ef epi-c · about the ef epi-c report executive summary ... proficiency levels in 22 industries and...

EF EPI-cEF English Proficiency Index for Companies

www.ef.com/epic 2014

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TABLE OF CONTENTS

About the EF EPI-c Report

Executive Summary

Introduction

Workforce English by Country

Workforce English by Seniority

Workforce English by Company Size

Workforce English by Industry

Industry Spotlight: Consulting

Industry Spotlight: Information Technology

Industry Spotlight: Engineering

Industry Spotlight: Accounting, Banking & Finance

Industry Spotlight: Healthcare & Pharmaceuticals

Industry Spotlight: Manufacturing

Conclusions and Recommendations

Appendix: Workplace Definitions of English Competency

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EF English Proficiency Index For Companies

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The EF English Proficiency Index for Companies (EF EPI-c) is an evaluation of global workforce English skills. This is the second edition of the study, following an earlier report in 2012. It measures English proficiency levels in 22 industries and 32 countries, in companies with an annual turnover ranging from under 1 million USD to over 100 billion USD.

The report aims to set national and international benchmarks for workforce English against which individuals and companies can evaluate their relative capabilities; and second, to assess why companies in some countries and sectors perform better than others, and to highlight examples of best practice.

This report is a companion to the EF EPI report, which evaluates adult English proficiency levels around the world based on a separate set of test results. Together, these two reports provide a multifaceted perspective of English ability around the world. Both reports, as well as a collection of country fact sheets, are available for download at www.ef.com/epic.

ABOUT THE EF EPI-c REPORT

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METHODOLOGY

This second EF EPI-c study is based upon research conducted in 2013. 105,093 employees of companies

and governments took an English proficiency test administered by EF Corporate Solutions and completed

a questionnaire. These employees were not enrolled in an English-training program at the time, and the

results of the test were not used to determine pay.

Geographically, the test takers came from more than 30 countries: 40% from Europe, 35% from Asia, 23%

from the Americas, and 2% from the Middle East. Of the employees tested, 69% identified themselves as

Staff, 23% as Managers, and the rest as Executives. The test results were supplemented by a number of in-

depth interviews to add deeper insight to the findings.

ACKNOWLEDGEMENTS

We would like to thank all participants for their contribution to this research.

Kathleen Bailey is Professor at the Monterey Institute of International Studies, and currently serving as

President and Chair of The International Research Foundation for English Language Education (TIRF). With her

work for TIRF, Professor Bailey and the TIRF Board of Trustees are seeking to promote effective practices in

the use of English in the emerging global knowledge economy of the 21st century. She has conducted teacher

training activities, including leading workshops and teaching courses, in 30 different countries.

Maury Peiperl is Professor of Leadership and Strategic Change at IMD and Chair of the Evian Group at the

IMD Faculty Advisory Board. His areas of interest are organization development, executive careers, change

management, HR strategy, and global mobility. Professor Peiperl has taught, researched, or consulted in

these areas in some 30 countries on five continents, and is dedicated to promoting the role of business in

sustainable global development and in the resolution of cross-national conflict. His current work focuses on

the development of global executives, in particular CEOs and boards, and the management of careers under

long-term uncertainty.

Carlos González Leal is Local Process Driver at the HR Shared Service Center of Tetra Pak® for Central &

South America. He is responsible for addressing local delivery of Performance Management, Competence

Development, Succession Planning, and Learning Management Processes on his region. Carlos’ areas of

interest include Organizational Psychology, Training Design and Delivery, Facilitation, E-learning, People

Development, Learning Foundations and Techniques, and HR Transformation. He has participated as a

guest speaker in several corporate education conferences in Brazil and is an active member of a network of

Learning Professionals in Campinas (São Paulo, Brazil).


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EXECUTIVE SUMMARY

The EF EPI-c report sets national and international benchmarks for workforce English.

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English is the global language for business. Companies

of all sizes across different countries and industries

are finding it increasingly advantageous to be able to

communicate effectively in English. They now view

English proficiency as a truly strategic requirement,

in order to take advantage of business opportunities,

promote internal collaboration, and help foster

innovation. However, this study shows that companies

are struggling to keep pace with the growing

importance of English.

Key findings include:

• There remains a wide gap between the most and

least proficient national workforces in English. North

European countries continue to set the standard,

but most emerging markets, plus France and Italy,

have low-proficiency workforces.

• Workforce English proficiency is on an upward trend

in the majority of countries, but progress in most

emerging economies, in particular, is slow.

• Low proficiency in workforce English has negative

implications for a country’s competitiveness and

attractiveness to investment. For companies it means

missing out on business opportunities, creating

a weaker internal culture for communication and

innovation, and falling behind competitors.

• In almost half the countries surveyed, English

proficiency among Executives was worse than among

Managers and Staff. This will hamper companies’

ability to operate effectively in an international context.

• High-tech and professional services sectors such

as consulting and engineering have better levels of

English than lower value-added, nationally-oriented

industries such as foodstuffs and construction. The

travel and tourism industry fares surprisingly poorly.

• Small companies have lower English proficiency,

which may hinder their ability to expand in a

globalized economy.

This report makes a number of recommendations for

companies and governments to improve workforce

English proficiency.

Companies should:

• Establish clear requirements for English proficiency

and link them to promotion.

• Make sure programs are cost-effective.

• Manage English training as a change program.

• Offer flexible, personalized learning solutions.

Governments should:

• Ensure that English is fully incorporated into the

school curriculum from an early age.

• Encourage students in higher education to spend time

in English-speaking countries.

• Provide incentives for companies to undertake

English training.


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It is now widely accepted that English is the de-facto

language for international business. Increased

use of English in the workplace is driven primarily

by the continuing integration of global economies

and businesses, with more and more companies

becoming international, selling, producing and

servicing in multiple markets. For example, a

JPMorganChase survey found that 61% of middle-

market firms were actively doing business in

international markets in 2013, up from 58% in 2012

and 43% in 2011.

It is also being driven by increased communication.

