Mobility

Managing mobility matters a European perspective
LANDWELL
New Europe: New Challenges, New Opportunities
human resource consulting

creating Value for your Business through People
Contents
1 Introduction 1.1 1.2 1.3 1.4 2 Context Our mobility project aims and objectives Our approach Report structure 1 1 2 2 2 3 3 3 4 5 11 13 14 14 14 15 17 20 22 22 22 23 27 28 28 29 31 36 38
How mobile is Europes workforce? 2.1 2.2 2.3 2.4 2.5 2.6 Defining the issues What are the forms of labour mobility? What has been the recent pattern of labour mobility in Europe? What is the role of mobile workers in European business? What are the barriers to labour mobility? Conclusions
Will Europes workforce become more mobile? 3.1 3.2 3.3 3.4 3.5 The need to look ahead Our perspective Businesses expectations Individuals aspirations Future trends and developments
How can the future challenges for public policy in the EU be addressed? 4.1 4.2 4.3 4.4 The policy challenge Existing and planned policy initiatives Key policy issues Conclusions
How can businesses successfully manage tomorrows mobile workforce? 5.1 5.2 5.3 5.4 The challenge for business Defining a strategic approach to mobile workers Key issues for business Looking forward to a mobile future
Appendix List of case study companies
PricewaterhouseCoopers
List of figures Figure 2-1: Size and composition of the foreign labour force in the EU Figure 2-2: Changes in international assignment type over the last two years Figure 2-3: Importance of foreign born employees in the workforce of European businesses Figure 2-4: What are the main reasons why your company employs/would employ staff who are mobile? Figure 2-5: How important is it to seek to recruit individuals who are prepared to be mobile across Europe? Figure 2-6: How difficult is it to recruit senior managers and professional staff? Figure 2-7: How have companies coped with recruitment difficulties? Figure 2-8: Businesses perceptions of the barriers to international labour mobility Figure 2-9: What do individuals see as the barriers to mobility? Figure 3-1: Would you like to move to live and work in another European country in the next five years? Figure 3-2: Would you like to move to live and work in another European country in the next five years? Figure 3-3: Which country (or countries) in Europe or elsewhere would you most like to move to live and work in? Figure 3-4: What motivates individuals to be internationally mobile? List of tables Table 2-1: Table 2-2: Table 2-3: Table 2-4: Table 2-5: Table 3-1: Table 3-2: Table 3-3: Table 3-4: Table 5-1: Table 5-2: Types of mobile worker How important is it to recruit mobile senior managers and professional staff? How difficult is it to recruit mobile senior managers and professional staff? How have companies coped with recruitment difficulties? Key barriers to labour mobility Will demographic changes in Europe increase the need for mobile workers? Will advances in technology mean that there will be less need to have mobile staff? Preferred destination of European mobile workers Future trends and issues affecting different types of mobility The role of mobile workers The role of different types of mobile worker 3 7 8 9 11 16 16 19 21 32 33 4 5 6 6 7 7 8 12 13 17 18 19 20
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Foreword
PricewaterhouseCoopers is committed to being at the forefront of thinking about the key issues facing businesses in Europe. One such issue is the mobility of workers. This is important for several reasons: business is looking for better ways to satisfy its need for talent as it becomes more international and as labour markets tighten; current mobility policies and practices in business are not always perceived as delivering value; individuals attitudes to mobility are changing as they become more qualified; and the European Union has recognised that a lack of mobility threatens Europes competitiveness. In order to understand better what the future holds, we have undertaken a major study of the issue. We hope you find it of interest, and would welcome your thoughts to continue the debate.
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1
1.1
Introduction
Context
One of the key principles of the European Union (EU) is the creation of an area without internal frontiers in which free movement of goods, persons, services and capital is ensured1.
In practice, the EUs progress towards this goal has been mixed. Good progress has been made towards enabling the movement of goods, capital and, to a lesser extent, services: around 60 per cent of Member States trade in goods is with the rest of the EU; the volume of intra-EU foreign direct investment has grown as a proportion of total inward flows to the EU; and trade in services between Member States has grown steadily. In contrast, the movement of workers between Member States has been limited. The European Commission estimates that the annual mobility of EU nationals within the EU is less than 0.4 per cent of the resident population (some 1.5 million people) although actual mobility may be somewhat higher. The comparable figure in the US is approximately six times greater. The relatively low level of international labour mobility within the EU is significant for business, individuals and policy makers. Business is concerned about the low level of labour mobility because: it is becoming increasingly international in its outlook and activities as it seeks to develop its markets but also wishes to retain consistent business processes across its international operations; the emergence of the knowledge economy is changing skill needs across all industries and occupations and placing an increasing premium on access to workers with the right skills; recent economic growth has led to tighter labour markets and growing evidence of skill shortages; expected demographic changes, especially the ageing population, reinforce the importance of obtaining and maintaining access to a skilled workforce; and a belief that the ability to offer employees an international career is a key element in attracting, retaining and developing the best talent. All this means that business is seeking more simple and effective solutions to its resource needs in New Europe. Other organisations, for example in the public sector, are also affected by similar influences although they have not been the focus of this study. Individuals aspirations are relevant as they become better qualified and look for a work-life balance. At the same time, the development of more flexible ways of working and the growth in portfolio careers mean that individuals are keen to ensure that they can seek opportunities outside their home countries. One ramification of these trends is that more people are interested in the opportunity to live and work in another country, particularly those in the younger age groups, where mobility is sometimes considered to be an important part of their own personal development. Policy makers in the EU have acknowledged the need to find ways to enhance labour mobility by reducing the policy-related barriers. Two years ago the Lisbon European Council ago recognised the potential contribution that the development of more flexible labour markets could make to the
1 Single European Act, 1986
development of the EU, subsequent European Council meetings have reaffirmed this view. The European Commission has been working with Member States to address some of the key policy issues. In February 2001 it published a communication, New European Labour Markets, Open to All, with Access for All, which is intended to lead to the removal or reduction of barriers to labour mobility. The communication proposed the establishment of a High Level Task Force on Skills and Mobility which reported in December 2001 with a series of recommendations to facilitate greater mobility. The Commission will decide which of the recommendations will be taken forward to the Action Plan for Skills and Mobility, to be submitted to the Barcelona European Council meeting in March 2002. Policy makers concerns reflect competitiveness issues linked to the rapid adoption of new technologies and the application of knowledge-intensive processes throughout the economy. They also reflect social considerations linked to evidence that labour markets across the EU operate imperfectly leading to considerable disparities in unemployment rates, especially at regional level.
1.2
Our mobility project aims and objectives

Against this background, our labour mobility project aims to identify and analyse the key business and policy issues linked to labour mobility. In particular, we wish to develop effective business solutions to the key issues by understanding: How would business like to be able to draw upon mobile workers in the future to help it achieve improved competitiveness? What sort of people would most like to move to live and work in other countries? Are individuals aspirations consistent with those of employers? Will people with the skills most likely to be needed in the market place also be the most mobile? If not, how best can any differences expect to be reconciled? What can be done to remove the barriers to mobility created by policies, especially those of the EU and its Member States?
1.3
Our approach
To understand these issues, and to provide a basis from which to develop new business solutions, we have: surveyed over 400 businesses in eight countries2 across Europe to gain insight into their views and perceptions of the potential role and implications of increased labour mobility; undertaken a series of case studies with nearly 25 multinational businesses across a range of industry sectors within Europe to gain a more in-depth perspective of their approach and attitude to a wide range of mobility issues see the Appendix for list; and surveyed over 10,000 individuals in ten countries3 across Europe to understand their attitudes towards moving between countries to live and work and their perceptions of the opportunities for, and obstacles to, such mobility.
1.4
Report structure
Our report considers four key issues in each of the subsequent sections: How mobile is Europes workforce? Will Europes workforce become more mobile? How can the future challenges for public policy in the EU be addressed? How can businesses successfully manage tomorrows mobile workforce?
2 The countries covered are the Czech Republic, France, Germany, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom. 3 The survey of individuals was undertaken in those countries covered by the business survey plus Hungary and Poland.
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2.1
How mobile is Europes workforce?

Defining the issues
This section considers the current pattern of mobility within Europes workforce. It starts by identifying and describing different forms of international labour mobility. It then examines recent trends in the key types of labour mobility. Subsequent parts analyse the role played by mobile workers in European-based businesses and consider the evidence from our research on the key barriers to labour mobility within Europe, especially the EU.
2.2
What are the forms of labour mobility?

International labour mobility is multi-dimensional: it can take many different forms depending, for example, upon whether it is motivated by the employer or the individual and whether it lasts for a few months or for several years. We have identified eight key types of mobile worker from the business perspective (see Table 2-1).
Table 2-1:
Types of mobile worker
the traditional international expatriate whereby an employer moves an employee to live and work in a foreign country, either long-term, typically between two and five years, or short-term, usually between one and twelve months, but always on the basis that the employee is expected to return home the permanent transfer whereby an employee is moved by his or her employer to take up a contract of employment on local terms and conditions on a permanent basis in the host company with no expectation that he or she will return to employment with the company in another country, including his or her home country the international hire whereby an individual is recruited in one country specifically to work on local terms and conditions in another country which is not their current place of residence the local hire in which a foreign-born individual is recruited and works locally in their place of work which is not their birthplace or place of permanent residence the cross-border commuter, which is a more recent form of mobility, whereby an employee commutes from their home to a place of work in another country, usually on a weekly or bi-weekly basis, while their place of residence remains unchanged in their home country the rotational assignee, another new form of mobility, in which an employee commutes from their home country to work in another country for a few months without changing their home: rotational assignments typically involve work in isolated or hardship locations although they are now being used more widely a virtual assignee who assumes business responsibilities which span several countries and works as part of a team located in several countries but does not need to relocate: a virtual assignment often involves extensive business travel to work with colleagues (rather than to develop new client or supplier relationships) and is supported by wide use of information and communications technologies (ICT); and teleworking whereby an employee, supported by information and communications technologies, works from any location, especially his or her home
Although the focus of this project is on labour mobility involving the movement of people to work, business (and other organisations) often has alternative strategic options that entail the relocation of some or all of its activities. In this case, international flows of capital can substitute for the movement of workers.
Like people to work, such work to people can take a variety of forms. Typical examples of the movement of work to people are linked to investment in new business operations and the relocation of existing activities, for example to be closer to their target market or to take advantage of potential cost savings. They may also be associated with business reorganisations, for example, as businesses invest in shared-service centres. Significantly, such business activities can contribute to the demand for mobile workers, rather than being an alternative. Arguably, too, virtual working and teleworking, which have emerged as the result of the application of advancements in information and communications technologies, alter the relationship between the location of work and people.
2.3
What has been the recent pattern of labour mobility in Europe?

