Relocate Autumn 2013

FO R H R , G LO BA L MA N A GERS & RELOCATIO N PR OFESSIONALS

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Re:locate Section heading

Autumn 2013

Oil and gas Mobility in the global energy sector USA focus Relocation, inbound and outbound

This issue sponsored by:

1 | Re:locate | Autumn 2013

relocatemagazine.com

Assignees and eldercare A ticking time bomb for relocation policy?

DID YOU KNOW...

Section heading

USA: In the workplace, a phrase like “Say what you mean and mean what you say� indicates the U.S. American directness and focus on words, actions and facts, not necessarily on feelings. Being open and straightforward is admired.

INDIA: Saying no, or giving negative feedback and “bad news� to a superior or a guest can be considered rude or impolite!

Business etiquette varies among countries around the world. Local customs are often deep-rooted in day-to-day business operations while, at the same time, technology and globalization introduce new protocols, thereby changing

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Contents 16

34

20

58 News, Analysis & Events 4 Re:editor’s letter

Global Management 24 Re:Russia

39 Re:technology

44

Fiona Murchie looks at what’s in store this issue.

With the launch of its new website, Re:locate goes truly global.

A tempting, but highly challenging, prospect for overseas companies seeking global growth.

Re:international health

Investment in employee wellbeing is key to a successful overseas posting.

42 Re:awards

Launching the 2013/14 Re:locate Awards.

45

Re:news and analysis

Key industry happenings, personalities and comment.

47

Re:corporate social responsibility

An update on our charity initiative.

Hot topic 6 Re:USA focus

The US business and political climate and its impact on relocation, both inbound and outbound.

OIL AND GAS SPECIAL 16 Re:talent management

FEATURES 28 Re:culture

Negotiating cultural differences in India, plus

preparing Generation Y for international assignments.

32

Re:foreign exchange

34

Re:serviced apartments

Helping your expat staff to manage their currency requirements.

Developments and trends in this key sector for relocation.

40 Re:property

Is the current upturn in the UK residential property market sustainable?

HR and relocation experts are working together to Employee SUpport solve the talent pipeline problem in this booming 48 Re:eldercare global sector.

How employers can best support the growing 20 Re:shale gas

number of relocatees with elderly dependants.

The industry’s international growth, and its impact 52 Re:schooling on relocation.

International schools around the world are 23 Re:health

preparing the next generation of global citizens.

Meeting the healthcare needs of the international 58 Re:higher education

energy sector.

Exploring the growing trend for young people to

study outside their country of citizenship.

relocatemagazine.com | 3

The Team Managing Editor: Fiona Murchie editorial@relocatemagazine.com

For those working to “support global teams,

Design: Gulp Creative hello@gulpcreative.com

being outward-facing is paramount

Sub Editor: Louise Whitson Advertising: Garry Tester and Susana Morss-Davies ads@relocatemagazine.com

”

Address Re:locate Magazine Spray Hill Hastings Road Lamberhurst Kent TN3 8JB Tel: +44 (0)1892 891334

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Re:locate Charity Party, Thursday 28 November

O

ne minute, it is the summer holidays, with news thin on the ground. The next, the horrific events of the Syria crisis are on all the front pages and centre stage at the G20 Summit in St Petersburg, with Britain left out in the cold and President Obama up against similar challenges to Prime Minister Cameron in galvanising support.

Add to this the uncertainty of EU membership, and Britain’s credentials as an outwardfacing nation are called into question.

For those working to support global teams, being outward-facing is paramount, with global growth high on the agenda for most organisations. Understanding global issues is essential to success, and in this issue we have pooled expert opinion from leading foreign and UK correspondents on some of the burning issues, including the business and political scene in Russia and the US, plus the rise of the shale gas industry worldwide.

Our new website will help you stay on top of the international developments that may impact on your business and the demand for international talent.

In the UK, it is good news that official figures confirm the recovery appears stronger than expected, and those on the ground in the mobility sphere have been reporting positive signs for some months. See our property feature. Re:locate has been charting growth and regeneration across Britain, and we welcome insights from our readers over the coming months to highlight relocation hotspots and signs of recovery. Send us your observations and ‘good news’ case studies to share with colleagues via our website.

Fiona Murchie Managing Editor

To celebrate our Gift of Time charity initiatives and fundraising drive (see p45), we will be holding a party on Thursday 28 November.

This will be a great way to thank your team for their efforts and start the Christmas festivities.

To book your tickets, visit relocatemagazine.com If you can offer raffle prizes or need further details, please contact Vanessa McConnell on +44 (0)1892 891334

© 2013. Re:locate is published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein. ISSN 1743-9566.

Coming in the Winter 2013/14 issue of Re:locate magazine Short-Term assignments Latest trends in this increasingly popular assignment type

COUNTRY PROFILE

Latin America – the challenges of rapid growth

Property Update

What 2014 holds in store for the UK residential market

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HOT TOPIC

HEADING for growth?

Testing times for the US economy

The US is currently enjoying a welcome fall in unemployment and strongerthan-anticipated economic data. As President Obama’s Democrats and the rival Republican party embark on two more spending showdowns this autumn, and with some commentators doubting the strength of the recovery, David Sapsted asks whether the improvement can be maintained.

6 | Re:locate | Summer 2013

HOT TOPIC

T

he US economy has somewhat resembled a runaway bus in recent years – nobody has been quite sure where it would be heading next, still less what damage it might inflict on innocent bystanders in the process.

At least now, that bus – not to mention so many of the world economies that invariably comprise its passengers – appears to be heading forwards, not backwards, even if at an uncertain speed.

Ben Bernanke, chairman of the Federal Reserve, expects the “modest” growth reported in the summer to pick up in the last few months of the year. If that happens, the Fed could reduce its quantitative easing programme, which currently entails the purchase of $85 billion of bonds a month to keep down borrowing costs.

The International Monetary Fund has described the underlying condition of the US economy as improving, but says the recovery from recession has so far been “tepid”.

Even so, it added in its most recent assessment that gains on stock markets and in house prices should herald gradually accelerating growth over the next year.

Some signs of that growth are promising, if not spectacular. In the summer, the jobless rate fell to 7.4 per cent, its lowest for four years, although the number of jobs created on a monthly basis was below expectations.

Figures ‘encouraging’ Gordon Charlop, of the New York brokerage firm Rosenblatt Securities, describes the figures as encouraging, though not much more. “The idea that unemployment dropped at all – went below 7.6 per cent – is showing that the trend is going the right way. We’re sort of grinding along here.

We’re not surging,” he says.

Reservations over the seemingly healthy fall in unemployment, which is now far below the eye-watering tally at the height of the financial crisis, stem from the fact that fewer than two-thirds of working-age adults in the US are actually in work, calling into question the underlying strength of the economic recovery.

Additionally, there has been a slowdown in hiring, and the economy is not picking up as quickly as many had hoped, even though the annualised growth rate was upped to 1.7 per cent in the summer. Inflation remains well below the Fed’s 2 per cent target … illustrating a problem that is the exact reverse of the experiences of the many governments around the world who are struggling to bring down stubbornly high inflation.

But there have been more encouraging ‘green shoot’ signs for the Obama administration recently. The US Commerce Department has reported a pick-up in consumer spending, the housing market is on the up, and the pace of growth in the services sector has started to accelerate from a three-year low.

The Young Presidents’ Organization (YPO), a network of more than 20,000 CEOs in more than 120 countries,

describes the economy as relatively stable and growing modestly in its latest Global Pulse Confidence Index for the United States.

In a survey involving more than 700 chief executives in the US, the YPO reported improved business conditions, especially in construction, with just over half of CEOs expecting things to have picked up further by year’s end, and nearly two-thirds confident that sales would be even better by the middle of 2014.

Small companies were noticeably the most bullish and, while the majority of sectors expected an expansion in hiring, production companies remained mostly pessimistic, with only 25 per cent expecting to increase staff levels in the coming year.

Stephen Slifer, YPO Global Pulse economic adviser, says, “With no apparent economic headwinds for the first time in several years and stronger-than-anticipated economic data, YPO respondents have become slightly more optimistic about their business prospects.”

Tough times for emerging economies The survey’s findings in the US were mirrored by growing confidence among CEOs in the economies of the EU and Canada. There was more pessimism among the emerging, market-heavy regions of Africa, Asia, non-EU Europe and Latin America.

With tentative discussions already underway over the possibility of a free trade agreement between the US and EU, studies have suggested that the situation could get even tougher for emerging economies should such a transatlantic deal ever reach fruition, while boosting employment in both America and Europe.

“A transatlantic free trade agreement would be an important tool for increased growth and employment in Europe,” says Aart De Geus, CEO of the Bertelsmann Foundation in Munich, which commissioned a study of the likely impact of such a deal. “Especially the southern Europeans, who have been shaken by crises, would benefit from this to an above-average degree.

“However, social welfare gains that arise for the EU and US should also be an incentive to show a readiness to compromise toward the losers of the agreement in future multilateral negotiations. In this way, the transatlantic free trade agreement could also give fresh impetus to the Doha Development Round, which has come to a stall.”

World’s engine room The inescapable fact remains that the fortunes of so many nations’ economies rest on what happens in the engine room that is the United States. In turn, its economic fortunes can turn, at least in part, on the policies of President Barack Obama – or, rather, on how many of his policies he can implement in the face of querulous Republicans who control the House of Representatives.

relocatemagazine.com | 7

HOT TOPIC

Now in his second and final term, the President has successfully boosted America’s fortunes, investing government cash in infrastructure projects and the likes of scientific research and education.

His ambitions to increase taxes on the wealthiest and reform the healthcare system have been only partially successful at best, and now fresh battles are looming over fiscal policies, following the interim deal in March to cut $85 billion from public spending after a bitter compromise between Democrats and Republicans.

The President and Republicans face two more spending showdowns this autumn, one over the continued funding of federal services and the other over plans to raise the government’s borrowing powers to enable it to keep paying its bills.

Political differences President Obama’s basic message is that, while he has succeeded in improving the economy, future improvements are being thwarted by the Republican majority in the House of Representatives. In a recent speech, he accused his opponents of hurting vulnerable children, farmers, the military, homebuyers, middle-class job seekers, immigrants, and businesses seeking to hire immigrants.

In his State of the Union address earlier this year, the President stated that his aim was to “reignite the true engine of America’s economic growth – a rising, thriving middle class”. He added, “We have cleared away the rubble of crisis, and we can say with renewed confidence that the state of our union is strong.”

For their part, the Republicans accuse the President of only being interested in raising taxes. “He ought to stop threatening to shut down the government unless we raise taxes,” says House of Representatives Speaker John Boehner. “Americans aren’t asking the question, ‘Where are the speeches?’. They’re asking, ‘Where are the jobs?’.”

The question of ‘where are the jobs’ is central to the US economic recovery. Brian Hamilton, chairman of the financial information company Sageworks, based in North Carolina, says that despite the summer increases in employment, there remain doubts that the economy and job growth are where

they should be at this point in the recovery.

“We’re currently 48 months into this period of economic expansion and, historically speaking, we should be heading into a contraction in less than a year,” he says. “Even now, as we’re deep into the recovery period, we haven’t been seeing the consistently strong GDP growth that we’d expect.

“Now, the good news is that private companies, who drive the US economy, are seeing strong financial results.

They’re seeing double-digit sales growth and strong profitmargin expansion.”

Employers cautious But despite the growth, research by Sageworks shows that companies are not consistently hiring as they avoid trying to add overhead costs in an uncertain environment.

Most companies surveyed were planning to maintain, not increase, their employment levels.

Overall, it seems that the Obama administration is gradually getting that runaway bus under control, even though it is still not quite clear exactly where it is heading.

Pundits in Washington – and in virtually every other capital around the world – are just hoping that rival politicians will not drive it over another financial cliff looming on the horizon.

See the USA section of relocatemagazine.com for FOX-ADVERTS-FINAL_Layout 1 06/09/2010 11:55 Page 1 updates and practical advice

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HOT TOPIC

Inbound

&outbound The US relocation scene

In the face of stiff competition, the US is clinging to its position as most frequent destination for international assignments. But where are US organisations doing business, and where are they sending their assignees? Fiona Murchie finds out.

A

s all the major relocation surveys show, the US is still the most frequent destination for international assignments. But, with a worldwide focus on global growth, where are US organisations choosing to do business, and where are they sending their assignees? Are emerging economies, some of which are experiencing tough economic times, proving less attractive than previously?

The World Employment Index, published by Stipenda, a company that supports professional employer organisations (PEO) across the US, provides some useful insights, measuring eight elements that affect the attractiveness of a country as a place for US companies to hire staff.

Singapore performs strongly across most categories, thanks to low taxes, quality of transport and communications infrastructure, and economic and social infrastructure, and the fact that it is one of only a handful of countries to have a free trade agreement with the US. Hong Kong ranks second, followed by Switzerland. Canada – the US’s largest trading partner – comes fourth.

Says Stipenda CEO Solomon Williams, “People often don’t look beyond the cost of labour, but there are many more areas that need to be considered. Industrial relations and the definition of employee and employer rights, for example, are areas that can end up having a dramatic impact on business performance.”

Investing in overseas expansion I asked Debbie Balli, president of SIRVA Global Relocation Services, which international destinations were seeing the most relocation activity by her US-based clients. She told me that companies were investing heavily in international expansion, with high levels of activity continuing in traditional markets like the UK, Switzerland, Singapore and Germany. While China has been attractive for some time, more companies are now expanding into Tier 2 and Tier 3 cities (a trend noted in our Spring 2013 issue), and activity continues both into and out of the other BRIC countries.

US- and Europe-based companies are also showing increased interest in South Africa.

10 | Re:locate | Autumn 2013

Emerging markets are, not surprisingly, a strong focus for activity among SIRVA’s clients, with South America and West Africa assuming increased prominence.

Mike Gorski, VP of global marketing at Brookfield Global Relocation Services, points out that emerging markets are always, by definition, changing. “As BRIC countries become more established, we are seeing new emerging market destinations, including Malaysia, Spain, Indonesia, Argentina, Kazakhstan and Colombia.” He reports some interesting trends. “Spouse/family accompaniment on assignment is trending lower than historical averages.

This disparity may reflect several factors, such as lingering concerns amongst assignees regarding the economy, or an unwillingness to relinquish the stability of a second income, as well as other family, security, or quality-of-life concerns brought by the expansion into a wider array of budding locations.”

Cara Skourtis, VP of corporate knowledge and experience at NuCompass Mobility, confirms the continuing high profile of Central and South America. “In addition to Brazil,” she says, “many employers are exploring, or actively moving employees, in locations that include Mexico, Argentina, Colombia and Venezuela. These offer opportunity, and have their share of challenges. Immigration processes vary widely, and can be challenging to understand and navigate.

In addition, there may be security concerns to address when employees evaluate housing and lifestyle choices.”

IOR Global Services has found that the biggest share of clients’ activity goes to the Asia Pacific region, says Denise Ryan, director of destination services.

For the immigration perspective, I spoke to Andrea Elliott, senior counsel at corporate immigration firm Pro-Link GLOBAL, who told me that the current focus of US relocation activity is the BRICS countries. She notes an increase in assignees being sent to all parts of Africa, including Ghana, Angola, Mozambique, Cameroon, Namibia and South Africa, expansion into Latin America, particularly Argentina and Venezuela, and a resurgence of movement into Australia, which had been less attractive

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HOT TOPIC

following changes to migration laws. Relocations to Europe, particularly Switzerland and Germany, are holding steady.

Ms Elliott adds, “Whilst not considered an emerging market, we are seeing mobility into Tier 3 and Tier 4 cities in China by manufacturing and agricultural giants, which leads one to surmise that the sectors that usually follow these pioneers won’t be far behind.”

