October 2000

Editorial

One partner is not like another, but...

Alain Verstandig, Managing Director, Net Expat   Given the range of human nature, it would be astonishing if all expat spouses could be fitted into a single mold. They often come from entirely different backgrounds, have often grown up in dramatically different cultures. But, setting aside these differences for a moment, there is one thing that unites them more and more: the need for a professional identity. Following your expat partner to a foreign country isn't easy in a world that puts the emphasis on personal achievement. And what distinguishes these accompanying spouses - whether they hail from India, Germany or the USA - is the desire to share in the enriching process of expatriation. For some, this will mean joining the ranks of top management, for others "doing their own thing" without aspiring to an ambitious career, for others doing more than simply meeting friends over a cup of tea. And, if the employer happens to change the partner's status from expat employee to a local contract, then the accompanying spouse's objective may be strictly financial. So the motivations may be different, but the need to be active professionally confronts them all with the same challenge: to find a job that suits them in a country that is not their own!

Worldwide Survey

International Assignments in the New Millennium

Mrs. Siobhan Cummins, Managing Director; ORC, London As global competition forces companies to seek new markets in which to expand their business interests there is increasing demand for highly mobile employees who are prepared to live and work in different countries. More companies are transferring employees on international assignments than ever before. This fact is borne out by ORC's 2000 Worldwide Expatriate Policies and Practices Survey of over 600 companies from Europe, North America and Asia. Globalisation has increased the demand for highly skilled mobile employees. This has led companies to source their assignees from a worldwide pool rather than from a single home country as many did in the past. The consequence of this is that companies are now transferring assignees from a multiple of homes including emerging countries. Despite the increasing use of alternative pay systems in Europe the majority of companies continue to use the balance sheet approach when paying their expatriate staff. Originally pioneered by ORC, the Balance Sheet ensures the purchasing power of an assignee does not differ significantly while he is on an international assignment even if costs in the host location are higher. Cost of living Allowances based on preserving home purchasing power are still very much a feature of most assignment packages. However the type of allowance paid is likely to be one of the more cost effective options such as an Efficient Purchaser Index, or modified index. Companies are also considering the use of alternative approaches to cost of living such as international or regional blended indices to remove the link to a specific home country. Dual careers remain an issue, which companies continue to struggle with. Despite the fact that dual careers and family issues are cited as the main reason for assignment turndown, only 37 % of companies in ORC's Survey provide assistance to expatriate spouse. What type of spouse assistance is offered? The split is very interesting to analyse per region, with a clear lead for European companies, with 57 % of them offering some form of support. Most frequent support offered by European companies is "job-search assistance" (29 %), followed by "work-permit assistance" (27 %), and "career counselling" (19 %). North American companies come in second position, with 49 % of them offering some form of assistance to expatriate spouses. In their case too, the first type of support provided is "job-search assistance" (33 %). It is interesting to note that "career counselling" and "CV presentation" come just after this with 28 %. American Companies offer more comprehensive assistance. Asian Companies come in third position with only 8 % of them offering some form of assistance to expat spouses. Most frequent type of assistance is not "job-assistance" related (i.e. work permit and continuing education) with 4 %. Allowance levels vary considerably per region from $2,500 to $10,000 and may be paid as a one-time lump sum or an annualised payment. No companies are offering total compensation for loss of salary, and only 5 % propose employment within the company. Pure financial assistance is given by 14 % of European companies, 10 % of American and Asian Companies. Also companies are making more use of alternative assignment patterns such as short term, commuter and virtual assignments. Most companies take the view that they cannot necessarily solve the problem but the important point is they recognise it exits. Interesting to note that the definition of "spouse" is not the same in all regions. For Asian Companies, only 9 % include "long-term live-in partner of opposite sex" to wife and husband, against 19 % for American Companies and 56 % for European Companies. Only 3 % include "same sex couple" against 14 % for American Companies and 23 % for European Companies. In reviewing overall trends there appear to be no major changes in the way in which companies compensate their international assignees, however, cost is a major issue and packages are likely to be structured in a more cost effective way than in the past. Companies tend to take the view that international assignments form an integral part of an individual's career and no longer see the need to provide the rich packages of 10-20 years ago. The challenge for most HR managers is designing policies and practices which are family friendly and encourage mobility whilst still being cost effective. A tall order indeed! n More companies are transferring employees on international assignments than ever before... The challenge for HR managers is designing policies which are family friendly and encourage mobility whilst still being cost effective.

