Category Archives: Relocation

Expat Selection: It’s Not Just Skills

Posted on December 2, 2009 by | 4 comments

Author:
Bruce Alan Johnson and R. William Ayres – Bruce Alan Johnson Associates (Pty) Ltd

Bruce Alan Johnson

Bruce Alan Johnson

Bill Ayres

[Editor’s Note:  We are happy to welcome Bruce Alan Johnson and Bill Ayres as Guest Authors.  Bruce and Bill have extensive experience working with companies to help understand how business is conducted in different cultures.  They are the co-authors of the book Carry a Chicken in Your Lap: Or Whatever It Takes to Globalize Your Business]

A large American corporation sent a senior executive to reside in an African country known for its wide religious tolerance, as the general manager of the company’s regional operations.  Managerially speaking, the man was qualified. But he brought with him a zealous sense of religious superiority that manifested itself as rigid intolerance.

In his first week on the job, he screamed at Muslims who were in a corner observing one of the five prayer times of the day, and then at Sikhs whose heads were traditionally wrapped.  By the next week, more than a hundred employees had walked off the job.  Some of them brought in government authorities to the site.  In the meeting that followed, the executive said that he would accept crosses as jewelry and pins, but no other expression of religious identity!  Even though the officials tried to explain the supreme importance of religious diversity in their country, the response was an arrogant assertion of “rights” that the executive claimed he had.

Of course he had no such rights, and a week later the government informed the American corporate headquarters that this executive would have to be removed at once, or all government contracts with that company would be canceled and official hearings would be held for the aggrieved workers.  He was recalled, another casualty of the mistakes companies make in sending the wrong people overseas.

Cultural Fit is Important in Expat Selection
Every time we talk to an audience about sending people overseas, we start with one fundamental point: not everybody can do this. Not everybody will be successful in Copenhagen just because he or she did well in Cleveland or Calgary. Furthermore, no magic, single thing guarantees success. The world is a complex place. It would be surprising if we didn’t need complex abilities to deal with it.

But what if you’re coming the other direction—sending people to the United States?  Over the years it has become quite plain that the most costly mistake made by companies sending people to the US has been the blind belief that there are dollar signs instead of “S’s” in the name United $tate$.  The second error lies in believing that a country as stunningly diverse as America is in fact an homogenous market.  America is not just 50 states—it spans 11 time zones, from the westernmost tip of Alaska to eastern tip of Maine.  And its people are so diverse in culture and outlook that domestic companies usually take great care to make sure that the right Americans are matched to the appropriate areas of the country for sales and marketing.  A person who sells successfully in Mississippi will almost certainly be rejected by the more harried residents of New York.

Recently a Middle Eastern company of considerable wealth sent a two-member team to New York City to head their American office.  Not only had neither member of the team ever been to America—both made vehement anti-Semitic remarks almost every day.  Needles to say, they were strongly resented by most New Yorkers, and failed completely.  They were recalled at considerable expense, the company’s reputation in the States tattered.

HR Should Take the Lead!
When it comes to finding the right people—and avoiding the wrong ones—human resources needs to play a critical role.  The reason is simple. Understanding the keys to choosing the people most qualified for overseas assignments is something that most line managers aren’t well equipped to do. Managers’ primary purpose is to get the job done.  Often, this does involve deciding who’s going to do what.  But in the international arena, those decisions are not based on how well you know the technical field or the business goals. They’re based on what you know about your people.

This is where HR can and should play a key role. Arnold Kanarick, who headed HR at The Limited and Bear Stearns, pointed out, “HR isn’t about being a do-gooder. It’s about how do you get the best and brightest people and raise the value of the firm.” Good HR offices are staffed with trained professionals who know how to evaluate aspects of a company’s people to assist tremendously in choosing the right people to send overseas.

To do that requires recognizing a fundamental reality: the world is a very complex place that does not lend itself to packaged solutions.  The primary challenge is finding people who can deal with differences—but what kinds of differences vary widely, depending on where your organization wants to go and what it wants to do.  There are no simple tests or easy systems for scanning personnel files.