As the world becomes much more integrated, there

exists a greater need for businesses to communicate

frequently and seamlessly across borders, with

customers, colleagues, suppliers, and partners

outside their home markets. Finally, as businesses

become increasingly internet-driven, relevant digital

content has become a critical component of every

industry, with 56% of all online content in English

(and a large drop down after that to Russian, German,

and Japanese with about 5% or 6% each)1. The

companies that thrive in these conditions are the

ones whose employees have the skills and training to

communicate efficiently across borders.

Another key consideration for companies is fostering

innovation: in an increasingly competitive economy,

global businesses need to innovate faster to keep

up with customers and competitors. To do this, they

require a healthy internal culture of conversation,

collaboration, and creativity. This is underpinned

by a company-wide ability to communicate across

borders in English.

ENGLISH PROFICIENCY IS A KEY FOR

CORPORATE COMPETITIVENESS

These trends have made English proficiency a major

priority for businesses. Historically, language training

in the workplace was viewed mainly as an employee

benefit, but in recent years English has become a

much more important priority. With English now being

seen as the means to help drive better international

communication, collaboration, and corporate

innovation, companies now view English proficiency

as a truly strategic issue. Furthermore, they are aware

that, in an increasingly competitive world, lagging

behind their competitors in proficiency levels could

even restrict their growth aspirations as a business.

In an Economic Intelligence Unit (EIU) survey of 572

Executives at multinational companies, nearly half

admitted that basic misunderstandings had stood

in the way of major international business deals,

resulting in significant losses for their companies.

That percentage was considerably higher for

Executives at Brazilian and Chinese companies,

where 74% and 61%, respectively, acknowledged

experiencing such losses.

The conclusion is clear: language and cultural

differences create barriers to business success. In

the EIU study, 64% of business leaders said that

these differences also make it difficult to gain a

foothold in foreign markets, and that these cultural

differences have hampered their international

expansion plans. In addition, 70% stated that

they sometimes encounter difficulties when

communicating with business stakeholders.

Nearly 90% of the 572 Executives surveyed by

the EIU said that if cross-border communication

improved at their company, then profit, revenue,

and market share would increase significantly,

with better expansion opportunities and fewer lost

sales opportunities. A separate study, conducted

by Illuminas in 2014, found that 79% of decision-

makers at global businesses that had invested

in English training for their Staff saw increased

sales. Other business benefits included improved

employee communication, employee productivity,

and customer satisfaction.

INTRODUCTION

1. W3Techs Web Technology Surveys, April 2013; Usage of content language for websites. http://w3techs.com/technologies/overview/content_language/all

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COMPANIES ARE SEEKING TO BOOST

ENGLISH PROFICIENCY

As a result, multinational companies with offices

in countries where English is not the native tongue

are adopting English as their corporate language.

The list includes European aircraft manufacturer

Airbus, Japanese e-commerce firm Rakuten, French

automotive company Renault, and South Korean

electronics firm Samsung. Smaller companies are

also embracing English as they look to plug into the

global economy.

“Anybody who’s working in a significantly cross-

border way has to have English proficiency. I have

seen major global companies move from having

their board meetings in their local language to

having their board meetings in English, so this

change is even taking place at the most senior

levels,” says Maury Peiperl, Professor of Leadership

and Strategic Change at IMD Business School.

Similarly, Professor Kathleen Bailey, President and

Chair of The International Research Foundation

for English Language Education (TIRF), explains

that: “English is the cross-communication vehicle,

not just for people doing business between

English-speaking countries, but also for people

doing business between countries where the first

language in either country is not English.” For

example, if businesspeople from countries such as

Japan and the UAE meet, the language they use will

invariably be English.

English looks likely to remain the global language

for business for the foreseeable future. Around a

decade ago it was commonly expected that, with

the rise of China as a global economy, Mandarin

would take on that role, but, in fact, this has not

happened—in part because Mandarin is a very

difficult language for speakers of most other

languages to learn. Instead, the Chinese are making

huge efforts to improve their English proficiency.

This does not suggest that English will eclipse local

languages. Companies, of course, still need to serve

markets locally. And with globalization, the need

for localization also increases. In a country such as

Colombia, for example, Spanish will remain the main

language for doing business within the country—

but it will be necessary for a company in Colombia

communicating with the outside world to operate in

English. The challenge for companies is to create

cohesion between culturally distinct workforces.

English helps with this as it bridges linguistic

differences and brings employees together.

However, this report shows that companies are

struggling to keep pace with the growing importance

of English. Very few groups score very highly for

English language proficiency. Even in countries that

score very highly overall, there are wide disparities

in performance between industry sectors, and even

between levels of seniority within one company, so

there is considerable room for improvement.


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In its recently released medium-term corporate strategy for FY2014-2016, ANA

announced plans to increase the productivity of its international passenger operations

by 45%. ANA will be accelerating improvements to its service quality, including the

skills of its cabin attendants, as well as developing personnel who can contribute to

its global expansion. For this reason they decided to invest in an English language

training course for 30,000 of their employees. They feel this will play a key part in

assisting them to achieve their ambitious goals for growth.

COMPANY SPOTLIGHTS

All Nippon Airways (ANA)

AB InBev (Anheuser-Busch InBev) is the leading global brewer and one of the world’s

top five consumer product companies. It employs 150,000 people in 24 countries

across the world. “Conducting business on a global scale means that staff in our

organization need to have strong English communication skills. With employees and

Staff from every part of the world, it is important that we understand each other,”

says Linda Qian, People VP of AB InBev APAC. As part of their dream to become "the

best beer company, bring people together, in a better world", the company decided to

invest in English language training. They have noticed the difference that English has

made to the business, “improving our employees' English has certainly helped them to

be more productive,” says Qian.

AB InBev

Atos, a global IT services company, is four years into a strategic transformation to

become a global leader of the IT services industry. English is the global corporate

language at Atos and the need for English proficiency has increased recently due to

their development of offshoring. “With large numbers of people in India, Africa, and

Latin America, many colleagues are not in the same town any more. Often they are

not even in the same country. These changes also help drive the need for English

language training,” Robin Ajdari, Vice President for Learning & Development and

Head of Atos University at Atos International explains. With the company dedicated to

providing services globally, client communication is another driver of language skills.

“The level of English that our employees possess, if it was not good enough, would be

detrimental both to the service we provide and further development of our business,”

Ajdari says.

