HR Newsletter September 2013

Expat Partner Support HR Newsletter | September 2013 Welcome to the September 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 article about our Partner Support Policy Workshop.

FACT-BASED DECISION MAKING I believe in factual decision-making, based on our surveys. Our recent surveys confirmed my gut feeling about three important issues (see also pages 1 and 2).

Standing still = decline The on-going increase of non-familyrelated activities of expat partners, combined with a generally stagnant support volume, has led to an average drop of 8% (2011-2013) in ‘support needs met’ scores; this represents an average opportunity loss per company, participating in our demand survey, of at least 2 million euros, excluding the consequences of a reduced mobility (see the ROI article in our Newsletter of December 2012).

This is a worrying trend, which confirms that partner support is still not regarded by many companies as an investment for successful assignments; rather, it is seen as part of the relocation costs and thus needs to be minimised.

Managing expectations about paid work The majority of expat partners abandon their desire to work once they are located, which leads me to conclude that partners’ expectations need to be more properly managed. A Needs Assessment can be a great help here.

Ineffectiveness of ‘Gucci money’ The ‘support needs met’ scores confirmed that ‘Gucci money’ cash payments are ineffective and rarely perceived as partner support. Replacing this by a more effective support programme is often a challenging and time-consuming exercise, so we have decided to help the partners of our clients who offer this form of payment with a ‘Needs Assessment’ facility via our web store.

Cycles of Change workshops and coaching can now also be bought online. We remain sceptical, however, about the use of Gucci-type payments for partner support, also because many partners are not aware of the availability of the allowance.

Jacqueline van Haaften

PARTNER SUPPORT DEMAND Global Connection Partner Support Demand Survey 2013 (n=588) Ranking support demand Our partner survey revealed the following ranking for support demand: Stages

Areas

Forms

1

Settling in (25%)

Destination (26%)

Media (36%)

2

Pre-departure (21%)

Life abroad (24%)

Personal support* (34%)

3

Pre-decision (15%)

Networking (15%)

Networks/local meetings (15%)

4

Pre-repatriation (12%)

Paid work (14%)

Networks/local meetings (15%)

5

Repatriation (11%)

Alternatives (10%)

6

Settled (10%)

Repatriation (10%)

7

Repatriated (5%)

Other (1%)

* Needs Assessment, coaching, training and support desk

According to a joint Global Connection RES Forum HR survey (n=91)*, personal support was by far the most important support form perceived by HR, while media obtained only a number 4 ranking. * See www.global-connection.info under the tab ‘For HR’

53% skipped the wish to work According to the partner survey, 53% of expat partners who intended to work abroad changed their plans once they were there.

The reasons were ranked as follows: 1

The limitations of expat life (42%)

2

Option to change course (35%)

3

No suitable jobs (32%)

4

Limited number of vacation days (27%)

5

Cannot get a work permit (25%)

6

Low pay (24%)

7

Other, e.g. no part-time jobs (13%)

Interestingly, HR’s perception was that the lack of suitable jobs and work permit restrictions were the main reasons why expat partners changed their wish to work.

Decreased satisfaction due to increasing demand The 24% rise in non-family-related activities of partners (from 49% in 2011 to 61% in 2013) has resulted in an increase for support demand.

As most of the participating companies have not increased their support volume, the ‘support needs met’ scores have dropped by an average of 8% in those two years.

Proof of ‘Gucci’ ineffectiveness (Read more on page 2) Global Connection | September 2013

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Expat Partner Support HR Newsletter PARTNER SUPPORT DEMAND (continued from page 1) Proof of ‘Gucci’ ineffectiveness The ‘support needs met’ figures of one of our clients, which is in the process of switching from (part) ‘Gucci’ payments to a reimbursable programme, show the ineffectiveness of the Gucci approach. The ‘support needs met’ score of partners using the new programme is 24% higher.

Communication is essential 72% of the partners feel that the effectiveness of the support can be improved, particularly through better communication (31%). A surprising number of partners are not aware of available support programmes; ironically, they nevertheless often complain about the lack of personal support, among other things.

GUCCI – ONLY WITH GIFT WRAP “If you are still opting for ‘Gucci money’ payments, make sure it is properly wrapped up, in a gift box, together with a nice bow and a ribbon – your expat partners will then view it as a ‘real present’. Make the payment twice a year and don’t lump it together with all the other expat allowances.”

Manager International HR European MNC

ALSO FEATURED IN GLOBAL CONNECTION’S SEPTEMBER MAGAZINE* Theme – From house to home Moving to a new country means everything’s different when you step outside. Being able to retreat in a familiar, personalised space can make all the difference. Global Connection offers tips and advice from both expats and experts on how to really settle in after the boxes have been unpacked.

