Post on 26-May-2018
transcript
TABLE OF CONTENTS
About the EF EPI-c Report
Executive Summary
Introduction
Workforce English by Country
Workforce English by Seniority
Workforce English by Company Size
Workforce English by Industry
Industry Spotlight: Consulting
Industry Spotlight: Information Technology
Industry Spotlight: Engineering
Industry Spotlight: Accounting, Banking & Finance
Industry Spotlight: Healthcare & Pharmaceuticals
Industry Spotlight: Manufacturing
Conclusions and Recommendations
Appendix: Workplace Definitions of English Competency
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EF English Proficiency Index For Companies
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The EF English Proficiency Index for Companies (EF EPI-c) is an evaluation of global workforce English skills. This is the second edition of the study, following an earlier report in 2012. It measures English proficiency levels in 22 industries and 32 countries, in companies with an annual turnover ranging from under 1 million USD to over 100 billion USD.
The report aims to set national and international benchmarks for workforce English against which individuals and companies can evaluate their relative capabilities; and second, to assess why companies in some countries and sectors perform better than others, and to highlight examples of best practice.
This report is a companion to the EF EPI report, which evaluates adult English proficiency levels around the world based on a separate set of test results. Together, these two reports provide a multifaceted perspective of English ability around the world. Both reports, as well as a collection of country fact sheets, are available for download at www.ef.com/epic.
ABOUT THE EF EPI-c REPORT
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METHODOLOGY
This second EF EPI-c study is based upon research conducted in 2013. 105,093 employees of companies
and governments took an English proficiency test administered by EF Corporate Solutions and completed
a questionnaire. These employees were not enrolled in an English-training program at the time, and the
results of the test were not used to determine pay.
Geographically, the test takers came from more than 30 countries: 40% from Europe, 35% from Asia, 23%
from the Americas, and 2% from the Middle East. Of the employees tested, 69% identified themselves as
Staff, 23% as Managers, and the rest as Executives. The test results were supplemented by a number of in-
depth interviews to add deeper insight to the findings.
ACKNOWLEDGEMENTS
We would like to thank all participants for their contribution to this research.
Kathleen Bailey is Professor at the Monterey Institute of International Studies, and currently serving as
President and Chair of The International Research Foundation for English Language Education (TIRF). With her
work for TIRF, Professor Bailey and the TIRF Board of Trustees are seeking to promote effective practices in
the use of English in the emerging global knowledge economy of the 21st century. She has conducted teacher
training activities, including leading workshops and teaching courses, in 30 different countries.
Maury Peiperl is Professor of Leadership and Strategic Change at IMD and Chair of the Evian Group at the
IMD Faculty Advisory Board. His areas of interest are organization development, executive careers, change
management, HR strategy, and global mobility. Professor Peiperl has taught, researched, or consulted in
these areas in some 30 countries on five continents, and is dedicated to promoting the role of business in
sustainable global development and in the resolution of cross-national conflict. His current work focuses on
the development of global executives, in particular CEOs and boards, and the management of careers under
long-term uncertainty.
Carlos González Leal is Local Process Driver at the HR Shared Service Center of Tetra Pak® for Central &
South America. He is responsible for addressing local delivery of Performance Management, Competence
Development, Succession Planning, and Learning Management Processes on his region. Carlos’ areas of
interest include Organizational Psychology, Training Design and Delivery, Facilitation, E-learning, People
Development, Learning Foundations and Techniques, and HR Transformation. He has participated as a
guest speaker in several corporate education conferences in Brazil and is an active member of a network of
Learning Professionals in Campinas (São Paulo, Brazil).
EF English Proficiency Index For Companies
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EF English Proficiency Index For Companies
EXECUTIVE SUMMARY
The EF EPI-c report sets national and international benchmarks for workforce English.
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English is the global language for business. Companies
of all sizes across different countries and industries
are finding it increasingly advantageous to be able to
communicate effectively in English. They now view
English proficiency as a truly strategic requirement,
in order to take advantage of business opportunities,
promote internal collaboration, and help foster
innovation. However, this study shows that companies
are struggling to keep pace with the growing
importance of English.
Key findings include:
• There remains a wide gap between the most and
least proficient national workforces in English. North
European countries continue to set the standard,
but most emerging markets, plus France and Italy,
have low-proficiency workforces.
• Workforce English proficiency is on an upward trend
in the majority of countries, but progress in most
emerging economies, in particular, is slow.
• Low proficiency in workforce English has negative
implications for a country’s competitiveness and
attractiveness to investment. For companies it means
missing out on business opportunities, creating
a weaker internal culture for communication and
innovation, and falling behind competitors.
• In almost half the countries surveyed, English
proficiency among Executives was worse than among
Managers and Staff. This will hamper companies’
ability to operate effectively in an international context.
• High-tech and professional services sectors such
as consulting and engineering have better levels of
English than lower value-added, nationally-oriented
industries such as foodstuffs and construction. The
travel and tourism industry fares surprisingly poorly.
• Small companies have lower English proficiency,
which may hinder their ability to expand in a
globalized economy.
This report makes a number of recommendations for
companies and governments to improve workforce
English proficiency.
Companies should:
• Establish clear requirements for English proficiency
and link them to promotion.
• Make sure programs are cost-effective.
• Manage English training as a change program.
• Offer flexible, personalized learning solutions.
Governments should:
• Ensure that English is fully incorporated into the
school curriculum from an early age.
• Encourage students in higher education to spend time
in English-speaking countries.
• Provide incentives for companies to undertake
English training.
EF English Proficiency Index For Companies
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It is now widely accepted that English is the de-facto
language for international business. Increased
use of English in the workplace is driven primarily
by the continuing integration of global economies
and businesses, with more and more companies
becoming international, selling, producing and
servicing in multiple markets. For example, a
JPMorganChase survey found that 61% of middle-
market firms were actively doing business in
international markets in 2013, up from 58% in 2012
and 43% in 2011.
It is also being driven by increased communication.
