The Brexit path: international destinations examined
Which overseas locations will win the battle to attract companies moving from the UK in the wake of its decision to leave the European Union?
Gathering relevant information
For companies considering a move, Mercer’s annual Quality of Living survey, which helps multinational companies to compensate employees fairly when sending them on international assignments, provides a wealth of useful data, including information on city infrastructure.Slagin Parakatil, principal at Mercer, is responsible for the research. “A city’s infrastructure – or rather the lack thereof – can considerably affect the quality of living that expatriates and their families experience on a daily basis. Access to a variety of transport options, being connected locally and internationally, and access to electricity and drinkable water are among the essential needs of expatriates arriving in a new location on assignment. A well-developed infrastructure can also be a key competitive advantage for cities and municipalities trying to attract multinational companies, talent, and foreign investments.”Kate Fitzpatrick, Mercer’s global mobility practice leader for the UK and Ireland, makes the point that, Brexit notwithstanding, all UK cities remain attractive locations for multinational companies and their employees, as they continue to rank highly for quality of living.“London leads the pack,” she says, “in both the overall quality of living and this year’s supplementary city infrastructure ranking, with its multiple international airports and a large and comprehensive public transport network. The capital’s only downfall in regard to infrastructure is heavy traff ic congestion, which also contributes to the city’s low score for air quality and pollution.”Related articles:
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Despite increased political and financial volatility in Europe, many of its cities offer the world’s highest quality of living and remain attractive destinations for expanding business operations and sending expatriates on assignment, according to the survey. Of the cities examined in this article, Frankfurt takes seventh place for overall quality of living and joint second (with Munich) for city infrastructure.Beyond Europe, Australia continues to rank highly for quality of living, with Sydney in tenth place and Melbourne in 16th. Sydney is ranked eighth for infrastructure. Singapore remains the highest-ranking city in the Asia- Pacific region, taking first place for city infrastructure and 25th for overall quality of living. Hong Kong is at No 71, and New York at No 44.
The Brexit path: Amsterdam
Annebet van Mameren, education consultant: “Expatcenters provide a onestop service for international talent. They help with residence and work permits (including start-up visas), registration with the municipality, the 30 per cent tax ruling, and many other official matters.“There are currently nine Expatcenters in the Netherlands, in locations that include Amsterdam, Rotterdam, Leiden and The Hague. In 2016, the Amsterdam centre had its busiest year since it opened in 2008. The number of British visitors has increased considerably as a result of the Brexit vote.
The Brexit path: Australia
Cartus 2016 Global Mobility Policy and Practices Survey: Australia No 3 in list of new countries to which employers have been sending assignees over the past two years. Challenges: demanding and paper-intensive immigration process, hard to establish corporate registration.Nick Deligiannis, Hays Australia: “Australia’s economy is undergoing structural change as it successfully transitions from mining to the services sectors, particularly health, retail, tourism and education. Headcounts are growing, market buoyancy is evident, and employers report increased business activity. Given this sentiment, you’d expect commensurate salary pressure; however, employers instead remain cost-conscious. It remains to be seen how long this anomaly will last; already, turnover is rising and the hortage of candidates in certain high-skill industries is leading to some wage pressure. While far from a universal trend, this suggests that employers must not be complacent in the face of increasing skills shortages.”The Brexit path: Dublin
Hays 2016 Global Skills Index: Pluses for companies:- Very low corporate tax rate
- Flexible, buoyant labour market
- Businesses generally optimistic
- Schemes to encourage Irish professionals who have been working overseas to return
Minuses for companies:
- Talent mismatch
- Skills shortages prevalent across IT, construction (including surveyors, engineers and architects), life sciences, technology
The Brexit path: Frankfurt
Cartus 2016 Global Mobility Policy and Practices Survey: Language a challenge for assignees.Klaus Breitschopf, Hays Germany: “There is high demand for combining IT with engineering, as well as IT security and big-data experts. Germany needs more flexible forms of employment, such as freelancers for project work. The German government doesn’t yet recognise this need and currently regulates the labour market without differentiating between specialists and blue-collar workers.”
