ef english proficiency index for companies5 about the ef epi-c report methodology this third edition...

EF EPI-c

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EF English Proficiency Index for Companies

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EF EPI-cEF English Proficiency Index for Companies

2016www.ef.com /epic

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EFSETThe EF Standard English Test

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TABLE OF CONTENTS

About the EF EPI-c Report

Executive Summary

A Linguistic Dress Code

Industry Profiles

Accounting, Banking & Finance

Aviation

Consulting & Professional Services

Engineering

Food, Beverage & Tobacco

Health & Pharmaceuticals

Information Technology

Logistics

Manufacturing

Mining & Energy

Telecommunications

Workforce English by Country

Workforce English and Competitiveness

Workforce English by Seniority

Workforce English by Gender

Workforce English by Turnover

Company Spotlights

Conclusions and Recommendations

Workplace Definitions of English Competency

Appendix: Selected References and Acknowledgements

EFSET: Innovation in Language Assessment

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ABOUT THE EF EPI-c REPORT

METHODOLOGY

This third edition of the EF EPI-c uses test

data from more than 510,000 employees of

2,078 companies and governments. These

participants took an English proficiency test

administered by EF Corporate Solutions

between 2013 and 2015 (see page 42 for more

on the EF Standard English Test). Participants

were not enrolled in an English-training

program at the time, and the test results

were not used to determine pay. In our data

set, 40% of test takers work in Europe, 29%

in Asia, 23% in Latin America, and 8% in the

Middle East.

KEY CORRELATIONS

For the first time, we calculated a number

of correlations using the EF EPI-c country

scores and publicly available indicators of

global innovation, government transparency,

and ease of doing business. We also found a

significant correlation between a country's

workforce English levels and its overall adult

English proficiency. All these correlations

indicate clear relationships between English

proficiency and competitiveness.

INDUSTRY PROFILES

While business leaders should track overall

workforce trends in English proficiency

in order to keep abreast of competitive

trends, they will find it especially helpful to

understand the English skills within their

own industries. To that end, this edition of the

EF EPI-c includes proficiency benchmarks

for 16 major industries, from accounting to

telecommunications, with detailed score

breakdowns for individual roles within 11 of

those industries. A number of case studies

exploring the impact of English language

proficiency on corporate competitiveness

complement our quantitative analyses.

The EF English Proficiency Index for Companies (EF EPI-c) is an evaluation of global workforce English skills. This third edition reports on English proficiency levels in 40 countries and 16 industries, and provides business leaders with best practices for improving workforce English in a variety of contexts.

The EF EPI-c is a companion to the EF EPI report, which evaluates average adult English proficiency around the world based on a separate set of test results. Together, these reports provide a comprehensive picture of adult English language ability worldwide. Both reports are available for download at www.ef.com/epic.


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EXECUTIVE SUMMARY

KEY FINDINGS

• An analysis of workforce English by

industry yields some counterintuitive

findings. Specifically, several sectors

with significant international exposure,

such as aviation and logistics, have

surprisingly low English proficiency.

• Workforce English proficiency varies

greatly among the 40 countries studied,

and several regional clusters with

distinct proficiency levels emerge.

Europe accounts for seven of the top 10

countries, while Latin American countries

occupy six of the bottom 10 positions.

• Workforce English skills correlate

positively with indicators of innovation,

transparency, and ease of doing business.

These correlations illustrate how English

shapes the business environment at both

an organizational and national level.

• Women tend to have better English

language skills than men in most

of the countries, industries, and job

functions surveyed. The only exception

is in executive management, where men

slightly outpace women.

• Executives have lower English levels than

the managers they oversee. This pattern

is most likely a result of generational

differences, as English skills tend to be

lower among older adults than among

younger professionals.

• English ability also varies among

companies of different sizes. On

average, firms with a turnover between

10 and 60 billion USD have the highest

proficiency scores. For companies with

turnovers less than 10 billion USD, this

finding highlights the need for language

training in order to expand globally.

For global companies with turnovers

more than 60 billion USD, the finding

points to a language divide between an

internationally mobile elite who speak

English and local employees who can

work only within their own countries.

RECOMMENDATIONS FOR COMPANIES

• Benchmark English proficiency across

the company in order to allocate training

resources more efficiently. The scores

in this report provide helpful points

of comparison.

• Link English training programs to

business objectives with explicit goals.

• Dedicate adequate resources to training.

• Opt for personalized, sector-specific

training rather than generic solutions.

RECOMMENDATIONS FOR GOVERNMENTS

• Implement policies and provide incentives

to encourage English language adoption.

• Ensure English learning opportunities are

available to workers as well as students.

• Invest in teacher training to improve the

quality of language education and effect

long-term change.

The EF EPI-c provides a timely, comprehensive snapshot of global workforce English proficiency.


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A LINGUISTIC DRESS CODE

Does it matter what language you speak

at work? Although many companies have

well-defined dress codes, working hours,

and work ethics, standards of language

in the workplace are often ad hoc and

primarily dictated by individual and social

considerations. This is a missed opportunity.

With more than 1.75 billion people using

English on some level, English is the primary

medium of international exchange in

disciplines ranging from aviation to zoology.

In a 2014 Harvard Business Review article,

Tsedal Neeley and Robert Steven Kaplan

observed that “unrestricted multilingualism

creates inefficiency in even the most

dedicated and talented workforces.

It can lead to friction in cross-border

interactions, lost sales, and a host of other

serious problems that may jeopardize

competitiveness." As business leaders wake

up to this problem, some are establishing

single-language policies on multinational

workforces. The language of choice in such

cases is nearly always English.

