Global moves in all shapes and sizes

People move to different destinations around the world for specific periods of time for specific purposes therefore they need different benefits to fit their needs. Most often these benefits would be determined by the duration of the time the employee would need to be in a specific international destination. Typically these move types are divided into 3 segments: Short Term Assignments, Long Term Assignments and Global Permanent moves. In this month’s Paragon Pulse the survey respondents have indicated the elements of their international program design for each of these 3 segments by responding on a survey for each segment.

1. Short Term Assignments

When companies need to send an employee to another location for a short period of time that is longer than an extended business trip they send them on a Short Term Assignment. The Paragon Pulse survey results typically defined a short term assignment as a work related trip that would last 6-12 months. In addition, the survey results indicated that 86% of respondents said that partners and eligible dependents would accompany the employee on the assignment, but that 57% of assignees would receive neither Cultural nor Language training for the trip. Language and specifically cultural training can significantly help smooth the transition of someone moving into another culture which helps employees be more successful in their new working environment. In addition, all respondents indicated that every short term assignee would receive repatriation upon their return to their home location. A thorough Repatriation process is an important element to a successful Short Term Assignment program. It helps guarantee that an assignee can integrate back into work in their home country and adjusts to life back at home.

2. Long Term Assignments

The Paragon Pulse survey indicated that 88% of those surveyed would define a Long Term Assignment as a trip lasting “12 months or more”. Additionally, the survey respondents said that 62% of assignees would receive both language training and cultural training for their assignment.  Finally, those surveyed indicated that 88% or more of Long Term Assignments include the following benefits: Goods and Services Differential, Host Country Housing Pay, Tax Equalization, Repatriation, Home Leave, and Emergency Leave. To manage a successful Long Term Assignment program there needs to be the flexibility to administer the benefits listed above for the individual circumstances of the assignee but yet the necessary program structures to insure that assignees are treated equitably.

3. Global Permanent Moves

Global Permanent Moves and Long Term Assignments which turn into localizations are significantly different from other types of moves a company may initiate. They involve a number of benefits which are only relevant to international permanent moves. For example, an international move might include a different approach to moving the household goods than is seen in other move types. Paragon Pulse respondents indicated that 60% of employees taking a Global Permanent Move would use both a surface shipment and an air freight forwarder. In addition, homesale assistance is often provided for employees in the departure location who are moving permanently while this is often not the case for Short Term Assignments and Long Term Assignments, those surveyed said that 75% of those moving permanently would receive this benefit. In the same way that homesale makes sense in US Domestic permanent moves it also makes sense in global permanent moves. However, home purchase for international moves may not always make sense given some of the barriers to homeownership to non-residents and therefore may not be included in Global Permanent Move policies.

In conclusion there are many diverse elements which make an international program function properly; including a international program design which adapts to a quickly changing workforce around the world to balance spend reduction and employee well being. 


 
 

December 2009 Survey Results 

Short Term Assignment

 
 

 
What period of time would you consider a short term assignment?
1-3 months

0%
4-6 months

0%
6-12 months

71%
Other

29%
 

 
Do partners and eligible dependents accompany the assignee for a short term assignment?
Yes

86%
No

14%
 

 
 

 
For a short term assignment, do you offer a Relocation/Miscellaneous Allowance? 
Yes

71%
No

29%
 

 
If yes to the previous question, how much do you currently offer?
$1000 and below

60%
$1000 - $3000

40%
$3001 - $5000

0%
$5001 and above

0%
 

 
For a short term assignment do you offer language training and or cross cultural training?
Just language training

0%
Just cross cultural training

0%
Both language training and cross cultural training

43%
Neither

57%
 

 
What benefits do you offer for the shipment of household goods for the short term assignment?
Air Freight only

57%
Surface Shipment only 

0%
Both

29%
None

0%
Other, please specify

14%
 

 
Which of the following benefits are typically offered to employees that are taking a short term assignment (check all that apply)?
Homesale Assistance (if applicable)

