Top Banner
mapping talent in Latin America Argentina Brazil Chile Colombia Costa Rica Dominican Republic Ecuador Mexico Peru Venezuela a study to quantify and map the quality of human capital in 2008 and 2013 Developed in co-operation with the
20
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Mapping Talent in Latin America

mapping talent in Latin America

Argentina

Brazil

Chile

Colombia

CostaRica

DominicanRepublic

Ecuador

Mexico

Peru

Venezuela

a study to quantify and map the quality of

human capital in 2008 and 2013

Developedinco-operationwiththe

Page 2: Mapping Talent in Latin America

Copyright ©2009 Heidrick & Struggles International, Inc.

All rights reserved. Reproduction without permission is prohibited.

Trademarks and logos are copyrights of their respective owners.

Introduction,1

LatinAmericaTalentIndexmap,2

Findings,3

Methodology,6

TalentIndexweightings,8

Demographics,9

Qualityofcompulsoryeducation,10

Qualityofuniversitiesandbusinessschools,11

Qualityoftheenvironmenttonurturetalent,12

Mobilityandrelativeopennessofthelabormarket,13

StockandflowofForeignDirectInvestment,14

Proclivitytoattractingtalent,15

OurcapabilityinLatinAmerica,16

TheHeidrick&StrugglesTalentIndexseries,17

contents

Page 3: Mapping Talent in Latin America

If we consider talent to be a global commodity, as precious as oil or water, then it should be possible to analyze it as a commodity; to predict its supply and demand. The Global Talent Index, developed in collaboration with the Economist Intelligence Unit, explored the

distribution of talent in the world in 2007 and 2012.

WhenwedevelopedtheGlobalTalentIndex,onlythreeLatinAmericancountries–Argentina,Braziland

Mexico–wereincluded;theirlowperformancewithintheglobalcontextcameasnosurprise.TheLatin

America Talent Indexusesthesamemethodologybutallowscloserexaminationoftheregion’stalentpool

byassessing:Argentina,Brazil,Chile,Colombia,CostaRica,DominicanRepublic,Ecuador,Mexico,Peruand

Venezuela.

Inthepast,thechallengeforLatinAmericancompanieshasbeenaccesstocapitalandtechnologyin

amarketdominatedbyexporting,miningandagribusiness,oligopoliesandgovernmentcontrolled

companies.Businessinterestsweredependentongovernmentactionsandviceversa.Leadershipwas

important,butnotakeysuccessfactorinfosteringcorporategrowthandprofitability.

Unprecedentedadvanceshaveoccurredsincetheearly-1990s,helpedbytheopeningupofmarkets,

deregulation,themodernizationofeconomies,greaterintegrationandinteractionwithglobalmarkets,

thedevelopmentoflocalfinancialandcapitalmarkets,andthecreationoflargeglobalcompanies

headquarteredintheregion(‘multi-latinas’).Asaresult,leadershipandtalenthavestartedtoemergeas

importantcompetitivefactors.

The2008globalfinancialdownturnhascreatednewprioritiesandplacednewdemandsonthecurrent

leaders.Intheshortterm,companiesmaybeconcernedwithquarterlyresultsbutinthelongtermthe

differentiatorwillbetheirabilitytoidentify,developandretainhighlyqualifiedtalent.TheLatinAmerica

TalentIndexrevealssuchtalentwillcontinuetobescarceoverthenextfiveyears,posingachallengeto

companiesandeconomieseagertocontinuetheirgrowthandconsolidation.Permanentlyreversingthis

trendreliesheavilyongovernmentpolicies,businessstrategiesandculturalvalues,andpracticalresultsmay

taketimetoappear.Butassoonasawarenessisraisedamongstbusinesses,governmentsandindividuals,

andaffirmativeactionadopted,thepresentandprojectedtalentshortfallwillstarttobereversed.Thisstudy

representsanimportantfirststepinthisprocess.

Manoel Rebello,Regional Managing Partner, Latin America, June 2009

mapping talent in Latin America

Heidrick&Struggles 1

Page 4: Mapping Talent in Latin America

GuyanaVenezuela

Uruguay

Trinidad & Tobago

Suriname

Peru

Paraguay

Panama

Nicaragua

MexicoJamaica

HondurasHaiti

Guatemala

French Guiana

El Salvador

Ecuador

Dominican RepublicCuba

Costa Rica

Colombia

Chile

Brazil

Bolivia

Belize

Argentina

Latin America Talent Index map

Talent Index rankings in 2013

2008

The map uses color to represent the overall talent ranking in 2013 of each of the ten measured countries, indicating at a glance how they score.

21to

25

26to

30

31to

35

36to

40

41to

45

46to

50

51to

55red hotcooler

2 Mapping Talent in Latin America

Page 5: Mapping Talent in Latin America

findings

rank countryTalent Index

(Ti) ratingrank

change

2013 2008 2013 RC

1 Chile 54.8 57.2 n 0

2 Mexico 52.2 55.9 n 0

3 Brazil 51.8 52.8 n 0

4 CostaRica 49.6 50.1 n 0

5 Argentina 48.5 44.7 n 0

6 Peru 38.0 39.8 s 1

7 Venezuela 41.4 38.6 t 1

8 Colombia 35.9 36.9 n 0

9 DominicanRep. 28.6 29.2 s 1

10 Ecuador 29.9 28.2 t 1

Our regional grouping can be broadly

categorized into three groups of

nations. The top group consists of

five countries with a small range in

overall scores. Two of these countries,

Chile and Costa Rica are relatively

small open economies. Chile is also

the most economically developed in

terms of GDP per capita. Costa Rica is

boosted by its relatively high quality of

compulsory education and openness.

The other three countries in the

top group are the regional giants of

Mexico, Brazil and Argentina. However,

scale is not so important here. Without

the demographic category Mexico,

Brazil and Argentina would still remain

in the top five. These three are also

more developed economically with

some of the highest levels of GDP per

capita within the regional group.

Overall rankings showing movement

between 2008 and 2013 for each of the

measured ten countries

Heidrick&Struggles 3

Page 6: Mapping Talent in Latin America

Thenextgroupconsistsofthreecountries:Peru,

VenezuelaandColombia.PeruandColombiahave

similarlevelsofeconomicdevelopmentandGDPper

capita,lowerthanthoseinourtopgroup.Venezuela,

closertothoseinthetopgroupintermsoflevels

ofGDPpercapitaisletdownbyrelativelypoor

environmentstonurtureandattracttalent,thelower

internationalopennessofitslabourmarketand

verylowrelativeratesofForeignDirectInvestment

(FDI).Thesefactorsprecludeitfromreachingthetop

group.

ThefinalgroupconsistsoftheDominicanRepublic

andEcuadorwhicharetwooftheleastdeveloped

countrieseconomically.Thegapbetweenthesetwo

countriesandthesecondgroupispredominantly

causedbymuchweakercategoryscoresforthe

qualityofcompulsoryeducationandtertiary

education.

Overtheforecastperiodthereareafewchanges

inranksuggestingthatthevariationsinrelative

strengthsandweaknesseswillremainentrenched.

Collectivelythoughweareexpectingabsolute

improvementsinmostofourmeasures,especially

ineducation.Incontrast,Venezuelasuffersfroma

noticeabledowngradetoitsexpectedeconomic

prospectsandfallsonerank.Asimilarrelative

weaknessineconomicprospectsforEcuador

explainsitsfall.

Intermsofrelativegrowthpotentialfortalent

Mexicoseemstopromisethemostintheforecast

periodwithmorepotentialtoimproveonits

compulsoryeducationsystem,FDIflowsandstocks,

andgeneraleconomicgrowth.Weexpectallthese

measurestoimproveatamuchfasterratethanits

regionalcompetitorsupto2013,despitethemalign

globaleconomicoutlook;by2013Mexicoisonlyjust

behindChileinouroverallrankings.Althoughitsits

atthetopofourrankingsinbothtimeperiods,Chile

scoressurprisinglyweaklyinoneofourcategories,

thequalityofcompulsoryeducation.Thereismuch

potentialforittomovetowardsthehigherranked

countriesinthiscategory.Insodoing,Chilewould

strengthenitsfirstplaceposition.

Countrybycountryperformance

ThefindingsofthisIndexbroadlyconfirm

conclusionsfrompreviousversionsoftheTalent

Index:absoluteandrelativepoolsoftalentare

mostlikelytobefoundin,andareattractedtothe

economicallydeveloped,wealthiereconomies.

Thereisoneexception:Venezuela.Althoughitsoil

industryhasgeneratedconsiderablewealththishas

nothelpedtodeveloptheconditionsnecessaryfor

aregionallysignificanttalentpool.Overtheforecast

periodVenezuelaisexpectedtofallfromsixthto

seventhplaceintheIndex.

Chileprovidesthemostattractiveenvironment

fortalent.Despitethelowestdemographicrating

andpoorcompulsoryeducationscoresitismost

abletonurturetalent,withthehighestlevelofFDI

andarelativelystrongeconomy;itisabletouse

itsstrongermacroeconomicfoundationstoattract

talentfromoverseas.Mexicoscoresrelativelywell

comparedtoitscompetitorsinmostareasexcept

initsabilitytoattractFDI(whereitisthirdfrom

bottomin2008,thoughrisingby2013).Brazilis

supportedbythestrongestdemographicsand

thebestuniversitiesinthegroup.Brazilispoorat

attractingFDIasaproportionofitsoverallgross

domesticproduct(2ndlowest)andhasarelatively

closedlabormarketinternationally.Ifthe‘Quality

oftheenvironmenttonurturetalent’categorywas

removedBrazilwouldrankfirstoverallin2008.

4 Mapping Talent in Latin America

Page 7: Mapping Talent in Latin America

Aswehavediscoveredinpreviousglobaland

regionalversionsoftheTalentIndex,demographics

playanimportantrole.Chile,forexample,hasper

capitathebestscoresinourIndexforhumancapital,

butitsrelativelysmallsizeandlowpopulation

growthlimittheabsolutesizeofitspotentialtalent

pool.Thisholdsitbackfromwhatwouldotherwise

beamoreregionallydominantposition.Costa Rica

wouldbesecondintheoverallranking(behind

Chile)ifpopulationwerenotbeingusedasasizing

andcorrectivefactor.Brazilwoulddroptwoplaces

tofifthifitspopulationdidnotsodominatethe

region.

