Results from the 2025 IMD World Talent Ranking (WTR) indicate that financial security and tangible benefits are the most frequently cited drivers for international relocation, contrasting with the pre-COVID-19 pandemic era, when quality of life, cultural fit, and language ranked higher.
The results, obtained by crunching 31 pieces of data across 69 global economies, come amid geopolitical instability, inflation, and cost-of-living pressures, which are reshaping executives’ willingness to relocate abroad.
“Financial incentives are highest for executives in countries experiencing economic uncertainty or rapid change, and lowest in environments considered to be financially secure or predictable,” said José Caballero, WCC Senior Economist.
Further details on the findings are expanded on in the online report compiled by researchers at the IMD World Competitiveness Center (WCC).
The rankings authors say executives’ change in priorities is the result of a perfect storm of crises – including wars in Europe and the Middle East, an acceleration in inflation, and rising food and energy prices – with pay now being seen as a risk insurance against global uncertainty. “In a world where hybrid leadership is the norm, relocation is being perceived as less of a rite of passage to fast-track careers and increasingly as a burden,” said William Milner, Associate Director of the WCC.
This creates significant challenges for global organizations that depend on skilled leaders capable of maintaining current business performance while simultaneously driving economic growth. The hesitation is equally concerning for the leaders themselves, as international roles provide invaluable exposure to new markets and develop the flexibility and agility essential for driving innovation and creating long-term value.
“As leaders increasingly perceive that the costs of relocating abroad outweigh the anticipated benefits, executive education becomes a critical tool for preparing them to embrace global assignments and positioning them for success in international roles,” said Misiek Piskorski, Professor of Digital Strategy, Analytics and Innovation and Dean of Executive Education.
Talent competitiveness is continuously evolving
Overall, the results of the 2025 IMD Talent Ranking saw Switzerland maintain its first-place position, Luxembourg second, and Iceland third. Switzerland’s decade-long dominance illustrates the effectiveness of the institutional strength, robust education systems, and consistent policy frameworks that it has in place.
However, in today’s context of ever-new technologies and AI, Swiss-based firms are increasingly struggling to find the talent they need compared to how they used to, according to the report’s researchers.
“Even the most stable leading economies are today facing mounting pressures to address structural weaknesses such as gender participation gaps and underrepresentation in STEM fields, which may challenge their future performance,” cautioned Fabian Grimm, WCC Research Specialist.
A changing world order for talent?
The ranking comes amid news that the US jobs market weakened further in August, raising new fears about the health of the world’s largest economy. The US ranked 22nd in the 2025 WTR, proving as stagnant as China in 38th.
Elsewhere in the WTR, the UAE (ninth) made the top 10 for the first time since the ranking started in 2014. Its upward trend signals rapid improvements in talent-focused policies, infrastructure, and international attractiveness.
Singapore (seventh) fell five places. “Singapore is exemplary when it comes to training people on the job,” said Arturo Bris, Director of the WCC. However, one of its major weaknesses this year was its performance in the cost-of-living index. The top ten remains dominated by Europe, which is no surprise for Bris, whose new book, SuperEurope: The Unexpected Hero of the 21st Century, hit shelves this summer. “These economies are mature; they have had several generations to develop their talent systems,” he said.
While geopolitics change, the sustainability of talent pipelines depends perennially on leaving no stone unturned in government leaders’ and executives’ approaches to attracting and retaining both domestic and international talent.
