EY Global Mobility Survey

Global mobility
effectiveness survey
2009
3 Global mobility effectiveness survey Ernst & Young 2009
Contents
Executive summary 4
Global mobility effectiveness survey 6
1. Introduction 6
2. Respondentscompanyprofle 6
3. Typesofassignmentsandpolicies 7
3.1. Short-termassignments 7
3.2. Long-termassignments 7
3.3. Driversforassignments 8
3.4. Assignmentpolicies 10
4. Globalmobilityfunction 12
4.1. Organizationalsetup 12
4.2. Meetingexpectationsandreturnoninvestments 15
5. Globalmobilityprocesses 19
5.1. Selection 21
5.2. Preparation 21
5.3. Onassignment 21
5.4. Repatriation/post-repatriation 22
6. Globalmobilityservices 22
6.1. Preparationservices 22
6.2. Ongoingassignmentservices 24
6.3. Technology 27
6.4. Futuretrends 28
7. Riskmanagement 29
8. Globalmobilityeffectiveness 32
9. Costandcontrol 34
Executive summary
Theworldisembracedinanunprecedentedeconomicdownturnwhichis
bringingbothchallengesandopportunitiestoglobalmultinationalcom-
panies.Unlikeotherdownturnshowever,HRisbeingchallengedtodoso
muchmore:handleamorecomplex,andinsomecasesstillincreasing,as-
signeepopulation;overseemorediversepoliciesandtypesofassignment;
manageorreducecost;runeffcientprocesses;reduceorganizationalrisk.
Allofthisismostlywiththesameorevenlessresourcethanbefore.
OurGlobal mobility effectiveness survey 2009isrunningforitssecond
yearandoffersacomprehensiveandbroadrangeofviewswith155par-
ticipatingglobalmultinationalcompaniesheadquarteredintheAmericas,
Asia-PacifcandEurope.Thesurveystaskistoassesstheeffectivenessof
theglobalmobilityfunction,itsprocessesandpolicies,andtooffercom-
parisonwithourfrst2008survey.Additionally,thesurveywasexpanded
thisyeartoprovidebenchmarksofkeyobjectivesforinternationalHR
managementinthiscurrenteconomicclimate.
Theresultsofthesurveyaredetailedonthefollowingpagesandshow
comparisonsbygeography,bymarketbestpracticeorexpectations,and
our2008survey.Thekeyresultsofthissurveyinclude:
71%ofcompanieshaveaclassiclong-termassignmentpolicy,67%have
short-termpoliciesbutonly22/23%havecommuterorregionalpolicies.
Only18%ofsurveyedcompanieshavedifferentiatedstrategicordevel-
opmentalpolicieswhileafurther10%aregoingthatway.
Companiesloseupto15%oftheirassigneeswithin2yearsofrepatria-
tionbutrepatriationisseenasthemostimportantphaseofanassign-
mentbyonly1%ofrespondents.
Preparation(55%)andselectionofassignee(36%)arethe2mostim-
portantphasesoftheassignmentbut61%ofIHRteamsarenotinvolved
inassigneeselection.
Companiessurveyedwereaskedtorankintermsofurgencyareas
inneedofimprovementwiththetop4beinginorder:1.assignmentad-
ministration;2.costcontrol;3.processes;4.policy.
Thetop4risksweresimilarlyrankedas:1.incometax&reporting;
2.accidentalexpatriates;3.socialsecurity&reporting;4.corporatetax.
Only20%ofcompaniesknowtheirtrueexpatcost,58%haveanapproxi-
matecostonly,81%arelookingtotakemeasurestosavecost.
Ofthekeyareasoffocusformanagingcostthetop5inorderare:
1.globalmobilityprocesses;2.localizations;3.policies;4.vendor
outsourcing;5.strategyapproach.
Wehopethatyouwillfndthesurveyofinterestandofuseinallowingyou
insightintootherorganizationviews,geographicaldisparitiesandinto
thefutureobjectivesofoursurveyparticipants.Wealsoencourageyouto
lookatyourowninternationalHRfunctionandchallengeyourcurrentpro-
cessesandapproaches:inthesepastyearsofgrowthmanyopportunities
orissueshavebeenpushedasideandnowisthetimetogobackandlook
whethertheycanunlockvalue,beitinprocesseffciency,policycostman-
agementorriskreduction.
Ultimatelythissurveyisabouttakingadifferentlookatthewayweseethe
internationalHRfunction.Welookforwardtoyourfeedbackandyourpar-
ticipationinour2010survey.
Kevin Cornelius Chris Debner
HumanCapitalPartner HumanCapitalSeniorManager
June2009
Global mobility effectiveness survey
1. Introduction
TheGlobal mobility effectiveness survey 2009analyzestheef-
fectivenessoftheglobalmobilityfunction,processesandpoli-
ciesofleadingmultinationalcompaniesandofferscomparison
withourfrst2008survey.Additionally,thesurveycovered
questionsrelatedtothecurrenteconomicclimatebyanalyzing
costmanagementstrategiesintheinternationalHRenviron-
ment.
Questionnaireswerereceivedfrom155organizationshead-
quarteredacrossEurope,theAmericasandAsia-Pacifcfroma
diversityofindustrysectorsprovidingstatisticallysignifcant
fndingsacrossthegeographiesandsectors.
2. Respondentscompanyprofle
50%oftheparticipantsofourGlobal mobility effectiveness
survey 2009areheadquarteredinEurope,39%intheAmericas
and11%havetheirheadquartersinAsia-Pacifc,demonstrating
theglobaldimensionofthesurveyandprovidingcontrast
acrossthethreegeographicareas.
Where is your Company headquartered?
50 7 Lurope
39 7 1he Americas
11 7 AsiaPacilic
Theparticipatingrespondentcompaniesoperateacrossthefull
rangeofindustrysectorswithFinancialServices(15%),Indus-
trialProducts/Manufacturing(13%),Technology(13%)and
Retail&ConsumerProducts(12%)moststronglyrepresented.
To which industry sector does your Company belong to?
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Responses in 7
Over50%oftherespondentssurveyedrepresentmultinationals
withmorethan20,000staff,and14%withmorethan100,000
employees.Butalsosmallercompaniesparticipatedinoursur-
veywith44%havinglessthan20,000employees.
How many people are employed in your Company worldwide?
^ 7 0 1,000
1^ 7 1,001 5,000
26 7 5,001 20,000
23 7 20,001 50,000
19 7 50,001 100,000
1^ 7 Over 100,000
26%
15%
13% 13%
12%
7% 7%
4%
3%
3. Typesofassignmentsandpolicies
Assignmentsaremostlycoveredanddefnedbypolicieswith
themostcommonbeingshort-term(oftenlessthan12of
18monthsinterm)orlong-termassignmentpolicies(often
15yearsinterm).
3.1.Short-termassignments
Almostthree-quarteroftherespondentsindicatedthatless
than1%oftheirtotalglobalemployeesareexpatriatesonshort-
termassignments.
What % of the total number of employees are assignees?