CostaRicaranksrelativelyhighlyinfourthplacewith

asolidsetofcompulsoryeducationindicators.Italso

hasthesecondhighestlevelofFDIandthemost

mobileandopenlabormarket.CostaRica’sposition

isunderminedbyalackofrecognizeduniversities

andbusinessschools,althoughthisisnotsurprising

foracountryofitssize.Thelackofqualityinhigher

educationhasasubstantialimpactonCostaRica’s

ranking,whichwouldotherwisebetwoplaces

higher(aheadofBrazilandMexico).Argentina ranks

inthemiddle.Thisislowerthanonemightexpect

sinceithasthebestcompulsoryeducationand

high-qualityuniversities.However,themobilityand

opennessofitslabormarketandrelativelevelsof

FDIarepoor.

Perumovesfrom7thto6thplaceovertheforecast

period;thisisduemoretoVenezuela’sdecline

ratherthananysignificantimprovementinPeru’s

performance.PeruhasfairlevelsofForeignDirect

Investmentandcouldimproveitsscorebyinvesting

moreinitscompulsoryeducationsystem,in2013it

hasthelowestrateofeducationspendingasa%

ofGDP.

Venezuelahasagoodeducationsystemandgood

potentialforattractingtalentfromoverseas.Other

categoriesaremuchpoorerhowever:FDIisverylow;

theenvironmentisnotconducivefordeveloping

andretainingdomestictalent,and;thelabormarket

isrelativelyrigid.Thebottomthreecountriesin

thegroup–Colombia,theDominican Republic

and Ecuador–haveatbestaveragescoresinmost

categories.ThemainexceptionisFDIforwhichthe

DominicanRepublicscoreswell(althoughthisisnot

enoughtoboostitsfinalposition).

Thegreatestdisturbancetotherankingbetween

2008and2013comesfromthediverseoutlookfor

GDPgrowthandemploymentprospects,which

affecteachcountry’s‘Proclivitytoattracttalent’

measure.Butthisisnotenoughtosignificantlyalter

theoverallrankings.Asaconsequence,weonlysee

twochangesinposition;PeruovertakesVenezuela

(mainlyduetoVenezuela’sexpecteddecelerationin

GDPgrowththroughtheforecastperiod)andthe

DominicanRepublicpushesEcuadorintolastplace

duetoitssignificantlylargerforecastinwardflowof

FDI.Inbothinstancesthescoresremainveryclose.

Interestinglytherangeofscoresiswiderin2013

relativeto2008.Thissuggeststhattheregionis

divergingslightlywiththegapbetweentopand

bottomincreasing.Thebestperformingcountries

areimprovingmorequicklythanthoseatthe

bottomofthegroup.n

Heidrick&Struggles 5

Page 8: Mapping Talent in Latin America

The Latin America Talent Index compares and ranks countries in the region according to the depth of available talent that they have to offer potential employers now and in five years time. In doing so, the Index measures each country’s natural potential for producing talent – a quantity measure largely driven by socio-demographic factors (including immigration and imported skills) – and the degree to which good schooling (and other environmental factors) raises the quality of that raw talent (alongside foreign investment).

We took the following four steps to construct the Index:

methodology

step1Keytalent-promotingcountryattributeswereidentified

Weidentifiedthefollowingsevenkeycategoriesas

themostimportantdriversassociatedwithtalent

pools(intermsofquantityandquality):

• Demographics

• Qualityofcompulsoryeducationsystems

• Qualityofuniversitiesandbusinessschools

• Qualityoftheenvironmenttonurturetalent

• Mobilityoflaborandrelativeopenness

ofthelabormarket

• StockandflowofForeignDirectInvestment

• Proclivitytoattractingtalent

step2Variableswereselectedtomeasureeachofthecountryattributeslistedinstep1

TheEconomistIntelligenceUnit,inconsultationwith

Heidrick&Struggles,drewupalistofvariablesto

measureeachtalentattributecategory.Thepoolof

countriesofinteresttoHeidrick&Strugglesincluded

anumberofdata-pooreconomies,afactorthat

neededtobetakenintoaccountintheselection

process.Estimateswereusedtofillgapsinthe

dataset.Thesewerederivedbylinearregressions,

trend-basedextrapolationsandin-housecountry

expertise.Thefinalsetofvariablescombines

quantitativemeasuresdrawnfromavarietyoflocal

6 Mapping Talent in Latin America

Page 9: Mapping Talent in Latin America

andinternationaldatasources,withqualitative

assessmentsfromtheEconomistIntelligence

Unit’snetworkofcountryanalystsandin-field

contributors.ForecastswerebasedontheEconomist

IntelligenceUnit’smacroeconomicmodelsand

countryanalysts’projections,takingintoaccountthe

currenteconomicuncertainties.

step3Thevariableswerestandardizedandcombinedusingweightstoscoreeachcountryattribute

Thedatawasthennormalizedtoobtainscores

from0–100(wherehigherscoresmeantbetter

performancesonthetalentmeasures).Finally,the

EconomistIntelligenceUnitworkedwithHeidrick&

Strugglestosettheweightsofthedifferentvariables

intheoverallIndexbyassigningthemscoresfrom

1–5basedontheirparticularrelevance(where

1=unimportantand5=ofcriticalimportance).

step4AttributescoreswerecombinedusingweightstoformasingleoverallIndexscoreforeachcountry.

