INTERNATIONAL REMUNERATION
New research studies on expatriate policies
Soaring assignment costs have prompted many companies to question their use of expatriates. But many are left with little alternative but to fill their overseas jobs in this way. A clutch of new reports offers a useful snapshot of current practice and thinking.
Four out of ten respondents to a survey by the Industrial Society employ expatriate staff. Among the key findings of the research are these:
The vast majority of expatriate assignments — almost nine in ten — last one to three years.
Only half of the organisations employing expatriates take dependants into account during the selection process. But organisations rarely interview spouses or partners — only 10% do so, according to Industrial Society figures.
Organisations are most likely to pay international supplements for relocation (reported by 93% of respondents), education (81%), storage (76%) and home leave (73%).
Non-standard assignments growing in popularity
Organisations are increasingly making use of non-standard assignments and the trend is set to gather pace, according to PwC, the consultancy. Around six in ten survey participants said short-term assignments were on the increase in their businesses, while two-fifths mentioned commuting.
Over the last ten years the growing use of commuter assignments as an ad-hoc response to employee reluctance to uproot their family has become more common. Today we are seeing more virtual assignments, says PwC.
In one sense, the arrangements are not new, however, the growth in numbers and their application to a wider range of roles represents a strong departure from past practice.
Few employers measure success or failure of assignments
Less than a third of participants (29%) in a William M Mercer survey evaluate the effectiveness of their expatriate assignments. The main measurement tool is the annual performance appraisal, though a quarter also conduct opinion surveys amongst their expatriate population and line managers.
Mercer also found that only six in ten measure the cost of expatriate assignments.
Want to know more?
Industrial Society
Title: Managing expatriates , Managing Best Practice, no. 77, November 2000.
Methodology: The 64-page report is based on responses to a survey questionnaire sent to 5,600 human resource specialists in July 2000. Includes six case studies: Aventis Pasteur MSD Diageo Ford HSBC IBM Shell.
Sample size: A total of 291 replies were received — a response rate of 5.2%.
Business sectors: The survey is broadly representative of regions, sectors and size, but is not a scientifically structured sample of the economy.
Availability: Industrial Society subscription enquiries, tel: 0870 400 1000, or for editorial enquiries contact Cecilie Bingham, tel: 0207 479 2127.
For more information about the Industrial Society . . . www.indsoc.co.uk
PricewaterhouseCoopers
Title: Managing a virtual world: key trends 2000/2001.
Methodology: survey of 82 leading organisations, employing 24,500 international assignees.
Availability: contact John Ross, partner — global human resources solutions, tel: 020 7212 6151, or email john.c.ross@uk.pwcglobal.com
For more information about PwC . . . www.pwcglobal.com
William M Mercer
Title: Expatriate risk management survey.
Methodology: Survey of 104 companies, of which 26% had headquarters in the UK.
Availability: contact Terrie Hughes, tel: 01753 848031, email terrie.hughes@uk.wmmercer.com.
For more information about William M Mercer . . . www.wmmercer.com
Take a look at a summary of the key results . . .
www.wmmercer.com/uk/english/resource/resource_news_topic110.html