International mobility: reflections and guidance for executives in the global economy

Living in a globalized world means that geographical borders are increasingly limiting the activities of people and companies. Professionals often find better opportunities in other countries or cities, and companies move their facilities or start new projects in different locations. This, known as job relocation, has grown significantly due to globalization and the various ways in which companies internationalize or expand beyond their borders. Factors such as the need to serve customers more directly or relocate production plants for economic reasons drive this phenomenon.

Since the early 1970s and more intensely since 1980, there has been a growing internationalisation of production processes. Production has been fragmented and delocalised, creating Global Value Chains (GVCs), in which each stage of production is carried out where resources and skills are available under the best possible conditions in terms of price and quality. This phenomenon has led to a major transformation of the global economy in favour of international integration.

In this way, the work horizon expands beyond any border, opening up the possibility of starting a career in foreign lands or, even within the country, to areas far from our place of residence and usual workplace. Whether due to the search for employment or a company offer to take on a new position, the decision to relocate is crucial and requires deep reflection. A report by the Boston Consulting Group entitled “Taking Advantage of Tectonic Transformations in Global Manufacturing” highlights that more than 90% of manufacturing companies in North America relocated part of their production processes or their supply chain in the last five years, and plan to continue doing so due to geopolitical uncertainty and high tariffs in the United States.

New SEC data shows that nearly 9% of publicly traded corporations in the United States, or 593 companies, relocated their headquarters in the fiscal year spanning March 2022 to March 2023. This marks the highest relocation rate in seven years, following a drop below 7% in 2020 due to the pandemic. On a year-over-year basis, the number of corporations relocating their headquarters increased by 29% from 458 in 2021-22. The trend of relocation of corporate headquarters has increased with more companies choosing to relocate their offices for a variety of reasons. The numbers indicate a significant shift in the corporate landscape and business operations.

The current surge in companies relocating their headquarters is the most significant in a decade, even surpassing the surge seen after the pandemic in 2012-22. This year is proving to be extraordinary, with a 25% increase in the number of companies moving their headquarters.

The case of Argentina: talent in motion

In Argentina, this phenomenon is equally notable. According to the latest CEO Survey conducted by PwC, 80% of Argentine businessmen consider “macroeconomic volatility” to be the greatest obstacle to professional development in the country. Furthermore, 60% of CEOs surveyed believe that this makes it difficult to “retain and attract talent.” Not surprisingly, eight out of ten Argentines consider emigrating if they had the right conditions, according to a study by Taquión Research Strategy. This trend makes Argentina a “great exporter of pearls,” with Argentine executives and CEOs sought after all over the world.

Geographic mobility remains a key element of professional development, offering employees a constant learning opportunity. Relocating to work in another country can be the key to boosting a career to the next level. Companies often look for professional profiles with international experience, as this experience can provide a unique and valuable perspective. In addition, working in a culturally diverse environment provides the opportunity to broaden horizons and strengthen interpersonal skills.

But relocating to another country for work is not without its challenges. Adjusting to a new cultural and social environment can take time. However, many professionals find that the long-term benefits far outweigh the initial challenges. The possibility of professional growth, the development of intercultural skills, and the building of a global network can make a significant difference in an executive’s career.

Recommendations for a successful relocation

For the companies

Companies must consider several factors when relocating their executives:

• Costs and Benefits: evaluate relocation costs and expected benefits.
• Cultural Adaptation: provide cultural and logistical support to facilitate the transition of the executive and his family.
• Relocation Packages: design attractive packages that include housing, education for children and other benefits.

For executives

For their part, executives facing relocation must consider:

• Investigation: Get to know the destination country thoroughly, including the cost of living, quality of life and job opportunities.
• Legal aspects: Make sure you meet all legal and visa requirements.
• Cultural Adjustment: Prepare for the cultural and social challenges of living in a new environment.
• Support net: Develop a network of contacts, both professional and personal, in the new country.

To put it bluntly and in detail, an executive who is going to migrate should ask himself some or all of these questions to evaluate his relocation package:

• How long do you estimate your stay will last?
• What do you know about the country and the company that hires you?
• What are the real costs of living in the destination country?
• What culture prevails?
• What leisure options does the city or country offer me?
• Is this a temporary option or did you see it as a long-term change?
• What is education like for my children?
• Will my partner be able to easily access the job market with his or her specialization or qualification?
• Is it possible to negotiate some sections of the package?
• Which of the services offered include advice?
• What are the conditions for repatriation?

The decision to relocate is more than just a move; it is a transformation that involves both the individual and the organization. The potential benefits are vast, from developing a global perspective to the ability to access emerging markets. As the world continues to integrate, the ability to adapt and thrive in different cultural contexts becomes a crucial competitive advantage.

Furthermore, relocation not only benefits individuals, but also strengthens companies by providing them with leaders with international experience and intercultural skills. In this context, geographic mobility emerges not only as a corporate necessity, but as a strategic opportunity to drive innovation and sustained growth in the competitive global market.

General Manager of Metrar Group