International Assignments - observations and trends

In a recent discussion with global mobility colleagues we discussed some of the differences we had observed in international assignments over the past 12- 18 months. As well as those things that continue to stay the same. I was interested to see if our observations were a Sydney/Australia-specific phenomenon or indicative of wider trends so reviewed some of the surveys from this year.

We've noticed a changing demographic

The surveys did not have a conclusive response to this observation. While we have observed an increase in the numbers of younger assignees this was not consistently reflected in the surveys. The Brookfield 2012 Global Relocation Trends Survey reported on a "marked jump from last year of employees aged 20-29 (13%)… While the age most represented continues to consist of those in the 40-49 year old group (34%)… this year's important increase in the youngest age group provides an additional sign of improving economic conditions and optimism."

In contrast the 2012 Trends in Global Relocation Survey from global relocation services company Cartus Corporation, reported "The profile of today's assignee is shifting from the younger, single employees who were more prevalent just two years ago. Companies surveyed this year said that 48% of their transferees would probably be in the 40+ bracket – a 37% increase compared with 2010."

My colleagues and I had also observed an increase in the number of women assignees, a trend that was supported by both the surveys referred to above.

We've observed an increased use of CCT

Both surveys reported a push into developing markets, the BRIC (Brazil, Russia, India and China) countries, Eastern Europe, Africa and South East Asia. The KPMG 2012 International Assignment Policies and Practices Survey interestingly reported that "over two thirds of companies reported that they had sent assignees for the first time to a new host country." New locations and less developed locations create cultural challenges for assignees.

This, plus recognition of the value in such training, may be the factors behind an increase reported in the Brookfield survey of the number of companies providing cross-cultural training. "Companies continue to recognize the importance of cross-cultural training and this year, 81% of respondent companies indicated that cross-cultural training was available for some or all assignments. Thirty-seven percent (37%) noted that it was available for all assignments, which is the second highest percentage since the question was first introduced in 2005. Sixty percent (60%) of respondents make the benefit available for the assignee and the entire family, tying with one other year for the highest since the question was first asked and sitting a full 18% above the historical average of 42%."

This is encouraging data for those of us who are aware of the research links between high cultural intelligence and assignee effectiveness as well as partner satisfaction. A research finding that is not just relevant for developing countries but also true for those countries with lower cultural distance where the unexpected and unanticipated cultural differences create challenges.

We've noticed an increased interest in on-line CCT

As I talk with companies about www.cicollective.com (on-line expat support and e-learning to develop cultural intelligence for all the family) many are interested and some have been exploring on-line options. Brookfield reported, "36% of respondents include media-based or web-based alternatives to face-to-face training programs. The historical average was 27%. 23% used cross-cultural programs as additional support to reinforce in-person programs; 23% used them as a stand-alone alternative to an in-person program; 23% used them for portability (anywhere/anytime); and 9% for cost (less expensive)."

And yes one of the core findings from all three of the surveys referred to above, was a continuing push to reduce costs of assignments.

Some of the same old problems still troubling

In our discussion we observed that the same old problems continue to be an issue if not managed well and include high expectations and a sense of entitlement from some expatriates and the continuing challenge of family adjustment.

Brookfiled noted, 'Family and spouse/partner issues remain as critical challenges to assignment success. Like last year, the top critical family challenges identified were spouse/partner resistance, along with family adjustment and children's education. Respondents indicated that the top reasons for assignment failure remained the same as last year, with family concerns far outweighing all the rest at 34%, followed by spouse/partner career at 17% and compensation and benefits and career aspirations at 14% each.'

While Cartus observed about assignment failure; 'Though companies always differ in how they define and attempt to measure this variable, employee and/or family inability to adapt to the host location has always figured prominently among the reasons given. This year, a new reason led the pack–47% of respondents listed "changing business conditions" as a reason for the failure. …. Interestingly, when respondents looked forward to factors expected to play the most significant role in assignment failure in the future, failure of the spouse to obtain employment outranked all others, with 40% listing it as a significant concern and a higher percentage listing it as a "real threat" than any other issue. This may reflect the influence of emerging markets, where even traditional networking and volunteer avenues may be limited or nonexistent. This is reinforced in survey responses that indicated that of family issues having a significant impact on the ability to attract employees to new assignments, lack of spouse/partner opportunities was number one.'

So what are your experiences of what has changed and what has stayed the same in overseas assignments?

And if you want to discuss how we can help your assignees and their partners with cross-cultural training, coaching and on-line e-learning and support please contact me.

Survey sources

Brookfield GRS 2012 Global Relocation Trends Survey
http://www.brookfieldgrs.com/knowledge/grts_research/grts_media/2012_GRTS.pdf

Cartus 2012 Trends in Global Relocation Survey
http://eura-relocation.com/storage/downloads/Cartus%20Report%202012.pdf

KPMG 2012 International Assignment Policies and Practices Survey
http://www.kpmg.com/CH/en/Library/Articles-Publications/Documents/Tax/pub-20120913-assignment-policies-practices-survey-en.pdf