BENEFITS OF A CORPORATE

LINGUA FRANCA

Tsedal Neeley, an associate professor of

organizational behavior at Harvard Business

School, identifies three particular benefits

a company would see with the adoption of

English as the corporate language:

• The ability to buy from and sell to a more

diverse range of customers, suppliers, and

business partners.

• Better communication between

geographically dispersed employees.

• Increased aptitude in cross-border

mergers and acquisitions.

Given the budgets usually assigned to these

objectives, business leaders would be wise

to invest in the development of English as

a corporate lingua franca. In the same way

that leaders emphasize dress codes and

work hours to create a specific corporate

environment, they should also set linguistic

standards to strengthen their companies in

the areas outlined above.

OVERCOMING OBSTACLES TO

LANGUAGE REFORM

As many executives have already discovered,

enforcing a corporate language policy is not

easy. One factor that is often overlooked in

corporate English-speaking initiatives is the

potential for top-down linguistic policies to

infringe on the autonomy of local teams.

In this respect, business leaders should

consider how to win employee buy-in for

corporate English language programs. The

metallurgical giant MMK, for example, made

its English training course voluntary, and

the results so far have been an impressive

achievement (see page 36 for more details).

It is easy for companies to underestimate

the amount of work and training required

to get all their employees speaking English,

as well as the significant social and cultural

barriers that need to be addressed. The

benefits that come with establishing a clear

linguistic dress code, however, make such

efforts worthwhile.

IMPLEMENTATION

Business leaders should have a clear

view of the skill gaps of their workforces

and the likely impacts of improved skills.

Understanding both of the above factors and

benchmarking employees' English skills

against international standards, such as the

EF EPI-c industry scores, are the first steps

to successful implementation.

As touched on earlier, top-down approaches

to developing workplace English can

introduce as many problems as they resolve.

In response to these issues, Neeley has

proposed an adoption framework to help

companies deal with employees’ potential

frustration with, or indifference to, English

language training. The framework employs

four strategies:

• Offer opportunities such as overseas

language training and job rotations in order

to help employees develop their existing

skills. Language immersion, in particular,

will help employees improve their English

quickly and enjoyably.

• Provide verbal encouragement. A push

to improve English skills can make

less proficient employees feel that they

may miss employment or promotion

opportunities. As a result, it is important

to use regular verbal encouragement to

remind all employees that the company

believes in their abilities.

• Be positive about English language training

by creating an environment where everyone

is excited to learn more. Neeley notes how

the Japanese firm Rakuten aimed English

training initiatives at middle managers so

they could lead their staff by example.

• Select the right trainers. Most workforces

have a wide range of language skills, and

it is important to contract training vendors

that can provide personalized programs to

suit each individual.


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WORKFORCE ENGLISH PROFICIENCY BY INDUSTRY

Overall, all industries surveyed have ample room for improvement. Even the Consulting and Professional Services industry, which leads all sectors, failed to reach the highest proficiency band. More than half of the 16 industries surveyed fall in the Low or Very Low proficiency bands. The following pages address the significant challenges and opportunities that each sector faces in the increasingly global market.

The industry profiles in this section also show the English levels of various job functions within 11 of the 16 industries surveyed. Looking at English proficiency trends by function allows business leaders to identify the areas of their organizations that would most benefit from English training.

Industry Overall

Consulting & Professional Services

Engineering

Food, Beverage & Tobacco

Accounting, Banking & Finance

Information Technology

Health & Pharmaceuticals

Media, Sports & Entertainment

Automotive

Manufacturing

Telecommunications

Aviation

Mining & Energy

Defense & Security

Education

Public Sector

Logistics

20 5030 40 60 70EF EPI-c Score

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

INDUSTRY PROFILES


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AVIATION

WORKFORCE ENGLISH BY INDUSTRY

Cabin Crew

Administration

Pilot

Transportation/Warehousing

Executive Management

Engineering

Air Traffic Controller

Marketing/PR

Accounting

EF EPI-c Score

IT - Software

Finance/Economics

Legal

Project Management

Accounting

Banking/Financial Services

Administration

Insurance


20 2050 5030 3040 4060 6070 70EF EPI-c Score

Though the accounting, banking, and finance industry has traditionally focused on local markets, the sector is increasingly looking outward and thinking globally. The moderate level of English proficiency across nearly all job categories in the sector, however, will make globalization more difficult.

The highest levels of proficiency in the industry are found among individuals working in IT, finance, and human resources. There is a significant spread of scores (10 points) between the most and least proficient job categories, indicating real potential for company-wide schemes that can create more uniform levels of proficiency that will allow employees in different functions to share knowledge, take advantage of internal training resources, and reduce corporate risk.

English is the mandated medium of communication for the aviation industry, but no function scored above moderate proficiency. The sector as a whole recognizes the importance of effective international communication for maintaining safety standards, especially between air traffic controllers and pilots from different countries. English proficiency also helps airlines operate more efficiently and improve customer satisfaction. As a result, many major airlines are investing in English language training initiatives for their staff, and the proficiency scores below are likely to improve significantly.

ACCOUNTING, BANKING & FINANCE

Human Resources/Recruiting


Very High Proficiency High Proficiency Moderate Proficiency Low Proficiency Very Low ProficiencyVery High Proficiency High Proficiency Moderate Proficiency Low Proficiency Very Low Proficiency

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Consulting Consulting

Project Management IT - Software

Executive Management Project Management

IT - General

Manufacturing

Marketing/PR

Engineering Engineering

Banking/Financial Services

AccountingIT - Software

AdministrationAccounting

ConstructionAdministration

Education/Training

Finance/Economics Executive Management

20 2050 5030 3040 4060 6070 70EF EPI-c Score EF EPI-c Score


International engagement is a vital part of the consulting and professional services industry. The sector ranks highest in English proficiency out of all those surveyed. Within the industry, consultants are the only group in the highest proficiency band, indicating that they have the necessary English skills to navigate more complex, nuanced professional situations.

