Corporate transfers of executives continue at a strong rate—at least on an
international basis, thanks to booming trade with China and the relative health
of the European Union, a new survey says.
“Despite a slowing economy, an overwhelming majority of multinational
corporations remain highly optimistic about the global outlook for their
businesses and say they plan to send more employees on overseas assignments in
the months ahead,” according to the Global Relocation Trends Survey issued
Monday, May 12, by GMAC Global Relocation Services.
The worldwide survey of 154 multinational businesses found that 68 percent
continue to build their employee reassignment efforts. Of those, 95 percent say
they plan to either increase the number of employees being transferred or stay
at the same level as last year; 5 percent plan to reduce the number of workers
they relocate.
While businesses continue to ship execs overseas, they’re reducing the size
of expat packages. Scott Sullivan, senior vice president of GMAC Global
Relocation Services, said companies are being more cautious in managing the
expenses related to assignments because the cost of posting a manager in another
country is about three times the stay-at-home pay and benefits for that
employee.
In fact, 58 percent of the respondents indicated they are cutting back on
expenses for international assignments. Of those, 29 percent said they were
reducing offerings and financial incentives for them.
Family concerns were cited as the most common reason for refusing a foreign
assignment. GMAC Global Relocation Services said that explanation was given by
89 percent of those who declined a foreign transfer. The survey concluded that
it is vital to consider an employee’s full family situation before asking the
worker to transfer internationally.
The survey also shows that returning expats tend to resign their jobs at a
regular clip. Twenty-seven percent of workers who take cross-border postings
leave their employers within one year of completing their foreign assignments,
according to the survey. That is more than double the average turnover rate for
other employees.
Filed by Frank Byrt of Financial Week, a sister publication of Workforce
Management. To comment, e-mail editors@workforce.com.
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