International Relocation Company

Some companies have very sophisticated well-thought-through global mobility programs that have been tried and tested for many years. Others are stepping into the global arena for the first time. Either way it doesn’t hurt to check the health of your global mobility program and consider what I would believe to be the 10 best practices to ensure your global relocation program is a successful one.

10 Best Practices to Ensure a Successful Global Relocation

1. Policy
   1. Make sure you have a formal global policy in place that has been reviewed by your global relocation provider for competitiveness and efficiency and bench-marked against industry standards.Candidate Selection 
2. Candidate Selection
   1. Utilize pre-decision surveys or interviews to ensure that your candidate is flexible, adaptable and ready to take on the challenge of an international assignment.
3. Benchmark
   1. Keep up-to-date as situations change, trends develop, and new products come to market.
4. Cost Estimates
   1. In today’s economic environment it’s prudent to have a cost estimate completed before sending someone on an assignment so you have an idea how much it is going to cost.
5. Cost Analysis
   1. Know what you’re spending and what policy changes or exceptions are costing or saving money. There are many examples of companies focusing on elements that are inexpensive and denying them, while allowing exceptions for other elements that are very expensive.
6. Track Exceptions
   1. Be sure to always track any policy exception that was made or declined and the cost of that exception. This will help you be consistent in how you treat other exception requests in the future.
7. Use Proven Providers
   1. Proven providers can give you good advice on all elements of a global relocation and can make the process easier for you.
8. Don’t Cut Corners to Reduce Costs
   1. There is usually a good reason to do something well.
9. Create a Repatriation and Reintegration Plan Well Before the Assignment Ends!
   1. If you don’t, you may risk losing a valuable employee. Statistics show that up to 70 percent of repatriated assignees leave their employer within two years, usually to join a competitor.

For more information on the above global mobility program components and services, please contact SIRVA Relocation for a consultation.

 

While globalization has opened many opportunities for business, it has created some significant challenges. One leading challenge for global managers is learning to understand and appreciate cultural values, practices, and various nuances in different parts of the world. Experts in international business agree that to succeed in global business, managers should be open to others’ ideas and opinions and have the flexibility to respond positively and effectively to practices and values that are oftentimes drastically different from what they are accustomed to. Cultural training has been shown to improve an individual’s relationships with host nationals and allows expatriates to adjust more rapidly to a new culture and an international relocation.

There are a variety of training techniques that prepare people for foreign work assignments. They range from documentary programs that merely expose people to a new culture through materials about the country’s sociopolitical history, geography, economics, language and cultural institutions, to intense interpersonal-experience training, in which individuals participate in role-playing exercises, simulated social settings and similar experiences in order to “feel” the differences in new culture. Successful cross-cultural programs can include the following:

Local business etiquette. Even the most veteran and prolific employee can have difficulty without an understanding of business etiquette in other cultures. For example, the U.S. tendency to “get down to business” is regarded as rude in Japan, where business transactions often have a greater personal relationship component. An employee who appears impatient with Japanese traditions designed to establish friendship and trust will have little success in business negotiations.

Cultural biases. International relocation assignees should always examine the way their own culture affects their perceptions of right and wrong, good and bad manners, values, dress, and other customs. Cultural training can improve understanding of the cultural forces that affect their own behaviors and help assignees learn how to adapt to new cultural demands and the international relocation.

Customized training. Additional training can include special modules to help the employee and his or her family with their own individual concerns. For example, if the assignee’s children will be attending local schools, modules and resources on education etiquette would be appropriate.

To learn more, please visit our resource library

Before you announce that a corporate group move (or relocation) is taking place, it is important to be prepared. A part of that will be identifying the resources you will need. Consider all the internal departments that need to be involved or will be impacted by the move. Evaluate if you need to bring in outside resources to assist you in managing the move. It may not always be obvious who should be on the team.

It may be that there is a “working team” and a “guidance review team.” Having a “team within a team” is an efficient way of keeping people focused and available, rather than in meetings.

