Jose Ruiz

A study to quantify and map the quality of human capital in 2008 and 2013

If we consider talent to be a global commodity, as precious as oil or water, then it should be possible to analyze it as a commodity; to predict its supply and demand. The Global Talent Index, developed in collaboration with the Economist Intelligence Unit, explored the distribution of talent in the world in 2007 and 2012.

When we developed the Global Talent Index, only three Latin American countries – Argentina, Brazil and Mexico – were included; their low performance within the global context came as no surprise.  The Latin America Talent Index uses the same methodology but allows closer examination of the region’s talent pool by assessing: Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Peru and Venezuela.

In the past, the challenge for Latin American companies has been access to capital and technology in a market dominated by exporting, mining and agribusiness, oligopolies and government controlled companies. Business interests were dependent on government actions and vice versa. Leadership was important, but not a key success factor in fostering corporate growth and profitability.

Unprecedented advances have occurred since the early-1990s, helped by the opening up of markets, deregulation, the modernization of economies, greater integration and interaction with global markets, the development of local financial and capital markets, and the creation of large global companies headquartered in the region (‘multi-latinas’).  As a result, leadership and talent have started to emerge as important competitive factors. The 2008 global financial downturn has created new priorities and placed new demands on the current leaders. In the short term, companies may be concerned with quarterly results but in the long term the differentiator will be their ability to identify, develop and retain highly qualified talent. The Latin America Talent Index reveals such talent will continue to be scarce over the next five years, posing a challenge to companies and economies eager to continue their growth and consolidation.

Permanently reversing this trend relies heavily on government policies, business strategies and cultural values, and practical results may take time to appear. But as soon as awareness is raised amongst businesses, governments and individuals, and affirmative action adopted, the present and projected talent shortfall will start to be reversed.

This study represents an important first step in this process.

Manoel Rebello, Regional Managing Partner, Latin America
Heidrick & Struggles

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