(Original article by Manuela Andaloro published on Corriere dell’Italianita’)
A new generation is paving the way, focused on the value of expertise and excellence, compliant with strong values and ethical principles.
Throughout the current health crisis, Italy has witnessed the phenomenon of ‘returning brains’, facilitated by progress in the digital world. The returning expats are figures with a high professional profile, much different to a counter-exodus of ‘economic’ migrants.
As recently reported by the New York Times, COVID has managed to achieve that which governments have not: bringing back ‘brains’ to Italy. According to the Ministry of Foreign Affairs, in the past year Italy has seen a 20% increase in returning expats compared to the previous year, with a growing trend in 2021 as well. Italy thus seems to have the opportunity to avail itself of the expertise and innovative spirit of talents that have acquired relevant skills and internationality. It comes to no surprise that business leaders in every sector are encouraging the government to not waste this chance.
The New York Times has recently documented the story of Elena Parisi, a mechanical engineer, who had left Italy 5 years ago – when she was 22 – to pursue a career in London. With the pandemic forcing all employees to work from home, like many compatriots she seized the opportunity to return to Italy. “Quality of life here is thousands and thousands of times better”, states Elena.
The virus has overturned a well-known and global phenomenon – brain-drain from Italy – and achieved that which years of incentives have failed to. Just how much the status quo will change and how permanent the new return trends will be are topics of debate, but something has indeed changed, and the numbers are strong and relevant: “The counter-exodus and ‘returning brains’”, headlined Il Sole 24 Ore newspaper in September. “Now the youth want to return to Italy”, confirmed Il Giornale di Sicilia. L’Espresso magazine has defined 2020 “the breakthrough year; the year of return”. Finally, Il Messaggero newspaper spoke of “Coronavirus, the turnaround of brain drain”, and exhorted legislators to find a way to retain “the extraordinary platoon of talent that has returned due to the emergency”.
The Italian government has positively welcomed the inverse flow of numerous brilliant minds. Paola Pisano, Minister of Technological Innovation in the Conte II Cabinet, stated that this trend is “a great opportunity”, and added that Italy shall now play its part to retain the talents who have returned or that will return.
Another ‘returning brain’ interviewed by the New York Times said, “I 100% embrace an American professional life, but I have a very Mediterranean lifestyle”. Roberto Franzan, developer and founder of successful start-ups in London, as well as a Google computer engineer, has come back to Rome in March. He stated that “This was very positive for me, and a large number of interesting start-ups and tech companies are blooming in Italy; I will probably invest in this country. This moment has given us all the necessary time to realize that returning to where our roots are may be an excellent move”.
I wanted to discuss this ‘breakthrough year’ and the consequent returning expats with two great professionals of the head hunting sector: Carola Adami, head hunter and co-founder of Adami e Associati, and Maurizia Villa, Managing Director- Italy at Korn Ferry International.
Let us begin with my conversation with Carola Adami, co-founder of Adami e Associati.
Dr. Adami, how have the trends and interests of numerous expats changed and how are they changing?
Carola Adami
True, the trends related to expats are undergoing very strong changes following the outbreak of the health emergency. But it is equally true that we are talking about trends in constant change, given that ever since 2010 our country offers substantial tax advantages for returning ‘brains’. Thus, a continuously mutating curve, which has undergone an even quicker transformation over the past few months. What we know for sure is that ever since March the will to return in one’s home country has augmented in a way that appears by all means unprecedented: from this perspective, the health emergency has had a stronger effect than the numerous tax breaks for returning expats.
The pandemic has had an extremely important role in the new behaviors of Italian expats, and has generated or incentivized a tendency towards return. COVID not only increases the number of professionals who decide to come back: it also modifies the reasons for such. Just consider that – up to 2019 – 1 in 3 expats stated to be willing to repatriate only if certain to be assigned a more prestigious position. Today, on the other hand, over 80% of young Italians working abroad are stimulated to return to Italy given the desire to be closer to their loved ones – a factor that normally would have never been so determining. Moreover, in certain cases the health crisis has pushed – or is pushing – towards a return due to the feeling by such workers to be safer in Italy.
Let alone the ‘classic’ reasons that have – even in the past – incentivized a re-entry of expats, we may certainly state that two factors have had a fundamental role: the strengthening of tax incentives to attract ‘brains’ drained abroad; and of course Brexit, with its destabilizing impact.
Our point of view grants us a rather solid opinion of what is occurring, based upon contact with the expats we have gotten to know in the past few months. It is a fact: starting in the spring of 2020, replies to job postings in Italy by expats who have – at the very least – mulled over the idea of making a return have increased more than significantly. True, there has always been a certain interest for professionals working abroad towards the more prestigious positions opening up in Italy. Today, though, the percentage of ‘drained brains’ that assiduously monitors new opportunities in our country is considerably higher. Moreover, it must be underlined that professionals who have spent a few years abroad quite often have an added value to offer to Italian companies.
Our country is witnessing a strong buzz around digital transformation, with a large number of companies searching for talents able to help teams deal with such transition: in a certain sense, you can say that the demand for certain profiles has increased, and professionals who have had the chance to work at the most advanced companies in the digitization process may now make the best of such important work experiences.
Is it true that Milan sits on top as it appears in real estate market research?