Once your team or teams are selected, it is time to build your plan. The following steps can help you get started.

Create a timeline.
If possible, have your Company’s leadership team provide you with a “hard date” as to when they want the move to be completed. Test the logic behind the date. Is it feasible? Will the building be ready to occupy? Will the timing of the move disrupt business during peak months? Can everyone be moved by that date? Remember, once you agree on a date (whether you had input or not) you will be measured according to whether or not you hit the date. If it is not possible to establish a specific date, you will need to recognize that you are working against a moving target that will add complexity to the timing of the move as well as stress and anxiety for the employees moving. In addition, a group move without a hard date complicates the entire process, as there is always an implication of having “more time.” Determine your schedule for accomplishing each element of the project. You will also want to establish a timetable for acceptance once employees are invited.

Gather data about the people who will be impacted by the move.
This will include both those who are moving as well as those who are not. For those who are moving, you need to gather a great deal of data, including:

• Current position
• Tenure with the Company
• New position
• Current salary
• New salary
• Current manager
• New manager
• Family information
• Homeowner or renter information
• Current address
• Expected move date

Review your current corporate relocation policy to evaluate whether it will support the objectives of the move. (Read more).

Here are a few things to remember when instituting a cross-cultural awareness program into your corporate relocation program. For a full account of information regarding this service visit our resource library.

Don't forget the family
Just as spouses should be involved in the assignment selection process, they should be involved in training for global assignments. Some experts estimate that nearly 80 percent of all failed global (international) assignments can be linked to the spouse's inability to adjust to the new environment. Each member of the family faces special issues in the expatriate environment that should be addressed.

Other cultural resources
Organizations should consider utilizing their returning expatriates for help with cultural awareness initiatives. Employees who have already completed similar assignments can act as subject matter experts (SMEs) to help new expatriates learn business customs and how to navigate foreign business circles. SMEs can also prove invaluable in helping new expatriates learn the hierarchy in companies with which they will be dealing. It's important to note, however, that companies should not rely solely on employees to provide guidance to new expatriates. Relying exclusively on veteran expatriates can be problematic if the guidance reinforces cultural stereotypes or results in the new expatriate adopting the predecessor's bad habits. While other international assignees have a role to play in helping newcomers adjust, they should not replace professional consultants/trainers.

Alternative views
Although cross-cultural awareness is important, some might argue that its importance is just a hyped up myth. In actuality, on average only 30 percent of American managers sent on international assignment lasting from one to five years receive any cross-cultural training. It can be argued that managing is simply "managing," so where it is done is irrelevant. Another point of view is that any type of short-term cultural training would be ineffective because people can't learn to work and live in a foreign culture after only a few days (or even a few weeks) of training. Others argue that an understanding of a country's culture is something people assimilate over many years based on personal experiences in that specific culture. Others will say that corporate culture takes precedence over country culture. For example, a local employee working for a "bullish" American firm in Thailand might show traits of aggressiveness and conflict, which are not traits normally associated with the Thai culture. These traits, however, may be common in the corporate company culture of the employee's organization, causing the Thai employee to act outside his or her normal cultural dimensions.

Nevertheless, in order to be successful, an expatriate must be comfortable with his or her staff, colleagues, clients and business atmosphere--regardless of location. Cultural specialists also agree that to be successful in dealing with people from other cultures, expatriates need knowledge about the cultural differences (and the similarities) among work locations. The global employee of today's business world can only benefit from gaining cultural awareness, either through direct training or personal experience, which would lead to greater professional effectiveness and company performance. Read more

If you would like more information about cross-cultural education and how it can be added to your international relocation package/program, please contact our corporate relocation consulting team.