The Brexit path: Hong Kong
Cartus 2016 Global Mobility Policy and Practices Survey: Hong Kong No 6 in list of top destinations.Dean Stallard, Hays Hong Kong: “Being an open economy, Hong Kong can be susceptible to external factors. This is highlighted by slower GDP growth due to current global economic conditions, particularly in China. Hong Kong’s position as a leading global financial sector and regional hub remains stable, with continuous candidate demand and vacancy activity indicating positive business sentiment.“While overall wage pressures have eased slightly in comparison with 2015, talent shortages and increasing regulations have resulted in a tightening in the labour market, and employers must be flexible and innovative to attract top talent.”
The Brexit path: Luxembourg
Tina Ling, Hays France and Benelux: “Last year, Luxembourg achieved economic growth of 4.8 per cent, almost three times the amount of total European growth over the same period. This is impressive considering the country has faced multiple challenges: the automatic exchange of tax matters, an increase in VAT, and loss of revenue related to e-commerce.“From an employment point of view, the performance is good, with growth of 2.5 per cent representing a net creation of 8,500 jobs. Nevertheless, the unemployment rate remains high at 6.3 per cent, creating structural unemployment thanks to a mismatch between skills available and those the labour market needs.The Brexit path: Madrid
Cartus 2016 Global Mobility Policy and Practices Survey: Spain No 10 in list of new countries to which employers have been sending assignees over the past two years. Immigration a challenge.Beatriz Carro de Prada, BRS Relocation Services: “Challenges for employees include bureaucracy and obtaining places in international schools. Planning ahead and assistance from relocation experts with local knowledge are vital.”The Brexit path: Milan
Cartus 2016 Global Mobility Policy and Practices Survey: Italy No 5 in list of countries currently presenting greatest mobility challenge for respondents’ organisations. Challenges for companies/employees: immigration requirements, lengthy work permit process, driving regulations, tax.Carlos Soave, Hays Italy: “Pressures within the financial sector and weak global demand present a risk to Italy’s growth ambitions. With the Job Act’s reform in place, the economy is growing and jobs are being created. While at first this seems to be very encouraging news, it is still too early to measure its impact, and time will tell whether the Act is a true success or not.”The Brexit path: New York
Cartus 2016 Global Mobility Policy and Practices Survey: US again top destination. No 4 in list of countries currently presenting greatest mobility challenge for respondents’ organisations. Immigration a key challenge.Dan Rodriguez, Hays USA: “As the economy improves for another quarter in a row, we are seeing increased job creation and higher wages. Labour-force participation has increased; however, we are not seeing that translate into reduced skills shortages. There is a talent mismatch, so employers are still struggling to fill niche roles, while some jobseekers are struggling to find a suitable role.“The country’s busiest sectors, such as construction, IT and technology, banking and financial, and life sciences, are experiencing talent shortages that challenge productivity and growth. The 2016 election result will have a significant impact on the federal economy, but it will be some time before we know the full ramifications.”The Brexit path: Paris
Cartus 2016 Global Mobility Policy and Practices Survey: France joint No 8 in list of countries currently presenting greatest mobility challenge for respondents’ organisations. Challenges for assignees: high social taxes, complex equity taxation.Tina Ling, Hays France and Benelux: “France experienced vigorous economic activity in the first quarter of 2016, and growth is expected to be 1.4 per cent this year … The labour market is already taking advantage of recent government support for the employment market, including easier access to regulated professions and reduced labour costs, which will likely result in a beneficial competitive environment.”The Brexit path: Singapore
Cartus 2016 Global Mobility Policy and Practices Survey: Singapore No 4 in list of top destinations and No 5 in list of new countries to which employers have been sending assignees over the past two years. Cost of living a challenge for employees.Lynne Roeder, Hays Singapore: “Singapore is a popular choice as a strategic regional hub for multinational corporations looking to expand in Asia, particularly Southeast Asia. With IT, life sciences, and banking and financial services as major driving forces behind a highly active recruitment market, businesses continue to display positive, albeit more cautious, hiring sentiments. Temporary and contract roles are increasingly prevalent solutions to work around headcount limitations. While overall wage pressure has decreased slightly in comparison with 2015, the local talent pool remains tight in high-skilled industries, placing upward wage pressure on roles in demand as employers seek to attract and retain talent.”For related news and features, visit our Brexit section.Access hundreds of global services and suppliers in our Online Directory©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.