The world’s changing economy is complex and there are a number of areas of growth, stability and uncertainty that frame much of what is going on in the current international marketplace. This has significant implications for how organisations, aiming to build business internationally in 2020, need to look after their workforce.

Employee trends

The increase in globally mobile employees continues, as national labour markets become ever more international. There is a trend to send employees to multiple regions, sometimes on back-to-back, short-term secondments to set up a business and then move on elsewhere.

Many more companies are recruiting local nationals in overseas territories; some continue to employ for long-term assignments. International business expansion presents different challenges for HR departments sending staff abroad to work, whether staff are locating to new territories for the first time or even if the company is very experienced in building business abroad.

Changing economies

As companies look to grow business abroad, it’s important to be aware of the regions that are growing, slowing or changing.

For instance, overall, the Middle-Eastern economy slowed in 2019 to the lowest it’s been in over 10 years, growing only by 0.1%.*

However, Saudi Arabia is growing, which may be as a result of the country gradually becoming more flexible to western culture. Saudi Arabia carried out a record number of business reforms in the past year, earning the country a spot in the top 10 global business climate improvers, according to the World Bank Group’s Doing Business 2020 Report.**

Africa is also growing; Nigeria, Kenya and South Africa in particular. The emerging markets of Africa are poised for unprecedented development, with Kenya’s economic growth projected to be rising to 6.1% by 2020, according to the World Bank’s 17th Kenya Economic Update (KEU).***

Supporting staff for the future

With staff more mobile, it’s more important than ever for employers to be aware of how to support their global workforce. Failure to understand the complexities of a region can put both staff and the success of an international business project at risk. Key areas that employers need to consider include:

* https://www.icaew.com/technical/economy/economic-insight/economic-insight-middle-east

** https://www.worldbank.org/en/news/press-release/2019/10/24/doing-business-2020-saudi-arabia-accelerated-business-climate-reforms-joins-ranks-of-10-most-improved

*** https://www.esi-africa.com/industry-sectors/business-and-markets/world-bank-projects-kenyas-economic-growth-to-reach-6-1-by-2020/