So what should you be looking for?  Here’s a profile of what a potentially successful overseas assignee should look like.  Key characteristics include:

  • Matching demographic characteristics (gender, race, religion) to the place they’re being sent.  Different cultures react differently to different sorts of people.
  • Open-mindedness toward difference.  Can the people you’re sending work well with others who are different?
  • Language facility.  People who have no facility whatsoever for learning foreign languages—or, worse still, who actively resist even a modest attempt—should not be sent overseas.
  • Language assumptions.  Anyone who thinks the world speaks English (or their native language), or that the world ought to speak English, should stay at home.
  • Acceptance of the world as you find it.  Anyone infected with the desire to change other parts of the world to be more like their home will definitely do a poor job of representing your business.
  • Tolerance of different ways of doing business.  Just because you didn’t think of it doesn’t mean it’s wrong.
  • Time-change tolerance.  The more difficult it is for people to adjust to jet lag, the effects of travel, and time-zone differences, the less they probably ought to do it.
  • Cultural-time Flexibility.  People who understand that different cultures think differently about time, and who can adapt themselves to those cultural differences, will do much better overseas than those who don’t.

So how do you find employees who fit this profile?  There are two keys here: know what you’re sending them into, and know your people.  Choosing people to send overseas can’t be done with a one-size-fits-all checklist.  But a good HR department that does know the firm’s employees, and that does its homework, can make a tremendous contribution in helping companies get the right people in the right places overseas.

More About the Authors

Bruce Alan Johnson Associates

Carry a Chicken in Your Lap: Or Whatever It Takes to Globalize Your Business

Bruce on LinkedIn

Bill on LinkedIn

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Posted in Cross Cultural Insights, Expatriates, Global HR Expertise, International Expertise, Relocation

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Expatriate Challenges in Developing Countries

Posted on November 5, 2009 by | 14 comments

heaps_warren1Author:
Warren Heaps – Birches Group LLC

Today I had the pleasure to deliver a presentation to the Thames Valley Chapter of the Forum for Expatriate Management.  If you are not familiar with this organization, I urge you to visit their website – there is a wealth of great resources to be found regarding all aspects of international assignment management.

My presentation focused on the unique challenges of expatriate assignments in developing countries.  There is information about:

  • the challenges of designing expatriate compensation packages;
  • the emerging trends in the sources of talent for these assignments;
  • some comparative information on hardship pay (a key element of packages to some developing countries); and
  • a couple of ideas about alternative approaches to consider.

If you would like to look at the presentation in its entirety, please send me an email using the Contact Us page.

If you have some thoughts or questions about this topic, use the comments feature to share them!

More About Warren

Warren Heaps

Warren on LinkedIn

Developing Markets Compensation and Benefits Group in LinkedIn

Email Warren

Birches Group

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Posted in Africa, Expatriates, Global HR Expertise, Global Mobility Services, Relocation

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Expats Moving Overseas – Ten Tips to Transition to a New Culture – Part 2

Posted on November 3, 2009 by | 3 comments

Heather MarkelAuthor:
Heather Markel – Culture Transition Coaching

Editor’s Note: We are especially pleased to welcome a new Guest Author, Heather Markel, who has shared with us her ten tips for a successful expatriate cultural transition.

A few weeks ago, I shared five tips for helping expats transition to a new culture. This post is a continuation of the previous one, rounding out the ten areas to focus on when transitioning to a new culture for an expatriate assignment.

#6 – Starting All Over
One of the toughest transitions for an expat is adjusting to a new office environment from “square one”. The expat may have held a senior level job in their previous location, and the new job can feel like a demotion. For the accompanying spouse, starting all over can be literal – if they’ve left behind a job or fruitful career, they may have to start a new career, or, in some cases, due to legal restrictions, not be allowed to work at all.

In both cases, it’s imperative that some attention be given to setting expectations. For the expat, this is about an initial period where they observe the office environment, rather than try to exert their own style or behavior on everyone else.  For the spouse, expectations should be set around what types of work are permitted. There should also be some support to help spouses with the job or career-search, or on finding something to replace the job they previously held.

#7 – Access to Activities
Transitioning to a new culture isn’t just about the office. Whether single, or with a family, expats need to find fulfilling activities to help them adjust to a new culture. If the expat has moved with their family, then group activities will be important to the success of their overall experience.

Of course, available transportation may impact which activities are accessible, so providing assistance with ideas, or resources, is ideal.

#8 – Changes in the Family
For expats who have traveled with a spouse, it is more than likely the spouse has given up a job or career to follow along. If the non-working spouse isn’t happy, it can have a very negative impact on the overall experience. If the non-working spouse used to be a provider, and is now tasked with looking after the home, or the children, the role change will inevitably impact the family as well. It’s important to have an awareness of the changes, set expectations, and have a set of tools with which to navigate the resentments and challenges that are likely to develop.

