The Promise And Challenge Of Skills Mobility Partnerships In Europe

Skills Mobility Partnerships (SMPs) are bilateral or 'mini-multilateral' agreements which facilitate cross-border training and talent-matching from countries of origin with employers in host countries.

Distinct from a country's general immigration programme, these schemes establish bespoke immigration pathways focussing on a select number of in-demand skills or sectors.

There are two key components to SMP arrangements: training and migration.

1. Training. Under such programs, individuals are often trained in critical skills – frequently in sectors or roles facing labour shortages. Such training often occurs in the country of origin, though may also take place in the host country. In either case, participating host countries regularly provide support with respect to training.
2. Migration. The SMP programme may facilitate the immigration of some, or even all, of this trained group to participating host countries. More particularly, the programme may:

The famed 'quadruple win'

These arrangements, also often referred to as Global Skills Partnerships, seek to achieve a 'quadruple win.'

1. First, origin countries can improve the capacity of their domestic workforce. Many SMP participants never leave their country of origin at the end of the training and the up-skilled talent that remains is better able to address domestic skills shortages. Meanwhile, those participants who do travel under the scheme can then provide knowledge and resource transfers with their country of origin – both during and after their residence in the host country.
2. Second, the talent from countries of origin not only receive skills development but may also unlock new pathways for access to foreign labour markets. This is particularly significant for those foreign workers who would otherwise find it very difficult, if not impossible, to access more traditional immigration pathways – as such avenues often prioritise highly skilled talent with a focus on academic qualifications.
3. Third, SMPs offer host countries a mechanism for reducing labour shortages. This is especially the case for practical-skilled roles, which tend to be less supported by traditional academics-focused immigration systems.
4. Fourth, and relatedly, employers in host countries get access to foreign talent, many of whom already possess, or have already received, industry-relevant skills or training.

Current status in Europe

There is currently no true large-scale multilateral approach to SMPs within Europe. Rather, the various schemes are either bilateral or 'mini-multilateral' (that is, the regime is made up of a handful of countries of origin and host countries).

Examples of some notable SMPs include:

European Union initiatives. The European Union's 'Skills and Talent Mobility' package has achieved headlines with its proposed 'EU Talent Pool': a digital platform to help match non-EU foreign nationals with EU-based employers. The package also looks to support the implementation of talent partnerships, including through providing a 'Talent Partnership Pass' to individuals who have received skills training via a talent partnership. This programme currently remains at the proposal stage only.

An idea under-delivering?

Despite their promise, SMPs currently appear to be underperforming, and face considerable challenges. There are several reasons.

Adequacy of skills. Businesses have raised concerns about the adequacy of skills provided under various SMPs. This may be because of incorrect or irrelevant curricula, short training duration, inadequate teaching, or language barriers. Even where the training is sufficient, employers may lack trust. Additionally, there is the issue of changing needs: skills adequate 12 months ago may no longer be relevant.

To mitigate this challenge, programmes should engage in constant dialogue with stakeholders, including private sector employers. Such efforts are more likely to thrive where the engagement, especially with employers, begins early in the program's life cycle.

Recognition challenges. Authorities in the host country may not recognize SMP skills or certifications, or otherwise introduce considerable delays at the recognition stage. Such challenges often reduce the attractiveness of SMP programmes.

Simplified and expedited recognition procedures should be built into skills mobility partnership agreements from day one. Receiving countries need to ensure their immigration systems adequately accommodate the SMP pathway. Depending on the jurisdiction, this may require whole-of-government input – with local, regional and national arms of government all being aligned as to the existence and substance of the programs, and the skills and education qualifications associated with them.

Limited scalability. Many SMPs have been distinctly limited in scale. Current SMPs can often only claim to have engaged 10s to 100s of foreign workers. Success stories note numbers in the 1,000s over a multi-year timescale. Going forward, to have any notable impact in resolving Europe's current labour market challenges, SMPs will need to increase scale – considerably.

Certainly, many recent programmes were harmed by the mobility challenges that arose during COVID-19. Additionally, several programmes were simply 'pilot' iterations – as opposed to full-fledged endeavours. Nonetheless, compelling examples of scalable arrangements remain elusive – a worrying trend for a policy concept that is no longer novel.

Talent retention. Unsurprisingly, businesses will want to be confident that talent hired through SMP schemes will remain in the host country – especially where businesses have invested in the programmes. While employers must ensure they provide an adequately attractive employment package, governments can also amplify retention through more favourable and relaxed policy frameworks. This may include more relaxed family reunification, permanent residency or even naturalization pathways.

Looking ahead

Future opportunity. Despite current teething issues, SMPs look set to remain. For instance, effective 8 July 2024, the European Commission launched the 'Supporting a Talent Partnership with Bangladesh' programme as part of efforts to implement a Talent Partnership between Bangladesh and the European Union, focusing on skills development in sectors relevant to both Bangladesh and the European Union. In addition to skills development (both vocational and professional training as well as language and soft skills training), the programme also seeks to enhance access to information on labour markets as well as facilitate the recognition and validation of skills.

Alternative private sector arrangements. Separate from SMPs per se, private sector actors have established internal skills development and transfer regimes. Though more in the nature of intra-corporate transfer arrangements with an added component of formal and rigorous skills development, such schemes offer an alternative possibility. For its part, Porsche has developed a successful internal skills mobility scheme that dates back to around 2008. Talent is trained at an academy in the Philippines for two years (with a focus on mechatronics and aftersales skills) and then relocated to areas where Porsche dealerships face talent shortages.

Hybrid model. Going forward, some SMP arrangements may adopt a hybrid configuration of public- and private-sector involvement – playing to the strengths of the respective sectors: