Findings from a Survey of European Based HR and Mobility Professionals A Survey Commissioned by Interdean, March 2010.

A Snapshot of European Controlled Programmes

This report provides a unique European-wide perspective of those international and global relocation programmes that are controlled from within Europe.

Commissioned by Interdean International Relocation, Mobility Challenges 2010 is a survey of 137 leading international organisations operating international relocation programmes out of Europe.

The survey questioned European based HR and Mobility professionals on a number of areas relating to their company’s international mobility programmes.  The survey asked them to prioritise these based on their expectations for 2010 based on their company’s objectives and factors affecting their business.

KEY FINDINGS
 
Cost Control Is King

It is not the greatest surprise that cost control topped the list of priorities for businesses managing relocation programmes in 2010.

Across the companies questioned in the survey, 82% of all respondents defined “controlling costs in 2010” as a high priority for their organisations.

Comments such as “In the current market scenario, cost control is of utmost importance”, and “It is costs that make the difference between profit and loss at the moment” were phrases used in relation to costs.
A further point to consider is the meaning of the term “cost control”.  Surprisingly the terms “cost cutting” and “cost reduction” were only mentioned twice, with all other comments referring to challenges facing mobility departments trying to identify and manage their costs. Most notably, a key challenge identified by HR and Mobility professionals related to managing costs against fluctuations in currencies, housing prices and rental costs, etc.

German and Scandinavian managed relocation programmes took the strongest position towards managing costs, with 100% of respondents in both regions identifying it as a high priority for 2010.
The survey also identified that 89% of companies who relocate smaller numbers of relocations per annum put a higher priority on cost control compared to 81% of those with larger relocation programmes.

Keeping Up to Date With Tax Compliance

Tax compliance was ranked the second highest priority by the total sample population.
54% said that “ensuring their relocation programme has adequate reporting for tax and compliance reasons” was a high priority.  Comments from respondents indicated that where they had a system in place, it was important to keep up to date with changes in legislation. As evidenced in comments such as “While we are fairly confident that we are on target with our tax and compliance issues, we need to keep up to date with changes in legislation.”

Respondents from Iberian countries placed the greatest emphasis on tax compliance, with 69% saying it was a high priority for their business. This is a whole 15 percentage points above the standard from the total sample population.

Significantly, organisations relocating large numbers of employees placed less of an emphasis on tax compliance. Comments received from companies relocating large numbers of employees indicated that they already had sufficient systems in place, illustrated by comments such as “No material changes are necessary at this time.”

Talent Management Of Most Importance to Larger Relocators

Relocation has enabled companies to cast broader nets in terms of recruiting specific skills from overseas and reducing barriers to them taking up these roles in foreign locations. In the event of restructuring, businesses will also often be required to repatriate employees. Relocation is also utilised to develop staff, with companies actively seeking people with assignment experience for specific roles and using assignments as a way to provide training and development for employees as part of their career arcs.

Of the people questioned, 42% identified international workforce resource planning as being a high priority.  
Of the people questioned, international resource planning was more highly prioritised in companies who relocate larger numbers of employees per annum, with 69% identifying it as a high priority, compared to 31% within companies who relocated smaller numbers of employees.

Organisations in Switzerland, Germany and France placed the highest level of importance on international workforce resource planning. 79% of Swiss respondents, 62% of German respondents and 60% of French respondents identified it as a high priority.

The region that placed most emphasis on repatriation management was Scandinavia, with 75% of companies listing it as a high priority for their business. Businesses relocating larger volumes of employees per year were also more likely to prioritise repatriation management (40%) over companies who relocate smaller numbers of employees (30%).

Repatriation Management Critical In Scandinavia

Effective management of repatriation has become a significant test for businesses. How do you manage the repatriation of an assignee returning home? Is there a position for the employee once they return? How long do returning employees stay within the organisation? And how long are their skills retained?

The survey identified that 38% of the total sample population listed this as a high priority for their relocation programme. Comments provided by respondents hinted at the difficulties faced in managing repatriations “From experience, this is without a doubt the hardest part of an expatriation”, whilst others were obviously at the early stages of developing their repatriation programmes, saying they are “starting with the planning stage!”

A minority of respondents stated that they already have effective repatriation programmes in place that satisfied the needs of their business “we are confident that we are doing most things right, although we are always open to constructive feedback.”

The region that placed most emphasis on repatriation management was Scandinavia, with 75% of companies listing it as a high priority for their business. Businesses relocating larger volumes of employees per year were also more likely to prioritise repatriation management (40%) over companies who relocate smaller numbers of employees (30%).

KPIs Still Key to Relocation Programmes

KPIs (Key Performance Indicators) are a common method of monitoring performance of a relocation programme, with 36% of organisations across the total sample population listing KPI development as a high priority, with those companies listing it as a low priority due to the fact that they were already in place.
HR and Mobility professionals based in France (26%), Switzerland (43%) and UK & Ireland (43%) placed most importance on the development of KPIs.

An important note to consider in the development of KPIs is how to ensure they remain relevant, ensuring they do not become overly complex or too numerous that they lose their practical application.
 

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Interdean provides world-class international relocation services to a customer base of blue-chip clients and their employees on a global basis.Established in 35 countries with 47 offices throughout Europe, Interdean’s dedicated team of professionals provides a highly personalised service, managing every aspect of the relocation process.