ATOS


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WORKFORCE ENGLISH BY COUNTRY

WIDE GAPS IN ENGLISH PROFICIENCY

There remains a wide gap between

the most and least proficient national

workforces in English. In a world where

companies from all countries play a role

in the global economy, this has serious

implications. Many indicators of income,

innovation, and trade correlate positively

with English proficiency. Three-quarters

of the leading countries in the Global

Innovation Index have high proficiency

or above in English2. In addition, a study

by the British Council in 2010 showed

that strengthening workforce English

proficiency improves countries’ ability

to compete in the global economy and

to attract investment3. Workforces with

lower proficiency cannot communicate

internationally with ease, making them less

competitive in a globalized marketplace.

Studies have also demonstrated a positive

link between English language training

and important aspects of business

performance. For example, research by

The International Research Foundation for

English Language Education (TIRF) has

found that English language training leads

to better retention of employees, improved

e-mail communication, and stronger

performance in business meetings4.

2. https://www.globalinnovationindex.org/content.aspx?page=GII-Home3. Pinon, R., & Haydon, J. (2010). The benefits of the English language for individuals and societies: Quantitative indicators from Cameroon, Nigeria, Rwanda, Bangladesh and Pakistan. Euromonitor International. http://www.teachingenglish.org.uk/sites/teacheng/files/Euromonitor%20Report%20A4.pdf4. TIRF (2009). The Impact of English and Pluralism in Global Corporations. Monterey, CA: TIRF.

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EF EPI-c PROFICIENCY BANDS High Proficiency Moderate Proficiency Low Proficiency

China 53.49

South Korea 49.88

Chile 47.60

Finland 68.01

Czech Republic 57.52

Saudi Arabia 38.84

Japan 53.61

Vietnam 50.03

Brazil 48.30

Argentina 64.33

Norway 71.09

Spain 61.14

Costa Rica 44.71

Italy 54.31

Colombia 52.34

Mexico 49.05

Poland 65.44

Netherlands 71.47

Uruguay 61.28

Venezuela 45.34

France 55.68

Taiwan 53.20

Turkey 49.79

Belgium 67.40

Denmark 72.58

Germany 60.48

Algeria 43.25

Indonesia 53.83

Panama 50.13

Russia 48.59

Switzerland 64.69

Sweden 71.31

COUNTRIES' WORKFORCE ENGLISH SCORESEF English Proficiency Index For Companies

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HIGH-PROFICIENCY WORKFORCES

Northern Europe, parts of Central Europe

and Argentina have high-proficiency

workforces. Most of these are countries

where English has traditionally been strong

(Argentina, Belgium, the Netherlands,

Scandinavia, and Switzerland), but Poland

presents an interesting case of a country

that transitioned to high English proficiency

more recently.

North European countries such as Sweden

have small domestic markets, which

increases the incentive to learn English so

as to tap into the global economy. English

proficiency is taught well in schools, as a

standard part of the curriculum from an

early age. It is seen as a core skill for job

applicants, which encourages people to

make a serious effort to learn it. In addition,

English-language films and television

programs are usually subtitled rather than

dubbed, which means frequent exposure to

spoken English in everyday contexts.

High English proficiency in Poland reflects,

in part, the fact that the country is now a

much more open society than was the case

25 years ago under Communism, which

has encouraged people to learn English. In

particular, there was large-scale migration

of Poles to the UK after EU accession,

which has now reversed to some extent—

many Poles have returned home, having

taken the opportunity of working in the

UK to considerably improve their

English proficiency.

Argentina has historically been an

internationally-focused country with a

well-educated population. The country’s

recent economic crisis has reinforced

this by forcing many Argentinian companies

to export abroad for their growth and

to improve their competitiveness by

strengthening the international skills

of their workforce—which means

learning English.

MODERATE-PROFICIENCY WORKFORCES

Germany, Spain, the Czech Republic, and

Uruguay have moderate proficiency. In

Germany, English is taught to all students

in schools, but most media is dubbed. Spain

has promoted English language teaching in

schools, but too recently to have an effect

on the majority of the adult population. The

Czech Republic, like Poland, has become

more open, and English is now taught in

schools. As a result, English proficiency

is improving, but is stronger among the

younger generation, and, unlike Poland, the

country has not seen sizeable migration

flows that would have contributed to

stronger English proficiency.

LOW-PROFICIENCY WORKFORCES

Most emerging markets, plus France and

Italy, have low-proficiency workforces.

In lower proficiency countries, English is

typically taught as a secondary academic

subject in schools. The quality of teaching

is often poor and reliant on outdated

methods. English is rarely a requirement

for obtaining employment, and television

and films are usually dubbed, which limits

effective exposure. More generally, many of

these countries are more culturally distant

from native-English-speaking countries,

argues Professor Peiperl. “There are some

borders that you cross where it doesn't feel

too difficult to make that crossing; there

are others—which also have to do with

physical distance—where it’s huge.”

Japanese companies have made

considerable strides in English, reflecting

an awareness that they need to master it to

compete effectively in the global economy,

even though, on average, proficiency

remains low. “Japanese companies that are

globally oriented are very much English-

speaking. On the whole, they have made a

lot of progress over the years because they

have to reach out beyond their borders,

and the language that it’s easiest for

them to connect in is English,” says

Professor Peiperl.

In China, adoption of English by the

workforce has increased exponentially

in recent years. Chinese companies are

now also looking to go global and have

realized that an international presence

will require them to speak English. On an

individual level, meanwhile, competition for

employment and aspirations for personal

improvement are high. English teaching in

schools remains of poor quality—although

it is improving—but private tuition is

widespread. “There are now more Chinese

people learning English than there are

native English speakers on the planet,

which is astounding really. The Chinese

are very hungry to learn English,” says

Andy Bailey, Chief Marketing Officer of EF

Corporate Solutions.

Low proficiency in workforce English

has negative implications for a country’s

competitiveness and attractiveness to

investment. One problem for companies

in countries where English proficiency is

low is that it can restrict their recruitment

options. Emerging economies such as

Brazil, Turkey, and Indonesia are not

lacking in skilled people, but companies find

that there is a shortage of skilled people

with international skills, including language

skills. For example, a country may have

many highly qualified engineers, but most

of them may not speak the level of English

required by a multinational corporation,

thereby restricting the recruitment pool.

