Canada Has Three of the Top 10 Lowest Risk Cities in the World to Recruit, Employ and Redeploy Business Talent, According to Aon Hewitt

People Risk Index helps organizations assess talent management risks to improve success of business operations

TORONTO, March 25, 2013 /CNW/ - Three Canadian cities -Toronto, Montreal and Vancouver - are among the 10 lowest risk cities in the world for recruiting, employing and relocating employees, according to rankings released today by Aon Hewitt, the global human resources business of Aon plc (NYSE: AON).

Aon Hewitt's 2013 People Risk Index measures the risks that organizations face with recruitment, employment and relocation in 138 cities worldwide by analyzing factors as demographics, access to education, talent development, employment practices and government regulations. The Index found New York, Singapore, Toronto, London and Montreal retained their ranks as the top five lowest-risk cities in the world. Vancouver is tied for tenth with Boston and Chicago.

"Canada's three largest cities are clearly world-class locations for employers," said Scott Bunker, Talent, Performance and Rewards Practice Leader, Aon Hewitt Canada. "They provide large, well-educated, experienced talent pools working in an environment of stable employment practices. In the latest Index, Montreal's ranking was unchanged, while Toronto and Vancouver slipped slightly as a result of improvements by Singapore. Overall, Canada scores well for Government Support, Education System and Talent Development and Employment Practices. These strengths are somewhat offset by the risks of working age population size, aging population and availability of future workforce relative to New York and Singapore."

For the second year, New York retained its title as the world's lowest-risk city. Its demographic risk is the second lowest due to its large working-age population and high workforce productivity.

Conversely, Luanda, Angola; Port Moresby, Papua New Guinea; Addis Ababa, Ethiopia; Sana'a, Yemen; and Damascus, Syria represent the highest risk locations of the 138 cities for employers.

"The way businesses now recognize and manage people risk has changed significantly over the last few years," said Richard Payne, who was responsible for preparing the worldwide Index and is Talent and Rewards practice leader for Aon Hewitt in Asia Pacific. "Driven by a need to do more with less, business leaders have to be more innovative around how they invest; this has had an impact on how they think about talent sourcing and work force planning. Aon Hewitt's People Risk Index enables businesses to make informed decisions - to balance operational requirements with people risks."

The 10 Lowest-Risk Cities

The Aon Hewitt 2013 People Risk Index showed minimal differences from the 2012 rankings among the top five cities. Singapore remains the only city outside of Europe and North America that is ranked among the top five, while Hong Kong is among those ranked as the 10 lowest risk cities. Of note, two European cities moved up the ranks to be among the top 10 in 2013 - Copenhagen and Zurich. This can be attributed to the many pro-business employment policies in these two cities, their open door policy towards talent and continued focus on developing and improving the education and talent development infrastructures. Furthermore, the increased risk in the euro zone cities exacerbated by the ongoing debt crisis has reduced the relative risk in European cities outside of the euro zone.

"Pro-business employment policies have a significant impact on people risk," Payne added. "Where government policies support a more flexible approach to talent immigration, employment practices and the provision of social welfare, these cities are able to attract and retain a talent supply critical for businesses."

Trends from the Highest-Risk Cities

The top 10 highest-risk cities to employers were: Luanda, Angola; Port Moresby, Papua New Guinea; Lagos, Nigeria; Dhaka, Bangladesh; Tripoli, Libya; Karachi, Pakistan; Baghdad, Iraq; Addis Ababa, Ethiopia; Sana'a, Yemen; and Damascus, Syria.

The lack of a stable and transparent government continues to be an obstacle to implement and enforce business-friendly employment practices in these cities. Furthermore, the lack of government investment in developing and improving the education and talent development infrastructure increases an employer's risk in finding skilled talent, as the current infrastructure is unable to support employers' workforce demands.

"There is a silver lining for these high-risk cities - they will continue to experience population growth in the next decade which will increase the size of the labor pool," said Payne. "However, if the education and talent development infrastructure do not improve, these cities will face a surplus of low skilled workers and a shortage of highly educated professional talent."

Despite the challenging business and people environment, organizations are still expressing interest in these high-risk locations due to the abundant natural resources and high economic growth potential. "Africa presents many opportunities if employers are able to identify and mitigate the people risk in these cities effectively." Payne added.