#9 – Clothes:  What Not to Wear
In many cases, this may be more impactful on women, than on men, but it’s important that a migrating employee understand if there are any cultural dress patterns. First, it’s less likely they will feel like they “stick out like a sore thumb” if they adapt to some of the typical dress codes. Second, there may be instances where the lack of this knowledge could land them in trouble – for example, in cities where women are expected to cover themselves from head-to-toe.

On a more subtle level, Americans tend toward either matching suits, or more casual garments in the office. When going out in the evening, it may be inappropriate to wear jeans. In France, women in the workplace sometimes wear what I’ll call “mismatched suits” – they look impeccably-dressed, even though their skirt does not have a matching jacket. Oddly, it’s not quite business casual; it’s simply a style difference. Going out in the evening, jeans are often acceptable if paired with a nice top.

Another thing I often find humorous is that in France, people always stare at shoes. So, while you might get away with wearing an old, worn-out pair of shoes or sneakers in some countries, you’ll become quickly insecure if you try the same in Paris.

Again, these are very subtle examples, but these small gaps can make all the difference when someone is trying to feel like they fit in to a new culture.

#10 – Eye Contact and Tone of Voice
Two behavioral areas between cultures that deserve attention are eye contact, and tone of voice.

One huge area where eye contact comes into play is on public transportation. For example, in Paris, it seems mandatory to stare at fellow passengers and it can be very uncomfortable the first few times you look up to find someone staring at you, meet their gaze, and find they do not look away. In Tokyo, it’s exactly the opposite experience. Passengers typically avoid all eye contact by pretending to sleep – it’s another jarring experience to see an entire car full of people with their eyes closed.

Finally, the tone of voice with which you speak can often reveal that you are a foreigner. As an American, I know we tend to speak fairly loudly in social situations, especially when dining or drinking. However, other countries lean towards quieter conversations. So keep this in mind and adapt your conversations accordingly.

In Summary
I hope you find these tips, and the ones from my previous article, to be helpful in understanding the challenges that expatriates and their families often face upon arrival in a new country. If you are an HR professional responsible for assisting expatriates with their transitions, be sure to keep these tips in mind.

I am always interested in hearing more tips or experiences. Please share yours as a comment to this post, or contact me directly by email.

More about Heather

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Posted in Cross Cultural Insights, Expatriates, Global Mobility Services, Professional Development, Relocation

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Expats Moving Overseas – Ten Tips to Transition to a New Culture – Part 1

Posted on October 14, 2009 by | 4 comments

Heather MarkelAuthor:
Heather Markel, Culture Transition Coaching

Editor’s Note:   We are especially pleased to welcome a new Guest Author, Heather Markel, who has shared with us her ten tips for a successful  expatriate cultural transition.


The complexities of moving to a new culture are immense.  Typically, expatriate training programs include a cross-cultural component.  However, I believe there are some areas which may be overlooked as the expatriate and possible family members prepare to move overseas.

With that in mind, I’d like to offer ten areas to focus on when transitioning to a new culture.  This list is by no means exhaustive.  Rather, it’s intended to help with the design of transition assistance programs.  The first five areas are listed below, and the remaining five will be out in my next post, so keep a lookout for it!

1. Language – Conversation Topics
It goes without saying that when moving to a different country, it’s necessary for both the expatriate, and their family, to learn the local language. Routine activities would otherwise become overwhelming. (Note: Even when moving to another country that speaks the same language as at home, it can still feel like learning a new language.)

Beyond the basic language skills, though, there should be training on conversation topics that might be considered taboo, or that are a normal part of the culture.   Not knowing these topics could lead to the expatriate and their family feeling left out.   For example, history may be a topic to tread lightly on in Australia, whereas a fascinating topic for someone in Europe. Other topics to examine are politics, art, and food, as some examples.

2. Food – What You’ll Find and What You’ll Eat
It’s essential to understand two aspects of food – what you will find, and what you will not. Most of us have our “comfort foods”.   Thinking of several different cultures, comfort foods could be dishes such as Thanksgiving turkey, fish-and-chips, spaghetti Bolognese, tacos, Vegemite, or kimchi.  If you’re moving someplace where your favorite foods aren’t available, outside of an expensive import, the inability to find them during a challenging period could be disappointing for an expatriate.   Especially if they are spending a traditional holiday away from friends and family, being able to find typical holiday foods can make the difference between a bout of depression and creating a new tradition.

Conversely, there will be new foods to try.   In many countries you’ll find that intestines, brains, and kidneys are staple foods.   It’s also possible that an expatriate will be invited to someone’s home and suddenly be in the delicate position of eating strange foods to avoid insulting their host.  Therefore, it’s critical to prepare for expatriates to both sample new foods, and to help them figure out where they can find comfort foods, if available.

