Foto blog 5 macroeconomic factors affecting global mobility

5 macroeconomic factors affecting global mobility

Internationalization of the workforce has been an important aspect of the global economy, and this trend is growing stronger lately. It is becoming common for medium-sized or larger companies to hire foreign experts for key roles, while multinational brands often organize international assignment of highly skilled specialists as business needs dictate. Increased global mobility underlines the need for specialized providers like Brunel to assist with the numerous challenges typical for the transition period and ensure high productivity in a culturally mixed workplace.

The trend towards greater mobility is expected to continue due to a number of forces working in concert, including the following factors:

1. Wage differences stimulate employee mobility

The laws of supply and demand create imbalances where workers with certain qualifications might be far better paid in another country. A typical example of vertical employee mobility is the IT industry, where skilled programmers and project managers are constantly in high demand in the developed nations. This situation tends to create a one-way flow of workers, who must go through cultural assimilation and professional specialization on arrival.

2. Integrated markets facilitate employee relocation

Expansion into a new market is a frequent reason for employee relocation that carries a different set of challenges. When workers are moving across borders with the blessing of their mother company, they can typically count on initial infrastructure to help them get started. However, they will be under a lot of pressure to perform and justify the expenses despite the fact they are operating in unknown territory and with limited resources.

3. Real-time communications simplify global relocation

It doesn’t really matter how far from home a worker might be when modern technology allows for real-time face-to face-conversations with friends and family members. The possibility to stay in touch with home is encouraging a large number of workers to try their luck in a foreign market. Combined with financial incentives, this factor is especially relevant for long-distance relocations, which are becoming increasingly common in the business world of today.

4. Lower cost of airfare removes financial barriers

The corporate travel services sector has advanced by leaps and bounds companies like Brunel are now able to offer customized plans tailor-made for international businesses. The impact of more affordable travel and accommodation may be minor in comparison with some of the other factors discussed here, but it shouldn’t be overlooked. It is especially relevant for up-and-coming brands that view expansion as means to increased profitability.

5. Evolution of business procedures favors international relocation

Since business methodologies around the world are becoming increasingly similar, the transition into a new market is less daunting than it used to be. In many cases, experts from another country can easily be plugged into existing teams with a very short adjustment period. When the integration is more complex, consulting companies specializing in international relocation like Brunel can provide crucial assistance and training.

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