Global Mobility Report 2012

Copyright ©2012 Hydrogen Group plc. All rights reserved — www.hydrogengroup.com

Global professionalson the move—2012

2

01t any given moment there are around a million people in the air, all flying to ever more far flung destinations. Some go for a weekend, some for a fortnight.

A growing number make a career out of it. Where previously people used to move between floors in an organisation, now they are as likely to move continents.

The third annual ‘Global Professionals on the Move’ report is set against this backdrop of global migration of professionals. Its aim is to look at the experience, attitudes and priorities of highly qualified, high earning professionals with regard to working abroad and to review the trends year on year.

International experience is more and more a prerequisite for senior professionals. Over the last two years, survey respondents have highlighted the increasing importance of their international experience, this year, the trend is also supported by clients, with 59% of them saying that they too recognise its worth.

Given the career value of gaining international experience, it is significant that the report highlights what a positive personal experience it can be. In fact it seems that once tried, people are in no rush to return to their country of origin. 90% of respondents would go abroad again and would recommend the experience to others, and one in three now consider the country where they live to be home, with only 18% of those already abroad wanting to repatriate in the near future. Remarkably, for 50% of those working abroad, the experience has been so positive that they are planning to apply for permanent residency.

However, there are challenges to be faced. Although down from last year, 31% of those already abroad said the biggest barrier to moving was finding a job. This could be a sign of a global recovery in the economy but it also supports another key theme to emerge; the importance of using recruitment specialists to help people in their search for a new role.

Reviewing the demographic data highlights the increasing dominance of the over 30s in overseas assignments. Conversely the report reveals that professional women working overseas do so much earlier in their careers than men. In fact, the report shows that of the women who were working abroad when responding to the survey, only 15% are over 40, compared to nearly 50% of the men.

We have pulled together the key trends around demographics, countries of choice and the benefits of working abroad to allow you to understand and be able to capitalise on the increasing importance of international experience.

Hydrogen Group—April 2012

Executive summary

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International experience key to career success

Migration more widely spread than ever before

ES Executive summary

020304050607080910

AP

Contents

Top destinations missing out on talent

Working abroad is not just for the young

People moving abroad stay longer than expected

Even the best employees are looking for greener grass

Women working abroad earlier in their careers

Recruiters play a key role

Energy sector leads way in overseas relocation

CS

Technology eases relocation

Country spotlight - Australia, Germany, Hong Kong, Singapore, United Kingdom

Appendix

3 4

90%Relocation accelerated personal development

86%Improved

career prospects

83%Saw their

salaries rise

Relocating abroad

>

International experience key to career success

here are many reasons why professionals choose to live and work overseas. Some

go for new experiences and adventure, some to learn a language, others simply for better weather. But by far the most popular reason is to develop their careers. After all, at many companies, international experience is a prerequisite for tenure of the top jobs.

“More people recognise that an overseas stint on their CV can open up a whole tranche of otherwise unavailable senior roles,” says Raymond Madden, Visiting Professor at ESCP Europe, which conducted the research project. “This is the third year in a row we have done this survey, and we are seeing a visible growth in understanding the value of working overseas.”

94 % of those who responded to the 2012 survey are considering relocating or have already done so, and they are taking the step to gain international experience because they recognise it as a key factor in career success. Supporting this, 72% of respondents

stated that their employers see international experience as important or very important. This has increased from 63% in 2011.Hydrogen clients confirmed this trend: 59% of employers see international experience as important or very important, and 57% of them see international experience on a CV as an important or very important means of distinguishing between candidates of similar ability.

The world’s economy is coming together at an unprecedented rate, and it is becoming increasingly clear that the top jobs of tomorrow will go to those who have lifted their horizons beyond their country of birth.

“It has fast tracked my career,” says Ben Morrell, a UK national by birth who moved to Sydney upon graduating in 2006, and then, in August 2011 moved to Singapore to work as a Bid Manager for a global broadcast technology vendor. “I left the UK because I didn’t see the career opportunities there,” he explains. “Australia was great, but at the end

“More people recognise that an overseas stint on their CV can open up a whole tranche of otherwise unavailable senior roles,” says Raymond Madden, Visiting Professor at ESCP Europe

>

>

of the day it is a market of 22m compared to 3.9bn in Asia, so moving to Singapore will take my career to the next level.”

He continues: “I’m 28 and have no children, so this is an ideal time to be making moves that develop my career. We’ll stay here for three to five years and then see what happens. Whatever we do, I can’t see us going back to the UK in the near future. Asia is where the career opportunities are in my industry. In more developed regions like Europe, North America and Australia, much of the broadcast technology we sell and implement is already in place, but in Asia it is still a growth market.”

Clearly, those in their 20s and 30s who want to be at the top of their professions, need to be spending time gathering this international experience. Some like Morrell thrive on it; others see it as an insurmountable obstacle.

“I have many friends back home who would love to do what I’m doing,” says Morrell.

“But they don’t because they get put off by all the hurdles in their path. Certainly there are many hurdles to overcome. It’s not easy. But the reward is worth the effort.”

Morrell is not alone. For the overwhelming majority who go to work overseas it is a positive experience: 98% of those we surveyed said not only that relocating had been a positive part of their lives, but also that they would recommend relocating to others.