Mapping the pattern of labour mobility in Europe is difficult since none of the available data measures actual flows of workers between countries on a consistent basis. Rather, such data as are available tend to focus on the migration of people. Nevertheless, a degree of consensus exists about the recent pattern and trends based on official statistics. This suggests that: historically, the level of labour mobility in the EU has been low compared to that of the US; the rate of migration has changed little during the 1990s; the importance of the foreign-born workforce varies considerably between countries in Europe as Figure 2-1 illustrates: it is highest in Luxembourg, Austria and Germany and smallest in Spain and Italy; and mobile EU citizens (from other Member States) are most important in Luxembourg, Belgium and Ireland and least important in Greece and Italy (see also Figure 2-1).
Fig 2-1:
60 50 % of total labour force 40
Size and composition of the foreign labour force in the EU

100
60 30 40 20 10 0 Belguim Denmark Ireland Italy Luxembourg Netherlands Spain Sweden Germany Portugal Austria France Greece UK 20
EU citizens in total labour force

Source: OECD
Foreign labour force in total labour force
EU citizens in foreign labour force
% of foreign labour force
80
Fig 2-2:
Changes in international assignment type over the last two years
Permanent transfers
Long-term
Commuter
Business trips
Short-term
Virtual % of firms -40 -20

Decrease
Source: PricewaterhouseCoopers, IAS Survey 1999/2000
20
Increase
40
60
80
These data, however, do not reflect all of the recent trends in the different types of mobile worker. In particular, because of the way in which they are collected, they tend to exclude workers on short-term assignments. Our survey of firms expatriate staff suggests that there has been an overall increase in mobile working within organisations but, interestingly, the relative importance of virtual and short-term assignments has increased most significantly (see Figure 2-2).
2.4
What is the role of mobile workers in European business?

Figure 2-3 shows the importance of mobile workers to the European businesses covered by our telephone survey. It distinguishes between secondees (i.e. workers moved internationally by their employer for at least six months) and foreign-born workers locally recruited for the short-term (less than six months) or the long-term (over six months). For each type of mobile worker, the chart shows how the proportion of each type of mobile worker in the total workforce is distributed across the firms in our business survey. It shows that: three-quarters of businesses employ foreign-born long-term workers; nearly 20 per cent of businesses have workforces in which more than 10 per cent are foreignborn long-term workers: almost half of these companies are based in Switzerland; and three-quarters of businesses employ no foreign-born short-term workers and nearly two thirds have no foreign-born secondees. Our survey also reveals that: only 13 per cent of surveyed businesses do not employ any foreign-born workers at all; and over one-quarter of firms do not systematically record whether or not their employees are foreign born or on secondment. These findings suggest that if a business employs foreign-born workers, it tends to do so through international workers recruited locally on long-term assignments rather than through secondments within the firm or short-term assignments.
Fig 2-3:
Importance of foreign born employees in the workforce of European businesses
Foreign-born short-term workers
Foreign-born long-term workers
Foreign-born secondees % of businesses 0

Zero 1 to 2% of workforce
20
3 to 10% of workforce
40
60
80
100
Source: PricewaterhouseCoopers survey
Businesses were asked what are the main reasons why European firms recruit workers who are prepared to be mobile across Europe. As Figure 2-4 illustrates, the two main reasons are to obtain appropriate skills and to help build up the business internationally. Staff retention and cost saving are the two least important reasons.
Fig 2-4:
What are the main reasons why your company employs/would employ staff who are mobile?
To obtain appropriate skills
To build up the business internationally To improve customer services To standardise operations across Europe To retain staff To reduce costs Other Dont employ mobile staff % of businesses 0 10 20 30 40 50
Figure 2-5 shows the importance businesses attach to being able to recruit workers who are willing to be internationally mobile in different skill groups. It indicates that mobility is most valued amongst senior managers and professional staff. Very few businesses feel that it is important for other groups of workers to be internationally mobile. The importance of recruiting mobile workers also varies between countries as Table 2-2 illustrates.
Fig 2-5:
How important is it to seek to recruit individuals who are prepared to be mobile across Europe?
Senior managers Professional Skilled manual Clerical/Secretarial Others % of businesses 0
Not at all important Not very important
20
40
Neither/nor
60
80
100
Very important
Quite important
Table 2-2:
How important is it to recruit mobile senior managers and professional staff?
More companies in France (78%) and Spain (73%) think it is important to recruit senior managers who are prepared to be mobile; they also attach more importance to recruiting professional staff who are mobile Of the other EU countries, Sweden (49%) and the UK (48%) attach least importance to recruiting mobile senior managers Overall, Czech companies attach by far the least importance to recruiting mobile senior managers and professional staff
Businesses were also asked about the extent to which they had experienced recruitment difficulties in the past year and, if so, how they had addressed these difficulties. The results indicate that the greatest difficulties. As Figure 2-6 indicates, the greatest difficulties were experienced in the recruitment of senior managers and professional staff: 48 per cent of firms indicated that these groups had been either very difficult or quite difficult to recruit with the problems varying between countries as shown in Table 2-3.
Fig 2-6:
How difficult is it to recruit senior managers and professional staff?

Other man Skilled man Clerical/secretarial Professional Senior manager % of businesses 0
Very easy Quite easy
20
Neither/nor
40
60
Quite difficult
80
100
Very difficult
Table 2-3:
How difficult is it to recruit mobile senior managers and professional staff?
Most companies in Switzerland (64%) had experienced difficulties recruiting senior managers whereas the least difficulty had been found by companies from Germany (31%) and Sweden (37%) The greatest problems recruiting professional staff had been experienced by firms in the Czech Republic (65%), Switzerland (63%) and the Netherlands (62%); the least difficulties had been found in Sweden (21%)
Lack of (access to) skills was cited as the main effect of recruitment difficulties. Firms were also asked about how they had coped with the recruitment difficulties that they had experienced. Figure 2-7 shows that 21 per cent of firms had resorted to a greater use of internationally mobile workers. This compares with 48 per cent of firms that had looked to provide more training for existing employees, 35 per cent that had employed new technologies and 30 per cent that had offered higher benefits in order (presumably) to attract and retain employees.
Fig 2-7:
How have companies coped with recruitment difficulties?
Increase use of mobile workers Increase training of existing employees Implement new technologies Increase pay levels/benefits Increase use of contract workers Outsource business processes Increase workload of existing employees Increase use of part time workers Relocate business Increase use of older workers No problems recuiting % of businesses 0
10
20
30
40
50
The results show substantial differences in the use of mobile workers to overcome recruitment difficulties between firms in different European countries. Businesses located in Switzerland, Germany and France did so the most (around 35 per cent), while firms in the UK, Sweden (both 17 per cent) and the Netherlands (8 per cent) were at the other end of the spectrum. Firms in the latter group of countries preferred to increase the level of pay and benefits. Further details of businesses responses are summarised in Table 2-4.
Table 2-4:
How have companies coped with recruitment difficulties?
Firms in Germany have made use of the most different approaches to address recruitment difficulties Increased training of existing employees is used most extensively in Spain (75%) and Germany (74%): it is used least frequently in the Czech Republic (3%), France (28%) and the Netherlands (29%) The application of new technologies has been used most often by businesses in Germany (63%) and Spain (59%) whilst firms in France (22%) and the Netherlands (27%) have made least use of them Firms in Switzerland, the Netherlands and the UK are most likely to increase pay/benefits levels The use of contract workers is favoured in Germany (57%) and, to a lesser extent, Sweden (37%) Linked to this, outsourcing has been used most often by companies in Germany (54%) and Spain (39%): it is unheard of in the Czech Republic
Our case studies also provide insights into the different ways in which businesses are using mobile workers. Although it is difficult to generalise, it is evident that businesses use of mobile workers is significantly influenced by the extent to which business decisions affecting their core business processes such as manufacturing and logistics operations, brand management and intellectual capital development are taken at the global level or by regional or local management. On this basis we identified three broad approaches.
Global operators
Typically the first group of businesses is managed globally across most key elements of the business operations. Although their activities may be geographically dispersed, and employees may work in many different countries, all key business, product and organisational development decisions are taken centrally. Examples of these companies include the global oil companies and global automotive companies. These businesses tend to have the most explicit and developed workforce mobility strategies. They have extensive experience of using cross-border assignments, permanent transfers and hiring internationally for specialist, professional and managerial positions. They tend to set formal targets for numbers of mobile employees. Having an internationally mobile workforce is central to the global management of the business, although mobile workers are also used to achieve more tactical objectives such as filling critical skills gaps. In some countries, these organisations also use foreign-born local hires to meet their requirements for clerical, skilled manual and other occupational categories.
Our career expatriate pool has been substantially reduced, we are gradually moving toward a more open and fluid system with shorter assignments with a range of different features to suit the needs of employees
Being experienced and extensive users of mobile employees, these businesses are now moving away from the use of expensive expatriate packages for the bulk of their mobile workforce. Their tendency now is to focus on international hired workforce or permanent transfers, rather than traditional long-term international expatriates, and to employ them on local terms and conditions. A possible exception is pension and social security provision where differences between national systems still make it impractical to expect employees to switch out of their home country systems.
These global organisations are also relaxing their long-established policies of using an elite cadre of internationally mobile staff who join the firm at the start of their careers and remain with it on a career-for-life basis with the expectation that their careers will be managed on an
international basis. Firms now view workforce mobility as one element of an effective organisational development and resourcing strategy as well as a strategic career development tool.
Global strategy, market centric