That means multinational companies

looking to invest in these markets face

the prospect of having to spend money

on extensive English-language training,

and they may be more inclined to base

international functions in countries where

English skills are stronger.


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Domodedovo Airport is the largest Airport in Russia. It services around 31 million

passengers every year and in next two years they aim to increase these volumes

to around 50 million passengers per year while still providing an excellent level of

service. The Airport realized that they needed English language training to help them

meet the needs of the larger number of international passengers this increase in

volume would bring. They therefore implemented a wide-scale training program

for 5,118 front-office employees. This aimed to help customer-facing staff improve

communications and provide better customer service. The results have been almost

immediate, with employees feeling much more confident in their language skills and

much more willing to proactively engage with international passengers.

Tatarstan is an oil-rich republic in the Russian Federation. Its president, Rustam

Minnikhanov, has publicly stated his ambition to turn Tatarstan into a truly global,

service-based economy over the next couple of decades. This means being able to

speak the international business language, so the republic aims to make its citizens

trilingual, speaking English and Russian, while also holding onto the Tatar language.

The first step has been to upskill English teachers within the country’s education

sector in order to be able to teach English to the next generation of children coming

through the school system. The target level for the English teachers was achieved

within three years. The next stage has been to track the impact of those teachers on

the English proficiency of students coming through the education system, which is

already proving to be dramatic.

DOMODEDOVO AIRPORT

THE EDUCATION MINISTRY OF TATARSTAN

COMPANY SPOTLIGHTS

BDO, the 5th largest global accountancy network, with more than 56,000 employees

in over 144 countries, use English as their corporate language for their worldwide

communication. BDO recognized the importance of better English as a means to

improving communication with their international clients and offering a more efficient

service to them. For this reason, learning English was made a key goal for BDO

employees. They feel their investment in language learning has brought them closer to

their goal of becoming the global leader for exceptional client service.

BDO


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ONLY GRADUAL IMPROVEMENT

The majority of countries have improved

their English proficiency since 2012, but

progress in most emerging economies,

in particular, is slow. Most emerging

markets are improving only gradually—not

enough to transition to high performance

within the next decade. In China and South

Korea, workforce English proficiency is

failing to improve, despite considerable

spending on English training. Saudi Arabia’s

English proficiency level has deteriorated

dramatically, which may reflect the

recent 'Saudization' policies designed

to considerably reduce the number of

expatriates in the workforce.

Slow improvement in English proficiency

is not surprising. “Learning a language is

actually very hard—as anybody who’s tried

it would know. So this is not something

that you change overnight. It will take

years,” says Peter Burman, President of EF

Corporate Solutions. Part of the challenge

is that the supply of good English teachers

is often low—in China, for example, it is

hard to find good English teachers even

in the main cities, and extremely difficult

beyond that.

Moreover, the English skills required by

businesses may well go beyond the kind of

formal English that has traditionally been

taught in schools, with a greater stress

on the ability to use English actively and

confidently in a variety of settings, from

email and video conferences to cocktail

parties. “Whatever the industry, there

is more of an emphasis on the ability to

respond and engage, both in professional

interactions and also in small talk,”

says TIRF Professor Kathleen Bailey.

“Even reading and writing, if you think

about e-mails and blogs, have become

more interactive.”

In addition, many companies have been

slow to integrate requirements for English

into the standard competencies that they

demand of employees. One of the world’s

leading automotive companies explains

that: “We don’t have a standard to assess

a candidate’s English language skills,

but we think it is important, for sure. For

certain positions, engineers for instance,

their technical skills will be considered first

and English skills are a plus. Because, if

needed, we will provide English training

to them.”

Nevertheless, the progress made in

countries such as Poland suggests that

fairly rapid advances in English standards

are possible. Many emerging countries, in

particular, are now taking the integration of

English into their education systems very

seriously, and over the next few years these

efforts are likely to pay off. In some

of the European countries where proficiency

is lower, such as France and Italy,

serious attempts to improve matters are

less evident.

Progress will be helped by the rapid

expansion of online and virtual learning.

Global spending on online learning jumped

from 36 billion USD in 2011 to 56 billion

USD in 2013, and is projected to exceed

100 billion USD by 20155. Rising Internet

penetration in emerging markets is allowing

their workforces an unprecedented level of

access to high-quality English teaching.

WORKFORCE VS. ADULT POPULATION

The level of English proficiency is typically

higher for the workforce than for the

adult population as a whole. This partly

reflects corporate investment in their

employees’ proficiency that is not available

to those outside the workforce, as well as

the fact that people are likely to be using

their English more actively when they are

working, which aids proficiency.

Employees are also increasingly

making efforts to improve their English

independently, realizing that this will be

a key competitive advantage for career

progression. In some markets in particular,

such as China and Brazil, there is a clear

trend for many people to use their free

time and their own money to improve their

English skills.


5. E-learning industry, December 2013; Top ten e-learning statistics for 2014. http://elearningindustry.com/top-10-e-learning-statistics-for-2014-you-need-to-know

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Denmark

Netherlands

Sweden

Norway

Finland

Belgium

Poland

Switzerland

Argentina

Uruguay

Spain

Germany

Czech Republic

France

Italy

Indonesia

Japan

China

Taiwan

Colombia

Panama

Vietnam

South Korea

Turkey

Mexico

Russia

Brazil

Chile

Venezuela

Costa Rica

Algeria

Saudi Arabia

WORKFORCE ENGLISH VS. ADULT ENGLISH

20 60504030 70 80

Adult English Workforce English

EF EPI-c Score


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MANAGERS HAVE THE BEST ENGLISH

Having a good level of English proficiency

throughout the organization, from more

junior Staff to senior Executives, brings

considerable benefits. In an increasingly

globalized workforce, it encourages

dissemination of information, knowledge-

sharing, the fostering of innovation and

collaboration across the company at

all levels.

It might appear natural that Executives’

English proficiency would be higher

than that of Managers and Staff, since

Executives are more likely to be operating

in an international context. A leading global

automotive company explains that: “In

general, Executives’ English proficiency

is greater than that of the Staff in our

company. There are two main factors.