CONSULTING &PROFESSIONAL SERVICES

ENGINEERING

Like consulting, engineering today is an increasingly global affair, which explains the relatively high English proficiency in a number of job positions in the sector. However, this sector features an extreme variability in English proficiency, with professionals in construction, education, and training roles occupying the low end of the scale.

Traditionally in engineering, vocational skills have been valued more highly than communication skills, but as the workforce becomes more globalized and talent more mobile across borders, this may be set to change.

Human Resources/Recruiting Human Resources/Recruiting


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Marketing/PR Engineering

Consumer Products

Executive ManagementMedical Practitioners

AccountingAdministration

Administration

Healthcare - Administration

Manufacturing

Manufacturing

Executive ManagementSupply Chain/Logistics

Marketing/PRSales

Sales

Accounting

Engineering Pharmaceutical



Sales within the food, beverage, and tobacco industry tend to be locally focused while the supply chain is increasingly a global one. Locally focused staff vastly outnumber those involved on the international side and as a result, the sector's English scores are modest, with more than half of the job categories in the Low or Very Low proficiency bands. Sales staff have the lowest English scores in the sector, which could be a result of the majority having a local remit, but this could cause problems for companies looking to promote internally and expand international business development.

FOOD, BEVERAGE & TOBACCO

HEALTH &PHARMACEUTICALS

The health and pharmaceuticals industry has only a moderate level of English proficiency. Forward-thinking leaders in the sector have an opportunity to boost competitiveness by increasing investment in language training. Given that a large portion of scientific research is published in English, researchers with higher English proficiency would be able to access more international research.




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Executive Management Supply Chain/Logistics

Consulting Executive Management

IT - Software Maritime

IT - Telecommunications

Engineering Administration

IT - Hardware Engineering

Administration Transportation/Warehousing

Accounting Education/Training

Human Resources/Recruiting Accounting

IT - Network IT



English is the language of computing, and English proficiency in the IT sector is fairly high, with a number of job functions falling in the High and Very High proficiency bands. Six of the world’s top 10 IT companies by turnover are American, which imposes a strong selective force toward English speakers in the sector’s talent pool.

The relatively low level of English proficiency in human resources is notable, as it suggests that HR managers may have trouble assessing applicants’ English ability without third-party help.

INFORMATION TECHNOLOGY

LOGISTICS

By nature, the logistics industry works across borders. As a result, it is surprising that English proficiency in the sector is the lowest of the 16 sectors surveyed in the EF EPI-c. All functions but supply chain and logistics fall in the lowest proficiency bands. This finding suggests that there is a major skills gap in the industry, which would present logistics firms with the opportunity to gain a competitive advantage in the global market by investing in English training.




Science Executive Management


Engineering

Supply Chain/Logistics Oil/Gas/Utilities

Marketing/PR Accounting

Education/Training Administration

Sales Manufacturing

Engineering Mining

Administration

Manufacturing

Transportation/Warehousing

Accounting

IT - Software Finance/Economics



The manufacturing sector includes a diverse group of businesses, from fully globalized corporate giants to small cottage industry players. Reflecting this diversity, the sector shows a wide range of EF EPI-c scores across job functions, with a 21-point gap between workers in transportation and warehousing and those in scientific research roles. Notably, executive management has the second-highest level of proficiency in the sector, perhaps reflecting the growing need for internationalization across the industry.

MANUFACTURING

The mining and energy industry shows a stratified structure when it comes to English proficiency. While shop floor activities such as extraction and manufacturing are characterized by elementary English skills, employees in back-office functions have a moderate command of English.

Executive management has the strongest English proficiency, which reflects the requirement for executives to report regularly to global stakeholders. It remains to be seen, however, whether more opportunities for job mobility will stimulate an increase in English language skills further down the chain of command.


MINING & ENERGY




Education/Training

Project Management

IT - Telecommunications

Marketing/PR


IT - Hardware

IT - Network

Accounting

Administration

Customer Service/ Call Center

Engineering

IT - Software

20 5030 40 60 70EF EPI-c Score


The telecommunications industry demands constant innovation. In order to learn from the latest research and practices around the world, those in the sector’s technical and innovative fields require a strong grasp of the English language. Despite the clear competitive advantages of higher English proficiency for firms in the industry, telecom companies have invested little in English language training for many of the sector's job functions.

Because this poor proficiency hampers firms’ ability to innovate, telecom business leaders should address it as a serious problem. The one silver lining of our findings, however, is that those in the sector responsible for education and training scored highest, making them well suited to face the challenges ahead.

TELECOMMUNICATIONS

Very High Proficiency High Proficiency Moderate Proficiency Low Proficiency Very Low Proficiency




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

Finland 69.18Norway 71.27Netherlands 73.83 Denmark 72.04 Sweden 71.71

Professionals speak at least some English

in all of the countries surveyed. However,

global workforce English levels are generally

low, and not a single country surveyed has

workforce English proficiency that qualifies

as "advanced"—level C1 or C2—on the

Common European Framework of Reference

for Languages (CEFR).

Our latest results confirm a trend already

visible in the last edition of this report:

despite a near universal recognition of

English as the international language of

business, wide gaps in workforce English

proficiency persist between countries. The

average score of all respondents was 52.56

on our 100-point scale, but national scores

ranged from 73.83 in the Netherlands to

33.64 in Iraq. Our findings display a clear

regional pattern. Seven of the 10 most

proficient countries are in Europe, and six of

the 10 least proficient are in Latin America.

