In the era of omnipresent globalisation, governments and companies will have to eradicate some of the barriers to enable international mobility, global competition and operations.

 “As companies venture into underdeveloped locations, organisations and governments would benefit from sustainable co-investment in the infrastructure needed for individuals to live and do work comfortably – this might extend to schooling and training, medical facilities or entertainment. Ideally, the movement of employees and executives between countries will be fluid and characterised by collaboration, not by onerous and costly administration.” says Billy Owens, international mobility leader, PricewaterhouseCoopers LLP.

This year’s PwC’s report- The Talent mobility 2020, indicates that some changes have to be made.

The survey reveals the following:

• Number of people on international assignments increased by 25 percent in the last decade; further 50 percent growth is predicted by 2020.
• Global organisations placed employees in an average of 13 locations in 1998, this increased to 22 by 2009 and could reach 33 in 2020.
• New ‘capital’ cities will emerge as business hubs according to size of local working age populations and new revenue streams.
• Collaboration will be the watchword as companies and governments share costs and knowledge to remove barriers to mobility and manage regulation.
• Economic and demographic imperatives could force leniency on immigration rules for specific workers, while technology will reduce tax compliance burden.

E7 countries rapidly changing mobility patterns

The emerging markets of E7 countries have been changing the mobility patterns for a couple of years now. Skilled employees from China, India, Brazil, Russia, Mexico, Indonesia and Turkey work across the borders more often nowadays. Furthermore PwC research projects that the E7 countries will overtake the G7 in terms of GDP by 2020 and that the combined E7 GDP will be around 30 percent higher than the G7 total by 2030.

Additionally “Population trends will undoubtedly mean some organisations will enter new locations and exit some of their traditional ones bringing a host of new immigration, tax and communication requirements,” Adds Billy Owens.

International assignments have changed dramatically since 1970s. Companies will always try to adjust their policies to the best opportunities available. This report shows that a shift from country-based multinationals to global multinationals and a change in how and where business operates is inevitable.

PwC’s Talent mobility 2020: The next generation of international assignments report is available to download here.

Expatica/ UP