Expat Partner Support HR Newsletter | December 2013 Welcome to the December Global Connection HR Newsletter. This quarterly publication will inform you about policy and operations and keep you up-to-date on expat partner issues. It also contains the latest news on Global Connection spousal support activities, including research and HR consultancy, and an interview with dairy giant FrieslandCampina.
TREAT EXPAT PARTNER SUPPORT AS AN INVESTMENT Most of our clients regard expat partner support as an investment – not as relocation costs – as it increases the success of the posting and the mobility. However, the cost allocation of these high-return investments requires proper attention – not least to avoid falling prey to cost-cutting exercises. ‘Penny wise, pound foolish’ cost savings A few years ago, an HR director told me that he had been unable to stop partner support cost-cutting as he was lacking the figures to show any return on investment. The board had decided that corporate HR had to cut costs, due to poor company results, and partner support costs fell under corporate HR costs. Since then, the HR director has been able to calculate the annual multi-million euro ROI (for details of the calculation, please see page 3 in our HR Newsletter, December 2012), excluding the benefits of increased mobility, and obtained approval to reimplement the old partner support programme. A board level issue Discussing this topic with a number of our clients has led to the conclusion that only one general rule is applicable for partner support costs: treat them as an investment, wherever the costs are allocated, and make the ROI a leading factor in the discussions. It is also important for boards to understand that these costs are anything but ‘relocation costs’ (similar to removal costs, for example). Cost efficiency and effectiveness As our surveys have shown, choosing cost-efficient and effective support is the only way to cut costs. Among the many best practices we have applied is switching from ‘cash out’ (‘Gucci money’) to reimbursable support. This not only leads to an increase in the effectiveness, but also to a high cost reduction as a result of the usual uptake figures (see page 1 in our HR Newsletter, September 2012). Jacqueline van Haaften
SPLIT FAMILIES ON THE RISE Research appears to indicate that increasing international mobility will lead to a growth in what is known as ‘split families’. These situations already occur in no less than 20% of international assignments, according to the Global Relocation Trends report, published by Brookfield GRS. The report notes that, in 2012, there was a marked increase in the number of employees moving abroad on long-term contracts (twelve months or more) without their partners/families. Dual careers The likely reason behind this rise, according to the survey, is the issue of dual careers, with both partners in a relationship having – and wanting to maintain – their own job. The current climate of economic uncertainty is another reason why many people are choosing not to give up a dual income. Many types of international mobility, such as short-term assignments, international commuting and extended business trips are likely to increase in the future (see also the PWC survey, on page 4 in this newsletter). Inevitably, this will also lead to a further rise in the number of split families. The pros and cons In the December issue of Global Connection Magazine, the pros and cons of split family situations are highlighted. Some of the expat partners interviewed in the article clearly found that living apart for extended periods of time took a toll on their relationship. But other partners managed to strike a balance. They note that there are some practical and psychological difficulties but that, thanks to modern communication means, it is possible for the expatriated partner to stay fully involved with the family back home. And that, they say, is of vital importance. Real concern for HR How do HR officials deal with the rise of split families? Available literature and a number of interviews published in Global Connection Magazine over the last few years and in Global Connection’s Expat & Partner Guide suggest that they generally see it as a matter of real concern – something that needs to be thoroughly discussed with all parties concerned before a decision is made. Global Connection | December 2013
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Expat Partner Support HR Newsletter FRIESLAND CAMPINA – EMERGING MARKETS
ALSO FEATURED IN GLOBAL CONNECTION’S DECEMBER MAGAZINE* Changing Course – Creative career choice: from actor to healer Several international moves put an end to one Global Connection member’s career as a theatre director and actor. When doctors couldn’t find a cure for her baby’s illness, she consulted a homeopath, whose treatments completely healed her daughter. That led the former actor to become a homeopath – a perfectly understandable career change, she says, since they’re both in creative fields.