3. Meeting New Friends, and Coping With Missing the Old Ones
One of the toughest parts of any expatriate assignment is making new friends, and starting a new social network.   While doing so, it’s easy to become disappointed at how different everyone is, and to miss the closeness of former friends.   This can lead to what I call “the social media trap”, where every free moment is spent using Facebook, Skype, etc. to stay in close contact with everyone back home.   However, this strategy will make it impossible for the expatriate to succeed at making new local friends.

If expats aren’t prepared for this difficult task, they can easily isolate themselves, and then become lonely and disillusioned with their overseas experience.

4. Getting Familiar with a New City
There are several components that go into familiarity with a new city.

  • Location – Where is the town center? Where is the office in relation to home?
  • Transportation – Is there a subway and bus system, are their taxis? If not, what alternatives exist?
  • Safety – What areas of the city might be dangerous at night, or even during the daytime?
  • Essentials – Being able to locate the nearest supermarket, laundry, and shoe-repair shops. Also, medical doctor and dentist referrals can be very helpful as someone gets to know a new city.

5. Formality at the Office
One of the most difficult subtleties between languages and cultures is the nature of addressing peers and managers.   Depending where in the world an expatriate will be working, challenges could range from knowing when to use first versus last names, to understanding when to use formal versus informal verb conjugation.  In some countries this could be about handshakes versus bowing or other customs.  These challenges are often further complicated when addressing a female superior, where the challenge becomes figuring out whether to use the equivalent of “Ms” or “Mrs”.

It’s essential that these subtle behaviors and forms of address be understood for an expat to be accepted at the workplace. If they do not, they may become embarrassed in front of fellow employees and potential clients.

Summary
This list is just a start.  In my next post, I will share five more tips with you.   In the meantime, let me know what you think by leaving a comment!

More about Heather

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Posted in Cross Cultural Insights, Expatriates, Global Mobility Services, Professional Development, Relocation

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How Do I Develop Expertise and Gain Employment in Global Mobility?

Posted on September 17, 2009 by | 5 comments

edit-Alan Biz Mug Shot 1Author:
Alan Freeman – LOF International HR Solutions

One of our readers recently asked, “I have been working in the HR field for the last few years and would like to break into the Expat Management/International Mobility field in Global HR.  What is the best way to gain experience that will make me stand out to an organization that is recruiting global mobility staff?”

First, thanks very much to the reader for posting the question.  We truly appreciate receiving input from and creating dialog with our colleagues.

To begin with a broad response to the question, please take a look at my June 25, 2009 entry, “How Can I Develop Global Human Resources Management Expertise?”.

Since the question focused specifically upon expatriate management / “Global Mobility”, some additional considerations include:

  • Become a member of ERC Worldwide, use their resources, attend their meetings and become involved with their local affiliate groups’ meetings as well.  You also should consider obtaining the GMS certification.  ERC also posts career opportunities on their web site and you should monitor those.
  • If you are based in Europe, or are in Europe frequently, consider becoming involved with EuRA.
  • If you are currently employed in an organization that has a international assignments / Global Mobility program, get to know the staff responsible for the program – especially those with managerial responsibilities.  Take them to lunch, ask their advice, learn what you can from them and, perhaps most importantly, volunteer to help them with their work.  In today’s environment, they’re likely to be rather overworked and would welcome some help!
  • Seek employment in corporations with established international assignment / Global Mobility programs, network with the global mobility management staff in those companies, keep an eye on job postings on their web sites.  ERC’s members roster, their job postings board and involvement with the meetings mentioned above are ways to identify target companies and, possibly, specific opportunities.
  • Do the same as above with the various global mobility service providers such as Bristol Global Mobility, Cartus, Prudential, SIRVA, MI Group, AIReS, Crown, Primacy, Lexicon, Plus Relocation, Weichert, Altair, Brookfield, etc.  There are many more and you can find them via the ERC resources listings.  Please keep in mind, however, that in the current economic climate, the overall relocation business has slowed significantly so hiring in the industry has as well.
  • Seek out and participate in global mobility meeting groups in your area. For example, in Northern California, the Western International Personnel Association (WIPA) and Bay Area Professionals in Relocation Management (BAPRM) have a strong orientation toward global mobility.  There are many other such meeting groups around the country.  Global HR News hosts conferences in many locations across the US and abroad.
  • Consider joining the Forum for Expatriate Management, and the many LinkedIn groups that focus upon Global Mobility.  Track the discussions, and tap into the information and leads that appear in these forums.
  • Keep an eye on job listings at Blue Sky and Signature Source, make contact with the principals in those firms to “get on their radars”.  They are search firms that specialize in Global Mobility.
  • Take advantage of specific classes, seminars and webinars.  For example, ORC Worldwide, AIRINC and Mercer – the top three providers of international assignment package data – offer regular training programs. Also, please sign up for the remaining five sessions of the IOR Global Services webinar series that started on Sep 15 (I’m leading the Sep 29 session).
  • Read, read, read – there is a great wealth of books, periodicals, white papers, research reports, etc. that has become available over the years. You’ll find items on Amazon.com, at the SHRM bookstore, at the World at Work bookstore and within the ERC website.