The extent and depth of the benefits of relocation were striking. 90% reported that relocation accelerated their personal development, and 86% said that it improved their career prospects. 83% saw their salaries rise, and 78% enjoyed an improvement in their living conditions.

01

T

42%39%

13%Would consider relocating abroad

Yes I would relocate

Already relocated

6%No I wouldn’t relocate abroad

5 6

Top 15 destinations

Migration more widely spread than ever before

hilst it might be expected that the global economic downturn is affecting

people’s enthusiasm for working overseas, or at least denting the ability of companies to hire, the 2012 survey indicates that this is not at all the case. In 2010 61% said the global economy had not influenced their decision; by 2012 this figure was still as high as 55%.

However there are some signs that acquiring a new job overseas is taking professionals longer than before. In 2010 41% of our respondents had been looking for more than three months, and by 2012 this figure had risen to 47%.

For Dan Church, Client Services Director at Hydrogen, the most significant impact of the global financial crisis has been that migration is spread more widely than ever before. “People now need to go where the revenue is,” he explains. “Five years ago this might have been New York, London and Hong Kong; now it is also Shanghai, Houston, Vietnam and so on.”

Accordingly, the 2012 survey revealed that while the three most popular places for respondents to live and work remained the US, the UK and Australia, their dominance is waning. Last year 18% chose the US as their number one destination; this year it

was just 13%, a 5% fall in only 12 months. The UK and Australia suffered falls of one and two percentage points respectively.

Interestingly, the main growth region was Africa. Whereas in the past African countries have been barely mentioned by survey respondents, this year they amounted to almost 8% of the responses. This almost certainly reflects the vast investment that China and other countries are making in the continent and the consequent growth in employment opportunities there.

It is interesting to look at preferences by nationality. For example, French respondents indicated that Brazil would be an attractive destination, perhaps reflecting the fact that Brazil already hosts 350 French companies and around 25,000 French citizens.Another noteworthy finding is that people from Singapore prefer to stay in the region, identifying Hong Kong, China and Australia as their preferred relocation destinations. This chimes neatly with the growing trend for corporates in Asia to prefer to recruit indigenous workers and demonstrates the global importance of the area.

“People now need to go where the revenue is. Five years ago this might have been New York, London and Hong Kong; now it is also Shanghai, Houston, Vietnam and so on.”Dan Church, Director Hydrogen02

WThe global economy had not influenced respondents’ decision to work overseas

55%

13% USA 9% Australia 9% UK 6% Singapore 5% Canada

4% Switzerland 4% Hong Kong 4% France 3% UAE 3% Germany

3% Spain 3% New Zealand 2% China 2% Brazil 2% Italy

7 8

Visa restrictions

Top destinations missing out on talent

he third most popular reason to prevent relocation, according to respondents,

is visa/work permit issues (12%), and it seems as though this is particularly an issue for the US and Australia – the top two desired destinations in the 2012 survey. Raymond Madden, Visiting Professor at ESCP Europe and the academic in charge of the survey, comments: “It is clear from our research that the US is missing out on talent because of its stringent visa controls.”

This was certainly an issue for one lawyer, now at a US firm in Hong Kong, who moved there from Dubai last year. He explains: “I qualified with a London firm in September 2007 and moved with that firm to Dubai in 2009 . I was happy in Dubai for a couple of

years but I realised I didn’t want to be there for 10 years. Once you’ve been there longer than three years you become overly specialised in the laws of that region and you can find it hard to find a job in other jurisdictions.”

He continues: “In many ways,New York was an ideal option for me, but I knew the visa would take a long time and involved a lot of hassle. I would also have to sit a new exam. So in the end, I chose Hong Kong.”

Both the US and Australia could gain access to a wealth of talent by relaxing their visa rules. However it would be difficult to do politically, and Madden argues that it would only be necessary in a few select sectors. “Trying to implement a relaxation across the board

would be almost impossible,” he argues. “For example, it would be far more sensible for the US authorities to look at finance, pharma and the extractive industries and see what could be done to make it easier for global talent in those sectors to come and work in the US.”

Of course one country’s loss is another country’s gain. The fact that many highly skilled, talented and motivated executives cannot access jobs in the US and Australia means that they are looking for roles in other regions. Most notably the UK was, until recently, as difficult to enter as the US and Australia. The recent relaxation of UK rules has yielded benefits for the country.

“In many ways, New York was an ideal option for me, but I knew the visa would take a long time and involved a lot of hassle. I would also have to sit a new exam. So in the end, I chose Hong Kong.”Hydrogen placed candidate, Hong Kong03

T

USA

Australia

Visa/work permit restrictions preventing relocation

12% 2012

17% 2011Visa

9 10

ot so long ago overseas work was seen as something for the young. It

was UK teenagers picking grapes in France, American graduates teaching English in Japan, or twentysomething Australians using their accountancy skills to spend a few years in Europe. The 2012 survey shows that this is no longer the case. Global mobility amongst professionals is increasingly driven by the over 30s.

34% of respondents are in their 30s, 24% in their 40s, and 21% over 50. This reflects the fact of increased global mobility.

Corporates now look to fill their senior roles with executives who have a global perspective, and often recruit these directors and senior managers from overseas. At the same time, those who aspire to fill these top jobs are working overseas, putting that global perspective on their CV.

