Talent attraction in emerging markets

Transcription

1 TALENT ATTRACTION IN EMERGING MARKETS 1 TALENT INSIGHTS SERIES Talent attraction in emerging markets WHAT UNIVERSITY STUDENTS LOOK FOR IN FUTURE S AND THE COMPANIES THAT SEEK TO HIRE THEM.

2 TALENT ATTRACTION IN EMERGING MARKETS 2 IT IS WIDELY BELIEVED THAT EMERGING MARKET ECONOMIES WILL BE THE ENGINE THAT DRIVES GLOBAL GROWTH INTO THE 21ST CENTURY AND BEYOND. So it s not hard to see why all eyes are on the next generation of leaders from these regions. S

3 TALENT ATTRACTION IN EMERGING MARKETS 3 The International Monetary Fund predicts that by 2016, growth in emerging market and developing economies will increase to 4.7 percent, largely on the projected improvement in economic conditions in a number of distressed economies. And Euromonitor International states that emerging market economies will grow almost three times faster than developed ones, accounting for an average of 65 percent of global economic growth by What is an emerging market? What can be taken for granted and what is effective in developed markets does not translate simply to emerging markets. From roads to running water, social marketing to product distribution, middle class homes to ideal product size: a one-size-fits-all business plan will not do. Universum defines an emerging market as a country exhibiting a rate of GDP growth higher than the global average, but whose markets are not as mature as those in countries with developed economies such as the US, UK, Western Europe, China, and Japan. (See page 24 for the full list of countries surveyed for this report.) It s impossible to make assumptions about emerging market economies, as Euromonitor International explains: The same applies to employer branding in emerging markets. Millennials career goals and ideals for future employment differ greatly by region. As such, organizations cannot take a one-size-fits-all approach to talent attraction. As a case in point: for the first time in Universum s research, we ve found a subset of Millennials who do not value work-life balance as highly as their peers in other countries. S

4 TALENT ATTRACTION IN EMERGING MARKETS 4 Strong population growth As well as economic growth, emerging markets are also experiencing strong population growth. According to Euromonitor International, in 2013 the median age in emerging markets was 28.4 years 12.5 years younger than in developed economies. On the whole, these regions are youthful and full of potential for employers looking to hire new talent. FOCUS ON BUSINESS AND ENGINEERING The Talent Insights Series aims to uncover what university students are looking for in future employers and how companies can translate these findings into actionable steps for HR and C-level leaders. This report looks at students in emerging markets who are graduating from business and engineering degrees. We did not ask students to specify which industry they plan to enter upon graduation, so these results do not apply to one particular industry or sector. Universum focused on business and engineering graduates because their studies encourage them to develop strong problem-solving skills and proactively deliver solutions before problems arise. We believe organizations in emerging markets will need these skills and attributes in order to succeed in globalized industries. Each year, Universum surveys the professional expectations of one million careerseekers from 55 countries, and publishes dozens of reports on the top issues affecting global talent and the companies that hire talent. Click here to see the list of industries and to get a specific report. Other related topics: Millennial study: Understanding a Misunderstood Generation The Future of Employer Branding: 2020 Outlook S

5 TALENT ATTRACTION IN EMERGING MARKETS 5 S Career goals

6 TALENT ATTRACTION IN EMERGING MARKETS 6 THIS SURVEY OF EMERGING MARKETS REVEALS A NOTICEABLE DIFFERENCE IN ATTITUDES TOWARDS WORK-LIFE BALANCE BETWEEN REGIONS. S

7 TALENT ATTRACTION IN EMERGING MARKETS 7 On average, students in emerging markets rate work-life balance first. However, in North African countries, being entrepreneurial is graduates top career goal. Work-life balance topped the list as the most important career goal for graduates in emerging markets, with students studying business (47 percent) and engineering (46 percent) rating it as their highest priority. FIGURE 1 In Argentina, Brazil, Chile, Costa Rica, and Malaysia, the desire for work- life balance is the highest among all emerging markets we surveyed. Students in these five countries voted strongly for work-life balance above every other career goal. This comes as no surprise, as every Universum survey conducted in the past six years has seen work-life balance top the list of career goals regardless of industry, country, or the university s institutional ranking. However, this time, the survey of emerging markets reveals a noticeable difference in attitudes towards work-life balance between regions. Spotlight on North Africa In most of the North African countries we surveyed (Algeria, Ghana, Kenya, and Nigeria), work-life balance does not matter as much as the career goal of being entrepreneurial or creative/ innovative at work. Ghana has the lowest rating for work-life balance, with just 32 percent of business students and 25 percent of engineering students voting it a top-three career goal. S We attribute this finding to high youth unemployment rates and targeted government