Testimony

The Warrior

Mona Tewfik, expat partner from Procter & Gamble Mrs. Tewfik, you followed your husband on an international assignment and benefited from our assistance. You have now been working for nearly nine months. How do you feel? - As you know it was not easy for me to find work in Belgium as a non-EU citizen. So now that everything has been arranged and I'm working, I feel extremely relieved. It's incredible how such worries can affect your life. It's a tough experience if you do not have the right partner to guide you through. When my family moved to Belgium, as a result of my husband's transfer, we had no doubt that we would be able to settle down and I would be able to pursue my professional career. But when I started looking for a job, there was always the question of a work permit. It did not take too long to realize that this was a real challenge. But thanks to the help and guidance of Net Expat, who gave me motivation and confidence, I have been able to follow my career and acquire international business exposure. A message to other expat partners: be sure that you have a professional team who can help you make your life change for the better, even when you think it is impossible. They take you through a process that makes you a "strong warrior". I believe that more and more people will be seeking their assistance.

Transferability

Encouraging mobility in Europe and around the world

Philippe Siuberski, correspondent in Brussels for "l'Agence Education Formation" Mobility, the word seems to be on everyone's lips. Last April, in Okinawa, the education ministers of the G8 member states committed themselves to doubling, within the next 10 years, the mobility factor of their students and professors. "We will encourage our educational institutions to increase diploma transferability. We will continue to reinforce the teaching of languages and foreign cultures at every level of education" the G8 summit ministers asserted. At the Council of Europe meeting in Lisbon, in March 2000, the heads of states and of governments of the European Union set themselves the objective to make Europe the "most dynamic economic zone in the world". To reach this goal, the European Union has committed itself to optimizing existing mobility programs, such as Socrates-Erasmus for students, and Leonardo da Vinci which offers professional training for both trainers and employees. The Fifteen have also recognized that optimizing these programs is not the whole solution. They have entrusted the European Commission with the task of drawing up a list of all the obstacles, over and above such well-known barriers as non-recognition of diplomas and uncoordinated academic calendars, that tend to hamper mobility. Examples of these obstacles are the risk of double taxation of student scholarships, disqualification from unemployment allowances and social security for unemployed persons studying in foreign countries, and all the problems faced by expatriate families. On this last point, the European institutions have highlighted the administrative problems that arise when a spouse wishes to accompany an expat for a period of more than three months to another member state. These include obtaining a residence permit, demonstrating one's financial means and arranging medical insurance. Housing problems, schooling for children and work for the spouse, on the other hand, do not seem yet to rate highly on the Union's list of priorities. The Commission's work will be enriched by an Action Plan for Mobility (PAM) at the end of this year. This plan will ask the Member States to implement a number of measures towards mobility over the coming years. Preparation before departure programs, mostly linguistic programs, should be put in place. Teaching and researcher positions should be reserved for foreigners. Diplomas and qualifications should be better recognized. To do this, a "European Supplement" will be attached to diplomas, which should permit all educational institutions and employers to evaluate easily the studies carried out in another country. The entirety of these measures though will not be automatically applied to all countries of the EU because they concern areas, such as education, fiscal systems and social security, where member states, and not the Commission, have the last word. But it is a step in the right direction!

