An energy crisis recently hit India, and the power outage forced millions to be without power, which could complicate business processes for multinational corporations with active corporate relocation programs in the country.

The power failure, which affected more than 680 million people, is considered to be one of the largest blackouts in history. These outages have come in a string, as there was a smaller incident on Sunday, which increased to a wide-enough scale to affect more than 620 million people on Monday and grew to its current level. The reason for the outage is likely due to an overuse of power from the government grid, which controls energy across the nation.

"Everyone overdraws from the grid. Just this morning I held a meeting with power officials from the states and I gave directions that states that overdraw should be punished," said Sushil Kumar Shinde, India's Power Minister. "We have given instructions that their power supply could be cut."

The continued struggles regarding infrastructure in the country have stunted its gross domestic product growth, and the issue has expanded from power issues to poor roads and shipping ports, and this makes a sufficient fix of the power system even more necessary, as India is one of the most in-demand relocation markets.

The Indian government is in the process of improving its energy capacity in order to meet up with the quickly-growing demand in the country. Within the next five years, the government's plan is to grow electricity capacity by more than 40 percent, but progress has slowed in recent months. Last month, the government planned to meet the peak hour demand of nearly 130 gigawatts, but the actual figure was close to 6 percent off that pace.

Despite the outage, officials have worked to restore power, and most regions that lost electricity have at least 40 percent supply restored. However, it has still had a significant effect on hospitals, office buildings and the mining industry.

India is growing into a strong center for commerce and investment, and many companies have already established divisions there. However, with its development, it has experienced significant infrastructure issues that could pose obstacles for corporate relocation plans. Keeping in mind that services, power and work can be interrupted, companies should ensure they have contingency plans in case overseas workers are unavailable via traditional means.

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Some transferees relocating to Beijing may not know about the city's air quality issues.

The Chinese capital has significant air quality issues which have caused a spike in lung cancer cases in the city, Independent Online, an online South African news provider, reported. Many of the issues are caused by the numerous factories and heating plants in the desert west of the city that continually pour smoke and fumes into the air. In addition, the city has a high number of drivers, which adds to local air pollution. At times, the sky in Beijing looks extremely hazy.

"On a bad day you’re going to change your plans," Chauvon Venick, an American transferee in Beijing, told the paper. "You wake up, look outside and it's a great day, you skip whatever you're going to do and go outside to enjoy it. If it’s a really bad day, maybe we'll go and do something inside."

In 2008, many Olympic athletes complained that poor air quality hurt their performances. This summer the city's air quality has been exceptionally poor but it is not much different in the winter, the news source said. In the winter, many homes use heating systems that further emit pollution.

The United States Air Quality Index ranges from 0-500 with the figures split into six groups. Below 50 is considered to safe while figures higher than 151 are unhealthy and 301 or higher is considered a serious health risk.

The summer had an average rating of approximately 170 but during last winter the U.S. Embassy reported a one day jump to 500 – the absolute worst level achievable.
Despite this, Beijing is still one of the largest cities in the world and among the most vibrant in terms of business and culture.

Companies relocating employees to the Chinese capital should take extra measures to ensure that their transferees are aware of the local health issues and risks and have access to sufficient healthcare while overseas. Furthermore, the U.S. Embassy runs a Twitter feed reporting air quality levels multiple times per day.

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Residential housing prices for prime properties in some of the world's top cities grew at their strongest rate since the end of 2010, according to a report from Knight Frank, an independent global residential and commercial property consultancy.

While stable markets are a positive, the rising prices represent an increased corporate relocation cost for many companies. This growth was cited in Knight Frank's Prime Global Cities Index, which noted an increase of 1.4 percent during the second quarter compared to the first three months of the year. In addition, overall prices rose by approximately 3.5 percent during the year ending in June.

When examining regional figures, property prices in the cities tracked in Europe rose 1.3 percent from the second quarter in 2011 to the second quarter this year, the report stated. This was much improved from the end of the first quarter, which showed a 3.4 percent decline in growth. London experienced a 10.5 percent annual growth rate in June, while Geneva and Zurich followed with gains of 6 and 5.9 percent, respectively.

