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“Most Significant Development” in
Managing Expatriates
in the Last 20 Years

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In the January 2000 issue we asked readers what they see as the most significant development in the last 20 years in the management of expatriates. Below, while necessarily selective, a range of responses.

“The most significant trend is the re-focus of the IHR function from a compensation-driven activity to a much more general view of expatriate assignments and most dramatically the impact of the family on them. IHR has been required to develop not only remuneration packages, but also assignment and family support programs that address the needs of family members, especially the spouse, during the assignment.”
    G. Michael Loewe, Lion Mobility Consulting
“Technology has significantly cut down on the time that it takes to complete tasks in all areas of expatriate management, and it has also increased what we are able to accomplish. Bottom line, technology has increased efficiencies with respect to expat admin significantly.”
    Trevor Dagg, Viacom
Outsourcing the management of expatriate administra-tion to outside service providers is, I think, the most significant development. Corresponding with this is the obvious growth of such service providers, with the major ones expanding and acquiring others so they can provide a comprehensive service as sort of a ‘one stop shop’ (compensation, taxes, cross-cultural training, immigration, relocation, etc.).”
    Ron Pozzi, Bayer
“The most significant development is the vast increase in the diversity of the expatriate population itself. 20 years ago the majority of employees on expatriate packages were American or British, most were married, and they were often in the middle of their careers. Now expatriates may be from Switzerland, Sri Lanka, Belgium or Botswana; they may be in their 20s and single or 60s with grown children .”
    Mary Ellen Myhr, AIRINC
“One other broad global development ... has changed the entire world, not just the world of expatriate management. That is the impact of the speed and variety of communications. 20 years ago, an assignee’s contact with the home country was often limited to a 2-day-old International Herald Tribune. Today, with e-mail, CNN, the Internet, cellphones, etc, there is less chance of an expatriate suffering from ‘out of sight, out of mind syndrome.’”
    Heidi O’Gorman, Arthur Andersen (Chicago)
“The administrative challenge of managing expatriate compensation and assignment information has been impacted significantly by technology and other information tools and resources. Nowadays, a global information and compensation administration system is a must in order to ensure the successful management of an expat program.”
    Tim L. Braswell, Arthur Andersen (Chicago)
“‘The proliferation of packaged programs,’ I believe, sums it up. Packaged programs of all sorts abound. Outsourcing suppliers standardize and package everything from tax equalization to recommendations for elementary schools. The problem is not shortage of information or lack of programs; it is the challenge of identifying and selecting the one or combination that most effectively meets one’s own specific needs.”
    Cal Reynolds, Consultant
“Corporate restructurings have caused HR to come to grips with antiquated policies, which were focused on hand-holding, and evolve a more value-driven proposition that balances employee needs with corporate objectives. As a result, compensation programs are better rationalized, administrative processes are benchmarked to obtain better cost effectiveness, and tax service fees are significantly reduced. HR has also been forced to think globally.”
    Alan Moidel and Carol Jones, Deloitte &
    Touche, Dallas and St. Louis
“Increasingly, organizations are realizing that home-based policies are expensive to provide and difficult to manage. The concept that an individual is ... no better or worse off on a foreign assignment is not deliverable, either culturally aor economically. We must, therefore, look to reward based upon international service rather than home country dynamics.”
    David G. Green, Arthur Andersen (London)
“20 years ago, only the largest companies had international assignees. Now, even the smallest companies can have employees on international assignment. To achieve significant program efficiencies and align human capital performance to global objectives, companies are managing their programs in a way that increases and measures the ROI realized from each and every international assignment.”
    Tracey K. Edwards, Deloitte & Touche
“The most significant development in the management of expatriates over the last 20 years is the emergence of English as the ‘lingua franca’ of global business. Driven by the dominance of American culture (both business and popular), it is this common language which has facilitated the growth of global business and the Internet.”
    Tim Dwyer, KPMG, New York
“The growth in outsourcing is the biggest single development in the management of expatriates in the last 20 years. Also, the recognition that non-home country expatriates can be effective managers is a major breakthrough and a continuing trend.”
    Michael S. Schell, Windham International
“It’s not one change, but many [including], 1. Recognition that preparing expatriates to move is actually a productivity tool. The use of cross-cultural programs and destination services, while an added cost, becomes a cost saving by having the employee and family settle in quicker. 2. Reduction of dependency on expatriates. As companies expand globally, they must tap into the local labor pool. A strong training and development program results in employee retention. 3. Outsourcing. This has become big. Businesses realize that while relocation, tax and immigration are essential, they do not necessarily add value by keeping these things in-house.”
    Tobye Bernstein, GE
“Customization of expatriate packages seems to be something that was less common in the past and has become more the norm over the past few years, leading to different types of policies (flexible, lump-sum, cafeteria-style, etc.).”
    Pam Prestininzi, Viacom


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