INTERNATIONAL REWARD
PwC report investigates the future of international work
The number of people on international assignments increased by 25% in the last decade, but a further 50% growth is predicted by 2020, according to new research by PricewaterhouseCoopers.
PwC concludes that the globally-connected nature of trade, technology, capital, and regulation will necessitate a sharp rise in the movement of employees between countries, leading to increased use of short-term and “commuter” international assignments.
These factors – coupled with the rise of emerging markets, increased focus on new revenue streams and changing demographic imperatives – are projected to swell the number of people working outside their home country by 50% over the next decade. Additionally, the number of countries that employers host employees in is expected to continue to rise, presenting new compliance, remuneration and communication challenges.
The report is based on trend data regarding international assignments for 900 companies, population data and the opinions of both CEOs and workers around the globe.
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Key research findings
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.
The new generation of workers, “the millennials”, see overseas working as an important part of their personal development. Companies now face the additional challenge of managing three or four different generations’ needs, expectations and skills.
Advances in technology will change the way global and virtual teams are managed.
Technology will be used to track workers’ global movements so the appropriate tax and compliance rules can be adhered to, but this tracking also raises data privacy issues.
The growing importance of emerging markets will change mobility patterns as skilled employees from these territories operate domestically and beyond.
A final word
“Younger employees’ appetite for working overseas could eventually remove the need for financial enticement, but current immigration and tax systems, combined with the need for certain skills or experience levels, can make deploying staff around the world complex and costly. Articulating shared values will be increasingly important, as loyalty is even harder to foster across borders.
“On the positive side, technology is evolving to ease compliance and tracking burdens. The eventual harmonisation of living standards and remuneration across some skill sets and industries will also make things easier.” - Carol Stubbings, international mobility partner, PricewaterhouseCoopers LLP.
Want to know more?
Title: Talent mobility 2020: The next generation of international assignments, PricewaterhouseCoopers.
Availability: You can download the report in PDF format at www.pwc.com/managingpeople2020.
PricewaterhouseCoopers provides “industry-focused assurance, tax, and advisory services to build public trust and enhance value for its clients and their stakeholders”. For more detail visit www.pwc.com/uk.