INTERNATIONAL REWARD
Growth in short-term expatriate placements
Employers are increasingly opting for short-term placements, which are less costly than long-term assignments and offer more flexibility, according to a study conducted by Mercer Human Resource Consulting.
Covering more than 35,000 employees in over 220 multinational companies worldwide, the survey found that nearly four in ten businesses (39%) have increased their use of short-term business assignments.
"Long-term assignments are not only costly, they can be difficult to arrange and often raise family issues for the expatriate," said Anne Rossier-Renaud, senior researcher at Mercer. "Adjusting to a new location and culture can be a real challenge for expatriate families. Short-term placements are more project-orientated, and tend to offer greater flexibility."
Housing and living allowances
Mercer found that almost half of the participants (47%) provide expatriates with free housing. Just over a third of companies (34%) help employees to sell their house in the home country.
For employees on short-term assignments, more than six in ten companies provide an allowance to cover daily expenses. Restaurant meals, public transport, phone calls and laundry are covered by this allowance.
Expatriate premiums
Mobility and hardship premiums continue to play an important role in encouraging employees to go on assignment. The vast majority of survey participants (78%) said that, at present, they do not intend to change mobility premium levels, though over a fifth (21%) said they had already decreased mobility premiums to and from Europe and North America in the past three years.
According to the survey, 11% of participants, including 21% of US firms surveyed, expect hardship premiums to increase for assignments in the Middle East. This finding reflects the growing concern about security in the area. Conversely, 24% expect a decrease for placements in China and 13% expect a decrease for assignments in Eastern Europe.
Family support and home leave
Under half of the participants (45%) include spouse support in their international assignments policy, whilst nearly a quarter (24%) handle spouse issues on a case-by-case basis. As many as 39% consider career counselling an important part of their spouse support. Additionally, more than seven in ten (72%) believe language training is essential.
Three-quarters of participants (75%) provide home leave at least once a year. For short-term assignments, 60% pay for at least three trips a year.
Almost six in ten companies (58%) provide additional return trips for employees with children in the home country, while 30% pay for children to attend boarding school in the home country.
A final word
"Companies need to ensure they get the best return on their investment in international business assignments, particularly in tough economic times. The trend towards short-term placements isn't surprising given the substantial costs associated with longer assignments." -- Anne Rossier-Renaud, Mercer Human Resource Consulting.
Want to know more?
Title: International Assignments Survey 2003, Mercer Human Resource Consulting.
Availability: To purchase your copy, visit www.mercerhr.com/internationalassignments or tel: +41 22 869 3000.
Mercer Human Resource Consulting "helps organisations create measurable business results through their people". It has more than 13,000 employees serving clients in some 40 countries worldwide. To find out more visit www.mercerhr.com
Posted 21 November 2003