What is a group move?
The definition of a group move is when 10 or more employees are being transferred from the same area and to the same area, at the same time, for the same business reason. Group moves are critical to the performance of the company and are of high strategic value in meeting the objectives of the business plan. If the group move is being driven by either a merger or an acquisition, the pressures only become greater as the already charged environment that a group move can create is compounded with the added factors of merging two different cultures. This reality, combined with the inherent risks that a merger or acquisition almost always adds, results in higher stakes and more pressure on corporate relocation program managers to make sure that the right group move process be in place.

Why do group moves fail?
In a series of internal reviews with subject matter experts who have had extensive experience in assisting our clients in planning and managing a wide range of corporate group moves, a number of reasons repeatedly rose to the top as to why a group move may fail:

• Announcing the move without adequate preparation or involvement
• Not having clearly defined objectives
• Lack of time and/or poor planning
• Losing control of the relocating transferees
• Not understanding the unique needs and dynamics of the group
• Not bringing outside resources in early enough
• Political pressure to use non-qualified suppliers
• Lack of senior management endorsement and involvement

How do you avoid the pitfalls? This topic will be covered in our next post. For more information about this subject or to view the complete white paper, visit our resource library.

Relocating is often a stressful and confusing event in anyone’s life and career, especially if the transferee is going through his/her first relocation. Lack of role clarity (who does what) and inadequate information throughout the process will not only amplify a transferee’s stress, but will also directly impact the outcome of the corporate relocation. There are a number of measures that can be taken to make the relocation process easier. One key action is to include a section in the relocation policy that defines specific roles and responsibilities of all transferee resources.

When defining roles and responsibilities during the relocation process, there are a number of key points to remember. We are going to outline a few of them here, but encourage you to view the complete article in our Resource Library.

Internal and external resources
Include internal and external resources when defining roles. In many cases, the transferee is starting a new position with the organization and may not immediately understand where to go for support. Identifying internal resources early in the relocation process will enable the transferee to assimilate into the new organization quicker, he/she will feel more comfortable, and will also feel more in control of the relocation.

Setting transferee expectations
Clearly lay out the company’s expectations for the transferee during the relocation. This will help prevent the employee from straying outside the policy and limit the need for exceptions. Decreasing exceptions goes a long way toward alleviating the dissatisfaction that can result if a transferee finds out they were treated differently than others at their same salary or grade level. More and more companies have placed wording in their policies that clearly outlines that exceptions are not expected, and if requested, will be escalated to a senior-level executive for approval. It should be noted in policy that the transferee is a visible representation of your company and needs to act and behave in accordance with your company’s code of conduct.

View more points to keep in mind when defining roles and responsibilities for corporate relocations.

When localizing an expatriate, there are several compensation items that need to be considered. Here is a checklist to use a guideline:

1. Base salary. Should the employee be "re-priced" to the local market pay structure? Should a premium be offered for international experience? Many organizations move the employee to local salary levels. If there is an extreme difference in salary levels (either lower or higher), however, a phased-in approach is often carried out. On the other hand, oftentimes organizations justify paying an expatriate on a higher pay structure because of his/her international experience and business relationships with the home office.

2. Retirement benefits. Because retirement plans, social security and pensions do not cross national boundaries, this is often the most difficult item to transition. Often employees have expectations to remain on their home country retirement program, but unfortunately there is no typical solution to bridge the gap between country plans. Some basic alternatives include retaining the employee in a tax-qualified home country plan, simply transferring to the local plan or using an umbrella-funded plan.

3. Income taxes. Normally, the expatriate will simply transfer to the local tax system. This is not a problem for most of the world. American workers, however, are put in a difficult situation because they are taxed on a worldwide basis. Many organizations will continue the "tax equalization" process on an as-needed basis to prevent double taxation on American expatriates. Employees of other nationalities do not require such assistance.

4. Housing. It is recommended that organizations remain flexible regarding host country housing because many factors come into play when deciding how to handle housing for the expatriate. In many locations throughout the world, expatriate housing is vastly different than local standards and expectations. In some cases, it may be unreasonable to expect an expatriate to move into a local neighborhood or local style housing, e.g. Mumbai, Beijing, Jakarta, etc. Therefore, if the expatriate is moved to the local salary structure, a housing allowance may be needed to subsidize continued living in expatriate style housing. Other issues that arise with housing tax issues, family matters, property ownership laws, home search assistance and moving costs.

