October 1998

Editorial

Welcome to this first issue

Alain Verstandig, Managing Director, Net Expat   The objective of this newsletter is to inform you on recent trends in the field of International Human Resources and provide you with opportunities to benchmark your current practices with other companies. In tomorrow's market environment, manager's mobility will be a must. Countries borders are disappearing. The single European market is not a dream any more. To succeed into tomorrow's global economy, companies will require mobile managers at all level. Mobility, flexibility and cost reduction will reshape the traditional status of expatriates and of their family. As you will discover, the participants in this newsletter will offer you various perspectives, from academical background to personal experience. We hope that you will find this information valuable. Don't hesitate to contact us to add your point of view and suggest the topics you wish to see addressed in the next issues. Enjoy your reading.

Surveys

Relocation trends

In this first issue, we would like to share with you interesting results from a recent survey published in the Relocation Journal. This survey was conducted in 1997 amongst more than 100 relocation professionals in the U.S.A.. Despite the fact that practices differ from Europe due to our local peculiarities, the U.S.A. remains a source of innovation and is often a precursor in trends. Annual number of relocations The average number of relocation per company is around 320 employees per year. This number is clearly on the rise versus 1996. This is expectable as companies are playing more and more on global markets and therefore require mobile managers. Expatriation is becoming part of a normal career path leading to exposure to international environment and foreign culture. Cost directly related to expatriation The total cost per relocation varies greatly amongst companies and according to sector. The average cost per relocation in 1997 was 51,000 USD which represents an increase of 24% over 1996. Despite the increase in relocation costs, we can assume that expatriation packages will continue to be under pressure as the number of foreign assignments increase, leading to a reduction in the premium offered to expatriates. Dual income will probably help in this process of cost reduction. Relocation assistance An increased number of companies are outsourcing relocation assistance to third-party providers who will insure the coordination and delivery of all services through a variety of specialised suppliers. The reported use of a third-party provider has increased by 37%. The companies relocating 250 or fewer employees annually rely the most on third-party providers. In general, the assistance is mainly focused on settling-in services, language training, tax preparation, work permits, spouse assistance and household goods move. Spouse/partner assistance part of the trends It is interesting to notice that 50% of the survey participants include specific spouse/partner assistance in their relocation policies, an increase of 9% over 1996. This is directly linked to the fact that more employees are refusing international assignments due to spouse/partner career concerns. Future plans Companies plan to enhance the relocation benefits mainly in 2 areas: - spousal jobseeking assistance (44%) - assistance for non-jobseeking spouses (16%) Projections indicate that the number of companies offering spouse /partner assistance will reach close to 70% by the year 2000.

New Practices

Expatriation and International recruitment

Interview with Mr. WAJSKOP, Managing Director of EMDS Group, a leading consultancy in international recruitment Net Expat : Mr. Wajskop, what are the general trends in international recruitment ? Mr. Wajskop : Since the beginning of the 90ies, the recruitment of junior executives is strongly increasing. There are several reasons for such a development, the majors being : · The globalisation of the economy and therefore the need for companies to recruit people who have a global perspective of the business and who are able to evolve in a multicultural environment, · The possibility to recruit within the European Union without additional administrative work (like work permits), · The need to meet the aspirations of candidates who are looking for mobility through their professional environment. In this respect, the exchange programs launched by the European Commission have a huge impact on junior executives expectations. Net Expat : What do you think about the expatriate status that exists since the 50ies within multinationals? Mr. Wajskop : The expatriate status tends to disappear in Western Europe. Because the expatriation was perceived as an additional burden imposed on the managers, very attractive packages were offered in compensation. Today, the mobility within the European Union is considered as usual and even as a benefit by the companies and by the candidates. The international experience is certainly a plus on a resume. The financial package offered by companies to international managers varies from one company to another. Usually the objective is to provide the expatriate with a competitive package within the local environment, which tends to reduce the attractiveness of the expatriation packages. Net Expat : What are the motivations of mobile managers? Mr. Wajskop : The search for personal development, the feeling to enrich their professional career and still the attractiveness of higher salaries. Net Expat : For companies recruiting these new mobile managers, what would you perceive as key success factors? Mr. Wajskop : Unlike the expatriates of the 60ies and 70ies, international managers are often accompanied by a spouse or a partner willing to work. The dual career issue is therefore a modern challenge of expatriation. There are two reasons for this phenomenon: 1. Because they were born of similar socio-professional and intellectual environments, the spouse will often have his/her own professional aspirations. 2. With the expected reduction of expatriation packages and the loss of one source of income, expatriate couples will have difficulties to live on one salary and keep a rewarding standard of living.

