10
‘Next
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Practices’
in Developing Expatriate Programs
By Jacqueline A. Hauser, CCP, Cendant Mobility
QUICK LOOK
. Today’s companies
face increasing
challenges in the
deployment and
development of their
workforces around the
globe.
. New assignments are
forcing significant
changes in the global
relocation arena.
. There are 10 “next
practices” that define
new approaches and
recommendations.
28
workspan 10/04
As companies adapt to
a continually expanding
and volatile global
marketplace, they face
increasing challenges
in the deployment and
development of their
workforces around
the globe.
Photography: ©J. Feingersh/zefa
types of global mobility on employee growth, quality of life
And with a large majority of businesses expecting growth in
their international business (73 percent, according to a recent and well-being, and to identify how companies can use the
findings in developing approaches to global staffing and
Cendant Mobility survey of HR professionals), they
assignee support. (See “Definitions of International
inevitably will continue sending employees on international
Assignment Types.”)
assignments. As they do, employers must factor in:
• Continuing organizational needs for cost containment
• The concerns of employees and their families who have
Practice 1:
become more reluctant to take on long-term assignments
Understand that World Events and
abroad as they try to balance work and family
Crises Don’t Halt Assignment Acceptance
• Tightened regulatory environments that make it increasingly Only a small minority of assignees (13 percent) said they are
difficult to obtain visas and work permits.
less likely to accept a future global assignment based on
In response, new assignment roles are being developed and
world events. Interestingly, findings suggest that one’s
introduced in conjunction with traditional long-term
experience may be just as likely as world events to influence
expatriation — and are forcing significant changes in the
someone’s refusal to accept another assignment. (See Figure
global relocation arena.
1 on page 31.)
How has this trend affected assignees
and, in turn, what information can help
compensation and benefits professionals
develop effective global programs for
assignees? This article discusses the 10
Traditional Long-Term Expatriation
Localized Transfer
“next practices” that define new
Relocation from one country to another
Cross-border move in which the
approaches and recommendations based
for the length of the assignment
employee ultimately is moved to
on research from Emerging Trends in Global
(more than one year).
permanent status.
Mobility: The Assignee Perspective, an
in-depth study conducted by Cendant
Extended Business Travel
International Commuting
Mobility with the Atkinson School of
Employee does not relocate, but travels
Employee works in one country of
Management, Willamette University, and
regularly to the assignment location.
assignment and commutes frequently
co-sponsored by the Society for Human
to the home country.
Resource Management. The study’s sample
Short-Term Assignment
included 548 globally mobile employees
Relocation from one country to another
from 43 countries on assignment in 52
for the length of the assignment
host countries. Two main objectives of the
(six months to one year).
study were to explore the impact of different
Definitions of International Assignment Types
30
workspan 10/04
While assignees reported feeling strongly that companies
should avoid hazardous situations when possible, they also
stated that their safety and security could be bolstered
through a well-established hazard management program.
Respondents welcomed programs that would include risk
assessment and training for employees and families on handling
hazardous situations, information and communication,
protective services and empowering employees and locals to
handle these situations.
Practice 2:
Make Strategic Choices on Global Staffing
Options Based on Assignment Goals
On average, more than 90 percent of assignees rated their
assignment as either moderately helpful or very helpful for
professional growth. However, if the company’s purpose is to
develop employees’ leadership and manager skills and to
transfer knowledge to the local operation, long-term expatriation
is still most appropriate, as most long-term assignees rated
the growth in these areas higher. If the company’s goal is
simply to fill a skills gap and get the job done, an alternative
type of assignment may be more appropriate.
Practice 3:
Consider — and Align — Motivations
A gap between organizational and assignee motivations exists
where global assignments are concerned: Assignees reveal
that companies are focused on “getting the job done,”
developing local operations and employees and developing
assignee career and global competencies. In contrast, assignees’
main reasons for taking global assignments focus on their
overall interest in the opportunity and for career development
purposes. Significantly, few respondents (1.8 percent) accept
assignments for increased compensation, and even fewer
respondents do so for increased benefits. Because companies
FIGURE 1:
Practice 4:
Maximize Assignee Experience
With almost half of all respondents (45 percent) indicating
that their current assignment is not their first, it is clear that
companies are putting assignees’ international experiences to
use in subsequent assignments. Findings also confirm that
businesses may be increasingly turning to alternative
assignment types to fulfill their mobility objectives.
As companies continue this trend, they should remember
that assignees on some forms of alternative assignments are
somewhat less likely to accept another assignment in the
future due to their current role. (See Figure 1.) This probably is
due to related findings in the study that reveal alternative
assignment types experience a lower quality of life in some areas.