So to summarize, learn as much as possible about international assignments / global mobility and network with people already working in the field.  The best way to learn, get on someone’s radar, and find out who is hiring, is to hang out with them!

Thanks again to our reader for her question. We ask others to also provide suggestions and guidance via comments on this post.

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Posted in Expatriates, Global HR Expertise, Global Mobility Services, International Expertise, Relocation

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Impact of Assignments to Remote Locations on Children’s Education

Posted on September 14, 2009 by | 3 comments

Photo Liz Perelstein (2) Author:
Liz Perelstein – School Choice International

As businesses expand more and more into developing markets, companies are often facing new challenges in finding appropriate schools for the children of their international assignees.  In some locations, schools haven’t caught up with demand for international education; in others, there simply might not be any international schooling options at all.  Now more than ever, local schools are an option, but you need to be well-prepared for such an approach to work.

Schooling is a Top Priority
Assignees often state that having access to good quality schools for their children is the most important factor in deciding to accept an assignment.  Parents are more uneasy than ever about relocating with children when international schools are not available.  By gaining some understanding of the local educational system and curriculum differences in countries where you send employees, you will be in a better position to create policies that provide children with access to reasonable education.

Consider these facts:
Some local schools in India consider handwriting so important that teachers may not consider content if handwriting falls short of expectations.

  1. A study by the University of New Hampshire indicates in many European countries, parental involvement is not permitted.
  2. So-called “International Schools” may not be truly international.  Instead, they may be targeted towards local children to help them acquire language and other skills to promote attendance at US universities and/or may exist for children whose parents do not want them to attend local schools.
  3. In some countries, schools “stream” students into tracks as early as 12 years old, and this could affect the ability to gain admission to universities in other countries.  Admissions decisions based on an “entry examination” or prerequisites make this a clear challenge for those who do not have the language or curriculum background.
  4. Religious education is a fundamental part of national curriculum in many countries, such as Ireland.  This may meet an unenthusiastic response from families not accustomed to such arrangements, or those that practice a different religion.  And, even if considered acceptable, students may not have the religious background to fit in.
  5. Special education is handled in varied ways throughout the world, from mainstream educational options in the United States, to China, where few schools have an open-minded approach, and few teachers are taught to teach children with learning or other disabilities.

Language is the main obstacle that many companies are aware of when evaluating local school choices, but integrating families into a local educational system where goals, philosophies and methods are so dissimilar requires a different type of preparation on the part of the family, and a more flexible policy on the part of the company.

Tips for Success:
Here is a short checklist which is useful to help companies and assignees examine educational options for any overseas assignment, as well as for their eventual return home:

  • Before moving a family, allow them time and means to review curriculum of the school in the host country, and discuss it with teachers back home.  Evaluating where a child may be ahead or behind enables parents and schools to develop programs that assist in entry as well as re-entry.
  • Recommend that families bring along books, course outlines and any other aids to maintaining academic skills required at home so that kids can keep abreast of knowledge required for repatriation.
  • Find out the exit requirements for schools in the home country before leaving.  These, in particular, will determine curriculum to continue studying while abroad.   Can these be satisfied on assignment, and if so, what kind of policy do you need to support these additional costs?
  • Decide what kinds of supplemental or alternative education your company will allow to reduce hardship for children whose families are sent on assignment, particularly at key grade levels.  These may include tutoring, on-line courses, summer school, home schooling or boarding schools.
  • If schooling is totally incompatible, is it possible for the employee or the family to repatriate either a year earlier or later, as appropriate to facilitate the transition?
  • Provide opportunity for students to become proficient in reading and writing as well as speaking of the new language well before the move; in fact, as soon as the move is announced is best.
  • Engage a professional who understands discrepancies in curriculum as well as culture to recommend individualized support so that students can be prepared before returning home.
  • Repatriation is always difficult for children, since even international schools teach different curriculum, have different course sequences, and offer different languages and promote different viewpoints when teaching history.   Children who have attended local schools in remote areas may be more significantly unprepared to attend school back home or enroll in university in their home country.  Be sure to pay careful attention to home country requirements before assignments begin.

