Professional mobility in Europe is falling well short of expectations says a new report, Managing Mobility Matters 2006, by PricewaterhouseCoopers.
12 December 2006 -
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 averages 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.
Kevin Delany, partner, PricewaterhouseCoopers, said:
“In 2001, organizations 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 off shoring programmes.”
Petr Frisch, Director in the Tax and Legal Services at PricewaterhouseCoopers, Czech Republic, added:
“Our study showed that Czech companies do face significant issues in managing mobility matters. The increased outbound mobility needs put Czech professional employees on high demand. Most companies find it difficult to recruit professional staff and consider being important to seek for those prepared to be mobile across the EU. This results in increased pay levels and working hours, but retention of key employees is still an extremely important issue.
The three most important factors hindering the Czech companies in relation to employee movement within the EU are the language skills, employment opportunities for partners and pension issues. The latter two can be a surprise to many businesses and mean those companies' mobility practices and international assignment policies need to be adjusted. With two thirds of the Czech companies don't knowing yet what mobility issues will they have to face in the future, mobility would stay in the primary focus in the Czech Republic. However, as over 90% of Czech respondents believe that international mobility is a good thing for the individuals and for the economy and a half expects business need for a mobile workforce to increase in the next 5 years.”
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.
END
Notes to the editor:
- Managing Mobility Matters 2001 – A European Perspective was published by PricewaterhouseCoopers in 2001.
- For a copy of the full report (pdf version) contact Pavel Šafránek or Petr Podzimek (phone: 251 151 827, e-mail: petr.podzimek@cz.pwc.com).
- The report was co-funded by the European Commission as part of the Year of Workers' Mobility 2006 initiative.
- The report involved a survey of 445 HR personnel in the participating countries. Data is available for individual countries.
- Information about the other launched press releases, publications, surveys and expert articles you will find at http://www.pwc.com/cz/eng/press.
- PricewaterhouseCoopers (www.pwc.cz) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 140,000 people in 149 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
“PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