In addition, Bangkok finished with the highest growth in the index with prices spiking nearly 30 percent in the past year. The Asian market as a whole experienced a total gain of 3.4 percent in prime prices.

"The appeal of cities in stable economies is being brought into marked contrast with the investment environment in weaker countries," said James Price, member of the International Development team at Knight Frank. "This city-level data should not, however, be taken as a reflection of the whole country; prime second-home destinations outside the cities may still perform well in a poorer performing wider market."

Despite the gains, future growth may not be expansive, as there is still a great deal of uncertainty in both Europe and Asia, according to the report. The economy is still struggling significantly in the wake of the recession in these regions.

With many areas still trying to make improvements in their economic situations, the world's top cities remain stable places for growing businesses Cities less affected by significant economic hardship are leading locations for significant expansion.

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Cultural differences, particularly the different meanings of gestures and body language, are important to understand when working in a new country. Proper preparation in knowing how to send and receive culturally appropriate signals can help with the success of a new assignment, according to Re:Locate magazine.

Body language signals vary by country and situation. Understanding the body language and gestures that are universal and generally accepted – and those that are offensive – aids in successful communication in the workplace and in the community.  For example, although pointing at a person during conversation is engaging in Europe, it can be perceived as rude in Asia. Giving the "thumbs up" signal can actually be helpful when making a point or showing the other employee something specific. A handshake can be tricky as well. Many Westerners feel that a firm handshake is the best way to show respect. However, in Asia, this can be highly offensive, and may be demeaning to some; a faster, lighter handshake will work more effectively.

Other hand gestures can have varying meanings as well. One example of this is the "OK sign," in which a person extends the middle, ring and smallest finger, while making an "O" shape with their index finger and thumb. This is considered to be a positive sign of acceptance to the issue at hand in the vast majority of the Western world. In Japan, this gesture signals that someone is ready to speak about specific financial issues. However, in Brazil, this is actually a highly obscene gesture, and must be avoided at all costs.

When working in the Middle East – specifically in Arab countries – a transferee must be mindful of the signals they are sending with their shoes: showing the soles of your shoes to anyone at any time is perceived as a most offensive gesture. This can be a difficult adjustment, as many Western Europeans commonly cross their legs during a seated conversation. However, this gesture can result in the exposure of shoe soles to another person, which can severely damage the relationship in Middle Eastern culture.

Proper cultural training is critical in preparing a transferee for work and life in their new country.  Sending the right signals with body language or gestures helps contribute to the overall success of the assignment.

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Transferees who are moving through a domestic relocation program and have expenses that are not covered by their employer may be eligible for tax deductions, making the transfer much less expensive in the long run.

The Internal Revenue Service explains that many moving expenses can be deducted, but it is important to note that items like meals will not be able to have the same treatment. For moving expenses to be deductible, the new employment location must be 50 miles farther away from your former home than your previous place of work was. Those who are entering into their first employment situation need to have a new job 50 miles or more from their previous home.  Additionally, transferees must have official full-time status for 39 weeks of the first year at the new location. Those who do not meet this requirement must have a specific reason that is acceptable to the IRS, including disability, separation and death.

The expense of packing and shipping belongings, including household goods, car or family pet, can be deducted. In addition, any costs for moving appliances or connecting utilities can be deducted from your taxes. Storage expenses for a foreign move are also deductible. Even expenses for items shipped later can be deducted based on how much it would have cost to move them from the former home.

The IRS calculates all moving deductions using Form 3903, which then feeds into an employee's normal 1040 tax form.

It is important for companies and transferees to keep in mind that any deducted expenses are invalid if the company reimburses the transferee or directly pays the expense on behalf of the transferee.

The company’s relocation policy will explain the expenses covered through the relocation program. In some cases, expenses are specifically not covered by the company due to the tax advantage its deductibility provides. An end-of-year accounting of reimbursed relocation expenses is helpful tool in determining expenses that can be tax deductible.

