| INTERNATIONAL REWARD Global firms looking to curb expat costs Employers are expecting to increase the number of both long and short-term international assignments, but many now see cost containment as a key priority, according to survey by PricewaterhouseCoopers. Despite 11 September and the more unsettled economic climate, three-quarters of organisations in the PwC survey forecast an increase in their expatriate workforce. As the report explains: Corporate restructuring on pan-European rather than national lines, ongoing European economic integration and demographic changes, such as the ageing of the European workforce, have all been identified as drivers for the anticipated increase in mobility. Is this the end for lucrative expat deals? Among the 273 companies surveyed, 80% reported that keeping a lid on expat costs was a key priority. Says PwC: As the global economy continues in troubled economic waters, it is likely that the issue of cost will remain high on the agenda for businesses. However, a simplistic drive for lower costs should not obscure the benefit analysis for an international move. There is often a higher return for the business from a relatively expensive move. Business are tackling cost reductions in a number of ways, including:
A final word The driving force of globalisation is resulting in a greater level of business conducted on an international basis. Technology is enabling companies to aspire to a greater global reach and thus expand their customer base. Within organisations, the role played by internationally mobile employees has always taken on a variety of guises, but there is now a growing measure of explicit recognition, for example through written policies. — PricewaterhouseCoopers. Want to know more? Title: International Assignments Global Policy and Practice: Key trends 2002, PricewaterhouseCoopers. Methodology: Continuous survey undertaken by PwC which can be updated online as policy and practice change. Sample size: Information was provided by 273 companies, employing almost 70,000 expatriate workers. The participating organisations are headquartered in 17 countries, with strong participation from the US, UK and Germany. The average expatriate population size is 258. Availability: You can download a 32-page summary report in PDF format, free of charge, on the PwC web site . . . www.pwcglobal.com/uk/eng/about/svcs/hrc/key.html If you would like more information about the issues raised in this report, or would like to participate in this ongoing survey, contact David Hopkins or Nichola Kirby in the London office of PricewaterhouseCoopers, tel: 020 7583 5000 or email david.a.hopkins@uk.pwcglobal.com or nichola.kirby@uk.pwcglobal.com. Posted 11 June 2002 |