The second group of businesses tends to take decisions globally about brand and knowledge management issues while allowing greater decentralisation of decision making on what are seen as operational issues. These companies invest heavily in building global brands and intellectual property. Furthermore, developing core competencies, managing knowledge effectively and ensuring consistent business processes are all seen as issues of strategic importance. Within this framework, however, local management has a high degree of delegated authority over the development of local or regional market strategies. Often, this is because such strategies are needed to enable the business to respond to important local differences, for example in terms of the regulatory environment and logistics/supply chain management. Companies that fall into this category include major food and drink manufacturers, retailers and pharmaceutical companies. Compared with the most global businesses, these firms tend to make more selective use of mobile workers. Employee mobility strategies focus on the power of mobility to create and reinforce global intellectual capital. Mobile employees are, therefore, likely to be found primarily in brand, product and process development. The firms top management team is also likely to consist of internationally mobile executives. As more selective users of mobile staff, these firms have been more willing to continue to treat their international assignees differently from domestic employees. Mobile employees are frequently employed on expatriate packages which aim to safeguard the employees home country net income level and standard of living and which, consequently are expensive. Cost management is less of a priority. An important feature of these firms is that they often use local nationals to fill sensitive, senior roles involving the development of relationships with local clients, especially in the public sector. For example, one of the companies we interviewed employs local nationals to lead its defence industry relationship teams. Another company, whose manufacturing operations are regarded by some governments as strategically important, uses local nationals to run these businesses. Many of these firms are established and experienced users of mobile employees and have well-developed policies for facilitating cross-border moves by key specialist, professional and managerial staff. Some are also introducing new global programmes to create international cadres of senior executives of the future. They are also heavy users of virtual (geographically distributed) teams, particularly for project working. These teams help to reinforce the development of cross-border awareness and teamwork.
The transfer of knowledge and sharing of ideas enhances our competitiveness, employee mobility is the best tool for doing this
Devolved operators
The final group of businesses operates with high degrees of delegated authority to local management. Apart from critical decisions such as major acquisitions and divestments, most business development decisions are the responsibility of local management. Moreover, the business economics mean that a globally integrated operation is unnecessary. In general, knowledge transfer between different parts of the organisation is a relatively low business priority, although cost management pressures drive crossbusiness unit and territory investments in, for example, shared service centres.
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The approach to mobility of these firms tends to be more pragmatic. The ad hoc use of mobile employees means that they tend not to have formal policies covering the use and treatment of mobile employees, in particular the use of international assignments, although this does not mean that mobility is taken any less seriously. They also make less use of formal international assignment policies and more use of less formal approaches, for example local hires of mobile staff and use of virtual teams.
2.5
What are the barriers to labour mobility?

Part of the reason for the limited use of mobile workers to address recruitment difficulties is the existence of various barriers to international labour mobility. These barriers divide into three broad (and overlapping) groups: those which reflect businesses policies and approach to its international workforce; those related to individuals preferences regarding mobility; and those linked to EU and national policies. Figure 2-7 shows how EU businesses view the impact of each different potential barrier to mobility. It is clear that: the biggest barriers are those which are policy related, notably the lack of integrated Europeanwide employment legislation, differences in tax systems and, to a lesser extent, differences in benefit systems; the most important company-specific factors are also linked to policy (for example, the variation in the legal status of employees between countries and immigration issues) although differences in remuneration are also seen as important; and the availability of employment opportunities for spouses and language skills are also seen by businesses as being significant obstacles to international labour mobility. It is also evident that businesses do not view the potential availability of a mobile work force or their ability to manage such a workforce as major barriers. Table 2-5: Business
there are management issues attached to a mobile workforce, greater mobility will create a key challenge for HRM many problems arise as a result of differences between our own internal policies, the terms upon which our international workers are employed are highly inconsistent, we need a more streamlined approach
Key barriers to labour mobility
Individuals
the shift toward two income households means the lack of employment opportunities for spouses is probably one of the biggest barriers encountered it is increasingly difficult to get highly skilled senior managers to accept international assignments, the balance of power is shifting
Policy
immigration procedures take endless time and are very complex pension plans are one of the biggest barriers to mobility, it is very difficult to find a transferable, standardised pension scheme
Source: Case study interviews, PricewaterhouseCoopers
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Fig 2-8:
Businesses perceptions of the barriers to international labour mobility
Integrated employment legislation Tax systems Spouse employment Language skills Benefit systems Remuneration Variation of legal status of employees Immigration issues Housing and schools Pension issues Cultural integration Employee remuneration Ability to recruit mobile staff locally Cost of relocating employees Availability of a mobile workforce in Europe Recognition of qualifications Local employee protection Management of mobile workforce Existence of European Works Councils Lack of info on employment opportunities Impact on career development Opportunity to enhance skills % 0
Hinders a lot
20
40
Hinders very little
60
80
100
Hinders to some extent
Hinders a little
Does not hinder at all
Individuals views of the factors which inhibit their willingness and ability to live and work in other countries differ to some extent from those attributed to them by business managers, as Figure 2-8 illustrates. Generally, individuals see the potential barriers to mobility which affect them directly as more significant than business does. Moreover, the importance attached to the different barriers varies significantly. Social barriers are perceived to be more important by individuals, particularly family ties and factors such as childrens education and housing. Lack of information about employment opportunities, worries about lack of recognition of professional qualifications and lack of pensions portability are also seen as significant negative factors for individuals. In contrast, both individuals and businesses see (a lack of) language skills as an important barrier. From our discussions with business, it is evident that differences between national policies related to tax, social security, pensions, employment law and immigration, impede cross-border labour mobility in various ways, for example: differential rates of income tax and differences in the structure of tax systems between Member States add to the costs of mobility, as do differences in the structure and levels of individuals social security contributions; the potential loss of pension rights, for instance due to a lack of portability of pensions arising from issues relating to double taxation presents a further obstacle;
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in the case of non-EU nationals, business believes that Member States immigration policies give too much weight to protecting domestic labour markets with employers (and their prospective employees) often subject to lengthy waiting times and complex bureaucracy when applying for work permits; and within the EU, movement of non-EU nationals between Member States is restricted by the need for a work permit in each individual Member State: this presents a problem in particular for the many businesses operating at a pan-European level.
Fig 2-9:
What do individuals see as the barriers to mobility?
Family (eg child education) Language skills Info on employment opportunities Recognition of qualifications Spouse employment Transferring pension Suitable housing Visa/work permit Different culture % 0
Would hinder a lot Would hinder to some extent
20
Would hinder a little
40
60
Would hinder very little
80
100
Would not hinder at all
Source: MORI survey for PricewaterhouseCoopers
2.6
Conclusions
The key conclusions that emerge from this analysis are that: international labour mobility takes different forms and represents an alternative to work mobility from the business perspective but its nature and the distinction between the two are becoming blurred through the emergence of new forms and patterns of mobility; there is a low level of labour mobility to and from the EU, especially compared to the US, and worker mobility between the EU and the rest of the world is important as well as within the EU; business attaches importance to being able to recruit and retain a high-quality workforce; a small proportion of European businesses depend heavily on foreign-born workers but most make some use of such workers, with locally recruited workers; different approaches to the management of labour mobility have emerged across business; and various social, cultural, and most importantly, policy related factors act as barriers to labour mobility and these add to the cost of business and adversely affect international competitiveness.
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Will Europes workforce become more mobile?
3.1 The need to look ahead

