The Global Talent Competitiveness Index
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1 The Index 13 Bruno Lanvin and Paul Evans, Editors
2 The Index 13 Bruno Lanvin and Paul Evans, Editors
3 INSEAD (13): The Index 13, Singapore Disclaimer: No representation or warranty, either express or implied, is provided in relation to the information contained methodology and the rankings do not necessarily present the form or by any means, electronic, mechanical, photocopying, or The Index 13
4 CONTENTS CONTENTS Preface 7 Foreword 9 Foreword 11 Advisory Board 13 Chapter 1: and mobile: talent is reshaping the world economy 17 Chapter 2: Chapter 3: Chapter 4: Competing for talent in a global knowledge economy: why e-leadership matters 69 Chapter 5: Technical Notes Data Tables 213 About the Authors and Partners 275 The Index 13 5
5 PREFACE During the course of the past decade, INSEAD has been involved in developing two major global indices, on Information Technology and on. 1 Both have become doing the research related to those two indices, we have been constantly reminded that the human factor was the most critical resource for national economies to improve their competitiveness and innovativeness in a sustainable way. In our work as educators and researchers, we are regularly struck by the importance of talented individuals and teams who make things happen, turning problems into opportunities and solutions. global and mobile. The clothes that we wear, the phones that we use, and the planes of production that may come from a dozen or more countries. The deployment of information networks around the planet, and the convergence of broadband communications with mobile telephony, have contributed to making such combination not only feasible (e.g., through global supply chains) but also more affordable for the majority of humankind. Mobility has been people routinely cross borders and generate value locally and globally; projects (such as this report) involve people collaborating across different continents, all of whom are living outside their respective countries of birth. The engine of this global and mobile world is talent. In all regions of the world, a growing number of countries have recognised the importance of talent competitiveness, focusing on educational reform, reducing gender and other gaps, and Others are eager to learn how they can adopt similar strategies, monitor current efforts, identify best practices, and chart the course ahead. In development economics, as well as in most social sciences, it is often underlined that you cannot improve what you cannot measure. The ambition of the GTCI is to be an action tool for continuous improvement in linking talent to economic development, and an instrument to stimulate dialogue between governments, business, academia, professionals and their associations, and other ordinary citizens. This report is the result of a strong partnership between the grateful to Singapore s Human Capital Leadership Institute (HCLI) and to Adecco for having accepted to join and support and expertise of our research team led by Martina Mettgenberg want to express our gratitude to the individuals and institutions also want to associate in these thanks the Joint Research Centre of the European Commission (JRC), which performed a rigorous audit of the GTCI model, including its structure, variables and analytical foundations. The GTCI team also owes a lot to the encouragement of our distinguished Advisory Board, whose members are listed in this report. And we are also indebted to INSEAD s academic network, notably Professors Javier Gimeno, Maria Guadalupe and Rose Xiaowei Luo, and also Professors Phil Anderson, inputs and advice on the model and measures. An ambitious project such as this needs the inputs and constructive critique of economists, demographers and sociologists as well as those in the HRM, strategy and labour economics areas. To guide the development of the GTCI, this academic network is being broadened to an Academic Council of leading scholars in such disciplines across the world. step of a work in progress. In the coming years, subsequent annual editions of the report will include improvements on the GTCI methodology, a broadening of its array of variables, and increases in its country coverage. Analytical chapters will areas of talent competitiveness. The dedicated GTCI website (globalindices.insead.edu/gtci) and linked social network fora will offer a continuous basis for further dialogue between GTCI Executive Director for Indices, INSEAD The Shell Chaired Professor of Human Resources and Organisational Development, Emeritus, INSEAD Notes 1 Forum to publish the Information Technology Report (GITR), based on the Networked Readiness Index (NRI); since 07, INSEAD has been The Index 13 7
6 FOREWORD TACKLING ASIA S TALENT CHALLENGES, TOGETHER The war for talent between organisations has been much researched and written about, but today, we see countries, not just companies, engaged in this competition. With Asia leading the way in terms of global growth and therefore driving much of the increase in talent demand, coupled with greatly increased global connectivity and talent mobility, we see today s highly mobile workforce seeking employment opportunities beyond their country of origin. countries taking action, be it regulations, policy changes, or incentives, to better attract and retain talent in-country. But just The quest for answers led the Singapore Human Capital Leadership Institute (HCLI) to partner with INSEAD to create the Index. Based on rigorous measurement and analysis, it seeks to inform policy and business decision-makers on the relative strengths of different countries across a host of talent-related factors. This index and its associated scores can hopefully help identify critical issues and prioritise actions. In today s world of global connectivity and talent mobility, we believe the solution to a country s talent competitiveness lies not with one entity but with a multitude of parties in the ecosystem working together, involving business, government and academia. Chapter 2: Business ecosystems: developing