As more economies in the world are opening up for trade, the demand for fluency in English is growing. Multinational companies prefer to hire employees with high English proficiency to meet their global objectives. They conclude that low English proficiency leads to:
- Loss of clients
- Dissatisfied customers
- Lack of trust in customers
- Risk of errors and conflicts
As language is the basis of every interaction, low English proficiency ultimately causes companies loss of sales, damaged reputation, decreased productivity, and dissatisfied employees. We will now examine the need for English speaking professionals in multinational companies in a few core countries.
English proficiency: Low
China is a global market place that is evolving to be an international platform for businesses. As more and more multinational companies base themselves in China, the need for English speaking is growing among Chinese professionals.
Demand for English-proficient employees has increased to 78%, whereas 62% of the employers encourage English-language proficiency in their employees[i]. International businesses interacting with associates and customers in other countries risk facing losses due to language differences.
Large Chinese multinationals such as Huawei Technologies, which has 170,000 employees across the globe, cannot operate internationally without English language proficiency in employees. There are an estimated 300 million English learners in China today,  which makes it one of the largest markets of English learners in the world, and a lucrative choice if you are considering opening a New Horizons English Language Franchise.
English proficiency: Moderate
This country of 50.22 million (as of 2013) is a rapidly growing market for English learning due to employment opportunities and job-performance evaluation. South Korea houses some of the top multinational companies, including Samsung Electronics, Hyundai Motors, SK Holdings, and POSCO. Hyundai Motors, the world’s fifth largest car maker with a market capital of $49.8 billion has operations worldwide. Such companies understand that English proficiency is an important requirement in a global marketplace.
According to a survey, 87% companies believe that fluency in English for employees is important [i.] As more modes of communication are opening up for businesses such as calls over the Internet and phone apps, expertise in English is becoming indispensable.
English proficiency: Low
Spain has a number of major multinational companies, including Repsol Mercadona, and Telefonica. Madrid and Barcelona are the biggest job markets with high demand for English.
It is estimated that Spanish is the native language of more than 247 million people. However, English is the dominant international language of commerce. Repsol S.A., for example, is based in Madrid, Spain, but has employees in more than 40 countries. Any company having a vast network of business requires employees that can interact across continents in a common language. Since the English proficiency is low, there is a huge market that can be tapped into when it comes to opening an English Language training franchise.
Also, the findings of a survey revealed that the majority of HR professionals of companies said their company provides formal English-speaking training to their employees . More and more companies are either hiring English speaking employees or training employees in English speaking to fit them in their global businesses.
English proficiency: Very Low
Vietnam is a popular base for multinationals in Asia. To make their youth more capable of employment, the Vietnam education ministry decided to spend 80% of their $450 million budget on training English teachers .
Vietnam is a more open market, aiming to integrate itself into the global economic system. Samsung Electronics Vietnam is expanding to build a smartphone plant in Vietnam, investing $2 billion in it. Expansion is the key for global companies, and the role of English speaking has become an important tool to reach that goal.
English proficiency: Moderate
Japan is home to big global companies including Toyota Motors, NTT, SoftBank, Honda Motor, Nissan Motor, Mitsubishi Corp and Hitachi. Toyota Motors, headquartered in Toyota, Aichi, Japan, alone has more than 338,875 employees worldwide (as of 2014). Along with manufacturing, telecommunications is also a strong business in Japan.
To increase their job prospects, more Japanese are learning English than ever before. As an economic giant, Japan is adapting itself quickly to global demands.
The world is becoming more interconnected through advancement in technology, and the need for a common language is growing. English, as the language of the Internet, commerce and communication is seen as the first step towards developing a global personality for employees and the brand. Click here for Part 2 of this article, where we discuss more countries that have an increasing number of multinational corporates with a need for improved English proficiency. Alternatively, if you would like to learn more about the New Horizons English franchise don’t hesitate to contact us or review our website to download our franchise prospectus.
[i] https://25a76831aad64926e48c-b09cb5f26159b82f24a2d50560390266.r10.cf2.rackcdn.com/WEM_TOEIC_IpsosPublicAffairs_Whitepaper.pdf (pg10)
7 https://www.toyota-global.com/sustainability/report/sr/pdf/sustainability_report14_fe.pdf Pg 4