Short-term < 12 months
7^ 7 0 1 7
10 7 1 2 7
11 7 2 5 7
5 7 > 5 7
3.2.Long-termassignments
In68%ofthecompaniessurveyed,long-termassigneesrepre-
sent01%oftheirtotalworkforce.
What % of the total number of employees are assignees?
Long-term > 12 months
68 7 0 1 7
13 7 1 2 7
12 7 2 5 7
8 7 > 5 7
AsageneraltrenditcanbeobservedthatEuropeanheadquar-
teredcompaniessendmoreexpatriatesonshort-termassign-
mentsthanAmericanandAsian-Pacifcbasedcompanies.15%
oftheEuropeancompaniesindicatethatover2%ofemployees
areshort-termassignees,whereasonly11%oftheAmerican
and8%oftheAsian-Pacifccompanieshaveover2%oftheir
employeesonshort-termassignments.Incontrast,thereare
morelong-termassigneessentfromAsian-Pacifcheadquar-
teredcompaniesthanfromAmericansorEuropeans:30%of
Asian-Pacifccorporationsindicatedthatover2%oftheirem-
ployeesareonlong-termassignmentswhileonly15%ofthe
Americanand18%oftheEuropeancompaniesreportedsucha
fgure.
3.3.Driversforassignments
Thesurveyshowedthatmostinternationalassignmentsare
projectbased,followedbymanagerialandstrategicassign-
mentswhichwerecitedasthesecondmostfrequentdriver.The
leastfrequentassignmentsareemployeedriven,besidesother
reasonscited.
What are the main drivers in your Company for sending people
across borders?*
07
107
207
307
407
507
07
707
807
907
1007
OLher Lmployee
driven
DevelopmenLal Manaqerial/
sLraLeqic
Pro|ecL based
MosL lrequenL driver LeasL lrequenL driver
*Multipleanswerspossible
ThegeographicalcomparisonshowsthatinEuropeemployee
drivenassignmentsoccurmorefrequentlythaninAsia-Pacifc,
butsubstantiallymorethanintheAmericas.Employeedriven
assignmentsarelessexpensiveforcompaniesduetopossible
savingsintraditionalexpatriateallowances,suchasmobility
premiums.AmongEuropeanheadquarteredcompaniestheuse
ofthistypeofassignmenthasrisennoticeablycomparedtolast
yearsresults.Therefore,companiesintheAmericasmaycon-
siderwhetheremployeedrivenpolicieswouldworkeffciently
withintheirHRfunctions.
InAsia-Pacifc,managerialandstrategicreasonsarethemost
frequentdriverforinternationalassignments.Butinterestingly
inEuropeanandAmericanheadquarteredcompaniesthere
wasapproximatelyathirdwhoindicatedotherdrivers,which
maybeglobalnomads,technicalskills,etc.,whereasnoneof
theAsia-Pacifccompaniesexperiencedsuchdrivers.Thismay
bearesultofthestageofgrowthorcomplexityofanassignment
programorsimplyofdifferentcorporateculturesacrossthe
geographies.
78%
22%
66%
34%
26%
74%
19%
81%
18%
82%
Asia-Pacific*
07
107
207
307
407
507
07
707
807
907
1007
OLher Lmployee
driven
sLraLeqic
Pro|ecL based
The Americas*
07
107
207
307
407
507
07
707
807
907
1007
OLher Lmployee
driven
sLraLeqic
Pro|ecL based
Europe*
07
107
207
307
407
507
07
707
807
907
1007
OLher Lmployee
driven
sLraLeqic
Pro|ecL based
80%
20%
83%
17%
69%
31%
24%
76%
31%
69%
86%
14%
100%
86%
14%
31%
69%
100%
0% 0%
81%
19%
74% 73%
43%
22%
26%
27%
57%
78%
Themajorityofthesurveyedcompanies(82%)havenotdiffer-
entiatedtheirpolicies,i.e.fordevelopmentalandstrategicas-
signments;however10%ofthoseareconstructingnewpolicies.
Recenttrendshaveshownthatcompaniesaremovingtowards
suchdifferentiatedpoliciestoseekbeneftsfromcostsavings,a
betteralignmentoftheirinternationalassignmentswiththeir
globaltalentmanagementprocessesandabetterftofthebusi-
nesscasesandtheassignees.Iftheseapproachesdodeliver
value,therearemanysurveyrespondentswhomaywishto
evaluateachangeinpolicyapproachtounlockthesebenefts.
Do you have different policies for developmental and
strategic assignments?
72 7 No
18 7 Yes, in place
10 7 Under consLrucLion
In2009,44%oftherespondentsdevelopedtheirpolicywiththe
useofbenchmarkingand32%usedexternalproviderstodevel-
optheirinternationalassignmentpolicy.Incomparisontoour
2008surveyageneraltrendcanbeseenforengagingexternal
providerstodevelopinternationalassignmentpolicies.
3.4.Assignmentpolicies
Wesurveyedthetypesofassignmentpoliciesusedordeployed
byrespondentsandunsurprisinglyfoundthatlong-termpolicies
(71%)andshort-termpolicies(67%)aremostcommonly
used.
Interestingly,forAsian-Pacifcheadquarteredcompanies,trans-
ferpolicies,foreignlocalhirepoliciesandregionalpoliciesplaya
moreimportantrolethanintheAmericasandEurope,whereas
manyEuropeancompaniesstillhaveonlyoneglobalpolicy.
Which policies for internationally mobile employees exist in
your Company?*
0 7
10 7
20 7
30 7
40 7
50 7
0 7
70 7
80 7
90 7
100 7
CommuLer
policy
Reqional
policies
Foreiqn local
hire policy
1ransler
policy
CommuLer
policy
ShorLLerm
policy
LonqLerm
policy
Responses in 7
71%
67%
45%
31 %
24%
23%
22%
Bytakingacloserlookonthethreegeographicareasofoursur-
vey,itcanbeobservedthatpoliciesaremoreoftenreviewedin
theAmericasandinEuropethaninAsia-Pacifc.
How often do you review / benchmark your policy?
29 7 Annually
23 7 Lvery second year
16 7 Lvery Lhird year
32 7 More rarely
What describes the approach your Company took in developing your
policies best?*
Responses in 7
0 7
10 7
20 7
30 7
40 7
50 7
0 7
OLher Don'L know Policy was
developed in
House
{selldeveloped)
Policy was
developed
wiLh Lhe help ol
an exLernal
provider
Policy was
developed wiLh
Lhe use ol
benchmarkinq
wiLhin Lhe indusLry
Inconstantlychangingmarketsandbusinessobjectives,compa-
niesareencouragedtoupdatetheirpoliciesregularly.Thisis
especiallytrueinthecurrenteconomicsituationascostaware-
nessandtheneedforraisingeffciencyareashighasneverbe-
fore.However,accordingtothesurveyonly29%ofparticipating
companiesrevieworbenchmarktheirpolicyannuallyand23%
doiteverysecondyear.