HIGHEST PROFICIENCY WORKFORCES

The 12 countries in the highest EF EPI-c

proficiency band all have workforces that can

operate in English. In these countries, most

employees can talk at length about familiar

topics and converse effectively about a wide

range of subjects as long as the discussion

does not become overly nuanced or

technical. Most of these countries, including

the top five, are European.

The two Asian countries in the Very

High proficiency band, Malaysia and the

Philippines, have historical ties with the

U.K. and the U.S., respectively. These ties

have strongly influenced their education

systems and elevated the role of English in

society. No other countries surveyed in Asia

have comparable English proficiency levels.

The United Arab Emirates, the only country

surveyed in the Middle East with operational

proficiency, has a unique English-driven

business atmosphere in its regional hub

Dubai. Argentina is the only country in Latin

America with a functional level of English in

the workplace.

INTERMEDIATE PROFICIENCY

WORKFORCES

Although all the countries in our High,

Moderate, and Low proficiency bands

would be considered “intermediate” on

the CEFR, the EF EPI-c's more fine-

grained metrics make it possible to

distinguish subtler patterns. The majority

of countries surveyed for this report

have an intermediate level of English

in the workforce, meaning that people

can generally use English for basic

communication with customers and

colleagues. However, they lack the

English skills for more nuanced or

technical communication.

In the High proficiency band, European

countries continue to dominate, with just

two countries—India and South Korea—

representing Asia. The majority of Latin

American countries, on the other hand,

occupy the Low proficiency band. The

Moderate proficiency band has the greatest

geographic diversity.

Among the BRIC countries, Brazil,

Russia, and China have Moderate and

Low proficiency, while India—in the High

proficiency band—is slightly ahead of the

rest. All four BRIC countries have expanded

English language education, reflecting the

growing importance of international trade

for these countries.

LOWEST PROFICIENCY WORKFORCES

Only six countries sampled have very low

English proficiency, although a survey of all

the world's countries would certainly have

picked up many more. In these six countries,

an average employee can at best use English

for basic communication and can express

simple opinions, facts, or requirements

in a familiar context. Because workers at

this proficiency level have gaps in their

understanding and cannot engage in

more complicated conversations, they

are poorly equipped for the demands of

international business.

For countries in the lowest proficiency

band, a general lack of English skills

hinders their ability to attract foreign

investment and cultivate business in

globally focused industries.

Slovakia 60.99 Germany 60.16Argentina 63.18Estonia 64.27 Romania 61.80

Italy 58.61India 58.88Switzerland 59.73Spain 59.98 Czech Rep. 59.40

Kazakhstan 53.90Taiwan 54.09Hungary 57.54South Korea 57.57 France 54.75

Saudi Arabia 37.97 Iraq 33.64Costa Rica 43.96Venezuela 45.33 Thailand 39.62

Colombia 47.64Brazil 48.75Russia 49.57Chile 49.94 Peru 49.32

Poland 65.26 Malaysia 64.43U.A.E. 66.10Philippines 67.38 Portugal 65.37

Mexico 50.12Turkey 51.68Ukraine 52.90China 53.07 Japan 52.76

WORKFORCE ENGLISH BY COUNTRY


WORKFORCE ENGLISH AND COMPETITIVENESS

In this edition of the EF EPI-c, we found

strong correlations between average

workforce English proficiency and

the English levels of the overall adult

population. We also examined the

correlation between workforce English

levels and three important business and

financial indicators: global innovation,

government transparency, and ease of

doing business.

WORKFORCE VS. ADULT POPULATION

There is a strong correlation between

average workforce English levels and overall

adult English levels (Graph A). On the whole,

English proficiency scores for the workforce

of a country are predictably higher than

those of the general population, suggesting

that employers actively select for and invest

in language skills.

The value of English in the workplace is

clear. EF's 2015 English Margin report

found that 88% of customers would be

willing to pay a premium to companies

whose employees have enhanced English

skills, while 81% of companies would

consider discarding supply chain partners

whose workforces have low English

proficiency. The research also highlighted

the growing value of employees with full

professional English language proficiency;

one such employee is estimated to be

worth 128,000 USD in top-line sales

increases and bottom-line costs savings

from time and productivity gains.

GLOBAL INNOVATION

EF EPI-c country scores correlate strongly

with global innovation index scores (Graph

B). This reflects the importance of English

in research and development. English skills

allow innovators to read primary scientific

research, collaborate internationally, bring

in talent from overseas, and participate in

global conferences.

TRANSPARENCY

There is a correlation between EF EPI-c

scores and perceived transparency at a

governmental level (Graph C). Countries with

high EF EPI-c scores, such as Denmark,

the Netherlands, and Sweden, are most

likely to be perceived as having low levels of

corruption. Strong workforce English and a

high level of transparency create a friendly

business environment that attracts more

international partners and foreign investment.

EASE OF DOING BUSINESS

Strong workforce English is also related

to ease of doing business (Graph D), as

measured by World Bank's assessment of

how conducive regulatory environments

are for starting and operating a business.

