Hydrogen group global mobility report

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Global professionalson the move—2013

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Contents

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03 04

05 06

07 08

09 10

International experience - key to career success

Developing a global professional talent market

Barriers to relocating

Professionals stay abroad longer

Reversing the brain drain - the return of the Asian expat

Recruiters play a key role

Why relocate?

Where do people want to go?

Global magnets for professionals - the rise of the tech hubs

Women relocate earlier - at what cost?

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Global professionals on the move 2013

Executive summary

ESGlobal professionals on the move

There are now over 200 million people across the globe living and working abroad, more than double the figure 25 years ago. People’s careers are no longer constrained by the opportunities provided in their home country and individuals are increasingly able to move around the world to take advantage of the global hubs of excellence that have emerged.

The fourth annual ‘global professionals on the move’ report is set against this background of increasing global migration. Its aim is to look specifically 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.

Since the report’s inception we have seen professionals increasingly recognise the importance of international experience. This year 92% of respondents were either currently working abroad or considering it. In addition, 66% thought that their company also viewed international experience as important or very important. Both these figures show that people understand the value of having international experience.

So, what is the value that international experience gives to an individual? This year’s results show that the prime motivators for moving abroad remain improved career opportunities, new experiences and greater earning potential and it appears that the experience lives up to expectation, both personally and professionally. 83% of those working abroad believed it had accelerated their personal development and 77% thought it had benefitted their career.

In fact, once individuals have made the significant decision to work abroad, they are in no hurry to return home. 86% of those who had moved away said that they wished to stay abroad and 52% said that home was wherever they were currently living or anywhere in the world. It appears that home is increasingly wherever the job takes you.

That said, family is still the prevailing obstacle to relocation and 45% of respondents cited family related issues as the main barrier to moving abroad. As companies look to send an increasing amount of talent to emerging markets they may need to consider how best to incentivise people to get over this hurdle and what support they can offer to make it easier once the move has been made.

Over the last few years the report has shown a rise in the age of those moving abroad. Conversely though, women continue to relocate earlier than men. A third of female respondents working abroad had relocated by the time they were 30, compared to only 17% of men. 70% of those working abroad between the ages of 51 to 60 were men. In a world where demand is outstripping the supply of talent, what can be done to make sure that this talent pool of women is not overlooked?

In the past, trends have shown a predominance of West to East professional migration. However the balance of global economic power is changing and with it new patterns are beginning to emerge. In the quest to fill their increasing skills gaps with home grown talent, a new trend in global migration shows the new Asian ‘powerhouse’ economies giving preference to ‘return-homers’ – nationals with international experience.

In a professional landscape offering more global opportunities than ever before and where the importance of international experience is increasing, this report provokes the debate for clients on how to successfully attract and retain the best global talent. Similarly, for candidates it explores not just the challenges to moving abroad, but the overwhelming long term career advantages that an international move delivers.

Hydrogen—May 2013

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International experience - key to career success

Globalisation has many attractions not least for skilled professionals the opportunity to live and work overseas. Increasing numbers of professionals from all sectors are embracing it for the personal and professional transformation it can bring.

Employers need skilled individuals around the globe to support and grow their operations. Alev Kilic, the tutor at ESCP Europe supervising the research on which the report is based, explains: “Despite the recession and economic crisis, I believe that rather than abating, the global war on talent is about to heat up. All the forecasts point towards a huge increase by large companies in their global mobility assignments between now and 2020, particularly in emerging markets.”

Professionals also recognise that time spent working overseas has become a key ingredient in career success, as many companies now prefer candidates for senior roles to have international experience. Two thirds (66%) of those responding to the survey across all business sectors said their employers regarded international experience either as important, or as very important. 59% of our clients confirm this. Alev Kilic adds: “Businesses across the globe value professionals with the breadth of vision, flexibility and added skills which working in geographically and culturally diverse environments brings.”

Of those who responded to our 2013 survey, 38% were already working abroad, and a further 54% said they would consider doing so. This means that 92% of all respondents understood the value of international experience and, except for a marked difference in gender data, more professionals at all levels and ages wanted to go abroad, and once there, wanted to stay longer.

