2. Agenda
• Global Relocation Trends
• The Changing Face of Global Mobility
• Assignee Perspective
• Why do we need a Relocation Policy?
• What is an IAP?
• IAP Trends
• Questions
3. Global Relocation Data
HSBC Expat Explorer 2012
3000 expats surveyed
UK ranked 29th place
Crown Relocations - Permits Foundation Survey
Due to concerns of International staff partner’s employment or career.
22% turned down an assignment
7% terminated an assignment early
Brookfield Global Relocation Services - 2012 Expat Global Data Survey
Top destinations (most frequently selected)
1. USA
2. China
3. UK
4. Singapore
4. Main Causes of Assignment Failure
2% 3% Employees leave to another company
3%
3% 19%
Spouse/Partner dissatisfaction
4%
Family Concerns
8% Poor Performance
Inability to adapt
Job did not meet expectations
10% 17%
Candidate selection
Poor assignee management
Quality of life
10%
11% Security and safety
10% Renumeration
Other
2012 expat global data survey - Brookfield Global Relocation Services
5. Critical Family Related Issues
(ranked as critical/100)
Spouse/Partner Dissatisfaction
10% 3%
11% Family Adjustment
48%
Childrens Education
12%
Difficulty of Location
Cross-Cultural Adjustment
21%
Inability to speak the Language
Spouse/Partner Career
38% Length of Assignment
35%
2012 expat global data survey - Brookfield Global Relocation Services
6. Reasons for Early Assignment Return
Family Concerns
20%
Complete Assignment Early
33%
Accept a New Position in Co
3%
Career Concerns
3%
5% Cultural Adjustment Challenges
Security Concerns
Other
17%
19%
2012 expat global data survey - Brookfield Global Relocation Services
7. Top 7 Most Difficult Assignment Locations
2012
China *
India *
Russia *
Brazil
Saudi Arabia
UK
USA*
(*Top 4 countries cited with the highest assignment failures)
2012 expat global data survey - Brookfield Global Relocation Services
8. The Changing Face of Global Mobility
• Expansion of the BRICS
• Shortage of top talent
• Changing assignment types, packages and
destinations
• Professional profile change: GenY, working women,
dual career couples, older workers
• Needs change: dual career issues,
spousal career support, lifestyle/education disruption
• Cost reduction initiatives
9. Assignee Perspective
• International assignment complexity
• Relocation Challenges
• Integration of Services
• Family Issues
Cultural Adjustment Curve
10. Why do you need an IAP?
IAP/OAP – International (Overseas) Assignment Policy
• Consistency
• Equity
• Cost Control
• Transparency
• Aid Communication
• Manage Expectations
83% - Companies have an HQ Global Approach to assignment policy
96% - Long term assignment policies
86% - Short term assignment policies
11. Objectives of an IAP
• Cover all transfers
• Equitable
• Understandable
• Competitive
• Easily administered
• Cost effective
• Tax efficient
• Covers expat cycle
12. How do you create an IAP?
• Assemble a Policy Development Team
• Conduct Benchmarking (Internal/External)
• Draft a Policy Structure
• Test Your Ideas
• Finalize and Implement
• Continually Evaluate and Improve
Remember the GOAL: To achieve business objectives by having the right
talent, in the right places, at the right times, doing the right things.
13. What does an IAP include?
Remuneration – base salary, performance bonus, retirement benefits,
medical, car/allowances, vacation, sick leave
International Allowances – mobility premium, Cost of living (COLA),
Housing , Schooling, home leave, relocation expenses, pre-assignment trip
Support Services – orientation briefing, cultural training, language,
home search, school search, dual career, career management
81% of Companies offer cross-cultural preparation
36% have a localization plan
14. IAP Trends
• Trimming back packages
• Review of hardship destinations
• Use of Company housing
• Hands off home housing
• Allowances rather than shipping
• Tax efficiency
• Changing payment systems
The overall trend today is moving towards “self-service”
From a ‘one size fits all’ to flexible policies and Localisation
