Saturday, June 14, 2008

More Options for Returning Nationals in future ??

According to a survey conducted by the Association of Executive Search Consultants , the demand for expat senior executives is likely to come down in the coming ten years!!

The prediction is that within 10 years, high-cost international expatriates will largely be superseded by locals, returning nationals and regional expatriates in filling senior executive roles.

Personally, I will like to believe that this will happen faster -perhaps in the next 5yrs itself ;-)!

1. Traditionally, the market for expats grew as the major emerging economies developed, and MNCs entered new market-in a bid to lauch their products /services. And most companies found it easier to second senior management staff to make the foray into the new territory-and set expectations related to the culture -performance issues etc.

2. Most of these expat assignments were typically short term-about 18 months, by which time, internal resources could be identified and could then take over from the expats.

3. It takes a different personality type- perhaps with a lot of local flavour, to ramp up operations in short period- handle ambiguity, work thru chaos and churn that a lot of business operations would need to experience as growing. It is imperative that as a company scales up, a local /regional person with a readymade network hits the ground running!

4. There is an increasing trend in customising Compensation and Benefits packages-more focussed towards the local terms and conditions-and there may not be a compelling reason for expats to move, when compared to those of say, Indian origin -who are working abroad having family roots here in India!

5. I cannot resist bringing in the aspect of demographics! The period 2008 to 2015 will see the baby boomer generation retiring in the Western countries, thereby -creating a vacuum of middle and senior management talent in the parent companies of MNCs. Will the war for talent see new trends coming up- is anybody's guess.

I shall be glad to know about what you think!!

1 comment:

Admin said...

Nice post. Really liked it..
Don't forget to update it regularly.
I am looking for new updates dieing to read more stuff from you ..

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