What happens after the assignment also is critical in
maximizing assignee experience. Companies should identify
employees who have completed successful assignments and,
upon their return, utilize their competencies by either
sending them on another global assignment or using the
knowledge and experience they have gained to mentor
first-time assignees — a strategy that could prove to be an
antidote to assignee attrition or repatriation problems.
Practice 5:
Recognize the Importance of Family
While many assignees feel the quality of life improves for
their family members/significant others in certain areas while
abroad, they also are well aware of the potential effects that
assignments have on the home front, listing their most
significant challenge as “family adjustment.” In light of this,
THE LIKELIHOOD OF ACCEPTING A FUTURE ASSIGNMENT BASED ON WORLD EVENTS
All Global Assignees
Less likely to accept ..............13%
More likely to accept ............21%
About the same ......................66%
have multiple expectations but share assignees’ desires for
personal and professional development, focusing on those
desires and sustaining them accordingly will align the goals of
both parties and contribute to successful assignments.
Based on Current Assignment Experience
All Global Assignees
Long-Term Expatriate
Alternative Assignees*
Less likely to accept
12%
11%
15.2%
More likely to accept
51.3%
57%
38.5%
About the same
36.7%
32%
46.3%
* “Alternative assignees” combines all assignees not on long-term expatriation, including short-term assignments,
localized transfers, international commuting and extended business travel.
workspan 10/04
31
companies should recognize the value of educational, language
and cultural support for families/significant others as a
means to a more successful experience.
Category 6:
Consider Assignees’ Overall Happiness
Employees on traditional long-term expatriation assignments,
short-term assignments and localized transfers have a higher
quality of life in certain areas compared with those who are
commuting internationally or on extended business travel.
According to the survey results, some of the primary reasons
are found in the housing conditions, in which a lower quality
of life for international commuters and business travelers
may occur due to the association of these assignment types
with hotel and other temporary stays. The other three types
of global assignments are associated, in most cases, with
establishing a home in the host country, promoting a higher
level of comfort, more contact with the immediate family and
less stress from traveling.
Practice 7:
Offer Services in Line with Assignment
Goals and Assignee Needs
The findings indicate that companies continue to take care of
the necessary tactical details of the international relocation,
the so-called “hard services” (e.g., shipment and storage, tax
compliance and visa/immigration services). However, they
are less likely to provide the “soft services,” such as assignees
selection and repatriation, despite the fact that this type of
service is more in line with:
• The reasons why employees are sent on assignment
• The skills employees need to generate assignment success
• Employees’ major motivations for accepting assignments in
the first place.
For example, if companies offer assignees more coaching
and mentoring, employees may feel they are still productively
developing their careers even if the work itself is less rewarding.
Practice 8:
Improve HR, Internet and Employee Assistance
Program Use at the Appropriate Time
Assignees indicate they tend to turn to host- or home-country
management, their families and peer groups for support on
most assignment-related issues, as opposed to home- or
host-country HR. This finding certainly is due to business
and geographic realities, but also may indicate that assignees
view HR as dealing more with tactical issues. HR has an
opportunity to better align its scope and services to support
the international assignee throughout the assignment.
Practice 9:
Develop Tracking for Assignees
on Alternate Assignments
The trend toward alternative types of assignments, documented
in Cendant Mobility’s 2002 Worldwide Benchmark Study:
New Approaches to Global Mobility and reflected in this article,
clearly continues. Yet, equally clear based on the sample
development in this study, HR practitioners may have trouble
identifying employees on alternative assignment types,
indicating that companies tend to have poorer tracking
mechanisms for alternative assignments and assignees than
for long-term expatriates. Tracking alternative-assignment
employees should be a shared responsibility among HR, line
management and the business unit, as the number of days
per year that these employees are abroad has both tax and
visa status implications.
Practice 10:
Develop Metrics to Measure True
Cost/Benefit of Assignment Types
Employees on alternative assignments need and receive fewer
relocation services than those on traditional long-term
expatriate assignments, and industry practitioners seem to
broadly perceive that alternative assignments are less
expensive. However, there is no evidence with regard to real
cost differentials of different assignment types. With HR
taking a lead role, it may be in a company’s best interests to
at least begin discussing not only how to track alternative
assignment types, but also how to put measurement tools in
place to uncover their true benefits, costs and human
performance and productivity results.
ABOUT THE AUTHOR
Jacqueline A. Hauser, CCP, is vice president of consulting for Cendant Mobility and has been a
WorldatWork member since 1995. She can be reached at [email protected]
or 203/205-1569.
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