Multinational Firm Transferability Deficit
RCTReview
Foreign work experience acquired at globally recognized multinational corporations yields virtually no reduction in the foreign experience callback penalty when applying for host-country positions compared to foreign experience at local foreign firms.
Picture this
Think of trying to use an electrical power adapter bought at a major international chain store in a foreign country. Even if the store brand is famous globally, if the metal prongs do not match the local wall socket configuration, the outlet still will not accept the plug.
What the evidence says
Resumes listing foreign job experience at multinational firms received a callback rate of 6.8%, compared to 7.1% for resumes listing local foreign company names, showing no statistically significant benefit from brand recognition (p > 0.10).
- Who was studied
- N = 12,910 resumes submitted to 3,225 job postings across 20 occupation categories in Toronto and Montreal, Canada.
- How
- Randomized field experiment varying company location (e.g., ABC Inc., Toronto versus ABC Inc., Mumbai) while holding company brand and job descriptions identical across resumes.
What to do
Discontinue relying on multinational employer branding as a primary mechanism for conveying international skill transferability to domestic hiring managers.
From the source
"The callback rates for Types 3 and 4 resumes listing experience with international companies (that could instead be used for resumes with Canadian experience) are 0.071 and 0.068, respectively. The callback rates for Types 3 and 4 resumes listing local foreign company names are 0.099 and 0.040, respectively."
2f1d6051-ac22-4384-a076-c1bbe1ab4f8b-Why Do Skilled Immigrants Struggle in the Labor Market-.pdf