Our recruitment agency works in Italy and even in foreign countries, but given it is Milan-based, it has a special awareness of this reality in particular. Of course, the health emergency has transformed and will continue to deeply mutate this city, but its attractiveness in the professional world will most likely not suffer strong downwards variations. One thing is for sure: the extensive increment of smart working and its likely partial continuation in the future tends to eliminate the tight relationship between the company and the worker’s permanent address.
Thank you, Dr. Adami.
Let us move on to my virtual coffee with Maurizia Villa, Managing Director- Italy at Korn Ferry.
Dr. Villa, what is the current scenario of movement of Italian ‘brains’ (whether never ‘drained’ or returning) and the job market in Italy for international medium-high and high level profiles?
Maurizia Villa, Managing Director, Korn Ferry
There had been signs of this occurring for years now. Signals by Italian talents that showed interest in returning to Italy. From the Brexit onwards, most of all, we have witnessed an exponential growth of returning ‘brains’, concerning different job positions, interests, and demands, but with the common denominator being the acknowledgement of a higher quality of life in Italy, along with a better work-life balance, which goes anywhere from the relationship and education factors, to the cultural and even logistics corollaries. Lest we forget, Milan enjoys an excellent geographic position, between the sea, the Alps, the lakes, and the hillside. Moreover, what a large number of returning expats have in common is the awareness that a globalization deficit – especially in terms of workforce – makes a return to Italy become a capitalization of market knowledge, a substantial part of which includes relationships, brand positioning, and so on. The ideal recipe is a combination of value and experience gained abroad, and an Italian market knowledge.
Italy is growingly appealing, even for private equity funds, which see great potential in the country. At the moment, Italy has one of the best tax frameworks for both international talents and returning ‘brains’.
In the past few years, we have noticed a strong interest by senior professionals – even foreign – in a seat on Italian boards. There is often still a language barrier – especially with the older generations – but this is not an obstacle for new generations, although it is true that an effort by international professionals to understand Italian is still appreciated.
Another crucial topic is the value of expertise: we have made it become a mantra, a matter of primary importance. At the moment, the market is very active in finding both traditional profiles and ones more skillful in the technology, innovation, and digital fields: in such contexts, expertise and experience are everything, it just cannot be made up.
Then there is the topic of diversity and gender equality. Governance is once again key, and in this field there is yet a good amount of progress to be made. The matter is not to increase the number of women, but to improve the role of women on boards of directors and make sure they are heard by management. In this respect, we cannot afford to provide consultancy services to encourage validation and not real contribution; it doesn’t make sense to consolidate this tendency.
Finally, the methods of operation are vital: a disruptive leadership is required. We shall leave behind the vertical models. The new generations want to be capitalized on and given value: we need versatility. We live in a world where predictions are short-term, there is a lot of unpredictability, thus it is very important to increase the number of less rigid and more agile professionals and personalities in companies. Smart working has been a testing ground for this: it has made the true resilience and expertise of numerous professionals emerge.
It is decisive to have an attitude that we call cross-fertilization, cross skills. The working world is increasingly dynamic, thus it is positive to look holistically at the skills and experience of talents. We have taken completely unexpected steps in this direction, by working and pushing customers to be brave: the ability is to put together specialists on different fronts and break down barriers. The value achieved and brought to the table when a company does this is extremely high.
What advice would you give to a returning expat?
You have a myriad of opportunities to bring your skills to and invest in the relational recovery of the Italian market. Think about mid-size companies with a strong need for new methodologies and new, international experience. My advice is thus to come back home!
Thank you, Dr. Villa.
Conclusions.
So, what are the vital foundations upon which to build the future of our country and, in general, of our democracies? How may we best seize the opportunities offered by the ‘perfect storm’ that seems to have developed in favor of a strong fresh start? The direction is clear: a maximization of Italian talents – either returning or that never left, giving them a loud and at the same time measured power of speech, leveraging serious information, culture, the ability to sit at negotiation tables and offer ideas and solutions at all levels. We need to restart with occupation and responsible leadership.
A new generation is paving the way, focused on the value of expertise and excellence, and compliant with values and strong ethical principles.
A key element emerges from the numerous conversations I often have with entrepreneurs, business leaders, and government representatives. The key element for the future of the country – and, generally speaking, of liberal democracies – is responsible leadership: a process of interaction with stakeholders that orbits around a shared goal, and that takes place at companies, in politics, and in one’s social context. It is based on ethical standards and values.
Accenture has developed an enlightening responsible leadership model based on 5 elements, which in my opinion are applicable to the corporate, business, government, and social contexts. Let us see what they are:
• Stakeholder inclusion: safeguarding trust and positive impact for all by standing in the shoes of stakeholders making decisions, and fostering an inclusive environment where diverse individuals have a voice and feel they belong.
• Emotion and intuition: unlocking commitment and creativity by being truly human, showing compassion, humbleness and openness.
• Mission and purpose: promoting common goals by inspiring a shared vision of sustainable prosperity for the organization and its stakeholders.
• Technology and innovation: creating a new organizational and societal value by innovating responsibly through emerging technology.
• Intellect and insight: finding ever-improving paths to success by embracing continuous learning and knowledge exchange.
In the next 10 years, our country and the world have plenty at stake. It is a decade in which we shall set and achieve crucial goals. A new and strong model of responsible leadership, along with talent and excellence, may help deal with the most urgent issues, so as to generate new waves of more sustainable and fair growth, capitalizing on essential EQ (emotional quotient) and AQ (adaptability quotient) skills.
This is the time to act. This is the time of expertise.
Manuela Andaloro