employable talent to meet Asia s needs details our view of how this can be done. It is our sincere hope that this inaugural Talent Competitiveness Index will be useful as a benchmark for countries, cities and organisations as they compete for talent in this global marketplace. Kwan Chee Wei At HCLI, it is our strong belief that countries can best increase talent competitiveness when the different constituents work together to attract, grow and retain talent. These constituents may include multiple players in the ecosystem: business, government, academia, consulting, and thought leaders. With this in mind, we have evolved the ecosystem concept to be core to HCLI s modus operandi. It is our aim to help organisations accelerate human capital and leadership development in Asia, for a globalised Asia. Rather than attempting to do this alone, we foster rich networks between the many parties in the ecosystem, manifested through our various executive development programmes and research platforms. Leaders Programme, we seek out the best minds from business, academia, government and consulting to identify key trends and share insights on doing business in Asia, and what this means for leadership and human capital strategies. We specially created across various industries come together to stimulate crosslearning of best practices and co-creation of novel solutions to drive growth in Asia. Our research roundtables, with participation from senior executives, academia and thought leaders, bridge the gap between theory and practice in the leadership and human capital arena. The Index 13 9
7 FOREWORD ADECCO FOREWORD Adecco is honoured to be partnering with INSEAD and the edition of the Index. businesses and governments to better match talent with jobs. Companies, countries and cities are indeed increasingly competing for talent, and seeking to attract, develop and retain it. Talent has become the key resource of the global economy and therefore one that decision-makers need to understand in depth. As the leading provider of HR solutions and one of the largest employers in the world, Adecco is confronted with the realities and challenges of labour markets on a daily basis. Present in over countries, working with over,000 companies, and employing more than 850,000 people every day, we see that talent becomes increasingly scarce in many regions, due to demographics, but also due to the mismatch between skills available and open positions. apply very different strategies to develop and retain talent. The result is that some countries are talent champions, others underperformers, and there seems to be a clear correlation with their respective economic and labour market performances. Talent champions foster and develop locally available talent lifelong learning and by promoting geographical mobility. The availability of labour and vocational skills (LV) and global knowledge skills (GK) seem to be other crucial elements to do well in today s talent economy. Countries in the Northern Hemisphere are struggling to match talent with market demand. In the US, for example, millions of jobs in manufacturing and agriculture have shifted to the services and creative sectors. Germany, Europe s economic powerhouse, natural sciences, and technical) training to match the more than 90,000 technical and engineering vacancies. Even the talent champion Switzerland faces a serious talent mismatch, for instance in healthcare, where % of hospital roles need to be The mismatch in the need for and availability of talents with the right skills is muddying the waters even further with many jobs are left vacant each year, with different countries requiring different skills. While in Asia, the demand for highly-skilled workers now far exceeds the talent pool. China, as an example, may face a skills gap of more than million college-educated workers by ; Indonesia s need for skilled workers could rise from 55 million to 113 million by 30. solid economic growth rates, achieves 47 th position in the ranking. Could this fact threaten the country s prospects for sustainable of working. All this emphasises that it is more important than ever to understand talent. Governments and companies need to work together to create labour markets that are based on an understanding of what employers need and the skills required the future, taking into account labour mobility and education systems. foundation stone has been laid for further research in coming years; for example, by looking into the role of cities and sectors in their quest for talent. Our aim is to provide an even deeper understanding of talent: how we can nurture, attract and retain the workforce of the future. Patrick De Maeseneire The growing importance of talent comes at a time when the global labour market is suffering from high unemployment in many, especially European, economies. Youth unemployment, in particular, stands at unacceptably high levels: across Europe, nearly eight million young people are out of work, education and training. That is almost one in four. Over 55% of young people are jobless in Spain, over % in Greece. The Index 13 11
8 ADVISORY BOARD ADVISORY BOARD Talal Abu-Ghazaleh Chairman and Founder, TAG-Org Thierry Breton CEO, Atos Origin; former Minister of Finance for France Peter Cappelli George W. Taylor Professor of Management and Director, Center for Human Resources at Wharton, University of Pennsylvania Arnoud De Meyer President, Singapore Management University Yoko Ishikura Professor of International Strategy, Hitotsubashi Tokyo; former Senior Manager at McKinsey Tokyo Mats Karlsson Director, Center for Mediterranean Integration at the World Bank Vineet Nayar Vice Chairman, HCL Technologies The Index 13 13
9 COUNTRY PROFILES The Index 13 89
