Until a few years ago, relocations were a relatively simple business. Companies selected their most career-oriented employees, got them to pack a few belongings and move with family to the other side of the globe.

The relocations and international assignment business has come a long way since then. As globalization steadily continues, companies are now more cost conscious than ever and it has become imperative for companies to evolve. Most companies are now changing their relocation policies to adapt to the current economic, social and technological environment and also to ensure the employee receives much needed support during a move. Consequently, managing assignments have become more complex as more assignments of shorter durations have come into play.

Also, according to recommendations yielded from the recent Asia Pacific Global Workforce Summit, a macro-economic power shift away from the U.S. and toward Asian economic powers will cause policies, practices and processes to originate in the East.

How committed is the potential assignee?

In today’s complex world of relocations, no matter how simple a move may seem, the demands of working overseas cannot be underestimated. It requires a great deal of commitment from the employee, that is far greater than that of the one, who agrees to a relocate from New York to Los Angeles or vice versa. The Company must determine as best as possible how committed the employee will be on an overseas assignment.

Tools such as assignment selection, cross-cultural training, and pre-departure counseling can help resolve potential issues and bring other major issues to light. This assists in deciding if the employee is not the best candidate for an assignment and inevitably saves the Company thousands of dollars by averting a failed relocation.

The Family

Family concerns, especially spousal discontent, is one of the major reasons for failed assignments. According to a study conducted by GMAC in 2006, 67% of failed relocations were due to family discontent. How keen will a family from the United States or the United Kingdom be, to relocate to China, which is on the other side of the globe….

Spouses often feel that HR is not empathetic enough during this time. This might be due to lack of direct communication or even miscommunication of the policy entitlements. In order to avoid situations like these, it is important to establish good and clear communication patterns. Involvement of the spouse from the start of the process tends to work better as also having destination service providers provide timely reporting to HR on the status of each move.

In the case of dual career couples, it is extremely helpful in establishing the spouse’s careers prospects in the host country. Some companies are also now even looking for ways to hire spouses, who may be able to slip into available roles.

Leaving extended family behind, especially aging parents has also become a major factor to contend with.

Clearly defined, explicit and standardised working procedures and quality control mechanisms should be implemented.

In order to encourage employees to take up an international assignment, companies often factor into compensation packages, generous allowances for housing, schooling, Cost of Living Adjustments plus ‘hardship allowances’ when relocating to developing countries, where the challenges of settling in are deemed to be greater.

Importance of the 'Look See' Visit

Employers are also now offering the employee and the spouse a familiarization or a Look See trip to the potential host country, to help them during this decision-making phase. It not only provides the employee and his/ her family the opportunity of experiencing the country first hand, it can be vital in helping them decide whether they will be able to fit in to the new culture, business and family wise. It helps the employee focus on the ‘finer’ aspects of the relocation.

Ideally, the preparation for this international assignment should begin eight to twelve months in advance (most times, this is a luxury!). This allows the expatriate and his or her family to comprehend what the move will involve. It must be understood that open-mindedness is the key factor in the success of any relocation.