Companies’ overseas ambitions under threat from staff shortages, headlined the FT on August 26. The article was based on research from PwC presented by Carol Stubbings, PwC’s UK international assignment services leader.
In our 2013 client engagements we found that large multinational corporations experience a structural shift in global workforce planning and human capital risk. For one of the largest global companies we analysed the alignment between global market growth opportunities with their current workforce and future talent supply potential. This outcome revealed that in 66% of their major markets todays workforce was not aligned with market opportunity. Reballancing the workforce requires tough restructuring in developed but low growth opportunities in favor of high growth emerging markets, where talent supply with critical skills is largely unavailable. Multinational companies will have to find new ways to provide the talent supply to meet the business need in fast growth markets.
These conclusions match with PwC's research findings about short term talent demand - supply gaps. In summary; talent from the West is not keen to go to the East and the already short suppyl of talent in the Emerging Markets is well aware of the boost to their value if their CV's shows experience in the West specifically working for Western multinationals.
We have now decided to develop a global Talent Supply Chain analysis model that we will release first week of September.