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Emerging Markets Webinar Series: Eye on Latin America
EMERGING MARKET
ECONOMIES WILL
GROW
almost three times faster
then developed ones,
accounting for an
average of
65%of global economic
growth to 2020.
4.7%(largely on the projected
improvement in
economic conditions in a
number of distressed
economies).
By 2016, growth in
emerging market and
developing economies
WILL INCREASE TO
EMERGING MARKETS
ARE ALSO
EXPERIENCING
STRONG
POPULATION
GROWTH.
On the whole, these
regions are youthful and
full of potential for
employers looking to hire
new talent.
[Euromonitor International, 2013]
The median age in
emerging markets is
28.4 years,compared to 40.9 in
developed
economies.
It is widely believed that emerging market economies will be the engine that drives global growth into the 21st century and beyond -- so it’s not hard to see why all eyes are on the next generation of leaders from these regions.
The first part of this series will focus specifically on Latin
America
• Brazil
• Mexico
• Colombia
• Chile
• Argentina
• Peru
• Panama
• Costa Rica
4
1. Our future talent pipeline is vast with limits.
2. Latin America is not homogeneous.
3. Work / Life balance can get lost in translation.
4. Optimism isn’t synonymous with relaxed.
5. Company > Industry.
6. Perception: Government is safe, but is it influential?
7. Social or die.
7 themes to know about talent in Latin America
5
Our future talent pipeline is vast with limits.
Latin America is already a high-focus region for foreign
corporations
6
$ B
$10 B
$20 B
$30 B
$40 B
$50 B
$60 B
$70 B
$80 B
$90 B
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Foreign direct investment (FDI) over 20 years, billions of U.S. dollars
Brazil
Mexico
Chile
Colombia
Argentina
Peru
Panama
Costa Rica
7
Latin America’s population is much younger than Europe’s
and North America’s…
7
26%
30%
20%
26%
25%
16%
45%
47%
40%
47%
48%
40%
20%
17%
26%
19%
20%
27%
9%
6%
14%
8%
7%
17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Caribbean
Central America
Northern America
South America
Asia
Europe
Demographics of world population as of July 2013,selected regions
Source: GeoHive.com
age 0-14 age 15-44 age 45-64 age 65+
-800,000
-700,000
-600,000
-500,000
-400,000
-300,000
-200,000
-100,000
-
100,000
200,000
1982 1987 1992 1997 2002 2007 2012
Costa Rica
Chile
Panama
Argentina
Colombia
Brazil
Peru
Net migrants (immigrants minus emigrants) to/from various Latin American countries, 30-year trend
…which is part of the reason many of these countries are net
exporters of talent.
0%
10%
20%
30%
40%
50%
60%
70%
Percentage of population aged 25+ with a college or university degree
That said, educational attainment in these markets tends to
be fairly low, further narrowing the skilled talent pool
Latin America is not homogeneous.
10
11
$610
$2246
$277$378
$50
$1261
$43$202
$
$500
$1000
$1500
$2000
$2500
Gross Domestic Product (GDP) in 2013,billions of U.S. dollars
These markets vary in size and GDP
And even within individual
countries, quality of talent
often heavily depends on
factors like location or
education.
49% of business and 47% of
engineering/IT students
selected “opportunities to
travel internationally” as one of
their most sought-after
employer qualities.
Mexican students are not highly
interested in relocating within
Mexico, but have expressed interest
in moving outside of Mexico.
In Mexico, for example, the talent market is not evenly spread
across the country.
1414
As a result, students in DF and Monterrey have different
expectations from those located in other parts of Mexico.
14
0
10
20
30
40
50
60
70
% s
ele
cting C
are
er
goal as im
port
ant
DF students Monterrey students All other students
15
Work / Life balance can get lost in translation.
TO HAVE WORK-LIFE BALANCE
47%
TO BE ENTREPRENEURIAL OR CREATIVE/INNOVATIVE
43% 40%
TO BE SECURE OR STABLE IN MY JOB
EMERGING MARKET BUSINESS STUDENTS’ TOP THREE CAREER GOALS
1 2 3
When it comes to their career goals, students across all
emerging markets are focused on work-life balance.
