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Trying before you buy 10/08/2004 00:00

Why are pre-assignment visits worth the expense? By Mary van der Boon

In conventional expatriate relocation, the first step is generally to have the assignee and his/her spouse pay a (brief) orientation visit to the country in question, either before or after the contract is signed.

The purposes of the visit are twofold: to provide a quick overview of living and working conditions in the host country, and (from a human resources perspective) to prevent uncomfortable future discussions that begin with "I had no idea" and "why didn't you tell me?"

The relative cost-benefit of the pre-assignment visit has long been a topic of discussion in International Human Resources.

Placing increasing emphasis on streamlining and outsourcing (both done with a firm eye on the bottom line), some companies are moving towards a lump-sum package where the expatriate, and family, essentially arrange their own transfer.

In another global trend, many multinationals don't actually have 'expatriates' anymore.

They have internationally-mobile employees who can be re-assigned anywhere in the world, on a sliding pay scale that is designed to make this mobility attractive.

In both scenarios, the pre-assignment visit falls by the wayside.

Most relocation experts, however, agree with expatriate family and spouse advocate Robin Pascoe:

"If you ignore the needs of the family, you are just asking for an assignment to de-rail", says Pascoe.

"Human resources have the power to make overseas postings work, by adopting new policies and changing attitudes. Support services for your expatriates do not have to cost a lot to make a huge difference."

According to PriceWaterhouseCoopers IHR is getting the message. In PWC's recent international assignments trends survey they conclude it has probably never been a better time for the partner and family accompanying the expatriate on assignment. Many companies are more willing to spend money on making the assignment a better experience for the partner.

The emphasis on greater indirect spending on areas such as pre-assignment orientation visits, family support on arrival in the host location and the career or education of the partner, is seen by many to be a better investment of funds than simply heaping more generous allowances on the expatriate.

This new insight on the part of IHR has not arrived a moment to soon. An increasingly young, multicultural and diverse workforce brings an important new phase to expatriate assignments - the pre-decision phase.

Pre-decision can be likened to an assignment due diligence procedure that includes a careful assessment of all aspects associated with the proposed posting.

Vital to this process is the opportunity to visit and evaluate living, housing, working, schooling and lifestyle options in the host location.

Many Generation X (22-35 years old) and Generation Y (21 and under) employees will refuse an assignment outright if this is not offered, leaving IHR departments little option than to offer the possibility.

Is the cost of the pre-assignment visit so high? According to the Employment Relocation Council in the US, the average cost of house-hunting, or orientation, trips is under US$2000 within the US, and roughly twice this figure for international moves.

Diete Swierstra, region Americas manager at Philips' Expatriate Transfers Division, says that orientation visits are "worth every penny, because they take away a lot of anxiety".

"Philips International (in close cooperation with the US company) offers employees being transferred to America the opportunity to go house-hunting and have a close look at their new host country.

"In our experience, the family is then able to get more out of their pre-departure cross-cultural training, because they have specific questions".

Responsive corporate IHR policy on relocation, spousal and family issues simply makes good, bottom-line sense.

Premature repatriation and poor job performance have serious financial consequences in international business.

IHR departments, which themselves put the blame for expatriate assignment failure on "family's inability to adjust" in 70 percent of all instances, need to follow the lead of BellSouth International's IHR Director Kris Rainey.

"We don't just take the word of the local relocation agent, we go ourselves to have a look at actual post conditions. Training and relocation support for the whole family is a necessity, not a luxury, and no-one in our organisation has ever queried the expense."

And BellSouth, along with Philips and other, like-minded, corporations, is reaping the benefits.

Mary van der Boon is an international relocation consultant and director of global tmc, international management training and consulting.

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