companies strive to provide their internationally transferring
employees with an improved relocation experience – while still
controlling costs – they are seeing the need to build more flexibility
into their mobility programs.
76% of this year’s survey respondents reported an increase in the need for flexible approaches to job transfers, driven increasingly by generational needs and changing expectations, as well as by cost concerns.
2. Cost Control Becoming the “New Normal”
Since 2010, survey respondents report that while their companies’ cost control pressures aren’t necessarily increasing, they aren’t decreasing either. This leaves them with a “new normal” in terms of cost control focus. What is changing is how they are seeking to trim those costs.
3. Compliance Issues are a Growing Concern for Companies
Seventy-nine (79) percent of survey respondents stated that their organizations’ focus on compliance has increased in the past two years. As this focus shifts, it’s important for companies to consider their level of care for employees who “don’t know what they don’t know” about tax, legal and immigration compliance, as well as safety and security, and even appropriate preparation prior to undertaking an international assignment.
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Matt Spinolo, EVP Global Client Services, Cartus Corporation:
“For the last 14 years, Cartus has been doing research with hundreds of our clients around what employers and international assignees need to have for successful global programs. This year our Global Mobility Policy and Practices Survey highlights the ongoing challenges and conflicts of cost containment and flexibility. These areas of concern have been growing since the most recent recession, and IT-driven mass customization came onto the scene at about the same time.”
“Rounding out our top three challenges, compliance is again in the spotlight. While continuing deployment of IT resources and methods has helped employers understand more of what is going on, and has helped employees deal with new and novel experiences, it has also helped tax and immigration authorities to know who is where, when, and for how long. More data means more information, more guidance, and more compliance reporting.”
“The high prevalence of permanent (one-way) global transfers among companies potentially indicates a growing recognition of the importance of global work experience, especially among Millennials, who appear willing to get the experience in other ways than the traditional long-term ‘expat’ package.”
Bill Sheridan, Vice President, IHR Services, National Foreign Trade Council:
“The continued focus on managing costs, regardless of industry, is a theme we constantly hear from our members. The focus on cost makes it even more important for companies to pay attention to return on investment, including preventing employees from leaving companies once they repatriate. Companies need to see assignments as an investment for the enterprise as well as for the expatriate.”
“It’s interesting to note that, despite the fact that they are the most costly assignment type, long term assignments are still of major importance, especially as enterprises expand into new markets in Africa, Southeast Asia and other wide ranging locations.”
Alison Sedney at 203.205.3739
LisaMarie DeSanto at 203.205.8544