As the world becomes much more integrated, there
exists a greater need for businesses to communicate
frequently and seamlessly across borders, with
customers, colleagues, suppliers, and partners
outside their home markets. Finally, as businesses
become increasingly internet-driven, relevant digital
content has become a critical component of every
industry, with 56% of all online content in English
(and a large drop down after that to Russian, German,
and Japanese with about 5% or 6% each)1. The
companies that thrive in these conditions are the
ones whose employees have the skills and training to
communicate efficiently across borders.
Another key consideration for companies is fostering
innovation: in an increasingly competitive economy,
global businesses need to innovate faster to keep
up with customers and competitors. To do this, they
require a healthy internal culture of conversation,
collaboration, and creativity. This is underpinned
by a company-wide ability to communicate across
borders in English.
ENGLISH PROFICIENCY IS A KEY FOR
CORPORATE COMPETITIVENESS
These trends have made English proficiency a major
priority for businesses. Historically, language training
in the workplace was viewed mainly as an employee
benefit, but in recent years English has become a
much more important priority. With English now being
seen as the means to help drive better international
communication, collaboration, and corporate
innovation, companies now view English proficiency
as a truly strategic issue. Furthermore, they are aware
that, in an increasingly competitive world, lagging
behind their competitors in proficiency levels could
even restrict their growth aspirations as a business.
In an Economic Intelligence Unit (EIU) survey of 572
Executives at multinational companies, nearly half
admitted that basic misunderstandings had stood
in the way of major international business deals,
resulting in significant losses for their companies.
That percentage was considerably higher for
Executives at Brazilian and Chinese companies,
where 74% and 61%, respectively, acknowledged
experiencing such losses.
The conclusion is clear: language and cultural
differences create barriers to business success. In
the EIU study, 64% of business leaders said that
these differences also make it difficult to gain a
foothold in foreign markets, and that these cultural
differences have hampered their international
expansion plans. In addition, 70% stated that
they sometimes encounter difficulties when
communicating with business stakeholders.
Nearly 90% of the 572 Executives surveyed by
the EIU said that if cross-border communication
improved at their company, then profit, revenue,
and market share would increase significantly,
with better expansion opportunities and fewer lost
sales opportunities. A separate study, conducted
by Illuminas in 2014, found that 79% of decision-
makers at global businesses that had invested
in English training for their Staff saw increased
sales. Other business benefits included improved
employee communication, employee productivity,
and customer satisfaction.
INTRODUCTION
1. W3Techs Web Technology Surveys, April 2013; Usage of content language for websites. http://w3techs.com/technologies/overview/content_language/all
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COMPANIES ARE SEEKING TO BOOST
ENGLISH PROFICIENCY
As a result, multinational companies with offices
in countries where English is not the native tongue
are adopting English as their corporate language.
The list includes European aircraft manufacturer
Airbus, Japanese e-commerce firm Rakuten, French
automotive company Renault, and South Korean
electronics firm Samsung. Smaller companies are
also embracing English as they look to plug into the
global economy.
“Anybody who’s working in a significantly cross-
border way has to have English proficiency. I have
seen major global companies move from having
their board meetings in their local language to
having their board meetings in English, so this
change is even taking place at the most senior
levels,” says Maury Peiperl, Professor of Leadership
and Strategic Change at IMD Business School.
Similarly, Professor Kathleen Bailey, President and
Chair of The International Research Foundation
for English Language Education (TIRF), explains
that: “English is the cross-communication vehicle,
not just for people doing business between
English-speaking countries, but also for people
doing business between countries where the first
language in either country is not English.” For
example, if businesspeople from countries such as
Japan and the UAE meet, the language they use will
invariably be English.
English looks likely to remain the global language
for business for the foreseeable future. Around a
decade ago it was commonly expected that, with
the rise of China as a global economy, Mandarin
would take on that role, but, in fact, this has not
happened—in part because Mandarin is a very
difficult language for speakers of most other
languages to learn. Instead, the Chinese are making
huge efforts to improve their English proficiency.
This does not suggest that English will eclipse local
languages. Companies, of course, still need to serve
markets locally. And with globalization, the need
for localization also increases. In a country such as
Colombia, for example, Spanish will remain the main
language for doing business within the country—
but it will be necessary for a company in Colombia
communicating with the outside world to operate in
English. The challenge for companies is to create
cohesion between culturally distinct workforces.
English helps with this as it bridges linguistic
differences and brings employees together.
However, this report shows that companies are
struggling to keep pace with the growing importance
of English. Very few groups score very highly for
English language proficiency. Even in countries that
score very highly overall, there are wide disparities
in performance between industry sectors, and even
between levels of seniority within one company, so
there is considerable room for improvement.
EF English Proficiency Index For Companies
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In its recently released medium-term corporate strategy for FY2014-2016, ANA
announced plans to increase the productivity of its international passenger operations
by 45%. ANA will be accelerating improvements to its service quality, including the
skills of its cabin attendants, as well as developing personnel who can contribute to
its global expansion. For this reason they decided to invest in an English language
training course for 30,000 of their employees. They feel this will play a key part in
assisting them to achieve their ambitious goals for growth.
COMPANY SPOTLIGHTS
All Nippon Airways (ANA)
AB InBev (Anheuser-Busch InBev) is the leading global brewer and one of the world’s
top five consumer product companies. It employs 150,000 people in 24 countries
across the world. “Conducting business on a global scale means that staff in our
organization need to have strong English communication skills. With employees and
Staff from every part of the world, it is important that we understand each other,”
says Linda Qian, People VP of AB InBev APAC. As part of their dream to become "the
best beer company, bring people together, in a better world", the company decided to
invest in English language training. They have noticed the difference that English has
made to the business, “improving our employees' English has certainly helped them to
be more productive,” says Qian.
AB InBev
Atos, a global IT services company, is four years into a strategic transformation to
become a global leader of the IT services industry. English is the global corporate
language at Atos and the need for English proficiency has increased recently due to
their development of offshoring. “With large numbers of people in India, Africa, and
Latin America, many colleagues are not in the same town any more. Often they are
not even in the same country. These changes also help drive the need for English
language training,” Robin Ajdari, Vice President for Learning & Development and
Head of Atos University at Atos International explains. With the company dedicated to
providing services globally, client communication is another driver of language skills.
