From the U.S.-Mexico border to China sending home ex-pats to critical labor shortages in the post-Brexit U.K., the news on migration is always grim, no matter which news source you visit. The problems you describe indeed exist. However, they are only a part of the narrative.
It is currently more accessible than ever for talented workers to move freely across international borders. Researchers have found that teams with members from various cultural backgrounds are more likely to foster creativity at both the company and national levels. This has led to the development of the formation of multicultural teams at businesses throughout the world. Germany is considering a points-based visa system to lure in top talent. France has recently introduced an entrepreneur visa. To a lesser extent than might, at first, be assumed, Japan does have a specific category of visas for skilled workers in the technology sector. It is important to note that the U.K.’s points system for skilled worker visas will continue to be in place post-Brexit. The current Covid-19 restrictions in Australia make travel difficult, but experts predict this will only be a temporary problem.
For our “Innovation Without Borders” study, we compared the ten most popular nations for expatriating professionals worldwide, including China and Japan, to determine which had the most favorable conditions for migration. These days, several governments have enacted policies that make it possible to hire and move foreign workers at rates and times that are competitive with those of their home countries. Global talent can now compete on a “flat” international stage.
Underneath, the picture is different:
The U.S. and China are exceptions.
The U.S. has tight caps for its H1B visa program and administrative bottlenecks for other visas and residency cards. In January 2022, China will introduce new tax policies focused on ex-pat talent, making it difficult to deduct home rent and schooling expenditures from personal taxable income.
The West is advancing.
France, Germany, and Spain are among the most accessible to talented workers, on par with Canada, which has a simple points-based immigration system.
Global talent competition.
India and Japan, not known for their openness, seek to lure foreign expertise and hire abroad.
Talent access is the top growth hurdle for post-Covid-19 enterprises. In addition to this pull force, there is more global talent, talent is willing to go, and remote work is not limiting global mobility.
In 10 years, 260 million college graduates will enter the workforce. This expansion is equivalent to the talent stock in 1990, and nearly all come from outside North America, Europe, China, and Japan.
Many would move.
50% of worldwide talents in 2021 are eager to move for improved career possibilities, down from 64% in 2014. As a lifestyle choice, many want global mobility.
Remote work might spark romance.
Startup CEOs and H.R. executives say remote work eases global hiring. Starting remotely lets both sides “test before purchase,” making international hiring less hazardous.
Hard and soft constraints limit business leaders
We surveyed 850 senior executives for an upcoming study and found a substantial gap between awareness and action. 95% said they want global teams. 2% see full results.
Frontrunners exploit global team diversity to innovate.
They’re twice as likely to be inventive and fast-growing as their homogeneous colleagues. Delivery Hero is a “decacorn” quick-commerce player. The 2009-founded company is already hiring globally across all functions, like many startups on their way to unicorn status.
Latecomers suffer strong and soft restrictions.
Smaller enterprises in the U.S. or China can’t avoid overseas recruiting rules (e.g., via global intercompany transfers).
Self-imposed soft constraints:
The lack of a “one language” strategy by many internationally active businesses outside of the Anglo-Saxon world disadvantages foreign workers who are proficient in English but not in other languages. Rakuten founder and CEO Hiroshi Mikitani famously broke this soft barrier by forcing all teams to speak English in 2010.
Global team building
Corporate executives use five techniques to establish globally diverse, innovative teams. The first two are for firms with strict constraints, and the last three have soft or no rules.
1. Geographically diversify
If you can’t hire foreigners, create hubs abroad. Wayfair, an online furniture store, sought to expand beyond Boston to hire more developers and data scientists. It opened an engineering center in Berlin. It built a Toronto base to connect to the local tech ecosystem and worldwide talent community.
Countries with efficiently skilled work visas can have painfully slow administrative processes. The solution is public-private partnerships.
Example: Germany. Even though Germany welcomes talented workers, its bureaucracy sometimes reflects this new approach. Berlin-based enterprises co-founded BerlinPartner to drive this cultural transformation. The company realized international hires needed a “speed lane.”
3. Think globally
E.ON, a European energy networks operator, shifted all group-level communication to English about a decade ago, although it allows operating units to run in their languages. This setting will enable people to speak in their local language, but all critical papers are in English.
Firms of all sizes use freelancing or employer-of-record models to onboard individuals remotely before migration. Germany’s logistics firm Forto onboards employees remotely and eventually transfers them to more significant hubs for hybrid setups. What began as a short remedy during Covid-19 is now a strategy to screen global talent.
5. Appreciate talent.
Companies that don’t attract domestic talent rarely recruit overseas talent sustainably. Firms must boost employer value for all employees, including branding, efficient recruiting, personal onboarding help, and mentorship for new joiners. Douglas, the European market leader in beauty shopping, attributed its recent success in developing its digital beauty platform to its ability to attract experienced digital talent from Germany and beyond. The company has introduced a simple, remote hiring procedure for digital talent and targeted relocation packages to help new employees with housing support and assure more excellent retention of its globalizing staff.
If you read global headlines, you’ll think talent mobility is grim. A deeper investigation reveals a chance to alleviate skills shortages and stimulate innovation. While others sleep, seize this excellent opportunity.