44%
32%
28%
16%
3%
Themajorityoftheparticipatingcompanies(39%)indicated
thatoneinternationalhumanresourceemployeehandleson
averagelessthan25assignees.In25%ofthecompaniesone
dedicatedinternationalhumanresourceemployeehandles
2549assigneesandin36%ofthecompaniesthenumberof
assigneesperIHRemployeeisevenhigher.Thisshowsawide
varianceinthelevelofpotentialinteractionbetweenglobal
mobilityfunctionsandtheirassigneesandallowsconsiderations
ofthebalancebetweencomplexityandeffciencyofglobalmo-
bilityfunctions.
How many assignees are handled on average by a dedicated
IHR employee?
39 7 02^
25 7 25^9
29 7 5099
3 7 1001^9
^ 7 > 150
4. Globalmobilityfunction
Thefollowingquestionslookedatthestaffngandgeographical
organizationofacompanysglobalmobilityfunction.
4.1.Organizationalsetup
Outoftheparticipatingcompanies,69%werefoundtohave
lessthan6full-timeemployeesdedicatedtotheirinternational
humanresourcemanagement.
Please provide the number of dedicated IHR staff in your Company.
(Number of FTEs)
69 7 05
15 7 610
10 7 1125
6 7 > 25
The Americas
^1 7 02^
19 7 25^9
37 7 5099
0 7 1001^9
3 7 > 150
Europe
35 7 02^
30 7 25^9
22 7 5099
3 7 1001^9
10 7 > 150
Asia-Pacific
75 7 02^
0 7 25^9
12 7 5099
0 7 1001^9
13 7 > 150
ThegeographicalcomparisonshowsinEuropethatinternational
HRteamshandlethehighestnumberofassigneesperteam
member.InEurope,onefull-timeIHRemployeeisonaveragere-
sponsiblefor46assignees,inanAmericanheadquarteredcom-
panyanIHRemployeeistypicallyresponsiblefor41assignees
andinAsia-PacifctheIHRteammembercoversonaverage
30assignees.Theresultsaremorepronouncedforlargeras-
signeepopulationswhere10%ofEuropeanheadquarteredcom-
paniesnotedthatanIHRteammemberisresponsibleformore
than150assignees,comparedto3%ofAmericanheadquar-
teredcompanies.
How is your staff geographically organized?
3^ 7 HO & reqional cenLers
31 7 Only HO
20 7 HO & selecLed counLries
10 7 Clobal /reqional
employmenL orqanizaLions
5 7 FuncLional
60%oftheparticipantsbelievethatthenumberoftheirdedicat-
edinternationalhumanresourcestaffisjustright,whereas36%
havetheperceptionthattheirIHRisunderstaffed.AlthoughIHR
employeesofEuropeanheadquarteredcompanieshavetohan-
dlemoreassignees,signifcantlymorerespondentsofAmerican
basedoperationssaythattheyareunderstaffed.
Do you believe that your IHR is overstaffed / understaffed?
60 7 JusL riqhL
36 7 UndersLalled
^ 7 OversLalled
Themajorityofglobalmobilityteams(34%)arelocatedin
headquartersandregionalcentersand31%aretobefoundonly
inheadquarters,adheringtothegeneraltrendseeninthemar-
kettocentralizetheglobalmobilityfunctionandadministration
oftheassignments.
Overthelastfewyearsagrowingnumberofmultinationals
havesetupaglobaland/orregionalemploymentorganizations.
Reasonsforestablishingaglobalemploymentorganizationare
multipleandrangefromanincreaseintheeffectivenessoftheir
globalmobilityfunctiontopermanentestablishmentriskreduc-
tion.ThebeneftsderivingfromaGEOarenumerouswhileat
thesametimethecomplexityofdesigningandimplementing
suchastructureshouldnotbeunderestimated.
In2009morecompanies(10%)reportedtohavesuchaglobal
and/orregionalemploymentorganizationsinplacecomparedto
2008(7%),andourexperienceinthemarketshowsthatan
increasingnumberofcompaniesarealsocontemplatingamove
intosuchastructure.
What are the most often addressed issues by international assignees,
i.e. what did not meet their expectations during an assignment?*
0 7
10 7
20 7
30 7
40 7
50 7
0 7
70 7
PosiLion
relaLed issues
LocaLion/
culLural
issues
OLher RepaLriaLion Family
spouserelaLed
issues
CompensaLion
packaqe
Responses in 7
*Multipleanswerswerepossible
4.2.Meetingexpectationsandreturnon
investments
Thischapterfocusesonthemostcommonassigneeissuesand
analyzestheissueslinkedtorepatriation.
Itisimportantwhenanalyzingtheresultsofaglobalmobility
functioninmeetingexpectations,tolookatitfromtwosides,
boththecompanyexecutivemanagementsperspectiveand
thatoftheassignee.Iftheassignmentexperiencehasturned
outtobenegativeand/orledtotheterminationoftheem-
ployee,globalmobilityinvestmentsmayhavebeenlost.
Theuseofkeyperformanceindicators(KPIs),whichareclosely
linkedtothecompanysoverallbusinessstrategyfortheglobal
mobilityfunction,hasbecomemorewide-spreadinrecent
years.However,thecomplexityofidentifyingtherightKPIsfor
acompanyandtheavailabilityandcomparabilityofquantitative
andqualitativedataaroundtheassignmentprocessremainsa
challengeformany.
56%oftherespondentsofthissurveyagreedthatthemain
issuewhereassigneeexpectationswerenotalwaysmetisthe
compensationpackage,followedbyfamily-andspouse-related
issues(40%)andrepatriation(28%).
56%
40%
28%
18%
16%
8%
ThegeographicalcomparisonshowsthatinEuropefamily-and
spouse-relatedissuesaswellastherepatriationphaseofanas-
signmentaremuchmoreoftenaddressedbyassigneesthanin
theAmericasorinAsia-Pacifc.Inreturn,compensationpack-
agesseemtobeespeciallyimportantanddiffculttohandlein
Asia-Pacifc.
The Americas*
PosiLion
relaLed
issues
LocaLion/
culLural issues
spouserelaLed
issues
CompensaLion
packaqe
Responses in 7
Europe*
PosiLion
relaLed
issues
LocaLion/
culLural issues
spouserelaLed
issues
CompensaLion
packaqe
Responses in 7
Asia-Pacific*
PosiLion
relaLed
issues
LocaLion/
culLural issues
OLher RepaLriaLion Family/
spouse relaLed
issues
CompensaLion
packaqe
Responses in 7
*Multipleanswerswerepossible
Adefnedrepatriationprocesslinkedtotheglobaltalentman-
agementsystem,withhomecountrysupportandrecognition,
aresomeoftheprovenwaystomanageassigneeexpectations
andkeepvaluableexperiencesgainedwithintheglobalorgani-
zation.Suchprocesseswillbemoreacutelyneededbyglobal
mobilityfunctionswhereIHRemployeeshavetohandleonaver-
ageahigheramountofassignees,butallIHRwillstilllikelyface
resourceconstraintsinaddressingtheseissuessuffciently.
