With companies worldwide estimated to generate 43 percent of revenues outside their home countries, being assigned a job overseas is a distinct possibility. However, moving abroad isn’t something to be taken lightly and involves a great deal of preparation. The experience can be challenging and frustrating, with many employees finding that getting to grips with a new culture presents a steep learning curve. However, whilst working abroad can be a culture shock, it is often an experience well worth packing your cases for. There are a number of different factors that need considering before moving abroad. Ensuring that an assignee overcomes cultural barriers and embraces the new way of life is often a complicated and testing adventure, but even more important – and key to the success of any relocation – is the level of support an employee and their family receives from their parent organization. Each year, a comprehensive global relocation trends survey is conducted and sponsored by GMAC Global Relocation Services, the Society for Human Resource Management (SHRM) and the National Foreign Trade Council, with results indicating that spouse resistance, children’s education and family adjustment were among the most critical issues to be overcome, closely followed by spouse career progression and spouse support. However, help is at hand. Much-needed support is now available for relocations in the form of global relocation services for both transferees and their families. In many instances, these organizations are easing the burden of in-house HR departments by offering the specialist guidance and support needed to ensure an assignee is fully prepared for their time away, and such services are increasing to meet the new needs and expectations of clients. Before any assignment, it is essential that a thorough assessment takes place to ensure that any prospective candidates fit the bill. It is in the company’s interest to ensure that the right person is chosen; someone who will not only add value to the organization, but who will also find the whole experience rewarding and beneficial for their future career and development. “We encourage companies to provide a lot of information to the employee and family prior to the acceptance of an assignment,” explains Deborah Wilkes, Director of Global Human Resources Consulting Services at Primacy Relocation, LLC. “Companies should offer a complete assessment program for the assignee and the family to ascertain their expectations and what they are seeking from the assignment. Assessment is also necessary to discover if the personal growth motivators are realistic and achievable, and if the family members have characteristics that are consistent with the requirements for successful assignments.” Getting to grips with different etiquette and customs in a new country can be daunting unless an assignee has had some form of introduction – ideally a visit to the host country – beforehand. “If an employee is not well traveled, cultural differences are all the more apparent,” warns Ian Johnson, EMEA Business Development Director at GMAC Global Relocation Services. “In determining the best-fit individual for the assignment, the company may well decide that cross-cultural training is required, both for the assignee and their family where applicable. Such training aids with the preparation for the assignment and will help in reducing in any culture shock that the assignee may experience.” Family ties One of the greatest dangers is that family members accompanying the assignee overseas are overlooked before, during and after the relocation process – whereas in actual fact their needs are just as important as those of the assignee. Simple tasks such as buying groceries or going to the bank can be an intimidating experience without knowledge of the language or the correct protocol, so resources that can cater for the family are obviously going to be hugely beneficial. Before any move, it is essential that the family be consulted at each stage to ensure they are happy with the situation. After all, leaving other family members, friends and a career can be an unsettling prospect for anyone, and they have to feel comfortable that the new move is worth leaving their old life behind (indeed, this is often the deciding factor when it comes to accepting an overseas placement). For instance, the ability of a partner to adapt to a new life can cause problems, particularly if there is a risk that a spouse may have to give up a good career in order for their partner to pursue their own. “Today, one of the biggest factors is the impact on the couple in terms of their career goals,” explains Noel Kreicker, President of IOR Global Services and a member of the Society for Human Resource Management’s Global Panel. “You see more and more people today who are in dual career situations. Often, companies do not get their first choice candidate because the spouse cannot replicate their work in an overseas assignment.” Finding the right home, schools and job for a partner is also of critical importance. Crucially, procedures for renting or buying a house are likely to be very different to back home, therefore a certain amount of expertise and guidance is a must. “Certainly it helps to have someone on the ground, as a resource, as families are making these decisions. It is also helpful to have someone who is unbiased, rather than someone like an estate agent who has other interests at heart,” adds Kreicker. In addition, there is also the important subject of finding the right schools for children, often a key driver in making a decision about where to set up home. Parents may want their child to attend a particular local school or an international school, which are often prohibitively expensive and/or oversubscribed. Taxing times Some of the biggest worries associated with