Fewer And Fewer Expats Working 

By Agnes M. Abrau

In recent years, the number of expatriates working in multinational companies declined with more and more firms wanting to migrate senior positions to Asian nationals. The trend is certainly global and the Philippines is part of this transition as well. Chalre
Associates (an executive search and management consulting firm) Chairman Richard Mills said in his presentation at the American Chamber of Commerce that “the number of expatriates employed throughout the Asia Pacific region has steadily declined and it continuing to do so.” In a telephone interview with Chalre Associates Chairman Richard Mills.

What’s On & Expat, Mills said “localization” in hiring has become a global trend and in the case of the Philippines, so-called “local expatriates” are proportionally greater in number and are preferably hired than international expatriate managers. For those who aren’t familiar with the term, a “local expatriate” is a non-Filipino who decides to live in Philippines because he enjoys the country and its people.

Mills said “localizing expatriates is the next best thing to Filipinos”. He also said that a
significant percentage of expatriates posted to the Philippines has interest to remain in the country when their terms are finished. Mills also serves as the First Vice President of Canadian Chamber of Commerce of the Philippines.

By this, Mills said there is momentous growth for the Philippines particularly in sectors like Business Process Outsourcing (BPO) and mining. The BPO industry in the Philippines, for instance, needs 50 percent more managers each year over the next few years.

This may mean good news for returning Filipino managers who have been living overseas and wanting to reconsider relocating to their home country.

But is this bad news for expats? Mills said not at all. He explained that expats who hold top positions know that they are here to develop local talent.

However, high growth sectors like BPO, mining and others require expats. Mills said expatriates are required in sectors when local talent is not yet developed or available.

“Filipinos think all expats earn more than them. That is not the case anymore. Today’s expats get fewer extras and they are often fired on short notice,” Mills said.

Cross Postings

At present, Asians are taking over the helm in many industries over Western expats, saying that Indians, Filipinos and Malaysians all have the same cross posting opportunities to gain experience and be considered for the most senior roles.

“I have noticed that Indians seem to have taken over CitiBank in the region. Today, Filipinos and other Asians have a better chance than expats to get the top  regional jobs,” he said.

Asia Becoming Noticed Mills said the Asia-Pacific region accounts for less than 15 percent of total revenues for most multinational companies. Many still see Asia as a
place to sell and deploy and not much more.

The entire gross domestic product (GDP) of the Philippines is about 25 percent of the GDP of Dallas-Fort Worth or Philadelphia. The Canadian consultant said countries in
Southeast Asia are small and need to work together to be noticed. That means successful managers need to be able to manage different cultures.

Immigration Concerns

In his presentation, Mills also mentioned “immigration concerns” encountered by expats. “We constantly get calls from expatriates whose term has ended and they want to stay. Many cite beautiful Filipinas as one reason. Philippine immigration is considered unfriendly. We lose motivated and experienced management talent as a result,” he said.

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Executive Search & Management Consulting:

Chalre Associates provides its Executive Search & Management Consulting services throughout the Asia Pacific region.  We are proactive and well known in our sectors of focus.  Regional Managers use us to help bridge the gap between local environments and the world-class requirements of multinational corporations.