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Relocation

Fewer expats sent abroad due to crisis

Relocation

15/06/2009Fewer expats sent abroad due to crisis

For the staff of multinational companies, an overseas posting used to seem like an inevitable step on the career path. But now the world is in the grip of an economic crisis, a spell abroad is no longer something they can take for granted.

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According to the findings of a survey of 180 managers by London-based consultants Brookfield, more than two thirds of the major multinationals are expecting to post fewer employees abroad this year.

Nannette Ripmeester of the Dutch consultancy Expertise in Labour Mobility recognises the picture. She sees two possible responses to the crisis: either send fewer employees abroad, or economise on the facilities for expats, by cutting back on housing allowances or air tickets for trips back home.

However, spokespersons for Shell, Philips and Akzo Nobel are keen to stress that they won’t be skimping on perks for expats.

“They’re set down in the collective labour agreement – they’re agreed beforehand so you can’t change them,” says a Philips spokesperson.

Critical eye

Companies acknowledge that they are approaching the matter of overseas posting with a critical eye. These days they think more carefully whether it is really necessary to send someone from the Netherlands to an office abroad. Philips policy is already to use local personnel where possible. However, this is a strategy dating from before the economic crisis.

Boomerang

A spokesperson for Shell says it would be very unwise to make major cutbacks in the number of expats working in the Netherlands. In this country alone, around 1800 expats work for the company. If you were to send them back, the effect could be like a boomerang, with overseas offices responding in the same way. Posting personnel overseas is long-term policy and not something you should suddenly throw overboard, the Shell spokesperson concludes.

Tim van der Zanden of Akzo Nobel is also cautious about the findings of the survey:

“Posting staff overseas is a well-considered policy and certainly not an area to suddenly make drastic cutbacks.”

Protectionism

The fact remains that the crisis has put the position of expats under pressure. Because of unemployment and more protectionist policy, for example in the United States, it’s harder for expats’ partners to find jobs abroad.

What’s more, it’s no longer so routine for expats to be guaranteed the same job on their return. In times of rising unemployment, this makes an overseas adventure a riskier prospect than it once was.

Johan Huizinga
Radio Netherlands