On the domestic relocation front, Pro-Link GLOBAL is seeing little activity at present. However, according to SIRVA’s Debbie Balli, the US continues to be a vibrant relocation destination for both domestic and international companies. She explains, “This is a result of enhanced corporate activity, and a reflection of the recovering realestate market. For those relocatees not purchasing a home, relocation activity has intensified across all US geographies, with a trend towards the demographics of these individuals and less on their destinations.”

Mike Gorski adds that, as transferees’ equity stabilises and the property market improves, employees are more open to the idea of relocating. As a result, mobility is on the rise.

Oil and gas boom The growth of the oil and gas industry is resulting in a flurry of relocation activity around the globe (see p17).

AIReS’s 2013 Mobility Trends Survey for the Oil and Gas Industry reveals shifting destination patterns. The US

continues to be the most frequently noted destination, but emerging patterns suggest that other international destinations are jockeying for position. Top non-US destinations include the UK, Panama, the Netherlands, Iraq, Norway and the UAE. Chile, Peru, the Dominican Republic, Vietnam, Brazil, Columbia, India and Angola are all on the ‘emerging’ list.

Says report author Michael Drew, “Subtle changes are beginning to appear as we further analyse assignment types and the destination locations they represent beyond the US. Emerging markets are bringing new names to the relocation industry, along with challenges to ensure smooth transitions and successful assignments.”

Denise Ryan points out that, while Houston is obviously a huge – and growing – oil and gas market, IOR is also providing destination services to very remote parts of North America, such as North and South Dakota and the oil sands of northern Canada, where housing is a real challenge.

Evolving trends What effect are changing business trends, combined with challenging conditions in the global economy, having on the US relocation scene?

NuCompass Mobility’s Cara Skourtis notes an increasing use of personalised assignment programmes. “Employers are evaluating the project or business need driving the

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HOT TOPIC

requirement for an assignment, and structuring or customising programmes to achieve cost-effective support to the assignee. Within an organisation, different programmes might be implemented, depending on the business need and the budget of the business segment.”

Some employers, she says, are also opting for “less-robust” programmes in cases where the employee is gaining “résumé benefit” (depth of experience and credibility). “The idea is that the employee is building his or her skillset, and can therefore absorb some of the lifestyle changes associated with a cross-border assignment. Where the majority of the benefit is to the business – knowledge transfer from a senior executive, for example – more traditional expat programmes are often in place.”

Employers are also making more use of shorter assignments or extended or recurring business travel, to reduce tax liabilities.

Cost is key for corporates Joseph Morabito, founder and CEO of Paragon Global Resources, points out that the US relocation scene reflects trends that have been evident in American business for more than a decade. Following mergers and acquisitions, of the

2,000 largest firms in the world, the number of companies headquartered in the US has fallen from about 700 to about 550. An increase in offshoring and right-sizing is leading to smaller, leaner organisations. This, combined with the ability to work from home, which more US companies are not only permitting but promoting, is resulting in less potential annual domestic relocation volume.

There are some growth opportunities for US relocation companies related to international relocation volume, as more American companies expand their operations overseas, though these are tempered by cost.

And cost continues to be the biggest issue for corporate customers. Says Joseph Morabito, “Quality, related to services provided by well-positioned relocation companies, is a given. Since service nuances are harder to understand and quantify, it is often only the numbers, differentiated by small percentages, that become the determining factor in selecting a relocation supplier.”

Watch this space …

Will the US maintain its position as top relocation destination during 2014 and beyond? Via both the magazine and website, Re:locate will keep you informed.

See the USA section of relocatemagazine.com for updates and practical advice

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OIL AND GAS

FUelling the talent pipeline energising the oil and gas sector

Despite volatile commodity prices, recent recession and social unrest, the oil and gas sector is booming worldwide.

Global mobility and HR specialists are playing a key role in supporting energy companies to overcome the challenges inherent in both new frontiers and familiar destinations.

Ruth Holmes reports.

OIL AND GAS

I

n a sometimes-uncertain world, one of the only nearcertainties is the global appetite for energy. According to the US Energy Information Administration’s International Energy Outlook 2013, world energy consumption is set to grow by 56 per cent between 2010 and 2040, fuelled by global population growth and increased economic activity from emerging economies, most notably China and India.

Ever-growing energy demands are creating opportunities for mobile workers and their employers in both new and traditional destinations. Longer-established oil and gas provinces like the UK Continental Shelf (UKCS), which centres primarily on British waters in the North Sea, are receiving large investments to maintain and enhance the efficiency of installations. This year, UKCS is to benefit from a record £13.5 billion investment, according to trade body Oil & Gas UK. Further afield, in the Middle East, the Hays 2013 Global Oil and Gas Salary Guide observes “a flurry of hiring as a range of mega-projects kick off ” in Iraq.

Extraction of ‘non-conventional’ power sources like shale gas and oil are also developing fast, and in new centres. While the likes of Houston, Aberdeen and Perth are still important, says the guide, the destination board for mobile oil workers in both onshore and offshore roles is rapidly expanding.

South Africa, Ghana, Liberia, Sierra Leone, the Russian Arctic circle and Greenland feature among the newer oil and gas-producing regions with technically recoverable shale gas and oil, or that are opening new fields.

Together, these locations are all providing fresh challenges for HR and global mobility teams as they work to support corporate strategy and provide the highly skilled technical talent required to service rising energy needs responsibly and cost-effectively.

New horizons?

These major developments globally are having a keen impact on the oil and gas talent pipeline. In the UK alone, data from Oil & Gas UK’s 2013 UK Offshore Continental Shelf Workforce Demographics Report shows a significant increase in workers travelling offshore in 2012 compared to previous years, with 56,982 people posted offshore. This is “the highest number since 2006, when data were first analysed, and nearly a 9 per cent increase from 2011, when 52,300 employees travelled offshore”.

Commenting, Dr Alix Thom, employment and skills issues manager at Oil & Gas UK, said, “The UK oil and gas industry is growing steadily, with record investment in new developments forecast this year, mounting interest in exploring for new reserves, and fields expected to produce into the 2040s. The volume of anticipated activity shows that the UK oil and gas sector is an exciting and promising place to build a career.”

Around 10,000 of the UK’s offshore workers come from overseas, principally Norway, the Netherlands, the US, Poland,

Ireland and Denmark, although most nations are represented.

UK nationals also comprise a significant, and rising, proportion of personnel on the UKCS, numbering 47,192 in 2012 – up 8.8 per cent from 2006, according to the report.

“The skills, expertise and technology developed on the UKCS are highly sought after by other oil and gas provinces around the world; competition for skills is truly global,” notes the UK Offshore Continental Shelf Workforce Demographics Report. Indeed, many of the new energy-producing regions are attracting highly-skilled and highly-rewarded expat workers from the UK to plug skills gaps – perhaps explaining the UK’s more persistent skills gap for mid-career roles in both off- and onshore roles, such as design engineering, subsea and drilling engineering, and geosciences.

Vic Okezie, director of Oilgashr.com, says, “From my experience, and following extensive conversations with senior HR leaders in the oil and gas industry, the sector has consistently grappled with talent attraction and retention.

It is unique, with very specialised skills and operations in diverse and oftentimes dangerous locations, whilst witnessing the global demand for oil growing at a rate of over 30 per cent between 2010 and 2035.”

Compensation and benefits The Hays Oil and Gas Global Salary Guide, a comprehensive study based on 25,000 responses from across the world, gives a great insight into how these trends are translating into hiring trends and the average pay and allowances local and expatriate oil and gas workers can expect.

With demand for certain qualified workers in the sector at an all-time high, the pay and benefits awarded to oil and gas workers are generous – and increasingly so. In 2012, base pay rose 8.5 per cent, following a 6 per cent rise in 2011, bringing average annual base pay (covering both local and expat) up to $87,300.

“Where imported salaries are concerned, it is, once again, the frontiers of the industry that are pushing the upper limits of pay,” says the report. “Representing a mix of danger money and hardship allowance in these base salaries, we find Russia’s Arctic exploration driving imported skills [$151,000], and China’s drive on non-conventional skills also pulling in experts on premium rates [$161,400]. Along with Australia [$171,000], the Caribbean hub for oil and gas, Trinidad & Tobago [$168,800], rounds off the top five importers by salary level.”

Iraq, Nigeria, Thailand and Argentina have also seen rates for expat workers grow above trend, in line with local needs. Salaries have increased across all company types, but contractors and personnel involved in equipment manufacture and supply have seen some of the most significant income growth.

Around 65 per cent of respondents receive bonuses and benefits as part of their compensation. Bonuses are the most common element (42.8 per cent of those surveyed receive them), comprising on average 13.8 per cent of the overall

relocatemagazine.com | 17

OIL AND GAS

package. Health plans (26 per cent receive them, and there has been a 12 per cent increase in value on last year), home leave allowance/flights (18.2 per cent and 15 per cent), hardship (10.4 per cent and 19 per cent) and housing (19.2 per cent and 9 per cent) have all grown in value, and form the rest of the top five fastest-increasing benefits.

“As with previous years, Asia remains the region in which more allowances and benefits are paid out, as a percentage of the overall package, than any other region,” observes the report. “The Middle East is not far behind, with Africa and South America next.”

Mobility and HR in partnership Globally, the percentage of oil and gas workers employed overseas rose to 47.4 per cent, from 42.6 per cent in 2012.

Hays is predicting that “with skill shortages as they are, we do not expect it will be long before there are more oil and gas professionals overseas than there are in their own home countries.” AIReS’s 2013 Mobility Trends Survey for the Oil and Gas Industry also observed in the US “a significant up-tick in international long-term assignment activity”.

However, the preference for expats also appears to be tailing off at the margins. One in five respondents stated that they did not employ people on an expat basis, and 8.1 per cent expected levels to fall in the next year as a preference for localisation of some roles takes hold. Further explaining the trends, the AIReS survey also suggests that “short-term assignments continue to be employed for US outbound activity by the oil and gas industry to meet their strategic objectives”.

Today, as well as the perennial cross-sectoral issue of high attrition, the key people challenges are securing people with the right combination of technical skills and personal attributes – including adaptability to ever-more-remote destinations and the ability to communicate well across language and cultural boundaries – and more stringent corporate responsibility and governance codes.

Global immigration specialist Pro-Link GLOBAL is one of the companies working to support the sector as it moves into more diverse and challenging locations. Commenting on the US scene, senior counsel Andrea Elliott said, “The trend appears to be a desire for the oil and gas industries, certainly from an immigration standpoint, to be compliant with regulations. There is much more cohesion between legal, compliance and global mobility overall. The global emphasis on anti-corruption, the UK Bribery Act and the ethiXbase Monitor FCPA Blog publicly outing the transgressors have definitely had a positive impact on the immigration transactions.”

These new complexities have sprung up alongside the opportunities, while the sector is in the spotlight as never before as a potential target for both protestors and terrorists. Getting the right person for the job, and the right package, has never been more important, despite the challenges. Training is therefore also playing a key

role, particularly around leadership. But here, too, there are obstacles, especially around delivery. These can range from training venue change due to riots, strikes due to per diem conflicts, different people participating in two-part sessions, and a significant number of medical events, all of which can disrupt key training programmes.

Speaking at a recent Aperian Global webinar, Talent Development for Challenging Locations, John Elsner, general manager of Logistical Solutions International, said, “I would say that every one of these challenges, in principle, is not uncommon, sadly. Probably the biggest area would be having continuity.”

Webinar co-facilitator Anita Zanchettin, director of global talent for Aperian Global, offered delegates valuable insight from recent projects that offer best practice for talent development in challenging locations. These centred on a joint journey with local and expat workers to create culturally appropriate solutions that address both sets of needs.

“It’s hard to do this, and most companies don’t do this, either because of a lack of time, or a lack of money or will,” remarked John Elsner. “But the truth is that the companies that do that have a much better impact, not only on the information they are gaining from the training sessions but also in developing the long-term relationships and accomplishing the long-term goals.”

Powering ahead Given the complexities at the forefront of this brave new world, HR and global mobility have a vital role to play in securing the talent pipeline and ensuring that global energy needs are met.

Jolene Paterson, business development manager at Crown Relocations, concludes, “The upswing in the North Sea oilfields and the global increase in 2013 in new emerging markets within South America and Africa means that companies will need more than ever to draw on a professionally managed talent mobility programme collaboration.

“Using talent mobility to develop and retain top-tier talent will help companies to stay one step ahead in an industry which is diversifying so quickly.”

See the Global Management section of relocatemagazine.com for updates and practical advice 18 | Re:locate | Autumn 2013

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OIL AND GAS

Shale gas

saint

or

sinner?

Hailing the potential of shale gas to create jobs and reduce energy bills for businesses and consumers, governments around the world are seeking to exploit this valuable resource – while, in some cases, facing vocal opposition. David Sapsted looks at how the shale gas industry is developing across the globe, and considers the impact its growth may have on relocation.

20 | Re:locate | Autumn 2013

OIL AND GAS

S

ome loathe it, some adore it and some even fear it.

Throughout the world, shale gas divides opinion and stirs emotions as no other energy source has done since the arrival of nuclear power.

On one side, for example, there is the implacable opposition of the likes of French President François Hollande. “As long as I am President, there will be no exploration for shale gas in France,” he vowed in a TV interview during the summer.

Yet, just across the Channel, the stance adopted by UK Chancellor George Osborne could scarcely be more different. “I want Britain to be a leader of the shale gas revolution because it has the potential to create thousands of jobs and keep energy bills low for millions of people.”

The enthusiasm displayed by Mr Osborne and many others stems, of course, from the US’s experience. There, in just a few, short years, the shale gas industry has been transformed, thanks to new technologies and drilling techniques. More than 600,000 jobs have been created as the mushrooming industry has generated an estimated $100 billion in additional GDP while dramatically driving down energy bills for households and industry.

By 2015, America – somewhat to its own surprise given the dire energy forecasts of less than a decade ago – will start exporting shale gas. A $20 billion export terminal is under construction in Louisiana, which, ironically, was originally designed to import natural gas for use in the US. It is now estimated that the United States will be selfsufficient in natural gas for the next 100 years, while, as far as shale oil is concerned, Leonardo Maugeri, a former Eni oil company executive and now an associate at Harvard University, reported in the summer that US output could triple to five million barrels a day by 2017.

Meanwhile, West African producers have been complaining about dwindling demand for their own crude as the US becomes less dependent on imported energy.

The question now is how successfully nations such as China, which is estimated to have the world’s greatest shale reserves, Argentina, Britain, Poland and Russia will be able to follow America’s example.

In July, New York-based Hess Corp signed a productionsharing contract with PetroChina, marking the first time the Chinese had entered into a joint agreement to develop a shale oil block. The nation’s efforts at exploring for shale gas are still in their infancy, while shale oil investigation has barely begun.

Other nations, notably France and Germany, have flatly rejected shale gas exploration because of concerns from the powerful environmental lobby over the effects of the hydraulic fracturing technique – fracking – used to extract the gas.

Indeed, even in some US states, notably New York, legislators continue to vote to ban any drilling involving fracking.

Many experts claim the fears that fracking causes water pollution and even earthquakes are vastly overstated, and it

remains to be seen how long some European governments will be able to resist shale gas exploration if their neighbours begin to enjoy even a fraction of the success that the industry in the US is experiencing.

But the environmental lobby in Europe is much stronger than in many other parts of the world. When the UK government gave its approval to the first fracking tests in the Lancashire shale gas fields, Joss Garman, Greenpeace’s senior energy campaigner, described the decision as “very damaging for UK efforts to tackle climate change”.

He added, “There’s absolutely no indication that fracking for shale gas will reduce soaring household energy bills, while scientific studies suggest that this kind of gas could be as polluting as coal. This would also be a major blow for the British renewable energy industry, which would see investment hijacked by a new dash for gas.”