Juan Moyano has spent 30 years working around the world on a variety of contracts. Last year he made his latest move, from Argentina to Venezuela where he now works as Senior Reserve Engineer for a French company.

“I would say that more than half of the professionals in the Oil & Gas sector are over 45” Rory Ferguson, Director Oil & Gas at Hydrogen

“In my many years of working in different countries around the world I have learnt that often in foreign countries there are things about the way of life that you don’t agree with, but you need to understand and respect them. This is the first rule of working overseas.”

While the change in demographics is true of many other sectors beyond energy, Rory Ferguson, Director of Oil & Gas at Hydrogen reports that the trend is particularly evident in his sector and that it is becoming a pressing concern for employers. “I would say that more than half of the professionals in the Oil & Gas sector are over 45,” he says. “They tend

to be well rewarded and so typically retire before they turn 60. This means that a huge percentage of the energy sector’s workforce will disappear in the next few years.”

He continues: “So all the companies are fighting over the next generation – the 35 to 45 year olds. They typically have the necessary experience to do the key jobs, but can also be expected to remain in the sector for a reasonable amount of time. However, as there are fewer of them, we are seeing fierce and intensifying competition to land the top talent in that demographic.”

04Age range of respondents working abroad

N

30s 40s 50s

34%24%16%

20s

22%

Working abroad is not just for the young 4%

60s

11 12

he exception to the trend of older talent being overseas is women.

Only 15% of women working overseas are over 40, compared to nearly 50% of the men. In fact by and large women working overseas are young, single and childfree.

36% of women who are already abroad are between 21 and 30, while this applies to just 17% of the men. Equally 22% of women working overseas are single, compared to just 9% of men and, while 40% of female respondents in this sector have no children, the same is true for just 20% of the men. Perhaps the most telling statistic in this regard is that only 23% of respondents working overseas are women.

As was the case in last year’s report, women are just as, if not more, keen to relocate than men are: 53% of women expressed a desire to relocate compared to 49% of men. Furthermore, for those who do move, it tends to work out well: even if 59% of women who have moved overseas feel occasionally homesick (compared to 40% of men), 90% of them would repeat the experience.

Dianne Weinert, a consultant geophysicist, has spent years working in places from Perth to Tripoli, Houston, Copenhagen and now Sydney. She says: “If I’m honest I wouldn’t

even consider working overseas without all the support I get from my husband and kids. We’re a team wherever we go. All I have to do is focus on the geoscience at work.”

She continues: “I’ve moved my family four or five times internationally. Finding a house or suitable apartment, a school for my ten-year-old, visa and work permits, health care, getting around and getting to know the neighbours - it’s a huge process of adjustment.”

She has 25 years’ experience as a seismic interpreter, and is highly in demand in the energy sector. However, many women with skills, experience and talent like hers lack the support her family provides and so are not available to global recruiters.

Those that do go abroad at a later stage, often do so because they are following the career relocation of their partners. 14% said that they had relocated for this reason, compared to just 3% of men, which suggests that there is still strength in the traditional image of women trailing behind their spouses’ careers. However, it should be noted that half the women who have followed their partner overseas feel satisfied, whereas only a fifth of men who had followed their partner abroad were satisfied.

Women working abroad earlier in their careers

05

T“I’ve moved my family four or five times internationally. Finding a house or suitable apartment, a school for my ten-year-old, visa and work permits, health care, getting around and getting to know the neighbours - it’s a huge process of adjustment.”Dianne Weinert, Consultant, Geophysicist

36% Percentage of women already working abroad aged between 21 and 30

17% Percentage of men already working abroad aged between 21 and 30

Women working abroad

36%

44%

21-30yr 31-40yr 41-50yr

15%

17%

36%

26%

13 14

45%

People moving abroad stay longer than expected

hen Christophe Mura left France back in 1996 to study in Edinburgh he expected

that he would soon return to France, probably at the end of his course. 16 years later he is now working in Copenhagen as a Senior Drilling Engineer, and he is yet to relocate back home.

Indeed one of the most significant findings in the 2012 survey was that nine out of ten respondents would continue overseas and would also recommend this experience to others. A third considers the country where they currently live to be home, and only 18% want to go back to their home country in the near future.

Mura is a good example of the tendency to work abroad longer than expected. Before

going respondents anticipated staying overseas only for up to five years, in fact a sizeable 45% of respondents have already been overseas for more than five years.

“It’s not an easy life, but it is usually an interesting one,” comments Mura. “Both my wife and I spent 18 months in Gabon, as well as elsewhere around the globe. We moved to Copenhagen recently when I took up a position with a new employer and I am pleased to say that the move is working out very well.”

Raymond Madden, Visiting Professor at ESCP Europe and the academic in charge of the survey, believes this is a significant change in global mobility. He says: “We’re not seeing people going abroad to do a quick

two-year assignment. More and more people are spending their entire careers working overseas, doing stints of several years at a time in one country before moving to a new region where they gain fresh perspectives and experiences. Very often they are hesitant at the start but become hooked on the lifestyle and keep doing it much longer than they intended.”

This appears not so much a desire to keep travelling, more that they seem to like where they live: 84% of respondents would like to stay where they are and only 16% would like to move on. Half of those already abroad are even planning on applying for permanent residency.

06

W

Even the best employees are looking for greener grass

07

andy and Hussein Jaber are brothers born in the Lebanon with Canadian citizenship.

