Global Employee Mobility – Increased Diversification across Types of International Assignments Used
December 01 2015 - 10:00AM
Business Wire
- Increased variety in type of
assignments and in policy approach
- Number of female assignees increase by
6% percentage points on average since 2010
- Dual career and cost key barrier to
mobility, but less so compared to 2012
- Increased use of wider definition of
‘spouse’ to cover same sex couples in benefits arrangements
A majority of multinational companies (56%) expect to increase
their use of short-term assignments in 2015/16 according to a
report on expatriate policies and practices by Mercer - a global
consulting leader in advancing health, wealth and careers. The
research highlighted an ongoing diversification in the type of
assignments used by companies. Notably, over the next year or so,
around half of companies anticipate an increase in the use of
permanent transfers (54%), developmental and training assignments
(50%) and locally hired foreigners (47%). A smaller proportion of
respondents (44%) expect to see an increase in more traditional
long-term assignments.
“Companies are using a more varied range of assignments in order
to respond to evolving business needs and changing patterns in the
global workforce,” said Steve Nurney, Partner and Leader of
Mercer’s North America global mobility business. “The increased
diversification of assignment types adds complexity which can
result in potential compliance and policy challenges for HR and
mobility directors. However, it also creates opportunities to
positively impact the overall business strategy by mobilizing key
resources in more flexible and cost effective ways.”
Mercer’s Worldwide Survey of International Assignment Policies
and Practices report covers 831 multinational companies with
approximately 29 million employees combined. It found that over
half of companies increased their use of short term (51%) and
permanent (50%) assignments over the past two years – whereas only
43% increased the use of long-term assignments. Globally, 85% of
companies have a policy or policies in place for international
assignments (up from 81% in 2012). The report also noted a marked
increase in companies with multiple policies (64%, up from 57%), a
consequence of the diversifying trend in assignments. “One policy
is unlikely to fit all, and such an approach can lead to inadequate
compensation which again can make it difficult to attract and
retain talent. Implementing fit-for-purpose policies, to suit both
different assignees and assignments, can be a highly efficient
cost-saving initiative for most global mobility functions,” said
Mr. Nurney.
Assignment drivers, obstacles and demographics
The top five drivers behind international assignments are; to
‘provide specific technical skills not available locally’ (47%), to
ensure ‘know-how transfer’ (43%), to provide ‘specific managerial
skills’ (41%), to facilitate ‘career management and leadership
development’ (41%) and fulfil ‘specific project needs’ (40%). In
the future, 57% of companies expect the number of key or strategic
assignments to increase, 51% expect to deploy a higher number of
younger assignees and 41% anticipate more assignments to remote
locations. Companies reported the highest expected increase in
assignments to be deployed to US, China, UK, Singapore and
Brazil.
‘Dual career’, i.e. the challenge of effectively helping to
manage the career aspirations of the spouse, and ‘family issues’
are cited as the main barriers to employee mobility, with 37% of
respondents citing these issues combined as a large or very large
obstacle. The ‘cost of current conditions’ ranks as the second
highest obstacle (35%), followed by ‘hardship considerations’ (25%)
and ‘career management’ (23%). Notably all obstacles scored as
significantly less important than in the previous survey,
suggesting companies are implementing proactive measures to
overcome these issues.
“With the increased use of alternative assignment types such as
commuters and short term assignments, companies are by-passing some
of the major obstacles to mobility,” said Mr. Nurney. ”Employees on
these assignments are less likely to bring the family along,
allowing the spouse to continue working in the home country and
saving the company the cost of relocation. However, these
assignment types can come with significant compliance challenges,
and it is imperative that companies monitor these assignees
carefully for tax, social security and immigration purposes.
Failure to do so can expose both the company and employee to
serious legal and financial penalties.”
The proportion of female expatriates has increased somewhat,
with the worldwide average participation standing at 15%, up from
12% in 2013 and 9 % in 2010. Age-wise the majority of long-term
assignees (66%) are between 35-55 years old, whereas short-term
assignees are increasingly younger, under 35 years old (48%, up
from 45% in 2013). With an average of 10% and 7% representation in
long and short term assignments respectively, the over 55s remain
very underrepresented in a mobility context. Looming skills
shortages as a result of an ageing population is likely to change
this picture over time.
Mr. Nurney continued: “The statistics on female assignee
representation are clearly not representative of the workforce at
large. Companies would do well to review their candidate
identification and selection procedures, as well as the benefits
provided under international assignment policies, to ensure there
is nothing overt nor implied which is restricting the deployment of
female talent.”
About Mercer
Mercer is a global consulting leader in talent, health,
retirement and investments. Mercer helps clients around the world
advance the health, wealth and performance of their most vital
asset – their people. Mercer’s more than 20,000 employees are based
in more than 40 countries and the firm operates in over 130
countries. Mercer is a wholly owned subsidiary of Marsh &
McLennan Companies (NYSE:MMC), a global professional services firm
offering clients advice and solutions in the areas of risk,
strategy and people. With 57,000 employees worldwide and annual
revenue exceeding $13 billion, Marsh & McLennan Companies is
also the parent company of Marsh, a leader in insurance broking and
risk management; Guy Carpenter, a leader in providing risk and
reinsurance intermediary services; and Oliver Wyman, a leader in
management consulting. For more information, visit www.mercer.com.
Follow Mercer on Twitter @Mercer.
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version on businesswire.com: http://www.businesswire.com/news/home/20151201006158/en/
MercerMiriam Siscovick, + 1
206-356-8549miriam.siscovick@mercer.com
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