10 1 3 COUNTRY PROFILE ALBANIA (out of 103) 77 Population (millions) , Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness n/a...n/a n/a...n/a Female parliamentarians Formal education n/a...n/a The Index 13 Albania 2 Upper Middle Income Group Average 3.2 Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills n/a...n/a Labour productivity Higher skills and competencies workers n/a...n/a Professionals... n/a...n/a Talent impact output n/a...n/a dimensions of the Index (GTCI). 1, 2, and 3 and Ranks. 1 population (in millions) drawn from World Population Prospects: The 12 Revision, Population Division, United Nations World Economic Outlook, International Monetary Fund. 2 - group average. 3 - tation (e.g., 1 digit notation (e.g., 1.1 Regulatory landscape). Under (e.g., Government effectiveness). The Index 13 91
11 ALBANIA (out of 103) 77 Population (millions) , Albania Upper Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness n/a...n/a n/a...n/a Female parliamentarians Formal education n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills n/a...n/a Labour productivity Higher skills and competencies workers n/a...n/a Professionals... n/a...n/a Talent impact output n/a...n/a 92 The Index 13
12 ALGERIA (out of 103) 103 Population (millions) , Algeria Upper Middle Income Group Average Regulatory landscape Starting a foreign business... n/a...n/a 1.2 Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies n/a...n/a workers Professionals Talent impact output The Index 13 93
13 ARGENTINA (out of 103) 54 Population (millions) , Argentina Upper Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a 3.2 Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output The Index 13
14 ARMENIA (out of 103) 61 Population (millions) , Armenia Lower Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure n/a...n/a Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills n/a...n/a Labour productivity Higher skills and competencies n/a...n/a workers Professionals Talent impact output n/a...n/a The Index 13 95
15 AUSTRIA (out of 103) 14 Population (millions) , Austria High Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output The Index 13
16 AUSTRALIA (out of 103) 15 Population (millions) ,6.28 1, Australia High Income Group Average Regulatory landscape Starting a foreign business... n/a...n/a 1.2 Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output The Index 13 97
17 AZERBAIJAN (out of 103) 57 Population (millions) , Azerbaijan Upper Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output n/a...n/a 98 The Index 13
18 BANGLADESH (out of 103) 98 Population (millions) , Bangladesh Low Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure... n/a...n/a n/a...n/a Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills n/a...n/a Labour productivity Higher skills and competencies n/a...n/a workers Professionals Talent impact output The Index 13 99
19 BELGIUM (out of 103) 13 Population (millions) , Belgium High Income Group Average Regulatory landscape Starting a foreign business... n/a...n/a 1.2 Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education T Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output The Index 13
20 BOLIVIA (out of 103) 88 Population (millions) , Bolivia Lower Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle n/a...n/a Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output The Index
21 BOSNIA AND HERZEGOVINA (out of 103) 91 Population (millions) , Bosnia and Herzegovina Upper Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness n/a...n/a Female parliamentarians Formal education n/a...n/a n/a...n/a n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills n/a...n/a Labour productivity Higher skills and competencies workers n/a...n/a Professionals... n/a...n/a Talent impact output The Index 13
22 BOTSWANA (out of 103) 64 Population (millions) , Botswana Upper Middle Income Group Average Regulatory landscape Starting a foreign business... n/a...n/a 1.2 Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills n/a...n/a Labour productivity n/a...n/a Higher skills and competencies n/a...n/a workers Professionals Talent impact output The Index
23 BRAZIL (out of 103) 59 Population (millions) , , Brazil Upper Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output The Index 13
24 BULGARIA (out of 103) 43 Population (millions) , Bulgaria Upper Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output n/a...n/a The Index
25 BURKINA FASO (out of 103) 102 Population (millions) , Burkina Faso Low Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle n/a...n/a Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output n/a...n/a 106 The Index 13
26 CAMBODIA (out of 103) 87 Population (millions) , Cambodia Low Income Group Average Regulatory landscape Starting a foreign business Market landscape Competition Climate R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability n/a...n/a Lifestyle Employable skills Labour productivity Higher skills and competencies n/a...n/a workers Professionals Talent impact output n/a...n/a The Index
27 CANADA (out of 103) 11 Population (millions) , Canada High Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education n/a...n/a n/a...n/a Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output The Index 13
28 CHILE (out of 103) 31 Population (millions) , Chile High Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education Lifelong Learning Extent of staff training Access to th Opportunities Sustainability Lifestyle Employable skills Labour productivity Higher skills and competencies workers Professionals Talent impact output The Index
29 CHINA (out of 103) 47 Population (millions) 1, , , China Upper Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness Female parliamentarians Formal education Lifelong learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills n/a...n/a Labour productivit Higher skills and competencies workers Professionals Talent impact output The Index 13
30 COLOMBIA (out of 103) 71 Population (millions) , Colombia Upper Middle Income Group Average Regulatory landscape Starting a foreign business Market landscape R&D expenditure Business landscape External openness Internal openness n/a...n/a Female parliamentarians Formal education n/a...n/a 3.2 Lifelong Learning Extent of staff training Access to growth opportunities Sustainability Lifestyle Employable skills n/a...n/a Labour productivity Higher skills and competencies workers n/a...n/a Professionals... n/a...n/a Talent impact output The Index
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