Conclusion:
School choices for expatriate children are always challenging, and even more so in locations where the traditional choices are limited or non-existent.  Families who have overcome these obstacles and successfully educated their children in local schools find the rewards to be significant.  Children truly learn new languages, cultures and curricular subjects and enjoy an unprecedented window into the customs of a different country.  As schools are a microcosm of the cultures they inhabit, children raised in local schools abroad can be our true ambassadors in the global world of the next generation.

Providing support in the form of tutoring, on-line learning and language instruction is a key consideration companies should consider when developing policies to support your employees in remote locations.  Inviting parents to reframe their definition of education as learning rather than schooling is the key to promoting the right attitude for a successful assignment.

More About Liz:

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Posted in Expatriates, Global HR Expertise, Global Mobility Services, International Expertise, Relocation, Repatriation

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Should Global Mobility Services Be Centralized?

Posted on September 3, 2009 by | 17 comments

Author:
Warren Heaps – Birches Group LLC

As organizations continue to look for the best way to manage their globally mobile employees (expats), one of the most common issues to address is the best organizational structure to provide the necessary services and support to this group.   What is the optimal structure – centralized or decentralized – and how does an organization decide which approach is best for them?

Back to Basics
Expat management is a cross-functional discipline made up of several different areas of expertise, each highly technical in their own right, including relocation, compensation, tax, payroll and immigration.   To be effective, one must become familiar with all of these areas, and master at least a few of them.

In addition, customer service and vendor management are critical, especially given the preponderance of outsourcing to third-party providers.   Finally, all Global Mobility departments need a link back to the global talent management strategy in their company.

In my opinion, few companies, and few individuals in those companies, are really truly experts in all the aspects of Global Mobility.  Therefore, it makes a lot of sense to centralize mobility services, and invest in and develop the few staff that do have the capacity and experience to become experts.   Depending on the size of your assignee population, this could be at the corporate or HQ level, or in organizations with larger assignee groups, at the regional level.

The Regional Model
One of the most common structures used by many organizations today is the regional one, typically Americas, Europe-Middle East-Africa (EMEA), and Asia-Pacific.   Under this approach, a designated regional center coordinates all of the assignment management for the region.   The reality is that all organizations are at least partially outsourced, so much of the work is handled by third-party providers, and the role of the internal staff also includes the management of these outsourced processes.

A regional structure helps to ensure consistency across a broad range of countries, and develops deep knowledge of local practices, to provide the highest possible level of support to assignees.  In many cases, regional suppliers are engaged, based on their local market knowledge and performance in the region.

The Global Model
Some organizations choose to centralize services at headquarters.  This model ensures the highest level of consistency, since one group is responsible for all service delivery.   With smaller programs, this approach can work; as programs get larger, however, the regional model quickly emerges as a more practical solution.

Under a global model, there are often opportunities to ensure high levels of tax compliance and identify tax planning opportunities effectively.   These decisions require input from corporate tax and finance as well as human resources, and are best managed jointly at the headquarters level of the organization.

Another added advantage of the global model is the selection of outside providers, which would tend to be more global as well.   Realize, however, that few service providers can really provide services everywhere – they all rely on partner organizations to supplement their own resources.

The Decentralized Approach
There are some companies which continue to manage their mobile employees through a network of local offices, without any centralized support at the regional or global level.   This is a challenging way to operate for all but the very smallest programs, and may give rise to missed opportunities in areas such as vendor consolidation, tax planning and the general efficiency of the program.   Even under a decentralized approach, however, a standard international assignment policy should be developed and distributed, ensuring a minimum level of consistency.

Tools to Help Manage Your Program
Another factor to consider is the level of automation available to your organization.  Without a technology tool for assignment management that is accessible globally, decentralization is not realistic.  These days, there are hosted (SaaS) solutions which are affordable and very powerful, and integrate easily with your global ERP solution.   Whether you work with a specialized vendor, such as Atlas or MoveOne, or rely on your accounting or relocation firm, deploying a robust assignment management software solution goes a long way to simplifying your expat administration and helps eliminate redundant and inefficient processes.

Ask yourself a simple question – how many expats do you have in your company today?   If you cannot answer this question with confidence, you need a better tool to manage your program.

