Geodesy - PwC

Human Resource Services

GeodesyUnderstanding and avoiding thebarriers to international mobility

The relentless pace of globalisation is increasing therole international mobility plays in achieving businessgoals. HR professionals face major challenges dealingwith new mobility patterns, working methods and anincreased demand from management to demonstratethe value obtained from expensive internationallymobile staff.

Geodesy is the PricewaterhouseCoopers andCranfield School of Management internationalmobility research initiative. Through a programme of research studies, Geodesy will deliver practical,evidence-based insights into the future of global working.

Geodesynoun: Geologic study of the size and shape of the earth

Organisations are trying to maximise the efficiency of theirinternational assignment strategies – and understanding thereasons why individuals choose (or refuse) to pursue internationalassignments is a critical factor in designing and implementing an effective strategy.

Organisations need to understand the complex array of factorsthat, in different combinations and in changing contexts, motivatetheir first choice candidates to accept the international assignmentsoffered to them.

Unless organisational and individual motivations are understoodand aligned, the significant value international assignments canachieve is likely to be wholly or significantly wasted.

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“Unless organisationaland individual motivators

are understood andaligned, the significant

value internationalassignments can achieve

is likely to be wholly orsignificantly wasted.”

IntroductionUnderstanding and avoiding the barriers to international mobility

Following consultation with Geodesy members, PricewaterhouseCoopers Human Resource Services and Cranfield School of Management selected the topic of understanding and avoiding barriers to mobility as the first in theGeodesy research series. The consensus was that there is currently a lack of empirical evidence or practical models to apply in understanding mobilitybarriers and how to overcome them.

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Analysis with a differencePricewaterhouseCoopers and Cranfield School of Management undertook a research and survey process that extended beyond the traditional boundariesof analysis in this area. We looked beyond the beginning and end of anassignment, and evaluated the entire assignment experience, including thelonger-term impact on careers.

We canvassed the opinions of individual assignees and the corporations in which they work, and analysed the “opinion gap” between their respectiveviews. We also conducted face-to-face interviews to investigate the contextand motivation that lie behind these views. Organisations participating in the survey cover all industry sectors and have more than 10,000 internationallymobile staff and employ more than one million staff globally.

In formulating our analysis, we have summarised our findings in three areas:

1. The decision to goThe key differences of opinion between organisations and individuals in the 26 “influence areas” we assessed.

2.ReintegrationWhen and how this is managed and why some people stay and others leave.

3.Career outcomesA look into the effect on individuals’ careers and how internationalassignments provide a springboard to leave the organisation or to progress within it.

Introduction

“Organisationsparticipating in the surveycover all industry sectors

and have more than10,000 internationally

mobile staff and employmore than one million

staff globally.”

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The decision to goMajor differences exist in 10 of the 26 influencesOur survey identified major differences in the views of individuals andorganisations in 10 of the 26 areas we assessed, as illustrated in the graph below.

The key messages that emerged from the opinion gap are:

• Individuals are principally motivated by building new skills and by leadership development.

• Organisations are over focused on the financial package on the way out – it is more important to individuals on the way back.

• Spousal financial support is a lot less important to individuals than organisations realise.

Our analysis indicates that individuals are conducting their own complex career risk/benefit assessment before accepting or seeking an internationalassignment. Understanding this assessment and developing motivationalprofiles of candidates is likely to become increasingly important both in theselection of assignees and to ensure that support is tailored to suit different‘profiles’ and individual expectations.

“Individuals areconducting their own

complex career risk-benefit assessment

before accepting or seeking an international

assignment.”

Executive summary of the research findings

Loss ofpartner’sincome

Interruption to partner’scareer

Financialimpact

Culturaladaptation

Distance Job-relatedskills

Potential fordevelopment

Leadership Professionalchallenges

Work/lifebalance

Assignee nCorporate n


“Valuable individuals are often left to

reintegrate themselves without real support

and guidance.”

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ReintegrationImportant to 85% of organisations but only 20% of organisations believe they get it rightThis alarming statistic explains why in the 12-month period following anassignment, turnover levels can exceed 25%. If this turnover level applied to new recruits in their first 12 months, serious questions would be asked about the effectiveness of integrating new staff. Yet when it comes toreintegrating internationally mobile staff, high turnover levels continue to be tolerated despite the significant loss of value to the organisation.

Career outcomesUnderstanding and managing the “career wobble” is the key to longer-term retention In the first 12 months after returning from their assignments, many Individualssuffer, a “career wobble”. The factors that underpin the career wobble are morecomplex than simply the effects of “reverse culture shock”. The factors thatemerged in our analysis include reduced autonomy, a lack of recognition forachievements on assignment, and an overall lack of clarity about how aninternational assignment has helped to develop a career. Unless assignees areeffectively supported during this time, there is a great risk that they will leave.