“The level of English that our employees possess, if it was not good enough, would be
detrimental both to the service we provide and further development of our business,”
Ajdari says.
ATOS
EF English Proficiency Index For Companies
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WORKFORCE ENGLISH BY COUNTRY
WIDE GAPS IN ENGLISH PROFICIENCY
There remains a wide gap between
the most and least proficient national
workforces in English. In a world where
companies from all countries play a role
in the global economy, this has serious
implications. Many indicators of income,
innovation, and trade correlate positively
with English proficiency. Three-quarters
of the leading countries in the Global
Innovation Index have high proficiency
or above in English2. In addition, a study
by the British Council in 2010 showed
that strengthening workforce English
proficiency improves countries’ ability
to compete in the global economy and
to attract investment3. Workforces with
lower proficiency cannot communicate
internationally with ease, making them less
competitive in a globalized marketplace.
Studies have also demonstrated a positive
link between English language training
and important aspects of business
performance. For example, research by
The International Research Foundation for
English Language Education (TIRF) has
found that English language training leads
to better retention of employees, improved
e-mail communication, and stronger
performance in business meetings4.
2. https://www.globalinnovationindex.org/content.aspx?page=GII-Home3. Pinon, R., & Haydon, J. (2010). The benefits of the English language for individuals and societies: Quantitative indicators from Cameroon, Nigeria, Rwanda, Bangladesh and Pakistan. Euromonitor International. http://www.teachingenglish.org.uk/sites/teacheng/files/Euromonitor%20Report%20A4.pdf4. TIRF (2009). The Impact of English and Pluralism in Global Corporations. Monterey, CA: TIRF.
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EF EPI-c PROFICIENCY BANDS High Proficiency Moderate Proficiency Low Proficiency
China 53.49
South Korea 49.88
Chile 47.60
Finland 68.01
Czech Republic 57.52
Saudi Arabia 38.84
Japan 53.61
Vietnam 50.03
Brazil 48.30
Argentina 64.33
Norway 71.09
Spain 61.14
Costa Rica 44.71
Italy 54.31
Colombia 52.34
Mexico 49.05
Poland 65.44
Netherlands 71.47
Uruguay 61.28
Venezuela 45.34
France 55.68
Taiwan 53.20
Turkey 49.79
Belgium 67.40
Denmark 72.58
Germany 60.48
Algeria 43.25
Indonesia 53.83
Panama 50.13
Russia 48.59
Switzerland 64.69
Sweden 71.31
COUNTRIES' WORKFORCE ENGLISH SCORESEF English Proficiency Index For Companies
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HIGH-PROFICIENCY WORKFORCES
Northern Europe, parts of Central Europe
and Argentina have high-proficiency
workforces. Most of these are countries
where English has traditionally been strong
(Argentina, Belgium, the Netherlands,
Scandinavia, and Switzerland), but Poland
presents an interesting case of a country
that transitioned to high English proficiency
more recently.
North European countries such as Sweden
have small domestic markets, which
increases the incentive to learn English so
as to tap into the global economy. English
proficiency is taught well in schools, as a
standard part of the curriculum from an
early age. It is seen as a core skill for job
applicants, which encourages people to
make a serious effort to learn it. In addition,
English-language films and television
programs are usually subtitled rather than
dubbed, which means frequent exposure to
spoken English in everyday contexts.
High English proficiency in Poland reflects,
in part, the fact that the country is now a
much more open society than was the case
25 years ago under Communism, which
has encouraged people to learn English. In
particular, there was large-scale migration
of Poles to the UK after EU accession,
which has now reversed to some extent—
many Poles have returned home, having
taken the opportunity of working in the
UK to considerably improve their
English proficiency.
Argentina has historically been an
internationally-focused country with a
well-educated population. The country’s
recent economic crisis has reinforced
this by forcing many Argentinian companies
to export abroad for their growth and
to improve their competitiveness by
strengthening the international skills
of their workforce—which means
learning English.
MODERATE-PROFICIENCY WORKFORCES
Germany, Spain, the Czech Republic, and
Uruguay have moderate proficiency. In
Germany, English is taught to all students
in schools, but most media is dubbed. Spain
has promoted English language teaching in
schools, but too recently to have an effect
on the majority of the adult population. The
Czech Republic, like Poland, has become
more open, and English is now taught in
schools. As a result, English proficiency
is improving, but is stronger among the
younger generation, and, unlike Poland, the
country has not seen sizeable migration
flows that would have contributed to
stronger English proficiency.
LOW-PROFICIENCY WORKFORCES
Most emerging markets, plus France and
Italy, have low-proficiency workforces.
In lower proficiency countries, English is
typically taught as a secondary academic
subject in schools. The quality of teaching
is often poor and reliant on outdated
methods. English is rarely a requirement
for obtaining employment, and television
and films are usually dubbed, which limits
effective exposure. More generally, many of
these countries are more culturally distant
from native-English-speaking countries,
argues Professor Peiperl. “There are some
borders that you cross where it doesn't feel
too difficult to make that crossing; there
are others—which also have to do with
physical distance—where it’s huge.”
Japanese companies have made
considerable strides in English, reflecting
an awareness that they need to master it to
compete effectively in the global economy,
even though, on average, proficiency
remains low. “Japanese companies that are
globally oriented are very much English-
speaking. On the whole, they have made a
lot of progress over the years because they
have to reach out beyond their borders,
and the language that it’s easiest for
them to connect in is English,” says
Professor Peiperl.
In China, adoption of English by the
workforce has increased exponentially
in recent years. Chinese companies are
now also looking to go global and have
realized that an international presence
will require them to speak English. On an
individual level, meanwhile, competition for
employment and aspirations for personal
improvement are high. English teaching in
schools remains of poor quality—although
it is improving—but private tuition is
widespread. “There are now more Chinese
people learning English than there are
native English speakers on the planet,
which is astounding really. The Chinese
are very hungry to learn English,” says
Andy Bailey, Chief Marketing Officer of EF
Corporate Solutions.