Eachcountryreceivedascorebasedontheirrelative

performanceineachoftheindicatorsandcategories

intheIndexagainstalltheothercountries.Countries

thatrankhighlytendtogetfairlygoodscoresacross

awiderangeofindicators;ortheydoextremelywell

inasub-setofhighlyweightedindicators.

Backgroundnote

TheLatin America Talent Indexisaregionaldeep-diveandextensiontotheoriginalGlobal

Talent Index(GTI)althoughcoveringtheperiod2008to2013,astepforwardofoneyearonthe

originalGTIwork.Importantly,therankscorescalculatedarerelativewithinthegrouponly(how

eachcountryfaresagainstitsregionalcompetitorsbyeachindicator)andcannotbecompared

tootherrecentregionalindicesortheoriginalHeidrickandStrugglesGlobalTalentIndex.

Indeed,absolutevaluesinscoresbetween2008and2013mustnotbedirectlycompared;the

significancelieswithintherelativespreadandtherankings.

Heidrick&Struggles 7

Page 10: Mapping Talent in Latin America

Talent Index weightings

indicator weight:1to5

Demographics

Populationaged20-59 4 nnnn

CAGRPopulationaged20-59(%) 1 n

Quality of compulsory education sectors

Durationofcompulsoryeducation 4 nnnn

Startingageofcompulsoryeducation 1 n

Currenteducationspending(%ofGDP) 2 nn

Currenteducationspendingperpupilasa%ofGDPpercapita

4 nnnn

Primaryschoolenrollmentratio(%) 2 nn

Secondaryschoolenrollmentratio(%) 4 nnnn

Meanyearsofschooling 4 nnnn

Adultliteracyrate(%ofpopover15) 5 nnnnn

Pupil/Teacherratio,primary 2 nn

Pupil/Teacherratio,lowersecondary 2 nn

Pupil/Teacherratio,uppersecondary 2 nn

Quality of universities and business schools

GrossenrollmentratioISCED5&6Total 4 nnnn

Numberofbusinessschoolsrankedinworld’stop100

2 nn

Numberofuniversitiesrankedinworld’stop500

3 nnn

Expenditureperstudentforhighereducation(as%ofGDPpercapita)

3 nnn

Quality of the environment to nurture talent

Shareofthepopulationaged25-64withtertiaryleveleducation

3 nnn

PercentageofhighereducationgraduatesintheSocialSciences,BusinessandLaw

2 nn

PercentageoftertiarygraduatesintheSciences

4 nnnn

ResearchersinR&D(permpop) 4 nnnn

TechniciansinR&D(permpop) 3 nnn

indicator weight:1to5

R&Das%ofGDP 5 nnnnn

Costofliving 3 nnn

Degreeofrestrictivenessoflaborlaws 4 nnnn

Wageregulation 1 n

Qualityofworkforce 4 nnnn

Localmanagers 4 nnnn

Protectionofintellectualpropertyrights 4 nnnn

Protectionofprivateproperty 3 nnn

Meritocraticremuneration 4 nnnn

Mobility and relative openness of the labor market

Numberofstudentsstudyingoverseas 3 nnn

Numberofoverseasstudentsstudyingincountryasa%oftertiaryenrollment

4 nnnn

Languageskillsofthelaborforce 5 nnnnn

Hiringofforeignnationals 4 nnnn

Opennessoftrade(exports+imports%ofGDP)

3 nnn

Stock and flow of Foreign Direct Investment

AverageflowofFDIinpreviousfiveyears(%ofGDP)

3 nnn

AveragestockofFDIinpreviousfiveyears(%ofGDP)

2 nn

Proclivity to attracting talent

Technicalskillsoftheworkforce 4 nnnn

Personaldisposableincomepercapita(US$bn)

4 nnnn

Employmentgrowth 3 nnn

GDPpercapita 0

GDPpercapita(PPP) 4 nnnn

NominalUSDGDP 3 nnn

PPPGDP 0

RealGDPgrowth(%) 3 nnn

8 Mapping Talent in Latin America

Page 11: Mapping Talent in Latin America

rank country scorerank

change

2013 2008 2013 RC

1 Brazil 85.0 85.0 n 0

2 Mexico 50.0 50.4 n 0

3 Peru 26.9 27.2 n 0

4 Venezuela 26.7 27.0 n 0

5 Colombia 24.7 24.8 n 0

6 Ecuador 23.4 23.5 n 0

7 CostaRica 17.1 17.1 n 0

8 Argentina 13.5 13.3 n 0

9 DominicanRep. 11.5 11.5 n 0

10 Chile 5.0 4.9 n 0

demographics

Between2008and2013thedemographicrankings

remainunchanged.BrazilandMexicomaintaintheirtop

placedespiteslightlylowerratesofprojectedgrowth

intheirworkingagepopulations.Countrieswithhigher

populationgrowthrates–PeruandVenezuela,are

nothighenoughtoreceiveanoticeableboosttotheir

scores.ThedemographicsscoresforArgentinaand

Chilearestronglyimpactedbylowrelativeworkingage

populationgrowthrates.Theybothrankfourpositions

lowerthantheywouldifonlyabsolutepopulationsize

weretakenintoaccount.