Having relocated with his family not once but twice so far, geologist Domingo Antonio Amador is an example of a professional who clearly appreciates the value that global mobility can bring, both on a personal and on a professional level. “My wife and I had decided to leave our home country of Mexico as we did not consider it a safe environment in which to bring up a family”, Antonio explains. “As I am Spanish as well as Mexican, we initially moved to Spain.”

“When the economic situation in Spain declined I looked around for other options. I found two possible positions, one of which was in Norway, where we moved last June. It has worked out very well indeed for us. My initial seven month contract was made permanent in the fourth month, and my wife has now also found a job here. We are enjoying living in Norway and plan to spend several more years here.”

Antonio is just one example out of many. The benefits for those who relocate are overwhelmingly positive: 83% of our survey respondents who were already abroad said they believed relocating had accelerated their personal development, 77% said it had benefitted their career prospects, and 72% said it had enhanced their salaries. It is therefore no surprise that 98% of those who had relocated were ready to recommend the experience to others, and that compared to last year’s figure, the number of those abroad who wanted to stay longer had almost doubled from 37% to 86%.

01Working abroad brings personal and professional benefits

Survey respondents consider international experience important to their employers

66%

59%

Hydrogen clients consider international experience as important for professionals

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72%

83%

77%

Benefitted career Enhanced their salaries

98%

Would recommend the experience to others

Accelerated personal development

Would consider working abroad

Alreadyworking abroad

38%

54%

Wouldn’t work abroad

8%

5

A continuing trend of the survey is the changing pattern of global professional migration. Gone are the times when the standard form of international professional experience was a secondment in an overseas office for a year or two in early-to-mid career and then to return home. Companies and institutions increasingly require top talent in many locations across the globe, and skilled individuals can move more freely than ever before. The right mixture of talent, qualifications, experience and hard and soft skills now opens up opportunities previous generations hardly even dreamed of. Some industries of course always showed a different pattern of global assignments, for example the oil and gas industry which needed professional staff to go wherever exploration and production were underway, but we are now seeing a deep-seated and ongoing transformation.

Not only are increasing numbers of professionals relocating to work abroad, but the survey results show that people’s approach to moving around the world has changed. 52% of those surveyed defined home as “wherever they were currently living” or “anywhere in the world” and 86% of respondents were prepared to stay longer than they had intended. In other words, the professional jobs market is becoming truly global, and the majority of those working in it no longer define themselves by reference to their place of origin.

Chris Chan, a senior financial services professional with over thirty years of experience in Europe, who recently relocated back to his home country, Malaysia, is a good example of this: “I have an apartment in London, one in Germany, and one in Kuala Lumpur. I don’t really know where ‘home’ is. I think I have become a global citizen. I can live anywhere.”

Pricewaterhouse Coopers’ Talent Mobility Report 20201, which found that global assignee levels had increased by 25% over the last decade, predicts a further 50% growth in overseas assignments by 2020. It notes that corporate mobility strategies will need to become more sophisticated and complex as organisations have to meet these growing deployment demands. It also found that the millennial generation, which will make up the majority of all international assignments by 2020, increasingly view organisations — and the world — without boundaries, and international assignments as an important part of their own personal development.

Our research confirms this, showing that professionals everywhere are embracing the change. Growing numbers are happy to follow the work wherever it leads them, and for many of them, careers will be portfolios of increasingly senior assignments in different locations. Three quarters of those we surveyed who were willing to relocate said they intended to stay abroad for a minimum of three years. The majority of those already living and working abroad (63%) had done so for more than six years, and 51% said they said they were considering applying for permanent residency in the country they were currently living in.

Professionals today have the skills and the appetite to travel the world in search of the experience they need to enhance their career prospects. Companies wishing to see the globe as their recruiting ground need to consider how best to harness this growing enthusiasm and attract all the skills they will need to fill their openings across the globe.

—1Pricewaterhouse Cooper, Talent Mobility Report 2020 – the next generation of international assignments, 2010

Developing a global professional talent market

02Professionals are increasingly prepared to travel the world for career opportunities

“I have an apartment in London, one in Germany, and one in Kuala Lumpur. I don’t really know where ‘home’ is. I think I have become a global citizen. I can live anywhere.”

Chris Chan, Europe to Malaysia

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75%

How long professionals intend to stay abroad

52% Of those surveyed said home was “Anywhere in the world”

Respondents abroad are considering applying for permanent residency½ of

allSix years63% of people already working abroad have stayed for more than six years

Willing to relocate said they intended to stay abroad for a minimum of three years

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Why relocate?

