International mobility looks set to continue to rise, with small and medium-sized multinationals, in particular, driving growth and encouraging employees to move at an ever-increasing rate, says a new report from Finaccord.
The Aon Inpoint division’s recently released report, Global Multinationals and Corporate Transferees: A Worldwide Review, found that the number of the number of multinationals worldwide is on course to reach 13,900 by 2021 while the number of employees who are classed as expatriate or corporate transferees will exceed 1 million.
According to the report, smaller corporations (those that turn over up to US$10 billion per annum) account for the majority of the multinational market (94.6 per cent), whilst the larger companies – or ‘mega multinationals’ – only make up a small proportion of the market. However, these larger companies make more than two-thirds of the total number of expatriate and other corporate transferees employed by multinationals.
The Asia-Pacific market is a huge driver of these trends, as Finaccord consultant David Bowles explains: “Among all multinationals globally, our analysis indicates that enterprises in two sectors – namely, energy and power plus professional services – are particularly significant, and that corporate transferees are being generated most rapidly by enterprises based in the Asia-Pacific region. In fact, the top five enterprises by this measure are all headquartered in the Asia-Pacific region.”
In total, there were around 12,200 multinational enterprises worldwide according to the report, with revenues of at least $US 200 million in 2017. These companies employ around 838,600 expatriate and other corporate transferees, a number that has increased at a faster rate than the number of multinational enterprises, as a result of the increasing trend for international mobility.
Looking ahead, Finaccord calculates that the rate of growth in the number of multinational enterprises worldwide is likely to be 3.2 per cent between 2017 and 2021, resulting in a total of almost 13,900 by 2021.