Looking ahead, it is important to consider the forces that will affect the future mobility of workers. In particular, it is vital to understand whether past trends in mobility can be expected to continue in the future and, if not, how they might change.
This section examines three main sources of evidence: our perspective on the forces which we expect to change the European business environment based on earlier research; businesses expectations about mobility based on the survey and case studies undertaken for this study; and individuals aspirations, again based on the survey of individuals undertaken for this study. The final part assesses the implications of the available evidence for different types of mobile worker. In particular, it highlights the consistent trends and the potential tensions.
3.2
Our perspective
The events of 11 September and its aftermath mean that, for many businesses, this is a time of critical and unparalleled uncertainty. Significantly, however, there are other important underlying forces for change as well as emerging forces that may have an impact from a European business perspective. Although they are interrelated, these forces can be grouped under five main headings: social forces which include the ageing of Europes population, changing social structures, developing views about the appropriate work-life balance, increasing individual empowerment, evolving attitudes to travel and more challenging attitudes towards global brands; technological forces which have been evident for some time as organisations and individuals look to make use of new developments, especially in ICT, but which could lead in the future to further transformation as the new technologies are widely applied: potentially, these will influence many aspects of working life, including working methods, the organisation of companies, the skills required, the need for and approach to training and the way people communicate with each other; economic forces which derive from further economic growth and closer economic integration, for example following the introduction of the euro, which will be reflected in the advent of a more competitive business environment and further industry consolidation, notably through cross-border M&A activity; environmental forces which will have important direct and indirect impacts on business through, for example, their effects on the cost of travel and on businesses ability to recruit and retain staff as employees take a more holistic view of potential employers; and various political forces at global, EU and national levels: for example, enlargement of the EU could alter the balance of influence within EU decision making as well as having a direct effect on the free movement of workers and financial pressures for welfare reform could mount if governments are unable to push through effective reform in areas such as pensions.
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All of these forces have important potential impacts on business that will shape its need for a mobile workforce as well as the availability of such a workforce. In particular, European businesses are likely to need to become: even more international in their outlook; responsive to more intense competition as, for example, the euro makes prices easier to compare and enlargement of the EU offers easier access to lower-cost competition; more responsive to the changing demands of their customers; more flexible organisationally as they seek to keep ahead of the competition; and more focused on retaining and developing their people which, for many, will be a key potential source of differentiation and competitive advantage. These impacts will themselves give rise to a further set of challenges for business in relation to human resource management. These include the need to: recognise that human resource management will be a key means to obtain and maintain competitive advantage; develop international reward and benefit packages which: control costs recognise performance retain and motivate a key strategic asset reflect possible changes in the structure of state benefits such as pensions; integrate businesses following cross-border M&A activity and as part of international alliances; be sensitive to the issues associated with cross-country diversity; and respond to individuals growing desire to live and work internationally by treating international experience as a valued part of an individuals career development.
3.3
Businesses expectations
Our business survey and case studies provide some new and important insights into how businesses expect their own requirements for mobile workers to change and how far they expect individuals willingness to become mobile workers to meet those requirements. On the demand side, our business survey shows that nearly one quarter of the businesses surveyed (22 per cent) expect that their need for a mobile workforce will increase a lot over the next five years. A further 47 per cent expect their need to increase a little. In other words, almost 70 per cent of businesses expect their need for a mobile workforce to increase over the next five years. In contrast, barely 2 per cent of firms expect their need for mobile workers to decrease. A majority of respondents in all countries except one expect the need for mobility to increase. Most companies in Spain (85 per cent) expect their need for mobile workers to increase, whereas in the Czech Republic only 42 per cent expect the need to increase. In part because firms are adjusting to the initial inflow of foreign workers during the reform process. Nearly 60 per cent of businesses agree, and only 13 per cent disagree, that demographic changes in Europe will increase the need for mobile workers in the future. Thus, businesses anticipate a continuing tightening of the labour market as a result of the ageing of the population and see the increased use of mobile workers as one way of addressing it.
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Table 3-1:
Will demographic changes in Europe increase the need for mobile workers?
Around 80% of firms in Germany, Spain, Switzerland and the Czech Republic agree that the ageing population will increase the future need for mobile workers In contrast, only 43% of Dutch firms and barely half of UK firms agree that demographic change will increase the need for mobile workers
Business does not expect technology to reduce the need for mobile staff. Only 18 per cent of all businesses think that advances in technology will mean that there will be less need to have mobile staff. This suggests that business believes that future developments in ICT will not obviate the need for face to face contact and the physical presence of workers.
Table 3-2:
Will advances in technology mean that there will be less need to have mobile staff?
Almost half the businesses surveyed do not expect advances in technology to reduce the demand for mobile staff; a significant minority is unsure of the outcome More companies in Sweden and France disagree that technology will replace mobile staff than in other countries Firms in the Czech Republic are most supportive of the view that technology will reduce the need for mobile staff
Looking ahead, it is significant that about two-thirds of businesses expect the number of people who are willing to be mobile workers to increase in the next five years. In France, Germany and, in particular, the UK, more firms expect their need for mobile workers to increase than expect the number of willing mobile workers to increase. If these businesses expectations prove to be correct, this suggests that these businesses ICT developments enhance may face a more marked shortfall in the availability of mobile mobility. Innovations such as video workers, especially those with scarce skills. On the other hand, in the Czech Republic, Sweden and Spain, more firms expect the conferencing facilitate virtual number of willing mobile workers to increase than expect their meetings across wide geographies. need for mobile workers to increase.
Yet personal contact remains the optimum way to develop business relationships
Nearly half of the firms in our survey (48 per cent) agree that There is no skill shortage in Greater Europe people are just in the wrong place. Less than one quarter disagree.
Businesses appear generally sanguine about their ability to manage a mobile workforce. Few see it as a major barrier to mobility, although many firms recognise it as an issue. Moreover, when asked what mobility issues they consider it most likely they will need to address over the next five years, no one issue was identified by as many as a quarter of all respondents. The most frequently mentioned were: employee remuneration and benefits (mentioned by 24 per cent); employment legislation (also 24 per cent); (practical issues associated with) managing a mobile workforce (19 per cent); and cultural aspects of managing a global business (16 per cent).
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3.4
Individuals aspirations
Our survey of Europeans of working age shows that a significant proportion of the population of working age (17 per cent) would definitely or probably like to move to live and work in another country in the next five years (see Figure 3-1). This proportion can be contrasted with the current level of migration in the EU which is estimated to be around 0.4 per cent of the resident population, equivalent to some 0.5 per cent of the population of working age. Those in Poland and Sweden have the greatest desire to move. Would you like to move to live and work in another European country in the next five years?
Poland Sweden Switzerland GB Czech France Netherlands Germany Spain Hungary % of population aged 16 and over 0
Definitely
Fig 3-1:
10
Probably
20
30
40
3.4.1 Who wants to be mobile?

The extent to which individuals in the EU wish to move to live and work in another country varies significantly between different groups of the population as Figure 3-2 illustrates: a much higher proportion of younger people would like to move than those in older age groups: this is important because a combination of ageing and the desire of business for experienced employees means that older workers will be an important part of the workforce in the future; single people are more inclined to move than those who are married or living together; senior managers/directors are more inclined to want to move than those in other occupational groups, although these data need to be interpreted with caution because of the difficulties establishing a consistent occupational classification across countries; those on low incomes are slightly less keen to move, perhaps reflecting the costs of mobility; and a slightly higher proportion of men would like to move than women.
17
Fig 3-2:
Would you like to move to live and work in another European country in the next five years?
Total Male Female Under 25 25-39 40-59 60+ Married/living together Single Widow/separated/divorced Low income Middle income High income Self-employed Senior manager/director/owner Professional/Mid management Clerical/secretarial Skilled manual worker Other manual worker % of population aged 16 and over 0 5 10 15 20 25 30 35
Yes definitely like to move

Yes probably
3.4.2 Where do they want to go?

Individuals were also asked about where they would most like to move to live and work. The majority in all countries prefer to move within the EU as Figure 3-3 shows. The exception is in the Czech Republic. The favoured destinations vary to some extent from country to country as Table 3-1 illustrates. For citizens of the EU, the preferred destinations are Spain, France and Italy. Individuals from the Accession Countries have a strong preference for Germany followed at some distance by Italy and France. A significant proportion of individuals (almost one-third) would like to move beyond Europe, with the USA, Australia and Canada being the favoured destinations.
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Table 3-3:
Home country France Germany Netherlands Spain Sweden UK Czech Republic Hungary Poland Switzerland
Preferred destination of European mobile workers

First choice destination USA USA Spain UK UK Spain Germany Germany Germany France Second choice destination Canada Spain France France Spain France USA USA USA Italy Third choice destination UK Australia Italy Italy/Germany France USA UK Austria Italy UK
Fig 3-3:
Which country (or countries) in Europe or elsewhere would you most like to move to live and work in?
Non-Europe 31% EU 55%
Other Europe 9% Accession Countries 5%

3.4.3 What motivates individuals?

Overall, the two strongest motivators of individuals desire to move to live and work in other countries are a wish to improve their pay and income and to enhance their standard of living. Although this is true across Europe, it is most evident in the Accession Countries, as Figure 3-4 illustrates. Significantly, commitment to an employer is seen as the least powerful motivating factor of those put to individuals. Furthermore, individuals interest in realising what might be regarded as longer-term goals such as skills development and enhanced career development opportunities through working internationally is limited. All the evidence suggests that individuals are more concerned about being able to secure immediate, short-term benefit. In part, this may also be because individuals welcome the opportunity to work internationally for a short period, but most plan to return home in the longer term.
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Fig 3-4:
What motivates individuals to be internationally mobile?*
Improve pay/income Improve living standard Experience life abroad Develop skills New employment opportunities Enhance career opportunities Commitment to employer 1.0 1.5 2.0 2.5
EU
3.0
3.5
4.0
4.5
5.0
Accession
*Using a scale of 1 to 5 (where 1 means would not motivate at all and 5 means would be a major motivation) respondents were asked to what extent each of the factors would motivate them to live and work in another country.
3.5
Future trends and developments

The analysis and discussion above suggest some important similarities of view. They also highlight several possible tensions arising from the different needs and wishes of business and individuals. Moving forward, the key issues which both policy makers and business will need to take into account are that: competitive pressure on businesses operating in Europe, especially the EU, will intensify as economic integration proceeds and this will heighten the value to business of recruiting and retaining talented people whilst at the same time managing costs; business expects demographic change to add to the pressures it faces although some businesses recognise that it will create new pools of potentially mobile older workers into which they might tap; although the use of new technology will allow greater flexibility for employers and workers, it will not remove the need for mobile workers: the importance of access to people and skills means that business will benefit from access to the largest possible pool of labour; at the aggregate level, the need for mobile workers and the willingness of workers to move to live and work in different countries will both increase; worker mobility is most pronounced in certain groups of the population; the destinations to which individuals would most like to move are not necessarily those where the need for mobile workers is likely to be greatest; whereas business is generally looking to recruit mobile senior managers and professionals, those who are keenest to move are the relatively young and inexperienced; individuals motivations do not always fit comfortably with those of business: whilst it is in the interest of business to promote commitment and loyalty, individuals appear more likely to respond to short-term factors; as individuals skills and qualifications increase, their loyalty towards employers will decline;
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the sustainability of some emerging forms of mobility, for example cross-border commuting, will be questioned; business cannot afford to become complacent about its ability to manage an internationally mobile workforce; the interaction of the increasing pressure on business to reduce its costs, including those of its mobile workforce, and the importance of the opportunity to increase pay and income and standard of living as individual motivators mean that business will need to match performance and reward; and policy will need to keep pace with developments to ensure that policy driven barriers do not restrict future growth in mobility and, thus, hinder both business and individuals from realising their needs and aspirations. These issues will affect the different types of mobility in different ways as Table 3-2 illustrates.
Table 3-4:
Type of mobility Traditional international assignment
Future trends and issues affecting different types of mobility