Don’t overlook short-term assignees, commuter assignments and short-term business travelers.   Each of these assignees require tax, relocation and immigration services, and if poorly managed, can result in unexpected costs. You should be able to capture all types of assignees in your assignment management system.

Moving Your Program Forward
Now that I’ve got you thinking about how your expat administration is being managed, take a careful look at your organization structure.  What kinds of changes might be beneficial?  Where are you biggest “sore spots”?

Post some comments about your specific challenges, and we can try to address them.

More About Warren

Warren Heaps

Warren on LinkedIn

Developing Markets Compensation and Benefits Group in LinkedIn

Email Warren

Birches Group

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Posted in Expatriate Payroll, Expatriate Taxation, Global HR Expertise, Global Mobility Services, International Expertise, Relocation, Repatriation

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Abrupt Repatriation: Tips to Pass on to Parents

Posted on August 17, 2009 by | Comments Off on Abrupt Repatriation: Tips to Pass on to Parents

Photo Liz Perelstein (2)Author:
Liz Perelstein – School Choice International

Although the merits of sending families home before scheduled repatriation dates are a topic of continuous debate, we know that some companies are resorting to this course of action.  Where children are involved, the situation is understandably more sensitive, and companies are struggling to come up with cost-effective, yet fair and reasonable solutions.

If you find you have to make or implement difficult decisions when it comes to children and their education, preparing yourselves, and helping parents prepare, is the most effective way to handle the delicate task at hand.  Three things that parents should keep in mind are:

  • The resilience of children
  • Opportunities that come from change
  • Thoughtful communication

First, anxious parents need reassurance that children are extremely resilient and don’t, as a matter of course, suffer long-term as a result of transition, although the anticipation of change and the early stages in a new school are challenging for everyone.  In typical circumstances, the children who find change most difficult are those whose parents do.  So it is important that parents make every attempt to recognize and convey the opportunities the family has had and will have, and to address any problems as a family.  Any concerns that children cannot comprehend should be saved until after bedtime.  Parents should share as much about the circumstances as children want to know and are able to absorb, using their questions as a guide.  It is essential that they are told that neither they nor their parents have done anything wrong, and that the current economic circumstances are something that the world is confronting together.  Parents can explain that many of their friends also have been making life changes as a result of the recession.  Some have moved homes, and others have switched schools.  Different families will make different kinds of choices, but sacrifices are now common among friends and family members.

These are some additional tips that can be shared with parents to provide them with peace of mind:

  • Be available to speak with children and to answer any question they may have.
  • Make thoughtful choices about the new school, reflecting on academic and social characteristics of children and how they have fared in their current school, in addition to family values and logistical circumstances.  Gather lots of information and ask many questions about matters important to children, rather than focusing on factors more important to adults.
  • Before starting the new school, engage the head and/or teacher in a conversation about the child so that good class placement decisions are made and the new teacher understands the child, his/her needs as well as current transitional circumstances.
  • Address curriculum differences through tutoring or outside enrichment, but first clarify that there are likely to be discrepancies between performance in their new and former schools; parents should explain that each school teaches different material so that the child is not at fault if s/he struggles at the outset.

Communication, both with the school and with the child, is the key to a successful transition.  When families are calm and thoughtful, a change of schools can give children an opportunity to learn essential life skills such as making new friends and dealing with uncertainty, which is an invaluable part of any education.

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How Big Must Your Relocation Provider Really Be?

Posted on August 2, 2009 by | 10 comments

edit-Alan Biz Mug Shot 1The Forum recently received a great question via our “Ask the Expert” feature:

“We are a “young” international and domestic relocation management company but our staff has many collective years of experience in the industry. We are having a hard time breaking into the corporate market.  It seems that HR Departments do not want to give us the opportunity to present our services.  How can a small company like ours work itself into the international employee relocation market within a corporation?”

We can truly empathize with this situation, which is one we’ve often seen.  This is especially true in today’s economic environment of slashed budgets and significantly reduced transfer and assignment volume.  Overworked and highly stressed company staff are unlikely to spend precious time, now, to hear about services they’re not currently using.

The reader suggested that the “big” global relocation service firms receive a better reception from prospective clients than do the smaller and newly established firms.  In our experience, this is basically true.  The reader also stated that many of the smaller firms have a stronger service orientation and can be much more responsive and flexible than the big well-established providers.  Indeed, we have seen cases of this too.  It’s possible to demonstrate that smaller firms made up of seasoned experts, but with lower operating overhead and more flexible processes, can be quite cost competitive while providing high quality services as well.