Tomanagefamily-relatedissues,spousalsupportand/orallow-
anceisoftenprovided.Itisbecomingincreasinglymoreimpor-
tanttofndalternativewaystosupportspousesthansimplythe
paymentofallowanceswhichcanbespentonadiscretionary
basis.Innovativesolutionscanbeconsideredsuchasproviding
morehands-onspousalsupportwithspousebusinessnetworks,
assistanceinjobsearchandinobtainingworkpermits.Another
trendthatcanbeobservedaretheso-calledvirtualcareers:
whilethespouseaccompaniestheinternationalassigneehe/she
continuestoworkonavirtualbasisforhis/heremployerinthe
homecountryalthoughthisthrowsupotherimmigration,tax
andsocialsecurityissues.
54%
41%
28%
13%
21%
15%
48% 48%
35%
25%
17%
2%
100%
17%
8% 8% 8%
0%
Whenanassigneereturnshomebeforetheplannedendoftheir
assignment,thismayleadtoaconsiderablelossofreturnonin-
vestmentforthecompanyandontheotherhandtodissatisfac-
tionoftheassignee.Thatsaid,81%oftherespondentsindicat-
edthatlessthan5%oftheirassigneesreturnbeforethe
contractualenddate.However,forthe8%ofrespondentsindi-
catingthatmorethan20%oftheirassigneesrepatriatebefore
theendoftheassignment,thereseemstobeworktobedone.
Whereas10%ofassigneesfromEuropeanand9%ofassignees
fromAmericanheadquarteredcompaniesreturnearlierthan
expected,only6%ofassigneesfromAsian-Pacifcbasedcorpo-
rationsgobackbeforetheenddateoftheirinternationalassign-
ment.
What is the appropriate % of international assignees who return from
their assignment before the contractual end date?
81 7 ol respondenLs indicaLed
LhaL 5 7 reLurn earlier
LhaL 1020 7 reLurn earlier
LhaL > 20 7 reLurn earlier
Theanswerstooursurveyquestionsontherepatriationphase
showthatmostassigneesreturntoanotherposition(38%),
whichisnotastonishingastheirnewlygainedexperiencesand
knowledgeenablethemtotakenewresponsibilities.However,
24%ofassigneesreturntotheirpreviousposition/department.
23%ofallexpatriatesgoagainonassignmentduringthenext
2yearsfollowingtheirrepatriationand12%resignfromtheir
companyinthefollowing24monthsaftercomingbackfrom
abroadwhatimpliesaconsiderablelossofinvestmentandloss
ofvaluableknowledgeforthecompany.Incomparablestudies
thepercentageofassigneeswholeavetheircompanieswithin
24monthsafterrepatriationisevenhigherandrangesbetween
15%and40%.
Whentakingacloserlookonthegeographicsplitsomeconsid-
erabledifferencesofassigneesnextstepsafterrepatriationcan
beobserved:
InEuropeandinAsia-Pacifcaround40%ofhome-comingexpa-
triatesreturntoanotherposition.IntheAmericasitisonlyone
thirdoftheassigneesthattakenewresponsibilities.
InAsia-Pacifc31%oftheassigneesreturntotheirprevious
positionand/ordepartment.IntheAmericasandinEuropethis
numberisclearlysmaller:slightlyover20%fllthesamejob
theyoccupiedbeforetheirassignment.
IntheAmericasandinEuropeonequarterofthereturned
expatriatesgoagainonaninternationalassignmentduringthe
2yearsfollowingtheirinitialassignments.InAsia-Pacifconly
12%goagain.
Americanheadquarteredcompanieshavetoacceptthelargest
lossofexpatriatesinthe2yearsaftertheirrepatriationand
thereforehavepresumablyissueswiththerepatriationphaseas
15%ofreturnedexpatriatesleavetheircompaniesduringthis
time,whileinEurope10%andinAsia-Pacifconly7%resign
fromtheircompanies.
During the first 2 years after repatriation, what percentage
of your assignees:

Resiqn lrom your company
Co aqain on an assiqnmenL
ReLurn Lo Lheir previous posiLion/deparLmenL
ReLurn Lo anoLher posiLion
All respondneLs 1he Americas Lurope AsiaPacilic
38%
35%
40%
41%
24%
22%
24%
31%
23%
25%
23%
12%
12%
15%
10%
7%
Which of the following phases of the international assignment process
is the most difficult from your experience?
18 7 SelecLion ol Lhe assiqnees
37 7 PreparaLion
{predeparLure)
11 7 AssiqnmenL
2^ 7 RepaLriaLion
10 7 PosLrepaLriaLion
Thejuxtapositionofthemostimportantandmostdiffcultphas-
esinthegeographicsplitshowssomeinterestinginsightswitha
clearandsurprisinggapindistinctionbetweenwhatisimpor-
tantversusdiffcultespeciallyintherepatriationandpost-repa-
triationphases.Intalkingtosomecompaniesabouttheresults
itseemsthatalthoughtheawarenessistherethebusinessde-
mandsgreaterfocusontheearlierstagesoftheassignment
processandhenceobjectives(importance)aresetappropriate-
ly.Agreaterawarenessofthepotentiallossofinvestmentcom-
ingfromtherepatriationstagesmayhelpchangethebusiness
focus.
5. Globalmobilityprocesses
Thefollowingquestionsanalyzetheimportanceandchallenges
ofdifferentglobalmobilityprocesses.
Whenaskedforthemostsignifcantphaseoftheinternational
assignmentprocess,themajorityoftheparticipatingcompanies
(55%)consideredthepreparation(pre-departure)phaseas
themostimportantfollowedbytheselectionoftheassignees
(36%).Thisseemstobeespeciallytrueforcompanieswith
headquartersintheAmericasandAsia-Pacifc,whichseemto
focusalmostexclusivelyonthesetwophases,whereasinEu-
ropetheassignmentphase,repatriationandpost-repatriation
areweightedwithgreaterimportance.
Which of the following phases of the international assignment process
is the most important from your experience?
36 7 SelecLion ol Lhe assiqnees
55 7 PreparaLion
{predeparLure)
8 7 AssiqnmenL
1 7 RepaLriaLion
1 7 PosLrepaLriaLion
Anotherpictureemergeswhenaskingaboutthemost
diffcultphaseoftheassignmentprocess.Theparticipating
companiesreportthemostdiffcultieswiththepreparationof
theirassignees(37%)andtheirproperrepatriationafterthe
assignment(24%).