To find out more about the 2013 People Risk Index, and to obtain a copy of the 2013 People Risk Index Ratings, please visit http://www.aonpeoplerisk.com

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About Aon Hewitt's People Risk Index

The results of Aon Hewitt's People Risk Index are based on in-depth research conducted over a six-month period by the Aon Hewitt's Regional Talent & Rewards Analytics Center in Singapore. Data from more than 100 statistical sources provide the quantitative basis for the ratings, which were augmented by the assessment of Aon Hewitt's local and regional human resources experts from around the world.

The 138 cities were selected based on population size, rate of population growth, level of business investment and geographic spread among the cities covered.

Aon Hewitt's People Risk Index assigned ratings relative to risk for 30 qualitative and quantitative factors across five broad areas: Demographics; Education; Government Support; Talent Development; and Employment Practices. Each of the 30 factors has a scale from 1 (minimal risk) to 10 (extreme risk). Employment Practices area has 10 factors that are weighted by 50%. Thus, the overall ratings are from 25 to 250, where 25 is minimal or no risk and 250 is extreme risk.

About Aon Hewitt
Aon Hewitt is the global leader in human resources solutions. The company partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance. Aon Hewitt designs, implements, communicates, and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. For more information on Aon Hewitt, please visit www.aonhewitt.com.

About Aon
Aon plc NYSE: AON is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 62,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.

Note to the Editors
Please refer to the tables contained in the document below.

  •  Table 1: 10 Lowest Risk & 10 Highest Risk Cities Globally.
  •  Table 2: People Risk Rankings by Area of Risk.
  •   Aon Hewitt 2013 People Risk® Index; 2013 rankings for 138 cities.

Table 1:  10 Lowest Risk & 10 Highest Risk Cities Globally

a) 10 Lowest Risk Cities

     
Ranking1 City Rating2
1 New York 67
2 Singapore 70
3 Toronto 72
4 London 73
4 Montreal 73
6 Los Angeles 74
7 Copenhagen 76
7 Hong Kong 76
9 Zurich 77
10 Boston 78
10 Chicago 78
10 Vancouver 78

b) 10 Highest Risk Cities

     
Ranking1 City Rating2
129 Lagos 179
130 Dhaka 180
130 Tripoli 180
132 Karachi 181
133 Baghdad 186
133 Luanda 186
135 Port Moresby 190
136 Addis Ababa 191
137 Sana'a 198
138 Damascus 204

______________________________________

1 Out of 138 cities worldwide in People Risk Index 2013
2 Based on a rating of 30 factors across 5 categories of risk

Table 2: People Risk Rankings by Area of Risk

Aon Hewitt's People Risk Index assigned ratings relative to risk for 30 qualitative and quantitative factors across five broad areas: Demographics; Education; Government Support; Talent Development; and Employment Practices.

Each of the 30 factors has a scale from 1 (minimal risk) to 10 (extreme risk). Employment Practices area has 10 factors that are weighted by 50%. Thus, the overall ratings are from 25 to 250, where 25 is minimal or no risk and 250 is extreme risk.

               
Ranking
2013
City Rating
2013
Demographics Government
Support
Education
System
Talent
Development
Employment
Practices
1 New York 67 16 17 9 9 16
2 Singapore 70 21 12 12 9 16
3 Toronto 72 24 14 7 14 13
4 London 73 22 18 10 9 14
4 Montreal 73 26 14 7 12 14
6 Los Angeles 74 19 18 11 10 16
7 Copenhagen 76 29 12 10 11 14
7 Hong Kong 76 19 15 16 10 16
9 Zurich 77 30 12 11 10 14
10 Boston 78 23 18 9 11 17
10 Chicago 78 20 19 11 12 16
10 Vancouver 78 27 14 7 15 15

               
Ranking
2013
City Rating
2013
Demographics Government
Support
Education
System
Talent
Development
Employment
Practices
129 Lagos 179 25 38 45 36 35
130 Dhaka 180 24 32 47 43 34
130 Tripoli 180 27 43 32 39 39
132 Karachi 181 26 42 42 37 34
133 Baghdad 186 23 40 41 42 40
133 Luanda 186 23 40 46 40 37
135 Port Moresby 190 26 40 50 40 34
136 Addis Ababa 191 29 39 49 38 36
137 Sana'a 198 31 44 41 44 38
138 Damascus 204 32 50 39 43 40

Aon Hewitt 2013 People Risk® Index

For comparisons to the 2012 People Risk Index, please visit www.aonpeoplerisk.com.

