When providing benefits and services for expatriates, the emphasis is typically on what organisations perceive as the practical side of relocation. But the companies that do it best recognise their assignees have other needs as well.

Encourage your expat families to take advantage of any training

Companies generally take care of the necessary tactical details of international relocation, commonly referred to as 'hard services', but are less likely to provide 'soft services'. However, 'soft services' may be more in line with the reasons an employee was sent on assignment and may be why the person accepted the assignment in the first place.  'Soft services' also play a critical role in successful assignment completion.

These facts emerged in a worldwide benchmark study by the Society of Human Resource Management (SHRM) and Willamette University, which includes an investigation of the type of support expatriates receive from their employers.

The study, called "Emerging Trends in Global Mobility: The Assignee Perspective," looks at 548 globally mobile employees from 43 countries in 52 host countries from companies with headquarters in 17 different countries.

Typical assistance

A majority of responding employees report receiving assistance for household-good shipment/storage (84.5 percent), tax compliance (79.2 percent), visa/immigration (74.5 percent), benefits administration (66.6 percent), and destination/settling-in (66.2 percent).

Nevertheless, although family adjustment is regularly cited as a key component of assignment success—in this survey it comes in at number one, companies aren't routinely providing family-related services.

Because these services don't apply to every employee, the study includes a "not applicable" category. Accordingly, it's important to compare those who received assistance to those who did not.

With the exception of educational benefits, a majority of employees for whom the services were applicable did not receive assistance in family-related categories.

For example, only 22.4 percent of employees report receiving language training for the family, compared with 26.5 percent who did not (the benefit was not applicable for 51.1 percent). Meanwhile, 20.4 percent of assignees received cross-cultural training for the family, while 37.4 percent did not (the service didn't apply to 42.2 percent). Similarly, partner assistance appears to be lacking; only 16.1 percent report receiving it, compared with 42.2 who did not (it wasn't applicable to 41.8 percent of respondents).

Behind the numbers

Mercer Human Resource Consulting also looks at benefits and service offerings as part of its International Assignments Survey. Its last survey was in 2003, and it is currently gathering responses for its 2005 survey.

There are some consistencies as far as trends between the survey in progress and past findings, according to Carlos Mestre, head of global mobility product solutions for Mercer Human Resource Consulting, a global organisation with offices in 150 cities and 40 countries and territories. Mestre spoke with Expatica from the firm's office in Geneva, Switzerland.

Initially, there also appear to be consistencies between Mercer findings and the SHRM/Willamette study. However, Mestre points out that it's important to analyse the data.

For example, like SHRM/Willamette University, Mercer finds only about 20 to 25 percent of organisations offer family support and spouse support. "But if you look at the best companies, then I think you find a different picture; 80, 90, 100 percent of companies are offering support," Mestre says.

He also indicates that the kind of spouse support best companies are offering has changed. Ten or 15 years ago, such support was usually a monetary allowance. Since that time, it has evolved from a simple allowance to a sophisticated programme, Mestre says. And a typical programme is not just focused on economic needs; it also addresses emotional needs.

Generally, support is offered in the form of a consultant who will talk to the spouse, Mestre explains. "It's for the spouse; very often the employee isn't in the meeting," he says.

The consultant is someone who is familiar with company policy, and who can provide guidance and answers about job search, work permits, as well as what the person can expect in the host country.

Although it might be argued that the spouse can get this kind of information elsewhere, that's really not the point. "I think it's more of a show that the company appreciates what the spouse is doing," says Mestre. "It's very powerful, if it's done correctly."

Family focus

Almost all best companies are focused on family. Mercer finds that approximately 99 percent of best companies pay schooling fees.

In addition, offering language training and cross-cultural training for the family is pretty much standard, Mestre tells Expatica.

Nevertheless, expatriate families don't always take advantage of training. "The problem is that not everyone has the time to take these courses," Mestre says.

Another issue is that sometimes there's a perception that training is unnecessary. If a family has vacationed in, say, France, they may feel prepared to live there. But, as Mestre points out, a vacation is not the same as relocation.

In an effort to overcome obstacles related to family training, companies are doing more in the way of promotion. "There is more and more of a push to make people go through these courses, and there's a lot of neat stuff online," Mestre says.

Housing a mainstay

Of course this isn't to say that as companies focus on 'soft services' they ignore the hard ones. Mestre tells Expatica that although there is more emphasis on family issues, housing remains a primary focus.

But there are new trends, even with regard to housing. Twenty years ago, companies arranged for home sales, Mestre explains. But today, with housing prices soaring, a lot of companies arrange for employees' homes to be rented, or they let the assignees cover the sales.

There are also cultural differences with regard to housing, which create differences in approach. Europeans tend to keep their houses while abroad, Mestre says, while traditionally employees in the U.S. have preferred to sell.

New thinking

Companies generally work with relocation consultants for issues related to expatriate housing. This is not new in terms of service offerings, but it represents what Mestre calls "new thinking around expatriation."

There is more outsourcing of services, he says, so that companies can focus on the purpose of expatriation.

Sometimes outsourcing results in new services for expatriates. For example, some of the best companies are now connecting assignees with tax advisors, paying for half- or full-day sessions.

Best organisations are looking at expatriation from a business standpoint, which includes managing the investment, Mestre says.

The new approach is driven by practicality, as well as finance.

"The demands on HR are so high. You can't really staff internally unless you have a huge skill centre. You're better off tapping into an organisation that can do a lot of the hand-holding and other things," Mestre explains.

But make no mistake: the financial investment can be enormous. Mestre provides an example. If a company has 100 expats who are paid USD 100,000 each, with moving and other benefits this equates to roughly USD 300,000 per employee, for a total of USD 30 million in expatriate expenses.

You try to maximise this kind of investment, Mestre says.

Corporate agenda

Research shows that HR sometimes falls short when managing the various components of expatriation. However, providing benefits and services can contribute to assignment and ultimately organisational success.

Corporate leaders recognise the link.

"Probably number one or number two on a CEO's agenda is developing global talent—and it's not just sending people around the world," Mestre says. "You've got some of your best people out on assignment."

September 2005

Paula Santonocito is a freelance writer specialising in workforce management issues. She is the author of more than 500 articles on a wide range of topics.

Subject: Expatriate services, Assignment planning