ARE COST SAVINGS GETTING IN THE WAY OF YOUR DIVERSITY AND INCLUSION AGENDA?
Cecilia Franchi • July 18, 2019
A series of alternative approaches to International Mobility have emerged over the last few years. We have seen an increase in commuters, extended business travelers, and short-term assignments. Frequently, these “split family assignments” try to contribute to the deployment of talent around the globe while saving costs. We all agree that gender diversity is a must within organizations, with international assignments being an essential path to upper management positions. But are these cost saving initiatives helping or preventing gender diversity within our organizations? A series of studies support what our experience on the ground is telling us: female talent is more sensitive and reluctant than their male counterparts to accept split family assignments. Leaving their partner/spouse and children behind for a few months of commuting is not working well for female talent, whatever the age group. So, if your cost cutting initiatives are indirectly affecting your diversity and inclusion agenda, what does it mean for you as an international employer? Unaccompanied assignments for families have been on the rise for several years, either driven by the employee for practical reasons, or to cut costs for employers. Consequently, when cost-cutting is the main objective and these assignments progress long-term, it often becomes unsustainable for the family and may negatively impact employee retention
AIRINC’S 2019 Mobility Outlook Survey* reports that cost savings are now a permanent priority for most GM departments, whereas until now cost considerations have been somewhat cyclical or sector specific. This has led to the creation of many types of ‘light’ packages, with stripped down perks. On a global perspective, the partner of a female expat is more likely to prioritize their career than the partner of a male expat. This is in no way prejudiced but simply based on statistics, namely the number of non-working women which still outweighs men. With respect to traditional accompanied long term assignments, you could therefore deduce that female expats are more likely to expect or need spousal career assistance and other family-related assignment services whilst on assignment. In this sense, today’s lower cost packages, with trimmed down benefits, may be more discouraging to female talent than their male counterparts and this is working against the diversity goals of most organizations.
Jonathan Dunlea, Partner at PwC and Abbie Cooke, Global Mobility Consulting Senior Manager at PwC add: “With cost pressures persuading even more employers to look at different ways to approach mobility, many of these new approaches to mobility (extended business travel, commuter assignments, short term assignments etc.) can place additional pressure on the family unit, and disrupt “traditional” gender role expectations. It is important for employers to understand the ‘mobile readiness’ of their female employees, and that this changes over time due to stage of career, family and other personal commitments. Through alignment between talent management and global mobility, the right international opportunities can be identified at the right time for more female employees. Costs can still be managed in any scenario through building flexibility and choice into the mobility framework and policy options, therefore the resulting support and benefits package is more tailored to the individual’s needs and circumstances, without creating exceptions and additional entitlements. We believe that employers who are willing to take a flexible approach to their mobility policies and benefit entitlements will have a competitive advantage through mobilizing more of their female talent. Where employees are able to select assignment benefits which are most relevant to them (perhaps additional childcare support, or additional home leave flights, specific spousal support) and trade down benefits which might be less relevant, it will hand some degree of control back to the female expatriate, and maximize the chances of them taking the opportunity offered.”
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