First, we require higher English proficiency

for Executives during the recruitment

process and it is one of the categories for

internal promotion. Second, the nature

of these Executives’ job in our company

is to communicate with the management

team from day to day, and their common

language is English, without a doubt.”

Despite this, in almost half of the

countries tested, English proficiency

among Executives was worse than among

Managers and Staff (see page 19). This is

true of all the countries that rank as high-

proficiency in English overall (except for

Argentina), suggesting that companies in

these countries need to focus particularly

on improving the English skills of their

Executives. Executives tend to be older and,

as such, were educated in a time when

English was not a yet a required subject in

many nations’ curricula. Intensive exposure

to the Internet and social media means that

younger generations (and therefore, more

junior Staff) in these countries often have

superior English skills to older adults.

In almost all countries, English proficiency

was highest for Managers, compared with

Executives and Staff. Managers are more

likely to have learned English in school,

and English proficiency may well have

been a factor in their promotions. As with

Executives, they interface frequently with

international partners and clients.

Some lower-performing countries, notably

France, Italy, and Japan, stand out for

having higher English proficiency among

Executives than among Managers and Staff

(although they still lag behind Northern

Europe). This would suggest that in these

countries the main focus should be on

improving general English levels.

DEFINITION OF TERMS

Executive: An employee with senior managerial responsibility often involved in defining and setting corporate strategy.

Manager: An employee with control or direction over a department or a team of workers.

Staff: An employee who does not fit into either of the above categories, with no direct responsibility for a department or team.

WORKFORCE ENGLISH BY SENIORITY

18 www.ef.com/epic

ALGERIA COLOMBIA

GERMANY

SWITZERLAND

ARGENTINA COSTA RICA

INDONESIA

TAIWAN

BELGIUM

CZECH REPUBLIC ITALY

TURKEY

BRAZIL

DENMARK JAPAN

URUGUAY VENEZUELA VIETNAM

CHILE

FINLAND

SPAIN

CHINA

FRANCE

SWEDEN

SOUTH KOREANETHERLANDS NORWAY PANAMA POLAND RUSSIA SAUDI ARABIAMEXICO

20

50

30

60

80

40

70

20

50

30

60

80

40

70

20

50

30

60

80

40

70

20

50

30

60

80

40

70

EF EPI-c Score

EF EPI-c Score

EF EPI-c Score

EF EPI-c Score

Workforce English Executive Manager Staff

COUNTRY & SENIORITYEF English Proficiency Index For Companies

19

SMALL COMPANIES LAG IN

ENGLISH PROFICIENCY

Average English proficiency in companies

of all sizes is low, but English proficiency

within companies with revenue below 50

million USD annually is markedly lower

than for larger firms. This reflects the fact

that improving English proficiency has

been more of an immediate priority for

larger companies, which are more likely to

operate across borders and will also have

greater resources for language training.

However, in a globalized economy, small

companies are increasingly finding that

their best opportunities for expansion

also lie internationally. Small companies

really need to think globally from the

outset, and insufficient English proficiency

may be a key barrier to success. Weaker

English skills will make it more difficult for

businesses to act as suppliers for foreign

multinationals entering their home market

and also to penetrate export markets.

Small companies are therefore likely to

become a major focus for English language

teaching in the coming years. Countries

wishing to support a dynamic small

business sector should provide incentives

and assistance for small companies to

improve their English proficiency.

WORKFORCE ENGLISH BY COMPANY SIZE

20 www.ef.com/epic

30

20

40

50

60

70

80

5B-10B 1B-5B>10B 500M-1B 50M-500M <50M

Workforce English Executive Manager Staff

EF EPI-c Score

Company Annual Turnover in USD

COMPANY SIZEEF English Proficiency Index For Companies

21

WORKFORCE ENGLISH BY INDUSTRY

WIDE GAPS IN ENGLISH PROFICIENCY

There is a wide variation between industry

sectors in terms of average English

proficiency globally, and also between

different countries within the same sector.

Looking at overall sectoral proficiency,

the strongest levels are found in the

consulting, legal, science and biotech,

IT, and engineering sectors (although

even here there are marked variations

between countries). These sectors are

characterized by global interaction and high

levels of education, and rely on access to

information—which at a global level will

usually be in English. Even in these sectors

though, there is still much work to be done

to improve English proficiency to more

effective levels. “For the better-performing

industries, if you look at company averages,

it’s still pretty low—out of 16 EF levels,

companies might be at a level 8 or so,

whereas we consider 10-12 to be the level

where you can actually start to work in

English. So, there is quite a way to go there

as well,” says Peter Burman, President of

EF Corporate Solutions.

Lower value-added sectors such as food,

beverages and tobacco, construction,

and manufacturing have lower levels of

English proficiency. Such sectors are often

more domestically-oriented. Defense

and security is the lowest-scoring sector;

here the average is dragged down by very

low scores in some countries with more

isolated militaries, such as Venezuela. NATO

members, by contrast, typically have higher

proficiency, reflecting greater international

collaboration.

Travel and tourism fares surprisingly poorly.

Despite its global orientation, it ranks only

10th out of 22 industries. This suggests

that many countries wishing to benefit fully

from strong global growth in tourism in the

coming years will need to improve standards

of English in this sector.

Tetra Pak, a multinational food packaging

and processing company, has adopted

English as its international language.

“Tetra Pak operates in 170 countries

around the world, and has more than

24,000 employees. With such a diverse

international base, we decided that

English would be our official language for

international communication,” says Carlos

Gonzalez Leal, Training and Development

Co-ordinator at Tetra Pak Central and

South America (CSA). “So it is very

important for our employees at all levels to

be proficient in English. It’s not just good

for our business as a whole, but also for

their own career prospects.”

The company uses English for

communications globally, and its main

systems have been developed in English.

“So we are using it not just for international

communications, but also on a day-to-day

basis,” says Gonzalez Leal. Tetra Pak’s

use of English within CSA has also been

driven by the need to compete for the

business of many large multinational

companies setting up factories and other

operations there.