03What motivates people to work abroad?

Deciding to live and work abroad is a major step in anyone’s life, and each decision is personal and influenced by many factors. However the survey shows that there are some strong common drivers and the top ones have been consistent over the years. This year the top three motivators for relocating are improved career opportunities (18%), new experiences (16%) and greater earning potential (16%).

However, when broken down by age categories, the survey revealed variations in the top motivations for relocating. While a higher percentage of younger professionals seek new experiences and are more concerned with their personal development than with earning money, the main reason to relocate for 31 to 40 year-olds is income (19%). This is not surprising, as they tend to have accumulated highly marketable skills and experience, and at this age may also have a family to support. Among 41 to 50 year-olds relocating, 22% said their prime motivator was seeking new experiences, followed by

15% who wanted to improve their quality of life, perhaps indicative of the traditional ‘mid-life crisis’. Many of those relocating between the ages of 51 and 60 wanted to give something back by offering their considerable expertise as volunteers, maybe coinciding with when children have flown the nest.

Although 57% of respondents stated that the economic climate had no influence on their decision to relocate, it is interesting that 41% of those aged 21 to 30 reported that it had.

Alev Kilic, supervising tutor for the team at ESCP Europe, who conducted the survey, commented: “The age distribution of those answering the question concerning economic climate, as well as the desire to relocate to countries perceived to be economically safer, suggests that increased mobility in the young is at least partially attributable to the greater difficulties they face identifying suitable opportunities closer to home. The fact that younger respondents also cite lack of job opportunities as their greatest potential

barrier underlines this point. Similarly I think the willingness we observed this year in professionals to stay abroad longer may in some cases be a response to economic uncertainty in their home countries.”

Andreia Rodrigues is a good example of economic climate making younger professionals more willing to relocate. Andreia’s move from Portugal to Switzerland was prompted by her wish to improve her career opportunities, and her awareness of the economic conditions in her home country: “I was employed as a corporate auditor in Lisbon and was growing concerned about lack of progression. Portugal currently also faces a lot of economic and social problems. So I accepted an offer to work for a large global company in Lausanne. I now have far more opportunities to progress. My company values talented people, and you have opportunities to try out different types of work. Depending on your training and abilities, you could go right round the world with them.”

16%

Career opportunities 18%

New experiences

Greater earning potential 16%

Top three motivators for relocatingMy company values talented people, and you have opportunities to try out different types of work. Depending on your training and abilities, you could go right round the world with them.”

Andrea Rodriguez, Portugal to Switzerland

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Barriers to job

Insufficient relocation package

Difficulties with visas and work permits

22% 19% 19% 14%

The economic climate

Insufficient job opportunities

Top barriers to finding an overseas job

What prevents professionals from relocating is just as interesting as what makes them move. Significantly the proportion of respondents who thought there were no real barriers at all to relocating rose from 4% last year to 12% this year. In other words, the perceived barriers to relocating are actually reducing.

That said, family reasons remain the chief obstacle to relocating, by a significant margin. 45% of respondents cite family considerations as their main potential barrier. The importance of this factor rose by 12% this year compared to last year’s results. Interestingly, of those already abroad, both British and French respondents put the highest value on family and relationships.

There were no great differences between

genders regarding family as the chief barrier. Of those already abroad, 46% of men and 42% of women cited it as having been their biggest potential obstacle. However, the priority of other factors varied between genders. For men, family was followed by insufficient relocation packages, relationships, and worries about lack of cultural fit. For women, family was followed by relationships, visa issues and insufficient relocation packages.

When specifically looking at the practical barriers to finding an overseas job the emphasis changes. 22% of respondents said insufficient job opportunities, 19% difficulties with visa requirements or work permits, 19% economic climate, and 14% insufficient relocation packages were the most important potential

barriers to relocating. Here the breakdown according to age was revealing.

The young were put off by the lack of specific job opportunities in their sector, 21-30-year-olds citing this as their biggest obstacle. Those in mid-career, aged 31 to 40, were most worried about the technicalities of entry – the difficulties gaining visas and work permits. Among older professionals, 41-50 year-olds showed most concern for the economic climate, as did 51-60 year-olds, who were equally worried about the lack of specific job opportunities. Employers need to be aware of these perceived barriers across the different categories of professionals. This means they can concentrate on both reassuring candidates about the overriding benefits of a move to a new country and removing any obstacles they can.