But the British government, with shale gas deposits estimated to be worth £1 trillion in the north of England alone, is determined to press ahead, despite violent protests over the summer at a village in southern England where Cuadrilla – the first UK company to embark on fracking tests – had won approval to drill an oil test well.

Earlier this year, Mr Osborne announced what he described as the world’s “most generous” tax regime for shale gas companies, proposing cutting tax on income from wells from 62 per cent to 30 per cent. He said the government was determined to unlock the “huge potential” that shale gas offered.

However, a problem for any country seeking to exploit its shale reserves is where to obtain the necessary technical expertise. At present, American and other multinational oil companies are busy despatching staff around the globe and bolstering their own workforces with experts in fields ranging from seismology to construction, engineering to drilling.

Sudhir Vyas, economic relations secretary at the Ministry for External Affairs in New Delhi, recently urged India to follow China’s example by sending students to the US. “There has been an influx of Chinese graduate students sponsored by their government who make themselves available as research and teaching assistants on a gratis basis to professors in the US universities, especially the top three institutions in shale gas, namely the University of Oklahoma, Stanford University and Texas A&M,” Mr Vyas said in a letter to the petroleum and natural gas ministry.

OPITO, the oil and gas industry’s training body in the UK, has already identified the shortage of skilled engineers as the biggest challenge facing the industry in Britain, where the Institution of Mechanical Engineers believes that shale gas could create 4,200 jobs a year over the first decade of the drilling programme.

The 2013 survey of worldwide contracting opportunities, published by US oil company Hays and Oil & Gas Jobsearch, found that the biggest demand was for operators and

relocatemagazine.com | 21

OIL AND GAS

technicians, because of the growing number of new oil and gas facilities being built worldwide.

About 40 per cent of the companies surveyed expected to hire more contractors than they did last year in an industry where a high proportion of the workforce is working on temporary or contract assignments. The survey said many firms favoured contract staff over permanent workers because of the volatile global economy.

And it will be jobs that will win over a sceptical public in Europe to the benefits of shale, according to a survey of industry professionals by Rigzone, a leading worldwide online source for the oil and gas business.

While some 70 per cent of almost 200 respondents to the survey said the British government was right to offer cash incentives to communities where fracking was planned, 51 per cent still did not believe this would be enough to win over public opinion. That would depend on education and, more importantly, jobs, they said.

“In the US, shale gas extraction has helped stimulate a low-cost energy boom that has seen the cost of natural gas effectively drop by 50 per cent since 2007,” said Dominic Simpson, head of sales of Rigzone in Europe. “For the UK to reap a shale gas dividend, it is clear more will need to be done to win the public debate and ensure exploration

companies pursue the sizeable onshore market opportunity.”

Job creation is not, of course, only at the sharp end of the industry: a whole infrastructure is needed to support it. Earlier this year, in its report on shale gas reserves worldwide, the US Department of Energy predicted that Australia’s extensive reserves would only be developed at a “moderate pace” because the nation’s shale oil and gas resources do not as yet have the advanced production infrastructure that has underwritten the American boom.

In the US itself, that boom has created a huge demand throughout the salary scales – from senior technical management to the revelation in August that Texas was short of 2,000 oilfield truck drivers. But for all the jobs it has created, and for all the domestic heating bills it has slashed, shale gas still raises temperatures, even in the US, where there is little doubt that a small number of wells have gone bad and contaminated local water supplies.

“It’s a big issue for the industry,” says John Hofmeister, former president of Shell Oil in the US and author of Why We Hate Oil Companies. “I have called for greater transparency. That is the only way to have an honest conversation with the public.”

Until that honest conversation takes place, shale gas seems bound to continue to divide opinion worldwide.

See the Global Management section of relocatemagazine.com for updates and practical advice

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OIL AND GAS

Oil’s well

Meeting the healthcare needs of the energy sector Those working in the international oil and gas sector often face the rigours of remote locations and inhospitable climates, making tailored health insurance an essential part of their benefits packages, says Louise Whitson.

W

hile companies in some other sectors are cutting costs by reducing the benefits they offer to employees, those in the booming oil and gas industry are using benefits packages as a recruitment and retention tool in this very specialist field, where competition for top talent is fierce.

In many countries, healthcare cover is considered as important a component of a benefits package as a company pension, says Paul Winstanley, head of global corporate at Bupa International. This, coupled with the fact that, more often than not, standard international private medical insurance (IPMI) policies fail to meet the specific needs of expatriates working in the oil and gas sector, led the company to pioneer specialist medical insurance for the industry, which it introduced in 1991.

Paul Winstanley explains, “Working in the oil and gas sector poses unique challenges for employers and employees.

From being posted to remote locations with extreme climates to risking exposure to hazardous chemicals, companies need to protect their workers against a range of health risks that aren’t common in other industries. As an employer, you want peace of mind that your employees’ health is protected, whether they contract a work-related illness or have an accident on site. A tailored health insurance policy allows employees to carry out the job in hand, safe in the knowledge that they have cover designed specifically for their needs.”

Specialist provision growing As the sector continues to expand worldwide, so too does the number of health insurance policies designed for its workers.

In August, InterGlobal introduced a new international medical insurance plan designed for oil and gas industry needs in Asia. Initially available only in Singapore, it will eventually be rolled out across the continent.

As Alistair Dickman, chief executive of InterGlobal Singapore, points out, the country is an important centre for the oil and gas industry in Asia, with thousands of people involved in onshore and offshore production. “They need top-quality, affordable medical insurance matched exactly to their working lives,” he says. “Many work offshore or

travel extensively to remote locations. There are also a high number of contractors in the industry, which means that people need to be able to access quality cover at an affordable premium without joining an employer’s scheme.”

Earlier this year, Cigna Global Health Benefits Europe launched a range of Energy Plans targeted at overseas rig or platform workers in the oil and gas market, which are available to groups (defined as more than two). Says Mark Coleman, regional sales director for Europe, “We may consider providing cover for contractors after review of an employer’s circumstances and the proposed eligibility criteria, and subject to the policy terms and conditions. It is a requirement that any eligible and approved contractor is enrolled under the employer’s group plan, with any premium payments being paid through the employer.”

Mr Coleman points out that the availability of different levels of cover, which most providers of specialist oil and gas plans offer, makes it possible for companies to select the coverage that best suits the needs of their employees.

This helps to control the employer’s costs and limit the employee’s out-of-pocket medical expenses.

When choosing a policy, he advises, companies should look for a plan that offers end-to-end medical and evacuation coverage for employees in remote locations.

Bupa International is seeing an increasing number of companies set up plans that include family members, particularly for more senior employees. Whether or not to cover family members often depends on organisations’ international mobility policies, which vary widely across the oil and gas industry.

But insurance is not the whole solution. Paul Winstanley says, “To provide a real benefit, a health insurance plan should ideally be just one part of an organisation’s broader efforts to engage employees with their health. Employees should be encouraged to live a positive lifestyle and take preventative measures to keep themselves in good health.”

He concludes, “Done well, educating and encouraging your workforce to look after their own wellbeing, both inside and outside the workplace, will make a real difference to them – and to your business’s bottom line.”

See the Health section of relocatemagazine.com for updates and practical advice

relocatemagazine.com | 23

Russia

braving the bear

Thanks to its abundant oil and natural gas resources, Russia is a tempting prospect for foreign companies seeking global growth. However, while the rewards can be huge, no organisation doing business there can afford to underestimate the challenges posed by the country’s volatile political climate and notoriously corrupt business environment, says Ray Furlong, who presents The Newsroom on the BBC World Service, and has reported extensively from Russia and Eastern Europe.

O

il and gas have powered Russia’s recovery from the economic chaos that followed the Soviet collapse in the 1990s – making fortunes for some, creating a new middle class of avid consumers, and restoring national pride. They were the making of Vladimir Putin, enabling him to preside over what was, for many, unparalleled prosperity. As the money gushed in, so did the votes.

But Russia’s energy boom also served to hide deep-rooted problems and create new ones. Russia is now living with declining economic growth, falling export revenues, and a harsh crackdown on an embittered political opposition.

This is not because the resources have run out. Oil and natural gas still provide half Russia’s national revenues.

This summer, oil output hit new post-Soviet records. But it is getting harder to access. The stocks in the old western Siberian oilfields are diminishing. New oil deposits require hi-tech investment, which Russia is seeking from abroad.

Crucially, exports have fallen. This is partly a function of the euro crisis and global economic turmoil since 2008.

Demand for Russia’s raw materials has taken a hit, as the factories of Europe and China slow down. Russia’s largest oil terminal, the port of Primorsk, just north of St Petersburg on the Baltic, has been uncharacteristically quiet this summer. Fewer barrels of oil passed through it than at any time since the crisis began.

Gas exports have been recovering, after being hit not only by the broader economic climate but also by efforts by formerly state-owned energy company Gazprom’s main export market – Europe – to diversify into liquefied natural gas (LNG) or coal. America’s shale gas revolution might also leave many in Gazprom with furrowed brows, even though the chief executive denies it.

24 | Re:locate | Autumn 2013

But perhaps more damaging is the unhealthy relationship between Russia’s oil and gas industry and its politics.

Gazprom has been described as the extended arm of Russia’s foreign policy – cutting supply to entire countries, ostensibly over pricing issues, but in reality as a means of exerting political influence.

Likewise, Rosneft, which describes itself as the biggest publicly-listed oil company in the world, is seen as an awkward partner because of the Kremlin bear hug. “Rosneft is not run as a corporation. It is run as a government cash machine,” says California-based hedge fund manager Tim Gramatovich.

But Rosneft’s story is instructive, because it reveals that the huge opportunities often outweigh these concerns. In March, it acquired TNK-BP, the Russian arm of British Petroleum (BP), ending a long and painful process for BP that saw its Moscow offices raided by black-clad special police forces.

BP set up TNK-BP with a group of Russian oligarchs back in 2003, lured by the prospect of huge profits. But as the relationship with the Russian partners soured, the tax inspectors arrived and started finding problems.

Was this a coincidence or an unholy alliance of energy magnates and the Russian state? If the latter, there’s plenty of form. The same tactics were famously employed to send Mikhail Khodorkovsky, then Russia’s richest man, to Siberia for financial crimes after he crossed Vladimir Putin in 2003 – and, this summer, against Russia’s most important opposition leader, Alexei Navalny.

In BP’s case, the tax issues were followed by obstruction of visas for its foreign staff. At one point, CEO Bob Dudley was even forced to leave Russia.

It sounds off-putting. If it happened to BP, it could happen to any other foreign business investing in Russia.

RUSSIA

And yet … BP invested $8 billion in the joint venture, but received dividends of $19 billion. TNK-BP came to account for around 25 per cent of all BP production.

Back in March, BP breathed a heavy sigh of relief when it sold the subsidiary. But it sold it as part of a new tie-up with Rosneft which will see it exploring the Arctic North.

“BP is moving on to the next stage of its business in Russia,” said Bob Dudley at the time. “We look forward to working closely with Rosneft and together creating opportunities to create value for our companies.”

So how instructive is all this? On one level, it seems to vindicate those who say: Russia is full of opportunities if you’ve got the guts. Rosneft also signed a $500 million deal with ExxonMobil in 2011 to develop the Bazhenov oilfield.

Philip Poole, head of strategy at HSBC Asset Management, told The Financial Times that Russia was a good bet because it was “the cheapest way to buy into the oil and gas story”.

But experiences like BP’s have also surely contributed to other investors being extremely wary – or simply pulling out.

Russia has witnessed huge capital outflows – $54 billion in 2012. And the success of the energy sector has masked other problems, which surely contribute to this.

State-owned companies control half the economy, according to some estimates. Russia’s Micex index is the worst-performing stock market of the BRICS, with low price-to-earnings ratios reflecting a high perceived risk of investing. There are particular concerns around corporate

governance – specifically transparency on dividend payments or respecting minority shareholder interests. TNK-BP was again a case in point – Rosneft refused to buy out minorities holding 5 per cent of the stock remaining after the deal with BP, and then said it would pay them no dividends either.

Transparency International ranks Russia 133rd out of 177 countries in its global corruption index, and even the Prime Minister, Dmitri Medvedev, has said $330 billion vanishes from government contracts every year.

Fears over the current political clampdown exacerbate these concerns. When Vladimir Putin was elected President for a third term last year, the vote was condemned by international monitors. “The point of elections is that the outcome should be uncertain,” said Tonino Picula, coordinator of the Organization for Security and Cooperation in Europe monitor mission. “This was not the case in Russia. There was no real competition, and abuse of government resources ensured that the ultimate winner of the election was never in doubt.”

The huge street protests that followed were impressive, but petered out. Much has been made of the idea that the protesters were a new middle class, emancipated by the oil and gas wealth of recent years. But equally, Putin remains popular with many in Russia who remember the economic chaos of the Yeltsin years.

Smaller protests since then have been brutally repressed, with jail terms for those arrested. New laws tightened the

RUSSIA

rules on holding demonstrations, introduced higher fines for breaking them, and branded non-governmental organisations as ‘foreign agents’ if they received any funding from abroad.

The trial of Alexei Navalny, a fiery anti-corruption blogger who became the biggest draw at the street protests and is now arguably Russia’s most important opposition figure, has only added to the gloom. When he was found guilty on embezzlement charges in July, it was widely perceived as not only political – but also economically damaging.

“Stocks will fall, capital will leave. There won’t be any other articles in the press for a year. Our government takes one step forward and two steps backward. Is anyone in the Duma thinking?” tweeted billionaire brewer and financier Oleg Tinkov.

There has also been political infighting at the highest levels. This year, respected liberal economist Sergei Guriev decided to flee the country after being interrogated over the evidence he gave in the Khodorkovsky case.

Guriev is an establishment insider, close to Prime Minister Medvedev, yet says he doesn’t feel safe in Russia.

Vladimir Putin told journalists after a summit with EU leaders that Guriev was “free to return” and in no danger.

But three ministers close to Medvedev have been sacked in recent months, along with other Medvedev appointees, in what some observers describe as a ‘turf war’ – Medvedev has spoken of possibly running for President in 2018.

This has inevitably spilled over into the business world. Former Kremlin adviser Gleb Pavlovsky has said businessmen close to Medvedev are experiencing difficulties.

As a foreign businessperson, you have to ask: do my Russian partners have the ‘right’ or ‘wrong’ political connections?

Russia’s opaque business environment has alsocomplicated its overseas relations. It’s not only the Ed Snowden issue

that has loosened ties with Washington – trust was already eroded by the Magnitsky affair.

Bill Browder was, a decade ago, one of the most successful investors in Russia – until he started leaking examples of corruption to Western journalists. There followed the now familiar pattern of harassment from tax authorities, raids, computers confiscated, and so on. But this time something much worse happened. A young lawyer working for Browder, Sergei Magnitsky, was arrested, beaten, and left to die in his cell.

It’s not clear whether the additional brutality in this case was intentional or not. But it spurred Browder to launch an intense lobbying campaign, resulting in the Magnitsky Act being passed by Congress – introducing sanctions against named Russian officials allegedly involved in Magnitsky’s killing.

The Kremlin responded by banning US couples from adopting children from Russian orphanages, and there’s been a bitter war of words on the subject ever since. In July, the affair reached new levels of absurdity when Magnitsky was posthumously tried and found guilty of tax fraud – as was Bill Browder, who was tried in absentia. Interpol has rejected two petitions by Russia to have him put an international ‘wanted’ list.

Not surprisingly, Browder has no intention of returning to Russia – let alone doing business there again. At one point, his company was managing investment worth $4 billion in Russia, much of it in the energy sector. He now believes the energy boom which made Putin also contains the seeds of his doom.