In ARGENTINA, BRAZIL, CHILE, COSTA RICA, and MALAYSIA, the desire for work-life balance is the highest among all emerging markets we surveyed.
Students in these five countriesvoted strongly for work-life balance above every other career goal.
58%COSTA RICA
63%CHILE
57%BRAZIL
59%ARGENTINA
63%MALAYSIA
This goal is particularly important in Latin America
1818
What does “work/ life balance” actually mean in LatAm?
18
0% 10% 20% 30% 40% 50% 60%
Enough leisure time for my private life
No interruption of my leisure time (e.g. on…
Recognition and respect for the employees
Offering external activities (e.g. sports,…
Overtime compensation (monetary or by…
Flexible working hours (e.g. not limited to…
Adequate time for recovering after working…
Convenient work location
Flexible working conditions (e.g. home office)
Opportunities for part-time work
Financial support for parental leave
Consideration of private interests in the…
No requirement for overtime work
Offering child care
Acceptance of parental leave
How Millennials in Spanish-speaking Latin America define work–life balance
1919
In Brazil, for example, it looks a little different.
19
How Millennials in Brazil define work–life balance
0% 10% 20% 30% 40% 50% 60%
Enough leisure time for my private life
Recognition and respect for the employees
Flexible working hours (e.g. not limited to…
Convenient work location
Overtime compensation (monetary or by…
No interruption of my leisure time (e.g. on…
Flexible working conditions (e.g. home office)
Offering external activities (e.g. sports,…
Adequate time for recovering after working…
Consideration of private interests in the…
Financial support for parental leave
Opportunities for part-time work
No requirement for overtime work
Acceptance of parental leave
Offering child care
Optimism isn’t synonymous with relaxed.
21
7%
3%
24%
21%
29%
27%
34%
47%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Rest of world
Latin America
Responses to statement “Over my lifetime, I will enjoy a higher standard of living than my parents”
Universum Millennials Survey, 2014
1 strongly disagree 2 3 4 5 strongly agree
Despite living through some instability, Latin American
Millennials tend to be generally optimistic about the future.
22
Business Engineering / IT
1 Professional training and
development
Professional training and
development
2 Good reference for future career Good reference for future career
3 Leadership opportunities A creative and dynamic work
environment
4 Leaders who will support my
development
Leaders who will support my
development
5 A creative and dynamic work
environment
Leadership opportunities
In LatAm, business and engineering students are both interested in
employer qualities that will set themselves up for future success.
23
And their biggest fear is that they won’t realize their career
goals
Company > Industry.
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Argentina Brazil Chile Colombia Costa Rica Mexico Panama Peru
Percentage of Business Students Choosing Fast-Moving Consumer Goods as a Preferred Post-Graduation Industry
vs. Coca-Cola as an Ideal Employer
% choosing FMCG industry as preferred destination % choosing Coca-Cola as ideal employer
Latin American students are drawn to specific companies
more so than to the industry those companies work in
2626
That said, there are a few exceptions to the rule. Chilean
mining companies have successfully aligned interest in the
industry with interest in their brands.
37%
21%18%
16%12%
8% 7%
11%
1% 3% 4%
12%
2%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Banks (ranked# 1)
Managementand StrategyConsulting
(ranked # 2)
Public Sectorand
GovernmentalAgencies
(ranked # 3)
Auditing andAccounting(ranked # 5)
IndustrialMetals and
Mining (ranked# 8)
Energy (Oil &Gas,
RenewableEnergy,NuclearEnergy)
(ranked # 11)
Fast MovingConsumer
Goods (ranked# 13)
Overall industry attractiveness vs individual employer attractiveness for Business students,
Chile 2015
% choosing industry Avg. % choosing top 3 employers in industry
Perception: Government is safe, but is it influential?