14%
Destination Services

71%
Dependent Education

43%
Spousal - Partner Assistance

29%
Goods and Services Differential

86%
Host Country Housing Payment

86%
Tax Equalization

86%
Rental Assistance

43%
Repatriation

100%
Home Leave

86%
Emergency Leave

71%
Long Term Storage of House Hold Goods

29%
Property Management Services

71%
 

 
 

 
Long Term Assignment

 
 

 
What period of time would you consider a long term assignment?
6-12 months

11%
12-18 months

33%
18-36 months or more

44%
36 months or more

11%
 

 
Do partners and eligible dependents accompany the assignee abroad for a long term assignment?
Yes

88%
No

12%
 

 
For a long term assignment, do you offer a Relocation/Miscellaneous Allowance? 
Yes

75%
No

25%
 

 
If yes to the previous question, how much do you currently offer?
$3000 and below

17%
$3001 - $5000

17%
$5001 - $7000

50%
$7001 and above

17%
 

 
Do you base this amount of family size or it is a set amount by policy?
Family Size

14%
Policy

86%
 

 
For a long term assignment do you offer language training and or cross cultural training?
Just language training

12%
Just cross cultural training

0%
Both language training and cross cultural training

62%
Neither

25%
 

 
Of those assignees with family members, who is included in this benefit? 
Assignee Only

14%
Assignee and Spouse-Domestic Partner

29%
Assignee, Spouse-Domestic Partner and Secondary School Age Children

43%
Other, please specify

14%
 

 
What benefits do you offer for the shipment of household goods for the long term assignment?
Air Freight only

0%
Surface Shipment only 

12%
Both

75%
None

0%
Other, please specify

12%
air freight, small surface shipment

 
 

 
Which of the following benefits are typically offered to employees that are taking a long term assignment (check all that apply)?
Homesale Assistance (if applicable)

50%
Destination Services

62%
Dependent Education

75%
Spousal - Partner Assistance

25%
Goods and Services Differential

88%
Host Country Housing Payment

88%
Tax Equalization

88%
Rental Assistance

62%
Repatriation

88%
Home Leave

88%
Emergency Leave

100%
Long Term Storage of House Hold Goods

75%
Property Management Services

38%
 

 
Global Permanent Move

 
 
 
 
 
If an employee is assigned to a new international location for a period of more than 3 years, does your organization localize the assignee by moving them to host payroll and local country benefits?
Yes
 
17%
No
 
83%
 
 
 
Are spouses-domestic partners and eligible dependents included with the assignee for a global permanent move?
Yes
 
100%
No
 
0%
 
 
 
For a global permanent move, do you offer a Relocation/Miscellaneous Allowance? 
Yes
 
100%
No
 
0%
 
 
 
If yes to the previous question, how much do you currently offer?
$3000 and below
 
0%
$3001 - $5000
 
60%
$5001 - $7000
 
0%
$7001 and above
 
40%
 
 
 
Do you base this amount of family size or it is a set amount by policy?
Family Size
 
0%
Policy
 
100%
 
 
 
For a global permanent move do you offer language training and or cross cultural training?
Just language training
 
20%
Just cross cultural training
 
20%
Both language training and cross cultural training
 
20%
Neither
 
40%
 
 
 
Of those assignees with family members, who is included in this benefit? 
Assignee Only
 
0%
Assignee and Spouse-Domestic Partner
 
67%
Assignee, Spouse-Domestic Partner and Secondary School Age Children
 
33%
Other, please specify
 
0%
 
 
 
What benefits do you offer for the shipment of household goods for the global permanent move?
Air Freight only
 
0%
Surface Shipment only 
 
40%
Both
 
60%
None
 
0%
Other, please specify
 
0%
 
 
 
Which of the following benefits are typically offered to employees that are taking a global permanent move (check all that apply)?
Homesale Assistance (if applicable)
 
75%
Destination Services
 
50%
Dependent Education
 
50%
Spousal - Partner Assistance
 
25%
Goods and Services Differential
 
25%
Host Country Housing Payment
 
50%
Tax Equalization
 
25%
Rental Assistance
 
50%
Repatriation
 
50%
Home Leave
 
50%
Emergency Leave
 
25%
Long Term Storage of House Hold Goods
 
50%
Property Management Services
 
25%
 
 
 



 


 
 
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