the fast‑growing of the population are under the age of
than in mature markets. Higher pay,
infrastructure and consumer 15 – there is a critical need for better ‘Local plus’ employees: A relatively
sometimes combined with lower tax rates
markets. Sectors on the rise include education and training. new group of employees are these
creates local anomalies that have the
telecoms, financial services, retail and returning nationals, who were often
potential to sabotage a multinational’s
pharmaceuticals. A three-tiered compensation structure educated and/or gained work experience
assignment compensation strategy,
is already evolving in some African in the West. This group can command
making the ‘local-plus’ pay approach
Traditionally, Africa’s major business countries, particularly across central a premium local salary and other
more attractive.
partners have been the US and Europe, Africa. This has previously been seen in benefits such as a housing subsidy and
but in recent years investors from parts of Asia, most notably China, and educational benefits for their children.
Separate remuneration policies for distant
emerging markets – most notably that reflects the three emerging groups
geographical locations will be a distant
India and China – have moved into of employees: Global assignees: These designated
memory by 2020. Instead, the standard
the market, sometimes with more assignees of any nationality receive
will become an overarching global policy
immediate success than their Western full allowances for the cost of living,
system that’s aligned to the talent mobility
counterparts. Organisations that were home leave, relocation benefits and tax
strategy. Some organisations have already
built in emerging economies have been equalisation.
adopted ‘destination pay’ and ‘local plus’
able to exploit the complex, uncertain
remuneration methodologies across many
and challenging African environment
of their locations, allowing employees to
by applying the many lessons they have
be more quickly and easily deployed in a
learned at home.
cost-effective way. The definition of ‘plus’,
though, will be flexible enough to allow
employers to be responsive to local market
conditions rather than a global mandate.

Talent mobility – 2020 and beyond 24

The politicisation of immigration
The acceleration of global mobility
is happening, it seems, in spite of
governments in many regions, rather than
aided by it. We’ve long argued that those
countries that facilitate the free movement
of labour are more likely to become the
most economically competitive. Those
countries that recognise that their ageing
workforce will soon create a pressing need
for imported talent have already taken
the first steps towards lowering their
immigration barriers, and we predict that
more countries will adopt less restrictive
immigration in the future. But it won’t be
easy, as recent history has illustrated.
25
The economic turmoil of recent years,
combined with political instability and
unrest in many parts of the world, has
pushed immigration up the political
agenda. Borders have tightened in many
regions, as some governments attempt
to restrict immigration in their response
to low employment, while others bow to
concerns over national security.
In a business world where organisations
will have to move people faster and more
often, this increased politicisation of
immigration is a problem. The political
awareness to anticipate immigration
changes will become an essential skill.
We expect immigration issues to be one
of the major contributors to the increase
in short-term assignments and business
travellers by 2020, as businesses navigate
immigration requirements. In the longer
term, though, the clear economic benefits
that talent mobility brings will encourage
greater collaboration between businesses
and governments to remove some of
the barriers.
Pressure on HR And at the coalface, the workforce will
The nature of global mobility has moved become increasingly diverse as mobility
well beyond its traditional form and the increases. This puts enormous pressure on
mobility function is no longer restricted HR and global mobility functions, skills
to delivering services to assignees and and policies, which may struggle to keep
other stakeholders; it will become a vital up with the pace of change.
strategic tool that requires a predictive
rather than reactive mindset. Modern
mobility has widened the demands placed
on the global mobility function, which
must now:
• manage compliance and risk
• deliver a good, or preferably excellent,
assignee experience so the worker can
concentrate on their new role
• understand, report on and
manage costs
• make sure that the organisation
gets the best value for money and
report on the return on investment in a
mobility programme
• contribute to developing a sustainable
talent supply
• promote the rapid deployment of key
skills and talent
• develop meaningful management
information to aid business strategy
and decisions
• partner with the business, understand
the wider business strategy and then
develop effective communications,
policies and processes to deliver the
talent mobility strategy.
“I believe organisations have to find their own solutions. We run
a talent factory of 700 to 800 people here in India and we are
working on creating a global talent pool of about 100 people – 60
of them from India and 40 from other countries – so that we can
send them anywhere across our operations. We hope to have this
talent pool ready within the next three years.”