Similar to what we found with the perceived

transparency data, higher English proficiency

not only helps foster trust in a globalized

economy, but also plays a role in most

international business interactions. Ease of Doing Business Index

7535 40 45 50 7060 6555Hard

Easy

R=0.53

EF EPI-c Score

Source: World Bank, 2015

GRAPH D: WORKFORCE ENGLISH AND EASE OF DOING BUSINESS

Corruption Perceptions Index

7535 40 45 50 7060 65550

20

40

60

80

100

R=0.54

EF EPI-c Score

Source: Transparency International, 2015

GRAPH C: WORKFORCE ENGLISH AND GOVERNMENT TRANSPARENCY

EF EPI Score

7535 40 45 50 7060 655535

40

45

50

55

60

65

70

75

R=0.91

EF EPI-c Score

GRAPH A: WORKFORCE ENGLISH AND ADULT ENGLISH

Global Innovation Index

7535 40 45 50 7060 655520

30

40

50

60

70

80

R=0.53

EF EPI-c Score

Source: Cornell University, INSEAD, and the World Intellectual Property Organization, 2015

GRAPH B: WORKFORCE ENGLISH AND INNOVATION


Executive Manager Staff

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MEDIA, SPORTS & ENTERTAINMENT

HEALTH & PHARMACEUTICALS


LOGISTICS MANUFACTURING MINING & ENERGY

PUBLIC SECTOR TELE-COMMUNICATIONS

30

60

40

50

70

EF EPI-c Score


AVIATION EDUCATION ENGINEERING FOOD, BEVERAGE & TOBACCO

CONSULTING & PROFESSIONAL

SERVICES

DEFENSE& SECURITY

AUTOMOTIVE

30

20

60

40

50

70

EF EPI-c Score

SENIORITY AND INDUSTRY

In 12 of the 16 industries surveyed, managers have higher levels of English than staff and executives. Defense and security is the

only industry in which executives score the highest, with scores around 10 points higher than those of managers.

EXECUTIVES LAG BEHIND STAFF

Executives struggle with English more

than any other seniority group surveyed.

With the exception of the defense and

security industry, executives have a lower

level of English than the managers they

oversee. When looking at the overall

average, even staff members, the most

junior group surveyed, outscore executives.

In five industries, executive English falls

in the lowest proficiency band. But even

in other industries surveyed, the average

level of English among executives

suggests that they may have trouble

directing an English-speaking team,

reading detailed reports in English, or

taking the lead in complex meetings held

in English.

INDUSTRIES IN FOCUS

The only industry where executives

speak better English than managers

is defense and security. In all other

sectors, businesspeople looking to speak

English must seek out managers rather

than executives or, in the case of the

education and finance sectors, go in

search of lower-level employees. In those

industries, the most junior employees

have the strongest English.

Across all levels of seniority, the

education sector has extremely weak

English skills, with average proficiency at

an elementary level. This situation poses

a challenge for policymakers who want to

improve national competitiveness through

English education strategies. Educators

at the staff level do not speak English

confidently enough to teach students the

language, and senior education officials

at the executive level also struggle

with English. As a result, international

exchange of knowledge on best practices

is still limited.

In contrast, the consulting and professional

services industry has the highest overall

level of English. Notably, both managers

and executives in the industry have the

highest EF EPI-c scores in their respective

seniority groups across all sectors. This

reflects the industry's strong need for a

lingua franca, as well as its ability to attract

the most talented students with competitive

and high-paying jobs.

OPPORTUNITIES FOR IMPROVEMENT

Business leaders in underperforming

sectors should be aware that low levels

of English proficiency, particularly at the

executive level, may lead to competitive

disadvantages in international contexts.

The relatively weak English proficiency of

executives handicaps their ability to lead

international teams. At the same time, it is

encouraging to see that the next generation

of leadership generally has a higher level of

English than its predecessors.

WORKFORCE ENGLISH BY SENIORITY



49.4950.66

EXECUTIVE

56.40

53.45

MANAGER

52.50

49.67

STAFF

SENIORITY AND GENDER

There is a significant gender gap in English proficiency at the managerial and staff levels, with women outperforming men by around three points.

This finding is consistent with women's stronger English skills overall. At the executive level, however, men score slightly higher than women.

EF EPI-c Score

2020

MEDIA, SPORTS & ENTERTAINMENT

HEALTH & PHARMACEUTICALS


LOGISTICS MANUFACTURING MINING & ENERGY

PUBLIC SECTOR TELE-COMMUNICATIONS

3030

6060

4040

5050

7070

EF EPI-c Score


AVIATION EDUCATION ENGINEERING FOOD, BEVERAGE & TOBACCO

CONSULTING & PROFESSIONAL

SERVICES

DEFENSE& SECURITY

AUTOMOTIVE

30

20

60

40

50

70

EF EPI-c Score

GENDER AND INDUSTRY

In 13 of the 16 industries surveyed, women show stronger English proficiency than men. The gender gap is widest in the

logistics industry, where women have an average EF EPI-c score more than six points higher than that of men.

Female Male

WOMEN OUTPERFORM MEN

For the first time, this edition of the

EF EPI-c report analyzes English language

proficiency differences between genders

across different levels of seniority. The

results show that while men and women at

all levels have moderate English proficiency,

female staff and managers generally

outperform their male counterparts. Only

at the executive level do men display higher

English proficiency than women.

EDUCATION MAKES A DIFFERENCE

As the EF EPI has found for the past six

years, women tend to have stronger English

skills than men. Our workplace English

proficiency findings are consistent with that

pattern. In most of the countries surveyed,

women on average receive more years of

formal education than men, are more likely

to attend university, and are more likely to

study the humanities. All of these factors

may contribute to their slightly better

mastery of English.

RECRUITING WOMEN

Given the strong correlations between

English proficiency and various measures of

business success, business leaders should

prioritize English skills in hiring decisions.

Actively recruiting and promoting women in

a globalized economy can help build more

diverse, more competitive companies.

