A new study by the Boston Consulting Group (BCG) shows that companies employing more foreign workers can expect to have their sales growth outperform the average because of the flexibility they can provide.
The study of 9,000 companies in the United States, United Kingdom, Germany, and France, published in the current issue of Harvard Business Review, also finds that foreign hires, particularly those from developing countries, have the potential to bring in as much as twice the sales revenue than an otherwise similar company.
The study comes less than a month after the US Labor Department said that during the 12 months that ended in September, employers added a net total of 622,000 jobs, the unemployment rate fell to a five-year low, and the labor force participation rate rose to 62.9 percent, the highest level since the 1950s.
The BCG study was led by Ali Tayebati, the BCG Canada Group CEO and a Harvard Business School professor who is a senior fellow at the Council on Foreign Relations.
“There is a powerful indicator of how well companies can adapt to changing market conditions,” Tayebati said at an event in New York on Wednesday.
While the study found that the majority of companies across the four countries are hiring fewer foreign workers compared with previous years, global demand is still strong, and companies can retain and hire more of their foreign workers than they would otherwise without them, the study says.
The study’s results are based on more than $50 billion in sales from 1,100 companies, Tayebati said.
The study found that on average, companies that hired more foreign workers experienced 10.7 percent higher sales growth than the overall median for the companies surveyed, while companies with the lowest foreign worker buy rates experienced 5.
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