Barriers to relocating

04What makes people hesitate to work abroad?

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The top 15 destinations in this year’s survey remain largely the same as previous years, showing that today’s professionals still favour relocating to traditional expatriate destinations. The United States remains the destination of choice for the highest number of global professionals, in fact increasing its lead by 7% to 23%, followed by the UK and Australia. Even despite the tougher economic climate it seems that the United States never loses its appeal as a land of opportunity.

Our survey shows the UK and Australia neck and neck, although Australia dropped back to third place this year. Looking at specific sectors, this year the UK ranked second choice for professionals in law, life sciences and technology, and fourth for those in finance. Australia, consistently popular as it combines highly developed professional sectors with a high quality of life, ranked second for oil and gas, third for finance and life sciences, and fourth for law and technology.

By 2020 emerging markets will account for more than half of the world’s GDP, yet key growth market countries like China feature

much lower down on the survey respondents’ wish list, with China only in 11th place and Brazil in 12th. South Africa is the only African country listed, in 17th place. It seems that in spite of the growing opportunities that these countries present, they are not yet seen as desirable by professionals considering relocation. This poses a challenge for the companies that need employees to relocate to these destinations over the coming years. According to Ernst & Young’s Global Mobility Effectiveness Survey 20121, the number of individual assignments to emerging market countries had increased on average by 16% from 2011, and were predicted to rise by 27% in the next three years. With this in mind, if there is an emerging disconnect between where employers need skills and where professionals wish to go, as our results suggest, employers may have to work hard to educate and incentivise them to go to new locations. They will need to offer support to employees and their families to enable these transitions to be made smoothly.

—1Ernst & Young, Driving Business Success, Global Mobility Effectiveness Survey 2012

Where do people want to go?

05The top 15 most popular destinations for professionals to live and work

01

USA02

03

Top three countries to migrate to based on more than 2,000 people surveyed in 90 countries

UK

AUSTRALIA

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Top 15 most popular destinations

13% Australia

+4% increase

03

13% UK

+4% increase

2012

022012

24% USA

+11% increase

2012

01

6% Switzerland

+2% increase

06

8% Canada

+3% increase

05

9% Singapore

+3% increase

04

5% UAE

+2% increase

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5% Hong Kong

+1% increase

2012

08

5% France

+1% increase

2012

07

3% Brazil

+1% increase

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3% China

+1% increase

2012

11

4% Germany

+1% increase

10

2% New Zealand

-1% decrease

15

2% Spain

-1% decrease

142012

2% Italy

No gain

2012

132012

2012

2012 2012 2012

2012

2012

Up

No change

Down

01 03 02

04 05 06

08 07 09

10 13 14

15 11 12

Key Change in ranking 2012-2013

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Professionals stay abroad longer

06Which countries encourage a long term stay?

One of the most marked trends in this year’s survey is professionals wanting to stay abroad longer than they first intended. While this can be seen in the context of an emerging global professional class willing to work and live abroad for longer than ever before, it naturally also says something about the attractions of the countries.

Our survey showed 86% of those already abroad wanting to stay longer than they originally intended, which is not surprising as the majority found it had increased both their career prospects and earnings potential, and had accelerated their personal development. The locations boasting the highest proportion of professionals wishing to extend their stay were the United Arab Emirates (UAE), Hong-Kong and Spain, followed closely by the United States, Australia, Germany and Switzerland.

Each of these has its own particular advantages. The UAE offers professionals a desirable lifestyle in an international, multicultural country, which boasts a warm climate, stunning architecture, great shopping and leisure facilities, international schools and world-class sporting events. On the financial side, expats do not pay taxes, and businesses may be up to 100% foreign owned. Our survey found the UAE particularly popular with those working in finance and in oil and gas.

Dan Church, Director of Power at Hydrogen commented: “The UAE’s location has allowed it to become a successful hub for a variety of industries which means there are increased

opportunities to attract people to the region. Once there, people discover that there is a great lifestyle available, whatever stage of life they are at. Combined with the fact that it is within easy flying distance to a host of other attractive global locations, it is no surprise that people find they want to stay for longer. We are also seeing the Saudi region experiencing high volumes of projects which enable candidates to get more regional experience while still living in the UAE.”