5. G&S differential/assignment incentives. In locations where assignees receive a G&S differential, the common practice is to immediately stop the allowance. Other options include a phase-out or lump-sum buyout, although it is rare for companies to continue to pay a G&S allowance beyond the effective localization date. Other assignment incentives such as mobility premiums, hardship allowances, etc. are also normally stopped upon conversion to local status.

6. Education for dependent children. After housing, this item is the most commonly subsidized cost after an expatriate is localized, especially if the local schools are inadequate based on international standards or if the host country language is an issue. To alleviate the problem, organizations should consider continuing education coverage, or pay a percentage of the education costs for one to two years.

7. Health care. Health care standards and costs vary greatly in different parts of the world and is a priority issue for most employees and their families. Normally, localizing employees will simply transfer into the local health care system, but concerns will arise if the health coverage in the new location is of a lower standard than in the home location. This will be a costly change for an employee coming into the United States, where typically the health care is more expensive. Because of their time spent in the host country, a localized employee will most likely be aware of the issues, and therefore be in a position to make appropriate decisions.

Finally, localization may subject the employee and the company to various employment laws and regulations that apply to employees hired by local companies. It is important to speak with a local employment counsel to understand the legal effects and ramifications of localization, including subjecting the company to stringent employment laws in some European countries.
Localizing expatriates can be a complicated process and is not as simple as transferring expatriates to a local compensation package. By having a strategic plan in place, companies can anticipate potential localization issues and make the process as efficient as possible.

There is no such thing as a small relocation, but some companies don't require the large-scale support needed by those relocating hundreds or even thousands of employees annually. For these companies, SIRVA Advantage might be the answer. SIRVA Advantage is a program developed specifically for companies that relocate fewer than 30 employees per year. Currently, 120 companies participate in the program.

Through the program, companies have access to a dedicated service delivery team with specialized experience in small-volume relocations. Users don't have to be experts in relocation because all the details are handled for them. SIRVA can get a relocation program up and running quickly, and because they manage every aspect of the program, companies don't have to worry about the details. Transferees receive the full benefits of having a corporate relocation provider manage their transfer without the large corporate relocation budget.

"Companies that relocate a small number of employees have different needs than those of their large-volume counterparts," said Tim Callahan, senior vice president of sales and marketing SIRVA, Inc. "These companies may not be as familiar with the process or the complexities involved in different domestic or international relocation scenarios because they simply don't relocate employees as often."

Using SIRVA Advantage, companies can choose their services á la carte, which offers them the flexibility to develop a cost-effective custom program to fit their needs. SIRVA Advantage provides companies with guidance and assistance on a range of relocation issues, including:

• Domestic and international support
• Fixed-fee or traditional home sale programs
• Home marketing services
• Home finding and new home purchase services
• Home rental and temporary housing services
• Mortgage services
• Move management
• Tax and legal services
• Vendor contracts
• Online relocation tracking and reporting

One-on-one attention and interactive tools
The Advantage process starts with a consultation between our client and SIRVA Advantage's Business Development Manager, Jane Yanosko, to coordinate services tailored for each transferee - with this program a corporate relocation policy is not needed, SIRVA's abbreviated contract serves as the purchase order for all services authorized by the client. Once services are determined and the transfer process is initiated, the client and the transferee receive dedicated support from relocation counselors and associates focused on serving clients with fewer than 30 relocations annually.

In addition, transferees have access to MoveOurHome.com, a Web portal designed to help them take an active part in their move. MoveOurHome.com has up-to-the-minute relocation information configured on a per-client basis. On the site, transferees can view company-specific policy information and transferee-specific relocation program information.