Personalised Support – Managing the cycle of change Moving to a new country can be disorienting: culture shock, identity crises, and the lack of meaningful activities often take a toll on expat partners. Being prepared for this major life change can make all the difference. Our Cycles of Change online coaching programme, conducted via Skype, tackles the big issues partners are facing. It gives them the skills to adjust to an unfamiliar culture. Together with a coach, they learn how to manage the various stages expats go through as they integrate.

Volume 11 | September 2013

From house to home

Relocating with a

special needs kid Long-distance relationship

Online coaching | manage the cycle of change

Why partners choose not to work

Kids – Special kids go global Parents with special needs children are faced with many questions before they consider moving abroad. Schooling options and health support have to be taken into consideration, as well as climatic conditions and language abilities. Global Connection profiles families who have successfully made the move with special needs kids, and offers help and advice from professionals acquainted with this particular expat challenge. * for spouses (B2B subscription)

MORE SPLIT FAMILIES AND LONG-TERM CONTRACTS More and more international assignees on a longterm contract are leaving their partner and/or family behind. This is one of the findings in the Global Relocation Trends 2013 Survey Report published by Brookfield GRS. About 20% of assignees who are married or are in a serious relationship leave for an assignment abroad on their own. That number has been relatively stable over the last few years. What has changed within that group is the percentage of assignees going abroad on a longterm contract – a sharp rise from 37% to 45%.

Family concerns, the career of the partner, and fear of the loss of a double income in times of continued financial instability in many parts of the world, are the likely causes of a rise in the number of split families, the report says.

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Global Connection | September 2013

ON A LIGHTER NOTE World-class contract In the 1970s, I worked as an HR manager for a small company. It was doing such good business that management decided to establish our first foreign branch. But we had no experience in posting personnel abroad and failed to include a clause in the contract for correcting the expat’s salary in line with exchange rate fluctuations. Our first expat was well into his posting when, with exchange rates very much in his favour and the cost of living very much cheaper, he received more than double his net salary!

The Board of Directors were very uncomfortable with this; our first expat earned considerably more than the chairman of the Board!

It was out of all proportion, so I was assigned the task of fixing the problem. Negotiations with the expat didn’t get us anywhere: he wouldn’t budge and kept referring to his contract.

But as soon as we opened a second foreign branch, we transferred him there. This enabled us to draw up a new contract – needless to say, now complete with the crucial exchange rate clause!

Source: Expat & Travel Stories (Global Connection)

WORKSHOP PROGRAMME – –

Introduction and survey results Changing demographics Ian Ridgwell – ECA – Support improvement, dual career issue and support of expat lights – Cost efficiency and outsourcing – Effectiveness David Enser – the RES Forum, adidas Group – Benchmarking and best practices Bettina Tang – Tang People Mobility – HEINEKEN's new programme Ellen Jansma

POLICY ROAD MAP 1.

2.

3.

4.

5.

6.

7.

Business case Timing Support areas Support forms Efficiency Effectiveness Benchmarking and best practices

IN-HOUSE WORKSHOPS Due to the huge interest in policy development, we will proceed with offering in-house policy workshops for assigning organisations. For more information, please contact us at info@gcmail.info

PARTNER SUPPORT POLICY WORKSHOP Thanks to the generosity of HEINEKEN, we held our partner support policy workshop at the Heineken Experience in Amsterdam on May 30, with Ellen Jansma, Global Mobility Manager, as our gracious host.

The workshop was fully booked, with 70 participants, consisting mainly of HR/Global Mobility Managers.

For more details, see www.global-connection.info (‘For HR’ tab).

Goal The goal of the workshop was to discuss the structural improvement options of partner support, taking into account the worrying trend of decreasing ‘partner support needs met’ scores (see page 1).

Quotes, quotes and more quotes With so many HR officials gathered together, there are bound to be many interesting points of view. We collected a number of statements that you might find remarkable, recognisable or challenging.

• “My bonus is based on a budget which has been frozen since 2009 and not on the success of the expatriation. It is penny-wise pound-foolish but, unfortunately, I have not been able to change it.”

• “It is better to have the spouse in the communication loop too, rather than only the employee. We have learned the hard way that the partner’s opinion is crucial when it comes to mobility issues.”

• “It is becoming more and more important that we individualise support. The fact that you are doing something well in one country does not PARTICIPANTS necessarily mean that you can replicate that in Including (among others): other locations.” adidas Group • “Especially in emerging markets, the big Avery Dennison question is: what do you do if you can’t help a Booking.com partner to find a job?”

Cargill • “It is also crucial to manage expectations.”

Dutch Ministries • “If an expat is experiencing dissatisfaction at Heinz home because their partner is not happy, then IKEA that will also reflect in the work environment, ING Banking and affect their chances for success. In the end, ING Insurance the cost is huge.”