Moreover, as their clients group in

countries for management purposes in

order to gain efficiencies, more decisions

are taken at a cluster level, where a

headquarters in one country is managing

a number of countries in a region. For

this reason, Tetra Pak has adjusted its

structure and is looking to engage with

clients at that same cluster level—it now

manages the whole of South America from

Brazil. Spanish training is also provided

for Managers who have direct reports

from Spanish-speaking countries, “but

English represents the vast majority of our

language training,” says Gonzalez Leal.

Finding people with the right level of

English is not easy. Graduates from public

universities are not required to have

mastered English. Although English is

more common in private colleges, the main

impetus for improving workforce English

are the Brazilians who are aware of the

need to learn the language and who are

taking private language courses, including

overseas training.

In terms of finding people with the

language skills required by Tetra Pak, “it

is easier for management positions, but

for certain technical areas it is very

difficult,” says Gonzalez Leal. The

company’s solution has been to develop

the talent it needs internally, rather

than trying to find people with the right

combination of technical skills and

English externally. Currently around 9%

of CSA employees are in its English

training program.

As the importance of English grows, the

company is investing more and more

in English language training every year.

The challenge, says Gonzalez Leal, is to

maximize the return on that investment,

and to ensure that the money is being

well-spent. In light of this, one of their

priorities is to expand the amount of

online learning they offer to complement

classroom learning, as this makes it

easier to track results and, therefore,

return on investment.

COMPANY SPOTLIGHT: TETRA PAK IN CENTRAL AND SOUTH AMERICA (CSA)

22 www.ef.com/epic

Consulting

Legal

Science & Biotech

Information Technology

Engineering

Advertising, Marketing & Public Relations

HR, Admin & Management

Media, Sports & Entertainment

Education

Travel and Tourism

Accounting, Banking & Finance

Retail

Health & Pharmaceuticals

Aviation

Logistics

Mining & Energy

Public Sector

Automotive

Manufacturing

Construction

Food, Beverage & Tobacco

Defense & Security

20 5030 40 60 70 80EF EPI-c Score

INDUSTRY ENGLISH SCORES

23


CONSULTING IS A GLOBAL BUSINESS In a globalized economy, consultancy firms frequently work with clients on projects that span multiple markets. The sector relies on excellent communication internally within companies and externally between companies and clients, and where companies communicate across borders English is key for this. Consultancy relies on knowledge, and in the global economy, knowledge is often accessed in English. It increasingly relies on technology solutions, and English is the language of technology. Consultancy firms rely on being able to attract and retain top talent, and investing in their English skills is a major draw.

There is a clear divide between developed economies, with above-average levels of English proficiency for this sector, and most emerging markets, with below-average proficiency. North European countries dominate the leader-board for English proficiency here, with the Netherlands and Sweden on top. Consulting sectors in emerging economies such as Mexico, Turkey, and Vietnam perform poorly, and will struggle to compete globally unless they improve their English proficiency.

CONSULTING

INDUSTRY SPOTLIGHT

24 www.ef.com/epic

Netherlands

Sweden

Indonesia

Norway

Belgium

Algeria

Denmark

Finland

Switzerland

Spain

Poland

Taiwan

South Korea

Japan

Germany

Czech Republic

France

Italy

Argentina

China

Colombia

Brazil

Venezuela

Russia

Turkey

Chile

Costa Rica

Vietnam

Mexico

Panama

Saudi Arabia

WORKFORCE ENGLISH BY INDUSTRYCONSULTING

INDUSTRY AVERAGE

20 5030 40 60 70 80EF EPI-c Score


25

INFORMATION TECHNOLOGY

IN IT, THE LEADING PLAYERS ARE OPERATING GLOBALLY They rely on huge networks of supplier partners, and competing for customers in a global marketplace for IT solutions. IT innovation is also global: in a rapidly evolving sector, it is vital for companies to stay ahead of trends, and ideas for innovation are generated and shared online, mostly in English. IT servicing is global too: IT companies, as with other sectors, are investing in global centers for customer service. In this context, English is a vital tool for global communication for the IT industry.

Levels of English proficiency vary widely between countries. There is no clear trend according to level of economic development: Indonesia and Vietnam are both placed in the top ten, for example. Lower-wage countries where English proficiency in IT is strong will be well-placed to take advantage of the trend towards global outsourcing of IT services. For some others, such as Russia, weak English proficiency will be an obstacle to attracting investment, despite a strong base of technical skills.

INDUSTRY SPOTLIGHT

26 www.ef.com/epic

Switzerland

Vietnam

Denmark

Costa Rica

Poland

Taiwan

Finland

Indonesia

South Korea

Belgium

Japan

Argentina

Russia

Spain

Czech Republic

Turkey

Italy

Germany

France

Sweden

China

Brazil

Mexico

Netherlands

Colombia

Chile

Saudi Arabia

Norway

Algeria

WORKFORCE ENGLISH BY INDUSTRYINFORMATION TECHNOLOGY

20 5030 40 60 70 80

INDUSTRY AVERAGE

EF EPI-c Score


27

IN ENGINEERING, PRODUCT DEVELOPMENT AND TRANSFER OF KNOWLEDGE ARE KEY Both increasingly take place across borders, which requires a strong command of English. For reasons of efficiency, training and technical support typically have to be in English. In a highly collaborative industry, engineering firms must use both formal and informal networks to promote co-operation both within the company and with clients whose operations will often be global in scope—again, proficiency in English is vital.

Strong North European countries set the standard. North European countries top the list for English proficiency, reflecting the fact that technical education in these countries includes a strong English language component. Emerging markets, especially in Latin America, lag in this industry, pointing to a need to do more to integrate English into study.

ENGINEERING

INDUSTRY SPOTLIGHT

28 www.ef.com/epicwww.ef.com/epic

Sweden

Poland

Switzerland

Denmark

Finland

Netherlands

Norway

Germany

Spain

Costa Rica

Italy

Japan

France

South Korea

China

Taiwan

Chile

Argentina

Czech Republic

Belgium

Mexico

Saudi Arabia

Russia

Vietnam

Brazil

Venezuela

Turkey

Colombia

WORKFORCE ENGLISH BY INDUSTRYENGINEERING

20 5030 40 60 70

INDUSTRY AVERAGE

80EF EPI-c Score


29

ACCOUNTING, BANKING & FINANCE

IN ACCOUNTING, BANKING, AND FINANCE, THE OPERATING ENVIRONMENT IS HIGHLY INTERNATIONAL Companies require English for a range of reasons. First, they must ensure compliance with regulation, which at an international level is usually formulated in English (e.g., Basel III). Second, in an industry where growth is driven by innovation, companies must look abroad for innovative ideas, and a lack of workforce English skills would mean global trends are not picked up in time. Third, the need to boost efficiency has meant that companies are making greater use of shared service infrastructure, with support functions such as accounting and even some customer services concentrated in certain countries—English is needed to manage these operational efficiencies.

