Mapping Global Talent: Essays and Insights - Heidrick & Struggles

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1 Financial Services Accounting for talent Valerie Germain Financial Services practice vgermain@heidrick.com Heidrick & Struggles Mapping Global Talent: Essays and Insights Over the past two decades young graduates have been attracted to the challenge and wealth creation opportunities that have resulted from an evolving global financial services sector. The US has been a dominant source of talent, but several factors have resulted in an increasing demand for fresh skill sets and talent from different countries. These factors include the continued growth of European markets, a rise in opportunities across Asia and other emerging markets, and the growth of a new group of top financial service firms not domiciled in the US. In the future, a number of market risks will rebalance the opportunities that have existed in this sector. Slower global economic growth and rising interest rates, credit defaults and issues stemming from a lack of market liquidity – following the sub-prime mortgage collapse – will, in the short-term lead firms to reevaluate their portfolios, product mix and pace of expansion. A slowdown in the global property market, particularly in developed economies, will put financial pressure on banks that have enjoyed strong returns from real estate lending. As the economy slows and the debt markets become less attractive, M&A activities, led in part by private equity funds, will lessen, causing investment banks to rethink their ongoing growth plans in investment banking and capital markets. The sharp rise in debt associated with leveraged buyouts by private equity firms will increasingly become a source of risk to lenders. To combat this, many banks will continue to diversify their businesses, strengthen reserves and improve the quality of loan recipients. A high premium will be placed on new product development, emerging markets, and increasingly sophisticated risk management and transfer techniques. The appetite will be for multi- lingual candidates with international experience who possess a strong combination of technical experience and education. The Global Talent Index (GTI) shows that the historic dominance of US talent will continue but also reveals the rise of several European countries as European financial services firms emerge as dominant global players. Over the next five years, it is predicted that France will leap three places to rank 2 nd behind the US in the proclivity to attracting talent measurement – this vital indicator assesses the technical skills of the workforce, personal disposable income, employment growth and GDP data. Canada, Germany, Australia and the UK follow in 3 rd , 4 th , 5 th , and 6 th places, respectively. Japan will also gain competitive advantage, jumping from 14 th to 11 th place in its proclivity to attract talent over the next five years.
There will also be significant demand for talent originating in the high growth areas of Asia and the other emerging markets. The demand for this talent may outpace the supply. Despite the vast numbers of graduates entering the workforce every year in these countries, a relatively low proportion will have the skills required by global financial service firms. Those that do will be highly sought after and firms will need to offer top compensation and career growth opportunities to attract and secure their loyalty. Interestingly, India, which earns its overall 10 th place ranking in the GTI primarily because of the talent pool created by its huge population, will jump four places, from 17 th to 13 th , in its proclivity to attract talent in 2012. This is the country’s single biggest improvement among all seven indices, reflecting a continued emphasis on technical training at the secondary and tertiary levels of education as well as a rapidly expanding middle-class. The orientation of graduates is far more sophisticated today because of their access to information from the internet. ‘Generation Y’, those born between 1977 and 2005, have grown up with computers, show no fear of technology, take risks and are media-savvy and brand conscious. They are an online generation whose new social spheres are networking sites such as MySpace and FaceBook. Within a few years, job podcasts by even the most conservative of companies will become a reality. The firms that understand this and position themselves accordingly will reap the benefits. One of the ongoing challenges in financial services has been the thoughtfulness with which firms have approached succession planning. This has been true in some parts of the sector more than others but, as the sources of talent change it will be increasingly incumbent on all firms to mature the processes around the development and retention of their next generation of leadership talent. ‘Generation Y’, those born between 1977 and 2005, have grown up with computers, show no fear of technology, take risks and are media-savvy and brand conscious. They are an online generation whose new social spheres are networking sites such as MySpace and FaceBook. Within a few years, job podcasts by even the most conservative of companies will become a reality. Global Talent Index, developed in co-operation with the Economist Intelligence Unit 1
Page 1 and 2: Mapping Global Talent P A C I F I C
Page 3 and 4: contents Executive summary, 2 Essay
Page 5 and 6: BRIC is IC A key finding revealed b
Page 7 and 8: From a search consultant’s point
Page 9 and 10: The case of Procter & Gamble highli
Page 11 and 12: universities and business schools w
Page 13 and 14: employee turnover, which it attribu
Page 15 and 16: “In a recent survey of US and Eur
Page 17: have the competitive advantage of b
Page 21 and 22: Appendix A Methodology The Global T
Page 23 and 24: Puerto Rico Venezuela Guyana Surina
Page 25 and 26: Appendix D Overall GTI rankings The
Page 27 and 28: Appendix F Quality of compulsory ed
Page 29 and 30: Appendix H Quality of the environme
Page 31 and 32: Appendix J Stock and flow of foreig
Page 33 and 34: Further reading available on www.he
Page 35 and 36: Nepal Bangladesh Bhutan Bay of Beng

Mapping Global Talent: Essays and Insights - Heidrick & Struggles

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