Some profiles

Looking for someone? Here are some of our available candidates who are actively looking to pursue their career. Don't hesitate to contact us if you are interested, it's completely FREE OF CHARGE ! British Scientist fond of bioinformatics and computers in general - Ref. GHE Pakistani PhD in Sciences with 3 years of experience in Biotechnology - Ref. AAK l American Primary Teacher experience with young children - Ref. KGA l German / Swiss Marketeer. Spoken: German (MT), French, English and Italian - Ref. BBO l Dutch Tax Specialist extended experience working for the Court of Justice of Arnhem - Ref. NWA American Marketing Manager with MBA - 12 years of experience in B2B and Internet. Additional finance background - Ref. LDO British Junior Administrative support - Spoken: English (MT). French understood - Ref. SLU Austrian Food & Beverages Specialist, with extensive experience in managing a large supermarket - Ref. RKM From Trinidad: Legal Consultant Environmental Regulations & policies (CO2 trading). Spoken: English (MT) & French - Ref. DWA French Russian Specialist - Experience in the telecommunications sector. Spoken: French, Russian & English fluently. - Ref. NDU Italian Personal Assistant - Law degree with 6 years experience in Research projects, Communication and general Office Management. (preferably a part-time position) - Ref. PCA Indian Web Developer & Designer - Engineer More than 3 years expert level experience in Computer Graphics, animation and Multimedia. English (MT) and basic French (courses in progress) - Ref SSA German Procurement - 9 years experience with knowledge of SAP. Spoken: German, English, Dutch & French - Ref. SVC British H.R. Generalist - 8 years of experience assisting in various HR fields. Spoken : English, French - Ref. EWR ...

Expert Opinion

Strategies for Assisting Expat Spouses

Jean-Luc Cerdin Professor of Human Resource Management, ESSEC Business School Paris The "expat spouse" is a major issue in the management of expatriates. Research shows a strong correlation between the adjustment of the expatriate and the adjustment of the spouse. Organizations should take the spouse into account from the beginning of the expatriate selection process. Generally, the spouse is not an employee of the organization and some companies are reluctant to screen her/his adaptability and perception of the move. The rationale behind this approach is that they do not want to interfere in the private life of the potential expatriate. Nevertheless, when an organization sends an employee on a global assignment for some years, it impinges to some extent on the private life of this employee. The international assignment of employees frequently involves the mobility of their whole family. Ignoring the spouse boils down to an incomplete recruitment process. Interviewing the spouse can give the recruiter the opportunity to understand the spouse's expectations concerning the future move and the perception of its impact on all aspects of her/his life. There are many possible policies that can be of assistance to a spouse. These policies range on a continuum, from one extreme where the organization does nothing to the other extreme where it manages the dual career issue. The minimum might include pre-departure trips, logistical help and pre-departure intercultural and language training. The organization might go further, helping the spouse to research potential activities abroad. The organization could also provide the spouse with career counseling, or help the spouse to clarify what she/he would like to do. The options hinge on the aims of the spouse, on the laws of the host country (especially regarding working permits) and on other possibilities offered by the host country. For instance, international mobility can be an opportunity to carry out benevolent activities or resume or pursue studies such as an MBA. It might be seen as a break in a career to start a family or look after children. It might constitute a professional breakthrough in setting up a business abroad. Legal and management advice along with financial support can turn a dream into a reality. An organization might turn to its network in the host country in order to find an adequate job for the spouse. It might, at the extreme end of the continuum, hire the spouse. These approaches cannot be improvised once the expatriation is underway. Providing comprehensive support for a spouse takes time. When the spouse fails to adjust, it's very often too late. Sometimes, when nothing has been done, offering language courses could help because communication enables the person to feel less cut off. However, some spouses who cannot cope with the various aspects of their new situation fail to speak up. When serious difficulties arise, such as a nervous breakdown, the success of the expatriate may be in great jeopardy. It is important to look at how the couple interacts before the expatriation. One of my recent research projects shows that a little over 10 % of the expatriation decisions are unilateral and are not discussed and agreed to within the couple. These spouses are non-working women before and during the assignment. Their adjustment is very poor compared to others where the expatriation decision is a joint decision. Research indicates that international mobility reinforces the link between the members of a happy couple and contributes to the dislocation of couples already dysfunctional before the departure. The lack of communication within the couple and other factors such as poor adaptability are conducive to poor adjustment of the spouse. The failure of the spouse to adjust can be detrimental to the success of the employee on a global assignment. n