Organisations need to understand the combination of reasons and circumstancesthat prompt career wobbles and the exact reasons why individuals contemplateleaving the organisation.


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Practical applicationIssues to consider and actions to takeOur research has dispelled a number of myths and highlighted a number of issues that organisations need to evaluate. The main areas that organisationsneed to consider are:

• Adopting motivational profiling to assist candidate selection and policy development.

• Investing sufficiently in cultural adaptation support since this is a critical area for individuals.

• Spousal support policies that focus more on practical than financial assistance.

• Reassessing the financial package on reintegration since individuals are more concerned about remuneration on return than when they leave.

• Ownership for career management to facilitate reintegration and retention.

• Understanding and managing the “career wobble”. “Organisations that use international

assignments as part ofcareer development must

ensure they are notinvesting in individuals’

career prospects outsidethe organisation.”

In-depth analysisThe decision to goSuccessful policies for international assignments should reflect the individuality of the assignees deployed.

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The Geodesy survey investigated the importance of 26 different factors in making the decision to goon assignment. Based on the responses we havegrouped the findings into the following six core areas:

FamilyThe impact on partners and dependants.

Assignment deal The financial package and practical support.

CareerThe short- and longer-term considerations.

LocationThe relevance of culture, language and motivation to live overseas.

DevelopmentBoth personal and professional development,including leadership skills.

Life impactThe relevance of disruption to social and business networks.

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FamilyPractical assistance is more important than financial support

In-depth analysisThe decision to go

Willingness of partner to move

Children’seducation

Loss ofpartner’sincome

Individual perception of barriers nCorporate perception of barriers n

Organisations are very focused on the financial impact of losing a partner’sincome, which is viewed as far less important by individuals compared to other factors, such as their children’s education.

Organisations may be financially compensating where it may be unnecessary to do so. Understanding the personal issues and motivations that are unique to each family and directing measured support towards them should prove tobe a more effective approach.

Interruption to partner’scareer

CareerAlignment on the way out but is there a happy ending?


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This is the one area where there is no difference in opinion in making thedecision to go. However, when you start analysing the views on reintegration it becomes clear that many individuals see international assignments as aspringboard to develop careers in or outside the organisation. In fact, the highturnover levels experienced on reintegration indicate that, in many cases, there is not a happy ending.

Progression Position onreturn

Position onassignment


LocationCultural integration support is a key consideration


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Organisations attach more importance to distance from home than individuals.Individuals are more focused on how they will culturally adapt, and providingeffective support in this area will not only be important in supporting thedecision to go but also be critical in ensuring that individuals can integratequickly into new assignment locations.

Host culture Cultureadaptation

Language Distance Standard of living

Desire to live abroad


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DevelopmentBuilding skills and leadership development are major influencing factors for individuals

This area is the most important for individuals as they see internationalassignments as an opportunity to accelerate their own development. If there is a “career risk” of taking an international assignment, individuals are willing to take it since they can develop marketable skills that can be used in oroutside the organisation.

Job-relatedskills

Potential fordevelopment

Leadership Professionalchallenges


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Assignment deal Organisations are over-focused on the financial package on the way out

Throwing money at the barriers to international mobility is expensive andcreates a cost ratchet effect, which in many cases is ineffective. Organisationsare preoccupied with the influence of the assignment financial package in thedecision to go and are underestimating the importance to the individual of thefinancial package on return. In the reintegration analysis, the financial packagefeatures as a critical issue to individuals who are expecting to “cash in” on their international assignment experience when they return.


Pre-departurepreparation

Financialimpact

Security Repatriationpackage

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Life impactCan assignments deliver work/life balance?

Career risk Work/lifebalance

Personalnetworks

Health status Worknetworks in homelocation

When individuals are on international assignments, there is typically asignificant impact on business and social networks, which explains whyachieving work/life balance is the most important issue in this area forindividuals. As individuals seek to prove and establish themselves in new roles, there is a real risk that work/life becomes unbalanced at a critical timewhen the family unit itself is adapting to the challenges of living overseas and establishing new support and social networks.

This is another area where throwing money at the problem is no guarantee of success since practical solutions are likely to be more effective.


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Our viewMore investment in candidate motivationprofiling can pay dividends Candidate motivation profiling is likely to become an important area in internationalassignment decision-making in the future. Organisations need to ensure theyare equipped to deal with this and to move away from a preoccupation withtransaction support processes that are mainly focused on the financial package.