relocation are related to tax and expatriate/immigration rules – issues that, although confusing and daunting, are unavoidable. As these differ from country to country, having the help of a global relocation expert are particularly advantageous. “In general terms, length of assignment will affect both tax and immigration issues,” explains Johnson. “GMAC GRS works with a tax partner to ensure the client is compliant with both home and host locations to maximize tax efficiency. A further consideration needs to be where the assignee will be working (national location within the host country) and whether or not they will be traveling whilst on assignment (visa requirements).” A full understanding of a country’s tax laws is imperative for a new assignee according to Wilkes. “It is important for the assignee to understand what the company tax policy is in relation to assignment expenses and compensation of both company sourced and non¬¬¬-company sourced income,” she highlights. “A company must make certain that their assignee is fully informed and understands what accepting a global assignment means in terms of global taxation.” Conveniently, most companies provide what is known as a tax equalization policy. Wilkes summarizes this as when an assignee pays exactly the same amount of tax in their host country as they would have done had they stayed in their home country. “The company actually pays the additional taxation in the home country for assignment allowances and assignment benefits, and all of the host country taxation,” she continues. “The assignee pays a hypothetical tax on the compensation that he/she would have received as if they were not on assignment. At the end of the tax year, home and host tax returns are prepared.” In addition to tax regulations, heightened security in the wake of 9/11 has resulted in many countries tightening their immigration rules, with the result that companies now find it harder to bring new talent from overseas into their offices. A great deal of advanced preparation needs to go into addressing the issue of immigration before a transfer, explains Wilkes, and shouldn’t be something to be taken lightly. “Immigration needs to be addressed at least eight weeks before the assignment’s start date,” she says. “Many times people assume that they will not have issues – but the number one rule is never assume. It is imperative to conduct a complete fact-finding process with that family.” According to Wilkes, the immigration process can be full of unexpected surprises and delays – for example, the assignee’s family members may not have citizenship in the assignee’s home country, so until this hurdle is overcome the immigration process is going to be considerably slowed down. Technology Greatly assisting the whole process of relocation are new technologies such as the internet and online training. “People can stay linked to home and to the changing office environment in a way that they have never been able to before,” explains Kreicker. “We actually have a technology ourselves which is a virtual expatriate management system. Everything is all in one location, on one platform, so that all the cultural issues are in a workforce process environment. It is a way of saving tremendous numbers of administrative hours.” Of course, the internet is one resource proving a vital link for assignees and their families. Gaining a vast amount of information about a particular country is literally only a keystroke away, and can be a vital first port of call during the consideration of a move. GMAC is one relocation service that is utilizing the internet to provide a resource for its clients. The company has created tailored virtual relocation centers for its clients that provide a wealth of helpful information. “Such technology also allows for the online tracking (and payment) of expenses and financial management, the monitoring of visa and work permit compliance (which is critical), and income and expenditure reconciliation to bank accounts,” says Johnson. “Integrated interfaces to the international banking system allow us to pay virtually any bank account in virtually any currency without any data having to be re-keyed.” Once an assignee is settled into their new lives, this doesn’t mean that problems might not arise in the future. Continued support and advice is something that most global relocation organizations offer throughout the course of the assignment. “We have a program called In Touch where we stay in contact with assignees on a quarterly basis,” explains Kreicker. “We send people a note asking them how they are doing and whether they want any help.” This kind of service is likely to be a reassuring lifeline for assignees and their families. Johnson cites how there are many issues that might need resolving later down the line, such as ongoing property management, ongoing expense reimbursement and management. “This is why a dedicated point of contact who acts as a point of reference for any query the assignee may have while on placement is critical,” he says. Changing times Although family is still one of the major issues when it comes to relocation, times are changing, and a number of new trends can be observed. For instance, the number of women accepting work opportunities abroad has risen sharply; more expatriates are going on assignments without their partners; and fewer children are being taken away. These findings indicate reluctance on the part of partners to give up careers and move to a foreign country for the sake of their spouse. Unfortunately, relationships are likely to suffer as a result, but relocation is something many have to face during their careers, often without much compromise. Whether an assignee can really last the distance entirely depends on the employee’s unique circumstances.
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