Low proficiency in workforce English
has negative implications for a country’s
competitiveness and attractiveness to
investment. One problem for companies
in countries where English proficiency is
low is that it can restrict their recruitment
options. Emerging economies such as
Brazil, Turkey, and Indonesia are not
lacking in skilled people, but companies find
that there is a shortage of skilled people
with international skills, including language
skills. For example, a country may have
many highly qualified engineers, but most
of them may not speak the level of English
required by a multinational corporation,
thereby restricting the recruitment pool.
That means multinational companies
looking to invest in these markets face
the prospect of having to spend money
on extensive English-language training,
and they may be more inclined to base
international functions in countries where
English skills are stronger.
WORKFORCE ENGLISH BY COUNTRY
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Domodedovo Airport is the largest Airport in Russia. It services around 31 million
passengers every year and in next two years they aim to increase these volumes
to around 50 million passengers per year while still providing an excellent level of
service. The Airport realized that they needed English language training to help them
meet the needs of the larger number of international passengers this increase in
volume would bring. They therefore implemented a wide-scale training program
for 5,118 front-office employees. This aimed to help customer-facing staff improve
communications and provide better customer service. The results have been almost
immediate, with employees feeling much more confident in their language skills and
much more willing to proactively engage with international passengers.
Tatarstan is an oil-rich republic in the Russian Federation. Its president, Rustam
Minnikhanov, has publicly stated his ambition to turn Tatarstan into a truly global,
service-based economy over the next couple of decades. This means being able to
speak the international business language, so the republic aims to make its citizens
trilingual, speaking English and Russian, while also holding onto the Tatar language.
The first step has been to upskill English teachers within the country’s education
sector in order to be able to teach English to the next generation of children coming
through the school system. The target level for the English teachers was achieved
within three years. The next stage has been to track the impact of those teachers on
the English proficiency of students coming through the education system, which is
already proving to be dramatic.
DOMODEDOVO AIRPORT
THE EDUCATION MINISTRY OF TATARSTAN
COMPANY SPOTLIGHTS
BDO, the 5th largest global accountancy network, with more than 56,000 employees
in over 144 countries, use English as their corporate language for their worldwide
communication. BDO recognized the importance of better English as a means to
improving communication with their international clients and offering a more efficient
service to them. For this reason, learning English was made a key goal for BDO
employees. They feel their investment in language learning has brought them closer to
their goal of becoming the global leader for exceptional client service.
BDO
EF English Proficiency Index For Companies
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ONLY GRADUAL IMPROVEMENT
The majority of countries have improved
their English proficiency since 2012, but
progress in most emerging economies,
in particular, is slow. Most emerging
markets are improving only gradually—not
enough to transition to high performance
within the next decade. In China and South
Korea, workforce English proficiency is
failing to improve, despite considerable
spending on English training. Saudi Arabia’s
English proficiency level has deteriorated
dramatically, which may reflect the
recent 'Saudization' policies designed
to considerably reduce the number of
expatriates in the workforce.
Slow improvement in English proficiency
is not surprising. “Learning a language is
actually very hard—as anybody who’s tried
it would know. So this is not something
that you change overnight. It will take
years,” says Peter Burman, President of EF
Corporate Solutions. Part of the challenge
is that the supply of good English teachers
is often low—in China, for example, it is
hard to find good English teachers even
in the main cities, and extremely difficult
beyond that.
Moreover, the English skills required by
businesses may well go beyond the kind of
formal English that has traditionally been
taught in schools, with a greater stress
on the ability to use English actively and
confidently in a variety of settings, from
email and video conferences to cocktail
parties. “Whatever the industry, there
is more of an emphasis on the ability to
respond and engage, both in professional
interactions and also in small talk,”
says TIRF Professor Kathleen Bailey.
“Even reading and writing, if you think
about e-mails and blogs, have become
more interactive.”
In addition, many companies have been
slow to integrate requirements for English
into the standard competencies that they
demand of employees. One of the world’s
leading automotive companies explains
that: “We don’t have a standard to assess
a candidate’s English language skills,
but we think it is important, for sure. For
certain positions, engineers for instance,
their technical skills will be considered first
and English skills are a plus. Because, if
needed, we will provide English training
to them.”
Nevertheless, the progress made in
countries such as Poland suggests that
fairly rapid advances in English standards
are possible. Many emerging countries, in
particular, are now taking the integration of
English into their education systems very
seriously, and over the next few years these
efforts are likely to pay off. In some
of the European countries where proficiency
is lower, such as France and Italy,
serious attempts to improve matters are
less evident.
Progress will be helped by the rapid
expansion of online and virtual learning.
Global spending on online learning jumped
from 36 billion USD in 2011 to 56 billion
USD in 2013, and is projected to exceed
100 billion USD by 20155. Rising Internet
penetration in emerging markets is allowing
their workforces an unprecedented level of
access to high-quality English teaching.
WORKFORCE VS. ADULT POPULATION
The level of English proficiency is typically
higher for the workforce than for the
adult population as a whole. This partly
reflects corporate investment in their
employees’ proficiency that is not available
to those outside the workforce, as well as
the fact that people are likely to be using
their English more actively when they are
working, which aids proficiency.
Employees are also increasingly
making efforts to improve their English
independently, realizing that this will be
a key competitive advantage for career
progression. In some markets in particular,
such as China and Brazil, there is a clear
trend for many people to use their free
time and their own money to improve their
English skills.