Future trends and issues Increased pressure to reduce cost Trend towards shorter assignments business looking for greater flexibility Need for local customer knowledge will weaken demand Limited (and declining?) commitment of individuals to employer Trend towards shorter assignments business looking for greater flexibility Limited (and declining?) commitment of individual to employer Most relevant for more senior staff provides access to wider talent pool Expect individuals to become more willing to be internationally mobile but will prospective migrants offer the right skills in the right place? Potentially increasingly relevant for young/less experienced/more junior Increasing desire for mobility driven primarily by economic factors suggests potential increase in supply but will prospective migrants offer the right skills in the right place? Possible threat to lower skilled mitigated by cost of mobility Depends on real flexibility within labour markets Staff retention will be a key issue threatens long-term sustainability Business will need to offer better support networks to commuters If it can be made to work, eliminates need to relocate (and for other types of mobile Difficult to manage flexibility Possible compromise solution in short-term Limited applicability? Dependent on ease of transport some locations are more suitable than others Business reorganisation creating more opportunities Sustainability in long-term still to be proven Can help create international management structure Can ease cost pressures
(Permanent) transfer International hire
Local hire of mobile worker
Cross-border commuting
Rotational assignment
Virtual assignments
Teleworking
Expected to grow rapidly Enhances rather than replaces need for mobility provides access to new labour pool International applicability less clear given language
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How can the future challenges for public policy in the EU be addressed?
The policy challenge
Our research has highlighted various barriers that inhibit the free movement of workers within the EU. Whilst some of these barriers are social and cultural in their origin, others relate to differences between national policies and/or the lack of appropriate EU policies.
This section considers the key challenges for public policy in Europe. It focuses on the EU and its Member States. As well as considering issues linked to the free movement of workers within the EU, it also considers some of the global aspects to the debate about international labour mobility in Europe, for example those connected with the efforts being made by WTO Members (including the EU) to liberalise barriers to trade in services under the GATS4. The latter are relevant because there is a significant flow in both directions of workers between the EU and the rest of the world. Our survey of businesses has identified the key policy-related factors that business sees as hindering the free movement of workers in Europe. In descending order of importance they are: the lack of integrated European-wide employment legislation; differences in tax systems between Member States; the lack of language skills; differences in benefit systems between Member States; immigration issues; differences in pensions systems between Member States; the lack of mutual recognition of professional qualifications; and the availability of information on international employment opportunities. In interpreting this list of policy-related barriers, it is important to recognise that many international businesses operating in Europe have become used to managing their internationally mobile workforce around the existing policy regime. Hence, some barriers have become accepted. Nevertheless, both our surveys and the case studies have confirmed the importance attached to reducing the barriers to mobility by both businesses and individuals.
4.1
4.2 Existing and planned policy initiatives

As previously noted, the importance of the public policy issues linked to labour mobility has already been recognised in the EU: Member States agreed about the need to make labour markets more flexible at the Lisbon European Council; Member States endorsed this approach at the Stockholm European Council; the European Commissions Communication in February 2001, New European Labour Markets, Open to All, with Access for All set out initial policy proposals for addressing some of the barriers as well as establishing a High Level Task Force on Skills and Mobility to advise on the key policy issues; and the Task Force reported in December 2001.
4 General Agreement on Trade in Services.
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4.3
Key policy issues

Against this background, we consider each of the main policy issues identified by business to assess how far the existing or planned initiatives can be expected to address its concerns and to consider other possible solutions. In so doing, we recognise the need to take account of the wider implications of some of the policy challenges, for example in relation to other policy objectives such as cohesion. In particular, it is important to recognise the potential political difficulties of selling some of the possible policy changes. Linked to this point, and the sensitivities aroused by some of the issues, especially those related to the issue of competence, a key consideration is the EUs approach to the broader policy issues. Besides the harmonisation of policies through the implementation of Regulations and Directives, the EU has recently adopted open co-ordination which is based on benchmarking and best practice and which is intended to help Member States converge towards common objectives. Thus, it is relevant to consider to what extent such an approach might be relevant to addressing some, if not all, of the policy issues linked to mobility.
4.3.1 Lack of integrated European wide employment legislation

The lack of integrated European-wide employment legislation affects the status of workers in different countries. It is seen by business as a significant barrier to labour mobility, especially within the EU. At present, over 85 per cent of the firms in our business survey structure their employment contracts on a country-by-country basis. Less than 10 per cent have pan-European contracts. Looking ahead, almost half of those firms without pan-European contracts would like to be able to introduce them. The enthusiasm for such contracts is especially strong among Spanish and British based companies. When asked about the most desirable elements of a pan-European contract, the areas most frequently cited by business are: benefits and social security; pensions; sickness benefits; minimum remuneration; holiday provision; and termination/notice periods. Many of these suggestions reflect some of the other policy related barriers identified by our research, for example those linked to benefits and pensions. As such, the ease with which they can be addressed is linked to the sensitivities associated with each issue. It is, however, important to recognise that the diversity of national laws within the EU means that a single set of contract terms which can work in all EU countries is simply not possible at present. The best business can achieve at this stage is a common framework with some consistent provisions and policies. This is partly reflected in the views of business: nearly two thirds of businesses agree that it is more difficult to establish a pan-European organisation than it is a pan-American organisation. Aside from the written contract, business also need to recognise that local employment laws bite even if the assignment of a mobile worker is short-term. Some workers can benefit from rights in two countries, including a termination of employment. Significant harmonisation is unlikely, at least in the short term. This means that businesses sending workers overseas must monitor all relevant laws to ensure their compliance and to minimise risk.
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4.3.2 Differences in tax systems

The evidence from business suggests that the differences between the personal tax systems of Member States (and beyond) are one of the biggest obstacles to increased labour mobility. These differences have two effects: they affect the willingness of individuals to move from low tax economies to high tax economies unless they receive some compensation from their employers; and businesses have to spend considerable time and effort managing around the implications of differences in personal tax systems so as to minimise the cost of employing mobile workers whilst retaining access to the skills required to be competitive.
As a business we feel we are subsidising mobility by making up the shortfall in different rates of income tax
Moreover, the effect of these differences is aggravated in the case of families and couples by the fact that they affect both the employee as well as his or her spouse.
Whether or not the removal of this barrier to mobility requires the harmonisation of personal tax systems across the EU is a sensitive matter which raises much broader issues than simply labour mobility. The Commissions view is that although tax systems do not need to be either integrated or harmonised to ensure effective mobility, they do need to be compatible and well co-ordinated.5 In considering the issue, we believe that three key factors need to be taken into account: the precedent set by seeking personal tax harmonisation or co-ordination raises much broader issues about the future development of the EU; any attempt to harmonise or co-ordinate personal tax systems across the EU, even if it is effective, will only impact on a proportion of those businesses and individuals for whom labour mobility is an important issue: in particular, it will not have a major effect on the movement of workers between the EU and the rest of the world, including the Accession Countries; and the limited effectiveness unless other policy measures are introduced to remove the other important barriers to labour movement within the EU.
4.3.3 Lack of language skills

A lack of language skills is seen by both business and individuals as an important barrier to mobility. Although other factors are important, public policy can have an important bearing on language skills development. The Task Forces language will always be a report on skills and mobility suggests that the education system in problem due to the nature of our Member States should provide for greater language learning. The business, local markets require potential weakness of this approach is that it does little to enhance the local language the language skills of the current workforce.
4.3.4 Differences in social security and benefit systems

Despite a longstanding Regulation aimed at co-ordinating social security systems across the EU (1408/71), business regards differences in the systems between Member States as an important obstacle to the free movement of workers within the EU. The Commission has recognised the need for more effective co-ordination in certain areas. For example, it made proposals in December 1998 aimed at giving more chances for job seekers to look for work in other Member States without losing their entitlement to unemployment benefits, to extend the scope to third-country nationals and to simplify the co-ordination system. As yet, these proposals are still under consideration.
5 Commission Communication, New European Labour Markets, Open to All, with Access for All.
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4.3.5 Differences in pensions systems

Many differences between pensions systems across the EU and beyond have an important inhibiting effect on worker mobility in Europe. They include: the relative importance of the state systems compared to private pension schemes; the tax treatment of pension contributions and payments; and the ability of pension providers to offer cross-border pensions. Whilst many of these issues are complex, potentially they all affect the ease with which companies can move their staff around Europe and the willingness of their employees (as well as individuals) to be moved. As such they are important to labour mobility. Several initiatives and proposals have already been designed to encourage and enable a more consistent and flexible approach to pensions provision across the EU. These include: the Commissions Communication in May 1999 aimed at developing an agreed plan for creating a single market for supplementary pensions; a Directive adopted in June 1998 aimed at safeguarding the supplementary pension rights of employed and self-employed people within the EU; a proposed Directive in October 2000 aimed at enabling institutions to manage company pension schemes in another Member State; and the Commissions proposal in April 2001 for a global action plan to tackle tax obstacles to crossborder provision of occupational pensions.
The majority of employees prefer to stay in their home pension plan, but I believe this is because of a lack of alternative, attractive options. Cross-border pension schemes could allow cost savings through more efficient investment policies
In the short-term, these initiatives will help to reduce pension-related barriers to mobility and to create a single market. In the long-term, however, it is not clear that the changes will result in sufficient reform of Europes pension systems to make them more sustainable. Although the effect of demographic and other forces for change are well documented, it will take time to agree and implement the necessary changes at Member State level given the sensitivities attached to some of the key issues. In the longer-term, if reform leads to the emergence of greater private provision across the EU, this can contribute towards enhancing pensions portability and reducing the barriers to mobility.
4.3.6 Immigration and work permit issues