Priority for partners and children Compensation, Benefits and Global Mobility Director, Erik-Jan Vegers and Global Mobility Manager, Marco van der Neut at Dutch dairy giant FrieslandCampina. They talked to us for the December issue of Global Connection Magazine about the special challenges of emerging markets. The quotes below are extracts from the full interview in our magazine. About the selection of candidates for postings in emerging markets: • “Whenever we’re selecting a candidate, we always look at whether there is a good match. Emerging markets place a high demand on an expat’s autonomy and often on their ability to wheel and deal. You always have to ask yourself what the business goal is, and then look at whether the candidate selected for a post has the qualities to match.” About the impact of dual careers: • “That’s not been a problem for us. We almost always fill expatriate postings from our talent management pool. Anyone we place in that pool has already consented to going on global assignment. So you can assume that they’ve already had discussions at home about international relocation.” About supporting partners and children: • “If expat partners want to work or study for a degree, we help them. Older expat partners often do volunteer work. Our experiences have been just as positive in emerging markets.” • “Also, we place a high importance on the needs of children.” 2
Global Connection | December 2013
Expat Partner & Work – The expat writer Researchers claim to have found a ‘robust link between living abroad and creativity’. Expatriates aren’t surprised; being bombarded with new experiences every day does have a way of stimulating the senses. More than ever before, expat partners are finding an outlet for these creative insights in the written word. We consult experts and also talk to Global Connection members who are writing memoirs, blogs, journals, letters – just about any medium that acts as a vessel for their stories. Personalised Support – GP Isabelle opts for flexible alternative Many expat partners are concerned about their own personal careers when moving between postings. Isabelle had always been determined in her career as a General Practitioner. However, when she moved to her third location, she reassessed what she was doing. A Needs Assessment with one of Global Connection’s consultants helped her with the choices that led to a career change. Culture – The surprising link between alcohol and culture As with many ingrained attitudes, our views of alcohol are rooted in the culture we have surrounded ourselves with. Some cultures see drinking as a pleasurable and normal aspect of daily life, while others compartmentalise it. But culture doesn’t just affect how we think of alcohol, it also affects how we respond to it. When it comes to drinking, nurture definitely trumps nature. * for spouses (B2B subscription)
ON A LIGHTER NOTE Mistaken identity As the London-based HR manager of a Swedish branch of a multinational corporation, I was unpleasantly surprised when our marketing director and our senior marketing manager were both asked to relocate to the head office in London. How could these two top-level (and therefore highly-paid) expats in the same field be required here? It seemed to weaken our organisation. How had this happened? London had decided to approach Lars A. to fill the vacant position of marketing director. However, Lars B., the senior marketing manager, was contacted by mistake. The offer had taken Lars B. by surprise, but naturally he grabbed it with both hands. It was a fantastic and unexpected promotion for him! When London discovered its mistake, Lars A. was approached – and hired – as well. The result was that the marketing department in London was given an unexpected boost and we were left with two urgent job openings in Sweden... Source: Expat & Travel Stories – Global Connection
PERMITS FOUNDATION: MORE WORK PERMITS FOR PARTNERS In our HR Newsletter, September 2013, we published the results of our survey, which showed that 53% of expat partners who originally wanted to find paid work abroad, changed their plans once they had moved. When asked for the reasons behind this change of plans, only 25% answered that they could not get a work permit. (Main reasons were: limitations of expat life and option to change course.) To Kathleen van der Wilk-Carlton, executive director of the Permits Foundation, this figure “might well be a reflection of the success the Permits Foundation has had in lobbying for change.” She says: “When we started in 2001, there was only a handful of countries that allowed partners to work. Now there are thirty countries where the spouse can work freely or be self-employed throughout the assignment. And a growing number of countries recognise unmarried partners, same sex partners and working age children.”
VIDEO OF PARTNER SUPPORT POLICY WORKSHOP
Priscilla van der Linden – Rabobank
A short video was made during our Partner Support Policy Workshop on May 30, 2013. You can view it on our website www.global-connection.info by clicking on the ‘For HR’ tab and then on the link under ‘Related articles / files’ for this newsletter. It contains snapshots of some presentations and breakout sessions.
DIGITAL AND/OR PRINT MAGAZINE – PILOTS As reported in our HR Newsletter, June 2013, 41% of the respondents of our Global Connection partner support survey 2013 (n=588) have indicated that they prefer to receive our magazine both in print and digitally, an option we have already been offering for over 5 years. 34% prefer only print, and 25% only digital. For one of our clients, we will run a ‘digital only’ pilot in 2014. In addition, we will run a number of pilots with clients who leave the choice for digital and / or print to their partners. Although the savings of digital are relatively small (no printing, handling and postal fees), we feel that it is good to facilitate the partners’ increasing need for ‘digital only’ versions of our magazine.
TURMOIL IN EXPAT COMMUNITIES Many expat partners will tell you that one of the perks of living abroad is that you get to meet a group of people – often from your own country – with whom you will become very close friends in a very short time. Everybody is in the same boat, and you meet up with each other frequently (clubs, international school, parties), so it’s easy to forge friendships. Or is it? Listening to stories from expat partners (mostly women) there seems to be another façade to this friendship. Sometimes the women who accompany their husbands abroad do not get along with each other at all. In small communities, such as compounds, this can be a real problem, not least for expatriating companies. Sensitive to group processes What are the likely causes? Some American literature about interfemale aggression will tell you that a possible root cause could be that many women are very sensitive to group processes. For instance, in their book In the Company of Women Pat Heim and Susan Murphy suggest that women who occupy more or less the same hierarchical position in a group closely monitor whether other members are trying to acquire more power. If someone is suspected of doing so, the group immediately turns against her. There is also a theory that the way women ‘fight’ each other often is indirect. Here, gossip and social exclusion are the weapons of choice. The problem with this is that those ‘weapons’ are very hard to combat, both for the victims, and for the expatriating companies who would dearly like to put an end to the social upheaval in their compounds. Feasible solutions So what can be done about friction between the partners of expatriated employees? After consulting specialists about this subject and studying available literature, some feasible solutions could be: • Group sessions with coaches who specialise in group dynamics. • Individual sessions with counsellors who specialise in mental health issues and can help women recognise and live with indirect aggression. • Provide better-focused personal partner support, as boredom appears to be a contributory factor to interpersonal friction. Much can be gained if a partner can be helped to find a meaningful life abroad. • Prepare expat partners for possible social tensions in the expat community. For instance, our article in the December 2013 issue of Global Connection Magazine clearly outlines the interpersonal mechanisms involved, and could be used as a reference tool.