WORKFORCE ENGLISH BY COUNTRY
5. E-learning industry, December 2013; Top ten e-learning statistics for 2014. http://elearningindustry.com/top-10-e-learning-statistics-for-2014-you-need-to-know
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Denmark
Netherlands
Sweden
Norway
Finland
Belgium
Poland
Switzerland
Argentina
Uruguay
Spain
Germany
Czech Republic
France
Italy
Indonesia
Japan
China
Taiwan
Colombia
Panama
Vietnam
South Korea
Turkey
Mexico
Russia
Brazil
Chile
Venezuela
Costa Rica
Algeria
Saudi Arabia
WORKFORCE ENGLISH VS. ADULT ENGLISH
20 60504030 70 80
Adult English Workforce English
EF EPI-c Score
EF English Proficiency Index For Companies
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MANAGERS HAVE THE BEST ENGLISH
Having a good level of English proficiency
throughout the organization, from more
junior Staff to senior Executives, brings
considerable benefits. In an increasingly
globalized workforce, it encourages
dissemination of information, knowledge-
sharing, the fostering of innovation and
collaboration across the company at
all levels.
It might appear natural that Executives’
English proficiency would be higher
than that of Managers and Staff, since
Executives are more likely to be operating
in an international context. A leading global
automotive company explains that: “In
general, Executives’ English proficiency
is greater than that of the Staff in our
company. There are two main factors.
First, we require higher English proficiency
for Executives during the recruitment
process and it is one of the categories for
internal promotion. Second, the nature
of these Executives’ job in our company
is to communicate with the management
team from day to day, and their common
language is English, without a doubt.”
Despite this, in almost half of the
countries tested, English proficiency
among Executives was worse than among
Managers and Staff (see page 19). This is
true of all the countries that rank as high-
proficiency in English overall (except for
Argentina), suggesting that companies in
these countries need to focus particularly
on improving the English skills of their
Executives. Executives tend to be older and,
as such, were educated in a time when
English was not a yet a required subject in
many nations’ curricula. Intensive exposure
to the Internet and social media means that
younger generations (and therefore, more
junior Staff) in these countries often have
superior English skills to older adults.
In almost all countries, English proficiency
was highest for Managers, compared with
Executives and Staff. Managers are more
likely to have learned English in school,
and English proficiency may well have
been a factor in their promotions. As with
Executives, they interface frequently with
international partners and clients.
Some lower-performing countries, notably
France, Italy, and Japan, stand out for
having higher English proficiency among
Executives than among Managers and Staff
(although they still lag behind Northern
Europe). This would suggest that in these
countries the main focus should be on
improving general English levels.
DEFINITION OF TERMS
Executive: An employee with senior managerial responsibility often involved in defining and setting corporate strategy.
Manager: An employee with control or direction over a department or a team of workers.
Staff: An employee who does not fit into either of the above categories, with no direct responsibility for a department or team.
WORKFORCE ENGLISH BY SENIORITY
18 www.ef.com/epic
ALGERIA COLOMBIA
GERMANY
SWITZERLAND
ARGENTINA COSTA RICA
INDONESIA
TAIWAN
BELGIUM
CZECH REPUBLIC ITALY
TURKEY
BRAZIL
DENMARK JAPAN
URUGUAY VENEZUELA VIETNAM
CHILE
FINLAND
SPAIN
CHINA
FRANCE
SWEDEN
SOUTH KOREANETHERLANDS NORWAY PANAMA POLAND RUSSIA SAUDI ARABIAMEXICO
20
50
30
60
80
40
70
20
50
30
60
80
40
70
20
50
30
60
80
40
70
20
50
30
60
80
40
70
EF EPI-c Score
EF EPI-c Score
EF EPI-c Score
EF EPI-c Score
Workforce English Executive Manager Staff
COUNTRY & SENIORITYEF English Proficiency Index For Companies
19
SMALL COMPANIES LAG IN
ENGLISH PROFICIENCY
Average English proficiency in companies
of all sizes is low, but English proficiency
within companies with revenue below 50
million USD annually is markedly lower
than for larger firms. This reflects the fact
that improving English proficiency has
been more of an immediate priority for
larger companies, which are more likely to
operate across borders and will also have
greater resources for language training.
However, in a globalized economy, small
companies are increasingly finding that
their best opportunities for expansion
also lie internationally. Small companies
really need to think globally from the
outset, and insufficient English proficiency
may be a key barrier to success. Weaker
English skills will make it more difficult for
businesses to act as suppliers for foreign
multinationals entering their home market
and also to penetrate export markets.
Small companies are therefore likely to
become a major focus for English language
teaching in the coming years. Countries
wishing to support a dynamic small
business sector should provide incentives
and assistance for small companies to
improve their English proficiency.
WORKFORCE ENGLISH BY COMPANY SIZE
20 www.ef.com/epic
30
20
40
50
60
70
80
5B-10B 1B-5B>10B 500M-1B 50M-500M <50M
Workforce English Executive Manager Staff
EF EPI-c Score
Company Annual Turnover in USD
COMPANY SIZEEF English Proficiency Index For Companies
21
WORKFORCE ENGLISH BY INDUSTRY
WIDE GAPS IN ENGLISH PROFICIENCY
There is a wide variation between industry
sectors in terms of average English
proficiency globally, and also between
different countries within the same sector.
Looking at overall sectoral proficiency,
the strongest levels are found in the
consulting, legal, science and biotech,
IT, and engineering sectors (although
even here there are marked variations
between countries). These sectors are
characterized by global interaction and high
levels of education, and rely on access to
information—which at a global level will
usually be in English. Even in these sectors
though, there is still much work to be done
to improve English proficiency to more
effective levels. “For the better-performing
industries, if you look at company averages,
it’s still pretty low—out of 16 EF levels,
companies might be at a level 8 or so,
whereas we consider 10-12 to be the level
where you can actually start to work in
English. So, there is quite a way to go there
as well,” says Peter Burman, President of
EF Corporate Solutions.
Lower value-added sectors such as food,
beverages and tobacco, construction,
and manufacturing have lower levels of
English proficiency. Such sectors are often
more domestically-oriented. Defense
and security is the lowest-scoring sector;
here the average is dragged down by very
low scores in some countries with more
isolated militaries, such as Venezuela. NATO
members, by contrast, typically have higher
proficiency, reflecting greater international
collaboration.
Travel and tourism fares surprisingly poorly.
Despite its global orientation, it ranks only
10th out of 22 industries. This suggests
that many countries wishing to benefit fully
from strong global growth in tourism in the
coming years will need to improve standards
of English in this sector.