WORKFORCE ENGLISH BY GENDER



COMPANY SIZE AND SENIORITY

Overall workforce English levels are highest in companies with an annual turnover between 20-40 billion USD, while firms with a turnover in

excess of 60 billion USD score the lowest. In companies of all sizes, executives lag behind managers in English.

ExecutiveWorkforce English Manager Staff

20

30

60

40

50

70

1 - 10 10 - 20 20 - 40 40 - 60 > 60

EF EPI-c Score

Company Annual Turnover in USD (Billions)

MIDSIZE COMPANIES LEAD IN ENGLISH

An analysis of English proficiency by

company size reveals that smaller

companies lag behind larger ones.

This finding should concern smaller

organizations looking to expand and

compete globally. There is also a dip in

English ability in firms with a turnover in

excess of 60 billion USD. Although larger

companies tend to be more global in scope,

midsize companies may simply be investing

more in English language proficiency.

EXECUTIVES FALL BEHIND

Another possible explanation for the dip in

proficiency among the largest companies

sampled is that they are more mature

businesses, where executives have not

traditionally needed to acquire English

language skills. This explains why executives

of companies with more than 60 billion USD

in turnover have the lowest average levels of

English proficiency in the entire sample.

CORPORATE STRUCTURE

A final possible explanation for this trend

among large companies is that these

companies are structured differently

from smaller ones. Though global in their

operations, these firms have a number of

employees who work exclusively on a national

scale with little need to speak English. In

smaller companies where such specialization

is less feasible, staff and managers must be

versatile in order to advance.

WORKFORCE ENGLISH BY TURNOVER



The following section highlights the implementation of English training in four companies: Coca-Cola HBC Russia, Kaspersky Lab, MMK, and RUAG. Aiming to raise their competitiveness within their respective industries, these companies invested in English training for their employees.

After entering strategic partnerships with EF and deciding on the most impactful training programs for their workforces, all four companies saw dramatic improvement in their employees’ English proficiency within a short period of time. These spotlights detail the specific training programs used, and also highlight the significant benefits these companies experienced as a result of effective language training.

COMPANY SPOTLIGHTS

The Coca-Cola Hellenic Bottling Company

(HBC) Eurasia is one of the largest

non-alcoholic drinks bottlers in Europe,

operating in 28 countries across three

continents. This London-listed Greek

company has 10,000 employees based in

Russia, ranging from shop floor workers to

senior executives.

English is the company’s official language. At

more senior levels in particular, professional

English is essential for communication

with leadership teams in other markets.

Approximately 1% of Coca-Cola HBC Russia

employees can currently speak English

at an intermediate level or higher, and

all managers are expected to be able to

communicate at an elementary level at least.

Coca-Cola HBC Russia actively encourages

its staff members to improve their English

skills and takes a segmented approach

to language training. Each year, the

company identifies between five and ten

employees as having a critical need for

English language skills and sends them

on two- to three-week immersion courses

abroad. Alina Lukash, Manager of Training

and Development, says immersion training

often improves employees’ English by one

EF course level in less than a month.

In addition, around 60 employees per year

receive face-to-face training, delivered

in person or via Skype, twice per week

from March to December. This face-to-

face training has also led to significant

improvement, albeit over a longer time span,

with 50% of students achieving a one-band

improvement by the end of the course.

Finally, Coca-Cola HBC Russia offers six-

month online training via the EF English

Live™ platform to more than 100 of its

employees. For this type of self-study

program, results rely more heavily on the

enthusiasm of each learner.

All three language training strategies are

crucial for the success of the business. As

Lukash explains, “Our company is focused

on identifying employees with the greatest

potential, then investing in their further

development. This means we can include

people who don’t speak English in our

talent pool, then train them up afterwards.”

With leadership teams located around the world,

Coca-Cola HBC Eurasia recognized the need for English

training among its 10,000 strong Russian workforce. A

segmented approach to language training has not only

improved staff’s overall English proficiency, but has also

made the hiring process much more efficient.

COCA-COLA HBC RUSSIA STRENGTHENS TALENT POOL WITH LANGUAGE TRAINING



COMPANY SPOTLIGHTS

Kaspersky Lab is a global cybersecurity

company founded in 1997 with headquarters

in Moscow. The company uses its deep

threat intelligence and security expertise to

provide security solutions and services that

protect businesses, critical infrastructure,

governments, and consumers. Today,

Kaspersky Lab operates in 200 countries

and territories, with 37 offices in 32

countries and around 3,500 specialists. The

company has a global vision and focus on

international markets, so foreign language

learning is a top priority.

Around 10% of Kaspersky’s 3,500 staff

members participate in an EF English

program. Approximately 70% of these

participants take face-to-face classes, while

the rest follow a blended learning model.

Kaspersky supplements these formal lessons

with peer-based learning opportunities,

resulting in around 10% of students moving

from one level to the next within six months.

Marina Alekseeva, Chief Human Resources

Officer at Kaspersky Lab, says: “Our

knowledge-based business culture means

that learning opportunities are always

available to our employees. We believe

that foreign language learning is not

just a business requirement for those in

communication with other countries and

regions, but also an opportunity to explore

other cultures. We’re proud to have one of the

best learning environments in our dynamic

industry, and we’re committed to helping

motivate employees to develop themselves.”

KASPERSKY LAB STRENGTHENS IMAGE WITH LANGUAGE PROGRAMS

At the Swiss technology group RUAG,

English is the common language for

international, cross-divisional, and virtual

team collaboration, and innovation leadership.

Because RUAG demands collaboration among

8,200 employees who serve organizations

around the world, the company carries out

regular language skills evaluations across

its workforce. After the company entered a

strategic partnership with EF in 2014, more

than 200 employees have learned English

online or attended immersion courses at

executive training centers.