“There’s no reason why 141 million Russians should tolerate the 1,000 Russians who are stealing all the money from the country. Eventually that’s got to break, and I think it breaks when the oil price starts coming down,” he says.

Supporting assignees in Russia’s oil and gas sector Irina Yakimenko and Marina Semenova, of Moscow-based Intermark Relocation, consider how overseas companies can best support assignees working in Russia’s oil and gas sector.

Operating in Moscow and 30 other locations in Russia, we at Intermark Relocation look at the foreign investment climate from the inside. We see oil and gas exploration and joint venture projects underway, and oil companies relocating record numbers of their foreign staff into Russia for various assignments. Therefore, it is clear, from our perspective, that international oil companies have overcome the fears that followed the TNK-BP crisis.

In a way, this is one of the factors that continually drives up Moscow housing rental prices: high demand mixed with the generous compensation and benefits packages with which oil companies typically provide their employees.

Housing supply in Moscow is historically quite scarce; though the city seems huge, the majority of expatriates live in particular areas that account for less than 5 per cent of the city. So when several oil companies relocate even 20 to 30 people a month, that already creates a shortage

26 | Re:locate | Autumn 2013

of suitable properties, and consequently prices increase.

The HR policies of oil and gas majors, even during recession, have put the security and comfort of their employees above cost concerns. They very rarely cut relocation packages, and, as a rule, provide extensive look-see, home-finding, settling-in and tenancy management support. Health and safety requirements are extremely important, and companies demand of their relocation suppliers extensive expertise and resources to comply with policies and expectations.

One particular service which interests oil and gas majors more than any other type of company is cultural training.

This is because most international oil and gas majors form joint ventures with Russian oil companies, and the expatriates working in them are exposed to Soviet-style business culture. That often makes the communication and decision-making process very complicated, and knowing what to expect is often the key to success.

Re:locate’s popular international careers website now has a brand new look.

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CULTURE

Catch the

coach Despite its present economic woes, India continues to attract investment from around the world.

Ranjini Manian, founder and CEO of destination services and cross-cultural training company Global Adjustments Services and author of Doing Business in India for Dummies, explains some of the cultural differences which need to be negotiated when doing business with, or in, this huge country.

W

hether we’re talking about the euphoria of the India ‘shining story’ phase not so long ago, or the current lowered confidence due to the continuing fall of the rupee against the dollar coupled with the uncertainty of imminent elections, a wait-and-see mode has never worked with India.

The country of over a billion consumers and workforce continues to be in boardroom plans. In fact, the current exchange rate enhances cost arbitrage, bringing even more businesses to the country.

As you come to do business with, or in, India, here are a few cultural nuances to be aware of.

Encourage independence with goal setting

One size doesn’t fit all

Yes, it is possible, and it is the success mantra of offshoring to India. But you cannot do it without visiting your India team at least once in person. Face time and relationship building are key to succeeding.

Once you have made a visit, you can manage via videoconferencing or calls, but regular contact with your team, checking day-to-day details in a way that you might not do in the West, is often essential to ensure that deadlines are met and quality service delivered.

Figure out region-wise strategies, as a general one won’t work for the whole country. India is made up of 28 states, and a 29th, Telangana, is waiting in the wings.

State taxes, linguistic barriers and local governments could impact the strategy you come with. Try it in one state, fine tune, succeed, then advance.

The northern states can be aggressive, and southern ones almost provincial. The east resembles the south, and the west is more like the north overall. When you hire your teams, too, knowing intra-India cultural nuances will help.

Communicate in ‘In-glish’ The language of business is English, but often the communication style is Indian; that’s why it’s worth remembering the word ‘In-glish’. For instance, criticism has to be roundabout: “You are usually good as a team member, but this particular report does not meet the required standard”.

The person has to be allowed to save face, even if the job wasn’t up to standard. Personal and professional lines blur in India. The boss is seen as the father figure, the client is part of the family, and even a vendor is a friend. The outcome of business is less important than the relationship itself.

28 | Re:locate | Autumn 2013

The Indian education system discourages questions. As a result, your team may try to figure things out among themselves, rather than risk sounding stupid by asking you and losing face. The reverse also happens, where, thanks to the patriarch factor inherent in a boss’s role, you end up being expected to micromanage.

Teach your Indian colleagues goal setting, and, once you have shown direction, empower them to perform alongside, showing them the bigger picture.

Managing remotely

Goodwill needs goodwill back Indians will go out of their way to welcome you, and hospitality is a way of life here. Reciprocating it will go a long way. A French company which took over an Indian one sent a top official, Olivier Giffard, on a visit to Delhi. The Indian company took great pains over the visit, getting a car and driver to greet him, hosting a dinner on his arrival and so on.

So, when Prabhu Kamath, the Indian firm’s finance manager, went on his first visit to the Paris headquarters, Olivier Giffard picked him up from the airport himself and helped him to find vegetarian food. This has stood the merger in good stead and made the change management smoother. www.culturama.in is a gateway to Indian culture which explains monthly events in India to expatriates. It is an ideal source of further insights into the cultural nuances of doing business in India.

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relocatemagazine.com | 29

a s ’ t a Wh tcard? pos

CULTURE

from their very different re a ts a xp e g Today’s youn ey view and ay in which th w e th in rs o es are to be predecess essful outcom cc su If . d rl o ew atriation and engage with th customise exp to l tia n e ss e s, says achieved, it is s to their need e m m ra g ro p ich repatriation Global LT, wh d se a -b S U f o rld. gard, around the wo rt o Mary Beaure p p su e g a ral and langu provides cultu

A

hhh, the old days! The year was 1968 and I was preparing for my first year at a local university in my US hometown. It was an exciting, pivotal time for any young person, but my excitement increased, and my life changed, when an invitation came from a family for whom I had worked for years. They were embarking on a three-year corporate assignment to Switzerland and invited me along to continue my role as mother’s helper to their six children! Mr Barney, an automobile executive, was given approximately one month to ready himself and his family for this adventure.

Mobility management? Cultural training? Expatriate preparation? Third Culture Kids? These terms barely existed in those days, but off we went, ready for anything.

Once I had the opportunity to live and ‘work’ in Switzerland, I was hooked on culture and language for life.

I became a high-school foreign-language teacher and taught French to adults for business purposes in my spare time.

Fast forward 30 years, and I found myself absorbing everything I could from intercultural pioneers like Hall, Trompenaars, Hofstede and Renwick. I was assigned my first intercultural training, assisting a country-specific expert preparing a US family for their new life in France. It was my exciting task to assist the children in this transition. Through the use of food, activities, music, and discussion, I advised them on, among other things, efforts to keep in touch with their friends and family back in the States. We had a great little book which suggested sending home-made postcards at various intervals to classmates and teachers to keep connected.

Digital natives About a month ago, when I recounted that experience to a ten-year-old girl who was prepping for her second expatriation as a TCK (Third Culture Kid), she looked up from her iPad and said, “What’s a postcard?”

It’s no news to anyone from the 1960s that we have surely entered the future and are interacting with people, born

30 | Re:locate | Autumn 2013

Preparing Generation Y for international assignments

between 1980 and 2000, who view and engage with the world in a very new and unique way. Today, these people, labelled Generation Y or Millennials, have almost everything at their fingertips, and manage it all at lightning speed. They are connected through Skype, Facebook, Twitter, Instagram, smartphones and, by the time this article is published, possibly another form of social media with which I will be unfamiliar.

How have these digital natives changed the way we train and counsel them for living and working in a new culture?

How are they different from, and how are they the same as, the generations of travellers before them?

No, trainers don’t recommend postcards, or worry about long-distance phone bills any more, and there is certainly less communication-isolation for most expats. Today, we encourage Skype, and suggest that sojourners create a blog or a family website where friends and relatives can follow them in their new culture. Programme content has evolved too, from culture-generic awareness presentations to as many as two or three days of adaptability inventories, personal adjustment strategies, target culture facts, and business role-play. But does one size ever fit all?

Generation Pu? Generational differences evolve through social and political change. Not every culture’s Generation Y will have the same needs, characteristics or even the same name, as explained by international HR expert Jacque Vilet. In her article The Gen Y Workforce: What Causes Differences Around the Globe (TLNT, April 2013), she says, “Beginning in 1983, the first truly post-Soviet generation to enter the workforce under the presidency of Vladimir Putin was the so-called ‘Generation Pu’ … Russia’s Gen Y.” The reactions and the attitudes of this group, shaped under Putin’s leadership, nurtured a more nationalistic, decisive workforce.

CULTURE

Patrick McAloon, an intercultural trainer and senior lecturer in Chinese language and culture at Ohio State University, says, “The Chinese people do not divide generations into Gen X and Gen Y, because the pace of change in China is so fast. They assign generational differences based on the decade of birth and its placement before or after the economic boom and reform.” He observes that members of our subject target age group were born during China’s one-child policy.

“They are the precious jewels of their parents and both sets of grandparents, raised to be more self-confident, self-assured, and consequently less group-oriented than their ancestors.”

They are also much less frugal than their parents, who, in keeping with a strong Chinese value based in Confucianism, were famous for saving. Money is available to this younger group for clothes, electronics and dating!

Born in China in the 1990s, Crystal Xia, a Chinese student in the US, adds credence to this observation. “We enjoy the freedom of the internet, communicating with native speakers, and are not as willing to sacrifice all of our time for work and fulfilment of family obligations.” She says coming to English-speaking countries has a dual advantage: language acquisition, and avoidance of extreme competition in Chinese universities. Insights like these are golden to receptive cultural trainers, who are always on the lookout for shifts in cultures, identifying new trends and attitudes.

Similar reversals of old stereotypes are evident in Gen Ys from Brazil and Mexico. Ricardo Nùñez, an intercultural trainer for over 15 years, notes that the Mexicans he prepares for expatriation are much more open to taking risks and making decisions on their own. They do not use the US as the ultimate benchmark, as in the past, when it comes to business and leadership. They want to know more about how Asians and Europeans do business and respond to challenges. Nùñez comments, “Actually, the lesser-known culture is the one Mexicans want to understand, as this is status-driven, and valuable when the corporate traveller returns home and can be considered expert in that culture.”

Brazilians, too, share some of these characteristics, plus a drive to be fluent in English, but often have the additional social goal of maintaining the growth of the new economy, a departure from the more elitist view of their predecessors.

Is there an app for that?

Yes, there are multiple differences in Gen Ys across the globe, but also several commonalities. They see the world, and sometimes the corporation, without boundaries; they seek, and expect, multiple international assignments; and they have a sense of immediacy. Their lifetime, instant access to almost every type of information and knowledge feeds their need for speed. The web abounds with great sites on culture-specific dos and don’ts, as well as expat forums and lessons learned, so our tech-savvy Gen Y trainees often feel more sophisticated and knowledgeable about the target destination than those in the past. Since time is of the essence in their world, they request shortened programmes

and, in mid-programme, respond to interruptions such as emails, texts or phone calls. They are multitaskers! They are also more visual and kinaesthetic learners, says Peter Reilly, of the English Teaching Forum, so static, tightly structured, trainer-dominated programmes do not work.

Mary Alice O’Brien-Mecke, a former expat spouse and parent of a TCK, trains individuals and families from all over the world for both expatriation and repatriation. Her programmes include the important cultural value contrasts, historical, political and economic impacts on culture, as well as daily life details and social and business orientations.

She says, “Demand for up-to-date information, creatively presented, from a myriad of perspectives, in an interactive format, in real time, is a tall order, but it can be and is being done. Customisation is the key.”

Here are some recommendations from Mary Beauregard and other highly experienced and seasoned Global LT trainers for producing effective, customised expatriate programmes for every generation.

1. Know your audience – Verbal needs assessments completed via Skype or phone are more immediate, detailed, personal, and productive.

2. Employ self-reflection or assessment tools – Expats must learn about their own cultural conditioning and where their strengths and weaknesses lie in order to anticipate appropriate adjustment.

3. Include guest experts – For optimal engagement and learning, a variety of perspectives, styles, and target-country expertise is critical.

4. Put family first – Whether an expat’s family joins him/her on extended assignment or stays behind, the primary focus should be on preparing the family for enhanced communication and redefined roles, identity and relationships.

5. Address repatriation – It is never too early to discuss the return home and assist in formulating a plan.

6. Provide follow-up or coaching – Trainers and trainees can form a strong bond. The opportunity to continue the connection and reinforce skills adds value to the traveller and the corporation.

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relocatemagazine.com | 31

FOREIGN EXCHANGE

currency needs Helping your expat staff to manage them

Dealing with currency matters is an essential, but often overlooked, aspect of any international assignment, and an area in which many assignees will need advice. David Johnson, director of currency specialist Halo Financial, examines the issues and looks at some of the services that are available to help.

H

elping your staff to relocate to an overseas role and providing them with the help and support they need when they are in situ is never a straightforward process. Each assignee has a unique set of priorities and a list of wants and needs set by their personal circumstances and their financial situation, as well as by their seniority within the business and the variables within their relocation package.

Some of these factors have a limited scope for variability, and that makes the HR department’s life a little easier. Some, like their foreign exchange needs, are about as variable as you can get.

Largely, an assignee’s currency needs are going to fall under ‘getting there’, ‘living there’ and ‘returning’ categories of the assignment. That sounds simple enough, doesn’t it, but there are variations within those themes as well.

Getting there This is about moving your assignee’s life to the new location, getting their family there as well, perhaps, and ensuring their personal currency arrangements are as hassle-free and cost-effective as possible.

That may involve lump-sum transfers or just enough for living and settling-in expenses, but the sums are often far larger than the sort of money people take for a holiday, so the costs of being hit by high-street bank ‘tourist’ exchange rates are likely to be significant. Good timing and the use of a specialist currency broker would benefit all assignees at this stage.

It is not uncommon for the savings to be 5 and 6 per cent between bank and broker exchange rates, so it is worthwhile for your assignees to forge a relationship with a currency specialist before embarking on the assignment, because they are almost bound to have ongoing requirements.

32 | Re:locate | Autumn 2013

Living there This, with the continuing associated currency needs, will vary enormously from person to person. If the assignee rents out their property while they are away, there may be inbound or outbound cross-border payments on a monthly basis, mortgage payments back to the UK, or rental payments coming out.

That will also be influenced by whether your company makes salary payments to its overseas staff in local currency, only in the UK, or split in some predetermined arrangement.

Each company will manage that in a different way. It is often helpful to the staff member if they can take a livingexpenses portion of their salary in local currency and have the balance sent to their UK bank account, to cover housing and maintenance expenses back home.

This is especially true if they have a property in the UK with a mortgage, are keeping their family in the UK and living away part time, or perhaps have child maintenance arrangements to accommodate.

Of course, your assignee may have a spouse or partner who has requirements too, and whilst that isn’t strictly your company’s responsibility, I am sure it goes without saying that peace of mind for your overseas staff is of paramount importance if their assignment is to be productive.

These monthly requirements can be managed in a number of ways. There is no ‘best practice’ suggestion here because, once again, the assignee’s requirements will be unique to him or her. If the staff member would prefer to amass funds and transfer on an ad hoc basis, taking advantage of exchange-rate fluctuations, that is very easy to arrange through a broker. And, perhaps more importantly, a good broker will help with that timing and planning through

FOREIGN EXCHANGE

relevant market information and timely prompts.

For some, that is too much like hard work, and for others, risk-aversion is the main concern. In these circumstances, we often find that expat workers prefer to fix the exchange rate for their regular monthly transfers on a forwardcontract basis. That is an agreement between the client and the broker to convert a fixed amount of money on a set date each month at a predetermined exchange rate. The contract then happens on a standing-order basis and avoids virtually all effort on the part of the assignee. It also means they can budget accurately for up to 24 months at a time.