8 TALENT ATTRACTION IN EMERGING MARKETS 8 initiatives designed to encourage entrepreneurialism and start-up culture. For example, the Ghanaian Government recently created the Youth Enterprise Support program to fund young Ghanaians with creative and innovative business ideas and plans to achieve their full potential. Similarly, public-private partnerships (PPPs) such as the North Africa Partnership for Economic Opportunity (PNB-NAPEO) are funding well-publicized missions to improve youth job creation, entrepreneurship, and education. These programs are clearly having an effect on Millennials in the region who, as described by EY, have faith in their ability to create their own destiny. Talking Turkey A very low rating for work-life balance also came from graduates in Turkey, where it didn t even make the top three. Most business students nominate being a leader/ manager as their top career goal (59 percent) while engineering students choose being entrepreneurial or creative/innovative (58 percent). According to the African Development Bank Group, Africa has the fastest-growing middle class on the planet. Its consumer spending will rise from US$860 billion in 2008, to US$1.4 trillion in According to PwC, by 2040 Africa will overtake China and India to have the world s largest workforce. For these reasons, it s important for employers to gain a foothold in the region to build trust and long-term relationships. For example, Korean car manufacturer Hyundai has set up technical training centers in Ghana and other emerging markets such as Cambodia to build skills and combat youth unemployment. S We attribute these results to Turkey s weakening economy

9 TALENT ATTRACTION IN EMERGING MARKETS 9 and negative perceptions of the nation s current political situation, as outlined in Emerging Markets. When social, economic and political instability are a day-to-day reality, young people are a lot more likely to crave control and stability and push work-life balance to the background. FIGURE 2 Security vs. creativity Business and engineering graduates in emerging markets don t take job security for granted, voting it as their third most important career goal (40 percent and 37 percent respectively). We expected to see job security among the main concerns of students in emerging markets. It would be natural for job security to appeal to graduates who ve grown up in countries with a high potential for economic and political instability. What is interesting, however, is the fact that being entrepreneurial or creative/innovative rated more highly coming in second only to work-life balance. As mentioned earlier, governments and PPPs in emerging markets are doing much to support entrepreneurialism. But we also attribute this finding to Millennials optimism and strong sense of belief in their abilities. Inspired by Silicon Valley start-up culture and social entrepreneurship, it seems this latest crop of graduates is not afraid to go it alone. EY s 2015 global job creation and youth entrepreneurship survey found that despite high youth unemployment rates, young people are very optimistic about fulfilling their career aspirations. Ninety-seven percent of Millennials surveyed in Sub-Saharan Africa said they were very or quite optimistic about their career outlook, compared to the global average of 84 percent. In other words, organizations that want to attract top talent in emerging markets should offer Millennials the opportunity to be entrepreneurial, creative and innovative. If they don t, it s highly likely the most ambitious and talented individuals will opt out in favor of working for themselves. S

10 TALENT ATTRACTION IN EMERGING MARKETS 10 FIGURE 1 WHICH OF THESE ARE MOST IMPORTANT TO YOU? Top three responses 50% 40% RETURN PERCENT 30% 20% S 10% 0% Work-life balance To be entrepreneurial or creative/innovative To be secure or stable in my job Business students Engineering students

11 TALENT ATTRACTION IN EMERGING MARKETS 11 FIGURE 2 THE IMPORTANCE OF WORK-LIFE BALANCE AS A CAREER GOAL OF STUDENTS By country Malaysia Chile Argentina 58% 59% 59% 63% 63% 64% RETURN Costa Rica Brazil Algeria Kenya 31% 39% 38% 38% 54% 57% 56% 58% S Ghana 25% 32% Nigeria 32% 34% Turkey 30% 32% 0% 10% 20% 30% 40% 50% 60% 70% Business students Engineering students Note: This graph shows 10 out of 19 countries surveyed.