The decision to hire new staff typically includes some rigorous and independentassessment of skills, ability and motivations, supported in many cases by complex profiling models and techniques. The cost of an internationalassignment is three times the spend on a local hire and yet there is minimalinvestment in candidate profiling. Where it does take place, it is typically limitedto assessing an individual’s ability to adapt to a different culture. Organisationsneed to understand the motivations of a candidate and the need to create a suitable support package. If they were able to understand better the individualmotivations of their managers with top potential and react accordingly, this would be likely to have a positive impact on assignment success.

In response to these challenges, some organisations are beginning to move responsibility for international assignments to talent managementprofessionals. This reflects a move away from the transaction process, withmore emphasis on candidate assessment and profiling. Organisations that get this balance right are more likely to maximise short- and long-term valuefrom international assignments.

“The cost of aninternational assignment

is three times that of the spend on a local

hire – yet there is minimal investment in

candidate profiling.”

In-depth analysisReintegrationIf the level of turnover seen in the first 12 months post-repatriation was experienced with new recruits, an organisation would ask serious questions about itself.

Reintegration theory is not supported by actions85% of organisations regard reintegration as important, yet only 20% believethey manage it effectively. This finding is supported by the views of individualassignees, with 75% saying reintegration is not managed well. There appear to be two main causes for this. Firstly, there is lack of clarity within theorganisation about who should ‘own’ the management of the reintegrationprocess. Secondly, the initiation of the reintegration process occurs too late –only 16% of individuals were engaged in discussions about reintegration more than six months before repatriation.

Individuals are left to reintegrate themselvesOnly only 27% of individuals have a guaranteed “right” of passage home which perhaps explains why so many start considering external alternatives.Assignees are typically left to find their own way and take the initiative to secure a role following completion of an international assignment.

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With only a quarter of individuals guaranteed a right of passage home and with a lack of financial recognition when they return, it is not surprising thatmany individuals “cash in” on their international experience through leaving.

Organisations are struggling with creating accountability for managingreintegration and are typically intervening too late in the process.

27%

15%

81%

58%

Guarantee of employment

Guarantee of role at same level

Best endeavour to find a role

Physical relocation only

In-depth analysisReintegration

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Our viewAre organisations in denial on turnover levels?The majority of organisations, 75%, believe turnover for internationally mobilestaff is no higher than the average for all staff. This may reflect both a lack of information on turnover figures for internationally mobile staff and a degree of denial about the impact of current international assignment policies. If organisations do not invest in addressing these reintegration challenges, they will continue to experience high levels of turnover. The cost of this turnoveris considerable as it comprises not only the loss of valuable individuals and theinvestments made in their development, but also the time and resources thatare required to find suitable replacements.

85%

74%

67%

66%

55%

More marketable to competitors

Remuneration

Gain of external networks

Reduced responsibilities

Loss of internal networks

Why individuals leaveOur survey identified that during assignments, individual’s internal networksdeteriorate and external networks develop – this may partly explain why 85% of individuals believe they are more marketable externally since they haveestablished more effective external networks.

Remuneration level on return is more important than the financial package on commencement. This appears to reflect the individuals’ views of their self-worth – they are looking to “cash in” on the international experience they have acquired.

Case study – HSBCOrganisations can integrate long-term planning,continuous networking with the home locations, skill development and expectation management.Experience at HSBC has shown that the key to international assignmentsuccess is to provide all assignees with a “home business sponsor”. The sponsor is a senior player within the company and is responsible foroverseeing the entire assignment process from departure to reintegration.

Key role of the home business sponsor at HSBCAll secondees have a sponsor at General Manager, Chief Executive Officer or Business Head level who will:• Sign-off the secondment letter• Make sure that the proposed secondee is a member of a talent pool

and/or a subject-matter expert who is valued by the business and warrants the investment of an international secondment

• Ensure that talent pool secondees, in particular, are closely career-managed• Ensure that a suitable role, ideally utilising the secondee’s new international

skills, is found when they return.

The sponsor will also:• Review the annual performance of the secondee to understand how they

are performing and countersign the performance appraisal• Review and sign-off the pay, bonus and share awards• Make contact with the secondee on a regular basis • Review the impact of any request to extend (or localise) the assignment

on the secondee’s career plan• Agree the severance terms if a return role is not identified.

The role of home business sponsor is seen as key to the success of the international assignee programme, and key accountability is included in sponsors’ job descriptions. If a sponsor moves to a new role while the secondee is abroad, responsibility is handed over to their successor.Secondees also initiate contact with their ‘new’ sponsor if a change takes place during the life of their secondment. A range of responsibilities and processes are outlined, including how sponsors and HR business partners interact.

