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Global Markets, Record Earnings, Driving Unprecedented Demand for International Job Assignments, Reveals Annual Global Relocation Trends Survey

2007-06-11 09:57 755

Financial and Cultural Strains of an International Assignment Take Their Toll on Spouse, Children and Families, According to GMAC Global Relocation Services

OAK BROOK, Ill., June 11 /Xinhua-PRNewswire/ -- Driven by a booming global economy, more than two-thirds (69%) of multinational corporations reported an increase in the number of international assignments in 2006, the highest percentage in the history of the Global Relocation Trends Survey, published annually by GMAC Global Relocation Services. Continuing the optimistic tone, 65% of companies intend to send even more employees on assignment in 2007 as compared to 2006.

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With the share of total revenue generated from outside of a company's headquartered country rising (according to 41% of companies responding to this survey), the demand for experienced international management talent has never been greater. However, the worldwide survey of 180 companies points out that employees are increasingly turning down international assignments, making the job of finding suitable candidates one of most critical business challenges for companies today.

Companies rely heavily on expatriates to achieve a number of business objectives, such as filling critical skills gaps, transferring technology and corporate culture, launching new endeavors, and developing business relationships. In addition, nearly a quarter (23%) of the survey respondents reported that the primary purpose of their international assignments is to build management expertise.

"Every year, the Global Relocation Trends survey uncovers new and interesting data and information about important global mobility issues, and provides companies throughout the world with invaluable insights into current and emerging trends," said Rick Schwartz, president and CEO of GMAC Global Relocation Services.

Since it began in 1993, the annual Global Relocation Trends Survey has been the definitive study of companies' global employee-relocation practices, policies and projections. And as it does each year, the survey paints a comprehensive picture of evolving trends and emerging issues facing companies of all sizes that rely on an international workforce. For information on how to receive the survey, go to http://www.gmacglobalrelocation.com/grts06.html

"The survey provides useful information for companies that operate in the global marketplace," Schwartz added. "On one hand, companies that conduct business internationally are confident as a growing number are expecting to increase their global workforces this year. On the other hand, there are warning signs about the potential impact international assignments have on couples and their families. Our hope is that companies review these findings as a whole, and then use them to re-examine and, if necessary, refine their relocation programs and policies to ensure they are putting their programs and their employees' best interests first and foremost."

This year's survey findings identify three major issues responsible for much of the resistance to accepting an overseas assignment

Family concerns:

(including children's education, family adjustment, partner resistance, difficult location, cultural adjustment, assignment length and language): These challenges can be overcome by cross-cultural training and a successful transition to the new culture. Unfortunately, only 21% of the companies surveyed require cross-cultural training for their assignees. Even more ironic is the fact that 77% of companies surveyed said cross-cultural training has great or high value. Year after year and survey after survey, cross-cultural training is perceived as critical to the success of international assignments and yet many companies do not insist on higher levels of participation in such programs.

Spouse's or partner's career:

When asked to identify the chief reasons for refusing an assignment, concerns about a spouse's or partner's career was cited as the second-highest reason for assignment refusal, behind family concerns. While 82% of employees were accompanied by their spouse or partner on international assignments, an overwhelming majority of these spouses or partners put their own careers and aspirations on hold during their time overseas. Fifty-nine percent of spouses or partners were employed before their significant other accepted an international assignment, a mere 8% were employed during the assignment, the lowest percentage since 2000. This trend may be increasing financial pressures and straining relationships before, during and after the assignment.

Career Aspirations:

International assignments can have wide-ranging effects on a career. However, what those effects are seem to be one of the least understood phenomena of international mobility. Career aspirations were cited third by respondents as a reason for refusing to accept an assignment. This would seem to indicate a negative perception of international assignments on the part of employees.

However, human resources professionals tend to believe international assignments actually have a positive effect on employees' careers. For example, 31% of human resources professionals surveyed reported that an international assignment leads to faster promotion; 27% reported that it makes it easier to obtain a new position in the company; and 26% reported that expatriates change employers more often - commenting that expatriates are attractive recruitment targets because of their international experience.

"The truth probably lies somewhere in the proverbial 'gray area,'" said Schwartz. "That's what's so intriguing. The survey raises several new questions as we continue to explore the myriad opportunities and challenges involved with international assignments."

The survey also found that:

-- More women are accepting assignments overseas. Twenty percent of

expatriates were female; the historical average is 15%.

-- Ten percent of assignments were not completed due to expatriates

returning from their assignments prematurely. Asked to name the

principal reasons for early returns from assignments, family concerns

(32%) topped the list, followed by accepting a new position within the

company (23%), early completion of the assignment (14%), career

concerns (6%), and cultural adjustment challenges (4%).

-- Twenty-four percent of expatriates left their company during an

assignment; 28% left within a year of returning.

-- Sixty-nine percent of companies said they supported spouses with

language training, 36% sponsored work permits and 30% provided

education/training assistance.

-- Forty-three percent of companies required a cost-benefit analysis to

justify the international assignment.

-- Twenty-eight percent of respondents were considering outsourcing

international assignment management within two years.

-- China, India and Russia were the primary emerging destinations-and also

were cited as the most challenging locations for expatriates. The

following issues were mentioned frequently: housing and living costs;

immigration challenges; payroll and employment.

About the Survey

The 2006 Global Relocation Trends Survey Report is the 12th report issued by GMAC Global Relocation Services (GMAC GRS). Issued since 1993, these reports have come to be regarded as one of the most reliable and respected sources of global mobility data and trends. The longevity of this survey enables the company to compare each year's results with "historical averages," which help gauge the relative importance of annual variations. This year's survey contained 107 questions answered by 180 respondents representing small, medium, and large organizations with offices located throughout the world. Together, these companies managed a worldwide employee population of more than 8.4 million. For 48 percent of the respondents, the company headquarters were located in the Americas while 49 percent of respondents worked for companies with headquarters located within EMEA. Three percent were from Asia Pacific nations. For additional information on how to receive the 2006 Global Relocation Trends Survey, go to http://www.gmacglobalrelocation.com/grts06.html .

About GMAC Global Relocation Services

GMAC Global Relocation Services, LLC (GMAC GRS) ( http://www.gmacglobalrelocation.com ) is a leading, full-service outsourcing partner of end-to-end employee relocation, assignment management and mobility consulting services for multinational organizations worldwide. The company serves corporations in 110 countries and manages more than $1 billion in relocation-related transactions. GMAC GRS is a business unit of GMAC ResCap (Residential Capital, LLC), a leading real estate finance company, focused primarily on the residential real estate market in the United States, Canada, Europe, Australia and Latin America.

GMAC ResCap ( http://www.gmacrescap.com ) is an indirect wholly owned subsidiary of GMAC Financial Services. GMAC Financial Services is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and commercial finance businesses. GMAC was established in 1919 and currently employs about 31,000 people worldwide. At Dec. 31, 2006, GMAC held more than $287 billion in assets and earned net income for 2006 of $2.1 billion on net revenue of $18.2 billion. For more information, please go to http://www.gmacfs.com .

Source: GMAC ResCap
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