The most important aspect of the issues related to immigration and work permits is focused around the movement of workers between the EU and rest of the world. It is especially sensitive in the negotiations surrounding the enlargement of the EU. The EU has proposed transitional arrangements in relation to the free movement of workers between the Accession Countries and the EU that will effectively restrict free movement for seven years with the possibility of an earlier review. Our survey, however, suggests a strong desire on the part of workers in some of the Accession Countries, especially Poland, to move to live and work in the EU. These results need to interpreted with some caution since the proportion of those expressing a desire to move who would actually move may well be small once account is taken of potential economic developments in the home country and their impact on new work opportunities; they do, however, suggest that the transitional arrangements could prove to be a significant restriction on the free movement of workers.
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The immigration policy issue, however, needs to be viewed in a rather broader context since some Member States (such as Germany) depend to a significant extent upon migrants from outside the enlarged EU. More generally, our research has identified broader geographical issues related to mobility. Nearly three-quarters of the firms in our business survey that had experienced difficulties in relation to immigration felt that the greatest difficulty had been at the point of the initial entry into the EU, rather than during subsequent movements. In part, this reflects Member States inconsistent approaches to their immigration policies, especially as they affect economic migrants. Looking ahead, the European Council is required by the Amsterdam Treaty to adopt measures defining the rights and conditions under which nationals of third countries who are legally resident in a Member State may reside in other Member State. Whilst this could go some way towards easing the barriers which affect the movement of workers within the EU, it will still leave open the question of the policy approach to immigration and the issue of work permits. At present, this is largely determined on a bilateral basis depending on economic and other needs. In the future, greater coordination is justified on economic grounds since it forms an important potential plank of competitiveness policy.
4.3.7 Insufficient mutual recognition of professional qualifications

One of the areas where EU policy has been active is in improving recognition of professional qualifications between Member States. A Directive simplifying existing rules on mutual recognition of diplomas was brought into force in February 2001. The scope of the Directive is the recognition of diplomas concerning nurses, dentists, veterinary surgeons, midwives, pharmacists, doctors and architects. Member States are required to implement the Directive by 1 January, 2003. Since then the European Commission has launched a public consultation on the future regime for professional recognition which aims to build upon the previous Directive. The evidence from our discussions with business suggests that, overall, problems about mutual recognition are not seen as a major barrier to mobility. There are, however, important exceptions where particular firms and sectors view the lack of recognition as an important business issue. These include firms and organisations providing, for example, professional services and health care. Interestingly, and perhaps significantly, individuals regard the lack of recognition as an important barrier to their mobility.
4.3.8 Lack of information on rights and opportunities

The EU has recognised the key role that information can play in facilitating greater mobility. The EURES6 network was created in 1993 to give European workers more information about employment opportunities in Europe. The network is based on co-operation between the public employment services of the Member States, Norway, Iceland and 18 cross-border partnerships. EURES is coordinated by the European Commission. Overall, business does not consider a lack of information to be a major barrier to mobility although our case studies revealed that some businesses recognise that a lack of information on international employment opportunities within the organisation can act as a significant barrier to increased mobility. This is particularly true of even the most integrated global businesses which are aiming to move toward a more open and transparent approach to mobility by utilising company intranets to advertise vacancies.
6 European Employment Services.
26
In contrast, individuals in all countries and across all occupational groups feel that lack of information is a significant barrier although, perhaps unsurprisingly, those in lower occupational groups, most notably in the Accession Countries, consider it to be a greater barrier.
4.4
Conclusions
The key conclusions from our policy analysis are that: despite the EUs various initiatives, policy development in some of the key areas has failed to keep pace with businesses growing need for mobile workers; many businesses would welcome a more integrated EU-wide approach to employment legislation; the slow pace of policy development in some of the more important areas, for example pensions and benefits reform, reflects the significance of the policy issues and their broader implications in other areas of national and EU policy, for instance cohesion; the absence of a co-ordinated EU-wide approach to immigration policy adds significantly to the difficulties experienced by employers seeking either to recruit or move existing employees from outside the existing Member States; and the need for policy reform depends on the rate of economic growth in Europe: if there is a quick return to a period of relatively rapid growth, this will mean that labour market pressures can be expected to recur very quickly with the result that the benefits of enhanced labour mobility will be all the more tangible. Moreover, insofar as the issue of mobility has implications which extend outside the EU, for example due to the link with the GATS7, then the policy issues are still more significant. If the EU cannot organise itself effectively to address mobility-related issues, this could detract from its ability to influence negotiations with other groups of countries.
7 General Agreement of Trade on Services.
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How can businesses successfully manage tomorrows mobile workforce?

The challenge for business
Previous sections have analysed the current mobility of Europes workforce, potential future changes in the pattern of mobility and the changes needed to the policy environment to reduce the barriers which affect businesses ability to employ mobile workers. They have highlighted a series of key challenges which European business will need to tackle effectively if it is to succeed in the emerging business environment of New Europe.
Our analysis of current labour mobility in Europe has shown:
5.1
We are aware of the information gap within the organisation and we are developing an intranet which will advertise all overseas positions so that employees will be encouraged to post their details on the intranet, this will facilitate a matching process
a low level of labour mobility, especially compared to the US; the importance attached by business to being able to recruit and retain a high-quality workforce; the heavy dependence on foreign-born workers of a small proportion of European businesses although most make some use of such workers; an increasing blur between the movement of people to work and the movement of work to people, partly facilitated by the application of developments in ICT which has enabled new forms of mobility;
a gradual recognition amongst business that labour mobility is about much more than expatriate workers; the emergence of different approaches to the management of labour mobility across business; and a group of very significant social, economic and political barriers to the mobility of workers within Europe which add to the cost of business and adversely affect its international competitiveness. Looking ahead, future patterns of mobility are set to change further although uncertainty surrounds the pace and, in some cases, the direction of change: competitive pressure on businesses operating in Europe, especially the EU, will intensify; business expects demographic change to add to the pressures it faces; it is not clear that there will be a correspondence between businesses and individuals aspirations in terms of who will move and where they will move; although the use of new technology will allow greater flexibility for employers and workers, it will not remove the need for mobile workers; the sustainability of some emerging forms of mobility, for example cross-border commuting, will be questioned; as individuals skills and qualifications increase, their loyalty towards employers will decline; business will be under increasing pressure to match performance and reward; and policy will hinder both business and individuals from realising their needs and aspirations.
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Policy makers have recognised the importance of reducing the barriers to mobility. Several measures are either under way or planned. These will have a differential impact on the different groups of mobile workers. For example, measures which make it easier for employees from outside the EU to move freely between Member States will tend to impact most on secondees. At the same time, measures to enhance the mutual recognition of qualifications will assist those mobile workers recruited either locally or internationally. Many of the most important policy related barriers, however, raise policy issues which extend into other important policy areas, such as pension reform and tax harmonisation. The sensitivity of these issues suggests that radical reform is unlikely in the short-term and that business needs to develop its approach to managing mobile workers with this in mind. Nevertheless, the key conclusions that we draw from our analysis are that business: cannot afford to be complacent because the business environment in Europe is set to continue to change significantly in the future; should adopt an approach to the management of mobility and mobile workers which is proactive, rather than reactive; and needs to ensure that its approach to the use of mobile workers is fit for purpose.
5.2
Defining a strategic approach to mobile workers

The undoubted and growing importance of talent and knowledge as a source of competitive advantage means that businesses approach to the management of their human resources needs to be fully aligned with its broader business strategy. Given that mobile workers are already an important feature of the European labour market and this importance is expected to increase, a strategic approach to their management is also an essential prerequisite for business success. The key strategic questions that each business (and, indeed, each distinct business operation) will need to answer are summarised schematically in Figure 5-1. The first two steps are to identify the product or service to be provided and the market(s) to be supplied. In considering these questions, each business will need to reflect: its overall vision and objectives, for example, whether it wishes to operate globally or in only a few local markets and whether it aspires to play in the mass market or in niche markets; and the nature of the markets in which it competes, for example, whether competition is global rather than local and how intense it is. Subsequent steps, which need to be considered in parallel, are to determine where each business activity should be carried out and how it should be undertaken.
29
Fig 5-1:
Key questions for business strategy
People to work
W pr he od re uc to e?
What to produce?
Where to sell?
to e? ow uc H rod p
Work to people
The question about where to produce presents a business with two important alternatives: to focus its activities where it already has staff or to move to new locations where staff are available (work to people); or to move some or all of its people to where the best opportunities exist, for example where market demand is strongest (people to work). Which option is most appropriate, and the related question about how to produce, will depend on several factors including: the characteristics of the industry, such as the extent to which the production process depends on knowledge (including technology), labour and capital; the maturity of the business activities concerned; the location of suppliers and/or business partners; customer demands and expectations; and the type of organisation needed to succeed given the expected business environment. In practice, resolution of these key questions will require each business to ensure that its human resource management strategy is closely linked to its broader business objectives and strategies. Thus, a business will need to consider how its demand for particular skills matches the availability of those skills in the companys existing and proposed locations. Such an assessment needs to take account of the extent to which the potential mobility of workers as well as future demographic changes, notably the ageing of the population, will affect the availability of the relevant skills. Whichever approach is adopted will have fundamentally different implications for each businesses human resource management strategy and, in turn, for its need for mobile workers. In some cases, mobility can, therefore, support businesses human resource management strategies. It can also present some important challenges.
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5.3
Key issues for business

For any business seeking to develop a strategic approach to mobile workers, six key strategic issues need to be addressed: What kind of business need exists for mobile workers? How will changes in technology affect this need? How should mobile workers be recruited? What should businesses do to retain mobile workers? How should mobile workers be rewarded? What needs to be done to create a truly international organisation?
5.3.1 What kind of business need exists for mobile workers?

