Issue link: http://www.e-digitaleditions.com/i/207525
Relocation Although the current growth figures are strong (54 percent), they are below the level anticipated by the 2012 Brookfield survey, when 63 percent of companies expected further increases in their assignee numbers. Furthermore, the number of companies reporting a decrease in their international assignments more than doubled in the 2013 survey to 24 percent. slowed. As a result, some organizations scaled back their assignee populations. group of locations," confirms Michael Gorski, Brookfield's vice president of global marketing. South Africa, Qatar, Poland, Austria, Sweden, and the Philippines emerged as top destinations in this year's survey; the number of assignments in Africa and the Middle East was boosted by energy sector growth. Meanwhile more established locations continue to require significant resources. European assignments rose, says Gorski, indicating the continued importance of the region in companies' long-term business strategies despite the financial crisis in the Euro zone. Although the current growth figures are strong (54 percent), they are below the level anticipated by the 2012 survey, when 63 percent of companies expected further increases in their assignee numbers. Furthermore, the number of companies reporting a decrease in their international assignments more than doubled to 24 percent in the 2013 survey. Lower than expected growth may partly reflect changes in the scale of expansion opportunities in key assignment destinations. For example, while China continues to be a leading destination for international assignments, it was less prominent in 2013 than in previous years as economic growth Cost, which emerged as the key global mobility challenge in Brookfield's 2013 survey, is also a key factor affecting the rate of international assignment growth. Transferring skills and experience to new markets can be an expensive process. "Generally international assignments can cost a company three to five times the assignee's base salary," reports Stefanie Exline, director of global mobility at Kelly Services, Inc. If the number of assignees escalates—especially with a large expatriate population—the issue of cost becomes increasingly significant. And as the number of destinations proliferates, coordinating different visa, tax and payroll documents, and managing vendors becomes more complex, further increasing global mobility costs. As well as easing back on the number of new assignments, companies are also tightening up their global mobility policies to help control costs. "Due to the current economic climate, costs in many areas have been heavily scrutinized and global mobility policies are no exception," says Exline. "As a result, assignment allowances and incentives have been scaled back or eliminated." Companies are using alternative or modified cost of living tables or introducing a more stringent approval process for policy exceptions. Some employers have been considering whether different types of international assignments could be more cost effective. "Many companies are looking at alternatives to OCTOBER 2013 | www.hrotoday.com [83]