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One of the most important international relocation services that companies should have in their global relocation policy is language training for both the transferee and family. Learning and knowing the language of their destination location can ultimately help to make or break an assignment.

Multiple mediums may be needed

There are many different methods for helping a transferee and family to learn a new language, ranging from private tutoring, immersion, group classes or self-driven computer software programs.

Each method of training has advantages and disadvantages. While self-study online may have the lowest costs, it also tends to be less effective than the other types of training. Group lessons can improve conversation, but may fall short in other areas.

A combination of the various options of language training, such as some individual lessons supported by online technology and practice, may be the most effective method, depending on the learning style of the individual employee and the job functions they will be asked to perform. This combination of training allows for some self-directed study on a flexible schedule, but also adds support through personal interaction.

Additional assistance may be needed post-transfer

Regardless of what method of language training is provided, it is also important to maintain some level of support after the transferee has arrived at their destination location. After settling in, transferees may have a number of questions which their lessons and practice did not cover. Eventually, full immersion in the culture should support the previous training and allow the ongoing sessions to be phased out. However, having additional support to help them achieve their goals, at least initially, can be reassuring and remove uncertainty in the new location and culture.

Importance of language training when considering failure rates

The importance of proper language training for international transferees is driven by the fact that the relocation process represents a significant investment for most companies, and language barriers and cultural adaptation or the lack thereof remains one of the most common reasons for an international assignment to be terminated early.

According to a recent survey of multinational companies by Towers Watson and Worldwide ERC^®, 27 percent of respondents cited an inability of the family to adjust to their host country's culture as a reason for a failed transfer.  By making the initial investment in thorough language training, companies can minimize their risk and allow the employee to be properly prepared for their international relocation.

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As emerging markets continue to develop, many companies have placed an increased focus on the development of executive and management positions in international markets during the past few years.

A number of countries around the world – such as the Philippines, Vietnam and Indonesia in Asia – have experienced rapid growth during recent years. As one example, economic growth in the Philippines during the first quarter of 2012 reached 6.4 percent.

That level of expansion has helped to create a growing demand for expatriate workers in a number of industries. The Financial Times reports that a number of multinational companies, such as General Electric, Philips, Volkswagen and others, have recently expanded their international footprints.

However, General Electric's John Rice – who is posted in Hong Kong – told the Times that instead of having overseas divisions managed by executives at company headquarters, those leadership positions are now being filled by people working in that location.

While some of those positions are filled with international employees, the paper says many of the positions are still filled through international relocation services because of the experience necessary for the roles. Such a move can also have long-term benefits for transferees as well, since positions which require global relocation can be a positive career development step.

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When a transferee is heading on a global relocation assignment, it is important to consider if they have a pet. If they do, and plan to bring it with them, consulting with their relocation management company may help to avoid complications.

Moving with a pet can involve a number of different requirements, ranging from vaccinations to international clearances, and preparations need to be put in motion well in advance. For example, the European Union requires all dogs to have microchips installed before the move takes place. After this occurs, the animal must have several vaccinations, especially a rabies shot. All of these need to be administered at least three weeks prior to the flight. Relocate Magazine stressed that the shots must be given after the microchip is installed, or another vaccine will be necessary, since the data will not be recorded.

In South Africa, several different medicines need to be administered in addition to the microchip, and blood tests need to be taken. If any of the requirements are not met, a transferee could have their pet quarantined for as long as two months to avoid the threat of disease. Some countries can require multiple doses of vaccines and long clearance times once inside the border. Making sure transferees keep up-to-date with the pet's exam records, and bring these records with them, can be a way to ensure many pet-related health issues are sorted.

The total cost of moving pets varies depending on many factors such as the size, breed and age of the animal.  Additionally, country regulations may also increase cost; therefore, transferees need to make informed decisions when deciding whether to take their pet or not.  Most countries require significant, time-sensitive paperwork for the import of animals. Working with your Relocation Consultant can help ensure that this part of the process is done correctly and employees don't miss any deadlines that affect the overall timeline of the transfer.