The online program participants have

totaled more than 3,000 study hours to

date, progressing at an average rate of one

EF course level per year. Because progress

in English is more difficult at higher levels,

the RUAG employees’ improvement is

particularly impressive considering that

many of them began the course at the

intermediate level.

The Group selects learners from all divisions

based on business needs and provides

them with personalized training programs,

so that investment in language skills will

bring the most return for the business.

“RUAG’s reputation is based on excellence,

and that extends to the way we view English

language training,” says Philipp Lutz, People

Development Manager at RUAG Corporate

Services AG. “Strengthening our people's

English skills boosts our competitive position

in the international marketplace.”

RUAG USES LANGUAGE TRAINING AS A STRATEGIC BUSINESS DEVELOPMENT TOOL

MMK is one of the world's largest steel

producers and a leading Russian metals

company. The company's operations in

Russia include a large steel-producing

complex encompassing the entire production

chain, from preparation of iron ore to

downstream processing of rolled steel. As a

major leader in a competitive industry, MMK

is conscious of the need to remain at the

forefront of innovation in its sector.

Although Russian steelmakers enjoy a

prominent role in the steel industry, most

research into new production methods is

published in English. “There is a growing

need to gain access to new knowledge,” says

Sergey Sulimov, MMK’s Chief Finance Officer.

“If you are talking about improvements such

as new technologies, materials, and best

practices, or trends such as big data or the

Internet of Things, we do not have enough

information in Russian."

In 2014, MMK began delivering English

classes to schoolchildren as part of a

corporate social responsibility initiative

in Magnitogorsk, an industrial city with a

population of 400,000 that serves one of

the company's main production facilities

in the South Urals. After MMK invested in

improving the English skills of 250 teachers

in 58 of the city’s schools, the results were

impressive, with Magnitogorsk students

outperforming their peers in Moscow after

just one year.

Based on this experience, in 2015 MMK

decided to offer adult English training

for selected members of its workforce. A

defining feature of the program was that

the course was only made available to

individuals who said they wanted to improve

their English, ensuring all participants

would have a high level of engagement.

From the almost 1,000 employees who

put their names forward, MMK’s human

resources team selected 400 based on

business requirements. In the first year

alone, 57% of participants improved their

English by three or more EF course levels.

The program has significantly raised

the level of English skills among MMK’s

workforce, improving the company’s ability

to assimilate knowledge from around the

world. Sulimov points out that this program

is predominantly an investment in the

future of the company. “It is a capability that

should pay off in the mid-term,” he says.

At the same time, however, MMK has seen

an immediate human resources benefit by

increasing the pool of in-house talent

that it can draw upon to fill vacancies

for posts requiring English language

communication skills, such as those in

sales and investor relations.

MMK'S WORKFORCE IMPROVES ENGLISH SKILLS WITHIN A YEAR

As one of the world’s leading metals companies, MMK

recognizes the need for an English-speaking workforce

that can keep in touch with the world’s latest research,

technology, and innovation.



CONCLUSIONS AND RECOMMENDATIONS

A key finding from this edition of the

EF EPI-c is that English language proficiency

correlates positively with a wide range of

economic indicators, from global innovation

to ease of doing business. Still, the average

level of English in the global workforce is

just intermediate, which presents both a

challenge and an opportunity to forward-

thinking business leaders who want to gain a

competitive edge.

One significant barrier, however, is that

many senior executives themselves do not

have strong English proficiency. While there

are exceptions, this index has revealed a

significant trend: middle managers often

have better English language skills than

their superiors. So, what measures can be

taken to improve the situation?

RECOMMENDATIONS FOR COMPANIES

• Benchmark English proficiency first.

Employee testing can give business leaders

an immediate view of the linguistic strengths

and deficiencies of their workforce. It is

important to conduct this evaluation across

different job functions and roles, as strong

English proficiency does not hold the same

value for every employee.

• Link English proficiency to business

objectives. The most effective English

training programs motivate learners by

highlighting the advantages of English

proficiency for each job function. For the

best results, identify enthusiastic "language

leaders" who will act as figureheads for

English training programs.

• Dedicate adequate resources to skills

improvement. It is important to recognize

that English language training is a

strategic investment akin to any other

change in management. Building up

language skills is not easy and requires

significant effort and resources.

• Recognize the need for personalized,

sector-specific training. A one-size-fits-

all English course may not adequately

address the varying skill levels across your

workforce. A variety of study methods and

program types can be combined to create

custom programs for each employee,

including full-immersion residential

language courses for those who want to

improve their English dramatically in a

short period of time.

RECOMMENDATIONS FOR GOVERNMENTS

• Implement policies to encourage English

language learning. Policymakers should

ensure that all students have access to

quality language education. As part of

this effort, school curricula and national

standardized English tests should place

greater emphasis on comunication rather

than grammar and memorization.

• Invest in teacher training to effect long-

term change. The Russian Federation’s

Republic of Tatarstan used EF’s virtual

English school to train 3,361 working English

teachers in 2011. This investment raised

the percentage of teachers with an upper

intermediate level of English from 31% to

82% within two years. This improvement,

in turn, led to a 30% increase in students'

English test scores within a year.

• Ensure English learning opportunities

are available to workers as well as

students. In order to improve a country's

overall English proficiency, it is essential

to give working adults opportunities to

pick up skills they may not have acquired

in school. Countries should make

adult English education part of their

wider initiatives to promote trade and

multilateral relations. Countries should

also encourage companies to invest

in training by offering appropriate tax

exemptions and other incentives.