The second most popular place where professionals want to stay longer is Hong Kong. This vibrant city and gateway to China has retained its fascination over many years. Simon Walker, Managing Director (APAC) of Hydrogen commented: “Hong Kong remains a top location for finance professionals, and it is a great place to live. It’s not only just about one island. It offers extraordinary variety, and whether you are a single professional in your mid-twenties, or an older professional with a large family, you will find the right environment. The experience you get depends on the area and the reason you are in Hong Kong, but whatever that is, you will enjoy an exceptionally high standard of life.”

Spain may be going through economic difficulties, but with a good lifestyle, weather, food and culture, it is easy to see why professionals wish to stay longer than intended. It is perhaps surprising that the United States which tops all our survey’s lists in terms of popularity with professionals across the board came only fourth, with Australia following in fifth place. Australia is another perennially popular

location for professionals to stay longer, attracting in particular those working in oil and gas, life sciences, finance and the law.

James Whiley, a lawyer who recently moved from London to Sydney to work as a senior consultant in private client law: “I made myself check out other offshore places, but frankly there was no contest - they wouldn’t have offered me the same lifestyle. I loved Australia when I came here on a working holiday in 2005. If I hadn’t had my legal practice course and a contract with a leading law firm in the City of London already lined up at that stage, I would probably have tried to relocate there and then. The people, the many things to do at weekends, the weather - it’s a kaleidoscope of so many things I like here. My partner wanted to move to Australia too, and has now found a good job here in her profession as a graphic designer and we are considering applying for permanent residency and in the long run maybe citizenship too. ”

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86%Stay abroad longer than anticipated

UAE

Hong Kong

Spain

Places where professionals stay longer

01

02

03

Top ten long stay locations

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The popularity of certain locations with global professionals is not chance. It is largely down to being centres of excellence, global hubs for particular industries. The United States occupies a unique place as the top global magnet for survey respondents from all sectors. Despite the financial crisis and the recession, the American Dream continues to exert a fascination on people across the globe, making them see the United States as the quintessential land of opportunity.

This is underpinned by more tangible reasons. The United States is still the world’s largest economy and has a wealth of centres of excellence for all industries. It has also showed signs of pulling out of recession and getting back to moderate growth earlier than Europe. Therefore it has continued to attract many professionals despite the potential difficulties of obtaining work permits or residency there.

Recently however, certain sectors, such as technology, have seen a challenge to the United States’ dominance. The UK has emerged as a leading European technology hub, second globally only to the United States. This is reflected by technology professionals giving it second place as a desired destination in this year’s survey,

and is a view shared by Michal Tekel, who is originally from Slovakia and studied in Prague and Amsterdam, where he also worked before relocating to London to work as a development operations engineer. “The UK is a very dynamic market for IT”, he says, “especially London, which I would say is currently the best location in Europe for IT.”

Dan Fox, Managing Director of Hydrogen’s Technology Practice, fills in the background: “The technology sector is growing rapidly across the world, and in the UK in particular. In 2012 the global technology market was estimated to be worth 50 billion dollars. But it’s not just that – people’s perception of technology has changed. It’s no longer geeky to be in technology, and if you are at the forefront of new developments, it’s an incredibly exciting space to be in.

“The US is still the dominant force, but the UK is on the march. The US has Silicon Valley and San Francisco, the UK has Silicon Roundabout near Old Street, London, where you’ve got all these exciting tech firms opening. And then you’ve got Asia as the world’s third biggest technology recruitment region. We’re seeing a lot of Europeans coming to work for exciting fast-paced companies in the UK, and we’re also seeing a lot of the UK workforce going

out to Asia. It’s all about wanting to work for the up-and-coming companies.”

Website designer Tjobbe Andrews, who has been working in the UK for the last twelve years, comments: “England has the best design agencies in the world, whether you’re looking at London, which has loads, Brighton, or even smaller towns, each location has at least one really good agency.”

In Asia, Singapore has emerged as the leading technology hub as well as a key finance one. Simon Walker, Managing Director Asia, Hydrogen comments: “Singapore is very high up the value chain in terms of what it does in technology. Singapore has an exceptionally well-educated workforce, is a very innovative country and is producing the new tech entrepreneurs and engineers who are creating much of the high tech industry of the future, for example in life sciences, medical equipment and biotech. However, its neighbours also have an extremely good tech background, such as Malaysia with the Cyberjaya tech park development just outside Kuala Lumpur, or the Philippines’ growing outsourcing industry.”