Tetra Pak, a multinational food packaging
and processing company, has adopted
English as its international language.
“Tetra Pak operates in 170 countries
around the world, and has more than
24,000 employees. With such a diverse
international base, we decided that
English would be our official language for
international communication,” says Carlos
Gonzalez Leal, Training and Development
Co-ordinator at Tetra Pak Central and
South America (CSA). “So it is very
important for our employees at all levels to
be proficient in English. It’s not just good
for our business as a whole, but also for
their own career prospects.”
The company uses English for
communications globally, and its main
systems have been developed in English.
“So we are using it not just for international
communications, but also on a day-to-day
basis,” says Gonzalez Leal. Tetra Pak’s
use of English within CSA has also been
driven by the need to compete for the
business of many large multinational
companies setting up factories and other
operations there.
Moreover, as their clients group in
countries for management purposes in
order to gain efficiencies, more decisions
are taken at a cluster level, where a
headquarters in one country is managing
a number of countries in a region. For
this reason, Tetra Pak has adjusted its
structure and is looking to engage with
clients at that same cluster level—it now
manages the whole of South America from
Brazil. Spanish training is also provided
for Managers who have direct reports
from Spanish-speaking countries, “but
English represents the vast majority of our
language training,” says Gonzalez Leal.
Finding people with the right level of
English is not easy. Graduates from public
universities are not required to have
mastered English. Although English is
more common in private colleges, the main
impetus for improving workforce English
are the Brazilians who are aware of the
need to learn the language and who are
taking private language courses, including
overseas training.
In terms of finding people with the
language skills required by Tetra Pak, “it
is easier for management positions, but
for certain technical areas it is very
difficult,” says Gonzalez Leal. The
company’s solution has been to develop
the talent it needs internally, rather
than trying to find people with the right
combination of technical skills and
English externally. Currently around 9%
of CSA employees are in its English
training program.
As the importance of English grows, the
company is investing more and more
in English language training every year.
The challenge, says Gonzalez Leal, is to
maximize the return on that investment,
and to ensure that the money is being
well-spent. In light of this, one of their
priorities is to expand the amount of
online learning they offer to complement
classroom learning, as this makes it
easier to track results and, therefore,
return on investment.
COMPANY SPOTLIGHT: TETRA PAK IN CENTRAL AND SOUTH AMERICA (CSA)
22 www.ef.com/epic
Consulting
Legal
Science & Biotech
Information Technology
Engineering
Advertising, Marketing & Public Relations
HR, Admin & Management
Media, Sports & Entertainment
Education
Travel and Tourism
Accounting, Banking & Finance
Retail
Health & Pharmaceuticals
Aviation
Logistics
Mining & Energy
Public Sector
Automotive
Manufacturing
Construction
Food, Beverage & Tobacco
Defense & Security
20 5030 40 60 70 80EF EPI-c Score
INDUSTRY ENGLISH SCORES
23
EF English Proficiency Index For Companies
CONSULTING IS A GLOBAL BUSINESS In a globalized economy, consultancy firms frequently work with clients on projects that span multiple markets. The sector relies on excellent communication internally within companies and externally between companies and clients, and where companies communicate across borders English is key for this. Consultancy relies on knowledge, and in the global economy, knowledge is often accessed in English. It increasingly relies on technology solutions, and English is the language of technology. Consultancy firms rely on being able to attract and retain top talent, and investing in their English skills is a major draw.
There is a clear divide between developed economies, with above-average levels of English proficiency for this sector, and most emerging markets, with below-average proficiency. North European countries dominate the leader-board for English proficiency here, with the Netherlands and Sweden on top. Consulting sectors in emerging economies such as Mexico, Turkey, and Vietnam perform poorly, and will struggle to compete globally unless they improve their English proficiency.
CONSULTING
INDUSTRY SPOTLIGHT
24 www.ef.com/epic
Netherlands
Sweden
Indonesia
Norway
Belgium
Algeria
Denmark
Finland
Switzerland
Spain
Poland
Taiwan
South Korea
Japan
Germany
Czech Republic
France
Italy
Argentina
China
Colombia
Brazil
Venezuela
Russia
Turkey
Chile
Costa Rica
Vietnam
Mexico
Panama
Saudi Arabia
WORKFORCE ENGLISH BY INDUSTRYCONSULTING
INDUSTRY AVERAGE
20 5030 40 60 70 80EF EPI-c Score
EF English Proficiency Index For Companies
25
INFORMATION TECHNOLOGY
IN IT, THE LEADING PLAYERS ARE OPERATING GLOBALLY They rely on huge networks of supplier partners, and competing for customers in a global marketplace for IT solutions. IT innovation is also global: in a rapidly evolving sector, it is vital for companies to stay ahead of trends, and ideas for innovation are generated and shared online, mostly in English. IT servicing is global too: IT companies, as with other sectors, are investing in global centers for customer service. In this context, English is a vital tool for global communication for the IT industry.
Levels of English proficiency vary widely between countries. There is no clear trend according to level of economic development: Indonesia and Vietnam are both placed in the top ten, for example. Lower-wage countries where English proficiency in IT is strong will be well-placed to take advantage of the trend towards global outsourcing of IT services. For some others, such as Russia, weak English proficiency will be an obstacle to attracting investment, despite a strong base of technical skills.
INDUSTRY SPOTLIGHT
26 www.ef.com/epic
Switzerland
Vietnam
Denmark
Costa Rica
Poland
Taiwan
Finland
Indonesia
South Korea
Belgium
Japan
Argentina
Russia
Spain
Czech Republic
Turkey
Italy
Germany
France
Sweden
China
Brazil
Mexico
Netherlands
Colombia
Chile
Saudi Arabia
Norway
Algeria
WORKFORCE ENGLISH BY INDUSTRYINFORMATION TECHNOLOGY
20 5030 40 60 70 80
INDUSTRY AVERAGE
EF EPI-c Score
EF English Proficiency Index For Companies
27
IN ENGINEERING, PRODUCT DEVELOPMENT AND TRANSFER OF KNOWLEDGE ARE KEY Both increasingly take place across borders, which requires a strong command of English. For reasons of efficiency, training and technical support typically have to be in English. In a highly collaborative industry, engineering firms must use both formal and informal networks to promote co-operation both within the company and with clients whose operations will often be global in scope—again, proficiency in English is vital.