12 TALENT ATTRACTION IN EMERGING MARKETS 12 S Employer qualities

13 TALENT ATTRACTION IN EMERGING MARKETS 13 What do students in emerging markets look for in future employers and roles? A creative and dynamic work environment is the most soughtafter attribute of workplace culture among business and engineering students in emerging markets. This correlates with our 2014 World s Most Attractive Employers survey results, which found a creative and dynamic work environment is the number-one attribute for engineering students around the globe, taking priority over other attributes like a high starting salary or leadership opportunities. S We see this as an indication that members of this generation, no matter where they are in the world, are really taking a different approach to work, says Petter Nylander, Global CEO of Universum. Work and life are merging students today don t see as much of a separation between the two as they have in the past, and they know what a large role their work will play in their lives. For this reason, they want to work in an environment that resonates and employers need to rise to the challenge and make investing in the work environment a priority.

14 TALENT ATTRACTION IN EMERGING MARKETS 14 Professional training and development According to our research, graduates in emerging markets also find professional training and development to be a very attractive job characteristic. Fifty-two percent of business students and 51 percent of engineering students choose it among their top three, much higher than flexible working conditions or personal control over the number of hours worked. And business and engineering students in emerging markets also desire leaders who support that development. Students are getting great training, mentoring and support, even up to the CEO level, says Claudia Tattanelli, Global Director at Universum. Companies that include close contact with leaders in their employer branding will be more attractive to graduates than those that don t. For business and engineering recruiters, this means thinking carefully about how to integrate opportunities for graduates to meet or work with C-level leaders. According to a recent Universum survey, 85 percent of Millennials worldwide want work to be part of who they are, not just a way to make a living. As such, they place greater emphasis on working in an environment where they will be respected for their individual contribution and viewpoint. It seems that despite cultural differences, students in emerging markets want to be valued for their individual contributions as much as their peers living and studying in developed economies. S

15 TALENT ATTRACTION IN EMERGING MARKETS 15 S Research channels

16 TALENT ATTRACTION IN EMERGING MARKETS 16 STUDENTS IN EMERGING MARKETS STILL VALUE TRADITIONAL ADVERTISING, PARTICULARLY OUTDOOR/BILLBOARDS AND TV. S

17 TALENT ATTRACTION IN EMERGING MARKETS 17 Our study reveals that companies competing to reach top talent should focus on three channels social media, their company website and outdoor/billboard advertisements. Whether you re explaining a typical day at your organization, career paths for different specialties or the values your organization stands for, social media and company websites are the most effective place to invest your time and effort. In emerging markets, it s vital to first make students aware of existing opportunities by advertising on billboards and TV and use these traditional channels to drive students to your organization s website and social media pages. FIGURE 3 Focus on social media Companies should think carefully about how they leverage social media because Millennials see networking on Facebook and LinkedIn as merely the standard baseline of online effort required. Recruiters must embrace social media in all its forms. This means strengthening their presence not just on traditional networking sites like Facebook and LinkedIn, but also visual social media channels including YouTube, Instagram, and Pinterest. Many emerging markets in Africa, Asia and South America already have solid broadband and wireless infrastructure in place and it s growing stronger exponentially. It s fair to assume that young people in these regions will follow the video consumption patterns of their peers in developed economies. For example, Millennials in the US watch YouTube more often than they watch television. Consumers aged spend 11.3 hours weekly watching free online video, compared with 8.3 hours for regularly scheduled television, according to a Variety magazine article. S

18 TALENT ATTRACTION IN EMERGING MARKETS 18 FIGURE 3 TOP FOUR FOR ING POTENTIAL S BUSINESS STUDENTS Social media Employer websites Outdoor/billboard ads TV ads RETURN 65% 54% 45% 42% S ENGINEERING STUDENTS Social media Employer websites Outdoor/billboard ads TV ads 60% 53% 42% 42%

19 TALENT ATTRACTION IN EMERGING MARKETS 19 S Implications for employers

20 TALENT ATTRACTION IN EMERGING MARKETS 20 TO APPEAL TO GRADUATES IN EMERGING MARKETS, COMPANIES MUST EMPHASIZE WORK-LIFE BALANCE AND ENTREPRENEURIALISM. S