Iftheinfluenceofourcorrectivedemographicscategory

wereremovedfromtheIndex,CostaRicawouldbein

secondplaceoverall,afterChile.Brazilwoulddroptwo

placestofifth.Chile,whichissignificantlyweakenedby

itsrelativelysmallabsoluteworkingagepopulationand

growthrates,wouldbetopoftheIndexbyagreater

margin.

2008 2013

COOLER HOTTER

0 10 20 30 40 50 60 70 80 90

Heidrick&Struggles 9

Page 12: Mapping Talent in Latin America

quality of compulsory education

Thequalityofcompulsoryeducationvarieswidely

acrossthetenmeasuredcountries.Argentinatopsthe

ranking,aheadofCostaRicabyasignificantmargin.

Interestinglytheoverallrankingsforthiscategory

resemblethoseforeducationspendingperpupilas

apercentageofGDPpercapita(althoughArgentina

outperformsonthiscomparedtotherestofthegroup).

Althoughitshouldbenotedthatthisisonlyone

ofthemetricsbeingmeasuredinthecategory,this

correlationhasnotalwaysappearedinotherregional

talentindices.Mexico,Venezuela,Brazil,Colombiaand

Peruscoresimilarlywithinatighteight-pointband.

FollowingthemisChilecloselytrailedbyEcuador.The

DominicanRepublicsitsatthebottomoftablewithan

exceptionallyweakrelativescore(duetolowscoresfor

allthevariableindicatorsinthiscategory).

Therangeofscoresacrossthegroupcontractsslightly

by2013.Thissuggeststhequalityofcompulsory

educationwillconverge,albeitonlymarginally.

ArgentinaandCostaRicaatthetop,andthebottom

threemaintaintheirrespectiveranksinthisperiod.A

highandimprovingprimaryschoolenrollmentratio

putsMexicoaheadofbothVenezuelaandBrazil.But

allthreecountriesimproveovertheforecastperiod

tonarrowthegapwithArgentina.Theothernotable

changeisthatColombiaisforecasttopassPeru;

theresultofadivergenceintheirexpectedprimary

enrollmentratios.

rank country scorerank

change

2013 2008 2013 RC

1 Argentina 72.3 72.1 n 0

2 CostaRica 61.0 64.7 n 0

3 Mexico 54.2 62.0 s 2

4 Venezuela 56.1 61.7 t 1

5 Brazil 55.2 56.8 t 1

6 Colombia 47.9 53.9 s 1

7 Peru 50.1 52.9 t 1

8 Chile 42.5 48.4 n 0

9 Ecuador 40.0 40.9 n 0

10 DominicanRep. 13.8 17.3 n 0

2008 2013

COOLER HOTTER

0 10 20 30 40 50 60 70 80 90

10 Mapping Talent in Latin America

Page 13: Mapping Talent in Latin America

quality of universities and business schools

Thequalityofuniversitiesandbusinessschoolsvaries

widely.Thetopfivecountrieshaveagoodbalance

betweenexpenditure,enrollmentandaccreditation;

thisislesssoforthenextthree–CostaRica,Peruand

Colombia.

Brazilhousesfiveoftheworld’stop500universities

andhasfouraccreditedbusinessschools,while

Mexicohasthreetopuniversitiesandfiveaccredited

businessschools.Asonemightexpect,thesetwo

countriesspendthemostontertiaryleveleducation

(asapercentageofGDPpercapita),althoughtheir

enrollmentratiosarenotparticularlyhighinaglobal

context.Argentina,hasthehighestenrollmentratio

overall.Chile’slowrankinthiscategoryisaresultofits

lowexpenditureontertiaryeducation(asapercentage

ofGDPpercapita),eventhoughithastwouniversities

intheworld’stop500andfouraccreditedbusiness

schools.Country-wideinvestmentandhighlevelsof

enrollmentaremoreheavilyrewardedinthisstudy.

CostaRicadespitehavingnoaccreditedinstitutions

isthethirdhighestinvestorintertiaryeducation(asa

percentageofGDPpercapita).

Between2008and2013therankingsremainlargely

unchangedexceptthatCostaRicaovertakesPerudueto

anincreaseinitsexpectedenrollmentratio.Therange

ofscoresdivergesslightlyinthisperiodsuggestingthe

topfivenationswillimprovetheirhighereducation

systemsatafasterratethanthebottomfive.