It takes a great deal of effort and investment

to steer a country or company toward a future

with an English-speaking workforce. For many

administrations, improving English teaching

at school might be enough of an achievement

in itself. Given the importance of English in

the workplace, however, forward-thinking

governments should go further and put policy

programs in place to facilitate the acquisition

of language skills among working adults.



*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.

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 when forming relationships internally and with customers.

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

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

most English spoken at native speed. Can read quickly enough 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 about a familiar topic and keep up a conversation on a fairly wide range of sub-

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

understand relevant information, and understand detailed instructions or advice. Can take 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 as well as the general meaning of non-

routine information within a familiar topic. 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 communications internally. Can express simple opinions, facts,

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

familiar topic. 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 slowly. Can read and understand very basic notices, instructions, or other informa-

tion, although there may be gaps in understanding. Can write very simple sentences including

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

EF ENGLISH PROFICIENCY INDEX FOR COMPANIES 1st Edition (2012)

EF EPI-cEF English Proficiency Index for Companies

www.ef.com/epic 2014

EF EPIcEF English Proficiency Index

for Companies 2012

www.ef.com/epi

EF ENGLISH PROFICIENCY INDEX FOR COMPANIES 2nd Edition (2014)

VISIT WWW.EF.COM/EPIC FOR MORE INFORMATION.

EF ENGLISH PROFICIENCY INDEX FOR COMPANIES 3rd Edition (2016)

WORKPLACE DEFINITIONS OF ENGLISH COMPETENCY

ACKNOWLEDGEMENTS

We would like to thank all participants for their

contribution to this research. Our analysis of results

was completed with invaluable assistance from

Glenn Alan Stark of Stark Statistical Consulting,

Albuquerque, U.S. In addition, the following people

and companies kindly gave their time to share

their insights about the value of English language

proficiency in a corporate setting:

• Alina Lukash, Training and Development Manager,

Coca-Cola HBC Eurasia.

• Ekaterina Vodopyan, Head of Training and

Development, Kaspersky Lab.

• Sergey Sulimov, Chief Finance Officer, MMK.

• Philipp Lutz, Manager People Development, RUAG

Corporate Services AG.

SELECTED REFERENCES

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Learning Technologies for English Language

Teaching (Rep.). Retrieved from http://www.

teachingenglish.org.uk/sites/teacheng/

files/C607%20Information%20and%20

Communication_WEB%20ONLY_FINAL.pdf

Clement, A. & Murugavel, T. (2015). English

for employability: A case study of the English

language training need analysis for engineering

students in India. English Language Teaching,

8(2), 116-125.

EF Education First. (2015). The English Margin:

What Language Means to a Business’ Bottom

Line. Retrieved from http://page.ef.com/The-

English-Margin_The-English-Margin-WE.html

Fortune, T. W. (2012). What research tells us

about language immersion. Chinese Language

Learning in the Early Grades. Retrieved from

http://asiasociety.org/china-learning-initiatives/

what-research-tells-us-about-immersion

Girard, K. (2014). Language wars divide

global companies. Forbes. Retrieved

from http://www.forbes.com/sites/

hbsworkingknowledge/2014/01/21/language-

wars-divide-global-companies/#51206f445ec8

Mitchell, R. & Myles, F. (2004). Second Language

Learning Theories (2nd ed.). Great Britain: Oxford

University Press.

Neeley, T. (2012). Global business speaks

English. Harvard Business Review. Retrieved

from http://hbr.org/2012/05/global-business-

speaks-english?cm_sp=Article-_-Links-_-

Top%20of%20Page%20Recirculation

Neeley, T. & Kaplan, R. (2014). What’s your

language strategy? Harvard Business Review.

Retrieved from http://hbr.org/2014/09/whats-

your-language-strategy

Of two minds (2016). The Economist. Retrieved

from http://www.economist.com/news/books-

and-arts/21696489-advantages-working-your-

own-language-are-obvious-those-working-

foreign

Swaminathan, N. (2008). Girl talk: Are women

really better at language? Scientific American.

Retrieved from http://www.scientificamerican.

com/article/are-women-really-better-with-

language/

Vorholt, J. & Harris, E. (2014). Entrepreneurship

and student motivation. English Teaching Forum,

52(3), 30-37.

Ybarra, R. & Green, T. (2003). Using technology to

help ESL/EFL students develop language skills.

The Internet TESL Journal, 9(3).

41


40 www.ef.com/epic

EFSET: INNOVATION IN LANGUAGE ASSESSMENT

In order to make English language testing accessible to more of the world’s two billion English language learners, the EF Standard English Test (EFSET) was launched two years ago as the world’s first completely free standardized English test. The EFSET challenges a long-held assumption that English certification tests must be expensive and inconvenient.

Continuous assessment of English language skills using a standardized assessment helps companies and governments pinpoint areas for improvement and devise successful strategies going forward. As such, companies and governments need reliable, scalable, and flexible English testing that they can easily roll out across the workforce. The EFSET meets these demands and provides institutions with free large-scale testing that would previously have been cost prohibitive.

The EFSET is an adaptive test that has been developed on a foundation of evidence-based research and ongoing psychometric analysis of test data. EF developed the EFSET in partnership with the world's top experts in language assessment, large-scale testing, and psychometrics. Two correlation studies confirm that EFSET scores are as reliable as traditional tests such as TOEFL and IELTS. Anonymized EFSET results are used with test takers’ permission to compile the EF EPI-c.

We invite all companies and governments to take advantage of the EFSET. Contact us at www.efset.org/corporate for free institutional testing.

I N T E R E S T E D I N T E S T I N G Y O U R E M P L O Y E E S F O R F R E E ?

C O N TA C T U S AT EFSET. ORG / CORPORATE


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