Asia-Pacific
0 7
10 7
20 7
30 7
40 7
50 7
0 7
PosL
repaLriaLion
RepaLriaLion AssiqnmenL PreparaLion
{predeparLure)
SelecLion
ol Lhe
assiqnees
MosL imporLanL phase MosL dilliculL phase
The Americas
0 7
1 07
2 07
3 07
4 07
5 07
07
PosL
repaLriaLion
{predeparLure)
SelecLion
ol Lhe
assiqnees
Europe
0 7
10 7
20 7
30 7
40 7
50 7
0 7
PosL
repaLriaLion
{predeparLure)
SelecLion
ol Lhe
assiqnees
38%
13%
59%
41%
3%
18%
0% 0%
18%
10%
50%
33%
50%
42%
0% 0% 0% 0%
8%
17%
31%
21%
51%
29%
14%
6%
2%
33%
2%
10%
5.2.Preparation
For55%oftheparticipatingcompaniesagoodpreparationofan
assignmentismostimportantandforthemajority(37%)also
themostdiffcultpossiblyduetorapidlychangingeconomicand
regulatoryenvironmentsfacedbycompanies,anincreasing
numberofassignmenttypesanddifferentcountrycombinations
involvedandheavierdemandsbythebusinessonanincreasing-
lyresource-scarceIHRfunction.
AmericanandAsian-Pacifcbasedcompaniesespeciallyrecog-
nizetheimportanceofthisphase,butatthesametimeseemto
havethemostdiffcultiestomanageitproperly.
5.3.Onassignment
Onassignmentchallengeswereconsideredlesscrucial,only8%
oftherespondentsvotedthesemostimportantpointingto-
wardsthediffcultiesrelatingtotheassigneeandfamilyadapt-
ingtothenewcultureandbusinessenvironment.However,this
resultissurprisingasinarecentstrawpollofHRdirectors
aroundtheworldtalentmanagementandsuccessionplanningis
akeyobjectivewhichwouldftintothispartoftheassignment
process.
IntheAmericasonly3%ofthesurveyedcompaniesperceive
thisphaseasmostimportant,thoughcomparedtotheother
geographicareastheyfaceatthispointofanassignmentthe
greatestchallengesas18%admittedthatitisthemostdiffcult
one.
5.1.Selection
Therightselectionofandbusinesscasefortheassigneeisan
imperativeforasuccessfulassignment.Asexpected,itwas
thereforedeclaredasoneofthemostimportantphasesbythe
participantsofoursurvey.
Itisinterestingtoseethatonly11%oftheglobalmobilitypro-
fessionalssurveyedcouldreportthattheyareactuallyinvolved
intheselectionprocessofassignees,andonly28%reportedto
beinvolvedonacasebycasebasis,thusshowingthevastma-
jorityofglobalmobilityprofessionalsarenotatallinvolvedin
theselectionprocessdespiteperceivingittobeoneofthemost
importantones.Companiesshouldthereforeconsiderincreas-
ingtheinvolvementoftheglobalmobilityfunctionintheselec-
tionprocess,giventhefactthatthisisoftenthefrstandmost
criticalstageintheoverallsuccessoftheassignment.Global
mobilityprofessionalshavebetterinsightintothecharacteris-
ticsandrequirementsneededforworkingoverseasandshould
partnerwithlinemanagerstohelpselectthebestpossiblecan-
didates.
Is your IHR involved in the selection process of assignees?
61 7 No
28 7 Case by case
11 7 Yes
6. Globalmobilityservices
Thefollowingchapterlooksattheuseofglobalandlocalservice
providersandthesplitofin-houseactivitiesbetweenIHRand
localHRduringthepreparationandduringanassignment.Addi-
tionallyalookwastakenattheuseoftechnologyandfuture
trendsinglobalmobility.
6.1.Preparationservices
Whenpreparationservicesareperformedinternally,theyare
mostoftensharedbetweenIHRandhostHR.Informationmeet-
ingsandimmigrationareinthemajorityofcasesorganizedby
IHR,whilelook&seetripsarearrangedbyhostHR.Taxexit
meetings,languagecoursesandcross-culturaltrainingsinthe
majorityofcasesarenotdealtwithbyeitherhome,hostHRor
IHR.
5.4.Repatriation/Post-repatriation
Only1%oftherespondingcompaniesseetherepatriationphase
asthemostimportantone,whereas24%declaredrepatriation
asmostchallenging.InparticularEuropeanheadquarteredcom-
paniesseecomplexityinbringinghometheirexpatriatesand
33%declaredthisphaseoftheassignmenttobemostdiffcult.
InterestinglyAmericancompaniesdonotperceivetherepatria-
tionphaseasdiffcultastheirEuropeancounterparts,although
theyhavethehighestturnoverrateofrepatriates.
Themajorityofthecompaniessurveyedreportedtohavea
standardizedrepatriationprocessinplace(65%)whichhelps
todealwithassigneeretentionandreadjustmenttothehome
countryenvironment.However,35%ofrespondentsindicateda
lackofsuchprocessesintheirorganization,possiblyleadingto
ahigherexpatriateturnoverandsubsequentrelatedcosts.
Do you have a standardized repatriation process?

65 7 Yes
35 7 No
Linkingtalentmanagementsystemstoassignmentmanage-
mentandpreparingforafuturejobalreadyintheassignment
preparationphaseandalsoinitiatingtherepatriationprocess
withengagingindiscussionswithexpatsuptooneyearbefore
theendoftheassignmenthasproventobeakeyinthelong-
termretentionofreturningassignees.
Which activities are performed to prepare staff for international
assignments?*
Internal
lHR ln house {noL lHR)
CrossculLural Lraininq Lanquaqe courses 1ax exiL meeLinqs Look & see Lrips lmmiqraLion lnlormaLion meeLinqs
HosL HR n/a
Wherepreparationservicesareoutsourced,localprovidersare
chargedwithlanguagecoursesandlook&seetrips,whereas
globalprovidersmoreoftentakecareoftaxexitmeetings,infor-
mationmeetings,immigrationandcross-culturaltraining.
Which activities are performed to prepare staff for international
assignments?*
External
Local provider Clobal provider
lnlormaLion meeLinqs 1ax exiL meeLinqs CrossculLural Lraininq lmmiqraLion Look & see Lrips Lanquaqe courses
n/a
Whengroupingtheresponsesintothethreegeographicalareas,
itcanbefoundthatmoreglobalprovidersareusedintheAmer-
icasandinAsia-PacifcwhileEuropeanheadquartercompanies
stillusemorelocalproviders.
66%
16%
13%
6%
35%
17%
28%
20%
25%
15%
41%
19%
22%
14%13%
51%
21%
4%
21%
54%
20%
6%
10%
64%
67%
25%
8%
47%
32%
20%
45%
50%
5%
42%
44%
14% 14%
82%
3%
14%
82%
33%
6.2.Ongoingassignmentservices
Activitiesperformedduringassignmentssuchasperformance
management,salaryreviews,crisismanagement,exception
management,costmonitoringandrepatriationarenormally
linkedtostrategicdecisionsandthereforekeptinternally.Thisis
seenasleadingpracticeamongmultinationalsalsoaccordingto
othersurveys.
Exceptionmanagement,repatriationpreparationandcostmoni-
toringaremostlyperformedbyIHR,whereashostHRtakescare
ofperformancemanagementandcrisismanagement.Salary
reviewsareasoftenaddressedbyIHRasbyhostHR.OtherIn-
houseHRfunctionsaremainlyinvolvedinperformanceman-
agement,salaryreviewsandcrisismanagement.