rank country scorerank

change

2013 2008 2013 RC

1 Brazil 61.2 67.2 n 0

2 Mexico 56.7 58.2 n 0

3 Argentina 52.1 52.4 n 0

4 Venezuela 47.5 51.9 n 0

5 Chile 44.2 50.9 n 0

6 CostaRica 21.3 24.8 s 1

7 Peru 22.5 22.8 t 1

8 Colombia 21.0 21.5 n 0

9 DominicanRep. 7.5 7.3 n 0

10 Ecuador 2.2 0.8 n 0

2008 2013

COOLER HOTTER

0 10 20 30 40 50 60 70 80 90

Heidrick&Struggles 11

Page 14: Mapping Talent in Latin America

quality of the environment to nurture talent

Thereiswidevariationineachcountry’sabilityto

nurturetalent,especiallyamongstthetopeightinthe

rankings.Fourteenseparateindicatorsaremeasured

inthiscategory,andnosinglevariableisallowedto

dominate.Chileistopoverall,withthemostresearchers

andtechnicianspermillionpeopleandthejoint-highest

workforcequality.Italsohasthebestcombination

ofprivateandintellectualpropertyprotectionand

meritocraticremuneration.MexicoandArgentina,

insecondandthirdplacerespectively,perform

consistentlywellacrossalltheindicators.CostaRicahas

asimilarlywell-roundedenvironmentbutsuffersfroma

lackofresearchersandtechnicians.Infact,ifweignore

thisindicator,CostaRicawouldtopthiscategoryoverall.

Between2008and2013therangeofscoresremains

almostconsistent.Thusallcountriesintheregionwill

movetogetherintheirabilitytonurturetalent.The

orderremainslargelyunchangedexceptthatMexico

movesaboveArgentinaandVenezuelamovesabove

Ecuador.TheproportionofMexico’soverallpopulation

withatertiaryeducationisexpectedtoincreasethe

mostalthoughtheabsolutenumberofgraduates

willstillbehalfofthatinArgentina.Otherfactors

thatwillincreasinglyhelpMexicotonurturetalent

areitsrelativelyhighexpenditureonresearchand

development,thelowcostoflivingandarelativelyhigh

protectionandrecognitionforprivatepropertyrights.

Brazilisfifth,sufferinginthisrankingfromitsrelatively

lowpopulationsharewithtertiary-leveleducation.

Therearenobigsurprisesinthebottomfivecountries.

Eachofthesecountriesexhibitconsistentlylowscores

acrossalltheindicators.

rank country scorerank

change

2013 2008 2013 RC

1 Chile 70.1 70.6 n 0

2 Mexico 63.6 65.3 s 1

3 Argentina 67.0 62.5 t 1

4 CostaRica 60.2 58.1 n 0

5 Brazil 56.3 56.2 n 0

6 Colombia 49.7 50.5 n 0

7 Peru 48.5 47.8 n 0

8 Venezuela 38.6 44.4 s 1

9 Ecuador 40.4 38.4 t 1

10 DominicanRep. 37.9 37.8 n 0

2008 2013

COOLER HOTTER

0 10 20 30 40 50 60 70 80 90

12 Mapping Talent in Latin America

Page 15: Mapping Talent in Latin America

mobility and relative openness of the labor market

Thismeasurecaptureshowpotentiallyeffectivenations

areatimportingtalent.InthisrespectCostaRicaleads

thegroupin2008byasignificantmargin.Itdoeswell

despitehavingthelowestnumberofstudentsstudying

overseas(inabsoluteterms).Asthesmallestcountryin

ourregionalgroup,CostaRicahoststhelargestoverseas

studentpopulationasashareoftotalenrollmentin

tertiaryeducation.Ecuador(infourthplace)ranks

higherthanonemightexpect,mainlybecauseithasthe

secondhighestopennesstotrade(afterCostaRica).

ThetalentpoolinArgentinaandBrazilisnotlargely

supportedbyoverseasinfluences.Relativelyfew

Argentinestudentsstudyabroadandtradeformsa

relativelysmallpartofeconomicactivity.Brazilscores

poorlyonmostmeasures;mostnotablyscoring40for

foreignlanguageskillscomparedto80forCostaRica.

Itisalsothehardestplaceintheregionalgrouptohire

foreignnationalsandistheleastdependentonexternal

trade.

Between2008and2013therangeofscoreswillnarrow,

indicatinggreateralignmentinlabormobilityand

openness.Brazilwillvacatethebottompositionto

overtaketheDominicanRepublic.Ourcontinued

forecastforrelativelyhighexportandimportgrowth

forVenezuela(mostlyoilsales)preventsitfallingtothe

bottomofthissub-indexduringtheforecastperiod.

rank country scorerank

change

2013 2008 2013 RC

1 CostaRica 74.7 70.2 n 0

2 Mexico 56.7 60.7 n 0

3 Chile 55.5 58.1 n 0

4 Ecuador 48.9 46.6 n 0

5 Peru 44.8 46.4 n 0

6 Columbia 43.3 41.8 n 0

7 Venezuela 42.9 40.6 n 0

8 Argentina 41.7 39.1 n 0

9 Brazil 34.8 37.4 s 1

10 DominicanRep. 39.2 36.3 t 1

2008 2013

COOLER HOTTER

0 10 20 30 40 50 60 70 80 90

Heidrick&Struggles 13

Page 16: Mapping Talent in Latin America

stock and flow of Foreign Direct Investment

OurcategoryforForeignDirectInvestment(FDI)

isonlymeasuredbytwoindicatorsbutithasa

reasonableinfluenceontheoverallIndexscores.