Both are talented professionals with skills that are in demand in the construction industry. So when they became dissatisfied with their work and lives in Saudi Arabia, and looked for interesting roles, whilst also allowing them and their families to all live near to each other, their new employer in Morocco was prepared to put in the effort to bring them on board.

Hussein Jaber says: “I wanted to move because my old job was not well organised or properly structured. I also wanted to increase my salary and to work with a company that recognises the value of its employees. So I started searching and was very happy to be taken on by my new employer in Morocco.”

He continues: “The company did everything possible to make the move as smooth as possible. It sent me a detailed orientation document telling me everything I needed to know about Morocco and my job. Right from the start the company smoothed out all the difficulties, meaning that I could settle in quickly and focus on my work.”

His experience is not unusual. No longer is an overseas stint the sole preserve of those struggling to make the grade back home, or those looking for a quiet spell in the sun. Today, it is the most experienced, educated and high performing workers who are looking to add international experience to their CVs. Potential employers who want to hire them need to be prepared to emulate the effort made by the Jabers’ employer.

It is a concern for many corporate recruiters. A recent Deloitte/Forbes insight survey, ‘Talent Edge 2020’ reported that not being

able to find talent in global and developing markets is a concern for 41% of corporate executives and talent managers. 72% foresee a severe or a moderate shortage in R&D talent while 56% think it will be a problem among executive leadership.

“What we are seeing is an unexpected talent paradox. Even though unemployment rates remain relatively high in the US, companies are struggling to find the skilled workers they need to fill critical jobs worldwide,” said Jeff Schwartz, a principal in the human capital practice of Deloitte Consulting LLP and global co-leader and U.S. leader for talent services.

Our survey showed that it is these top performers who make up the bulk to today’s global movers, 45% of our respondents who are working overseas have more than 16 years’ experience and only 18% have less than five years’ experience. These figures have risen since 2010 when 48% had more than 16 years and only 9% had less than five, but this perhaps reflects the growing awareness amongst younger workers that they need to get experience overseas.

In the same way, 30% of our respondents hold professional qualifications: 35% have Masters degrees, and 5% have Doctorates. Interestingly, only 8% hold MBAs, down from 11% three years ago, perhaps reflecting the decreasing enthusiasm amongst senior executives for these relatively expensive qualifications.

These are senior people who are making the move overseas: 10% are directors, 21% senior managers, 23% middle managers, 10% junior managers, and 2% are board members. Accordingly 15% earn more than US$200,000 a year, and only 40% under US$100,000.

R

of respondents have already been overseas for more than five years

Simon Whitehead, Partner at EOS Law, which specialises in advising the recruitment sector, agrees that the trend is very much for the top employees to be looking overseas. “More high flyers are looking for a move” he says. “At the same time, however, they are seeking more safeguards than ever before from prospective employers before jumping ship. While candidates are itching for a move they are taking longer to convert because of the risk associated with leaving the comfort of an employer and the risks inherent in joining a new employer.”

He continues: “To lure candidates to make a switch, recruiters and employers are being more creative with incentive packages and working harder at reassuring candidates about the benefits of a move. There’s been a marked increase in the number of contracts being suggested by recruiters and employers to guarantee bonus levels, minimum term contracts and, at the senior executive end of the market, golden parachute payments.”

15 16

How I found my job

Recruiters play a key role

Three or four years ago, if you needed someone to go and work overseas, you’d

look around the office and ask for volunteers,” says Dan Church, Hydrogen’s Client Services Director. “Now it’s the other way around. Now people recognise the value of international experience on their CV, and are queuing up for the international assignments.”

This is a significant shift in the world of global migration, as it means that recruiting companies increasingly have their pick of the best candidates, and those candidates need to work hard to impress prospective employers. Indeed, the 2012 survey revealed that finding a job is still the greatest barrier to moving overseas. It has though fallen to 31% of the responses (from a high of 44% last year), perhaps reflecting a global economy finally beginning to recover from the worst of the financial crisis.

In recent years there has been much talk about the rise of online tools such as LinkedIn®, which many have predicted will allow companies to do their own recruitment and so herald the demise of the recruitment consultant. The survey showed that this is far from the case. The most common way respondents found their current jobs was through a headhunter (19%), and the second most common route was through a recruitment agency (18%). Only 0.32% found their current job through LinkedIn®.

Tim Smeaton, Chief Executive Officer Hydrogen Group, explains why recruitment specialists are still important: “As more organisations operate at a truly global level, they need recruiters who can provide them with global talent pools and expertise to select the best candidates. Coupled with this, candidates recognise that recruitment

specialists provide them with access to the global organisations of their choice.”

Roger Tweedy, the REC’s Director of Research, comments: “Our own research confirms this view: recruitment consultants and search firms remain pivotal to most employers’ talent acquisition strategies. Recruitment consultancies are ideally placed to harness next generation recruitment tools. Our monthly tracking shows that over 90% of employers are pleased with the way consultants secure the best talent quickly for their businesses. As global competition for rare skills continues, having a strategic partnership with recruitment consultancies remains a commercial imperative.”