Which activities are performed during international assignments?
Internal
lHR ln house {noL lHR)
Crisis manaqemenL Perlormance manaqemenL Salary reviews CosL moniLorinq RepaLriaLion preparaLion LxcepLion manaqemenL
HosL HR n/a

71%
9%
11%
9%
63%
18%
12%
7%
52%
22%
17%
10%
34% 34%
32%
0%
11%
32%
53%
3%
27%26%
33%
14%
Wherecompanieshaveoutsourcedtheirongoingassignment
services,almostonlyglobalprovidersareused,withafew
exceptionsinrepatriationpreparationandcrisismanagement
wherealsolocalprovidersmightbeemployed.
Which activities are performed during international assignments?*
External
Clobal provider Local provider
Salary reviews LxcepLion manaqemenL CosL moniLorinq Crisis manaqemenL RepaLriaLion preparaLion
n/a
*Norespondentdoesperformancemanagementexternally
61%
8%
31%
55%
3%
36%
0% 0% 0%
31%
16%
42%
64%
69%
84%
Policymanagement,compensation&benefts,shareplans/
stockoptions,payroll,pension,securityissuesandinsurance
areinmostcasesmanagedinternally.Mostcompaniesreport
thatinternalaswellasexternalservicesaddresssocialsecurity,
laborlawissuesandhousing,whereasglobalhealthcare,school-
ing,immigration,relocation/shippingandtaxcompliancearein
mostofthesurveyedcompanieshandledexternally.
Incomparisontoour2008surveythetrendtowardsoutsourc-
inghasincreasedandmorecompaniesassignactivitiessuchas
immigration,housingandschooling,relocation/shippingandtax
compliancetoexternalproviders.
How does your Company address the following topics?
lnLernal LxLernal BoLh
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wheretheysitintermsofprovisionofglobalmobilityservices
withtheabovesurveydata.
86%
72% 72%
67%
65%
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7% 1% 1%
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46%
43%
28%
48%
32%
41%
44%
46%
40%
67%
26%
59%
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6.3.Technology
Themajorityoftheparticipatingcompaniesusetechnologyto
manageassigneedatastorage(68%),assignmentcostestima-
tion(53%),balancesheetgeneration(52%)andtaxandso-
cialsecuritycompliance(51%).
In which areas are you using technology to support your
global mobility process?*
Responses in 7
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Furtherpossibilitiestousetechnologyinthefuturearemainly
seeninassigneecostestimation(54%),assigneedatastorage
(47%)andbalancesheetgeneration(37%).
In which of the following areas do you plan to use technology
in the future?*
Responses in 7
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Useoftechnologyisanotherwaytoshiftglobalmobilityprofes-
sionalsfocustostrategicissuesratherthandealingwithtime
consumingadministrativetasksaswellastoreducecostsand
makeeffciencysavings.Mostoftheglobaltaxservicesprovid-
ersalsohaveglobaldatabasesavailablefortheadministration
ofassigneedata,taxreturns,costcollectionandestimations
andbalancesheets,whichcansignifcantlysaveglobalmobility
timeandcost.
Ontheotherhanditissurprisinginsomewaysthattheuseof
technologyisnotmorewidespreadincertainkeyareasof
IHRadministration,especiallycostestimation,assigneedata
storageandbalancesheetgeneration,orinchallengingareasof
globalcorporatecompliancesuchascompensationaccumula-
tionorglobalequity.
68%
53% 52%
51%
39%
30%
12%
10%
8%
54%
47%
37%
35%
32%
24%
21%
10% 9%
6.4.Futuretrends
Mostoftheparticipatingcompanies(47%)donotplantoout-
sourceanyIHRandin-houseactivitiesduringthenext1to2
years.However,thosewhowilloutsourcementionedadministra-
tion,payroll,relocationservices,immigrationandtaxandsocial
securityasareasthatwillbepassedtoexternalproviders.In
comparisonto2008,adecreaseinoutsourcingplanscanbeob-
servedinmostareas.
Which of your IHR and in-house activities are you planning to
outsource during the next 1 to 2 years?
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Asimilarpictureshowswhenlookingattheinsourcinginten-
tionsofthesurveyedcompanies.86%ofparticipantssaidthat
theyhadnoplanstoinsourcecurrentlyoutsourcedactivities.In
theAmericasandinAsia-Pacifc,nocompanyreportedanyin-
tentiontoplananyactivitiesduringthenext1to2years.
Again,in2008thepercentageofcompaniesplanningtoin-
sourceanyactivitieswasmuchhigher.
Outsourcingawellasinsourcingmeansabigchangeeffortthat
manycompaniesareapparentlynotwillingtoassumeinthe
currenteconomicsituation,oralternativelytheyhavealready
completedtheirplans.
Which of your IHR and in-house activities are you planning to insource
during the next 1 to 2 years?
3FTQPOTFTJO
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47%
26%
9%
6% 6%
4%
3%
86%
8%
5%
7. Riskmanagement
ThemostchallengingIHRtopicswereindicatedbythepartici-
patingcompaniestobetaxcompliance(52%),immigration
(39%)andcompensationandbenefts(37%).Theimportance
oftaxandimmigrationcomplianceisconsideredoneofthekey
challengesalsobyothersimilarsurveysconductedinthelast
twoyears.Thisislikelyduetoaconstantlychangingregulatory
environment,newtypesofassignmentsandthehighervariance
inassigneenationalities.Infactwithtaxlawsnowchangingin
responsetofallingtaxrevenuesincertaincountries,andin-
creasedimmigrationscrutinyinmanymarketsduetorisingun-
employment,ourviewisthatthesechallengeswillonlyin-
crease.
Companiesseemtohavelessdiffcultiesindealingwithsecurity
fortheirassignees,relocation/shippingandinsuranceasthese
topicswerenamedastheleastchallenging.
Whereastaxcomplianceandimmigrationarestillontopofchal-
lengingIHRtopics,thecomparisonwithour2008surveyshows
thatcompaniesreportedmorediffcultieslastyearinpolicy
management,payroll,laborlawissuesandsocialsecurityandit
islikelythattheirprioritieshavechangedratherthandiffculties
intheseareasdecreased.
Which of the following IHR topics are the most challenging in your
company?*
Very challenqinq Challenqinq NoL challenqinq
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52%
31%
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39%
37%
34%
33% 33% 33%
28% 28%
23%
17%
19%
10%
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36% 36%
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36%
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58%
Themainissuesintheglobalmobilityprocesswherecompliance
risksareidentifedbytherespondentsofthissurveyareincome
taxreportingandwithholding(63%),accidentalexpatriates
(53%),socialsecurityreportingandwithholding(45%)and
corporatetax(45%).