21 TALENT ATTRACTION IN EMERGING MARKETS 21 To succeed in emerging markets, organizations should localize their employer branding by geography to ensure they align with what graduates in each country value most. It s worth noting that in several countries we surveyed, there was a clear preference for working for local organizations. Koç in Turkey, Panama Canal Authority in Panama, Pertamina in Indonesia, and Vinamilk in Vietnam topped the ideal employer list for business and engineering students in their respective countries. This could be interpreted as nationalistic pride, the desire to contribute to the economic advancement of their nation or perhaps just familiarity. Whatever the motivation, employers should take note of the importance of localizing their employer branding, including language, imagery, and other content. Mind the balance Young professionals care deeply about work-life balance, and those in emerging markets are no different. It s not really a career goal in the literal sense of the words, but rather, an aspiration about the degree to which work and personal life can blend. For Millennials in emerging markets, the ideal work-life balance may come from working in an environment where entrepreneurialism, creativity and innovation are encouraged. This is good news for the technology industry, which has a strong reputation for both innovation and work-life balance. Indeed, among the top five ideal employers cited most often by students from every country we surveyed were three tech giants Apple, Google and Microsoft. The worklife ideal is embodied by these companies, where employees can recreate at work, work from home, and generally balance the two intertwining spaces. If Millennials in emerging markets aren t given these opportunities, top graduates may prefer to launch their own entrepreneurial endeavors instead. Invest in professional training and development The strongest advantage employers have over the perceived desirability of self-employment is professional training and development. Graduates in emerging markets vote it as one of the most attractive characteristics of a potential employer. As such, we suggest employers emphasize structured training and development programs in their employer branding. In South Africa, law firm Norton Rose promotes S

22 TALENT ATTRACTION IN EMERGING MARKETS 22 a training program that includes partner mentors, compulsory secondments and an international academy where associates from around the world come together to contribute ideas and acquire new skills. Offer local internships Local internships might be an untapped opportunity for employers looking to attract top Millennial talent in emerging markets. Graduates in these regions are hungry for professional development opportunities and internships are an ideal way for both employers and employees to benefit. Why is this important? Our study revealed that students in emerging markets have low participation rates in real-world work experience. Just 34 percent of business students and 36 percent of engineering students we surveyed had completed an internship/apprenticeship in their own country. Our research has shown that students with real-world work experience tend to find jobs more quickly upon graduation. Universum s 2020 Outlook research series which surveyed the attitudes of more than 2,300 CEOs, HR and recruiting managers, employer branding executives and marketing executives confirms this finding. According to a recent PwC study of emerging markets, 67 percent of employers in India, 57 percent in Brazil, and 42 percent in Mexico reported difficulty filling job vacancies due to a lack of available talent, versus a global average of 34 percent. They cited a lack of experience, skills or knowledge as the primary reason for this struggle to hire appropriate workers. Universum believes that strong, localized internship programs could help rectify these issues by creating loyal and highly knowledgeable employees in emerging markets. S

23 TALENT ATTRACTION IN EMERGING MARKETS 23 Sign up to receive the full collection of industry reports in the Talent Insights Series. bit.ly/tiseries The Talent Insights Series is only a small selection of around 50 questions from the Universum Talent Survey. We explore in depth the career expectations of talent by asking them to evaluate their chosen employers based on four drivers of employer attractiveness: employer reputation and image, people and culture, job characteristics, remuneration and advancement opportunities. To get insights on your employer brand and understand how you compete with other employers, contact us. For more information about Universum s research services click here For more information about Universum s consulting services click here Contact Universum today and let us help you build a better employer brand S

24 TALENT ATTRACTION IN EMERGING MARKETS 24 ABOUT THIS REPORT The emerging markets report is based on all students studying business or engineering in countries considered as emerging markets. Global averages were calculated by taking the simple average of the percentage of students in each country who selected each option on the survey. Countries Business emerging markets Others Algeria Argentina Chile Brazil India Indonesia Thailand Malaysia Vietnam Mexico Engineering emerging markets Others S Colombia Costa Rica Ghana Kenya Morocco Nigeria Panama Peru Turkey

25 TALENT ATTRACTION IN EMERGING MARKETS 25 ABOUT THE UNIVERSUM TALENT SURVEY THE QUESTIONNAIRE Based on an exclusive survey, distributed via university and alumni contacts, the Universum Panel and local partners; Universum ensures the quality and validity of the end result by continuously maintaining a close dialogue with leading academics in the field. Our vast experience in the field and cooperation with leading professors from top universities enable us to stay at the front line of the development of employer branding. Our findings are also used all over the world as material for new research. Created based on more than 25 years of experience, extensive research within HR, focus groups and communication with both our clients and talent. Global perspective local insight 2,200 educational institutions Field period: Sept 2014 to March 2015 Total number of respondents in the 2015 survey: 1,000,000 S

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