New York City has the lowest global risk of recruiting, employing and relocating employees, according to a new human resources report.
Translated, New York City is the go to place for organizations seeking talented and skilled employees to improve their companies. Employers face a number of risks when hiring new talent. Factors like demographics, access to education, talent development, employment practices and government regulations are all factors affecting human resources departments and hiring all over the globe.
Toronto, Singapore, Montreal, and London are also among the top five lowest risk cities for employers in the world.
Aon Hewitt, a global human resources company with more than 29,000 professionals in 90 countries, ranked the 131 cities in the world according to factors that determine whether the city and its demographics are congenial to corporations and hiring personnel.
The Aon Hewitt People Risk Index "helps companies adopt a systematic and holistic approach that compares and measures talent factors by location. Identifying locations and formulating a successful workforce planning strategy involves looking beyond cost,” says Rick Payne, regional Talent and Rewards practice leader for Aon Hewitt in Asia Pacific.
Payne says labor costs and continued global economic volatility keep worldwide organizations on their toes in terms of recruiting talent. Business organizations are “redesigning their talent sourcing strategies and shifting their operations to more advantageous locations. New York edged out Toronto in the Aon Hewitt rankings. New York ranked lowest in demographics risk because of its large working age population, positive immigration rate and high workforce productivity.
This is attributed to New York City’s educational institutions and training facilities, and a large pool of qualified and experienced talent. However, the index showed that the city has higher employment risk than other top five cities, mainly due to higher violence and crime rates, and higher health care and benefits liability risks.
Toronto and Montreal are among the five lowest cities primarily due to Canada’s strict enforcement of equal opportunity laws, clear government-mandated health and retirement benefits, low levels of corruption, and the high quality and broad availability of training facilities. Toronto has low employment and redeployment risk, but the city’s recruitment risks are higher than the other top five cities because of its relatively small working age population and lower immigration rates.
Singapore is the only non European, non American country among the five least risky cities, according to Aon’s index. Singapore’s strict laws on discrimination and occupational health and safety, flexibility on personnel costs, lack of corruption and willingness to work with the private sector on human resources related issues contribute to its Aon Hewitt ranking. Singapore also has low terrorism and political risks and strong government support. Singapore is also a country where its education system highest their best college graduates to teach students in the country.
Payne said “government support strongly correlates with people risk. Cities with low risk typically have a government that is transparent, non-confrontational, deals with employment issues fairly and promotes education and talent development initiatives. Employers in these cities are less likely to be surprised by changes in government policies on employment, health care and retirement and they have better support in terms of workforce development."
High risks cities for recruiting, employing and relocating employees are Lagos, Nigeria, Adis Ababa, Ethiopia; Baghdad, Sana’a, and Damascus. These cities are higher risk because of the political turmoil and unstable governments. The “tumultuous landscape, especially in Middle-Eastern cities, impacts their ability to implement and enforce business-friendly employment practices and invest in talent development initiatives. These cities also have high significant risks in recruiting talent, as education systems are unable to keep up with demand, making it difficult for organizations to find sufficiently skilled workers.
Working age populations are expected to grow in may high risks cities over the next decade which will expand the future labor pool and increase opportunities for organizatiosn to recruit and redeploy talent," says Payne. As this happens, it is expected demographic risks in these cities will improve over time.
The 131 cities used in the rankings were selected based on population growth, level of business investment and geographic spread among cities covered.
More info: Visit the Aon Hewitt People Risk rankings.
source: Aon Hewitt/PR Newswire