Europe's professionals stay at home

Brussels, 11 December 2006 - Professional mobility in Europe is falling well short of expectations says a new report, Managing Mobility Matters 2006, by PricewaterhouseCoopers LLP.

The Lisbon Strategy initiated in 2000 set the objective of the European Union (EU) becoming the most dynamic and competitive market in the world by 2010. In this world employers would be able to plug skills gaps at competitive costs due to the increased mobility of skilled workers. But, with the exception of the Nordic countries, Ireland and the UK, mobility of professionals remains disappointingly low.

Only a third of the 445 employers surveyed across 14 countries received applications for senior management, professional and skilled manual positions from other EU countries in 2006, amounting to just 5% of all applications.

Barriers to mobility remain significant. Language remains an obstacle. Differences in tax systems, healthcare, benefits, the lack of EU-wide integrated employment legislation, and patchy cross-border recognition of professional qualifications can also be a disincentive. However, the report highlights how more practical issues such as work and careers for spouses, the availability of housing and schools, and being cut off from family and friends are at least as significant - discouraging potential candidates from taking jobs in foreign countries.

There is an acute lack of positive messages and awareness about how to access information on working in other countries. All of this fuels the assumption that securing a job and working in another country is an extremely difficult process. These issues need to be addressed at an individual member state level and by employers themselves if mobility is to increase.

The report, partially funded by the European Commission, follows up a previous study published by PricewaterhouseCoopers in 2001*. At that time, the EU economy was growing strongly and companies across the region were primarily concerned about the availability of staff to meet new opportunities.

Today, the picture has changed, with the EU economy growing more slowly and competitive pressures far more important to businesses. On average 27% of companies cite staff costs as having significant impact on their business in the European marketplace, compared to only 4% in 2001. However, only an average of 13% of companies are turning to mobile workers to ease recruitment difficulties, compared to an average of 21% in 2001. These trends may have implications for the physical mobility of companies themselves, influencing where they choose to base their operations.

Jan Goeman, partner HRS, PricewaterhouseCoopers, said:

“In 2001, organisations expected people to move increasingly to countries where their skills were in high demand. But in the absence of high levels of professional mobility we can also expect some companies to continue moving operations to where the right people are, through outsourcing and offshoring programmes.”

Reasons for recruiting foreign staff include building up business internationally and obtaining appropriate skills. Those employing foreign workers are generally positive about their performance. Many businesses believe them to be more willing to fit in and to work harder than their existing workforce. Indeed, 33% cited improved customer service as a driver for employing foreign workers, compared to only 21% in 2001.

Jan Goeman, partner HRS, PricewaterhouseCoopers, said:
“The big question is whether the Lisbon aspirations are over-optimistic or unrealistic. Businesses all over Europe would benefit from increased professional mobility and this research is intended to help the Commission and employers understand some of the current barriers.

“Crucial steps need to be taken at an individual member state level, such as providing easily accessible information about working and living in different countries. Currently, the process can be intimidating and complex. Companies that want to attract professionals from across borders need to provide assistance for foreign workers to deal with unfamiliar tax and employment systems, and also support them in finding suitable housing and schools.

“Lack of cross border recognition of professional qualifications and barriers to the use of services from other countries have been stumbling blocks in the past, but these are beginning to be addressed. Goods, services and capital flow freely throughout the EU. If workers did the same, European businesses would reap substantial economic dividends.”


Notes to Editors
  1. *Managing Mobility Matters 2001 – A European Perspective was published by PricewaterhouseCoopers in 2001.
  2. For a copy of the full report 2006 contact Isabelle Jacobs: isabelle.jacobs@pwc.be
  3. The report was co-funded by the European Commission as part of the Year of Workers' Mobility 2006 initiative. There is a two day closing event sponsored by the European Commission in Lille starting on Monday 11th December.
  4. The report involved a survey of 445 HR personnel in the participating countries. Data is available for individual countries.
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