We have identified six different reasons why a business might wish to employ mobile workers: to support global integration and management of the business; to develop the business in new or difficult local markets; to support the transfer of skills through the business to locally engaged staff; to reduce the overall costs of the business; to provide personal development opportunities for key employees, and thus help to retain these employees; and to access talent which might not otherwise be accessible, that is to overcome actual or potential skills shortages. The latter two reasons are not necessarily independent of the others. Thus, for example, a business might send one of its employees to develop its business in a new geographical market as part of that persons personal development.
A two-year post for a senior manager to develop a local operation is important to our business but a six-month transfer for the personal development of our younger employees is increasingly just as important
At the same time, the relevance of each role will frequently be linked to the seniority, experience and skills of the individuals concerned (see Table 5-1). For instance, the most senior global management positions will tend to require the most experienced and skilled people whereas technical specialists may have an important role to play in transferring skills.
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Table 5-1:
The role of mobile workers

Global integration/ management Local business development Skills transfer Cost management Employee Access to personal talent skills development shortages s
CEOs/top management Senior management and professional Technical and skilled manual Other
s s
s s
The different forms of mobile worker that we identified (see Section 2.2) are also more or less suited to each of the roles identified. It will be evident from Table 5-1 that the potential role of mobile workers will be linked to the organisation of the business. Thus, for example, a business that wishes to apply a relatively uniform and formal approach to the management of its business operations internationally is more likely to have a need for global integrators. In contrast, a business which is organised on a more flexible, less formal basis will have less need for global integrators but may attach more weight to having mobile workers who are able to fill local business development roles, for example. Similarly, a business need for mobile workers is likely to be linked to the maturity of its international business. Young businesses which are only just embarking on an internationalisation strategy are likely to find a stronger need for mobile workers who can help them to run their international operations and, especially, to build their business in new (or difficult) markets. As a business matures, however, its need for mobile workers to manage its overseas operations outside its home country is likely to diminish for two reasons. First, it can expect the necessary skills to have been transferred to locally employed staff as its business is developed thus diminishing the need for mobile workers, especially costly expatriates. This, of course, does not preclude the possibility that this type of business will recruit mobile workers locally.
We are experimenting with new types of international assignment, some of which do not involve the employee moving home. These will be monitored carefully to assess their suitability in the long-term
Second, business may also find that a local pool of highly skilled labour develops as its business matures. Again, this will reduce the need for costly mobile workers, especially those on expatriate packages. Whether or not this is a significant factor will depend on the nature of the sector and the geographical concentration of businesses. Some financial services activities, for example investment banking, have become highly concentrated in a very small number of locations such as London and, to a lesser extent, Frankfurt in Europe. This has contributed to the emergence of a strong and highly valued local pool of skilled workers. It has also reduced the need for internationally recruited mobile workers, notably expatriates. It does not, however, mean that this kind of business has no need for mobile workers, rather that it is more able to recruit from a large local pool of people who have chosen to live and work away from their home country. Other industries are either less concentrated or less mature with the result that equivalent pools do not exist and employers will be more likely to need to recruit from a much wider geographical area.
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We have to assure each expatriate that he/she will have a job which conforms to their past and future development upon return to the country of origin
At the margin, a business also faces genuine choices about whether it should seek to move its work to locations where the appropriate labour is available rather than vice versa. This trend is already evident in the way that business in some sectors has internationalised its operations to ensure that it remains competitive. The clothing and textile industry is one notable example. It is also evident in the restructuring of certain business processes, for example, the development of shared service centres and call centres which have grown apace across Europe. In these cases, an important lure for business has been the opportunity to secure cost savings through economies of scale, in part through the ability to locate activities where access to relatively low cost labour is good. Workforce mobility offers substantial benefits and business will continue to find it a worthwhile investment. In developing an appropriate mobility strategy, however, a business will need to assess carefully the costs and benefits of alternative approaches and different mixes of the various types of mobile worker. The use of traditional forms of mobile worker is expensive; business will need to be increasingly selective about how and when it uses such workers, and evaluate carefully whether lower cost options exist which might be preferable. The challenge will be to combine the right mix of the different types of mobile worker to meet their specific needs and to maintain this balance over time. Table 5-2 summarises our broad assessment of how the different types of mobile worker we have identified can be deployed to provide the different combination of roles and skills.
Table 5-2:
The role of different types of mobile worker

Global integration/ management Local business development Skills transfer Cost management Employee Access to personal talent skills development shortages
International hire Local hire
CEOs/top management
International assignment long-term Virtual assignment
Senior management and professional
Virtual assignment Permanent transfer
International International assignment assignment short-term short or longterm Rotational assignment International hire Local hire Virtual assignment
International assignment
International hire Local hire
Technical and skilled manual
International assignment short-term Rotational assignment
Local hire International hire
International assignment
International hire Local hire Teleworking
Other
Local hire International hire
Local hire Teleworking
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5.3.2 How will technology affect the need for mobile workers?
The potential impact of new technologies on the business need for mobile workers is another key issue. It is also an area of uncertainty. A common view is that technology, especially ICT, will reduce the need for mobile workers. In the future, so it is argued, ICT will open up new possibilities for the physical organisation of work which are more cost effective than traditional approaches based on the use of expatriates and newer solutions involving shorter-term assignments but which do not involve taking the person to the job. These are expected by some to replace the traditional approaches to mobility. In practice, the impact of technology is unlikely to be quite so simple and straightforward as our survey confirms. In general, developments in technology will accelerate globalisation with the result that more and more businesses, regardless of their size and age, will be looking to operate on an international basis. This can only increase the need for mobile workers. It is also important to understand that the different potential roles of mobile workers will be affected in different ways by technology: the need for global integrators may weaken slightly if virtual assignments become a more tenable proposition; little direct effect is expected on the need for local business development although more firms may have such opportunities; the need for mobile workers to facilitate skills transfer could decline if technology is used to deliver new forms of learning, for example, e-learning; cost management opportunities may increase the need for mobile workers if they lead to the relocation of more business activities to new locations; employees desire for personal development is unlikely to be affected by technology; and technological developments have already created the need for new skills, and further pressure on skills availability can be expected in many countries in the foreseeable future.
5.3.3 How should mobile workers be recruited?

Looking ahead, a key issue for business will be the recruitment of mobile workers. To an extent, the specific issues will vary depending on the type of mobile worker being sought. There will, however, be several more generally applicable issues which each business will need to consider: a strategic approach to the management of mobile workers will require each business to define clearly the roles it expects to be performed by mobile workers and, hence, the particular need it has for mobile workers: in some cases, the business will need to achieve an appropriate balance between the different types of mobile worker, for example long-term and short-term roles, in order to give it the flexibility it requires; the potential labour pools from which it wishes to draw: in particular, it will need to distinguish those mobile workers who it would seek to recruit outside its home country from those that it might be able to recruit locally, for example because there is already an international pool of talent;
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demographic change, especially ageing, will also have important implications for recruitment since it will alter the potential pools of people from which a business might be able or might seek to draw: for example, in parts of Europe, business will need to consider whether (and how) it might tap into the emerging pool of older workers who might otherwise retire but would potentially be well placed to fill certain of the roles for mobile workers; and the growing importance that its image and reputation can have on its ability to recruit, especially amongst younger workers.
5.3.4 How can mobile workers be retained?

Besides recruiting its workforce, each business also needs to concentrate on retaining its existing staff, especially the most valuable. Retention raises another set of issues and challenges many of which are linked to potential differences and, possibly, divergences between the expectations of business and those of its employees. These will place increasing pressure on each business to manage its mobile workers, and its workforce more generally, in ways that are tailored to the individual needs of employees. This can be seen in several areas: there is evidence to suggest that employees loyalty to their employer is weakening: in the context of mobile workers, where the experience of many expatriates is often seen as distinctly mixed, this is a particular concern; managing the career development of mobile workers effectively is an imperative for a successful business and calls for strategic career management of key mobile employees on a highlytailored basis which covers: the definition of a clear role for each mobile worker which reflects both the business need and the individuals career aspirations demonstration that the learning and development achieved through international assignments are valued and built upon by the business offering development opportunities within an international context, sometimes as part of fast track career progression programmes the management of re-entry to the home country, potentially as part of pre-assignment planning the integration of mobile workers into continuing professional development activities the recognition that maintaining a work-life balance is integral to the sustainability of the different types of mobile worker, for example cross-border commuting; performance management where businesses must balance the need to motivate their employees with the need to control their employee costs; and dealing with cultural differences such as language, religion and working patterns. Cultural and family issues, including language, schooling, housing, spouse careers and the social costs of being based in a foreign location, are important potential barriers to mobility. Business will need to consider to what extent it can and should seek to influence these factors, for example by providing training in specific areas such as language skills.
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5.3.5 How should mobile workers be rewarded?

A specific business issue closely linked to that of recruitment and retention is how mobile workers are rewarded. All aspects need to be aligned with the overall business and human resource management strategy. Business needs to ensure that it reconciles a group of factors including the need to motivate staff, the recognition of performance, the management of costs and the acknowledgement that, for some people, the opportunity to work internationally may be highly valued. All of these need to be considered whilst acknowledging that employees from different backgrounds have different expectations. Specific areas of reward which require careful management to consider their flexibility and transferability include: pay scales; incentive and variable reward arrangements; share schemes; tax and social security treatment/efficiency; benefits; pensions/offshore pension arrangements; and domestic/family arrangements.
5.3.6 What needs to be done to create a truly international organisation?