                 
Country City Rank Overall
Rating
(25 - 250)
  Country City Rank Overall
Rating
(25 - 250)
United States New York 1 67   France Paris 36 91
Singapore Singapore 2 70   United Kingdom Manchester 37 92
Canada Toronto 3 72   Germany Frankfurt 37 92
United Kingdom London 4 73   Austria Vienna 37 92
Canada Montreal 4 73   New Zealand Auckland 40 93
United States Los Angeles 6 74   Germany Berlin 40 93
Denmark Copenhagen 7 76   United States Detroit 42 94
Hong Kong Hong Kong 7 76   Japan Tokyo 43 95
Switzerland Zurich 9 77   Japan Osaka 44 100
United States Boston 10 78   Ireland Dublin 45 102
United States Chicago 10 78   Israel Tel Aviv 45 102
Canada Vancouver 10 78   South Korea Seoul 47 106
United States San Diego 13 80   Spain Madrid 48 107
United States San Francisco 13 80   Spain Barcelona 49 108
Sweden Stockholm 15 81   Oman Muscat 50 111
Netherlands Amsterdam 16 82   Malaysia Kuala Lumpur 51 114
United States Dallas 16 82   Chile Santiago 52 115
Norway Oslo 16 82   Saudi Arabia Riyadh 53 116
United Arab Emirates Dubai 19 83   Czech Prague 54 117
United States Houston 19 83   China Beijing 55 118
Australia Melbourne 21 84   China Shanghai 56 120
United States Miami 21 84   Bahrain Manama 57 123
United States Philadelphia 21 84   Poland Warsaw 58 124
United States Seattle 21 84   Italy Milan 59 127
United States Atlanta 25 85   China Hangzhou 60 128
United States Washington DC 25 85   Portugal Lisbon 60 128
Australia Sydney 27 86   China Guangzhou 62 129
Belgium Brussels 27 86   Poland Krakow 62 129
United States Denver 27 86   Italy Rome 64 130
United States Phoenix 27 86   Brazil Sao Paulo 65 131
Qatar Doha 31 87   South Africa Johannesburg 66 133
United States Minneapolis 32 88   Hungary Budapest 67 135
Australia Perth 33 89   Brazil Rio de Janeiro 67 135
Finland Helsinki 34 90   China Shenzhen 67 135
Taiwan Taipei 34 90   China Tianjin 70 138
India Mumbai 71 139   India Kolkata 104 154
Mexico Mexico City 72 140   Tunisia Tunis 106 156
China Nanjing 72 140   China Chongqing 106 156
Philippines Manila 74 141   Romania Bucharest 108 157
China Wuhan 74 141   Morocco Rabat 108 157
India Bangalore 76 142   Greece Athens 110 158
Thailand Bangkok 76 142   Bulgaria Sofia 110 158
Russia Moscow 78 143   Peru Lima 112 161
China Xiamen 78 143   India Jaipur 113 162
China Dalian 80 144   Sri Lanka Colombo 114 163
India Delhi 80 144   Viet Nam Hanoi 114 163
China Suzhou 80 144   Namibia Windhoek 114 163
Panama Panama City 83 145   Egypt Cairo 117 164
China Shenyang 83 145   Kenya Nairobi 118 166
Jordan Amman 83 145   Algeria Algiers 119 167
Indonesia Jakarta 86 146   Kazakhstan Almaty 119 167
China Wuxi 86 146   Serbia Belgrade 119 167
China Chengdu 88 147   Ghana Accra 122 168
India Chennai 88 147   Ukraine Kiev 123 169
Colombia Bogota 90 149   Mongolia Ulaanbaatar 124 170
Philippines Cebu 90 149   Iran Tehran 125 173
China Harbin 92 150   Zambia Lusaka 126 175
Uruguay Montevideo 92 150   Cambodia Phnom Penh 127 176
India Hyderabad 94 151   Venezuela Caracas 128 177
India Pune 94 151   Nigeria Lagos 129 179
India Ahmedabad 96 152   Bangladesh Dhaka 130 180
China Hefei 96 152   Libya Tripoli 130 180
Turkey Istanbul 96 152   Pakistan Karachi 132 181
Russia St. Petersburg 96 152   Iraq Baghdad 133 186
China Xian 96 152   Angola Luanda 133 186
China Changchun 101 153   Papua New Guinea Port Moresby 135 190
China Changsha 101 153   Ethiopia Addis Ababa 136 191
Botswana Gaborone 101 153   Yemen Sana'a 137 198
Argentina Buenos Aires 104 154   Syria Damascus 138 204


  

 

SOURCE: AON Hewitt

For further information:

Media Contact:

Alexandre Daudelin  │  +1.514.982.4910  │  alexandre.daudelin@aonhewitt.com

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