International Assignments Policies Explored

With the recession taking hold, maintaining best practice in relocation presents an even larger challenge than usual. Interestingly, there appears to be little reduction globally in the use of international assignments, but there were signs of a downturn in the number of inbound assignments to the United Kingdom.

Strategic implications for policy

The force on international assignment policy of this trend has not yet been felt, but it seems that greater importance should be paid to sustaining outbound mobility. There is evidence of more project-based moves, suggesting that key skills are not available locally, and thus highly-skilled expatriates are in demand - with consequent strengthening of their bargaining power in terms of their requests for appropriate remuneration and benefits. There is also a rise in temporary moves - as exemplified by commuter assignments. This implies that attention needs also to be paid at the strategic level within policy, to ensure that remuneration, benefits and support services are tailored to this form of 'flexpatriation'.

A key area of debate regarding policy design and review lies at the strategic level. More attention should be paid to this in the current climate. This will entail consideration of strategic focus - where is the organisation going, and how does it plan to get there?

Expat assignments are expensive. The average cost of employing an expatriate is three times home country costs. If there is no downward trend in expatriate usage, careful attention needs to be paid to cost-benefit analyses. Costs can be minimised through careful planning - particularly in terms of tax efficiency - through the timing of assignments and the delivery of benefits in the most tax-efficient manner. Financial planning is also about ensuring return on investment (ROI). Key performance indicators (KPIs) need to be set out for each assignment, with steps taken to monitor and measure throughout. ROI also hinges on taking a perspective on talent and managing it effectively throughout the expatriate cycle.

A Global Mobility policy should encompass all aspects of the expatriate cycle, right trhough from selection to repatriation. Unfortunately, any hope of ROI in talent and recouping the costs of an expatriate assignment can all too easily be thrown away through poor repatriation management. This is an aspect of the cycle that need not involve expensive allowances, and the provision of tailored support and communication prior to return can pay dividends.

For further information about international assignments and expatriate assignment policy, please visit Re:locate Magazine at http://www.relocatemagazine.com/index.php/articles-by-category/38-relocation/696-international-policy-design-and-review

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International Assignments Policies Explored