The final, and perhaps most challenging, issue concerns the creation of a truly international organisation. Again, there are several aspects. At the highest level, the almost philosophical issue exists about what is meant by an international organisation. Despite all that is heard about globalisation, few companies are truly global in the sense that all aspects of their business covering their direction, strategic deployment and operations are global. At a more practical level, the issues for business are about ensuring that organisations and their employees can build the new skills and competencies across the business, such as language proficiency and cross-cultural awareness/sensitivity which are needed to meet their business and personal needs.
We have designed an international mobility policy, but realise that this has to be dynamic to suit the fast changing business environment and the needs of our employees we still have along way to go
5.4
Looking forward to a mobile future

All our evidence points towards increasing worker mobility. How far and how fast this happens will depend, in part, on the direction and pace of public policy reform. In practice, we believe that the pace of reform will remain relatively slow and that the gap between the needs of business and the actions of the EU and individual governments will widen. Nevertheless, we do not believe that business can afford to be complacent: business will need to be increasingly flexible and adaptable as the strategic choices between people to work and work to people become ever more complex. At the same time individuals will become used to being more and more footloose in employment terms.
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In thinking about the its future approach, we believe that business will need to consider the following key questions:
1. Does your use of different types of mobile worker fit your overall business aims and objectives and add value to your business? 2. Do you have sustainable global policies for managing your employees working internationally, for example covering recruitment and retention, remuneration and diversity? 3. Do you have a clear view about how technology will affect your future need for mobile workers, for example in enabling you to organise yourself so as to reduce your reliance on mobile workers? 4. Have you considered all potential pools of workers including the local labour force and older mobile workers, as well as how to capitalise upon the appetite for international working amongst younger age groups? 5. Have you assessed the additional cost of employing a mobile worker on expatriate terms and conditions as opposed to local terms and conditions? Have you taken any steps to reduce the additional cost? 6. Do you have a one-stop information site for employees covering potential vacancies and all aspects of international assignments? Do you provide for employees to acquire (new) language skills? 7. Are foreign employees working for your business legally? 8. When you send a mobile worker to work in another country, do you comply with local employment laws, such as maximum working hours? Have you considered employment rights in both countries?
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Appendix List of case study companies

AstraZeneca Plc Cesky Mobil Commerzbank AG Electrolux AB GlaxoSmithKline Plc Goodyear Tire & Rubber Co. Iberinco Lafarge SA Logica Plc Deutsche Lufthansa AG Nestl SA Palm Computing Inc Pearson Plc Pharmacia Corporation Shell Transport Trading SKF AB Thales SA Thomas Cook AG Valenciana de Cementos Volvo AB WestLB Zurich Financial Services AG
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About the authors

Mark Ambler, the Director of the New Europe programme, managed the research programme and wrote this white paper. Support with the case-studies and the writing of the white paper was provided by: Roger Cooke, Kevin Delany and David Baty who are partners in PwCs Human Resource Consulting practice; Claudia Jonath who is a Partner in Landwell France specialising in International Employment Law (restructuring, mobility, mergers and acquisitions); Helen Graham and Marian Horvath who are consultants in the New Europe Programme and were responsible for the desk research and analysis of the survey findings. Helpful comments and assistance were provided at various stages by a wide range of colleagues including: Erika hr, Andreas Burgi, Ingrid van Berkel, Scott Cromar, Joylina Goodings, Sergio Goycoolea, Martin Kasper, Frederique Lherault, Stephan Nerinckx, David Parish, Rosemary Radcliffe, Louise Resnick, Cesar Rodriguez, Julia Smye-Rumsby, Mari Simpson, Els de Wind and Leyla Yildirim.
About PricewaterhouseCoopers
PricewaterhouseCoopers (www.pwcglobal.com) is the worlds largest professional services organisation. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world. PricewaterhouseCoopers refers to the member firms of the world-wide PricewaterhouseCoopers organisation. human resource consulting creating Value for Business through People PricewaterhouseCoopers Human Resource Consulting practice works with clients who aim to make their people a sustainable source of competitive advantage. Our strategy is built on our belief in developing our own people to be creative and effective team players committed to outstanding client service. We bring the ability to take fresh perspectives, to think differently, to develop and implement new and value adding solutions. We work in close relationships with clients to offer practical, multi-disciplinary approaches to the ever more complex challenges facing businesses. One of the main challenges is to create environments where their people can work most effectively. Human Resource Consulting brings together all of the professionals within PricewaterhouseCoopers working in the HR consulting arena tax, benefits, communications, assessment, education, equity, reward, staffing, regulatory, legal, and process management affording our clients an unmatched breadth and depth of expertise, both locally and globally. Our expertise in combining detailed tax, legal and regulatory knowledge with leading edge human resource practices and plan design sets us apart.
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About Landwell
Landwell, the correspondent legal practice of PricewaterhouseCoopers, is one of the largest legal practices in the world with 2700 lawyers in over 40 countries. Landwell represents a new model for the delivery of legal advice to businesses. Lawyers frequently work in integrated professional consulting teams to address clients business issues. They are deal architects who structure and project manage transactions through to their completion. For further information go to www.landwell.global.com.
Contacts
Belgium
Stefan Nerinckx* stefan.nerinckx@landwell.be david.parish@cz.pwcglobal.com klara.novakova@cz.pwcglobal.com claudia.jonath@fr.landwellglobal.com michael.jaffe@fr.landwellglobal.com dagmar.wilbs@de.pwcglobal.com stefan.naegele@de.pwcglobal.com kriztina.csoka@hu.pwcglobal.com laszlo.szucs@hu.landwellglobal.com els.de.wind@nl.landwellglobal.com fons.hoogeveen@nl.pwcglobal.com james.kernan@pl.pwcglobal.com ewa.brol@pl.landwellglobal.com sergio.goycoolea@sp.pwcglobal.com marta.alaman@es.landwellglobal.com erika.ahr@se.pwcglobal.com mats.hellstrm@hellstrm-partners.se andreas.burgi@ch.pwcglobal.com adrian.howald@suterlaw.ch kevin.delany@uk.pwcglobal.com mark.d.ambler@uk.pwcglobal.com darryl.evans@uk.landwellglobal.com +32 2 710 7884 +420 2 5115 1603 +420 2 5115 2925 +33 1 56 57 4082 +33 1 56 57 4042 +49 699 585 5100 +49 711 22 840 322 +36 1 461 9260 +36 1 461 9891 +31 20 568 6995 +31 20 568 6978 +48 22 523 4326 +48 22 523 4097 +34 91 568 5990 +34 91 568 4544 +46 8 555 333 20 +46 8 22 09 00 +41 1 630 4520 +41 1 630 4811 +44 20 7213 2907 +44 20 7213 1591 +44 20 7212 1616
Czech Republic
David Parish Klra Novkov*
France
Claudia Jonath* Michael Jaffe*
Germany
Dr Dagmar Wilbs Dr. Stefan Ngele*
Hungary
Krisztina Csoka Lszl Szucs*
Netherlands
Els de Wind* Fons Hoogeveen
Poland
Jim Kernan Ewa Brol*
Spain
Sergio Goycoolea Marta Alamn*
Sweden
Erika hr Mats Hellstrm*
Switzerland
Andreas Burgi Adrian Howald*
UK
Kevin Delany Mark Ambler Darryl Evans*
For information on immigration issues for all countries:

Julia Smye-Rumsby* julia.smye-rumsby@uk.landwellglobal.com +44 20 7212 5111
*Landwell
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Copyright2002 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the individual member firms of the worldwide PricewaterhouseCoopers organisation. Designed by PricewaterhouseCoopers studio ec4 (13461 02/02).

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Managing mobility matters a European perspective

human resource consulting

Managing mobility matters a European perspective

Appendix List of case study companies

Managing mobility matters a European perspective

Managing mobility matters a European perspective

Managing mobility matters a European perspective

1 Single European Act, 1986

Managing mobility matters a European perspective

Our mobility project aims and objectives

Managing mobility matters a European perspective

How mobile is Europes workforce?

What are the forms of labour mobility?

Types of mobile worker

Managing mobility matters a European perspective

What has been the recent pattern of labour mobility in Europe?

Size and composition of the foreign labour force in the EU

EU citizens in total labour force

Foreign labour force in total labour force

EU citizens in foreign labour force

% of foreign labour force

Managing mobility matters a European perspective

Changes in international assignment type over the last two years

Virtual % of firms -40 -20

What is the role of mobile workers in European business?

Managing mobility matters a European perspective

Importance of foreign born employees in the workforce of European businesses

Foreign-born short-term workers

Foreign-born long-term workers

Foreign-born secondees % of businesses 0

Source: PricewaterhouseCoopers survey

Source: PricewaterhouseCoopers survey

Managing mobility matters a European perspective

Source: PricewaterhouseCoopers survey

How important is it to recruit mobile senior managers and professional staff?

How difficult is it to recruit senior managers and professional staff?

Source: PricewaterhouseCoopers survey

Managing mobility matters a European perspective

How difficult is it to recruit mobile senior managers and professional staff?

How have companies coped with recruitment difficulties?

Managing mobility matters a European perspective

How have companies coped with recruitment difficulties?

Managing mobility matters a European perspective

Global strategy, market centric

Managing mobility matters a European perspective

What are the barriers to labour mobility?

Key barriers to labour mobility

Managing mobility matters a European perspective

Businesses perceptions of the barriers to international labour mobility

Hinders to some extent

Does not hinder at all

Managing mobility matters a European perspective

What do individuals see as the barriers to mobility?

Would not hinder at all

Source: MORI survey for PricewaterhouseCoopers

Managing mobility matters a European perspective

Will Europes workforce become more mobile?

3.1 The need to look ahead

Managing mobility matters a European perspective

Managing mobility matters a European perspective

Managing mobility matters a European perspective

3.4.1 Who wants to be mobile?

Managing mobility matters a European perspective

Yes definitely like to move