“As more organisations operate at a truly global level, they need recruiters who can provide them with global talent pools and expertise to select the best candidates.”Tim Smeaton, CEO Hydrogen Group

08

“

19% > Headhunter

18% > Recruitment

consultant

How did you find your current job

16% > Current

employer

13% > Friend/

colleague

13% > Online

13% > Employer

direct

2% > Press

6% > Other

17 18

he energy sector is right at the forefront of global mobility and has been for

many decades. While 59% of all Hydrogen clients stated that international experience in prospective employees is important, in the energy sector 100% stated that opinion.

In fact, the opportunity to work overseas is one of the reasons young people enter the profession. It was certainly a positive factor for Doug Renton, a Senior Drilling Engineer in Sydney. “I’m from Aberdeen originally,” he says. “So when I graduated ten years ago I was eager to get out on an overseas assignment and see the world.”

He continues: “I spent several years in The Netherlands, and then just 18 months back in the UK before this opportunity in Sydney came up. I leapt at the opportunity. I’m now married and we’re thinking of starting a family, so my enthusiasm for overseas work might wane, but up until now it’s been a fantastic benefit of my career.”

However, according to Graham Chalker, Global Practice Leader of Oil & Gas at Hydrogen, that may be about to change. “There is a community of people in the energy sector who have had a career working all over the

world,” he says. “It’s the generation that entered the industry as the North Sea oil came on-stream and most of them are due to retire in the next five to ten years. They have worked in all the hardship locations, and now they are much more selective about the jobs and locations they will accept as well as about the rates they demand.”

He continues: “As these skills become scarcer, employers are looking to replace them with local skilled workers. This is for several reasons. Firstly, as the skill gap grows it is easier to hold onto locally employed people. Secondly, it is increasingly a stipulation of operating in developing markets that a certain proportion of a multinational corporation’s workforce is local. Thirdly, there are nationals who have worked aboard, gained skills, and are now being encouraged to return home to work. Because of these developments, we see a more strategic relationship occurring between employers and manpower suppliers.”

Chalker’s colleague, Rory Ferguson, Director Oil & Gas at Hydrogen, adds: “The final factor is that indigenous workers are usually a more cost effective option than overseas workers. So, in theory, in many parts of the world we might expect to see

global worker mobility decrease. However, such is the demand for expertise within the sector, particularly in places like the Middle East and Africa that there just aren’t the skills available. So overseas workers will still be very much in demand.”Ferguson offers this advice to anyone in the energy sector who is looking to attract leading professionals: “These people are excited by projects that involve high potential prospects, leading edge technologies and market leading talent and leadership. We’re seeing some organisations shift from functionally aligned groups – for example, a department of geology – to multi-disciplined project teams in which specialists can all learn from each other and develop new skills.”

For those who are hoping to land the top jobs in the sector he concludes with this advice: “Don’t just take an academic approach. Employers get frustrated by academically brilliant engineers who are unable to look beyond their own role. If you can think about the broader commercial implications of everything you do you will exponentially increase your value to a prospective employer.”

Energy sector leads way in overseas relocation

09

T

76%

Energy

Pharmaceutical 73%

Law 69%

Finance 62%

HR 54%

Transformational Technology 51%

Business Transformation 42%

Importance of international experience

19 20

In both 2010 and 2011 the UN placed Australia in second place on its

Human Development Index, a comparative study of life expectancy, literacy, education and standards of living for countries worldwide. Put simply, Australia is one of the best places in the world to live.

This was strongly reflected in our report. Overall our respondents named Australia as the second most desired place to live and work. It was chosen by 9%, and, unsurprisingly given its wealth of natural resources, was the most popular choice for those in the Oil & Gas sector.

However, it was slightly less popular than last year when it was chosen by 10%, and Ivan Jackson, Managing Director Australia at Hydrogen, confirms that the last 12 months have seen a slight slowdown in workplace migration. “2010 was the first year since 2003 when there were not more skilled people leaving and arriving than the year before,” he says. “This is likely a result of the uncertainty that persists from the global financial crisis, but the long-term trend tells us that we will, in the near future, see inbound and outbound migration increasing again.”

He reports that the majority of those making the move either into Australia or out of it are in the oil & gas, mining or engineering sectors. “There are currently 404 natural resources projects taking place in Australia,” he says. “Together they are worth over AUS$450 billion, a sum that dwarfs the

investment commitment of most Western economies, and a lack of relevant skilled professionals is one of the main barriers to bringing these projects to fruition.”

Jackson reports that there is less demand from financial services, partly because the sector continues to struggle, and partly because there is less of a shortage of local talent. He expects that in the future recruitment to this sector will be more about replacement than expansion, with many organisations seeing the merits of outsourcing and offshoring many of their support and technology functions. However, many oil & gas projects are reaching a point where they will suddenly need several thousand extra workers. “In the next two to three years recruitment to Australia will be at its highest ever,” he concludes.

So where do all these overseas workers come from? The survey revealed that a large number of Australians use their language to live and work in the US and UK, and that many English speakers come in the opposite direction, heading to Australia for its fabled lifestyle and growing array of career opportunities. It is also a popular destination for Singaporeans.

Dianne Weinert, a consultant geophysicist, has spent years working in places from Perth to Tripoli, Houston, and Copenhagen, and she has just relocated to Sydney. She says: “Tripoli was absolutely the worst and Australia the best and easiest. We lived in Perth for almost two years and are loving

being in Sydney. My daughter is in college in Fremantle and she came to stay with me in Sydney, which was great fun for both of us. We did all kinds of tourist stuff together, including a concert at the Sydney Opera House.”

