With European economic growth pitifully low, it’s no surprise that businesses are looking to expand into emerging economies.
It makes business sense. According to Standard Chartered Bank, 70% global economic growth up to 2030 will come from emerging markets. These include:
• BRIC markets (Brazil, Russia, India and China)
• CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa)
Indeed, an FT article forecasts that some Eastern Europe and Asian countries are on track to join the exclusive club of ‘the richest countries’.
As reported by HR magazine, many HR departments are becoming overwhelmed with the challenge of getting the right talent into the right place. Many of these countries do not have the skills needed locally. Whether businesses decide to invest in growing local talent or bring in their own people, there will always be cultural and business nuances to get to grips with in a new country.
The integration stage is crucial. Cass Business School’s research found that 81% companies involve HR at this stage during mergers acquisitions. Add emerging markets into the mix… a whole new set of issues are created. That’s where it’s crucial to include HR even earlier; ideally during targeting. Cass found that only 10% companies do this.
Finance is important in business deals… and so are people; especially when you’ll be moving talent into a whole new culture. Many ex-pat blogs advise on preparing yourself – literally – for the culture shock. In emerging markets, this come with its own guilt complex too… so many indigenous people have so little.
One aspect which HR can rely on… a smooth, stress free relocation.
BTR International has been helping relocate assignees globally for over 25 years. Support is available for assignees and their families regarding their new lifestyle, living arrangements and their actual move.
Contact us via our email contact form (above right) or on +44 (0)1582 495 495 for a free discussion.