Expat Partner Support HR Newsletter | December 2013 Welcome to the December Global Connection HR Newsletter. This quarterly publication will inform you about policy and operations and keep you up-to-date on expat partner issues. It also contains the latest news on Global Connection spousal support activities, including research and HR consultancy, and an interview with dairy giant FrieslandCampina.
TREAT EXPAT PARTNER SUPPORT AS AN INVESTMENT Most of our clients regard expat partner support as an investment – not as relocation costs – as it increases the success of the posting and the mobility. However, the cost allocation of these high-return investments requires proper attention – not least to avoid falling prey to cost-cutting exercises. ‘Penny wise, pound foolish’ cost savings A few years ago, an HR director told me that he had been unable to stop partner support cost-cutting as he was lacking the figures to show any return on investment. The board had decided that corporate HR had to cut costs, due to poor company results, and partner support costs fell under corporate HR costs. Since then, the HR director has been able to calculate the annual multi-million euro ROI (for details of the calculation, please see page 3 in our HR Newsletter, December 2012), excluding the benefits of increased mobility, and obtained approval to reimplement the old partner support programme. A board level issue Discussing this topic with a number of our clients has led to the conclusion that only one general rule is applicable for partner support costs: treat them as an investment, wherever the costs are allocated, and make the ROI a leading factor in the discussions. It is also important for boards to understand that these costs are anything but ‘relocation costs’ (similar to removal costs, for example). Cost efficiency and effectiveness As our surveys have shown, choosing cost-efficient and effective support is the only way to cut costs. Among the many best practices we have applied is switching from ‘cash out’ (‘Gucci money’) to reimbursable support. This not only leads to an increase in the effectiveness, but also to a high cost reduction as a result of the usual uptake figures (see page 1 in our HR Newsletter, September 2012). Jacqueline van Haaften
SPLIT FAMILIES ON THE RISE Research appears to indicate that increasing international mobility will lead to a growth in what is known as ‘split families’. These situations already occur in no less than 20% of international assignments, according to the Global Relocation Trends report, published by Brookfield GRS. The report notes that, in 2012, there was a marked increase in the number of employees moving abroad on long-term contracts (twelve months or more) without their partners/families. Dual careers The likely reason behind this rise, according to the survey, is the issue of dual careers, with both partners in a relationship having – and wanting to maintain – their own job. The current climate of economic uncertainty is another reason why many people are choosing not to give up a dual income. Many types of international mobility, such as short-term assignments, international commuting and extended business trips are likely to increase in the future (see also the PWC survey, on page 4 in this newsletter). Inevitably, this will also lead to a further rise in the number of split families. The pros and cons In the December issue of Global Connection Magazine, the pros and cons of split family situations are highlighted. Some of the expat partners interviewed in the article clearly found that living apart for extended periods of time took a toll on their relationship. But other partners managed to strike a balance. They note that there are some practical and psychological difficulties but that, thanks to modern communication means, it is possible for the expatriated partner to stay fully involved with the family back home. And that, they say, is of vital importance. Real concern for HR How do HR officials deal with the rise of split families? Available literature and a number of interviews published in Global Connection Magazine over the last few years and in Global Connection’s Expat & Partner Guide suggest that they generally see it as a matter of real concern – something that needs to be thoroughly discussed with all parties concerned before a decision is made. Global Connection | December 2013
1