International study shows employees are on the move

A recent survey has revealed that international assignments of all types are still very much on the increase*. Companies are making their employees more mobile in a bid to remain competitive and flexible in the global marketplace. This trend is expected to continue in the next three to four years, with the highest rises seen in short-term and commuter assignments.

The results are from questionnaires by companies including Fiat, Lloyds TSB Bank Plc, Kellogg Company and Shell International Ltd., who represent a wide cross-section of global industry groups.

Sharp rise in short-term assignments

The findings show that the use of short-term assignments (which tend to be from several weeks’ to a maximum of 12 months in duration), have seen a 20% increase in the past five years up to 78% of companies. And 67% of companies expect the number to further increase in the next three to four years. Commuter assignments (which usually involve the employee working abroad during the week and returning home at weekends), are also on the increase, with 55% of participants expecting to increase this type of assignment in the next three to four years.

Technology aids flexibility

Alternatives to traditional contracts, such as short-term assignments, commuter assignments and virtual assignments, are giving companies the flexibility they need to manage their international operations. Developments in communications and information technology have enabled a more flexible approach in working practices to enhance mobility, transfer knowledge and build multi-national management structures. Employees can use web-enabled and audio-visual technology to access information and manage operations between countries. It is no longer necessary for employees to be posted in one location continuously for over a year.

The most commonly cited reason for creating short-term assignments is that the operation abroad is expected to take less than a year (e.g. commissioning a plant, negotiations, marketing, transfer of skills etc). Other reasons given in the survey include that short-term assignments make international mobility more attractive by causing minimum disruption to family life, and that they enhance the employee’s career development.

The HR challenge

This continued increase in international mobility is presenting greater and greater challenges to today’s HR professionals, who are managing the assignments and organising employee relocation. These issues have prompted BUPA International - the world’s largest expatriate health insurer - to develop a new guide called ‘On the Move’, to help HR teams cope with managing expatriate workforces. The complimentary guide covers the entire relocation process, from tax to childcare, removals to dual careers, with an employee checklist and recommended points of contact for each issue involved.

Help from BUPA International

BUPA International has over 27 years’ experience in the global health care market and an international network of 4,000 participating hospitals. The company has over 200,000 members in 190 countries worldwide, and works closely with HR personnel to provide flexible group schemes and administrative support. Bill Ward, Managing Director said; ‘Our experience in the global marketplace put us in an ideal position to produce this guide and provide a helpful source of general information to HR staff. The results of this survey point towards a need for greater HR support and we are confident that ‘On the Move’ will be well received.’

* Expatriate Salary Management Survey 2001, compiled by ECA.