However, if a proposed piece of legislation comes into force as planned on 1st July 2012, this Australian lifestyle may become less accessible to overseas workers. The Australian Federal Government has unveiled plans to effectively abolish tax-free living-away-from-home-allowances (LAFHAs). This follows an extensive review by the Australian Taxation Office following concerns over the perceived abuse of LAFHAs paid to foreign executives. But at the time of writing, it is by no means certain that the legislation will be passed. Regardless, it is essential that anyone considering a move to Australia ensures they present the best possible case to prospective employers.

For companies that are looking to attract top professionals to Australia, Jackson has this advice: “It’s worth doing the obvious things like financial and practical help with relocation but the specific challenge we face in Australia is that we are too far away from the rest of the world for people to pop over for interviews, so employers are getting much more savvy at using technology to interview candidates. They are also becoming much better at sharing the experiences of their current workforce to help people make the cultural leap as much as the work-place leap, and hence ensure a much softer landing for their new hires.”

Country spotlight

Technology eases relocation

10

linical trial assistant, Irina Teodorascu, made her first international move

in March 2012, moving from her native Romania to take up a freelance contract in Germany. Like many who take up an overseas assignment she was initially concerned about feeling isolated and homesick. In the 2012 survey, the number one reason for people to decide against relocation is family. As is the case with many of these professionals, Teodorascu has found that new technologies are helping to mitigate the problem.

“I talk to my friends and family every day” she says. “We get in contact via Yahoo Messenger® and Facebook®. So even though I am many kilometres away from them it doesn’t feel like it because we still share the everyday aspects of our lives. It is certainly helping me to settle into my exciting new life.”

These technologies also allow overseas workers to remain in contact with loved ones. This is an important development for those relocating and those trying to attract

the top talent. After all, no matter how good a career opportunity, no matter how great the appeal of an exciting new country, most people want to be close to their families. 23% of survey respondents described it as the most significant barrier to relocation. When asked to name what they missed the most, 70% mentioned their families.So it is reassuring for global professionals that video calls are now affordable and practical right around the world.

Social media platforms such as Facebook® allow even those in the most remote locations to keep in touch with friends and family, viewing their photos, hearing about their daily activities and so helping to reduce the inevitable feelings of isolation that occur in the early days of settling into a foreign country. In fact 82% of our female respondents, and 70% of the men, told us that social media reduces their homesickness. Perhaps partly due to this, the majority of respondents reported that they find it easy to settle down, make new friends, and adapt to a different culture.

C

Say social media has helped to reduce

homesickness

23%Described wanting to be close

to family as a significant barrier to relocation

>

>

out of3 4

Australia

“

21 22

ong Kong is one of the world’s leading international financial centres, and is

increasingly used by multinationals as an entry point into the Chinese economy. “Hong Kong is still considered by many as the finance and business capital of the region,” says Abigail Waudby, Director, Asia at Hydrogen.

“The Asian economy is still strong,” she says. “With many companies investing significantly in growth in this region, this is creating a range of opportunities for talented individuals.”She continues: “In certain areas there are acute skills shortages, and in these cases some firms are considering international talent where the domestic talent pool is unable to keep up with demand. This is not a new trend, but the rapid pace of growth in Asia has accelerated the gap between supply and demand.”

However this supply gap has not made Hong Kong employers any less selective. Waudby says: “The strategic priority for many companies is to build headcount of executives from the indigenous market of Hong Kong or the People’s Republic of China. In many cases

these individuals have been working overseas and are perhaps looking to come home.”

Despite this, there are still opportunities for non-Mandarin speakers as one lawyer who qualified in London and then spent two years in Dubai before moving to Hong Kong demonstrates: “I was told there were fewer opportunities available for non-Mandarin speakers,” he says. “But I was lucky since the market for funds lawyers is fairly buoyant at the moment, and my recruitment consultant was able to identify a suitable role and guide me through the selection process towards a successful conclusion.”

He also points out that Hong Kong offers a good quality of life, “It’s an optimistic market,“ he explains. “It’s also a big city with a buzz . I wanted the vibrancy and energy which a world city provides and it is all here in Hong Kong.”

Salaries in Hong Kong are comparable to other major financial and business centres, and lower taxes give most people a 20-30% uplift in their take-home pay. Residents also enjoy a high standard of living and with the

rest of South East Asia a short flight away, there is also the opportunity to travel.

China’s influence on the region is growing and this is changing the commercial landscape. Hong Kong is facilitating considerable amounts of cross border work and the changing global political stage is adding to the changes being experienced in Hong Kong.

Waudby comments: “The crucial point is that employers no longer need to pay substantial relocation packages and salaries to attract people here. Candidates need to demonstrate a visible commitment to a decent length of tenure and realistic expectations regarding remuneration.”

Finally, Waudby advises candidates to expect certain cultural differences. She explains: “The working culture here can feel very different from Europe, with a more formal approach to business.But in terms of personal development the roles in Hong Kong often involve a wider regional remit, which is usually not the case in say London or New York.”

Country spotlight

Hong Kong

Hight at the heart of the European Union, with a population of more than 80 million,

the fourth largest economy in the world, and one of the very few economies that has grown over the past three years, Germany is an excellent destination that offers many opportunities for those looking to relocate.