DIGITAL HR NEWSLETTER AND MORE Our HR Newsletters can also be distributed digitally. Please advise us if you would like to receive the digital version, as well as or instead of the print edition, or if you want to stop receiving our newsletters altogether. You can find all our HR Newsletters at www.global-connection.info (‘For HR’ tab), including related and more in-depth articles. Global Connection | December 2013
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Expat Partner Support HR Newsletter PRICEWATERHOUSECOOPERS: 50% GROWTH IN ASSIGNMENTS FORESEEN The business world in 2020 will be markedly different from that of today. International mobility strategies will need to progress significantly to keep pace with this change and the great increases in assignee numbers. This is the main conclusion of the Talent Mobility 2020 report, published by PricewaterhouseCoopers. Several sources were used to compile the report, such as a database with information from 900 companies that are frequently surveyed on assignment trends, and a survey (n=4000) of the millennial generation (people born after 1980). The report foresees a 50% growth in assignments abroad by 2020, especially more quick, short-term, and commuter assignments. There will be a significant shift in mobility patterns, as skilled employees from emerging markets increasingly operate across their home continent and beyond. The predicted rise in international mobility ties in beautifully with the ideas of the millennial generation, who view working abroad as ‘a rite of passage’. Over 80% of this age group worldwide now expresses a wish to work at least some time abroad.
YVONNE MCNULTY AND KERR INKSON STUDY ON ROI: FAMILY MATTERS A LOT Expatriating organisations can play a critical role in supporting expat families, by providing effective social, professional and practical support, and a direct communication link with family members. This is one of the conclusions in Managing Expatriates – a Return On Investment Approach, by Yvonne McNulty and Kerr Inkson. The book deals with the difficult issue of how to calculate the ROI of expats (eROI), and categorises the factors that need to be taken into account. Family situation can wreck ROI One of those factors is the family situation. “The challenges associated with the spouse’s career, identity, and adjustment, along with issues related to children, health, and marital fidelity and happiness can break an expatriate and wreck his or her eROI.” The researchers write that many companies do not sufficiently acknowledge expat family issues. And even: “We suggest that when family problems are added to the ROI equation, it may sometimes be better for an organisation to find another global staffing solution that does not involve traditional expatriation.” 4
Global Connection | December 2013
ABOUT GLOBAL CONNECTION Global Connection is an independent, international organisation that is exclusively dedicated to expat partner support. Our goal: to contribute to the well-being and mobility of expat partners and consequently to the success of the posting. We have 20 years of experience and more than 250 organisations use our services. We support partners of 80 nationalities in 140 countries. SERVICES FOR HUMAN RESOURCES Research: Global Connection conducts research into all aspects of partner support. Our studies include surveys among expat partners as well as HR executives. In addition, we conduct customised surveys to answer your specific questions. Consultancy: We help organisations with, among other things: partner support policy development, ROI calculations, improving cost efficiency and effectiveness, benchmarking, best practices exchange, supplier selection, purchasing/contracting, testing plans and new initiatives. HR management and staff training is also available. SERVICES FOR EXPAT PARTNERS Unique support model: Effective partner support requires providing the right information and service at the right time and in the right way. Therefore, we work according to a unique Triple Seven Support Model and provide a one-stop-shop for expat partner support. 7 STAGES Pre-decision Pre-departure Settling in Settled Pre-repatriation Repatriation Repatriated
7 AREAS Life abroad Destination Networking Paid work Alternatives Repatriation Other
7 FORMS Needs assessment Media Support desk Network Local meeting Coaching* Training* * incl. test/assessment
B2B and B2C: Our support packages are exclusively available to expat partners of assigning organisations that have a contract with Global Connection. Our books are also available to the general public and can be ordered online. MORE INFORMATION Please visit www.global-connection.info or contact us: Business Development Managers: Irma Groenhof – irma.groenhof@gcmail.info Geke van Gurp – geke.van.gurp@gcmail.info Managing Director: Jacqueline van Haaften – jvanhaaften@gcmail.info
ABOUT THIS NEWSLETTER This quarterly Global Connection HR Newsletter is produced for all HR, Global Mobility and Talent Managers with an interest in expat partner support. For more information, please contact us at info@gcmail.info