Theseglobalmobilityriskscanadverselyaffectbusinessobjec-
tivesand/orresultinpenalties,additionaltaxes,lossofcostcon-
trol,fnancialstatementexposure,harmtocompanyreputation
and/orlosttax/costsavingopportunities.Thereforesettingupa
riskmanagementprocesstomonitorandimprovecurrentinter-
nalcontrolshasbecomehigherupintheglobalmobilitymanag-
ersagenda.Manymultinationalshavealreadydevelopedand
beneftedfromacommonglobalriskmanagementmethodology
toincludeimprovedresultsintheglobalmobilityfunction,to
avoidanypotentialharmtothecompanysreputation.
What are the main areas in your global mobility process where you see
compliance risks?*
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63%
53%
45% 45%
36%
19%
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IntheAmericas,immigrationissues(43%)arealsoseenasa
signifcantcompliancerisk,whereasinEurope,accidentalexpa-
triates(77%)andcorporatetax(60%)seemtobebigchal-
lengesinadditiontoincometaxreportingandwithholding.
The Americas*
Responses in 7
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8. Globalmobilityeffectiveness
Alargemajorityoftheparticipatingcompanies(71%)stated
thattheirglobalmobilityfunctionisveryeffectiveand25%
indicatedthatitiseffective.
AmericanandEuropeanheadquarteredcompaniesweremore
self-confdentintheiranswerstothisquestionthanAsian-Pacif-
icoperationswhichjudgedonly30%oftheirIHRfunctionsas
veryeffectiveand50%aseffective.
How would you rate the effectiveness of your IHR function?
71 7 Very ellecLive
25 7 LllecLive
^ 7 NoL ellecLive
Inordertoachieveexcellenceinglobalmobility,thesurveyed
companiesseeurgentneedofimprovementinthefollowing
areas:assignmentadministration(30%),costcontrol(26%)
andprocesses(26%).
Astheglobalmobilityfunctionthrivesforexcellence,thefollow-
ingthreeareaswereseenasrequiringthemosturgentneedfor
improvement:consistencyofpolicies,processesandstructure
(44%),centralizingglobalmobilityknowledge(31%)andthe
useoftechnologyandHRsystems(13%).
Where do you see the most urgent need of improvement in your
IHR functions? / What are your top priorities for this year?*
Responses in 7
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Whencomparingthethreedifferentgeographicalareas,itisin-
terestingtoseethatintheAmericasassignmentadministration
(38%)andprocesses(34%)areprioritiesforimprovement,in
Europepolicies(23%)arethetoppriority,whereasinAsia-Pa-
cifcprocesses(50%)andtax/compliance(38%)arethemost
importantareasofimprovement.
The Americas*
Responses in 7
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38%
28%
34%
21%
10% 10%
7%
14%
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3%
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15%
21%
23%
8% 8%
5%
8%
5% 5%
13%
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50%
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38%
0% 0% 0%
9. Costandcontrol
58%oftheparticipantsadmitthattheydonotknowtheexact
costsoftheirinternationalassignmentswhile22%statethat
theydonothaveacompleteoverview.Asaresultcompanies
willnotbeinapositiontoprovideexactfguresforcostsavings
eitherbutapproximationsonly.
Do you have an overview of the cost of your assignments?
58 7 Yes, buL noL exacL cosLs
22 7 No compleLe overview
207 Yes, lully
EspeciallycompaniesfromAsia-Pacifchavetoacknowledge
thattheydonothaveacompleteoverviewofthecostoftheir
assignments(36%).
Americancompanies,however,havethebestoverviewoftheir
assignmentcosts.25%affrmthattheyhaveafulloverviewand
withthisresultcomeinfrstbeforecompanieswithheadquar-
tersinAsia-Pacifc(18%)andinEurope(17%).
The Americas
257 Yes, lully
Europe
177 Yes, lully
Asia-Pacific
^5 7 Yes, buL noL exacL cosLs
187 Yes, lully
Anoverwhelmingmajorityof81%ofthesurveyedcompanies
areplanningmeasurestosavecostsinglobalmobility.
Are you planning any measures to save costs in global mobility?
81 7 Yes
19 7 No
EspeciallyintheAmericas,companiesintendtosavecostsin
IHR:85%oftheAmericanparticipantsareplanningsuchmea-
sureswhilemostofthecompaniesthatdonothavekeyinitia-
tivesforcostsavingsarelocatedinAsia-Pacifc(30%).
The Americas
85 7 Yes
15 7 No
Europe
80 7 Yes
20 7 No
Asia-Pacific
70 7 Yes
30 7 No
Asexpected,themajorityofrespondents(45%)declaretaxes
tobethemaincostdriversoftheirinternationalassignment
programs,followedbyhousing,whichwasnamedby26%ofthe
participatingcompanies.Otherresponses(13%)canbe
groupedintoallowances,exceptionstopoliciesandthecostof
assigneeswhoareoverstayingtheirassignments.
What is the main cost driver in your assignment program?
*OUFSOBUJPOBM
TDIPPMJOH
7FOEPST 0UIFS )PVTJOH 5BYFT
3FTQPOTFTJO
Thecompaniesoutofthethreegeographicareasreporta
signifcantdifferencewhenaskedaboutthemaincostdriver
oftheirassignmentprograms.
CompaniesfromtheAmericas(55%)aswellasfromAsia-Pa-
cifc(67%)assertwithanabsolutemajoritythattaxesarethe
maincostdrivers,whileonly30%ofthecompaniesfromEurope
canagreewiththisappraisal.InEurope,housingseemstobe
oneofthemaincostdrivers(30%)besidestaxes,followedby
vendors(18%).
The Americas
07
107
207
307
407
507
07
707
*OUFSOBUJPOBM
TDIPPMJOH
3FTQPOTFTJO
45%
26%
13%
12%
4%
55%
23%
10% 10%
2%
Europe
07
107
207
307
407
507
07
707
*OUFSOBUJPOBM
TDIPPMJOH
3FTQPOTFTJO
Asia-Pacific
07
107
207
307
407
507
07
707
*OUFSOBUJPOBM
TDIPPMJOH
3FTQPOTFTJO
30% 30%
15%
18%
8%
67%
11%
22%
0% 0%
Thefollowingquestionanalyzedwherecompaniesputtheirfo-
cusoncostsavingsintheirglobalmobilityprograms.Essential-
ly,theyseepossibilitiesforcostsavingsthroughimprovements
inglobalmobilityprocesses(52%)aswellasinlocalizations
(52%).Onethirdrespectivelyputtheirfocusonglobalmobility
policies,beneftsandincentivizationaswellasonvendorman-
agementandoutsourcing.Whilewehaveseenbeforethattaxes
wereidentifedasthemaincostdriversofassignments,itisin-
terestingtoseethatonly21%focustheircostsavingsinitiatives
towardstaxes.Thisshowsthatmorelimitedsavingsrelatedto
taxesareexpected,orunderstoodyetastaxlawsinresponseto
theglobaleconomiccrisisarejuststartingtochange.
On which areas are you focusing your efforts to achieve cost savings?