Yet, despite almost 10% of our respondents being German speakers, and 7% being German nationals, only 3% named it as a country where they would like to live and work. Stephanie Murtagh, Associate Director at Hydrogen, believes the remaining 97% are missing a potential opportunity.

“Germany is an excellent place to live and work. The economy is strong and it is home to some of most established and successful companies in the world, so in general it offers good salaries. Living costs are reasonable, healthcare provision is outstanding, and the major cities such as Berlin, Munich, Frankfurt, Hamburg and Dusseldorf are vibrant, cosmopolitan and exciting.”

That is certainly the experience of Irina Teodorascu, who in March 2012, moved from her native Romania to take up a freelance

contract in Germany. She says: “I chose Germany because I believe life is lived in the proper way here. People here respect other people, every service is high quality, and even the food is cheaper than in Romania. Already I feel like I have been living here all my life. ”

Our respondents told us that the main barrier they face in moving to Germany is insufficient relocation packages, Murtagh confirms that this is almost certainly the case. “Employers in Germany have a large indigenous pool of talent to draw from, so they can be very picky about which overseas workers they hire.” Furthermore, the process for obtaining visas and work permits in Germany is complex and time-consuming, which can deter some people.

It has been notable in recent months that those not put off by these obstacles have been those from countries that are experiencing economic difficulties. Murtagh reports significant candidate flow from Italy and Eastern Europe.

Getting a foothold in the German job market is challenging, but there are opportunities if you know where to look. “German companies are

becoming increasingly global,” says Murtagh. “This has always been true of pharmaceutical firms, but more and more companies in finance, automotive, FMCG, and so on are raising their sights above the German market. To do this they need people with English speaking skills. So if you can offer fluent English and German you will be in demand.”

She offers this advice to employers who are keen to tap into that small pool of candidates who have both those language skills together with the necessary technical skills: “Everything you can do to smooth out the integration process will help. For example, before they make the move, new hires like to speak to others who have done it before. But also, during the recruitment process remember to focus on the opportunity rather than the location.”

Country spotlight

Germany

R

23 24

ingapore might be small with a population of only five million but this

has not prevented it from becoming one of the fastest growing business centres in the world. The government has worked hard to position Singapore as one of the most attractive destinations for multinational firms to be based in Asia; offering ease of set up, low taxation rates, and a business-friendly trading environment. This has resulted in Singapore being ranked as the second freest economy in the world, behind only Hong Kong by the 2011 Index of Economic Freedom.

Singapore is now the 14th largest exporter and the 15th largest importer in the world, and has the highest trade-to-GDP ratio of any country. There are more than 7,000 multinational corporations in Singapore, as well as 1,500 companies each from China and India. Indeed, around 40% of those living in the country are foreign workers or their dependents. Singapore is also well positioned to weather the more volatile trading conditions we have been experiencing in the last few years, as it has attracted a varied number of industries to its shores providing resilience and a range of opportunities.

Simon Walker, Managing Director Asia at Hydrogen, comments: “The big question here is whether Singapore will become Asia’s Silicon Valley or its Switzerland. It is recognised as a strong choice for back-office operations and there’s a trend for technology companies to site their IT operations here.

There are also significant numbers of energy, pharmaceutical and engineering firms using Singapore as their regional HQ and, in addition to this, the Wealth Management sector has experienced a growth rate of 22% AUM, twice the global average for the sector.”

He continues: “These new industries growing their presence in Asia, with Singapore as their base, is one of the key drivers behind the continuous flow of talent into the country and the range of opportunities is making Singapore a very exciting destination to consider for international tenure.”

Technology Bid Manager, Ben Morrell moved from Sydney to Singapore in August 2011 because it offered him access to a larger, faster-growing market. “There are 2.5 billion people in Asia, compared to 29 million in Australia,” he explains. “The move has gone superbly. I’d travelled in the region before, so didn’t suffer any sort of culture shock, and I had several pre-job calls with my colleagues which helped me settle in.”

He adds: “Singapore is a great place to live. It’s compact so it is easy to get around and the infrastructure is fantastic. It’s not easy living so far away from friends and family, and it took a little getting used to having a dozen nationalities in the same office, as well as clients speaking so many different languages. But you adapt to it, just as you do to the more formal and hierarchical way of doing business here. At the end of the day, Singapore is the

fast track. If you have the right attitude, then the opportunities exist here.” Walker agrees that Singapore is a highly attractive destination and he points out that this popularity has led to changes in the recruitment sector; companies no longer need to offer relocation packages to high performers; instead these candidates are fully aware of the opportunities that a posting in Singapore can offer them.

In addition to being an attractive destination, the high quality Singaporean education system is producing a significant amount of indigenous talent, which is not only filling domestic roles but also spreading its wings beyond Singapore. “Singaporean lawyers are in high demand from Hong Kong firms,” reports Walker. “They tend to be more culturally and professionally “Westernised” than their Chinese counterparts and they also have the necessary Mandarin skills.”

Walker sums up: “If you want to come and work here you need to make it clear you see it as an important career move. You probably won’t get a relocation package, and increasingly, companies here are only looking for international talent if they cannot fill a vacancy from the domestic talent pool. So the competition for roles has increased and the roles will go to the best profiles with the clearest motivations and a commitment to stay for a reasonable length of time.”

