Should You Diversify Your Global Mobility Assignments?

In recent years, many companies have assigned their employees to long-term global transfers, usually lasting for three to five years. These positions provided career development to expatriates. Now, there has been a shift in global mobility assignments, making short-term positions the norm. Lasting one to two years, these projects ensure the job will get done and the cost will be minimal.

According to Vandover Transition Coach Phil Wright, many of his clients accept short-term transfers without moving their families. They then train local replacements in the interim in order to return home. More often than not, these jobs are located outside the United States.

The Brookfield Global Relocation Trends Survey found that 58% of companies’ revenues were generated outside of their headquarter countries for the second straight year, the highest-ever figure recorded by the survey.

In response to economic conditions, 75% of companies reduced assignment expenses, with the cost of a relocation serving as the most common assignment management challenge. 86% of companies prepared cost estimates before initiating international assignments. Only 25% compared estimates with actual costs – the lowest percentage in the history of this report.

For more information on the 2011 survey’s findings, click here. This recent Cartus blog post also explores the notion of diversifying global mobility packages.

Additionally, these project-based assignments have become a trend among Generation Y employees. Millennials may not need all of the traditional expatriate package benefits because they often prefer to receive financial assistance instead. This provides them with more flexibility to use the money as they see fit and do what works best for their lifestyle. This may also be due to their marital status, or because they believe that obtaining more global experience will advance their careers at a faster pace.

Short-term global projects are becoming more prominent among large international corporations. If one of your company’s initiatives for 2012 happens to be cost containment, it may just be the reason to give project-based assignments a closer look.