Baba Kalyani Chairman and Managing Director,

Bharat Forge Ltd, India

Talent mobility – 2020 and beyond 26

Creating a ‘modern mobility’ strategy
As organisations align their global
mobility programmes more closely with
talent management and overall business
strategy, a ‘new normal’ for mobility will
emerge. Mobility will encompass a broad
range of experiences, short and long term,
project-based and assignee-led. It will
encompass virtual mobility and long-range
commuting, and play a vital role in the
development of future leaders and the
retention of valued staff.
A borderless workforce
If companies are to become nimble enough
to respond to unexpected changes, they
should see their workforce as essentially
borderless. That could mean developing
talent where the jobs are, relocating
talent to the jobs, or moving jobs closer
to sources of talent, within the constantly
shifting constraints of international
immigration law.
Cultural and language differences can be
a significant hurdle when expanding into
new markets; the challenge for employers
will lie in attracting and developing
workers who are able to adapt and fit to an
unfamiliar workplace.
27
A closer eye on compliance
The line between international
assignments and business travel is
becoming more blurred as time moves on.
This raises the question of whether it still
makes sense to separate the management
of business travel and global mobility.
In some organisations, business travel
is managed by business units without
oversight from HR, and this represents an
increasing compliance risk.
Predicting trends
Talent mobility will become an important
strategic tool. The pressure on HR to
provide evidence and insight to support
mobility decisions will only increase in
the future, and this means developing
a predictive way of thinking – and
embracing the technical data techniques
that support it.
The use of predictive analytics in HR is still
in its relative infancy, but an increasing
number of organisations are beginning to
embrace the concept. The data is available,
but more sophisticated analysis would
provide valuable trend information and
the potential to identify risks. Predictive
analysis is already commonly used in
other business functions such as sales and
marketing, but our research suggests that
95% of organisations have only an ad hoc
approach to analytics in HR,9 if any at all.
This has to change.
Personalising mobility
As organisations in many regions struggle
to source the talent they need, business
leaders are focusing on specific groups
of the workforce and personalising their
recruitment and retention strategies to
suit them. Younger workers, older and
experienced employees and women are all
seen as valuable sources of talent, provided
employers can deliver the flexibility
they need.
9 Key Trends in Human Capital 2012

