Canadian HR Reporter

RELOCATION A lot has changed since the forma- tive days of corporate expatriate assignments. e roots of tradi- tional assignments go back several de- cades to the oil and gas industry. ese companies knew they'd have to export talent to these new lands and it would take some eff ort to encourage people to uproot themselves and their families — sometimes for several years — for the good of the company. Soon, other industries began to expand in- ternationally, and nearly all adopted a one- policy-fi ts-all, out-and-back, home-based compensation approach. The so-called home-based balance sheet — which links most or all elements of compensation and benefi ts to the home country while provid- ing certain income equalizers to account for diff erences in cost of living, housing and in- come taxes — has endured and is still the most common approach used, according to Mercer's 2015 Worldwide Survey of Inter- national Assignment Policies and Practices (WIAPPS). At the same time, nearly two-thirds of the 831 global companies surveyed indicate they use multiple policy types and these extend beyond the typical diff erentiation between short-term, long-term and per- manent assignments. What's driving the change? As the global business environment contin- ues to shift, more and more multinational employers are faced with a conundrum. Expanding into foreign markets is critical to growth but that growth can be costly to achieve — and may be impossible without the right resources in place. Critical skill shortages still exist in many markets and in others, valuable company culture needs to be seeded and grown. International ex- perience might also be important or even mandatory for those who hope to climb the corporate ladder. Companies are using a wide range of as- signment types to respond to these chang- ing business needs as well as changes in de- mographic patterns in the global workforce. Global mobility leaders at top companies now have a seat at the strategy table as mo- bility has become an important lever in the talent management tool kit. While the traditional three- to fi ve-year assignment is still common, more than one- half (51 per cent) of WIAPPS participants saw an increase in the number of short- term assignments over the past two years and even more (57 per cent) expect an in- crease over the next two years. ere has also been a dramatic increase in the use of permanent or one-way inter- national transfers. Many companies are also enforcing time limits on international assignment benefi ts, often ending costly expatriate allowances and converting em- ployees to local employment terms and conditions after three to fi ve years. Many companies are also using mobility to provide developmental opportunities for young, high-potential employees, and to develop a global mindset in future business leaders. In fact, these types of assignments are expected to grow more than any other type of assignment over the next two years, according to Mercer's survey. Mobility as a diversity and inclusion tool On average, companies now report that about 15 per cent of international assign- ees are female, up from less than nine per cent fi ve years ago. On the surface, such a change may not seem statistically impres- sive, but consider this — relatively speaking, females now represent more than twice the international assignee population than they did fi ve years ago. ere are many possible reasons for this: In general, the number of women in the workforce has increased and diversity initiatives at many companies may be re- sulting in women being given more opportunities. More women may also be the primary earners in the house- hold, so making the decision to take an international assignment might be less disruptive to the family's fi - nancial situation. Dual-career challenges are regularly cit- ed among the top three issues mentioned by companies. Many expat partners aspire to work overseas and although it's becom- ing marginally easier for spouses to secure work in some countries, it's easy to under- stand why the disruption of a professional career or loss of signifi cant family income can be a formidable obstacle to mobility. Companies have also become more lib- eral in the defi nition of spouses eligible for relocation and spouse assistance benefi ts, with just 17 per cent of WIAPPS respon- dents strictly defi ning a spouse as "a hus- band/wife of the opposite sex." However, a host country may not have such a lib- eral outlook, which can make it diffi cult or impossible for a non-married partner or partner of the same sex to obtain a visa to enter the country, let alone work authorization. Nearly all companies allow the family to accompany the employee on a long-term assignment. In fact, one-quarter don't even have an unaccompanied long-term assignment policy, found Mercer Either they require the married employee to be accompanied or they do not make special considerations if they choose not to be. For those companies that do send em- p l o y - ees on unac- companied status, the reasons cited are often personal considerations (such as dual-career issues, children's education, security concerns or the remoteness of the location). Interesting- ly, very few companies (14 per cent) say they make the decision based purely on cost. When employees go without their fami- lies, it's common practice for the company to provide some consideration and also adjust other assignment-related benefi ts. Most often, additional assistance comes in the form of more frequent home leave trips. Many companies will also give the em- ployee the option of allowing the family to fl y to the assignment location in lieu of a home leave trip. Other elements of the package (cost of living and housing allow- ances) are often reduced to refl ect the lower level of local expenditure experienced as a single assignee, although the family may be considered when establishing the housing allowance. Expatriates from everywhere Today's international assignee may be sourced from just about anywhere. Tradi- tional expatriate compensation approaches work for the majority of home-to-host loca- tion combinations, but their eff ectiveness is put to the test when applied at the extreme ends of the home-country economic con- tinuum. Why? When employees are transferred from one economically developed country to another, there are a range of compensation options that are eff ective. ese include the home-based balance sheet approach and, in some circumstances, host pay or hybrid approaches. When employees from Companies have become more liberal in the defi nition of spouses eligible for relocation and spouse assistance benefi ts. global mobility By Steven Nurney mobility A look at changes to policies, demographics, definitions, compensation Trends in FEATURES Trends REVIEW > pg. 16 mographic patterns in the global workforce. Global mobility leaders at top companies now have a seat at the strategy table as mo- bility has become an important lever in the While the traditional three- to fi ve-year assignment is still common, more than one- half (51 per cent) of WIAPPS participants saw an increase in the number of short- saw an increase in the number of short- term assignments over the past two years and even more (57 per cent) expect an in- ere has also been a dramatic increase in the use of permanent or one-way inter- workforce has increased and diversity initiatives at many companies may be re- sulting in women being given more opportunities. More women may also be the primary earners in the house- hold, so making the decision to take an international assignment take an international assignment might be less disruptive to the family's fi - nancial situation. Dual-career challenges are regularly cit- ed among the top three issues mentioned by companies. Many expat partners aspire p l o y - ees on unac- companied status, the reasons cited are often personal considerations (such as dual-career issues, considerations (such as dual-career issues, children's education, security concerns or the remoteness of the location). Interesting- ly, very few companies (14 per cent) say they make the decision based purely on cost. When employees go without their fami- mobility mobility A look at changes to policies, demographics, definitions, compensation Trends Trends

• Cover