Global magnets for professionals - the rise of the tech hubs

07The top global magnet countries by sector amongst professionals

USA

UK

Singapore

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$50bn

Estimated value of technology market in 2012

Top three technology magnets

Finance Oil and Gas

USA Singapore

Australia

USA Australia

Brazil

Life Sciences Legal

USA UK

Australia

USA UK

Hong Kong

Global magnets across different sectors

USA

UK

Singapore

Technology

1st

2nd

3rd

“The UK is a very dynamic market for IT especially London, which I would say is currently the best location in Europe for IT.”

Michal Tekel, Slovakia to UK

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Reversing the brain drain - the return of the Asian expat

While many professionals still desire to relocate to traditional Western business hubs such as the United States, the UK and Australia, the shifting global economic balance means increasing numbers of professionals will be needed to work in fast-growing emerging markets.

These economies, including many of those found in Asia, already account for more than half the world’s steel and oil consumption, car sales, and foreign exchange reserves – even mobile phone subscriptions.1 These areas will see continued rapid growth but at present they do not have the skillset within the existing local populations to support it. Forward-looking multinational businesses and national governments are paying close attention to their global mobility strategies and trying to plan ahead to meet this demand.

While there is, and will continue to be, a wealth of opportunities for global professionals from the West to relocate into emerging economies, many of these fast growing Asian economies are begining to address these skill gaps by looking to fill them with home-grown talent with international experience. Simon Walker, Managing Director Asia, Hydrogen explains: “Asians who have worked away from home, and whose home countries are now becoming economic powerhouses, are exceptionally valuable as they combine international experience with an understanding of their local culture, which is critical when doing business in Asia.”

He adds that the precise mix of incentives used to win back this talent varies

across countries: “Different countries do different things. Malaysia has its Returning Expert Programme, Indonesia has a similar programme, but there is now definitely a conscious drive in all Asian countries to get talent to return home.”

One returning expat is Chris Chan, who is a senior financial services professional with over thirty years of experience in key markets across Europe including London, Berlin, Paris and Amsterdam. A Malaysian by origin, he recently relocated from the UK to Malaysia to take up a role as risk business lead for a major bank. “While I moved back to Malaysia for family reasons, you will find that many companies now have unofficial policies to prioritise the recruitment and retention of returning national talent.”

Simon Walker does not see this as limiting future expats from the West. “I think there will be an increase in employers across the region wanting the return-homers. I also think that they will start profiling the type of expat they want. Those with a distinct advantage will be expats who have lived or are currently living in Asia and have an understanding of the local culture, and maybe also the language. So when you look at the local market, they will treat an expat who has been there a number of years and has the relevant experience exactly the same as a return-homer. It’s the skills and the local knowledge that will count.”

— 1Deloitte, Strategic Moves 2012, The Global Mobility Island

08How Asian countries are tackling their skills shortage

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Why Asia is seeking return-homers

Skilled professionals

Lived / living in Asia

Understand local cultures and customs

International business experience

Speak the language

Emerging markets

Half of the world’s GDP from emerging markets by 2020

50%

Tax break programme for Malaysian return-homers

Income tax rate for Malaysians returning from overseas

Tax rate 15%

“Asians who have worked away from home, and whose home countries are now becoming economic powerhouses, are exceptionally valuable as they combine international experience with an understanding of their local culture, which is critical when doing business in Asia.”

Simon Walker,Managing Director Asia, Hydrogen

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Women relocate earlier - at what cost?

This year’s figures continue the trend in last year’s survey which showed that women think about relocating, and in fact do relocate, earlier in their careers than men.

56% of female respondents said they considered a move within the first five years of their careers, compared with 48% of male respondents. A third of female respondents had relocated between the ages of 21 and 30, but only 17% of men. The men surveyed tended to relocate later, a considerable proportion at a far higher age than most women, with 17% of the men, and only 5% of the women, relocating aged 51-60. Add to this the finding that of the 8% of respondents who said they would not consider relocating, 90% of them were women, and the picture clearly emerges: with exceptions, women will either go abroad early, or not at all.

