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European Competitiveness in Peril as the 'Right' People Reluctant
to Work Abroad
May 22, 2002 - A growing mismatch between employers' demands
for an increasingly mobile workforce and employees' willingness
to work abroad is threatening the international competitiveness
of business in the EU, warns a new report 'Managing mobility matters
- A European perspective' by PricewaterhouseCoopers and its correspondent
legal practice Landwell.
While 70% of businesses surveyed across eight European countries
expect their need for mobile employees to increase over the next
five years, nearly half (48%) admit they are already experiencing
problems in recruiting senior staff. By contrast, a MORI survey
of more than 8,000 individuals in the same eight European countries
shows that only 17% are interested in living and working abroad,
and most of these are young and inexperienced.
Kevin Delany, partner, Human Resource Consulting at PricewaterhouseCoopers,
said:
"These results act as a wake-up call to business to put strategy
for international labour mobility high on the corporate agenda,
embrace new flexible ways of employing a mobile workforce, and consider
the needs and expectations of a new generation of potentially mobile
workers.
"Companies need clear strategic reasons for sending staff abroad
and recruiting from other countries. Otherwise they will lag behind
their more enlightened competitors, losing their most valued employees
in the race for talent, missing out on the creative benefits of
employee diversity, and on new flexible ways of cost-effectively
staffing a business. Companies find they can no longer count on
the loyalty of their employees."
Nearly two thirds of firms surveyed agree that "there is no skills
shortage in Europe - people are just in the wrong place." The problem
for business is that while individuals want to move to countries
such as Spain, France and Italy, this merely exacerbates the shortage
of skills in other parts of Europe where the labour market is already
tighter.
Business also warns that many costly and obstructive barriers to
mobility within the EU add significantly to their difficulties,
and that unless differences in employment regulation, tax and benefits
systems, immigration and pensions are addressed, the region's international
competitiveness will be put in jeopardy. For instance, although
more than half of businesses surveyed would like to have a single
contract of employment across Europe, only 10% have made any progress
towards achieving this.
Els de Wind, partner and Global Head of Employment at Landwell,
said:
"Companies continue to face legal compliance problems when moving
their employees from job to job within the EU. Individual countries'
employment and immigration laws vary considerably. Unless and until
these are more consistent and co-ordinated, business must ensure
that it can satisfy its needs without risking any breaches of local
law.
"For companies wishing to employ non-EU nationals, the situation
is even more complex. Despite case law in the mid-1990s*, non-EU
nationals must obtain separate immigration clearance for every EU
member state."
Kevin Delany commented on potential future challenges for business:
"The growing demand for skilled and experienced workers, together
with increasing business competition to meet customers' needs internationally
will change the European business environment significantly in the
future. Business needs to be proactive in managing mobility, encouraging
a better match between its own needs and the ambitions and career
profiles of individual employees.
"The days of foreign assignments meaning a career backwater, however
lucrative, are long gone. Dialogue between employer and employee
can help foster more flexible solutions. These may include commuter
assignments, portfolio working and short-term mobile contracts in
circumstances where family ties may make a complete family move
difficult.
"Each solution, however, carries its own disadvantages as well
as plus points for both employer and employee. Business may need
to consider taking the work to the workforce rather than vice-versa."
Insights from the PricewaterhouseCoopers and Landwell research
suggest there a number of key questions which business needs to
address in order to stay competitive:
| 1. |
Does your use of different types of mobile worker best fit
your aims and objectives and add value to your business?
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| 2. |
Do you have sustainable global policies for managing your
employees working internationally, covering recruitment and
retention, remuneration and diversity, continuing development
and performance management?
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| 3. |
Do you have a clear view about how technology will affect
your future need for mobile workers, for example in enabling
you to organise yourself in such a way as to reduce your reliance
on mobile workers?
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| 4. |
Have you considered all potential pools of workers including
the local labour force and mobile older workers, as well as
how to capitalise upon the appetite for international working
amongst younger age groups?
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| 5. |
Have you considered the expense of mobile workers on expatriate
terms and conditions as opposed to those employed on local terms
and conditions? Have you taken steps to reduce the cost?
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| 6. |
Do you have a one-stop information site for employees covering
potential vacancies and all aspects of international assignments?
Do you provide for employees to acquire (new) language skills?
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| 7. |
Are foreign employees working for your business legally?
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| 8. |
When you send a mobile worker to work in another country,
are you complying with local employment laws, such as maximum
working hours? Have you considered that he may have employment
rights in both countries? |
ENDS
Notes to Editor:
1. Download an electronic copy of the report 'Managing
mobility matters - A European perspective' from the Landwell
Global website.
2. The research for 'Managing mobility matters - A European perspective'
by PricewaterhouseCoopers and Landwell comprised:
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a survey of over 400 businesses in eight countries across
Europe - Czech Republic, France, Germany, the Netherlands, Spain,
Sweden, Switzerland and the United Kingdom - to gain insight
into their views and perceptions of the potential role and implications
of increased labour mobility;
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a series of case studies with nearly 25 multinational businesses
across a range of industry sectors within Europe to gain a more
in-depth perspective of their approach and attitude to a wide
range of mobility issues;
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a survey by MORI of over 10,000 individuals in ten countries
across Europe (those covered by the business survey plus Hungary
and Poland) to understand their attitudes towards moving between
countries to live and work and their perceptions of the opportunities
for, and obstacles to, such mobility. |
3. *The European Court of Justice considered the case of Raymond
Vander Elst -v- Office des Migrations Internationals in 1994. The
Court's decision established a right in law for an employee lawfully
employed in a member state to temporarily provide cross border services
within the European Union.
4. PricewaterhouseCoopers (www.pwcglobal.com)
is the world's largest professional services organisation. Drawing
on the knowledge and skills of more than 150,000 people in 150 countries,
we help our clients solve complex business problems and measurably
enhance their ability to build value, manage risk and improve performance
in an Internet-enabled world.
PricewaterhouseCoopers refers to the member firms of the worldwide
PricewaterhouseCoopers organisation.
Landwell, the correspondent legal practice of PricewaterhouseCoopers,
is one of the largest global legal practices with 2700 lawyers in
over 40 countries. Landwell represents a new model for the delivery
of legal advice to businesses. Lawyers frequently work in integrated
professional consulting teams to address clients' business issues.
They are deal architects who structure and project manage transactions
through to their completion. For further information go to www.landwellglobal.com
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