International companies are keen on hiring employees to work abroad on long-term contracts or specific projects, and the response they receive from the candidates is rather engaging. But what are multi-national businesses looking to achieve with this practice? And why are people willing to go through the inconvenience of relocation for work? AXA, a global insurance company with 107 million customers all over the world, has asked these and more questions to senior directors in charge of global mobility at 250 multi-national companies in eight countries and to 372 people in 11 countries who are working on international assignments. Expat.com discusses the findings of this survey on global mobility.
The benefits of international assignments
98% of the firms surveyed say that they believe globally mobile workforces are significant, and 35% describe the international mobility as “critical” for the achievement of their objectives. Notably, 51% report that their business performs better on an international level, thanks to the people who work abroad. But what do businesses gain in practice from their global talent? The primary asset is the improved performance of international operations, followed by training to perform specific tasks, and the development of new skills among employees.
On the other hand, staff also identifies many positive outcomes from their relocation and participation in international assignments. A bit over half of the participants (51%) say that they undertook the international project to gain higher salary and benefits while 47% agree that the international position has boosted their career and improved their skills, or has given them the opportunity to learn new skills (45%). Other benefits mentioned are regional expertise and setting the stage for a permanent relocation to a new country. However, if you are wondering whether anyone has been left disappointed by the relocation experience, only 2% believe that they didn't gain anything from the international assignment.
The most popular destinations for assignees
It comes as no surprise that the major economies are the most popular destinations among companies where to establish international assignees -- namely, in order of preference, the USA, China, Germany, the UK, and France. However, it's expected in the next five years, new destinations to take the lead, with China coming first in firms' preferences, and Russia and Japan taking the fourth and fifth places.
The challenges of recruiting global talent
While both companies and employees benefit significantly from international assignments, there are serious challenges to be taken into consideration by both sides. As with all job opportunities, one has to find the right balance and compromise to the extent that it won't put at risk other tracks of life (personal life, family life, health, etc.).
AXA has identified three types of challenges -- motivational, well being, and financial. Moving abroad with a family isn't the same as being single and undertaking an international role. A partner and parent has also to consider their partner's career, children's education, adjustment difficulties, and the attractiveness of the new country for everyone involved (motivational).
When referring to well being, companies talk about happiness among international employees as opposed to stress, anxiety, and depression due to culture shock and lack of adaptability in the destination country. 68% of the companies are concerned about international assignments failing due to mental health problems among the staff that works abroad. 11% of all assignments fail due to personal reasons reported by the employees, 54% of HR directors say that international assignments were suddenly terminated due to family concerns, 42% due to health problems, and 28% because employees couldn't adapt to the new culture and lifestyle.
The financial challenges are quite a paradox for companies because while they worry about the cost of international assignments, they also understand how critical they are to their business. However, there is a constant effort by companies to create good packages that will attract global talent, but at the same time will keep costs reasonable.
The good news is that there are solutions and actions to be taken to limit the impact of the challenges mentioned above. Companies can provide regular health checkups, language and cultural training, tailor-made packages and flexibility, help with finding accommodation and organising the moving formalities, and even more drastic solutions, such as employees who become international commuters to achieve the necessary balance between personal and work life.
