Expat Evolution

By ORC Worldwide

ORC Survey Finds Companies are Leveraging International Assignments to Better Compete Globally.

The use of international assignments is not only growing, but its role is changing, according to ORC Worldwide’s 2006 Worldwide Survey of International Assignment Policies and Practices. The survey shows 56 percent of companies have increased expatriate usage, and the types of assignments are changing to reflect the growing needs and challenges of today’s global economy.

In fact, companies with a larger expatriate population most often use international assignments for early career development or training, whereas among companies with fewer than 250 expatriates, the most common purpose for an overseas assignment is to fill a senior management role.

“The most sophisticated companies are trying to integrate international programs with talent management programs,” said ORC Worldwide Executive Vice President Geoffrey W. Latta. “These companies understand the importance of integrating international experience with local talent, particularly if the company wants to become a true leader among global organizations.”

The survey biennially polls over 800 multinational organizations representing a wide range of industries and companies, from Fortune 500 corporations to small businesses with growing overseas operations.



Short-term Assignments Help Address “The Dual-Career Issue”

Dual-career issues, caused when both spouses or partners have a career, are among the most common reason for assignment rejection, according to the survey. While numerous types of assistance programs are offered to spouses, including language training, cultural orientation, job-search assistance and work-permit assistance, companies are increasingly offering employees short-term assignments as an alternative to the typical three to five year expatriate assignment.

“In recent years we’ve had a growing number of clients ask ORC Worldwide to advise them on how to increase the diversity of their companies’ assignment types,” continued Latta. “Having the options of short-term and commuter assignments can help these companies meet the challenges caused by the combined pressures to cut costs, meet corporate goals and, equally important, to address employee needs.”

In fact, among worldwide survey participants, the percentage of companies indicating they have expatriates on short-term assignments, with lengths defined by the majority as up to 12 months, has increased over the last six years. In 2006, 78 percent of the companies surveyed acknowledge use of short-term assignments, compared to 75 percent in 2004, and 66 and 59 percent in 2002 and 2000, respectively.

Separate policies for commuters, or employees who generally live in one country, work in another, and make frequent trips to the same work location, are also becoming a more common phenomenon, as indicated by 26 percent of companies worldwide.



International Assignments Reveal Location Trends

According to ORC Worldwide’s 2006 Worldwide Survey of International Assignment Policies and Practices, the Middle East is increasingly becoming a “hot spot” for expatriates as more and more companies send their employees abroad to work. Despite escalating political and security challenges in the region, findings reveal a shift toward assignments to the Middle East in the last six years, especially among the mining and oil industry, which accounts for 60 percent of the expatriates assigned to the region.

Interestingly, although Western Europe had the highest number of expatriates in 2006 – both as a home location and an assignment location – the most prevalent home location of Middle Eastern assignees is the United States, followed by Western Europe. In addition, many international banks and other providers of financial services have established regional headquarters in the Middle East, such as Dubai, thus bolstering the expatriate population in the area.

ORC Worldwide provides human resource management consulting and data services to large and mid-sized organizations around the globe. For more than 40 years, ORC has been conducting expatriate policy surveys of multinational organizations representing a wide range of industries and companies, from Fortune 500 corporations to small businesses with growing overseas operations. Headquartered in New York City, ORC Worldwide has offices in Chicago, Dallas, London, Los Angeles, Melbourne, Munich, Paris, Sacramento, San Francisco, Singapore, Tokyo, Toronto, Washington, D.C. and Wellington. For more information on ORC Worldwide’s 2006 Worldwide Survey of International Assignment Policies and Practices, visit http://www.orcworldwide.com/.
Reprinted with Permission.