Despite the issues, pets also provide an advantage for many people. Pets can help transferees adjust to unfamiliar areas, and they also have the ability to reduce stress levels. This may be important for transferees who have never made such a significant move and need some familiarity when traveling.

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A recent survey finds that many multinational companies expect to see global relocation assignments increase during the next two years, despite the challenges these moves can present.

The 2012 Global Talent Mobility Study from Towers Watson and Worldwide ERC^® found that 45 percent of multinational companies expect their traditional expatriate assignments to rise through the next two years, while less than 20 percent expect them to drop. That sentiment was much more common for U.S. and Asian-headquartered firms; just 26 percent of European companies anticipate an increase in international relocations.

Many challenges continue to impact the global mobility market, putting an increased focus on relocation management systems which can optimize expenses. While 69 percent of respondents cited prohibitive costs as a challenge, housing costs and cost-of-living allowances were also cited by the majority of companies.

However, the need for international business expansion and other factors have continued to outweigh those cost concerns. In addition to new markets, companies cited the transfer of knowledge and career development as reasons for a global assignment.

"Having a fluid and flexible workforce is a key competitive advantage for multinationals operating around the world today," said Peggy Smith, chief executive officer of Worldwide ERC^®. "Particularly in a shaky global economy, companies will benefit from being able to transition smoothly to newer, untapped markets. This driving business need is the reason why we are seeing more multinationals turn to, rather than shy away from, developing an effective cadre of internationally mobile employees, despite barriers of culture, language and cost."

Those costs have frequently resulted in expenses two to three times a transferee's annual salary. According to the poll, approximately two-thirds of companies spent between double and triple an employee's salary. Among U.S.-based companies, 54 percent spent more than three times that person's salary. However, just 53 percent of Asian companies spent more than twice the amount of a transferee's salary.

China remained one of the most popular destinations for internal postings, as overseas expansion there has continued to grow. The poll found that 40 percent of U.S. companies and 60 percent of Asian companies were transferring expatriates to China. Most European transfers were within Europe.

That trend has also been seen in the amount of foreign investment flowing into China. According to the United Nations Conference on Trade and Development's World Investment Prospects Survey this month, China was the top global destination for foreign direct investment.

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Many companies evaluating their corporate relocation programs may find that convincing more experienced employees to transfer is more difficult, since they are already settled and have established families. However, younger employees may not only be more easily convinced to relocate, but they could be interested in global move opportunities from the outset.

Many people of "Generation X" are not particularly receptive of mobility for many reasons, reports Human Resource Executive Online. One of the main reasons is many have not been excited about moving away from family members and familiar surroundings.

However, those in "Generation Y" are not as stubborn when it comes to the idea of moving around the country, or beyond. Nearly nine in 10 of this generation are open to a move to another part of the country, while two in five would like to participate in a global relocation, the news source said, citing a study of employees.

"They are a generation who wants to move for more money or for the next opportunity that's going to increase their capabilities," says HR executive Nina Ramsey. "Whether it's to a large city or a small town, if it's going to meet their next career-development goal, that's what's going to drive them to move."

Another factor that has affected moving sentiment for younger people is the poor job market and significant unemployment levels in the U.S. As more people leave college and look for opportunities, they may find that their current geographical area does not have many job openings, but other regions may have greater demand for their particular skill set. Having an opportunity in an area they aren't familiar with may be more attractive, as it could open them up to new and exciting situations.

Technology has also made the idea of relocating for young transferees much less stressful, as they have grown up with social media and other technologies that make it easier for people to keep in contact while far away. Since this generation is so comfortable keeping in contact with others through technology, they may be more apt to consider a move, and be more motivated for their new opportunity.

It is important for companies who want to relocate younger employees to provide the full scope of the relocation and new opportunity upfront, HREO explained. While younger transferees may require a heightened amount of guidance dealing with a new job and city, these transferees will be less expensive to relocate, as they have fewer attachments.

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