"Transferees can submit, view and check the status of expense reports, communicate with their relocation counselor, and specify home and area preferences," continues Callahan. "They also have access to an online move organizer and essential destination information such as weather, crime statistics, school reports, population figures and other community information."* SIRVA Advantage was developed based on input from current customers and internal service teams, and is designed to provide a company will a small or no relocation program a high level of service on a more flexible, on-demand basis.

To learn more about SIRVA Advantage, contact Jane Yanosko, SIRVA Advantage business development manager, at 800.531.3840 or jane.yanosko@sirva.com.

Improving Accent Through Training
A foreign national’s accent may impede their communication ability, even though they are fluent in English. Research indicates accents are caused mostly through differences in rhythm and stress, as well as difficulty in making certain sounds linguistically. A common example is putting an emphasis on the wrong syllable.

Accent is almost impossible to improve without training. Speakers seldom can hear what they are mispronouncing and even if a listener points it out to them, they are unlikely to know how to correct it.

For example, certain regions mix up L and R sounds because they cannot hear the difference, they may not notice a mispronunciation, but others may not be able to understand what they trying to communicate.

Accent reduction training is provided by universities and private training companies where individuals are trained how to identify incorrect pronunciations and how to exercise their mouth and tongue to correct the problem. Other teaching methods include mimicry, which helps students correct pronunciation, rhythm and stress by watching videos of native language speakers, then mimicking what they hear and see, including body language. 

Typically, most training programs incorporate individualized programs developed as a result of a comprehensive speech analysis. These programs mostly last between ten and 20 sessions. For some, improvement can be seen immediately, but it can also take between three and six months for others.

Most programs can be provided one-on-one or in a classroom setting. Classroom programs generally take longer and are less expensive than one-on-one tutoring but one-on-one tutoring is more effective and quicker.

Linguistics Plays a Part
Accent and grammar are usually established by ages six and twelve respectively. In order to help someone change their accent, an instructor needs to be a linguistics specialist and have the knowledge of a speech therapist.

A language school may claim to provide this training, but beware, a language instructor will not have the skills and training of a linguistics professional.

Accents are influenced by the tongue, lip position, vocal cords and air movement through the mouth or nose; instructors must be able to show students how to manipulate these in order to limit mispronunciations as a result of their accent.

Many companies offer language training to international corporate relocation transferees, though few offer accent modification training which is often required more than traditional language training.

Companies often dismiss accent modification as being too expensive, or because they feel there is little that can be done to correct the problems caused by accents. In fact, there is much that can be done to correct accent-related problems, and as companies research the various options available they will find that it is surprisingly cost effective and beneficial.

Let me know if you require a referral to an accent modification specialist.

The Panel:

Paul Klemme
President
SIRVA Mortgage

Peggy Love
President & CEO
Full Circle International Relocations, Inc.

Kelly Reiss, CRP
Senior Vice President / General Manager,
Eastern Region / Global Supply Chain
SIRVA Relocation

Connie Swenson
Senior Vice President, Relocation and Referral Services
Coldwell Banker Residential Brokerage / Arizona

Joseph K. Taylor, SCRP
Executive Vice President
Valuation Services, LLC

Kelly Reiss moderated today’s panel of mortgage, destination services, household goods shipment, and real estate supplier representatives.  The session gave clients the opportunity to speak directly with SIRVA’s suppliers, gain a better understanding of how the relocation supply chain operates, and hear a discussion of today’s real estate market from the supplier perspective.

The discussion began with new trends in the relocation industry.  Multiple suppliers cited declining markets as a significant trend emerging this year.  As Paul Klemme noted, the fourth quarter of 2007 ended with 108 U.S. markets identified as declining markets by Freddie Mac.  During the first quarter of 2008, this number has already risen to 205, and experts predict at least 100 more declining markets in the second quarter.  Additionally, the number of foreclosures on U.S. homes has risen dramatically in recent months.  The panel explained how lenders have reacted to the poor markets by decreasing the amount of overall lending and requiring higher down payments from home buyers.  As a result, the number of potential homebuyers has decreased, and relocating employees are having difficulty selling their homes.

