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Management The reverse brain drain
Human capital
on the move
The magnetic pull of skilled professionals and students from developing
to developed markets is giving way to a more multipolar world, where countries
increasingly compete for talent.
Summary
For the past century,
the flow of talent has
been largely from
emerging to developed
markets. But a more
multipolar world is
triggering new flows
of skilled workers.
This is sparking global
competition for talent.
• By Gerri Chanel
People have been moving in search of better
opportunities since the dawn of humanity.
Back then, hunters migrated to stalk
bigger herds. Today, it is intellectual capital on
the move. Just a few years ago, talented
engineers or scientists from such countries as
India or China would make their way to countries
such as the UK or the US. Today, those
individuals are increasingly returning to their
country of origin after obtaining education and
experience – a phenomenon sometimes called
“reverse brain drain.” Of course, one country’s
brain drain is another’s gain, presenting
challenges and opportunities for the countries
– and companies – on both shores.
China, India – and beyond
Hai gui is the Mandarin term for sea turtle, a
creature that is born on land, but grows up in the
ocean before returning. It is also the informal
term for the ever-growing number of Chinese
graduates and professionals abroad who are
increasingly returning home. China is not alone
in this phenomenon: according to a 2011 study
by recruitment consulting firm Kelly Services, an
estimated 300,000 Indian professionals now
working overseas are expected to return to India
by 2015. Elsewhere, skilled expat workers from
African countries such as Nigeria, Kenya, Ghana
and Angola are also returning in notable
numbers to their countries of origin, not
least due to a slowdown in many richer
economies.
Joseph Pagop Noupoue, Ernst & Young’s
Managing Partner for Cameroon, is one example.
He recently relocated back to Africa after being
educated and working in France for 23 years,
and is far from alone. “We are receiving
applications from so many young and talented
Africans who are ready to make the trip back and
bring their contribution to the development of
the continent,” he says.
Another notable trend is the movement
of skilled workers within Europe due to varying
economic conditions, says Michael Liley of
Ernst & Young’s Human Capital practice
in London and former Global HR Director of
Ernst & Young. As a result, Spain, Italy and
Greece now host a generation of highly-educated
people in their mid-20s to mid-30s who cannot
find good work. “So EU countries that are doing
better economically, like Germany, have had
quite a significant intake of qualified talent from
those other countries,” he says.
These trends are quite different to the
established ones, which are characterized by the
movement of talented workers from less
developed to more developed countries. But a
striking reversal may be looming, with various
talent consultancies arguing that within several
decades, many vacancies for senior roles in
countries such as India will be filled not only by
returning Indians, but also by Americans and
Europeans seeking better prospects.
Push and pull
“The labor market is a major driver of talent
migration,” says David Rooney, Executive
Director of Global Mobility in Ernst & Young’s
Human Capital practice, but he notes that it is
only one of many factors, often categorized as
either “push” or “pull.” Push factors might
include lack of career or salary growth, or
immigration policies that discourage permanent
residence after training. “Pull factors,” he says,
“may include higher wages or opportunity for
career advancement, but there are others.
Cultural affinity and family ties can also pull
people back home, as well as pride around
supporting growth in the home country, and
sometimes simply quality of life.”
According to a 2011 study sponsored by the
Kaufmann Foundation in the US, which
interviewed Indian and Chinese professionals
who had been educated in America about their
reasons for returning home, the top three
34 T Magazine Issue 07 Ernst & Young