There are explanations for this; one being that if women are considering having a family, they often want to gain their overseas experience early, before they do so. This may reflect concerns at the potentially increased difficulty of combining family commitments with working abroad at more senior levels.

The consequence is that many more men than women currently benefit from international experience. Two thirds of those professionals surveyed who were already living and working abroad were men, and this gap widened further up the age scale, with 70% of those aged between 51-60 being men.

Andreia Rodrigues, who recently moved from Lisbon to Lausanne, expresses the dilemma that women face very clearly: “My move to Lausanne means I shall have to postpone some other dreams for the moment, and now is not the right time for me to have children. Men do not have these problems. They can combine their personal lives more easily

with their professional lives, but it’s more complicated for women. In some ways it would probably have been perfect to make this move five years ago, maybe after college. But I am still on track. I am 32 now, and I am facing a new challenge, I need to prove myself, and I am looking forward to it.”

On the basis that three quarters of those interviewed expected international experience to improve their career prospects, this finding gives employers a lot to think about. The fact that there are women relocating at earlier ages show that women are no less adventurous or less inclined to work abroad than men, rather they have identified longer term hurdles and are acting before these hurdles get in the way. However if considerable numbers of women are electing to forego this experience at more senior levels, are these women not missing out on valuable experience which would help fit them for executive and board level positions later?

This is an area in which employers and recruiters might collaborate to find ways of breaking down female professionals’ barriers to relocating and devising specific incentives that would make more senior women consider relocating at times crucial to their careers. These are likely to be more about flexible working arrangements, childcare and schooling than about salary and bonuses. As Tim Smeaton, Chief Executive Officer, Hydrogen points out: “We know that demand for skills across many sectors is outstripping supply and so it is important that companies do not create false barriers for women; rather we need to find ways of working around these perceived barriers. By doing this we will ensure that a new pool of senior professional talent is opened up to work across the globe.”

09Women relocating early in their careers leads to a talent shortage later on

“We know that demand for skills across many sectors is outstripping supply and so it is important that companies do not create false barriers for women; rather we need to find ways of working around these perceived barriers. By doing this we will ensure that a new pool of senior professional talent is opened up to work across the globe.”

Tim Smeaton,Chief Executive Officer, Hydrogen

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Relocation ages

38%

24%

17%

33%of women, compared

to 17% of men relocate between the ages

of 21-30

31-40yr 41-50yr 51-60yr

Women

Men

37%

22%

5%

19

Recruiters play a key role

Employers across the globe consistently cite the lack of high quality specialist talent as the biggest hindrance to growth. 35% of all employers globally are currently unable to source the talent required by their organisations1, and a big challenge for multinational companies is finding the talent in local markets to expand their businesses2.

This year’s report highlighted the continuing importance of specialist recruitment agencies and headhunters in matching global professionals to employers in need of talent. They cater for professionals in niche markets and are able to take the pain out of locating and hiring them for employers. A specialist global recruiter knows where there are shortages in specific skills, and where these skills are available and they are able to utilise their access to global talent

pools. Knowing precisely what employers are looking for in candidates, and knowing candidates’ motivators and availability, is also crucial to finding that perfect match.

Additionally, recruiters specialise in identifying exceptional, hard to find candidates whom employers cannot find themselves. This kind of candidate will not reply to any advertisement, as most of them will not actively be seeking to move. LinkedIn® research shows that 59% of all professionals are “passive candidates” – not actively looking but happy to be approached for new opportunities - compared to only 21% being “active”.

Ian Temple, Chairman, Hydrogen explains that specialist recruiters provide even more than this: “Of course the client benefits from

the recruiter’s access to the widest possible talent pool in the area of expertise they require, but the specialist recruiter’s job is far more complex than just finding them a candidate with the right skills mix. Having studied the client’s business and cultural requirements, the recruiter is on the lookout for professionals with the right skills who will also adapt well to the culture of this company, this particular market and the wider cultural environment in the country.”

For candidates, our survey shows using professional recruiters is the fastest route to finding suitable positions. The percentage of respondents who had found their position either through a headhunter or a professional recruitment agency was 37% this year, the highest percentage yet, approximately 21% having used recruitment

10Candidates have greater chance of finding the right overseas job using global specialist recruiters

Press adve

rtising

Social netw

ork

Current e

mploye

r

Online adve

rt

Directly

approaching

potentia

l em

ployer

14%13%10%3%1%

How did you find your current job?