In-depth analysisReintegration

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In-depth analysisCareer outcomesInternational assignments are good for successful careers, but who really benefits?

Development and motivation grind to a haltThe graph below illustrates the impact for individuals in building competencies,networks and motivation during the assignment role and in the job posting on their return. The reduction is dramatic and explains why many individualsexperience a “career wobble” in the first 12 months after returning from aninternational assignment.

43%

49%

13%

Could use new technical skills

Could use new professional networks

Could not use their newly acquired capabilities at all

On assignment

Next job

98%

90%

92%

Build capability

Build networks

Increase motivation

43%

49%

7%

Use new capabilities

Use new networks

Are motivated

Using acquired skillsSince developing skills is one of the key reasons why individuals accept an assignment in the first instance, it is inevitable that frustration will grow if those skills cannot be put to good use on their return. In our survey, less than half of the managers were able to use new skills and capabilities in their new roles on their return.

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In-depth analysisCareer outcomes

Is there a career payback?Many organisations promote the need to acquire international experience inorder to progress careers. Organisations must do more to demonstrate theyvalue an international assignment. They must demonstrate commitment in a measurable and visible way. In our survey, 1 in 10 individuals suffered demotionafter an international assignment and only a third of individuals achieved apromotion. Since, in many cases, the underlying motivation of the individual isdevelopment and career acceleration, these figures explain why organisationsmay be struggling to promote the direct link between international assignmentsand career progression.

“Organisations must domore to demonstrate they

value an internationalassignment. They must

demonstrate commitmentin a measurable and

visible way.”

33%

58%

9%

Promoted on return

Stayed at same level

Demoted

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In-depth analysisCareer outcomes

Our viewManaging the “career wobble” is the key to sustaining value from international assignmentsThe extent to which individuals experience doubt about their career options on return to an organisation is determined by a combination of several factors.For organisations to ensure that they retain the individuals in whom they have made considerable investments, the relationship between an individual’scapabilities and the challenge of the role in which they find themselves onreturn is critical. Different combinations of role and capabilities can give rise to very different scenarios, each requiring a specific management approach.

For example, individuals may feel particularly stretched by a new role and feelthat they are not capable of performing effectively. Those individuals will needspecific forms of support and assistance. In contrast, individuals at the oppositeend of the spectrum (ie with enhanced skills, who return to a less demandingrole) will need to have their expectations managed carefully if they are not tolook outside the organisation for a role that they believe suits their enhancedskills and abilities.

A specific combination of factors will determine an individual’s willingness to take on an international assignment, similarly, a variety of influences andcircumstances will shape their perception of their careers on their return.Organisations committed to sustaining value from international assignees mustensure that they understand the specific circumstances for each individual and manage their experience effectively.

ConclusionRetaining the talent that makes a differenceUnderstanding the individual and corporate views of barriers to mobility supports more effective assignment management and reintegration.

Aligning perception and realityOur research clearly demonstrates that many organisations’ internationalassignment policies fail to reflect the varying motivations of individualsconsidering an assignment. The different emphasis that organisations andindividuals place on the factors influencing the decision to go on internationalassignment create a number of perception gaps.

For individuals, personal circumstances and their career stage determine the relative influence of a diverse range of factors motivating or impeding their decision to go. Organisations need to understand how these factorsoperate in a variety of contexts, and using that knowledge, begin to customisethe incentives and support that they offer to encourage the take-up ofinternational assignments.

The “career risk/benefit assessment”Individuals undertake their own career risk/benefit assessment whenconsidering an international assignment. Based on our experience, we have identified four distinct assignee profiles and summarised below the behaviour that typically underpins their decision-making.

Adventurer: The generation “x” expatriate is more interested in acquiring skillsand experience. The right position is a critical factor in the decision process. If their partner is working then practical assistance in finding work locally may be important as the partner is more likely to be in the early stages of buildingtheir own career. These individuals are likely to be less loyal, and if organisationswish to keep these employees, they should understand and communicate howthe international assignment will integrate into their career development duringtheir posting. Waiting until the end of the assignment may be too late.

Ambitious manager: The two strongest factors are the need for internationalexperience to accelerate their career and the positive family impact of theexperience of living overseas. A balance must be struck between these twomotivations. Without sufficient “family spirit” or support while on the assignment,there will be little an organisation can do to persuade this type of candidate to go. Research shows that additional financial compensation is no guaranteeof success here.