2015 Universum Talent Survey – Business Students
Government or state-owned employers are quite popular
among some Latin American talent
Brazil Costa Rica Panama
1 Google 1 Banco Nacional 1ACP (Autoridad del
Canal de Panamá)
2 Banco do Brasil 2 Banco de Costa Rica 2 Copa Airlines
3 Governo Federal 3 Ministerio de Hacienda 3 Banco General
4 Apple 4Grupo ICE (Instituto
Costarricense de
Electricidad)
4 Maersk
5 Petrobras 5 CCSS 5Ministerio de
Economia y
Finanzas
6 Banco Bradesco 6Banco Popular (de Costa
Rica)6
Procter & Gamble
(P&G)
7 The Coca-Cola Company 7 Coca-Cola FEMSA 7 Coca-Cola FEMSA
8 Itaú Unibanco 8 INS 8 Samsung
9 Rede Globo 9 RECOPE 9 Microsoft
10 Ambev 10 Microsoft 10 Motta Internacional
29
16%
19%
13%
15%
12%
14%
9% 10%11%
0%
5%
10%
15%
20%
25%
Secure/stable Serve greater good Average
Percentage of students preferring public sector as a post-graduation “industry,” five LatAm markets average, 2015
First choice goal Second choice goal Third choice goal Not a Top 3 goal Average
The mining sector is one example of an area where state-owned enterprises play a big role; interest in the government sector is also strong
3030
That said, Latin American millennials are relatively skeptical
about government’s ability to influence society
32%23%
34%
32%
28%42%
6% 3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Rest of world Latin America
Responses to question “Who do you think has the strongest ability to influence society?”
Universum Millennials Survey, 2014
Government Private sector (business) Individuals Non-govermental organisations
They’ll pack their bags, but why?
3232
63% 63%52% 51% 47%
1% 2%
5% 3%5%
35% 35%43% 46% 48%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Peru Chile Argentina Costa Rica Panama
Perc
enta
ge s
ele
ctin
g o
pti
on
Percentage of students willing to work outside their home country, 2015
Yes No, not under any circumstances Possibly, under the right circumstances
Peruvians and Chileans are the most willing to move to
another country for work
33
Students who would
consider moving are
thinking opportunistically
about their careers.
• Better professional
training & development
(55%)
• Attractive remuneration &
benefits (43%)
• A job with a company that
is exciting (28%)
• A job with a prestigious/
successful company
(28%)
• Secure employment
(28%)
Social or die.
Latin Americans are avid consumers of social media.
36
Why should you focus on social media?
Highly relevant
Cost-effective Measurable
0 10 20 30 40 50 60 70
Social media
Employer websites
Outdoor/billboard advertisements
University press & student…
Employer advertisement in social media
Employer advertisements on…
Employer advertisements on TV
Career guidance websites
Employer presentations on campus
Career magazines/guides/books
The Most-Used Channels to Learn About Employers in Latin America
Digital
In-person
Other
2015 Universum Talent Survey – Latin America, All Students
Digital channels are especially popular for learning about
employers
38
That said, students in Latin America also want to hear from
employers on campus.
1. Our future talent pipeline is vast with limits.
2. Latin America is not homogeneous.
3. Work / Life balance can get lost in translation.
4. Optimism isn’t synonymous with relaxed.
5. Company > Industry
6. Perception: Government is safe, but is it influential?
7. Social or die.
7 themes to know about talent in Latin America
1. There is a large, yet diverse, pool of young talent in Latin America.
2. When positioning what Work / Life balance means at your organization, it is
important to understand how it’s uniquely defined for talent in each country.
3. Offering employees ways to be creative & entrepreneurial in their work is a key
way to attract this group.
4. Optimistic mindsets put employers at an advantage; however there is a strong
need to communicate how your organization will set this talent group up for long
term success.
5. In Latin America, focusing on your company’s brand could be more impactful
than highlighting the industry you are in.
6. State-owned entities remain highly attractive due to the stability they offer.
7. Mobility of talent is a key strategic opportunity to attract top talent in LatAm.
8. It is critical to engage talent across multiple channels; social media and face-to-
face interactions are the most impactful for your talent attraction strategies.
Key Points to Takeaway:
Questions?Please enter your questions into the chat box now. We’d also be happy to connect separately if you have any specific inquiries.
Carly Creighton - Head of Latin America
[email protected] +1 404 585 0703https://www.linkedin.com/in/carlycreighton