Fourth, enhancing the digital customer experience is also a priority for finance firms, and only organizations with English speaking employees will be able to stay at the forefront of digital trends. Finally, in a world of mobile capital, English is needed to engage with international clients across all countries.

North European countries again top the list. Significantly, there is a gap between aspiration and reality for some countries. Some countries that have plans to develop global financial centers—notably China, Russia, and Turkey—perform poorly in this sector in English proficiency, which will be a major barrier to their ambitions.

INDUSTRY SPOTLIGHT

30 www.ef.com/epic

Netherlands

Denmark

Sweden

Norway

Argentina

Finland

Belgium

Germany

Uruguay

France

Switzerland

Indonesia

Poland

Czech Republic

Taiwan

Italy

South Korea

Saudi Arabia

China

Spain

Turkey

Venezuela

Japan

Vietnam

Chile

Mexico

Brazil

Algeria

Russia

Colombia

Costa Rica

Panama

WORKFORCE ENGLISH BY INDUSTRYACCOUNTING, BANKING & FINANCE

20 5030 40 60 70 80

INDUSTRY AVERAGE

EF EPI-c Score


31

HEALTHCARE & PHARMACEUTICALS

PHARMACEUTICAL COMPANIES HAVE BECOME TRULY GLOBAL They conduct R&D in certain countries, manufacture in others, and use a global supply chain, distribution, and sales function to operate everywhere. Both pharmaceutical companies and healthcare providers rely on sharing of knowledge globally, including research, information on developments in diseases and epidemics, and instruction and training on new products and technologies. Over 90% of research and global conferences in the sector are in English. Finally, as global players, pharmaceutical companies face huge risks in terms of reputation and compliance; organization-wide communication in English helps them to detect potential risks in different divisions and markets early.

For all of these reasons, effective global communication in English is vital. However, some large European countries underperform. Healthcare sectors in France and Italy, although well-funded, are below average in English proficiency, limiting their ability to benefit fully from global scientific breakthroughs and best practice. Emerging markets also generally lag in this industry. Sweden and Argentina top the rankings.

INDUSTRY SPOTLIGHT

32 www.ef.com/epic

Sweden

Argentina

Norway

Netherlands

Germany

Finland

Japan

Switzerland

Spain

Brazil

China

Vietnam

Venezuela

France

Russia

Mexico

Poland

Italy

Czech Republic

Taiwan

Chile

Panama

Denmark

South Korea

Turkey

Colombia

Saudi Arabia

Algeria

WORKFORCE ENGLISH BY INDUSTRYHEALTHCARE & PHARMACEUTICALS

20 5030 40 60 70 80

INDUSTRY AVERAGE

EF EPI-c Score


33

LARGE MANUFACTURERS RUN COMPLEX GLOBAL OPERATIONS AND SUPPLY CHAINS Even small manufacturers often produce goods for export or act as suppliers to global companies. The sector is also increasingly global in terms of mobility of resources, people, and knowledge. Innovation is vital, and knowledge comes from all around the world. Service quality is also increasingly important, and strong communication skills internally and externally across multiple markets are needed to support this. In all of these respects, proficiency in English should be a key priority for companies in manufacturing.

North Europeans again lead in English proficiency in this sector, with Sweden, Denmark, and Norway topping the rankings. However, China, South Korea, and Taiwan, which are the Asian global manufacturing powerhouses, all perform relatively well. This suggests that global manufacturing reach goes hand-in-hand with relatively good levels of English proficiency.

MANUFACTURING

INDUSTRY SPOTLIGHT

34 www.ef.com/epic

Sweden

Denmark

Norway

Spain

Netherlands

Switzerland

South Korea

Turkey

Finland

Germany

China

Argentina

Taiwan

France

Czech Republic

Italy

Vietnam

Japan

Poland

Chile

Mexico

Brazil

Venezuela

Colombia

Russia

Saudi Arabia

Belgium

WORKFORCE ENGLISH BY INDUSTRYMANUFACTURING

20 5030 40 60 70 80

INDUSTRY AVERAGE

EF EPI-c Score


35

Progress is needed across almost all countries and

sectors for companies to be able to take full advantage

of English as a global language for business. Long-

term competitiveness comes from organizations’ ability

to innovate in all aspects of their business. Innovation

comes from a corporate culture of creativity, and that in

turn comes from increased cross-border collaboration

and greater communication. No wonder that the world’s

leading businesses and organizations now view English

as so strategically important.

For those countries whose English proficiency is low,

either overall or in certain industry sectors, there is

now a very a strong imperative to improve levels of

English. For those companies that lack proficient

English levels in their workforce, any market leadership

that they may have will not be with them for long, as

they will increasingly find themselves competitively

disadvantaged. There are signs of progress in improving

workforce English proficiency, but it is slow. Companies

need to do more, and governments can help.

RECOMMENDATIONS FOR COMPANIES

A number of recommendations can be made for

companies to improve English proficiency:

• Establish clear requirements for English proficiency

and link them to promotion. Companies already do this

with a range of other competencies, but have been slow

to do the same with English. They need to make it very

clear in personal development dialogues with employees

that communication is important and that English is

going to be key for their continued development within

the organization. Companies need to link a language

level to a job category, and link that target level to a

business need. That way it will be clear to employees

that in order for them to be effective at their job, they

need to be able to communicate at a certain level—

otherwise they cannot take higher-level roles within

the company.