So why are the small firms having difficulty “breaking in”?  What is it that the big firms offer as “competitive advantage”, often successfully, that the small firms do not?

Big firms have a large footprint.

They can point to wholly owned offices and affiliate relationships in a wide array of countries.  This can be a huge issue for corporations that want to have local touch points for their employees and direct knowledge of local environments readily available.  The small firms often don’t have such a geographic footprint and might not be sure how to establish one.

Big firms have globally experienced staff.

Frequently, their staff come from a variety of countries, have lived and worked in multiple countries and speak a number of languages.  They also frequently have individuals with prior international assignment policy development and program management experience on their teams.  This engenders great credibility in the eyes of the corporate buyer.

Big firms leverage their extensive experience.

 They have managed programs covering multitudes of assignees across a variety of countries and industries.  The corporate buyer is far more impressed with stories about “been there, done that” than with honest admissions of “haven’t been there, haven’t done that — yet”.  Corporations tend to be risk adverse and shy away from “being the guinea pig on whose dime the new service provider learns the business”.

Big firms have technology.

They offer sophisticated state-of-the-art, web-enabled capabilities for projecting total assignment costs, managing reimbursements, communicating with clients and their transferees, interacting online with data providers, providing country-specific information, and tracking and reporting expenses.  Many smaller firms do not have such (expensive) technology and, occasionally, cannot demonstrate expertise in managing the complex requirements of expense management and tracking across multiple countries and pay-points.

Big firms have strong relationships with key service providers.

They know and work with a variety of firms providing assignment cost of living and housing data, international tax experts, destination country employment counsel, cultural and language training firms, etc.  These pre-existing working relationships mean single point of contact and seamless service provision that is extremely attractive to corporate clients.

Big firms invest in polished marketing campaigns.

They advertise, host and sponsor conferences, deliver keynote presentations, conduct webinars, host booths at SHRM and ERC conferences, develop highly polished web sites, publish surveys and articles, etc.  This does not, of course, make the big firms better at providing services but, at the end of the day, polished marketing does impress prospective clients and creates name recognition.

Big firms have the advantage of name recognition.

 Finally, there is the cliché that no procurement professional was ever fired for hiring a well-known “big name” even if there was a service breakdown later. Let’s face it, in many corporations there is a built in bias toward hiring only name firms and avoiding the perceived risk (accurate or not) of hiring unknowns.

So what can a small/new firm do?

Emphasize responsiveness, service orientation and flexibility.

Probably the two most critical attributes in which to excel and compete are outstanding service and price.  Responsiveness, flexibility and competence are critical in what, I think we would all agree, is a service industry, after all.

Build internal international expertise.

This should be done via hiring highly experienced, preferably well-known, and globally networked staff and through education such as the SHRM GPHR and ERC GMS programs.  Travel and learn from first-hand experience about assignee destinations around the world.  External consultants also can be quite helpful in this area.

Invest in technology.

The ability to project and track costs, communicate with management, transferees and other services providers, e.g. the client’s international tax firm, and manage data is critically necessary.

Develop and nurture relationships with complimentary service providers.

This must include in-country providers and data, immigration, tax, language training and cultural training firms, among others.

Create name recognition through a well-focused and professional marketing campaign.

Demonstrate how the firm should be perceived as a trusted advisor and capable service provider. Create a public presence in the industry.

Delight your current clients and enlist them as your champions

When courting new business, make use of recommendations and testimonials from satisfied clients.  Ask your clients for leads and to make “warm” introductions.  Word-of-mouth recommendations are priceless.

Direct business development efforts towards smaller firms.

They tend not to have the budget for, and less of a bias toward, the big firms. It’s also relatively well known that the big firms don’t give their best attention to small accounts. Go where there IS business AND less competition.

Implement a “Blue Ocean” strategy.

There are many capable providers of  global mobility services, large and small.  The market, especially in the current economic scene, may actually be over-supplied with providers.  Competition is fierce.  We would suggest that small firms specifically target prospects whose mobility needs – geographically and transfer types – best match the firm’s geographic footprint and operational strengths.  Approach those firms that are not being approached by the multitudes of providers.

Seek out the advice and counsel of those with depth of experience and expertise.

We believe that seeking guidance and mentoring from experts can be quite worthwhile.  Professionals with prior “in-house” corporate experience, as buyers of external global mobility services, across a variety of industries are especially valuable.

We again thank the reader who submitted the question.  Now we invite our readers to share their views.  Please let use know your thoughts via comments on this post.

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Posted in Expatriates, General, Global HR Expertise, Global Mobility Services, International Expertise, Relocation

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