New York – In a follow-up survey to ORC Worldwide's 2008 study 'Flash Survey: Cost Savings Initiatives', employers reported ongoing plans to reduce costs in the international arena.

"In the continuing uncertain economic situation, human resources managers struggle to deploy the right talent for the right assignment at the right cost— without adversely affecting the success of the assignment goals by cutting back on essential programs," according to Geoffrey Latta, executive vice president for ORC Worldwide's international compensation practice area.

"Many employers are in the process of re-evaluating their expatriate programmes with an eye toward taking strategic action."

Respondents reported the following top areas of policy change: compensation and incentives (cited by 34.3 percent), localisation (32.4 percent), housing (28.4 percent), cost-of-living allowances (26.5 percent) and home leave (22.5 percent).

To meet their budgetary goals, HR managers are taking steps such as reducing nonessential international travel, reviewing the need for each assignment before authorisation and deployment, tightening control of policy exceptions, projecting costs and others.

"However," Latta added, "the changes appear to acknowledge the need to keep expatriates and family members satisfied with the overall package. This trend is evident in the high percentages of respondents who, for example, are not restricting pre-assignment visits (and orientation programmes) to expatriates only or eliminating incentive premiums."

Manufacturing has been hit hardest by the recession. An analysis of participants revealed that the heavy machinery and vehicle manufacturing industry reported the highest percentage of companies decreasing their expat population. At the other extreme, life sciences is the least affected industry. Banking, finance and insurance companies were reducing expat staff at the survey average rate.

"This year continues to be difficult for all business enterprises, particularly those with global operations, whose mobility programmes are essential to the company's long-term strategic objectives," said Latta. "HR managers, as always in times of economic downturns, balance the need to implement cost-efficient programmes without jeopardising their ability to mobilise—and motivate—skilled resources wherever needed."

ORC Worldwide / Expatica

ORC Worldwide, an HR consulting firm, delivers HR management expertise and information to organisations around the globe. For more information about the survey, please visit orcworldwide.com or contact samantha.blackhurst@orcww.com.