Contrary to the belief of many HR people, Numbers Matter More Than Words. You may disagree but that’s the reality: in our today world, numbers speak louder than words. Just take a closer look at the current economic situation and you will find evidence of that.
At times where some governments are struggling with serious budget issues, investors and citizens are more interested in the numbers rather than beautiful rhetoric. And guess what? It’s the same within your company! Particularly in the C-suite room where they likes metrics.
–> Just because you work in the HR field doesn’t give you the excuse to be bad at Economics.
In order to be taken seriously, you have to see the world through the Economic and Financial Lens. Remember: Finance is the King anywhere on earth and the most important player on board. People who don’t understand Economics/Finance are people who don’t understand how the world and their companies work. And of course, you don’t want to be part of this category! As a credible HR Professional, your goal is to be seen as an effective Business Partner. This means being capable of talking numbers and economy confidently with your bosses and anyone else.
If you feel really uncomfortable with numbers and don’t want to spend a lot of time learning news terms and formulas, this article is a good starting point to enhance your understanding of our complex world. Written in a concise manner and with a minimum of economics jargon, it will give you the basics insights of economics that really matter – those that will help you understand why Emerging Markets are going to be more and more important in your day-to-day business activities. Here are what you need to know:
1. The term “Emerging Markets” was created in 1983 by Antoine van Agtmael – an international investment manager – to dispel the negative connotations associated with the previous term “Third Word”.
2. Emerging markets account for 2/3 of the world’s population.
3. In 20 years the economies of these countries will surpass the combined economies of the developed countries.
4. BRICS stands for the fast growing economies of Brazil, Russia, India, China and South Africa. The acronym BRIC was first coined by Goldman Sachs economist Jim O’Neill in 2001 and in 2011 South Africa was officially admitted to the prestigious club.
5. The Next Eleven (N-11) is a group of emerging countries with the potential to rival the G8. This group includes Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam.
6. Goldman Sachs believe the N-11 countries combines may become larger than many of the G8 economies by 2050.
7. Over the past decade, emerging Asia’ real GDP growth rate jumped to an annual average of 7.9%, following by sub-Saharan Africa’s 5,7% and Latin America’s 3,3%
8. Africa is now one of the world’s fastest-growing regions. Over the ten years, six of the world’s ten fastest-growing economies were in sub-Saharan Africa.
9. Although Africa’s economy accounts for only 2% of world output, it will grow at average annual rate of 7% over the next 20 years (faster than China’s) according to Standard Chartered.
10. Emerging markets can be divided into three categories: 1. countries rich in human resources (China, India, Philippines), 2. countries rich in mineral (countries in Africa, Latin America or Russia), and 3. countries rich in financial resource (countries in the Middle-East).
11. The world’s top ten emerging markets according to their stock market value and their national debt are: Taiwan, Indonesia, Mexico, Poland, Brazil, India, Turkey, South Korea, China and Russia.
I hope this information will help you better understand the basics of Emerging Markets and will let you realize that you need to learn more about this topic if you want to be taken seriously by your boss. Don’t forget: as an HR Professional, it’s your personal reputation and credibility that will be called into question! So, if you are interested in taking this further, HRinEmergingMarkets.com is a really good way to get you started.
–> Any comments, questions or suggestions? Feel free to Ask Me Anything by sending me an email at firstname.lastname@example.org
I will be glad to answer you!