Companies need to find new ways to attract and retain critical skills—and the original sources of ‘brain drain’ (i.e. migrant populations or diasporas) might just hold some of the answers. Diasporas are young, educated and connected—just what organizations are looking for. But if organizations are to make the most of diversity they already embody, or the diversity that they hope to engage, change must surely follow.

1. young,
skilled and
connected
How migrant populations can
improve your access to talent
Anthony Raja Devadoss

2. top 5 migrant
destinations
Russia
Canada
germany
10%
of swiss citizens
live outside
U.S. switzerland The chinese
diaspora Countries with
numbers approx 1 million+ chinese:
Indonesia
50 million Thailand
The indian Malaysia
saudi diaspora
Singapore
arabia numbers approx
Philippines
30 million Among
Vietnam
japanese developing Burma
countries, the United states
migrants make Philippines had the
up one quarter Canada
the malaysian- highest number of
of hawaii’s university-educated
population born migrant
population emigrants leaving its
is approx shores (1,126,260
people) in
The largest
diaspora of 1 million 2000.
swiss
is in argentina
of the entire
australian
migration
program, skilled
migrants comprise
60%
Around one-third
of all migration
represents ‘brain drain’
for the home country.
2

3. We’re all experiencing ‘brain drain’
A recent global PwC survey of 1,100 CEOs and business leaders revealed that they are struggling
to balance talent retention and cost reduction against a backdrop of economic deceleration.
The numbers reveal that: ‘Brain drain’ is still a significant and pressing
• Virtually all CEOs (97%) believe that the issue for countries in major migratory Why engage
access to and retention of key talent is corridors, such as South-East Asia and
with diasporas?
critical or important to sustaining their Eastern Europe. However, it’s also a
growth, yet 25% globally are looking to phenomenon that affects more companies 1 They’re young: the median age of the foreign population living in the EU was 34.4
reduce headcount. more often thanks to the mobility of the years in 2010, which is 7.1 years lower than the median age of nationals (41.5).
• Over 60% of CEOs say they have world’s workforce, the ease of switching jobs,
challenges recruiting and integrating and other large, global demographic shifts, 2 They’re skilled: in OECD countries the skill intensity of migration is around 70 percent.
their millennial employees, and less such as the aging population. Many visa requirements ensure that migrant populations bring with them high levels of
than one-third believe that they have a skills and experience. Significant diasporas also develop out of populations that settle
comprehensive understanding of their Companies need to find new ways to after being educated by the host country’s tertiary education system, keeping critical
employees’ views and needs. attract and retain critical skills—and the skills in-country.
original sources of ‘brain drain’ (i.e. migrant
It is clear that companies are finding it populations or ‘diasporas’) might just hold 3 They’re connected: they have connections in their home country, which can be used
more difficult to attract and retain the right some of the answers. by corporates looking to expand into new markets.
workforce. In a sense, the old concept
of ‘brain drain’ that referred to skilled Actively engaging with diasporas offers very
workers leaving their home country to specific advantages over other strategies for
pursue lucrative opportunities elsewhere skill retention.
is now something far more common, even
for companies operating amid favourable
economic conditions.
3

4. They’re young
Fertility rates in all developed economies is now below replacement
rate and the downward trend is spreading far and wide.
In Asia-Pacific, for example, the number of In light of these sobering statistics,
people aged 65 and older is estimated to companies should look to migrant diasporas how to attract and retain the
increase threefold—from 420 million in 2010 with particular interest. If we are all going
youthful workforces of diasporas
to almost 1.3 billion by 2050. This increase to be clamoring for a shrinking pool of
Rethink the way you promote: millennials look for new opportunities for
will mean people of non-working-age will young talent, and migrant diasporas are a
development and development more than they look for hierarchical advancement.
constitute almost 25% of the total regional key source of this resource, companies will
They want a challenge and they want to test new technology and the latest ideas.
population in less than 40 years’. In a part have to get used to accommodating the
of the world that is experiencing dramatic ‘millennial mindset’—and particularly that of
B
e more flexible: they expect (don’t just want) workplace flexibility, and to be
economic growth, this poses a real problem educated, migrant youth.
measured on what they achieve as opposed to the hours they work.
for companies that need skilled workers.
Generation Y sees global experience as a
Have a real dialogue with staff: they expect (don’t just want) to be heard and to
Unfortunately, many of the countries with positive differentiator in job selection and
contribute in meaningful ways. If they see things that don’t fit with their values,
growing populations do not have the promotion—and this is just one reason
they’ll want you to know about it.
educational infrastructure to develop the why they make up a larger proportion of
volume of skilled labor to make up for the migrant diasporas. Gen Y also brings new A genuine appreciation for diversity: to attract the youthful, highly skilled workers
shortfall in industrialized countries. Africa’s approaches to the issue of ethics and social of migrant diasporas globally, corporates need to embrace diverse ways of thinking
population remains youthful and largely responsibility in the workplace. They want and of acting.
unchanged in age distribution since 1990, to work for companies that demonstrate
yet its education infrastructure cannot fill the transparency and engagement with the
talent gap widening over the next decades. community at large.
4

5. They’re skilled
We have already entered a long-term phase of competing fiercely for certain skills.
The World Bank’s research into the whereas in Indonesia it takes just 1.6 weeks.
investment climate shows that for some 40% When competitive advantage is hard to build to Tap into migrant diasporas,
of firms, skills shortages are a top investment and even harder to maintain, differences like
companies must:
obstacle. Regardless of the region where the these really matter.
Know their talent supply chain: do you know how long your cycle times for critical
firm operates, the size of its operations, its
Skills shortages are the single greatest skill sets are? Where are the bottlenecks in supply? Do you have access to sources
export orientation, its ownership structure
influence on migratory behavior and the of the right talent at the right price?
or the industry it belongs to, the concern
about their access to critical skills remains formation of diasporas. In fact, the Malaysia
Consider moving the work, not the worker: consider ways to access critical
remarkably high. Economic Monitor shows that of the top
skills where they are more plentiful, including offering more flexible work
three reasons people move from their
assignments and projects.
Worldwide education and training country of birth, two are money and/or
infrastructure has failed to deliver the volume career oriented:
Be specific and targeted in your hiring campaigns: campaigns can successfully
of skilled talent required in fields such as IT, 1. Career prospects
target expatriates and entice them to return to their home country for specific,
healthcare, engineering and science. These 2. Compensation
high-profile projects. Once you know who has the skills you need and where they
shortages are only becoming more acute, 3. Social justice
are, you can find specific messages that will be relevant and attractive to them.
and in some locations firms are forced to
operate without critical skills for long periods We know that migrant diasporas typically
because they simply cannot obtain them. have a higher concentration of skills and
education than native populations, and
For example, it currently takes 5.4 weeks that compensation is one of the key
to find a qualified technician in Malaysia, reasons for migration.
5

6. time required to fill vacancies
Number Number Time required to fill a vacancy
of weeks of weeks
for skilled technician (LHS)
10 14
Standard deviation of
time required (RHS)
12
8 Years after country names
denote survey period.
10 Source: World Bank’s
global investment climate
survey database
6
8
6
4
4
2
2
0 0
Brazil 2003 Malaysia 2007 Thailand 2007 Ireland 2005 Germany 2005 Korea 2005 India 2002 Russia 2005 Indonesia 2003
6

7. They’re connected
For the countries they leave, and the places they go to, the impact of diasporas is
measurable. The flow of information, money, goods and ideas—between diasporas
and their home country networks—influences change in both places.
Not only do diasporas increase the exchange
of goods and knowledge between countries, To leverage the full value of a
they significantly contribute to facilitating
diverse workforce, companies must:
new relationships across borders—and
Reconsider the way project teams for new ventures are assembled: life
connections are what businesses entering
experience of project team members may be just as critical to the success of a
new markets often lack.
new venture as education and training.
A Harvard Business School study shows that
Listen to what diversity is telling you: given the still largely homogeneous nature
American companies that employ significant
of most leadership teams, and the skewed demographics of specific roles within
numbers of ethnic Chinese find it much
every organization, providing ways for alternative views to be heard is critical.
easier to set up in China without a joint
venture with a local firm.
7

8. conclusion
In many ways, the old idea of ‘brain drain’ right, skilled migrants will move and settle in
has new meaning—thanks to the mobility new locations, bringing their skills and other
of the world’s workforce, and unstoppable significant benefits with them, including new
global demographic shifts, the right skills are ideas and networks.
now harder to find and even harder to keep.
Diasporas are young, educated and
Companies need to find new ways to connected—just what organizations are
attract and retain critical skills—and the looking for. But if organizations are to make
original sources of ‘brain drain’ (i.e. migrant the most of diversity they already embody,
populations or diasporas) might just hold or the diversity that they hope to engage,
some of the answers. When conditions are change must surely follow.
References
• ttp://www.management-aims.com/PapersMgmt/21Kilduff.pdf
h
• ttp://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-11-034/EN/KS-SF-11-034-EN.PDF
h
• ttp://www.unescap.org/stat/data/syb2011/I-People/Population.asp
h
• ttp://www.nytimes.com/2010/04/16/us/16skilled.html?pagewanted=all
h
• he magic of diasporas, The Economist, October 2011
T
• igration and Remittances Factbook 2011, 2nd Edition by: Dilip Ratha, Sanket Mohapatra, Ani Silwal: http://publications.
M
worldbank.org/index.php?main_page=product_info&products_id=23876
• ttp://web.worldbank.org/WBSITE/EXTERNAL/WBI/WBIPROGRAMS/KFDLP/0,,contentMDK:20946758~menuPK:1727232~pageP
h
K:64156158~piPK:64152884~theSitePK:461198,00.html
8

9. About the Author
Anthony Raja Devadoss is currently the Vice President—APAC with the Outsourcing & Consulting
Group of Kelly Services. From network services, engineering to e-business solutions, Anthony Raja has
worked in both India and Malaysia, within technical roles to the Chief Executive Officer. He has received
his Bachelors degree in Science and his MBA in Marketing & Postgraduate Diploma in Computing. He
holds membership in various local and international associations such as the MIM, Human Capital Institute
& Association of Career Professionals International. He is the Head of Policy Enablement & Government
Liaison with Outsourcing Malaysia and a member of the Industry Advisory Board for the Graduate School of Business,
UNIRAZAK. He has been recently appointed to the HR Capacity Building task force by the Ministry of Human Resources,
Govt of Malaysia. Anthony is also a member of the HROA APAC Chapter Board.
http://my.linkedin.com/in/anthonyraja http://twitter.com/anthonyraja
About Kelly
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