0 7 10 7 20 7 30 7 40 7 50 7 0 7
Social SecuriLy planninq
OLher
1ax planninq
Clobal MobiiLy SLraLeqy / CompensaLion approach
Vendor manaqemenL
Clobal MobiliLy Policies / BeneliLs / lncenLivisaLion
LocalizaLions
Clobal MobiliLy Processes / Process elliciencies
Responses in 7
52%
52%
34%
34%
33%
21%
10%
6%
CompanieswithheadquarterslocatedintheAmericasputtheir
prioritytoachievecostsavingsonlocalizations(41%),incon-
trasttoEuropeancompanieswhichexpectpossiblecostsavings
mainlyinglobalmobilityprocessesandincreasingprocesseff-
ciencies(30%).
ConspicuouslyfewcompaniesheadquarteredinEuropefocus
ontaxplanningtoachievecostsavings(6%).
The Americas
0 7 10 7 20 7 30 7 40 7 50 7 0 7
OLher
1ax planninq
Vendor manaqemenL
LocalizaLions
Responses in 7
32%
41%
20%
20%
20%
21%
7%
2%
Europe
0 7 10 7 20 7 30 7 40 7 50 7 0 7
OLher
1ax planninq
Vendor manaqemenL
LocalizaLions
Responses in 7
Asia-Pacific
0 7 10 7 20 7 30 7 40 7 50 7 0 7
OLher
1ax planninq
Vendor manaqemenL
LocalizaLions
Responses in 7
30%
28%
25%
22%
17%
6%
7%
4%
43%
43%
36%
36%
36%
21%
0%
7%
Onaverage,95%oftheparticipatingcompaniesareexpectedto
reducetotalassignmentcostsby12%.Themajorityconsiders
5%to10%ofcostsavingsasrealistic.Onlyfew(5%)expectto
save30%andmoreoftheirassignmentcosts.
By what percentage are you expected to reduce total assignment costs?
> 30 7 20 7 30 7 10 7 20 7 5 7 10 7 5 7
Responses in 7
Averyvaryingpictureisshowingwhenlookingattheexpected
reductionoftotalassignmentcostsinthethreegeographicar-
easofoursurvey.
Asian-Pacifccompaniesexpectthehighestcostreductions
(100%expecttoreduceonaverage16%oftheircosts),fol-
lowedbyAmericancompanies(91%expecttoreduceonaver-
age13%oftheircosts)while97%oftheEuropeancompanies
onlyexpecttoreduceonaverage10%oftheirtotalassignment
costs.
The Americas
> 30 7 20 730 7 10 720 7 5 710 7 5 7

Responses in 7
29%
42%
16%
9%
9%
12%
48%
15% 15%
9%
Europe
> 30 7 20 730 7 10 720 7 5 710 7 5 7

Responses in 7
Asia-Pacific
> 30 7 20 730 7 10 720 7 5 710 7 5 7

Responses in 7
Themajority(57%)isstillnotforcedbycostpressuretoreduce
thetotalnumberofassignees,while43%saythattheyareplan-
ningtoreducethenumberoftheirassignees.
Are you forced by cost pressure to reduce the total number of
assignees?
57 7 No
^3 7 Yes
44%
32%
18%
3% 3%
38% 38%
13% 13%
0%
Itisstrikingthat53%ofcompaniesheadquarteredintheAmeri-
casareforcedbycostpressuretosendpresumablylessassign-
eeswhileonly39%ofEuropeanand27%ofAsian-Pacifccom-
panieshavetotakethismeasure.
The Americas
^8 7 No
537 Yes
Europe
61 7 No
39 7 Yes
Asia-Pacific
73 7 No
27 7 Yes
28%oftheparticipantsexpectthattheheadcountoftheirglobal
mobilityteamwillbereducedduetothecurrenteconomic
situation.Itisinterestingtoseethisresult,whenitisunder-
stoodthat35%believethattheirIHRisalreadyunderstaffed
and61%feelthatthenumberoftheirdedicatedstaffisjust
right.
Do you expect that the headcount of your global mobility team will be
reduced by the current economic situation?
72 7 No
28 7 Yes
EspeciallyAmericanheadquarteredcompaniesexpectthatthe
headcountoftheirglobalmobilityteamwillbereducedbythe
currenteconomicsituation(34%),whereasonly27%ofthe
Europeancompaniesand18%oftheAsian-Pacifccountries
presumeareductionoftheirdedicatedstaff.
The Americas
66 7 No
3^ 7 Yes
Europe
73 7 No
27 7 Yes
Asia-Pacific
82 7 No
18 7 Yes
Theanswerstothefollowingquestionshowthatcostpressureis
responsibleforhaltedinitiativesandprojectsinglobalmobility.
Mostprojectsandinitiativesinglobalmobilityaretraditionally
aimingtoincreasetheeffciencyandcomplianceofinternation-
alassignmentprogramsandthereforegeneratingcostsavings
inthemid-andlong-term.Thefactthatathirdoftherespond-
entswillstopprojectsandinitiativesissurprisingandmaylead
toareevaluationonhowprojectsarepositionedwithintheor-
ganization.
Did you have to stop any initiatives and projects due to the current
economic situation?
67 7 No
33 7 Yes
Inallthreegeographicareasthecurrenteconomicsituationis
responsibleforhaltedprojectsinglobalmobility.Slightlymore
companiesfromAsia-Pacifcreportedthattheyhadtostopinitia-
tives(36%)thanfromtheAmericas(33%)orEurope(33%).
The Americas
67 7 No
33 7 Yes
Europe
67 7 No
33 7 Yes
Asia-Pacific
6^ 7 No
36 7 Yes
Whilerecentsurveysshowedthattheawarenessforriskinglob-
almobilityisalreadyhigh,ourresultshowsthatwhile71%state
thattheirawarenesshasnotchanged,almost30%havenowan
evenbiggerfocusonrisks.
Has your awareness of risks in global mobility (compliance, financial,
reputation) changed in the current economic situation?
71 7 No, our awareness
has noL chanqed
28 7 Yes, Lhere is a biqqer
locus on risks
1 7 Yes, Lhere is less
locus on risks
EspeciallycompaniesfromtheAmericas(33%)andfromAsia-
Pacifc(36%)reportthattheirawarenessofrisksinglobalmo-
bilityhasincreasedduetothecurrenteconomicsituation.
The Americas
6^ 7 No, our awareness
has noL chanqed
locus on risks
3 7 Yes, Lhere is less
locus on risks
Europe
80 7 No, our awareness
has noL chanqed
locus on risks
Asia-Pacific
6^ 7 No, our awareness
has noL chanqed
locus on risks
Contacts
Global mobility effectiveness survey 2009
KevinCornelius
Partner,HumanCapital
kevin.cornelius@ch.ey.com
Phone+41582865678
Fax+41582865660
ChrisDebner
SeniorManager,HumanCapital
chris.debner@ch.ey.com
Phone+41582863228
Fax+41582863190
Ernst&Young
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ElectronicpublicationinEnglish
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> 30 7 20 730 7 10 720 7 5 710 7 5 7

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