A single mobility programme won’t fit
all and mobility strategy needs to be as
flexible and tailored to the individual as
well as the business as any other area
of talent management. For instance,
the pensions crisis in many countries
suggests that many from the Baby
Boomer generation will most likely seek
to continue working after retirement
age, and their motivation in accepting
an assignment will be based on the
financial package and term. Millennials,
on the other hand, will more likely favour
short‑term and project-based assignments.
Employees with families, or those caring
for parents may turn down relocation, but
embrace occasional commuting or virtual
mobility techniques.
Measure and monitor
With talent management firmly on the
strategic agenda, the appetite to measure
the value and return on investment of
assignments will increase exponentially.
The cost of international deployment
remains a primary concern, as does
the retention rate among returning
assignees in many countries. Of course,
there’s pressure from stakeholders to
demonstrate a positive financial return
on the investment in assignments and the
Future view
Delivering the experience up innovative relationships with other
It’s clear that organisations need to companies to develop schooling,
adapt their mobility programmes for medical facilities, shopping and lifestyle
specific groups of employees, and amenities in hotspot locations, creating
that a more personalised approach expatriate communities with the
to mobility is developing. A natural services people need. Some businesses
progression of this is that organisations are already partnering with the
will concentrate more closely on making educational sector in a bid to improve
the mobility experience – whatever the supply of specific skills that they
effectiveness of a mobility strategy. But the form it takes – as positive as possible for need.
longer term need to develop future talent, the assignee.
and provide the international perspective The focus on the individual will
and experience that they need, is more We expect to see a rise in business-to- encourage innovation in the delivery
difficult to measure. business collaboration in 2020 and of assignments, such as concierge
beyond, as companies think about how services to ease the transition and living
If employers are to maximise their to provides the infrastructure that arrangements of assignees, to better
investment in global assignments, they allows their employees to maintain out-of-office communications that
must establish clear expectations and an acceptable standard of living while provides 24-hour support. Led by the
performance measures. Regular feedback, also providing for long-term financial millennial generation, the boundaries
support and mentoring will not only security. We’ll see organisations strike between work and home will blur.
help to disseminate the international
knowledge gained by the assignee, but
reduce the chance of the mobile worker
resigning, once their assignment ends.
A top-class function in control
The changes already underway in global
mobility place ever-increasing demands
on the functions that must manage the
programmes. The best organisations know
that a strong global mobility strategy that
has buy-in from the board and CEO, which
supports the wider growth objectives and
business strategy and which is closely
tied to the management and development
of talent has become essential. Such an
important task requires specific skills
and knowledge, and investment and
development in the global mobility
function itself should be a priority.
Talent mobility – 2020 and beyond 28
Conclusion
The business world is in the midst of
fundamental change and in 2020 and
beyond, the ability of organisations to
manage their global talent efficiently will
mark the difference between success and
failure. We’re facing a world where the best
and brightest talent are prepared to follow
their own agenda and opportunities,
wherever they may be and irrespective of
who is offering them. It’s a world where the
strongest and most sustainable supply of
talent is in the East, rather than the West,
and a world where technology has changed
the very way we work.
“We really do need to staff up local businesses with people from
those countries. It doesn’t make sense to have large numbers of
expats working all round the world as it’s just very expensive, so we
have to train, we have to develop and we have to attract the right
local talent. For the most part these locations are in pretty wild
places. And now most professionals want to be in urban locations,
particularly if they have families. So it’s an increasing challenge to
induce people to work in those difficult locations.”
Tom Albanese, Chief Executive,
Rio Tinto UK
29
Economic transformation and
demographic changes have already had an
impact on talent supply and demand. The
emergence of a new generation of workers
presents an entirely new set of challenges.
Talent management will become a
key strategic tool, which places great
responsibility on the shoulders of HR. Are
you up to the challenge?
How do these trends affect your
organisation?
• Have you mapped and tracked your
mobility needs to determine what skills
you will need and when and where you
need them?
• Do you have the right insight and data
to determine where changes and/or
investments may be necessary?
• Have you aligned your talent
management strategy with the wider
business strategy?
• Have you built strong links between
the functions within the organisation,
which are responsible for mobility,
talent development, succession
planning and global resourcing?
• Do senior stakeholders and the global
mobility function have a common
understanding of the main priorities?
• How do you plan to manage the
millennial generation? Can you use
their eagerness to travel to your
advantage?
• What reward and incentive model
is appropriate to meet the various
needs across generations in your
organisation?
• Are your mobility policies and
processes forward looking, or mainly
reactive?
• What strategies do you have, to retain
the employees you’ve invested in?
• Is your HR function equipped to deal
with the challenges ahead?
Talent mobility – 2020 and beyond 30
Contacts

For more information please contact:

Peter Clarke
Global Leader, International Assignment Services
+1 203 539 3826
peter.clarke@us.pwc.com

Eileen Mullaney
US Global Mobility Consulting Leader
+1 973 236 4212
eileen.mullaney@us.pwc.com

Carol Stubbings
UK International Assignment Services Leader
+44 207 804 9859
carol.stubbings@uk.pwc.com

31
Talent mobility – 2020 and beyond 32
www.pwc.com/hrs

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