Strong North European countries set the standard. North European countries top the list for English proficiency, reflecting the fact that technical education in these countries includes a strong English language component. Emerging markets, especially in Latin America, lag in this industry, pointing to a need to do more to integrate English into study.
ENGINEERING
INDUSTRY SPOTLIGHT
28 www.ef.com/epicwww.ef.com/epic
Sweden
Poland
Switzerland
Denmark
Finland
Netherlands
Norway
Germany
Spain
Costa Rica
Italy
Japan
France
South Korea
China
Taiwan
Chile
Argentina
Czech Republic
Belgium
Mexico
Saudi Arabia
Russia
Vietnam
Brazil
Venezuela
Turkey
Colombia
WORKFORCE ENGLISH BY INDUSTRYENGINEERING
20 5030 40 60 70
INDUSTRY AVERAGE
80EF EPI-c Score
EF English Proficiency Index For Companies
29
ACCOUNTING, BANKING & FINANCE
IN ACCOUNTING, BANKING, AND FINANCE, THE OPERATING ENVIRONMENT IS HIGHLY INTERNATIONAL Companies require English for a range of reasons. First, they must ensure compliance with regulation, which at an international level is usually formulated in English (e.g., Basel III). Second, in an industry where growth is driven by innovation, companies must look abroad for innovative ideas, and a lack of workforce English skills would mean global trends are not picked up in time. Third, the need to boost efficiency has meant that companies are making greater use of shared service infrastructure, with support functions such as accounting and even some customer services concentrated in certain countries—English is needed to manage these operational efficiencies.
Fourth, enhancing the digital customer experience is also a priority for finance firms, and only organizations with English speaking employees will be able to stay at the forefront of digital trends. Finally, in a world of mobile capital, English is needed to engage with international clients across all countries.
North European countries again top the list. Significantly, there is a gap between aspiration and reality for some countries. Some countries that have plans to develop global financial centers—notably China, Russia, and Turkey—perform poorly in this sector in English proficiency, which will be a major barrier to their ambitions.
INDUSTRY SPOTLIGHT
30 www.ef.com/epic
Netherlands
Denmark
Sweden
Norway
Argentina
Finland
Belgium
Germany
Uruguay
France
Switzerland
Indonesia
Poland
Czech Republic
Taiwan
Italy
South Korea
Saudi Arabia
China
Spain
Turkey
Venezuela
Japan
Vietnam
Chile
Mexico
Brazil
Algeria
Russia
Colombia
Costa Rica
Panama
WORKFORCE ENGLISH BY INDUSTRYACCOUNTING, BANKING & FINANCE
20 5030 40 60 70 80
INDUSTRY AVERAGE
EF EPI-c Score
EF English Proficiency Index For Companies
31
HEALTHCARE & PHARMACEUTICALS
PHARMACEUTICAL COMPANIES HAVE BECOME TRULY GLOBAL They conduct R&D in certain countries, manufacture in others, and use a global supply chain, distribution, and sales function to operate everywhere. Both pharmaceutical companies and healthcare providers rely on sharing of knowledge globally, including research, information on developments in diseases and epidemics, and instruction and training on new products and technologies. Over 90% of research and global conferences in the sector are in English. Finally, as global players, pharmaceutical companies face huge risks in terms of reputation and compliance; organization-wide communication in English helps them to detect potential risks in different divisions and markets early.
For all of these reasons, effective global communication in English is vital. However, some large European countries underperform. Healthcare sectors in France and Italy, although well-funded, are below average in English proficiency, limiting their ability to benefit fully from global scientific breakthroughs and best practice. Emerging markets also generally lag in this industry. Sweden and Argentina top the rankings.
INDUSTRY SPOTLIGHT
32 www.ef.com/epic
Sweden
Argentina
Norway
Netherlands
Germany
Finland
Japan
Switzerland
Spain
Brazil
China
Vietnam
Venezuela
France
Russia
Mexico
Poland
Italy
Czech Republic
Taiwan
Chile
Panama
Denmark
South Korea
Turkey
Colombia
Saudi Arabia
Algeria
WORKFORCE ENGLISH BY INDUSTRYHEALTHCARE & PHARMACEUTICALS
20 5030 40 60 70 80
INDUSTRY AVERAGE
EF EPI-c Score
EF English Proficiency Index For Companies
33
LARGE MANUFACTURERS RUN COMPLEX GLOBAL OPERATIONS AND SUPPLY CHAINS Even small manufacturers often produce goods for export or act as suppliers to global companies. The sector is also increasingly global in terms of mobility of resources, people, and knowledge. Innovation is vital, and knowledge comes from all around the world. Service quality is also increasingly important, and strong communication skills internally and externally across multiple markets are needed to support this. In all of these respects, proficiency in English should be a key priority for companies in manufacturing.
North Europeans again lead in English proficiency in this sector, with Sweden, Denmark, and Norway topping the rankings. However, China, South Korea, and Taiwan, which are the Asian global manufacturing powerhouses, all perform relatively well. This suggests that global manufacturing reach goes hand-in-hand with relatively good levels of English proficiency.
MANUFACTURING
INDUSTRY SPOTLIGHT
34 www.ef.com/epic
Sweden
Denmark
Norway
Spain
Netherlands
Switzerland
South Korea
Turkey
Finland
Germany
China
Argentina
Taiwan
France
Czech Republic
Italy
Vietnam
Japan
Poland
Chile
Mexico
Brazil
Venezuela
Colombia
Russia
Saudi Arabia
Belgium
WORKFORCE ENGLISH BY INDUSTRYMANUFACTURING
20 5030 40 60 70 80
INDUSTRY AVERAGE
EF EPI-c Score
EF English Proficiency Index For Companies
35
Progress is needed across almost all countries and
sectors for companies to be able to take full advantage
of English as a global language for business. Long-
term competitiveness comes from organizations’ ability
to innovate in all aspects of their business. Innovation
comes from a corporate culture of creativity, and that in
turn comes from increased cross-border collaboration
and greater communication. No wonder that the world’s
leading businesses and organizations now view English
as so strategically important.