20


consultants and 16% headhunters. Three quarters of those respondents who had relocated using a recruitment consultant had found their job within six months of starting to look. The majority (55%) of them found theirs in just two months.

Specialist recruiters give candidates access to opportunities they could not find in any other way. In many cases they may actually be able to find them their dream jobs. Many also find it convenient to have the recruiter negotiate their package at the outset, without any damage to their relationship with their new employer.

Ian Temple adds: “There is a lot at stake, and the recruiter must adopt a tailored approach. Relocating abroad is an emotionally challenging time for a candidate, and it may

come at a commercially challenging time for the client. A bad experience impacts not just on the candidate and the employer. The skilled recruiter takes the time to explore both sides’ expectations, ensuring there is a sound basis for a successful relationship. We try to act as partner to both, and we will give honest advice to both if we think the match is less than ideal.”

This helps explain why the predicted decline in the usefulness of recruiters in the wake of the rise of social networks such as LinkedIn® has not come to pass. At this level, there is no substitute for the first-hand and detailed knowledge of both sides’ requirements which can really only be acquired face-to-face.

Benoit Charles, a project engineer for oil and gas who relocated from France to Malaysia,

is full of praise for the help he got in finding a perfect match in the shortest possible time: “I was going on holiday to South East Asia for two weeks, and as I was looking for a change, I was open to being interviewed in Malaysia and Singapore whilst I was there. I contacted Hydrogen in Singapore on a recommendation and I was interviewed by five companies in a fortnight. I returned home with three job offers, one of which I accepted. This was such great service I have ended up recommending Hydrogen to all my colleagues and friends looking to move.”

—1Manpower 2012 Talent Shortage Survey2Economist Intelligence Unit

Recruite

r / H

eadhunter

37%

26%

10%

9%

55%0-2 months

3-6 months

7-12 months

more than one year

Amount of time taken for recruitment consultancy to facilitate relocation

21

Appendix

The Hydrogen ‘global professionals on the move’ report 2013 is based on the results of a major online survey that ran during November 2012 and attracted 2,146 responses from professionals in 90 different countries working largely across the legal, finance, business transformation, technology, oil and gas, power, life sciences, mining and trading and advisory sectors.

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

The survey was conducted by a consultancy project team from ESCP Europe and examined the opportunities and motivations of highly qualified, high earning professionals working abroad.

31% of the respondents were from the UK,

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 to senior level professionals earning in excess of USD51,000 per annum, the average being USD109,300. 94% had a bachelor degree (or equivalent) or above.

77% were over the age of 30.

The gender breakdown of the respondents was 68% male and 32% female.

807 respondents were already overseas.

APKey data on respondents from the 2013 survey

4% Other

1% Board level1% Intern

8% Self-employed

9% Director

10% Junior manager

15% Employee

Senior manager 16%

Specialist 18%

18% Middle manager

Professional level

22


Less than $25k

$26k - $50k

$51k - $75k

$76k - $100k

$101k - $125k

$126k - $150k

$151k - $175k

$176k - $200k

Greater than $200k

Declined to comment

Under 21yrs

21 - 30yrs

31 - 40yrs

41 - 50 yrs

51 - 60yrs

61 - 70yrs

Above 70yrs

Bachelor degree

Masters degree

PhD

MBA

Professional qualification

Other

5.2%11.3%

13.3%

7.1%7.1%

8.6%

11.4%

12.1%

11.7%12.2%

32%28%

4%11%

7%19%

22.6%

0.7%

37.3%23.1%

13.1%3.1%

0.1%

Gross annual income level (USD)

Age

Education

23

Hydrogen is a global specialist recruitment business, placing exceptional, hard to find candidates in over 70 countries. Our joined up practices combine international reach with local expertise and specialist knowledge.

Whilst many recruiters are location focused, Hydrogen believes the best way to deliver service to its clients and candidates is to base our offering around these practices, which cover both Technical & Scientific (Power, Mining, Oil & Gas and Life Sciences), and Professional Support Services (Business Transformation, Finance, Legal, Trading & Advisory and Technology). By being practice focussed and using the latest technology we provide our clients with global visibility of the best candidates.

We invest in building strong relationships with candidates over the long-term, not just when they are actively looking to move.

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

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