While the real estate market lies outside of the suppliers’ control, the panel also discussed issues directly affected by suppliers, such as how they manage the quality of their services.  Several panel members emphasized the important role that employees play in ensuring consistently high quality.  For example, Connie Swenson explained that real estate agents use tactics such as designating certain specialists for SIRVA transferees.  If at any point the specialists lack the appropriate time to dedicate to SIRVA’s clients and transferees, realtors realize the importance of quickly hiring additional employees so quality does not suffer.  Adding to the idea that the quality of a supplier comes from its employees, Paul suggested that a company’s commitment to on-going training and pushing to make people better at what they do forms an essential element of a successful supplier.

Further discussions touched on other interesting topics such as overcoming a seller’s denial that they live in a declining market and the importance of securing a loan quickly in today’s economy.  In conclusion, Kelly requested that each supplier share one last piece of information with attendees; panelists final comments centered on the idea that clients, transferees, SIRVA, and every member of the supply chain must work together for a successful relocation.

Avrom Goldberg
Managing Director, Asia-Pacific and the Middle East
SIRVA Relocation

Lorraine Jennings
Manager, Consulting Services, Asia-Pacific and the Middle East
SIRVA Relocation

As Avrom Goldberg and Lorraine Jennings explained, it is important for relocation professionals to stay up-to-date on relocation trends in China because of the country’s power as regional and global economic engine.  For each of the past 30 years, China has demonstrated eight to 12 percent economic growth, and it is showing no signs of slowing down.  In order to provide attendees with valuable insights and analysis of the current relocation trends in this rising economic power, Avrom and Lorraine described the findings of the SIRVA’s China Mobility Report.  While Avrom and Lorraine could not summarize the entire 95-page report during the presentation, they shared highlights of their findings.

Increased demand for deployment to China, one trend discussed during the presentation, is expected to continue.  However, the sources of assignees selected for deployment are changing.  Traditionally, assignees to China came from Australia, Europe, the United Kingdom and the United States.  Recently, hiring has been more concentrated in Asia, with most assignees coming in the form of returning Chinese workers or locally hired foreigners.

Companies who continue to send assignees to China are using a variety of selection and planning processes that do not follow a pattern.  For example, pre-assignment visits ranged from a brief three days to a full week; some companies offer extensive cross-cultural training for assignees while others do not; certain companies assign mentors, some extend mentoring programs to leadership programs, and others offer no structured mentoring to assignees in China.  In these areas of their relocation programs, companies are not following a uniform trend, but rather they are doing what is in the best interest of their individual organizations.

On the other hand, companies are moving in the same direction in other areas of their programs.  For example, many companies are changing their philosophies of hardship allowances.  While 51% of companies offer hardship allowances across all assignments, many are developing new ideas of what places they consider “difficult.”  Avrom and Lorraine mentioned Shanghai and Beijing as places that recently necessitated hardship allowances, but may no longer justify as high of a level of compensation.  Furthermore, many companies are shifting from a host-based to a home-based approach for hardship allowance policies, which illustrates that companies are finding a home-based method more effective in China’s current economic framework.  

Regardless of which specific policies and programs companies decide are most useful when sending their employees on assignments to China, the companies within SIRVA’s study agreed on the obstacles that they must overcome.  They identified the following as the top-five human resources and mobility challenges they face when filling assignments in China:

• Creating effective policy frameworks for separate groups, such as locally hired foreigners or international new hires who are not full assignee
• Understanding, capturing and reporting the total cost of assignments to the company, including measuring the return on investment of the assignments
• Locating quality service providers in China with a strategic vision
• Developing a young workforce with global cultural competency
• Finding credible benchmarks for hardship allowances and housing data for assignments in China

The Panel:

Maura Carey, CRP

Vice President,

Strategic Accounts

SIRVA Relocation

Amy Carter

Global Supply Chain Manager

Intel Corp.

