Fifty-nine percent of employers report that the scarcity of local talent possessing the necessary technical skills is the biggest challenge for human resources departments in emerging markets, according to Mercer's HR & Mobility Challenges of Emerging Markets Survey.

Respondents also report other top challenges, including the difficulties of dealing with complex labor laws at 53 percent and establishing appropriate salary structures at 51 percent.

"In addition to the lack of local talent in most emerging markets, attracting and incenting expatriates that can provide the needed technical and managerial skills is a big issue for companies trying to staff operations in often difficult locations," says Roger Herod, principal of Mercer's global mobility consulting business.

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