A majority of executives of multinational corporations cite a growing global shortage of talent as a factor that could limit their entry into both developed and emerging markets more so than economic weakness or even political instability, according to a report by AXA Group and MetLife Inc.'s MAXIS Global Benefits Network (GBN).
40% of the multinationals surveyed say they intend to expand their operations in both developed and emerging markets, including but not limited to the so-called BRIC emerging markets encompassing Brazil, Russia, India and China.
As multinationals are expanding globally, so will their workforces. Of the largest multinationals surveyed (those with more than $10 billion U.S. in annual revenue), close to one-fifth expect to have more than 85% of their total workforce outside their home country in the next five years. This figure represents nearly double the current figure.
- 1 in 4 companies plan to enter new markets in the next five years.
- Foreign markets are outpacing home markets as a source of future revenue for many multinationals. Nearly 1 in 3 multinationals expect more than 70% of their revenue to be generated from nonhome markets in five years.
- Brazil, China, India and the United States are top choices for companies looking to sell products.
- Vietnam, South Africa and sub-Saharan Africa are considered as being the "single biggest opportunity" for those seeking to source products or components.
- A majority of companies believe that employee benefits boost worker loyalty and productivity.