OurthinkingbehindthisisthatFDIservesasan

importanttransmissionmechanismforinformation,

knowledgeableworkersandinternationalexpertise.

RelativelyhighlevelsofFDIareassociatedwithgood

businessenvironments,ofwhichthequalityofthe

indigenouslaborsupplyisanimportantcomponent.

AdditionallyFDIinflowsareoftenaccompaniedby

internationalbestpractice,promotedbyhigh-quality

foreignmanagers.

Chileranksfirstinboththestockandflowofinward

FDI,aheadofCostaRica,byaverysignificantmargin.

Between2008and2013therangeofscoresincreases,a

reflectionofthefactthatChile’sFDIinflowwillcontinue

torisewhileVenezuela,atthebottom,willreceivevery

littleadditionalforeigninvestmentinourview.Thetop

threenationsretaintheirpositionsin2013.Mid-table

PeruisexpectedtoovertakeColombiaasweexpectit

toexperienceaslowerdeclineinFDIinflows.Mexico

andBrazilmoveaheadofEcuadorandArgentinaforthe

samereason.

rank country scorerank

change

2013 2008 2013 RC

1 Chile 100.0 100.0 n 0

2 CostaRica 51.0 38.0 n 0

3 DominicanRep. 39.4 34.2 n 0

4 Peru 24.0 32.5 s 1

5 Colombia 35.0 28.6 t 1

6 Mexico 19.1 23.4 s 2

7 Brazil 11.2 16.3 s 2

8 Ecuador 20.0 13.3 t 2

9 Argentina 19.6 12.3 t 2

10 Venezuela 6.8 0.0 n 0

2008 2013

COOLER HOTTER

0 10 20 30 40 50 60 70 80 90

14 Mapping Talent in Latin America

Page 17: Mapping Talent in Latin America

proclivity to attracting talent

Thiscategoryfocusesonthetechnicalaptitudeof

theworkforce,itsemploymentgrowthprospectsplus

theabsolute,relativeandpotentialrateofchanges

inincome.Venezuelatopsthetablein2008,largely

becauseGDPgrowthwasboostedbythehighpriceit

receivedforoil.Argentina’s2008rankingisbuoyedby

relativelyhighratesofrealGDPgrowth(thesecond

highestinpercapitatermsatUS$purchasingpower

parities–PPP)alongwithstrongemploymentgrowth

overthepreviousfiveyearsto2008.Chilehasastrong

setofindicatorscoresinthiscategory(especially

GDPpercapitaatPPP);whileBrazilhasthehighest

levelofnominalGDPin2008andthehighestratesof

employmentgrowth.

Indicatorscoresinthiscategoryvaryconsiderably

between2008and2013.Venezuelafallsfromfirst

toeighthplace;asignificantdeclinepredicatedby

ourexpectationofmuchlowergrowthratesforGDP

andincomesintheforecastperiod.IncontrastCosta

Ricawillexperiencearelativeincreaseinpersonal

disposableincomespercapitaandrelativelyhighrates

ofemploymentgrowth.

rank country scorerank

change

2013 2008 2013 RC

1 CostaRica 48.7 65.9 s 5

2 Chile 63.8 64.7 s 1

3 Mexico 57.2 63.9 s 2

4 DominicanRep. 47.3 57.8 s 3

5 Brazil 62.9 53.8 t 1

6 Argentina 64.5 51.4 t 4

7 Peru 42.8 43.2 s 1

8 Venezuela 66.3 35.2 t 7

9 Columbia 22.1 30.2 s 1

10 Ecuador 25.0 24.1 t 1

2008 2013

COOLER HOTTER

0 10 20 30 40 50 60 70 80 90

Heidrick&Struggles 15

Page 18: Mapping Talent in Latin America

our capability in Latin AmericaHeidrick & Struggles offers firsthand, inside knowledge on Latin American talent management challenges; providing clients with consulting services that powerfully blend specific regional expertise and global insight.

Throughournetworkofofficesweprovidefulllocalcoverageineverymajorindustry,helpingourclientsbuildthemostpowerfulleadershipteams.WeserveLatinAmericancompaniesbothpublicandprivate–fromfamilyownedbusinessestoglobalclientsinterestedinconsolidatingtheiractivitiesintheregion,aswellasnewbusiness.

Ourapproachissimple:weproactivelymanageourcandidaterelationshipstocreateanoutstandingtalentbase,whichwedeploytoservethespecificneedsofourclients.Weblendagilityandqualitywithconsultingservicesbeyondtheacquisitionofexternaltalent,includinginternaltalentmanagement,onboarding,leadershipinventory,assessmentanddevelopment,growthandretentionplanning,optimizationofhumancapitalinmergersandacquisitionsandsuccessionplanning.

Thiscompleteofferinggivesourplacementstheverybestchanceofsuccess.Weunderstandtheimpactofeffectiveleadership,asweworkwithhundredsofleaderseachyear–asclients,ascandidates,andasexecutivesinourassessmentandleadershipdevelopmentprograms.

ByunderstandingthedynamicsoftheLatinAmericanmarket,wehavebeenchosenasthepreferredpartnerforanumberofcustomerslookingtoleveragetheirbusinessintheregion.