Peggy Love

President & CEO

Full Circle International

Relocations, Inc.

Sandy Palmer, SCRP

Manager, Corporate Relocation

Cargill, Inc.

While concrete, logistical items such as household goods shipments or home marketing assistance receive priority treatment in corporate relocation programs, for employees and their families, the “soft” transitional and settling-in services can make the difference between a successful and a failed relocation. As Maura Carey and her panel discussed, the complex process of relocation is hard on the entire family, not just the employee.

Relocating employees and their spouses want and arguably need several “touch points” during the relocation process, where they can receive assistance ranging from the concrete (locating daycare for small children) to the less tangible (ideas for helping teenagers adjust to their new surroundings). Companies can incorporate introductions to social and job networks, school assessments and recommendations, and specialty tours of shopping and cultural areas into their relocation programs in order to ease the family’s transition. Not only are such services relevant from a comfort standpoint, but they are also important from a business perspective. Effective destination services should increase transferee acceptance rates as well as provide a tangible, differentiated benefit for recruitment and employee development.

In order to illustrate some of the points made during the discussion, Sandy Palmer, manager of corporate relocation for Cargill Inc., reviewed a case study. During the last four months of 2007, Cargill conducted a Transition Support Services pilot program. One key finding was that transferees and their families unequivocally enjoyed and appreciated having someone to walk them through the settling-in process, check-in frequently and assist with the “soft” transition issues early in the assignment. Amy Carter, global supply chain manager for Intel, referred to the family’s first two weeks in the new location as the “Golden Window” of opportunity to make sure that they feel comfortable in the new surroundings. Failure to achieve this comfort can sour the entire assignment or even prevent the employee from accepting a future relocation assignment. Basic “niche” services such as stocking the refrigerator prior to the family’s arrival in the new home or getting the children involved in activities immediately can help the transition, Amy explained.

Building on the comments of the other panel members, Peggy Love, president and CEO of Full Circle International Relocation, Inc. asserted that destination services must involve two elements, local knowledge and a focus on the adjustment process for the family. Also, she emphasized the importance of customizing the transition program for each family because the success factors vary for each family’s situation.

Keeping in mind that Peggy cited family concerns as the biggest reason for an employee turning down an assignment, companies cannot overlook transition services when designing their corporate relocation programs. Even domestic transferees can receive tremendous help from a one to two day orientation in their new area.  When the employee and the family experience a smooth relocation transition, it not only mitigates stress and inconvenience, but it also allows the employee to focus more quickly on the reason for the relocation in the first place: the job.

What transition services are your transferees and assignees asking for to support their success in the new location?

Kathryn Cassidy

Vice President/General Manager, Global Assignment Services

SIRVA Relocation

Julian Yates

Vice President, Global Client Services

SIRVA Relocation

As its title illustrates, Julian and Kathryn’s presentation this morning explored the fundamentals of global relocation and the essential elements of a successful relocation.  After discussing the wide-ranging reasons for globalization itself—which range from a push for technology improvements to a desire to add diversity—Julian and Kathryn discussed why companies’ have the need to relocate employees internationally in the first place.  Many drivers of global relocation are similar to those for domestic relocation, such as relocating an employee to mange a special project.  As attendees learned, however, global relocations present new challenges not present in domestic relocations.

Relocating an employee and his or her family internationally simply creates more room for problems to arise.  As Julian and Kathryn explained, issues can stem from administrative tasks, such as obtaining visas and work permits, or from the many aspects of situating the transferee’s family in the new location, such as finding schools for the children or employment for the spouse.  Furthermore, relocating an employee globally versus domestically presents more cultural, financial and logistical concerns that the company must consider.  Despite the challenges of relocating employees internationally, Julian and Kathryn provided attendees with best practices that companies can use to ensure successful global relocations for their employees. 