For those countries whose English proficiency is low,
either overall or in certain industry sectors, there is
now a very a strong imperative to improve levels of
English. For those companies that lack proficient
English levels in their workforce, any market leadership
that they may have will not be with them for long, as
they will increasingly find themselves competitively
disadvantaged. There are signs of progress in improving
workforce English proficiency, but it is slow. Companies
need to do more, and governments can help.
RECOMMENDATIONS FOR COMPANIES
A number of recommendations can be made for
companies to improve English proficiency:
• Establish clear requirements for English proficiency
and link them to promotion. Companies already do this
with a range of other competencies, but have been slow
to do the same with English. They need to make it very
clear in personal development dialogues with employees
that communication is important and that English is
going to be key for their continued development within
the organization. Companies need to link a language
level to a job category, and link that target level to a
business need. That way it will be clear to employees
that in order for them to be effective at their job, they
need to be able to communicate at a certain level—
otherwise they cannot take higher-level roles within
the company.
• Make sure programs are cost-effective. At a time
of considerable cost-pressure for companies, it is
important to be able to manage English teaching
programs effectively so as to be able to demonstrate
return on investment. Large multinational companies
may be spending tens of millions of dollars annually
on English language training. Companies will need to
continue to increase the resources that they dedicate
to improving English proficiency, but also to become
better at getting value from those resources. That
means measuring programs effectively to ensure a
healthy return on investment, a benefit offered by online
learning solutions.
• Manage English training as a change program.
Increasing the use of English in a company can be a
difficult, disconcerting process for many staff, and has
to be managed as carefully as any other major program
of change would be. Moreover, English language
training is a long-term process—to become fluent from
a complete beginner can take three to five years—which
means that employees need to be kept engaged and
motivated. A company may have excellent teachers
and technology at their disposal, but that will count for
nothing if it is not wrapped into a cohesive program that
engages people and keeps them motivated, excited, and
progressing. Companies should think of English training
in terms of a change program and think about how to
engage people in that program. Having an environment
where people feel comfortable making mistakes is very
important, as language learning inevitably involves a lot
of error.
• Offer flexible, personalized learning solutions. One
key requirement for a successful program is flexibility.
In a globalized economy, employees often face intensive
travel schedules, especially at senior level. That puts a
premium on tailored solutions. A personalized learning
experience is also extremely important for motivation.
Where possible, placements in English-speaking
countries can make a huge difference, although that is
clearly not an option in the vast majority of cases.
CONCLUSIONS AND RECOMMENDATIONS
36 www.ef.com/epic
RECOMMENDATIONS FOR GOVERNMENTS
The key role for governments is to make sure that
the teaching of English in schools is widespread
and effective, but they can also provide support
and incentives for businesses to undertake
language training:
• Ensure that English is fully incorporated into the
school curriculum from an early age. “If countries
want to engage further, then it’s a matter of putting
it in the school curriculum earlier for everyone,” says
Professor Peiperl. Mandatory English exams for high-
school leavers would also help to raise standards. “The
high school quality level, at least in Brazil, is too low,
to be honest, in comparison with countries in Europe.
If English were a requirement, at least an intermediate
level, before people finish high school, that would be a
real jump,” says Gonzalez Leal.
• Encourage students in higher education to spend
time in English-speaking countries. Periods of study
abroad, for example, through placements or exchanges,
are useful not just for improving English but also for
developing the personal and social skills needed to
flourish in a globalized economy. For example, the
Spanish government has run a large initiative in
recent years providing funds to university students to
study abroad.
• Provide incentives for companies to undertake
English training. Such training is, after all, a long-term
investment in the English proficiency of the national
workforce, as it is a skill that employees will retain
even after they move on from the company. France for
example has a governmental initiative where employers
are legally obliged to provide a certain monetary
amount of training to their employees, of which the
government will pay half the cost—this is often used
for language training. Alternatively, governments can
offer tax incentives for language training. “In Chile you
can reduce your tax base if you demonstrate that you
spent money on training—and that includes language
training—so that supports companies in improving
English,” says Gonzalez Leal.
As we move forward into an increasingly borderless
business world, it will become ever more important
for companies, irrespective of size, to think about how
they are going to compete in a globalized economy.
That means, at least in part, considering how they will
communicate and collaborate across borders. With
English now firmly established as the global language
for business, proficiency in it will be crucial.
EF English Proficiency Index For Companies
37
*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.
WORKPLACE DEFINITIONS OF ENGLISH COMPETENCY
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 in relationship-forming internally and with customers.
Can contribute effectively to meetings and seminars within own area of work and keep up a con-
versation with a good degree of fluency, coping with abstract expressions. Can understand most
English when spoken at native speed. Can read quickly enough in order 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 on a familiar topic and keep up a conversation on a fairly wide range of areas.
Can understand the general message when hearing English at native speed. Can read and un-
derstand relevant information, and understand detailed instructions or advice. Can make 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 and the general meaning of non-routine
information within a familiar area. 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 communication internally. Can express simple opinions, facts,
or requirements in a familiar context. Can understand straightforward oral information within a
familiar area. 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 at a slow pace. Can read and understand very basic notices, instructions, or other
information although there may be gaps in understanding. Can write very simple sentences
including stating 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
38 www.ef.com/epic
EF EDUCATION FIRST
EF Education First (www.ef.com) is an
international education company that focuses
on language, academics, and cultural
experience. Founded in 1965, EF's mission
is "opening the world through education."
With 500 schools and offices in over 50
countries, EF is the Official Language Training
Supplier of the Rio 2016 Summer Olympics.
The EF English Proficiency Index (EF EPI)
and the EF English Proficiency Index for
Companies (EF EPI-c) are published by EF
Learning Labs, the research and innovation
division of EF Education First.
39