• Make sure programs are cost-effective. At a time

of considerable cost-pressure for companies, it is

important to be able to manage English teaching

programs effectively so as to be able to demonstrate

return on investment. Large multinational companies

may be spending tens of millions of dollars annually

on English language training. Companies will need to

continue to increase the resources that they dedicate

to improving English proficiency, but also to become

better at getting value from those resources. That

means measuring programs effectively to ensure a

healthy return on investment, a benefit offered by online

learning solutions.

• Manage English training as a change program.

Increasing the use of English in a company can be a

difficult, disconcerting process for many staff, and has

to be managed as carefully as any other major program

of change would be. Moreover, English language

training is a long-term process—to become fluent from

a complete beginner can take three to five years—which

means that employees need to be kept engaged and

motivated. A company may have excellent teachers

and technology at their disposal, but that will count for

nothing if it is not wrapped into a cohesive program that

engages people and keeps them motivated, excited, and

progressing. Companies should think of English training

in terms of a change program and think about how to

engage people in that program. Having an environment

where people feel comfortable making mistakes is very

important, as language learning inevitably involves a lot

of error.

• Offer flexible, personalized learning solutions. One

key requirement for a successful program is flexibility.

In a globalized economy, employees often face intensive

travel schedules, especially at senior level. That puts a

premium on tailored solutions. A personalized learning

experience is also extremely important for motivation.

Where possible, placements in English-speaking

countries can make a huge difference, although that is

clearly not an option in the vast majority of cases.

CONCLUSIONS AND RECOMMENDATIONS

36 www.ef.com/epic

RECOMMENDATIONS FOR GOVERNMENTS

The key role for governments is to make sure that

the teaching of English in schools is widespread

and effective, but they can also provide support

and incentives for businesses to undertake

language training:

• Ensure that English is fully incorporated into the

school curriculum from an early age. “If countries

want to engage further, then it’s a matter of putting

it in the school curriculum earlier for everyone,” says

Professor Peiperl. Mandatory English exams for high-

school leavers would also help to raise standards. “The

high school quality level, at least in Brazil, is too low,

to be honest, in comparison with countries in Europe.

If English were a requirement, at least an intermediate

level, before people finish high school, that would be a

real jump,” says Gonzalez Leal.

• Encourage students in higher education to spend

time in English-speaking countries. Periods of study

abroad, for example, through placements or exchanges,

are useful not just for improving English but also for

developing the personal and social skills needed to

flourish in a globalized economy. For example, the

Spanish government has run a large initiative in

recent years providing funds to university students to

study abroad.

• Provide incentives for companies to undertake

English training. Such training is, after all, a long-term

investment in the English proficiency of the national

workforce, as it is a skill that employees will retain

even after they move on from the company. France for

example has a governmental initiative where employers

are legally obliged to provide a certain monetary

amount of training to their employees, of which the

government will pay half the cost—this is often used

for language training. Alternatively, governments can

offer tax incentives for language training. “In Chile you

can reduce your tax base if you demonstrate that you

spent money on training—and that includes language

training—so that supports companies in improving

English,” says Gonzalez Leal.

As we move forward into an increasingly borderless

business world, it will become ever more important

for companies, irrespective of size, to think about how

they are going to compete in a globalized economy.

That means, at least in part, considering how they will

communicate and collaborate across borders. With

English now firmly established as the global language

for business, proficiency in it will be crucial.


37

*CEFR refers to the Common European Framework of Reference for Languages: Learning, Teaching, Assessment (abbreviated as CEFR), a guideline used to describe achievements of learners of foreign languages. Note: all definitions refer to the highest level of proficiency within that band. Students at the bottom of a band will not be able to perform all the actions described for their band, but will have mastered those in the bands below.

WORKPLACE DEFINITIONS OF ENGLISH COMPETENCY

Upper Advanced

Can use a high level of English in discussions, communications, and presentations. Can talk

about and understand complex or sensitive issues within different forums. Can understand

almost everything when hearing English at native speed, including colloquial references. Can

understand high-level documents, correspondence, and reports, including the finer points of

complex texts. Can write documents on any subject with high-level vocabulary, expression,

and accuracy.

Advanced

Can use English reasonably effectively in relationship-forming internally and with customers.

Can contribute effectively to meetings and seminars within own area of work and keep up a con-

versation with a good degree of fluency, coping with abstract expressions. Can understand most

English when spoken at native speed. Can read quickly enough in order to understand general

meaning. Can avoid ambiguity when writing professional correspondence.

Upper Intermediate

Can use English sufficiently to increase knowledge and skills and to understand customer

needs. Can talk on a familiar topic and keep up a conversation on a fairly wide range of areas.

Can understand the general message when hearing English at native speed. Can read and un-

derstand relevant information, and understand detailed instructions or advice. Can make notes

while someone is talking and write an email including non-standard requests.

Intermediate

Can use English for basic communication with customers and for sharing information with

colleagues. Can express opinions or facts on abstract or cultural matters in a limited way. Can

understand oral instructions and routine information and the general meaning of non-routine

information within a familiar area. Can read and understand the basic message of most texts.

Can write correspondence and make notes on familiar or predictable matters.

Elementary

Can use English for very basic communication internally. Can express simple opinions, facts,

or requirements in a familiar context. Can understand straightforward oral information within a

familiar area. Can read and understand basic communications and other written materials of a

non-complex nature but there may be gaps in understanding. Can write short simple sentences

covering a limited range of topics.

Beginner

Can express basic everyday facts. Can understand very simple oral information when spoken to

directly and at a slow pace. Can read and understand very basic notices, instructions, or other

information although there may be gaps in understanding. Can write very simple sentences

including stating times, dates, and places.

C2

CEFR LEVEL

C1

B2

B1

A2

94-100

EF EPI-c SCORES CAN-DO STATEMENTS

79-93

63-78

49-62

34-48

0-33A1

APPENDIX

38 www.ef.com/epic

EF EDUCATION FIRST

EF Education First (www.ef.com) is an

international education company that focuses

on language, academics, and cultural

experience. Founded in 1965, EF's mission

is "opening the world through education."

With 500 schools and offices in over 50

countries, EF is the Official Language Training

Supplier of the Rio 2016 Summer Olympics.

The EF English Proficiency Index (EF EPI)

and the EF English Proficiency Index for

Companies (EF EPI-c) are published by EF

Learning Labs, the research and innovation

division of EF Education First.

39

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