Developing and maintaining a strong global relocation policy topped their list as the most important factor for successful global relocations.  In addition to employing a good policy as the foundation for an effective global relocation, Julian and Kathryn explained that careful candidate selection can improve the success of global relocations.  By screening possible candidates and selecting only adaptable, flexible people for global assignments, companies can avoid potential problems from the start.  Using benchmarks, performing cost estimates and analyses, using proven providers, and having a repatriation and reintegration plan were just a few of the additional best practices Julian and Kathryn gave attendees to keep in mind as they explore global relocation within their own companies.

What challenges has your company overcome in dealing with global relocations?

The Panel:

Tim Callahan

Senior Vice President,

Global Sales

SIRVA, Inc.

Cris Collie, CAE

Executive Vice President

Worldwide ERC

Paul Kinsinger

Clinical Professor of Business Intelligence

Thunderbird School of Global Management

Kathryn Cassidy

Vice President/General Manager,

Global Assignment Services

SIRVA Relocation

Andy Ironside

Global Head,

HR International Services

Deutsche Bank

Marita Stricklin

Director,

Relocation

Abbott

Before leading a panel discussion on the 2008 relocation industry outlook, Cris Collie introduced his own ideas on the topic.  Focusing on “what’s great and what’s not so great in ’08”, Cris discussed a number of factors affecting the relocation industry. He began with the housing market; Cris explained that although the media has dwelled on the poor state of the real estate market, not all markets have crashed. Furthermore, the relocation industry has the talent and skills to handle this market and must remain confident moving forward.

Cris also discussed today’s workforce, including the battle for acquiring workforce talent as well as the diversity of today’s four-generation workforce. While it can be difficult for companies to attract and retain talent, a lucrative relocation policy, such as one with home sale assistance, can play an important role in attracting new hires. Additionally, companies must consider the diversity within today’s workforce, which is comprised of traditionalists, baby boomers, Xs and Ys generations. Aspirations, sources of motivation, and personal characteristics vary dramatically among these generations. Companies must consider these differences when creating relocation policies in order to develop programs that will appeal to as well as be effective for their entire workforce. 

Additionally, Cris was adamant that we use our workforce to bring innovation into the industry and discover “what’s next?” for corporate relocation.  To illustrate his point, he cited a number of examples of missed opportunities that should have been logical next steps for companies.  For instance, why did IBM miss the chance to become Microsoft?  Why didn’t VISA or MasterCard invent PayPal?  How did NBC, CBS and ABC all fail to develop CNN?  The relocation industry must strive for innovation in order to avoid such mistakes and to grow.

Following further predictions and analysis of the factors affecting this year’s industry outlook, Cris opened up his discussion to an expert panel that was able to offer several valuable insights into the industry, especially from a global perspective. Of the challenges facing the relocation industry in the coming years, many stem from global events and trends. 

In countries with strong populations and with a seemingly endless potential workforce, such as India and China, growing pains continue. For example, as Andy noted, Deutsche Bank has experienced that 64% of new hires do not initially show up for work in India, creating a logistical nightmare. In China, where families are limited to one child by law, most children grow up without the experience of siblings or teamwork within a family. Paul pointed out that this leaves those workers less inclined towards collaboration, creating difficulties for companies who want to incorporate the Chinese into their team-oriented workforces. The panel also discussed how the supply of both low-cost manufacturing and service workers are running out in India and China, which Paul predicted will force Africa and the Middle East to join the global economy as resources for inexpensive labor. Also in relation to global mobility and the relocation industry, the panel touched upon such topics as using global relocation policy in a strategic role for business development, the effect of a possible U.S. recession on global mobility, and using more diligence in selecting global relocation suppliers.

In addition, the panel also provided attendees with insights into the relocation industry from a domestic standpoint, such as the high occurrence of loss-on-sale in today’s market.  As Tim noted, developing strict programs, such as those that require employees to use preferred brokers, can decrease the potential for loss-on-sale. 

What is your own projection for the 2008 relocation industry?