The report by the consulting company BCG looks at the current mobility trends and gives advice to employers and governments on optimizing migration processes and interacting with arriving foreign talent.
The Roscongress Foundation presents the salient points of the publication accompanied by fragments of broadcasts of relevant panel discussions from the business programme of international events held by the Roscongress Foundation.
Cross-border migration brings advantages to all those involved in the process.
Migration is beneficial for destination countries, origin countries, employers, and, of course, for workers themselves. People who move abroad for work anticipate higher salaries and a better quality of life, and their choice typically pays off: on average, they report that their quality of life is 9% better after their move, according to the Migration Policy Institute.
For destination countries cross-border migration improves productivity and fills workforce gaps, of which there are many. Already, demand for talent outpaces supply in the US and Germany by 2.74 million and 545,000, respectively, according to recent analysis by The Stepstone Group. These countries could be harbingers of the workplace future in many places around the world. That’s a painfully expensive prospect: a BCG study of 30 countries found that above-average labor shortages currently cost economies more than $1 trillion a year. For these reasons, the International Labor Organization and the World Bank identify cross-border migration as a key priority in addressing talent shortages.
For origin countries, the notion that they can benefit from the departure of talent might seem counterintuitive, since, from one point of view, they are experiencing «brain drain.» But conversely, the Center for Global Development reports «brain gain» related to the fact that departures can promote the dissemination of knowledge and technologies in origin countries and can help those countries connect more firmly to the aggregate global brain. Another benefit: in 2023, according to the World Bank, emigrants sent $669 billion back to friends and family in their homelands, reducing poverty, increasing consumption, and improving economic stability.
As for employers, an overwhelming 92% of the leaders of global employers say that attracting and retaining talent is among their top three priorities. A recent study by The Stepstone Group in the US, the UK, and Germany found that two-thirds of senior leaders see cross-border migration as a way to solve demographic-driven labor challenges. And employing foreign workers doesn’t just fill capacity gaps: companies with greater global diversity are more innovative and successful. They generate higher profits and are 75% more likely to be world-class innovators, as a recent BCG analysis showed.
Video: https://roscongress.org/sessions/kmu-2023-nauka-obuchat-sovremennye-podkhody-k-realizatsii-obrazovatelnoy-i-vospitatelnoy-politiki-v-rossii/search/#01:26:16.320
The so-called virtual mobility is increasingly popular.
The worldwide shift toward remote work during the pandemic opened the door to virtual mobility—working remotely for an employer located in a country different from the one that the job seeker lives in. Interest in virtual mobility continues to rise: 66% of BCG respondents said that they would consider working remotely for an employer that had no physical presence in their country, compared with 57% at the height of the pandemic. During the pandemic, people in less-developed economies, such as sub-Saharan Africa, Latin America, and the Caribbean, demonstrated the greatest interest in finding a virtual mobility opportunity. In the years since, the regions with high interest in virtual mobility haven’t changed much—except that interest has grown by 10% to 15% among job seekers in the East Asia and Pacific and South Asia regions. Virtual mobility holds less appeal in the Middle East and South Asia, where people’s interest in working for an employer from another country may be driven by a desire to experience a social and cultural setting that’s different from their own.
Video: https://roscongress.org/sessions/asi-2023-2023-transformatsiya-rynka-truda-novye-trendy-antitrendy/search/#00:29:08.224
In the present-day world, where workers consider many more factors than just money, employers and destination countries should be active in integrating arriving talent if they wish to stay competitive in a changing labor market.
Despite geopolitical challenges and emerging virtual mobility, moving abroad for work remains a dream for many workers. Younger people and people from countries with fast-growing populations are the most mobile. Age and professional background are key drivers of the willingness to move. Younger workers, those in senior management, and those who have already lived abroad are more mobile. People consider relocating primarily for professional, financial, and economic reasons. They would like to build their professional futures through higher income, expanded work experience, and career advancement. Another strong motivator: having a concrete job offer in hand. Benefits and services offered by the destination country are secondary factors. People also look at the quality of job opportunities, the quality of life, incomes, taxation, and cost of living. When choosing an employer abroad, culture matters as much as money, and speaking the primary language or languages of the destination country also matters a lot.
English-speaking countries with strong economies continue to lead the list of top destinations. BCG survey participants tend to choose these primarily because of the quality of job opportunities offered. In 2023, Australia topped the list of desirable country destinations, while London has ruled as the most attractive destination city for work since 2014.
People who move abroad expect employers to take the lead in supporting their relocation and onboarding and to cultivate an international, inclusive culture. For example, 75% of respondents expect that their employer will help with housing, visa, and relocation. Employers are also expected to offer support with language training, onboarding, and family integration.
To tap into a valuable pool of global talent—and to gain a decisive competitive advantage in the fast-transforming world of work—governments and employers should devise a comprehensive strategy focused on attracting, relocating, and integrating workers from abroad. BCG experts recommend that employers do the following: forecast talent needs, and craft an international location strategy; refine the employee value proposition to resonate with new audiences; boost international recruitment channels; offer extensive relocation support; onboard new arrivals and their families; insure an inclusive and international work environment. Meanwhile, governments should take a strategic approach to managing immigration; boost the country brand, with a focus on jobs; build bilateral partnerships and programs; fast-track talent with critical skills; make immigration user-friendly; promote labor market inclusion; promote societal inclusion.
BCG experts believe that employers and nations that adopt newest approaches to managing migration processes and integrating arriving workers will gain a major competitive advantage and source of growth.
Video: https://roscongress.org/sessions/spief-2023-deystvovat-vmeste-myslit-kak-odna-strana/search/#01:08:31.359
Gain more insights about cross-border migration and labor market in the Labor Market, Migration, Globalization/regionalization, and Standards of Living sections of the Roscongress Information and Analytical System.
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