Argentina

AlejandraCaneda–[email protected]

GustavoWurzel–[email protected]

Brazil

AnaClaudiaReis–[email protected]

AnaPaulaChagas–[email protected]

CynthiaRejowski–[email protected]

DarcioCrespi–[email protected]

DominiqueEinhorn–[email protected]

LauraMenezes–[email protected]

ManoelRebello–[email protected]

PauloWeinberger–[email protected]

RosanaSouza–[email protected]

ThaisMariz–[email protected]

Chile

LorenaMedel–[email protected]

LuisBonzi–[email protected]

MarioMora–[email protected]

Colombia

CatalinaPardo–[email protected]

NataliaBorda– [email protected]

SantiagoSolis–[email protected]

Mexico

CarlaOrmsbee–[email protected]

FedericoGonzalez– [email protected]

GladysMitchell–[email protected]

IgnacioPerez–[email protected]

IngeCasteleyn–[email protected]

MargaretCauley–[email protected]

NicholasGribbon–[email protected]

Miami

CarlaPalazio–[email protected]

GuyCote– [email protected]

MeganBlack–[email protected]

Monterrey

JoseRuiz–[email protected]

16 Mapping Talent in Latin America

Page 19: Mapping Talent in Latin America

TheTalentIndexisauniqueresearchstudy

devisedbyHeidrick&StrugglesandtheEconomist

IntelligenceUnit,toidentifywheretalentislocated

intheworldtodayandwhereitwillbelocatedfive

yearsfromnow.

ThefirstglobalstudywasproducedinSeptember

2007,measuringtalentinthirtycountriesaround

theglobe.Regionalindiceshavealsobeen

developedforCentralandEasternEurope,Asia-

PacificandtheMiddleEast.

ToordercopiesofanyHeidrick&StrugglesTalent

Indexbooklets(ormapswhereavailable),please

contact:[email protected]

learn more…TodiscusswhattheresultsoftheLatinAmerica

TalentIndexmeanforyourbusiness,pleaseemail

[email protected]

FormoreinformationontheTalentIndexseries

[email protected]

Visit our online resource to find out more about the

Latin America Talent Index, the Global Talent Index

and other Heidrick & Struggles regional indices:

• plottalenttrendsovertheforecastperiod

• exploreindividualcountrydata

• comparecountryperformances

• downloadandprint

www.weknowglobaltalent.com

the Talent Index series

we know global talent

Page 20: Mapping Talent in Latin America

Copyright ©2009 Heidrick & Struggles International, Inc.

All rights reserved. Reproduction without permission is

prohibited. Trademarks and logos are copyrights of their

respective owners.

200901CDTSBA20

ConnectingleadersaroundtheglobeiswhatHeidrick&Strugglesdoesbest.Foroverfiftyyearswehavebeen

buildingdeeprelationshipswiththeworld’smosttalentedindividualsonbehalfoftheworld’smostsuccessful

companies.Throughthestrategicacquisition,developmentandretentionoftalentwehelpourclients–fromthe

mostestablishedmarketgiantstothenewestmarketdisrupters–buildwinningleadershipteams.

Amsterdam+31(0)204627777

Atlanta+14045772410

Auckland+64(0)93066630

Bangkok+6626641011

Barcelona+34932257300

Beijing+86(0)1065988288

Beirut+9611964671

Bogotá+5715877878

Boston+16177376300

Brussels+32(0)25420750

Bucharest+40213188850

Budapest+3613274598

Buenos Aires+54(0)1143209950

Chicago+13124961000

Chongqing+86(0)2363001588

Cleveland+12162417410

Copenhagen+4533377600

Dallas+12147067700

Denver+17209323839

Dubai+97145096675

Düsseldorf+49(0)21182820

El Segundo+13103213220

Encino+18189056010

Frankfurt+49(0)696970020

Geneva+41(0)223222939

Guangzhou+86(0)2038135588

Hamburg+49(0)403405770

Helsinki+35892511250

Hong Kong+85221039300

Houston+17132379000

Istanbul+90(0)2123510904

Johannesburg+27(0)116856910

Lisbon+351213514530

Ljubljana+38659199768

London+44(0)2070754000

Los Angeles+12136258811

Madrid+34913915256

Melbourne+61(0)390123000

Menlo Park+16502341500

Mexico City+525591380370

Miami+13052622606

Milan+3902762521

Minneapolis+16122156913

Monterrey+525591380370

Moscow+74952259368

Mumbai+91(0)2266663021

Munich+49(0)89998110

New Delhi+91(0)1244655300

New York City+12128679876

Paris+33(0)144341700

Philadelphia+12159881000

Prague+420222191478

Rome +390685375801

San Francisco+14159812854

Santiago+56(2)7535300

Sao Paulo+551155044000

Seoul+82(0)234306000

Shanghai+86(0)2161361988

Singapore+6563325001

Stamford+12032522900

Stockholm+46(0)84067100

Sydney+61(0)282052000

Taipei+886(0)227576123

Tokyo+81(0)345207800

Toronto+14163614700

Tysons Corner+17038482500

Vienna+43(0)153310070

Warsaw+48(0)225849898

Washington DC+12023314900

Zurich +41(0)444881313