Johnson & Johnson • “For expat partners, exploring other options KPMG than a paid job is important. They can change Nike course. It’s the opportunity of a lifetime, really.”

NXP • “In certain cultures, it is ‘not done’ to Philips complain. Some expats will not allow their TomTom spouses to complain to someone within the Unilever company.”

YARA • “The top of our organisation has not been expatriated; consequently, decision-making about partner support improvements is slow.”

• “Unfortunately, our support budgets are locally managed: local management, without any expat experience, doesn’t understand the needs.”

• “A lump sum for the partner is part of the salary package. It’s not easy to change that, but it has to be done.”

DIGITAL HR NEWSLETTER AND MORE Our HR Newsletters can also be distributed digitally. Please advise us if you would like to receive the digital version, as well as or instead of the print edition, or if you want to stop receiving our newsletters altogether. You can find all our HR Newsletters at www.global-connection.info (‘For HR’ tab), including related and more in-depth articles.

Global Connection | September 2013

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Expat Partner Support HR Newsletter EMERGING MARKETS – MORE EXPATS

ABOUT GLOBAL CONNECTION

The number of international assignments continues to grow, especially to emerging markets. This is one of the conclusions in the 2013 Global Mobility Survey, commissioned by the Santa Fe Group.

The survey says that 41% of internationally operating businesses expect the number of international employee transfers to increase in the coming year, while 44% expect no change. Only 15% foresee a decrease.

The mobility programmes for emerging markets reported a 10% higher growth in assignment activity than those in non-emerging markets. Three-quarters of companies say that emerging markets are important to their mobility programmes, one third even as “very important”.

The growth in assignments is driven largely by retail, pharmaceutical, and oil and gas companies. The top five hardship locations are, respectively, India, Brazil, Russia, China and Vietnam, according to the survey.

Global Connection is an independent, international organisation that is exclusively dedicated to expat partner support. Our goal: to contribute to the well-being and mobility of expat partners and consequently to the success of the posting. We have 20 years of experience and more than 250 organisations use our services. We support partners of 80 nationalities in 140 countries.

20 YEAR CELEBRATION On May 30, 2013, we celebrated two incredible decades of partner support. We held the festivities at the Heineken Experience in Amsterdam, after the Partner Support Policy workshop (see page 3). Our only regret was that we were able to invite just a fraction of the thousands of people we’ve been fortunate to work with over the years.

We were delighted to bring together a diverse group of

SERVICES FOR HUMAN RESOURCES Research: Global Connection conducts research into all aspects of partner support. Our studies include surveys among expat partners as well as HR executives. In addition, we conduct customised surveys to answer your specific questions.

Consultancy: We help organisations with, among other things: partner support policy development, ROI calculations, improving cost efficiency and effectiveness, benchmarking, best practices exchange, supplier selection, purchasing/contracting, testing plans and new initiatives. HR management and staff training is also available.

SERVICES FOR EXPAT PARTNERS Unique support model: Effective partner support requires providing the right information and service at the right time and in the right way. Therefore, we work according to a unique Triple Seven Support Model and provide a one-stop-shop for expat partner support.

7 STAGES Pre-decision Pre-departure Settling in Settled Pre-repatriation Repatriation Repatriated

7 AREAS Life abroad Destination Networking Paid work Alternatives Repatriation Other

7 FORMS Needs assessment Media Support desk Network Local meeting Coaching* Training* * incl. test/assessment

former Heineken Partner Network (HPN) committee members, Global Connection Coordinators, clients, potential clients, and industry experts. In total nearly 200 participants.

Speeches and award presentation Later in the evening, HPN founder Ingeborg Hooft Graafland entertained the crowd with the story of the HPN’s rocky beginnings and subsequent growth. Jacqueline van Haaften spoke warmly of her involvement in HPN and its evolution into an independent company. Ellen Jansma shared an update on the new HEINEKEN Partner Support Program, which is already a remarkable success.

One of the day’s many highlights was the award given in recognition of Global Connection’s commitment to partner support.

See also photos on our website.

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Global Connection | September 2013

B2B and B2C: Our support packages are exclusively available to expat partners of assigning organisations that have a contract with Global Connection. Our books are also available to the general public and can be ordered online.

MORE INFORMATION Please visit www.global-connection.info or contact us: Business Development Managers: Irma Groenhof – irma.groenhof@gcmail.info Geke van Gurp – geke.van.gurp@gcmail.info Managing Director: Jacqueline van Haaften – jvanhaaften@gcmail.info

ABOUT THIS NEWSLETTER This quarterly Global Connection HR Newsletter is produced for all HR, Global Mobility and Talent Managers with an interest in expat partner support.

For more information, please contact us at info@gcmail.info