Posted Thursday, March 27, 2008 by
Julian Yates


In recent years there has been a significant shift from companies sending their employees on long-term assignments to short-term assignments. A long-term assignment is typically a one to three year assignment, although some may last five years or longer. Short-term assignments are typically 3 to 12 months.
So why the shift?
The most obvious reason is an attempt to control cost. Most short-term assignment policies have less generous benefits attached to them and they are often single status, so the view is that the cost is less. This is not always the case though, as the cost is highly dependent on tax complexities caused by the home and host country tax rules, and the individual’s income and personal situations.
Other less obvious reasons are that employees are turning down the opportunity to take a long-term assignment. They are turning them down because of the following reasons:
- Concerns about security and terrorism
- Dual career family issues
- Career re-entry issues on completion of an assignment
Security and terrorism concerns are higher on individual’s agendas than they used to be. Employees do not want to expose their families to such risks, real or perceived.
A much larger percentage of families now have dual careers, so when one member is offered a career development opportunity overseas, it means the other member has to give up their own promising career. For both personal and financial reasons the option to take the assignment is less attractive.
The age old problem of re-entry to the home office after a lengthy assignment is still alive and well. An assignee comes back after three years and is faced with unfamiliar faces, values and yes, politics from when he left. Unless there has been some very good career planning the assignee will often be slotted into a position that lacks challenge compared to his overseas role.
Short-term assignments can be a good alternative solution to long-term assignments to avoid some of these issues. A short-term assignment means the employee can either go on single status or the spouse can take a sabbatical without damaging their own career. A shorter time out of the home office is less likely to impact the employee’s career opportunities.
Many companies have realized this and have come to terms with the concept of shorter assignments. Deciding if they are indeed less expensive is a future topic for discussion.