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Skilled worker: These individuals are more likely to be driven by the financialimpact of the assignment and so a competitive financial package will be a key factor. Also, the older a potential candidate, the greater the relevance ofspecific skills. There is a major risk in asking this group to undertake a job they are not skilled to perform, as they will expect to be paid a premium fordoing so and may fail to adapt adequately to ensure success.

Seasoned executive: This group is defined not only by age or tenure but by their status in the organisation and potential effectiveness in the role. The financial and/or partner impacts are less relevant to this group as they are likely to be financially secure with either an older family in later education or to see the benefits of living overseas for younger children. There is anexpectation that the financial impact of supporting their children’s education will be provided and there is likely to be a strong family spirit supporting themove. There is more emphasis for this group on personal health and security,factors that are likely to increase with age. Also, the challenge of the role is a key factor in their decision to go.

Key considerations for different assignee profilesBased on the assignee profiles above, we have summarised in the table belowthe key individual influences and critical issues that organisations need toconsider when making the offer of an assignment, reintegrating and sustainingcareer management.

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ConclusionRetaining the talent that makes a difference

Corporate issues to manage

Assignee profile Key individual motivations Decision to Go Reintegration Career outcomes

Adventurer Building skills and experience Practicalities are ignored “Cash in” on experience Overtrading

Longer-term career impact Candidate selection Loyalty Overpaying

Ambitious Career acceleration Family vs career Little fish in a big pond Career stagnationmanager “Payback” on return Passage home Career “payback” Leveraging new

internal networks

Skilled worker Matching skills to role Package Overpaying Assignments become the career

Life disruption impact Role objectives Competitor networks Staying skilled

Seasoned executive Challenge of role Family support External networks threat Peer progression

Reintegration status Risk reward Using experience

Issues to consider and actions to takeOrganisations that wish to improve the success of international assignmentsneed to assess their approach to each of these stages and create a detailedapproach to managing each of them.

Supporting the decision to goBetter profiling of candidates, clear accountabilities and ownership of theselection decisions will help to create clarity. Adaptable policies along with avisible commitment to ongoing support will have a positive impact on ensuringthat the top talent is persuaded of the value of an international assignment.

Achieving smooth re-entryThe survey shows that reintegration is difficult for international assignees –so difficult that many leave the organisation and the consequent cost isconsiderable. Individual assignees must feel they are supported in thedevelopment of their careers and organisations need to manage reintegrationactively. Specific responsibilities are required that stress a sponsorship role, so that individual assignees feel that they are supported in the development of their careers. Organisations need to manage and track how well theyreintegrate international assignees and use this information to refine andimprove their approach.

Steadying the “career wobble”Many different factors combine to create the uncertainty, disillusionment orfrustration that can prompt an individual to leave an organisation. Organisationswith a clear vision of possible outcomes from international assignments areable to communicate that clarity and are more likely to retain their top talent.

Our survey demonstrates that whilst there are presently some significant gaps between individuals’ and organisations’ perceptions of the barriers and motivations for international mobility, there are also some clear andstraightforward measures that can be taken to address these. Investing in the appropriate tools and techniques to bring about a closer alignment of these views, will allow organisations to tailor their policies to ensure that theycan develop their employees through international assignments and reap the rewards when it is time for them to return.

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ConclusionRetaining the talent that makes a difference

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Robbie Wigley-JonesE [email protected] +44 (0) 121 265 5584

David WignallE [email protected] +44 (0) 20 7804 5249

Dr Michael DickmannCranfield School of ManagementE [email protected] +44 (0) 1234 751122

www.pwc.com/geodesy

ContactsPricewaterhouseCoopers Human Resource Services

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PricewaterhouseCoopersHuman Resource Services

PricewaterhouseCoopers Human Resource Servicespractice works with clients who strive to make their people a sustainable source of competitiveadvantage. Our strategy is built on our own belief in developing our people to be creative and effectiveteam players committed to outstanding client service.We bring the ability to take fresh perspectives, tothink differently, and to develop and implement newand value adding solutions.

We work in close relationships with clients to offer practical, multi-disciplinedapproaches to the increasingly complex challenges facing businesses. One ofthe main challenges is to create environments in which their people can workmost effectively. Our Human Resource Services practice brings together all of the professionals working in the human resource service arena – tax, benefits,retirement, communications, financial planning, international assignment, equity, culture and change, compensation, strategy, regulatory, legal andprocess management – affording our clients an unmatched breadth and depthof expertise, both locally and globally.

Our expertise in tax, law, actuarial, accounting and compliance issues,combined with our knowledge of employment best practices, sets us apart.

Human Resource Services

© 2005 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

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