For years emerging markets like India, China, Brazil and Eastern Europe have been emphasizing on developing skilled labour work force. For nearly quarter of the century, these markets attracted developed nations to hire unskilled labour on extremely low wages asking for zero employee benefits or even minimum employee health requirements.
These markets have now gradually developed their skilled labour work force that is learned, qualified, diligent and has also acquired good communication and inter personal skills to survive in the foreign market. With better communication skills and a larger English speaking skilled work force, markets like India and China have a labour surplus. These positions not only fill work places on shop floors but also for finance, technical and managerial openings in an organisation.
Evolving Talented Skilled Labour Force
In recent years, the skilled labour force has been moving up the talent curve. Earlier, skilled labour filled only of manufacturing and construction vacancies. Now there are more health care professionals, electrical engineers, foremen, surveyors, technical analysts, etc. This talent pool has gradually risen in countries like Turkey, India, China and Indonesia. According to John Boudreau, a professor and research director at the University of Southern California’s Center for Effective Organizations, this talent pool will soon surpass those in the developed nations.
Rising Educated Talent Pool in Emerging Nations
According to a survey, nearly 217 million skilled workers in emerging countries or nearly 60 percent of the global work force will be college educated in next 10 years. This means outside the US there is going to be extremely well-educated college going work force that will be an added advantage to the companies and CFO’s need to take the same in to their human-capital planning.
The new evolving work force is more educated digitally and has well-versed knowledge of handling latest software and technologies. A considerable rise has been in the Czech Republic and India where the IT work force has increased multiple folds. However, companies are also looking for retraining the existing work force as new technologies are evolving every day and older ones becoming obsolete every year.
CFO’s find educated skilled labour force as a better bargain as the skilled labour force can be eventually trained to suit company requirements and give better productivity in due course. This has eventually led CFOs to rethink on their global hiring strategies especially in the developing markets.
CFOs are also opting for temporary workers to curb costs and escalate manpower resources during peak volume season. There are several skilled workers in developing countries where economic and political conditions are continuously unstable. Skilled labour gets an opportunity to earn better wages outside their home country and return with better acquired skills and foreign exchange earnings.