Having worked in the frontier markets for close to 20 years and throughout my career multinational companies have been considered as the ‘go-to’ place for top talent. Local companies may not have been the employers of choice all this while, but times have changed.

Over the years multinationals have lost their star power. It happened 20 years ago in India, 10 years ago in China, 5 years ago in Vietnam and now it’s happening in Pakistan (where I am currently based and run my own consulting firm).

What happened to these celebrated employers that allowed local companies to catch up?

The Shifting Tides for Multinationals

Multinationals provided you with great learning opportunities, exposure to global practices, vibrant work environment and bosses that seemed to care. To add to it all, compensation was at the top of the market. It provided the elusive opportunity to escape the country you were born in and test yourself in the international expat market.

Above all else, working for a multinational gave you a badge. An amount of respect from friends, colleagues, grandma’s and kids that local companies just couldn’t match.

But in recent years that’s changed. Multinationals don’t have that edge over local companies anymore. Whether it was a result of global economic crisis, increased governance, strategy reassessments, or even centralization most multinationals have seen their influence, business and attraction power diminish. No longer are multinationals the go-to place for talent.

The New Look of Local Companies

In Pakistan, under the zeal of newly entering second and third generation family members, local companies have enthusiastically stepped into the void created by multinationals. They’ve been investing heavily in growth industries, ploughing back dividends, investing into building companies and willing to pay top dollars for top talent. Today’s top talent knows that to exponentially grow their career, innovate, drive results and have the autonomy to deliver then local companies are the place to be.

And it’s not just about growing businesses. Local companies are now at the forefront of:

• building sustainable companies,
• creating the right work-environment,
• experimenting with innovative policies and processes,
• driving relevant organizational development, and
• investing generously by bringing the best brains to help them do it.
• You could go as far as saying that while multinationals are playing it safe with governance, local companies are taking more risks to be innovative.

Sure, the charm of working at a multinational may still be alluring to some, but local companies are becoming more and more attractive to top talent. And people are earning respect being associated with these local companies as well.

It’s exciting times to do business in Pakistan. Finally local companies and businesses are gaining the upper hand and creating work places that the best talent want to be part of.

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