Country spotlight

Singapore

S he UK is a major economy – the sixth largest in the world – and, situated as it

is in between the time zones of North America and South East Asia, it is a prime location for investment by global corporates and London is one of the major financial centres of the world.

Daniel Fox, EMEA Director at Hydrogen, says: “The UK economy is heavily concentrated on London, and there are few places in the world that are as appealing to live and work. Because it is at the centre of so much of the world’s business activity, it is a great place to come and take your career on to the next level.”

He continues: “Outside of work it is a city packed full of culture, new experiences, and people from every corner of the globe. There is something for everyone in London. What is more, it is considerably easier to get a visa here than it is in the US. In the past year the Government has relaxed restrictions a little and you no longer face the same uphill struggle as those trying to get into the US.”

That is not to say that it is perfect. Rental property is expensive. Fox also points out that workers from other countries can find it hard to adapt to the pace of work in the UK. “This is especially true in the financial services sector,” he says. “People who come here from relatively calm environments

like Australia can struggle to keep up with the frenetic rate of activity in the UK. Everything needs to be done yesterday.”

The UK draws in workplace migrants from around the world. Many come from the EU, as well as a good number from the Commonwealth, such as Australia, New Zealand, South Africa, India and the Caribbean. Then there are expats returning to the UK from roles in Asia and elsewhere.

Our survey revealed that the UK is the third most popular place in the world for people to live and work. Fox reports that companies in the technology, oil and gas, and pharmaceutical sectors continue to recruit, while companies in the financial services sector remain cautious.

He concludes with this advice: “If you want to secure a role in the UK, you need to demonstrate to your prospective employers that you are committed to the move. Employers don’t want to be recruiting for senior roles once every three years; they want long-term players. Often people find the UK is a far better place to live than they expected. Many people say they are looking to come here for three to five years, but our survey reveals that 84% of them are still here after five years.”

Country spotlight

United Kingdom

T“The UK economy is heavily concentrated on the capital, London, and there are few places in the world that are as appealing to live and work. Because it is at the centre of so much of the world’s business activity, it is a great place to come and take your career on to the next level.” Daniel Fox, Director EMEA Hydrogen

25

he Hydrogen Global Professionals on the Move Report 2012 is based on the

results of a major online survey that ran during November 2011 and attracted 2,353 responses from professionals in 85 different countries working in the legal, finance, business transformation, transformational technology, oil & gas, infrastructure, pharmaceutical, HR, and trading and advisory sectors.

The online survey was distributed using business social networking sites, databases from Hydrogen Group, and alumni of ESCP Europe.

The survey was conducted by a consultancy project team from ESCP Europe and examined the opportunities and motivations of mid and senior level professionals working abroad.

23% of the respondents were from the United Kingdom, with the remaining coming from a fairly even spread of countries in Europe, Australasia, North America, the Middle East and Asia.

The respondents were mainly mid-senior level professionals, earning in excess of USD51,000 per annum, the average being USD126,301. 99% had qualifications of a bachelor degree (or equivalent) or above.

78% of the respondents were over the age of 30 and 82% had five or more years’ work experience.

The gender breakdown of the respondents was 73% male and 27% female.

970 respondents were already overseas and of the 823 that stated their gender, 632 were male and 191 female.

Appendix T

Gross annual income level (USD)

Age

Number of years working

Education

Hydrogen is a global specialist recruitment business listed on the London Stock Exchange. We build strong relationships with clients by finding specialist candidates that they have difficulty sourcing themselves. We have more than 350 staff, placing candidates in over 50 countries.

Each of our consultants is part of one of our global practices covering both professional support services (Business Transformation, Finance, HR, Legal, Trading & Advisory and Transformational Technology) and the technical and scientific market (Infrastructure, Mining, Oil & Gas and Pharmaceutical). They combine international reach with local expertise and specialist knowledge.

Whilst many specialist recruiters are location focused, Hydrogen believes that the best way to deliver service to its clients and candidates is to base our offering around these specialist practices. By joining up our practices and using the latest technology, we can provide clients with global visibility of the best candidates.

www.hydrogengroup.com

ESCP Europe is the world’s oldest business school. Founded in Paris in 1819, the School provides postgraduate and executive-level business education at five European campuses (Paris, London, Berlin, Madrid and Torino), and globally via a broad network of academic partners.

www.escpeurope.eu

Hydrogen Group and ESCP Europe

For more information please contact Alex Bigland at Hydrogen [email protected] or +44 (0)20 7090 7739

less than $25k

$26k - $50k

$51k - $75k

$76k - $100k

$101k - $125k

$126k - $150k

$151k - $175k

$176k - $200k

greater than $200k

declined to comment

less than 1yr

1 - 2yrs

3 - 5yrs

6 - 10yrs

11 - 15yrs

16 - 20yrs

21 - 25yrs

26 - 30yrs

31 - 40yrs

41 -50yrs

21 - 30yrs

31 - 40yrs

41 - 50 yrs

51 - 60yrs

61 - 70yrs+

bachelor degree

masters degree

phd

mba

professional qualification

other

3%9%

13%

15%

7%7%

10%

12%

12%

12%

4%11%

19%

18%

12%

12%10%

8%

3%

3%

29%35%

5%8%

6%17%

22%34%

24%16%

4%