Returning Repatriation to the UK at the end of the contract period is generally – but not always – an easy-to-anticipate event. That puts the assignee in a good position to plan the return of funds to the UK as well. This opens up plenty of opportunity to take advantage of exchange-rate fluctuations and move funds either on a spot contract or plan ahead with forward contracts.

To explain the terminology, a spot contract is an agreement to exchange funds at a set exchange rate within a few days of the contract being agreed. A forward contract is the same, but with a settlement date more than five working days after the deal is agreed.

A forward contract is the contract of choice for those who like the exchange rate now but are not in a position to move all of their funds until a later date. It is normal for a small deposit to be lodged against a forward contract, with the balance being payable at the contract’s settlement date.

So in practice, if the exchange rate spikes or troughs attractively for the returning assignee, they can take advantage of that move but delay the exchange of funds till a suitable date.

All in all, the management of an assignee’s currency requirements need not be expensive (as it would be through a high-street bank) and need not be complicated. Through a combination of spot and forward contracts, regular transfer arrangements and useful data, your staff member’s life as an expat worker can be simplified and financially enhanced if they manage their exchange-rate needs in a straightforward and uncomplicated manner, and if they have the right help and guidance to do so.

And from a purely company perspective, everything which makes life easier for your expat staff is a precious commodity. The happier your expat staff are, the more productive and the more likely they are to yield the returns from all your investment of expense and time.

That’s win-win, vittoria-vittoria, triompher-triompher, siegen-siegen, or, as they say in Australia, ripper.

See the Foreign Exchange section of relocatemagazine.com for updates and practical advice

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serviced apartments

The worldwide serviced apartment sector is poised for growth. Driven by a significant increase in global mobility, this niche part of the hospitality industry is enjoying surging demand in markets both new and old. Ruth Holmes reports on the sector’s direction of travel as it seeks to realise its potential, meet clients’ needs, and overcome challenges.

In the Spring 2013 issue of Re:locate magazine, Fiona Murchie surveyed the international serviced apartment scene.

Talking to leaders in a wide cross-section of serviced accommodation providers – each operating a variety of business models and service offerings – she investigated how they were working to satisfy corporate and HR housing needs.

The article concluded that collaboration and joined-up thinking between providers, agents and relocation service providers remained key to the sector enjoying a truly strategic partnership with its clients.

The intervening months have seen two valuable new datasets presented on serviced accommodation, as well as what promises to be an important new event on the sector’s conference calendar, to back up this proposition.

Here, Re:locate continues the conversation by asking how serviced accommodation providers are taking the market signals on board and organising themselves in a way that meets customer demand in this relatively immature market.

Collaboration key The Apartment Service’s fourth annual Global Serviced Apartments Industry Report,

published in May in conjunction with Adagio, Frasers Hospitality and Quest Apartments, is one of the new resources signposting the way ahead. Based on provider feedback, it confirmed that the serviced accommodation sector was “on the verge of a new chapter in its success story”, with corporates recognising the benefits of serviced apartments.

According to Mark Harris, director of Travel Intelligence Network, UK companies’ use of serviced apartments has grown by 86 per cent. Around six in ten of UK corporate travel policies also now include serviced apartments – a figure which rises to 77 per cent of accounts managed by travel management companies.

Importantly for mobility professionals, the report also reaffirmed relocation’s role in the sector’s growth. One of its recommendation is that the onus needs to be on intermediaries – including relocation management companies – to provide the missing product knowledge and to integrate serviced apartments into corporate travel and relocation programmes.

Yet a lack of clarity around what the sector can offer clients is also one of the “profound challenges” the industry faces, “primarily because it remains very fragmented”, wrote Arlett Oehmichen and Veronica Waldthausen, of hospitality

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analyst group HVS, in their Here to Stay overview report of the serviced apartment sector in Europe.

This comprehensive study was presented at the first Serviced Apartment Summit (SAS), held in London in July.

The SAS joins the Association of Serviced Accommodation Providers’ (ASAP) – a membership organisation representing 58 serviced apartment operators and agencies – exhibition and conference as a place to discuss and debate the way ahead in this relatively new sector.

Around 200 delegates, representing established chains and new independent suppliers, financiers and brokers, joined in the debate at the SAS conference, asking what the sector needed in order to move forward. Again, collaboration – both within the sector and with clients – was overwhelmingly a key message. Well received as a place to engage further in debate and action, the SAS has already confirmed the date for 2014’s summit.

learning every day. It is a very young market, and very inconsistent in every angle, and not an easy market.

Bureaucracy is the biggest problem.” In the UK also, planning laws and a lack of product understanding among institutional investors contrive to limit supply.

But, through conferences like the SAS, the sector is responding to the challenges. Sean Worker, CEO of BridgeStreet – a platinum sponsor of the inaugural SAS – spoke of a new sense of urgency to overcome these issues and reframe the debate. “It felt time to change the dialogue and move the agenda to a more global conversation about bringing balance, both from an investment standpoint and addressing the obvious elephant in the room, which is you can’t have a common communication unless you have a common language. [Here] we are setting a high-level agenda and giving everybody a voice to talk about this, and it’s very interesting.”

A question of definition?

The paradox facing serviced accommodation providers is that, while the proliferation of suppliers is helping add much-needed supply to this growing sector’s inventory, it simultaneously reinforces the need for standardisation and consensus over consistency of tiered product offerings that appeal to both relocation service providers and their clients.

Figures from the Global Serviced Apartments Industry Report highlight how, now more than ever, this conversation is essential. According to its data, the global inventory of extended-stay apartments grew by 34 per cent between 2010 and 2011; the number of locations increased by 17.5 per cent over the same period. For the period of the latest report (2011/12), overall supply increased by a further 9.4 per cent. Moreover, almost eight out of ten serviced apartment operators (77.4 per cent) reported that supply in their local markets was increasing.

This is good news for clients seeking accommodation for growing numbers of mobile workers.

Yet sector-wide growth in supply is only adding to the existing issues around clarity, fragmentation and the need

Lack of consistency over service offering and fragmentation are not new issues in the sector. Mark Harris, in his overview for the Global Serviced Apartments Industry Report, noted, “Serviced apartment operators, corporate buyers and agents alike agree that greater standardisation is the key to driving the greater understanding of serviced apartments that will ultimately realise the potential of the sector. They also agree that a code of conduct for operators is essential for the same reason. And yet neither initiative seems to be any nearer to fruition than they were at the time of our last report.”

In both European and rapidly developing markets like those of South America, where demand for serviced apartments is one of the fastest-growing, according to the Global Serviced Apartments Industry Report, the reason for this delay might be that providers are grappling with barriers to entry. Both the HVS report and Global Serviced Apartments Industry Report note that planning is a significant barrier.

Says Thiago Hahn, managing director of Skyline Worldwide, “We are expanding into Latin America, and

36 | Re:locate | Autumn 2013

Servicing a growing sector

Skyline Worldwide, London

serviced apartments

Relocation’s needs

for collaboration, because it is independent operators who seem to be fuelling the supply pipeline. Figures in the Global Serviced Apartments Industry Report indicate that, as the authors put it, “this rate of growth is not reflected amongst the inventory of the 15 top global suppliers, whose supply has grown by just 1.7 per cent, suggesting that the overall increase in supply is due to independent apartment operators joining the market.” Just one new entrant – Sun Suites, operating coast-to-coast in the mature US market – made it into the top 15 during the report’s review period.

From a corporate HR and relocation service perspective, the serviced accommodation provider most likely to be successful during a request for proposal process is the one that can offer the right service, in the right place, at the right time, and for the right price. Within this are considerations around how to ease the transition for mobile workers to their new lives overseas, so they can hit the ground running.

More flexible assignment lengths, tighter cost controls and lump-sum approaches mean that high-touch service elements like atmosphere, ambience and general managers with local knowledge are becoming important, alongside location and keeping pace with technology.

A more clearly defined, tiered product across a range of budgets is therefore important in a market whose product can be defined in several different ways. Writing in the Global Serviced Apartments Industry Report, Charles McCrow, of The Apartment Service, described what this might look like, noting the importance of branding as a useful route to achieving it.

“Standardisation should be the clarification of minimum service levels and quality thresholds that can be expected from different categories of product. The emergence of

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strong brands will also go a long way to enable this, but, with such a large percentage of independent providers and systems, clarity on these issues is universally required.”

“What’s confusing in this is that everyone says ‘serviced apartment’ and then when you have an A or A+ location or a tertiary location, whether one is 60 square metres or 30 square metres, they’re all called ‘serviced apartments’,” says Sean Worker. “That has got to change, because we’re not doing our relocation buyers any favours. It is up to us to define our space.

“Today’s buyer buys brands,” he continues. “They buy the experience: the way stores are designed. Also, today’s buyers, when they look at retailers, they look to book – they may go by the store, then actually buy online. A serviced apartment is not a serviced apartment – every serviced apartment is a two-star, a three-star or four-star … ”

Quality guarantees – a branded future?

Branding, therefore, is becoming a hot topic in the sector.

Major serviced apartment brands are being joined by major luxury hotel operators like Jumeirah, Marriot and InterContinental as they seek to offer a clearly demarcated quality and convenient serviced apartment offering.

Mark Harris, of Travel Intelligence Network, says, “The 2013 hospitality industry has been described as ‘big, beautiful and branded’. Whilst the hotel chains launch new brands, more independent hoteliers are turning to consortia such as Best Western, to benefit from their brand recognition. Internationally, the major chains are expanding their portfolios into the emerging markets, customising their products and brand standards to local market needs in a process dubbed ‘glocalization.”

Redesigning serviced apartments to offer a sense of location and identity is a key trend for branding serviced apartments, making them ideal both for extended-stay business travellers and for longer-term assignees looking to acclimatise physically and culturally and build a network in their outbound destination. In her presentation at the Serviced Apartment Summit, MD of the Fusion Interiors Group Hilary Lancaster talked through the company’s work with Citadines and other high-profile serviced apartment providers, which is doing just that.

Global connectivity Other large serviced apartment operators like Frasers Hospitality (‘Capri’) and BridgeStreet (‘Aparthotels by BridgeStreet’) are also responding to relocation trends with their new branded-product launches. Combining the services of a hotel with home comforts and the space to experience the destination fully, these aparthotel concepts appeal both to more frequent, extended-stay business travel and to longer-term assignees travelling solo.

Says Guus Bakker, COO of Frasers Hospitality, “Our refurbishment programme is engaged with the trends and changes in business travel, and relocation in particular, where we are seeing more individuals being relocated. It very much has their needs in mind. For our guests, internet speeds are a priority, so we always try to be up-to-date with the electronic equipment we offer, like iPod connectivity.”

Frasers Hospitality is one of the sector pioneers responding to the growing trend for business travel to be booked online. More than half of bookings are now made in this way, creating another key issue for the sector. Common global booking systems used in the wider hospitality sector do not work so well for serviced apartments, notes Mark Harris, despite some assignees and business travellers having greater control of their own budgets as well as being constantly connected by a mobile device to the internet.

This is providing opportunities for IT developers to join the conversation about online booking, as Tom Fogg, direct sales manager at Vestibule Marketing, the company behind the Elina serviced accommodation booking platform, comments. “One of the benefits of working with the serviced apartment industry is you can almost define the industry as you bring it on. Events like [the Serviced Apartment Summit] are developing the industry in ways you couldn’t do as individuals.”

But, while the future may indeed be ‘big, beautiful and branded’, the sector must, for the present, remain focused on bringing the standardisation and consistency everyone is calling for. This means continuing the conversation around industry standards, getting the finance in place, and collaborating across sectors to ensure the secure future of the sector in a time of rapidly rising global mobility.

See the Serviced Apartments section of relocatemagazine.com for updates and practical advice

38 | Re:locate | Autumn 2013

E EW I T N BS E

W

Re:locate

the global picture We are thrilled to share with readers the benefits of our website’s exciting global growth.

W

ith our improved website and a range of digital innovations coming on stream, we can help organisations of all sizes to manage and retain talent successfully in any location, across every stage – from starting up in a new location, to planning and preparing for the relocation, to managing the assignment.

Says Re:locate’s managing editor, Fiona Murchie, “Part of our success and popularity, both in the magazine and on the website, is covering the full range of mobility issues in one place. It is important to our readers and site users that we cover not only the ‘hard’ issues around policy, strategy and compliance but also the ‘soft’ ones which HR and relocation professionals must understand if they are to manage relocating employees and their families successfully, such as property, schools, finance and health.

“Over the years, our audience has become increasingly international. We are now truly global; the Re:locate website currently reaches 145 countries per month.”

Our international reputation has enabled us to attract a growing team of talented foreign correspondents, journalists, writers and experts in range of specialisms. You will be able to track their comments and views by subject and by country. And there will be plenty of interest for not only HR professionals but also

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CEOS, project managers and financial leaders involved in growing their businesses overseas, particularly in emerging markets, complex jurisdictions and relocation hotspots.

Enhanced country sections will feature political, economic, cultural and lifestyle background on global relocation destinations, and there will be improved delivery of news, practical advice, expert knowledge, and features and articles delivering thought leadership.

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property

Property steps up After a prolonged downturn, the UK property market seems finally to be on the up. But is this a sustained recovery or the precursor to another ‘bubble’, asks Louise Whitson.

T

he last few months have been exciting ones for those who are interested in the UK property scene – which, one way or another, includes most of us – with both the residential and commercial markets on the move again as growth returns to the wider economy.

Measures to underpin the housing market – including the Funding for Lending scheme, the extension of the Help to Buy equity-loan programme, and anticipation of the state-backed mortgage-guarantee initiative that starts in January 2014 – are leading to increased activity.

In its highest monthly estimate for gross lending since October 2008, the Council of Mortgage Lenders estimates that total gross mortgage lending increased in July to £16.6 billion, a rise of 12 per cent from June’s £14.8 billion and 29 per cent higher than the total for July last year.

All-time high for prices Reflecting the improving outlook, July’s LSL/Acadametrics house-price survey for England and Wales – which uses Land Registry data – found that prices reached a record high in July, surpassing their previous peak in 2008.

According to the index, the average price achieved has risen by £5,796 in the past 12 months, to £232,969, led by the strong performance of London.

Hailing 2013 as “the time when the property market recovered from the 2008 financial crisis”, David Brown, commercial director of LSL Property Services, said, “House prices are growing steadily, signifying long-term recovery

40 | Re:locate | Autumn 2013

is becoming a reality. Mortgage lending in May was up by over a fifth compared with April, and 17 per cent stronger than a year ago, while the number of first-time-buyer mortgages is at its highest since 2007.

“Typically, the property market flourishes in the summer, and July sales are the highest so far this year. But the improvement is more than just a seasonal trend. The market is palpably stronger than a year ago, and confidence is returning to lenders and buyers.”

However, warns Mr Brown, “Despite this overall improvement in the market, the level of first-time-buyer activity is still around half of what might be considered normal levels. Both the lack of housing supply and rising competition in the property market are supporting prices, but, at the same time, making it more difficult for first-time buyers.

“The government urgently needs to address housing supply if it is serious about boosting home ownership levels. One way would be to remove stamp duty, which is a disincentive to buying for both home movers and first-time buyers.”

August saw a 1.8 per cent drop in new sellers’ asking prices over the month, but a 5.5 per cent increase during the last year, according to Rightmove’s house-price index – though this average conceals wide variations between London and the South East and the rest of the country.

The average asking price is now £249,199, down from £253,658 in July. This, says Rightmove director and housing market analyst Miles Shipside, though 2013’s first fall, is more modest than usual for the time of year, indicating that the recovery is indeed holding steady.

property

Explains Mr Shipside, “The peak holiday month of August is traditionally volatile, with asking-price falls recorded every year since 2007. Fewer sellers come to market, down 8 per cent on last month, with discretionary sellers more focused on holidays and content to wait for the busier autumn selling season. Sellers who do come to market during August tend to have a more pressing reason to sell, and consequently price more aggressively.”

Built to last?

Across the media, commentators have expressed concern that the current improvement in the property market is unsustainable in the longer term.

Acadametrics chairman Dr Peter Williams emphasises the importance of keeping the recovery in perspective. Two issues, he says, highlight the need for caution. The first is the comparatively low level of first-time-buyer activity. The second is trends in London, which, historically, have been so important to the total property picture.

“Our analysis of the London market shows very clearly how activity in the capital has been driving the market overall,” says Dr Williams. “Extensive coverage recently has highlighted the importance of foreign buyers in key central London boroughs. However, there is some evidence to suggest this market is less buoyant than it was; this, taken

together with the likely fall in bankers’ bonuses, suggests the London market might see its growth rate fall.”

“The clear message,” says Rightmove’s Miles Shipside, “is that only if the supply of property increases to meet rising demand will we see a boost in transaction numbers that will mitigate the ‘collateral damage’ of upwards price pressure.

Developers’ reaction to the new-build Help to Buy scheme must start to address the structural shortfall of the last two decades and increase the number of houses being built.

“A second key success measure will be an increase in the supply of property to market from those who have put their housing needs on hold since 2007. It is vital that the new scheme frees low-deposit-trapped sellers, encouraging them to come to market and helping to unlock supply shortages. They are more likely to have established equity and creditworthiness and be the main beneficiaries, rather than aspiring first-time buyers who are simultaneously struggling to pay rent and save a deposit.

“Tougher lending criteria following the Mortgage Market Review will also temper some first-time-buyer demand and guard against a lending free-for-all like the one that inflated the last property bubble.”

HR and relocation professionals, with the rest of the country, will be awaiting the next chapter in the saga with interest. 

See the Property section of relocatemagazine.com for updates and practical advice

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Your global relocation solution We understand that in managing relocation policies for your organisation you have to balance the needs of the business with the service requirements of your employees across different languages, time zones and cultures. Bournes consults closely with Department Heads to maximise challenging resources, manage compliance and audit risks.

As a network with nearly 1,200 locations serving more than 180 countries across 6 continents our broad range of pre-assignment, moving and destination services will guide HR professionals and their assignees along every step of the journey, from beginning to end.

Contact Janine or Daniel 01895 420303 info@packandgo.co.uk www.packandgo.co.uk

For more information, call 0845 070 2007 or visit us at www.bournesmoves.com/relocate

RE L O CAT IO N

S O L UTIO NS

awards

C E L E B R AT I N G S U C C E SS in R E L O C AT I O N Looking for ways of raising your organisation’s profile, impressing potential customers and investors, improving business planning, and recruiting and retaining top talent?

Then you need to enter relocation’s premier awards!

I

ntroduced in 2007 to reward good practice and celebrate the contribution of relocation to business success, the Re:locate Awards are now of global stature, attracting more entries every year, from both UK-based and international organisations. In response to changing times we’re introducing four exciting new categories. It’s now time to launch this year’s awards.

As economic recovery continues in many parts of the world, companies across the globe are seeking to stay ahead of the competition by recruiting and retaining top talent, winning new customers and investors, and enhancing their business planning.

If yours is among them, you should be entering the Re:locate

42 | Re:locate | Autumn 2013

Awards! These awards are for teams and individuals, as well as organisations. With a choice of categories, covering HR and service providers, there’s sure to be one that’s right for you.

Entry is easy, and free.

Visit relocatemagazine.com for full details.

For HR, this is the perfect opportunity to show your top management how you and your team have been rising creatively to challenges. Previous supplier-side winners have found that, as well as providing welcome recognition of a job well done, their award has been a terrific sales and PR tool which has raised their profile and brought new contacts and business.

Interested in sponsoring?

Entering is also a great way of motivating your team, boosting morale, and increasing your personal success.

HOW TO ENTER

While you’re there, sign up for our series of awards webinars, and subscribe to our online awards newsletter, to keep up-to-date with the latest news and maximise your chances of winning.

Through association with relocation’s most coveted awards, our valued sponsors position their organisations at the forefront of the relocation industry. Supporter opportunities are also available.

Call Garry Tester on +44 (0)1892 891334

awards

AWARD CATEGORIES Technological Innovation in Relocation Inspirational HR Team of the Year Sponsored by Cartus Best managing or growing talent initiative

NEW

Best HR & Supplier Strategy or Team Relocation Service Provider or Team of the Year Best Property Provider or Solution Financial support and innovation NEW

NEW

Immigration team of the year Global health and wellness

NEW

Excellence in Employee & Family Support Sponsored by Weichert Workforce Mobility Best International Destination Services Provider Relocation Personality of the Year

Key dates Awards webinars November 2013 onwards Entry deadline Friday 28 Februar y 2014 Gala Awards Dinner May 2014

relocatemagazine.com | 43

health

Tips for successful international assignments

The failure of international assignments is most commonly caused by assignees, or their families, failing to adjust to their new home. When you consider the investment in sending employees abroad, it makes sense to provide the planning and support to make the move a success, says Kevin Melton, sales and marketing director of AXA PPP International.

M

y first piece of advice is to get your employee (and family) to have a full health check before they go. This should help reduce the chances of a serious condition being diagnosed once they are settled.

It can also provide the peace of mind of a clean bill of health for the big move.

Mental wellbeing is also important. And there’s nothing like a move, be it down the street or across the world, to challenge stress levels. An assessment can not only support the employee in the move but also highlight if the reasons for the move are healthy – whether assignees are doing it for the monetary reward, the potential for a promotion, to develop their skills, or to open their personal life to new experiences. If the reason for the move is more challenging, such as getting away from a personal problem, the employee might need a bit more support once they arrive.

24/7 telephone support from an EAP provider Sometimes, the magnitude of the change doesn’t sink in until the assignee and their family are in their new home.

Giving them access to a telephone support service where they can talk to a qualified counsellor in their own language can make a world of difference.

A trailing spouse might also need that extra bit of onthe-ground support. Don’t forget, they’ve given up their life, job and network of family and friends. Plus if they’re not going to be working, they may need a helping hand to meet new people. Encouraging them to join local expat clubs can get them on the right track.

Offer access to an online medical record account If a medical emergency does happen when your employee is abroad, having their medical history to hand might be important.

Instead of contacting their GP back home and getting them to fax or email the information, there are many services available that allow the uploading of medical documents to a secure online portal so that, no matter where your employees are, they have access to their medical history. Getting your employee to upload their history before they go can save time later if it becomes important.

44 | Re:locate | Autumn 2013

Provide international private health insurance Making sure your employee has fast access to medical treatment, along with the support of an insurance company which can help with languages and the local health system, can provide the reassurance your employee needs that, if something should happen, they’ll be looked after.

When purchasing medical insurance, make sure you look out for some of the essentials.

• Will the provider settle claims directly with the hospital? Avoiding payment upfront is particularly important for expatriates who don’t want to be left out of pocket after their medical treatment. Larger providers such as AXA PPP International will have negotiated agreements with hospitals worldwide to offer direct settlement for eligible treatment • Get me out of here! Sometimes, employees need to be evacuated because the emergency treatment isn’t available locally. Check whether evacuation cover is included in the policy, or whether you will need to pay extra for it • What’s not included? Make sure you understand what is not covered under each policy option. All health insurance policies have some exclusions and should state what is and isn’t covered under each of their healthcare options. Check with the insurer exactly what exactly can be claimed for under the policy. Some insurers don’t cover for the upkeep or flare-ups caused by chronic conditions A well-adjusted and supported family makes a happy employee who will be able to concentrate and dedicate their time to their new role. By planning and supporting your employee in this life change, you will increase the chances that the assignment, and your employee, will be a success.

AXA PPP International is an award-winning provider of international health insurance. For more information on health cover or wellbeing services, call +44 (0)1892 707984 or visit axapppinternational.com

News and anaLYSIS

Who’d be an employer?

As part of its drive to strengthen and simplify the civil penalty framework for hiring illegal workers, the UK government has announced a new set of proposals. Rob Lyon, immigration adviser at international immigration company Ferguson Snell and UK qualified solicitor, considers the impact these proposals may have on companies hiring legitimately from overseas.

T

his article starts with a quick exercise: select at random one of your employee files (paper or electronic), open it, and isolate all of those documents establishing that individual’s right to work in the UK. Are you confident that the documents are those necessary to protect you from a civil penalty for hiring illegal workers?

Any employer worth its salt adopts rigorous processes to ensure its employees are legally permitted to be employed, both in the UK and for the employment in question. If an employer is found to hire illegal workers, it may face civil penalties of up to £10,000 per illegal worker.

The winds of change With political discourse in the UK increasingly focused on all things immigration, and in particular the ethics of British companies hiring from overseas, fines and the damage to both a business’s continued ability to hire lawfully from overseas and its reputation if found to be hiring illegal migrants are not something any employer can afford to take lightly.

Unfortunately, the government is set to turn up the pressure. On 9 July, it announced a consultation in response to its proposals to ‘strengthen’ and ‘simplify’ the civil penalty framework for hiring illegal workers. Despite the promising pledge, critics argue that the proposed changes may, in fact, result in more bureaucratic red tape for employers to unravel, coupled with tougher sanctions should they fail to do so.

Proposals So what has the government proposed?

In brief, the following: • Fewer documents for you to check • Removal of annual follow-up checks for staff with limited leave – instead, for you to check prior to visa expiry • No ‘warning notice’ for your first breach (as is currently the practice) • Increased fines to £15,000 (£20,000 where aggravating circumstances) • Changes to fine calculation, including the ‘mitigating factors’ to reduce these • Greater commitment to the imposition and collection of fines

• The requirement for objections to fines to be made to the Secretary of State before an appeal may be brought in a court (currently, employers may appeal without raising such an objection) • Directors of limited liability companies to be liable for payment of fines where the company fails to pay them

Analysis Penalties are proposed to be reduced where the employer actively reports and cooperates with Home Office investigations into illegal working. However, the historic reduction of fines where employers are able to demonstrate at least some evidence had been taken to establish the legality of someone’s employment is proposed to be abolished. Whilst fines may be paid in instalments, the Home Office may reduce fines for prompt payment (although not for repeat offenders).

In terms of document checking, the government appears to recognise that the various requirements can be problematic and time-consuming for employers to keep on top of, so the proposal to simplify the range of documents must surely be welcomed in principle. In essence, it’s proposed that greater reliance is to be placed on the Biometric Residence Permits (BRP) of individuals. The critics argue, however, that many non-EEA nationals may be entitled to work yet do not hold BRPs with which to provide their right to work. Such measures may therefore unfairly discriminate against these individuals, potentially turned away by employers with a renewed focus on BRPs.

The future So behind the proposed changes to minimise the administrative burdens on employers are tucked away what appear to be tougher obligations and sanctions on businesses and their officers. With the government’s tough rhetoric on coming down hard on illegal migrants, it’s likely that the proposed changes will take flight, even in the face of criticism. Should this happen, it will be more important than ever for employers to dot the i’s and cross the t’s when it comes to vetting its employees.

For more information or assistance with your UK immigration enquiries and applications, contact Ferguson Snell & Associates on fs@fergusonsnell.co.uk or 020 3668 2700, or visit www.fergusonsnell.com

relocatemagazine.com | 45

NEWS and ANALYSIS

Relocatees invited to take part in new TV series A UK-based production company is inviting people who are planning to buy a home in continental Europe and would like some help with their search to apply to take part in a new BBC television series.

The company, Boundless Productions, is particularly interested in talking to employees who are being posted overseas by their employer.

2013 Relocation Agent

Network National Conference

Cartus’s UK estate agency partner, Relocation Agent Network, is preparing for its industry awards at the 20th Relocation Agent Network National Conference in London on Friday 15 November.

Sponsored by members, the event features an exclusive line-up of keynote speakers, networking opportunities and a trade exhibition. The day will culminate in a celebratory awards dinner, endorsed by Re:locate. This year’s host is comedian and television presenter Dara O Briain. Best known for the BBC comedy panel show Mock the Week and The Apprentice: You’re Fired, he will announce the 2013 award winners, including Estate Agent of the Year.

Vice president of Cartus Supply Chain Management and Relocation Agent Network managing director Richard Tucker said, “At Cartus, we are proud of our partnership with every member of Relocation Agent Network. They bring continuous added value to our relocation services for clients through market innovation and best practices. The conference is a fantastic way to celebrate the past year’s achievements, and this year’s 20th anniversary event marks a major milestone in our evolution.”

Modelled on the UK’s longest-running location show, Escape to the Country, the new series, Escape to the Continent, will offer what Boundless Productions describes as “a unique and exciting look at countries and regions throughout Europe” as well as properties available across a broad range of budgets.

One of the new series’ best-known presenters will be Nicki Chapman (pictured), a popular figure on British television and a regular on Escape to the Country.

If anyone in your organisation would benefit from this kind of help, ask them to email their name, telephone number and brief details of their move to escapetoeurope@boundlessproductions.tv, or to leave a message including the same information on 01494 733550.

Global mobility trends:

‘slow recovery a reality’ David Wightman, national business development manager at Crown World Mobility, comments on current trends in global mobility.

The economic environment and global business growth, coupled with the evolution of organisations’ strategies, have shaped how we have seen global mobility over the last decade.

The global economic outlook is far from stable, and many key global economies are still in a major state of flux. The World Bank’s annual report, released in January 2013, shows that developing countries – which are key to emerging market business strategies – were responsible for more than half of global growth last year, but they are still impacted by the uncertainty of more advanced economies.

Slow economic recovery is a reality for global organisations.

Combined with increased business complexities, it will continue to have a significant influence on the range of business and employee needs that impact the global mobility industry. www.crownworldmobility.com

46 | Re:locate | Autumn 2013

News and anaLYSIS

A Gift of Time Over the summer, participants in Re:locate charity initiative A Gift of Time have been proving that contributing to good causes and increasing the value of their organisationsâ&#x20AC;&#x2122; corporate social responsibility (CSR) projects can be fun.

In support of Topshopâ&#x20AC;&#x2122;s Key to Freedom project, we sent five silk scarves on a fundraising world tour of companies in the relocation sector. Key to Freedom supports the Womenâ&#x20AC;&#x2122;s Interlink Foundation (WIF), a charity that works with vulnerable young women in Indiaâ&#x20AC;&#x2122;s West Bengal.

We were thrilled with the enthusiasm that greeted our initiative. See our Facebook page for photos of the scarves and some of their proud wearers, including staff from immigration specialist Smith Stone Walters, removals company John Mason International, and serviced accommodation provider The Apartment Service.

At the Re:locate charity networking party on Thursday 28 November, these globetrotting accessories will be auctioned to raise funds for WIF. Donâ&#x20AC;&#x2122;t forget to book your tickets (see p4).

Magpie celebrates ten years Another of the charities we are supporting, Magpie Dance, has just celebrated its tenth anniversary. From fundraising to support via CSR projects, Magpie would love your help. See our website for details.

Take part!

We have a list of charities needing your help, and would be delighted to hear about your CSR projects. Let us know if you would like extra help from across the industry, or if you can offer some professional time to a project. Our charities also welcome donations to their funds.

Contact Vanessa McConnell or Fiona Murchie on +44 (0)1892 891334, or email vanessa@relocatemagazine.com.

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eldercare

RELOCATION REVOLUTION? Supporting the sandwich generation Changing demographic trends mean that many in the UK now have responsibilities towards elderly relatives, and more are likely to do so in future. This may affect an employee’s willingness to relocate, or contribute to relocation failure. Louise Whitson considers how companies relocating employees domestically can support those with elderly dependants.

C

hildren’s care and education are high on the agenda for many relocating families. As both life expectancy and length of working life increase, and the tendency to have children later in life becomes more established, some are also having to take into account the welfare of parents, or other elderly relatives, when considering a relocation move – a trend that looks set to grow.

Under workplace legislation, those caring for a spouse, partner, child, grandchild, parent, or someone who depends on them for care, have statutory rights. These include the right to request flexible working arrangements and the right to a ‘reasonable amount’ of time off (which varies according to circumstances) to deal with an emergency involving a dependant.

In addition, employers wishing to be in the vanguard of good practice – and make best use of the wealth of talent available to them – are waking up to the importance of being family friendly, and recognising that there’s more to ‘family’ than ‘children’. That being the case, are increasing numbers of organisations including in their relocation

48 | Re:locate | Autumn 2013

policies measures to help employees with commitments to older relatives, and what kinds of support are they offering?

I asked representatives of several large, high-profile UK companies how they were supporting employees relocating domestically who had elderly dependants. They responded that this had not yet been an issue for them, so there was no specific provision within relocation policy to cover it.

Clare Harrison, a consultant with Collier HR Services, sheds light on what may appear a surprising situation. “I have not seen any specific sections in a domestic policy for elderly dependent parents. However, in my experience, what I would expect in this situation is a consultation between the employee, HR and the line manager to ascertain if there are any other company HR policies that would support the situation – for example, flexible working, home working, job-share, remote working and so on.

“With mobile solutions and tele-presence facilities, the job may be able to be done remotely these days, and not in the same location as the manager and colleagues. Depending upon the ability of the elderly parents to move with the

eldercare

family – if, for example, they live with them – then additional allowances and costs may be offered, with a longer period in temporary accommodation to make the move.”

A complex picture Juggling work with caring responsibilities is rarely easy. Where relocatees are concerned, the situation can be particularly complicated. The elderly relative may be moving with the family, staying in the old location, or living elsewhere. Within each of these, there are variations. If the relative is moving with the family, for example, will they be living in the family home, independently, or in residential care?

Factors such as the length of the relocation, the health of the elderly person and the best interests of the whole family will need to be considered. Financial arrangements may also be an issue; for example, if the family and the relative are moving in together for the first time, resources may have to be pooled in order to afford a larger property. If the relocating family has previously lived with the relative in the family home and made a financial contribution to its running, will the withdrawal of this assistance make it hard for the relative to manage if he or she is staying put? In this case, options such as equity release schemes may be considered. In both these scenarios, appropriate professional advice is essential.

Case study: Lloyds Register Given the complexities of employees’ individual circumstances, creative and flexible support is essential if relocations are to be successful. An example of an organisation that is taking an imaginative approach to relocation support is Lloyds Register (LR), whose People Stream team won Re:locate’s 2012/13 award for Inspirational HR Team of the Year for an ambitious project to move the company’s Marine business stream from central London to a new Global Technology Centre (GTC) in Southampton.

LR has a long and distinguished history. The move to the GTC, which places the Marine business at the heart of a global research and development network, is critical to its continuing success, explains People Stream lead Bev Latham. In this highly specialised area, the right incentives play a critical part in persuading people – many of whom are experts in their field – to relocate.

LR offers approaches to flexible working as part of its group-wide HR policy. To incentivise colleagues to relocate to Southampton, the Marine stream created a number of variations to accommodate staff with caring responsibilities.

1. Marine Workflex gives employees the option of applying for flexible working even if they do not have caring responsibilities. Says Bev Latham, “Not everyone wants to move to Southampton. Others might want to move but

not be able to because of personal circumstances. Under Marine Workflex, there is the opportunity for colleagues to manage the commute over three days, so they don’t have to physically relocate.”

2. By giving valuable breathing space, Weekend Commute supports staff who are currently unable to relocate their main residence because of ‘valid personal circumstances’ (which must be approved by management), but who do want to work in Southampton and intend to relocate eventually.

Successful applicants work for a maximum of two years on a weekly commute basis. The company pays travel expenses to and from Southampton and a monthly sum towards rent (typically of a one-bedroomed flat) and utilities, plus homesearch fees and a retention bonus. At the end of the agreed period, the employee moves to the main relocation option.

So far, says Bev Latham, there have been 17 successful applications for Weekend Commute, of which one has been to support the care of elderly parents. She points out that Weekend Commute is an expensive option for LR, but worth it because of the calibre of the people it is supporting to relocate and their importance to the company.

3. Purchase Only supports those who do not want to move their main residence and family, but do want to work at the GTC. Under this policy, they retain their main home but are also supported to buy a property in Southampton. The policy stipulates that the individual who works for LR must live in the property, so the option cannot just be used to buy a second home or an investment property. A relocation allowance, homesearch fees and removal costs are paid.

The take-up rate of relocations to work at the GTC has fallen in the second year, as teams that LR suspected were less likely to move come onto the transition plan. However, the current move rate is still a healthy 52 per cent, as against the forecast 50 per cent – indicating that what Bev Latham describes as “pragmatic and creative support” is paying off.

Looking ahead In recent years, the Sandwich Generation – those with responsibility for children and elderly parents – has been joined by the Club Sandwich Generation, who add responsibility for grandchildren to that mix.

If current demographic trends continue, who knows what the relocatees of the future will have to cope with? We wait to see how organisations will respond to the challenge.

See the Employee Support section of relocatemagazine.com for updates and practical advice

relocatemagazine.com | 49

eldercare

Caring for elderly relatives from a distance Legal and practical steps for assignees In an increasingly competitive and international economy, it is more and more usual to seek new opportunities abroad. However, the lure of exciting new prospects and a better quality of life will invariably weigh against concern for those left behind – not just friends and familiar faces, but also parents and other relatives. While it may no longer be possible to call in and check up on elderly parents, there are steps that can be taken to give them the support they need and their far-flung children the reassurance they need. Victoria Ward, solicitor at Thomson Snell & Passmore, explains.

R

adical advances in medicine and healthcare over the past century have resulted in an increasingly ageing population. In 2010, according to the Office for National Statistics, 17 per cent of the population was over the age of 65, and a staggering 1.4 million people were aged 85 years and over. Caring for older relatives is therefore a growing cause for concern, particularly amongst assignees embarking on a major relocation. However, assignees can take certain legal and practical steps to ensure that their elderly relatives continue to receive support after the relocation.

For example, some employees may already assist their elderly relatives informally with the management of their finances, property, health or care arrangements. Once the employee has moved away, it may be more difficult for them to provide such assistance without formal authority. Alternatively, it may be that the relocation is long term, and whilst the elderly relative is capable of managing their own affairs for the time being, the assignee is concerned that they, or another family member, may need to provide some assistance at a later stage.

In such instances, the elderly relative may wish to consider creating a Lasting Power of Attorney (LPA), which will provide another person with the authority to act on his (or her) behalf in the event he is unable to do so because he lacks mental capacity. Assignees should note that an elderly relative will only be able to create an LPA if they have the capacity to do so. Thus, planning ahead is vital. Not only is the LPA in place long before it is needed, but its preparation allows the family, as a whole, to discuss how decisions will be taken if the relative becomes unable to make decisions in person.

50 | Re:locate | Autumn 2013

There are two types of LPA, Health and Welfare and Property and Affairs. Health and Welfare LPAs enable attorneys to make decisions such as where the donor (the person making the LPA) should live, their day-to-day care and consenting to, or refusing, medical treatment on the donor’s behalf. Property and Affairs LPAs enable attorneys to make decisions such as buying and selling property, closing, opening or operating bank accounts, claiming benefits and providing access to the donor’s financial information. The donor may choose to make just one type of LPA, or both.

A donor can appoint more than one attorney under an LPA. If the elderly relative wishes to make an LPA appointing the assignee as their attorney, it may therefore be desirable to appoint a second attorney who lives close by – for example, a local family member, a trusted friend, or a professional attorney. Provided the attorneys are appointed to act jointly and severally (rather than jointly), one attorney will be able to make a decision without the other. This could be an advantageous if, for example, the assignee is unable to sign relevant forms or documents due to his geographical location.

It is important for assignees and their elderly relatives to note that LPAs are only effective once registered with the Office of the Public Guardian (OPG). It is therefore advisable for the donor to register the LPA immediately, so that their attorney(s) can act without hesitation in the event of an emergency or the donor suddenly becomes incapable. The OPG charges a registration fee of £130.

Prior to the Mental Capacity Act 2005, donors could only create Enduring Powers of Attorney (EPAs). Whilst EPAs

eldercare

can no longer be created, existing EPAs are still valid and can still be registered. The assignee should therefore ask their relative if they already have an EPA which may require registration.

If an assignee has an elderly relative who has capacity to make an LPA and wishes to do so, the relative should approach a solicitor for further advice. If an employee relocates, and their elderly relative subsequently loses capacity but has not created an LPA, it will be necessary to make an application to the Court of Protection for a Deputy to be appointed. It is therefore advisable for an elderly relative to have an LPA in place so that they can make a choice about who should look after their affairs in the event they lose capacity. The Court can appoint a family member, or a professional such as a solicitor, to be a Deputy.

In the event an elderly relative loses capacity, assignees should be advised to take legal advice as soon as possible.

There are also practical steps that assignees may wish to consider taking to ensure their elderly relatives are well cared for after they relocate. These include: •M aking use of technology – The internet can be used to perform some tasks for elderly relatives from a distance – for example, online banking, transferring funds electronically, and grocery and clothes shopping.

If assignees are relocating further afield, elderly relatives may find it useful to know how to use Skype or email • Setting up standing orders and direct debits – This can take the stress out of paying bills or regular outgoings • Calling upon others for assistance – Assignees should inform their elderly relative’s neighbours, friends and other family of their relocation, and if appropriate ask them to check up on their relative from time to time.

Assignees should leave their contact details in the event of an emergency, and consider whether private care agencies or social services may be able to provide assistance with day-to-day tasks or care • Assessing current living arrangements – Those assignees with elderly relatives who struggle with their health or mobility and live on their own may wish to consider whether a care home or live-in carer is appropriate. The assignee should research the options thoroughly and talk them through with their relative.

A solicitor can provide advice on whether any funding is available from the NHS or the local authority, and also the availability of any benefits HR should advise assignees to consider the needs of elderly relatives they are leaving behind, and ensure that any necessary legal or practical steps are taken in advance of relocation.

See the Employee Support section of relocatemagazine.com for updates and practical advice

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education

Enabling the next generation of global leaders?

International education As they embark on their careers, today’s school-leavers and new graduates will be navigating a world of global opportunities. Rebecca Marriage looks at how international schools around the world are preparing the next generation of global citizens for the challenges that lie ahead.

T

here is no denying that today’s graduates and school-leavers are entering a truly global marketplace. Expectations of graduates are higher than ever before, and the skills that are demanded of new recruits are evolving fast to compete in this ‘boundaryless’ business world. While children of parents making an international move might find the upheaval and change of school unsettling, experts suggest that the internationalmindedness and cultural agility that naturally follow a successful international relocation could help to equip them with the skills required to succeed in a global business world.

“I think we’re starting to see a particular generation where they think of themselves as, quite literally, world citizens,” a spokesperson from Prudential said in the report Global Graduates into Global Leaders by the Council for Industry and Higher Education. “I don’t mean conceptually.

I mean they see the world as boundary-less: that they are able to move, shift, work anywhere, and do anything.”

By virtue of the pace of technological change and their evolving world view, today’s generation of schoolchildren seems to be well poised to take advantage of an expanding global marketplace. But, argues Rachael Westgarth, director of development at Round Square, an association of globally

52 | Re:locate | Autumn 2013

networked international schools, students at international schools are at a distinct advantage.

“Arguably, the ‘iGeneration’, regardless of schooling, is entirely unencumbered by geographic boundaries,” says Ms Westgarth. “Via Facebook, any young person is as likely to be effortlessly communicating with someone on the other side of the world as with someone in the next street.

“However, Round Square would argue very strongly that there is no substitute for learning by doing. In our experience, in general, students in international schools have a broader knowledge and understanding of the world than their non-international-school counterparts. At its most basic level, the process of daily school life – living and studying alongside students from other countries and cultures – brings with it freedom to develop a degree of intercultural understanding and acceptance that cannot be replicated through any other means.”

Equipping children to become global citizens One of the most popular options for families relocating with children is an international school teaching either the curriculum of their home country or an international

Watch the ACS film

When did a school make you feel this good?

Families just know when a relocation works. Whether you are a mom or dad, toddler or teenager, HR or relocation professional, from Texas or Tokyo, when all the pieces come together, it can deliver one of life’s most rewarding experiences. ACS understands the complex needs of globally mobile families. We have partnered the relocation industry since 1967 to meet the many challenges that face international families.

Our campus-specific Admissions, Housing and Transport experts work closely with parent-assisted Welcome Teams, International Groups, Parent/Teacher Organisations and Buddy programmes to create a smooth, seamless and happy transition. That is why each year literally hundreds of families from more than 70 countries make ACS ‘the’ regional solution to their educational and lifestyle needs.

To find out more about us, and our world renowned programmes, please visit www.acs-schools.com. Alternatively call either ACS Cobham +44 (0)1932 869744, ACS Egham +44 (0)1784 430611, ACS Hillingdon +44 (0)1895 818402. ACS schools are non-sectarian and co-educational (day and boarding) for students 2 to 18 years of age.

education

curriculum such as the International Baccalaureate (IB), owing to the ease of transition and the international transferability of the learning programmes offered.

Speaking at this yearâ&#x20AC;&#x2122;s Council of British International Schools (COBIS) annual conference, Mick Waters, professor of education at the University of Wolverhampton, spoke about his belief that international schools had the right skills and philosophy to help develop true global citizens. â&#x20AC;&#x153;Across the globe, international schools deliver that â&#x20AC;&#x2DC;roundedâ&#x20AC;&#x2122; school experience,â&#x20AC;? he said. â&#x20AC;&#x153;They are really good at the things that are often left out of state schools across the world â&#x20AC;&#x201C; how you use contacts, network, develop the etiquette to take you across new thresholds and help you cope with new experiences.â&#x20AC;?

Rachael Westgarth also believes that studentâ&#x20AC;&#x2122;s exposure to different cultures is a powerful force in advocating and promoting international understanding. â&#x20AC;&#x153;Students from all nationalities are welcomed into each school,â&#x20AC;? she says. â&#x20AC;&#x153;They are taught to appreciate, value and respect all cultures, religions and languages. Students learn to see themselves as global citizens and are asked to look beyond gender, class, race, nationality and culture to understand human nature.â&#x20AC;?

the qualities required of todayâ&#x20AC;&#x2122;s graduates and schoolleavers. â&#x20AC;&#x153;We are looking for top talent who want to be global leaders. We certainly donâ&#x20AC;&#x2122;t want them to be worried about what country they live in. Quite often, these young people donâ&#x20AC;&#x2122;t have a conception of where they come from, because they were born somewhere different from their parents, and now live somewhere else.â&#x20AC;? In the future, she predicted, people will be even more â&#x20AC;&#x2DC;agnosticâ&#x20AC;&#x2122; about where they come from, and that, she felt, is great for building global leaders.

Claire Snowdon, UK co-chair of Families in Global Transition, has observed the close alignment between the key competencies needed in the world of work and the International Baccalaureate Programme, which is taught in many international schools across the world. These include, says Ms Snowdon, â&#x20AC;&#x153;the ability to work collaboratively with teams from a range of backgrounds and countries, excellent communication skills, both speaking and listening, an ability to embrace multiple perspectives and challenge thinking, and an ability to influence clients across the globe from different cultures. Time and again, we find that some of the key skills and competencies are the focus of the IB programme.â&#x20AC;?

What employers want from todayâ&#x20AC;&#x2122;s school-leavers

An international curriculum

Speaking at the Worldwide ERC Global Workforce Summit in Shanghia this year, Kimberly-Clarkâ&#x20AC;&#x2122;s HR director for China, Naomi Monteiro, outlined what she believed were

Clive Pierrepont, director of communications for school group Taaleem in the United Arab Emirates, believes that, in an IB school, these competencies are fundamental and are lived and taught as part of everyday life. In fact, says

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Tim Waley, principal of Taaleem’s Uptown School, Dubai, “The whole cultural basis for our existence exemplifies these ideals. Staff, students and parents relate very closely to them, and as such they remain shared and expected outcomes from an education here. We see these, and others, that provide an ethical, civil and internationally educational package for young people as being integral to success in the world in which our graduates will live.”

“The IB, by design, provides students with a greater understanding of the world around them, so that they can live and work in a rapidly globalising marketplace,” agrees Stephen Spahn, chancellor of the Dwight Group of international schools. “Dwight families have for some time understood – and embraced – the concept of preparing their children to be internationally minded and equipped with a rich skillset that will enable them to be successful in the global marketplace.

“The IB measures students around the world against the same universal benchmarks, and inspires them to become well-rounded, culturally agile, respectful, and internationally minded citizens of the world. As such, IB graduates are well-prepared to succeed as global leaders.”

Henk van Hout, head of education services for Shell, oversees the company’s education policy and maintains nine Shell Schools around the world, which provide education for the children of Shell staff. He believes that parents of children in Shell Schools already have an international

attitude; they’ve chosen an international career and so tend to have an international mindset to learning.

“Most of Shell’s international workforce are doing multiple international assignments, and this is why the curriculum the children study needs to be compatible wherever they are based, and also needs to be designed to help children to adapt to different education systems. When the International Primary Curriculum was designed, one of the underlying objectives was the adaptability of learning so that it would be relevant for all children of all nationalities.”

British education: global expansion In a recent report, International Education Strategy – Global Growth and Prosperity, the UK government went some way to

education

acknowledging the importance of an international element to British education, including welcoming overseas students into schools and higher education institutions in Britain.

In 2012/13, there were nearly 26,000 international students studying at over 1,200 independent schools in the UK on a fee-paying basis, and the Independent Schools Council believes that international student numbers in independent schools could increase by 3 per cent per annum in the near future.

The UK government is keen to increase those numbers, and also recognises the diversity international students in the UK bring to the education sector, helping to provide an international dimension that, it believes, benefits all students. “Engagement in international education enhances the reputation ... of UK institutions,” says the International Education Strategy report. “The experience of students in UK education helps to create good relations that will enable successful engagement with the next generation of global leaders. International education also helps to strengthen overseas business, research, social and cultural links.”

But not only are British institutions welcoming international students into the UK, branches of highly regarded independent schools are quickly establishing foreign campuses, and many British-run schools have been offering a British education to globally mobile families for years. In 2012, there were 1.4 million pupils studying at British Schools Overseas; this includes around 19,000 who

were studying at overseas campuses of UK independent schools. The number of students at English-medium schools worldwide is forecast to increase to over 4.4 million in 2017 and to nearly 6.2 million in 2022.

John Bagust, a member of the COBIS executive committee and head of primary schools at Prague British School, said at this year’s COBIS annual conference, “With a perpetually changing world, there are now more people working abroad than ever before, and that change in work patterns has created a huge need for high-quality British schools abroad. As leaders of these schools, we have been given a huge challenge to ensure that these ‘global nomadic’ families, not only from Britain but from across the world, have access to the best British education can offer.”

Whether they offer a British education adapted for the international market or a learning programme designed around the successful transferability of learning for globally mobile families, what schools teaching international students seem to have in common is a level of adaptability and flexibility to meet ever-evolving needs.

“The core questions for many schools at this time are ‘what do children need to be successful in the 21st century?’ and ‘how can we adapt our school to change our learning in order for our children to be successful in the future?’,” says Henk van Hout. “Some international schools are already leading the way in developing these qualities in children’s learning.”

See the Education sections of relocatemagazine.com and smartmoverelocate.com for updates and practical advice

education

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education

Global student mobility Breaking down the barriers

Over the past three decades, the number of students enrolled in universities and higher education institutions outside their country of citizenship has risen dramatically. Gaining international experience has become a top priority for school leavers, and governments are taking steps to encourage international student mobility. Rebecca Marriage explores this growing global trend, and considers how well-placed children of relocating families are to take advantage of the exciting new opportunities it presents.

I

n 2011, nearly 4.3 million students were enrolled in higher education outside their home country. Compared with the 0.8 million globally mobile students worldwide in 1975, this represents a fivefold increase in foreign higher education students, according to the Organisation for Economic Co-operation and Development (OECD).

According to the 2013 edition of Education at a Glance, an annual OECD report which takes a close look at worldwide education developments, this significant expansion stems from an interest in promoting academic, cultural, social and political ties among countries, particularly as the European Union was taking shape.

The internationalisation of labour markets for highly skilled people has meant that students have placed a strong emphasis on gaining international experience as part of their higher education.

“There is a shift in attitude taking place,” says Henk van Hout, head of education services for Shell Schools, which serve the families of Shell employees.

But he also believes that children of globally mobile families who have been educated in an international school setting are already ahead of the game. “More students and their parents are having a stronger preference for international education. They feel less hindered by moving abroad and not studying in their base country.”

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58 | Re:locate | Autumn 2013

education

Where do students study?

In 2011, the UK was the second-most-popular destination, after the United States, for international higher education students, with 13 per cent of the global total. The US hosted most of the worldâ&#x20AC;&#x2122;s share, with 17 per cent of all foreign students. It was followed by Australia (6 per cent), Germany (6 per cent), France (6 per cent) and Canada (5 per cent).

One of the biggest underlying factors in studentsâ&#x20AC;&#x2122; choice of country of study, claims the OECD, is the language of instruction. â&#x20AC;&#x153;The prevalence of predominantly Englishspeaking destinations, such as Australia, Canada, New Zealand, the United Kingdom and the United States, reflects the progressive adoption of English as a global language,â&#x20AC;? states its report.

Lee Roberts, academic principal of London-based DLD College, an independent school for students from across the world, agrees that this is a top priority for parents and prospective students. â&#x20AC;&#x153;The UK is viewed as having a very high-quality education system, and this is desirable and highly sought after,â&#x20AC;? he says. â&#x20AC;&#x153;Learning in an Englishspeaking context facilitates a more global outlook and eases communication between a wide range of nationalities.

Parents and students value this and see it as enhancing future employment prospects. â&#x20AC;&#x153;The distinct advantage of attending a good international school is to acquire the maximum grades possible and develop the softer elements of advantageous

social connections and networking. Doing this in an English-speaking environment has real value for future employability and long-term success.â&#x20AC;?

Government promotion of international mobility However, governments are also making attempts to broaden studentsâ&#x20AC;&#x2122; horizons and help them understand the worldâ&#x20AC;&#x2122;s languages, cultures and business methods better. â&#x20AC;&#x153;One way for students to expand their knowledge of other societies and languages, and thus improve their prospects in globalised sectors of the labour market,â&#x20AC;? says the OECD report, â&#x20AC;&#x153;is to study in tertiary institutions in countries other than their own.â&#x20AC;?

The British Council has launched a new UK-wide campaign, known as Generation UK, to encourage and support student mobility to China. The campaignâ&#x20AC;&#x2122;s goal is for at least 15,000 UK students to either study or gain work experience in China by 2016, with the aim of creating a new generation of more globally, culturally and businessaware young people. Recent figures suggest that about 3,500 UK students studied in China in 2011. Generation UK aims for this number to increase by at least a third by September 2016.

Discussing the wider impact of the campaign, Joanna Burke, director of the British Council China, said, â&#x20AC;&#x153;In a time of great economic uncertainty, the benefits of gaining international experience are hard to overestimate, and it

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is a vital step that needs to be taken in order to keep the UK competitive.”

This initiative forms part of the UK’s Outward Student Mobility Strategy, which aims to boost the number of students gaining international experience from overseas study and work placements.

During the launch of the strategy, Universities and Science Minister David Willetts commented on the benefits of overseas study. “Studying abroad offers students the chance to experience new cultures, understand different ways of working, and develop crucial language skills,” he said. ”Too few UK students currently go overseas, which is why we are investing in this programme. To compete in the global race, the UK must create graduates with a global outlook that makes them more attractive to potential employers and benefits the wider economy.”

Globally mobile families It does seem, however, that children attending international schools, which are often the first choice of families in global transition, do not suffer from the same barriers to enrolment in higher education study overseas. For example, at the Prague British School in the Czech Republic, which teaches the English National Curriculum and prepares students for

the international GCSE and the International Baccalaureate (IB), students have gone on to study at universities in the UK and Europe, as well as in Asia and North America.

“There has been a change in mindset over recent years about university attendance”, says Henk van Hout, of Shell Schools. “Today, students know they don’t have to be restricted to the university choices in their base country; they can go to university in any country where the faculty meets the needs of their area of expertise.”

Annual research commissioned by ACS International Schools amongst university admissions officers in the UK tells us that the top ten attributes admission officers look for, in addition to academic qualifications and grades, include an awareness of global or cultural differences. A recent report published by the CBI shows that 47 per cent of employers are dissatisfied with graduates’ international cultural awareness, and 55 per cent with foreign-language skills.

These two pieces of research serve to reinforce the strong emphasis that both academia and industry continue to place on the willingness of students to be globally mobile and to gain international experience – both of which are likely to be second nature to children of families who have gone through the process of international relocation.

W CO H Y ME W A E’ N RE D SP SE EC E IA L

See the Education sections of relocatemagazine.com and smartmoverelocate.com for updates and practical advice

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Interdean International Relocation Contact: Rob Lucas

Paragon Relocation Contact: Liam Brennan Tel: +44 (0)20 7559 3412 Email: lbrennan@paragonrelocation.com Website: www.paragonrelocation.com Area: Worldwide

Dwight School London Contact: Mrs V Rose Tel: +44 (0)20 8920 0637 Email: vrose@dwightlondon.org

SIRVA Worldwide

Website: www.dwightlondon.org

Contact: Alistair Murray

Area: North London

Tel: +44 (0)1793 606527 Email: alistair.murray@sirva.com

International Community School

Website: www.sirva.com

Contact: Matthew Cook

Area: National & International

Team Relocations Contact: Colin Atkins Tel: +44 (0)20 8955 1312 Email: colin.atkins@teamrelocations.com

Tel: +44 (0)20 7402 0416 Email: matthew.cook@ics.uk.net Website: www.icschool.co.uk Area: Central London

Website: www.teamrelocations.com

International School of London (ISL)

Area: Worldwide

Group of Schools Contact: Heather Mulkey

Hyde Park Residence Contact: Heike Taylor Tel: +44 (0)20 7409 9000 Email: heike.taylor@hpr.co.uk Website: www.hpr.co.uk Area: London

SACO The Serviced Apartment Company Contact: Clare Ace Tel: +44 (0)845 122 0405 Email: reservations@sacoapartments.com Website: www.sacoapartments.com Area: National & International

SPOUSAL ASSISTANCE/ CAREERS

Time Relocation

Tel: +44 (0)1483 750409

Profile Locations

Contact: Val Gascoyne

Email: admissions@islondon.org

Contact: Fiona Murchie

Website: www.islschools.org

Tel: +44 (0)1892 891334

Area: London, Surrey, Qatar

Email: careers@profilelocations.co.uk

Tel: +44 (0)20 7989 0741 Email: info@timerelo.com Website: www.timerelocation.com Area: National & International

Website: www.profilelocations.co.uk

International School of Macaé

Weichert Workforce Mobility

Contact: Leslie Anne da Mota

Contact: Andreas von Strachwitz

Tel: +55 (22) 2765 5199

Tel: +44 (0)1293 813838

Email: admissions@ismacae.com

Email: avonstrachwitz@weichertwm.com

Website: www.ismacae.com

Website: www.weichertworkforcemobility.com

Area: Macaé, Rio de Janeiro, Brazil

Area: Worldwide

REMOVALS AND STORAGE

Kent College Canterbury Tel: +44 (0)1227 813 981

Contact: Neil Bishop

Email: registrar@kentcollege.co.uk

Tel: +44 (0)20 8391 8269

Website: www.kentcollege.com

Website: www.bishopsmove.com Area: Worldwide

DT Moving Contact: Tim Daniells Tel: +44 (0)20 7622 4393 Email: london@dtmoving.com

Jobs

Contact: The Registrar, Mrs Jayne Simpson

Bishop’s Move

Email: neil.bishop@bishopsmove.com

Area: National & International

Area: South East

TASIS The American School in England Contact: Karen House Tel: +44 (0)1932 582316 Email: ukadmissions@tasisengland.org

Website: www.dtmoving.com

Website: www.tasisengland.org

Area: Worldwide

Area: West London, Berkshire, Surrey

www.relocatecareers.com

Industry jobs at: www.relocatecareers.com

A must-attend event for talent mobility professionals:

Some of the confirmed speakers to date include: Stefan Hofer, Abbott Laboratories

COMPLIM

Angela Lane, AbbVie, Inc.

EN

TARY registra tion for first-tim e corpora te HR attende es

Kevin Oakley, Alcon Labs Janet Qian, Bayer Corporation Kevin D. Purdy, GMS, Boeing Elena Anderson-De Lay, GMS, The Brookings Institution Linda N. Straw, CRP, GMS, The Coca-Cola Company Denise K. Clemens, Corner Bakery Corporation Silke Dundon, Dell, Inc.

The Path to New Ideas

Katie Marie O’Connor, The Dow Chemical Company Lisa Peck, EY

WORLDWIDE ERC® GLOBAL WORKFORCE SYMPOSIUM

Sunday D. Rubenstein, CRP, GMS, EY

OCTOBER 23-25, 2013 HILTON ANATOLE HOTEL DALLAS, TX USA

Robert Loughran, FosterQuan, LLP

xperience the Symposium, and engage in high-level strategic information sharing, educational enrichment and idea inspiration as we explore such critical global talent mobility issues as:

Anne Ramsay, Kellogg Company

E NEW!

• •

• • • • •

Immigration Bootcamp – 8 Country-specific Options Practitioner Platforms, featuring Corporate HR Speakers Sharing Real-Word Case Studies on Commuter Policies, Expense Authorization for Global Allowances, Program Decentralization, and more Business Travel Compliance Management Aligning Talent Management & Global Mobility for Maximum ROI Global Compensation – Partnering with Tax and Mobility Service Providers Host-based Mobility Programs Small Relocation Programs – Managing the Challenges and Creating Opportunities Attendees also have the option to enroll in Worldwide ERC®’s Global Mobility Specialist (GMS®) and NEW GMS-T Strategic Talent Mobility training and designation program courses!

For full details and to register, see: www.worldwideerc.org/Pages/GWS13.aspx Media partner:

Re:locate F O R H R , G LO B A L M A N A G E R S & R E LO C AT I O N P R O F E S SI ONA LS

© Copyright 2013 Worldwide ERC®

Kelley A. Craven, CRP, Kellogg Company

May Caffi, SCRP, SGMS, Marriott International, Inc. Jim Carroll, CRP, GMS-T, MeadWestvaco Corporation Nikki L. Manna, MWH Global, Inc. Kristien Piron, Nokia Corporation Michael C. Washbourn, SCRP, SGMS, Pfizer Inc. Coeni van-Beek, PricewaterhouseCoopers LLP Amit Takalkar, Reliance Industries Lusine Meeks, Sabre Holdings Sharon Byrnes, GMS, Stryker Kate Rader, UT Southwestern Medical Center Mark A. Lozano, CRP, Wells Fargo & Company