Dual career

One assignment, two lifes !

Here is the point of view of Mrs. Carmen Helene Levy, public accountant and auditor : I am the spouse of a top executive of a multinational company. My husband was offered several foreign assignments and we moved from Brussels to Paris, from Paris to New-York, back to Paris, back to Brussels, and back to New-York ! Each time, I interrupted the course of my career. My husband's company did not offer any assistance in helping find a job for the accompanying spouse. I struggled my way through many difficulties to hand up sometimes with a second choice job or none at all ! Most of the time I went back to the University and registered on the continuing education program. Back in Brussels, I recently discovered the services of Net Expat, I only wished I had known them before, because they offer exactly what I have been looking for each time I found myself jobless in a new country : assistance and assurance to the accompanying spouse to find a job in the field of her competency and the security of building a dual career opportunity.

Testimonial

Success Story

Interview with Mrs. Domenèch who followed her partner from Spain to Belgium Net Expat : How did you live the fact to quit your job in Spain to follow your husband in Belgium ? Was it a difficult decision ? Eva Domenèch : It is always difficult to leave home but it is easier when you are young and without family constraints. You don't think about the problems which will arise, you just take the risk. And anyway in our case we were prepared to the idea that we could be expatriated, therefore it didn't take us long to decide. Net Expat : If you look behind, what were the most enjoyable moments of your expatriation ? And the worst ? Eva Domenèch : It is always a challenge to live in a country with different habits and culture but fortunately we had a lot of support from my husband's employer (Du Pont de Nemours) for all the administrative aspects linked to the expatriation. My first contact with the working environment in Belgium has not been the best but finally I have found a job which allows me to continue my professional development and be more acquainted with the local market. For us, Spanish people, it is difficult to cope with the weather but in general until now my new experiences are positive. Net Expat : Why were you so motivated to find a job in Belgium ? Did you take this decision alone or in with your husband ? Eva Domenèch : It was a normal decision to pursue my career and of course keep remuneration. Net Expat : How did you live the transition period where you were looking without assistance for a job in Belgium ? Eva Domenèch : I did not actively searched for a job before meeting Net Expat. It is not easy when you don't know the local labour market. Net Expat : How do you perceive Du Pont de Nemours, the company employing your husband, after they have offered you our services ? Eva Domenèch : I think they took a good decision by offering us Net Expat's services as you are the experts in job search for expatriates. Without your help, it would have been more difficult. Net Expat : How is your husband feeling now that you are working ? What are his views on our services ? According to him, is this type of spouse assistance a need ? Eva Domenèch : We are both very happy and see your services as very professional as you treat the issues in a sensitive way. Moreover, your availability is fantastic. My husband believes that such type of assistance is needed as this is an ideal way to enrich and improve my professional career. Net Expat : How do you feel now that you work full-time ? Do you feel integrated within your working environment ? Eva Domenèch : Now, I feel more integrated in the Belgian community and it is enjoyable to get also working relationships on my side. I have met more people while working since 3 weeks than during the last 6 months.

Expert opinion

What about psychological factors ?

Mr. Luc Drieghe, psychologist specialised in working environment, formerly at University of Ghent In dual career couples the professional adaptation of the trailing partner is crucial for his or her psychological well being. The importance of this psychological well being must not be underestimated. Management scientist and transfer managers frequently underscore its impact on the functioning of the expatriate manager. Family adaptation problems are one of the main reasons for expatriate failure. In this sense, investing in 'family resource management' is a prerequisite for the effective functioning of the expatriate.