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Unemployment may have risen in many economies mainly due to the global financial crisis, but talent scarcity remains an issue . In developed

countries, an ageing population is the main factor. For the first time in history, the global population of 60 -year-olds and above will exceed that of

15-year-olds or younger by 2050.

Emerging markets with high population growth are not immune to the talent shortage. India, for example, has a growing populat ion but lacks

skilled professionals.

These were among the findings of the Stimulating economies through fostering talent mobility report by the World Economic Forum (WEF)

conducted in collaboration with the Boston Consulting Group (BCG). The report, released on the WEF website on March 23, was b ased on

research and input from WEF meetings held late last year and early this year.

³The loss of talent is an issue for many countries. The biggest resource, the most important resource any country can have, i s its people.

Developing your talent base is crucial,´ said BCG CEO Hans-Paul Burkner in an interview on March 23.

Talent shortages are a result of demographic changes and a mismatch between the skills available in the market and skills nee ded by

businesses. The study highlighted increased talent mobility as part o f the solution to counter talent shortage.

Greater mobility could benefit both nations that receive talent (typically developed economies) and sending nations, especial ly large nations such

as India.

The benefits can be seen through the amount immigran ts contribute to their host nation¶s gross domestic product (GDP).

According to the study, immigrants, who make up 12% of the US population, contributed US$1.6 trillion (RM5.12 trillion) to th e US GDP in 2007,

while Canadian immigrants (who make up 22% o f the population) contributed C$274 billion (RM877.56 billion) to their host country¶s 2007 GDP.

Determining the areas of skill shortage in a country should be done prior to a demographic projection, the report said. A loo k at the IT and

business services industries shows North America will more likely experience high -skills gaps in the coming years, whereas China and India will

probably suffer more from low employability than from overall supply of high skills.

To encourage talent mobility, countries, Malaysia included, must send out the message that they want skilled foreigners to come, Burkner pointed

out.

What emigration countries like Canada are good at is being open to foreign talent based on certain criteria. Societies in dev eloped nations usually

want to retain the ³status quo´ and thus give the impression of not welcoming immigrants, he added. Education is a very impor tant mechanism in

not just attracting top talent from outside the country but also in retaining local talent.
³I think the key issue is that many countries don¶t invest in education. That¶s not only true for emerging markets; it¶s also true for developed

markets,´ Burkner said.

Education mismatch is another issue. The report stated that the educational systems of all countries do not often meet the needs of economies

and do not prepare the highly skilled for positions with global companies.

India¶s Tata Consultancy Services is building strong connections with first -, second- and third-tier universities. The IT services company gives

feedback on curricula at those schools, helps train faculty and provides guest lecturers. The firm has also created partnersh ips with universities to

provide special IT skills in Java programming to students.

The Canadian province of Quebec is an exam ple of best practice in terms of skilled migration. In 2008, the predominantly French -speaking

province signed a memorandum of bilateral understanding with France on mutual recognition of professional qualifications to f acilitate access to

regulated trades and professions from one region to another.

Companies should emulate how countries assess current and future skills demand before setting up a global talent management p rocess that

would nurture talent movement.

The BCG itself, which has a workforce of around 4,400 worldwide, is a proponent of talent mobility.

³We have ambassadorship, we also have short -term meets and then of course, we encourage people to work in emerging markets and move

here, especially in Southeast Asia. We find a lot of Europeans and Americans coming here and actually settling down,´ he said.

³(It happens) on all levels ² sometimes short term or medium term but also longer term; people have been moving and changing their homes.

We want to continue to increase that mobility.´

Burkner said while it isn¶t the only factor making people stay, talent mobility does help alleviate the talent shortage faced by BCG. The

consultancy¶s attrition rate stands at 15%. The attrition rate for the management consultancy industry typically ranges f rom 10% to 20%.

To make talent mobility work, companies would have to make opportunities transparent to employees and help them get establish ed when they

move to another country for work assignments.

³I think the transition period is always difficult because of language and culture. If you move from Europe to, say, Southeast Asia, you¶re giving up

relationships in Europe, you have to build new ones in Southeast Asia and that takes a couple of years at the minimum,´ said Burkner.

One thing companies should avoid is ³forcing´ a talent mobility programme upon its employees. In the end, it all comes down to finding the right

fit.
³There are some systems where people are ordered to move; people may not like it. I think there must be a fit between the ind ividual and also the

society. There are some combinations that don¶t fit. I think if the chemistry is not right, then it will be difficult,´ said Burkner.