Why Does An Expatriate Assignment Cost So Much?
Posted on 12. October 2011 by Chuck Csizmar
The one constant theme that Human Resource professionals emphasize when it come to international assignments (expatriate employees) is that the experience costs a great deal of money. Most of you reading this will simply nod your head at such a cautionary warning, yet not fully understand the why of it. Perhaps the topic doesn’t concern you, for now, but as managers who may become involved in such adventures down the road, you need to know the cause if you ever hope to manage this expensive proposition.
While companies continue to try new strategies for employing talent overseas (shorter assignments, use of third country nationals, extended business trips, shared responsibilities, etc.) two central premises remain; 1) companies will continue sending employees on overseas assignments, and 2) the cost of those assignments continues to be a big pill to swallow.
Fueling Persistent Cost
If you accept the premise that an employee sent overseas should be kept “whole” (expense-wise) with their home country situation (maintaining their income and expense exposure as if they had never left the U.S.), then certain incurred liabilities naturally fall to the company. Read the rest of this entry »
10 Global Labor Trends for 2011 and How to Manage Them
Posted on 17. March 2011 by The Hiring Site
While at HRPA 2011, Canada’s conference and trade show focusing on HR issues and trends, I stopped in to check out Howard Wallack’s session, 10 Global Labor Trends for 2011 and What You Need to Know to Manage Them. Wallack is the Director of Global Member Programs for Society for Human Resource Management, and in his discussion at HRPA 2011, he drew from several studies and surveys (EIU’s Global Firms in 2020, IBM’s Working Beyond Borders, BCG/WFPMA’s Creating People Advantage 2010, and more) and gathered input from SHRM’s Global Expertise panel to determine the 10 most prevalent global labor trends for the rest of 2011.
The business world is becoming increasingly global, yet as Wallack mentioned in his presentation, there aren’t HR standards across the globe right now. Inconsistent economies and policies add complications to an already complex mix; for example, while low job growth is an issue in the U.S. and Canada, it’s not an issue in Asia, where places like Thailand are currently experiencing 9 – 10 percent growth. The U.S. is less friendly than Canada when it comes to immigration, which can present a challenge. In addition, employee engagement is driven by very different factors around the globe: In Asia, employees want titles and learning opportunities, compensation and benefits comes down the chain; in the U.S., health care coverage is most important, then compensation, then responsibility. With that said, let’s take a look at what Wallack says are the most noticeable trends for the rest of this year:
10 Global Labor Trends for 2011
- The importance of globalization and integrating markets: Companies will become larger and more global in the next 10 years, handling operations in more countries than they do today.
—We’re living in an increasingly border-less world.
Ten Tips to Develop a Global Code of Conduct – Part 1
Posted on 17. August 2010 by International HR ForumTrue Story: What A Group Interview Is Like In Israel
Posted on 28. April 2010 by JobMobWho says you can’t prepare for a group interview? One woman’s account of her group interview adventure in Israel.
Unemployed for a few months now, I’ve been to Human Resources interviews, professional interviews, undergone take-at-home tests, on-site tests, and telephone screening (and not necessarily in that order). One day I got called from a recruitment and placement agency regarding a Marketing Communication job at an established company in Israel. The job was to be a Marketing Communication Manager at a local hitech company, be responsible for events and content management of the Web and other marketing collateral. To protect the identity, lets call the company “ABC” and say its location is Tel Aviv.
Independent Contractor or Employee?
Posted on 4. March 2010 by International HR ForumHiring independent contractors for overseas businesses can be tricky. Becoming fully aware of the local labor law and the specific conditions that determine employee vs. contractor status is critical to avoid serious compliance issues.
Read More…
“Think Globally, Act Locally” for Compensation Design
Posted on 1. March 2010 by International HR ForumBalancing global reward policies with local customs and practices is a complex and challenging task for employers operating in many different markets. This article explains how salary scales are impacted by local market conditions.
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The Easy Road to Global Compensation Success?
Posted on 18. February 2010 by International HR Forum
Principal – CMC Compensation Group
How many success stories start with the phrase, “I took the easy road”?
Most companies (@85%) with global operations tend to pay their internationally-based top level executives in accordance with some form of global compensation structure – in order to level the playing field for those with multiple country responsibilities.
However, for the rest of their international population it’s not as straightforward.
The Challenge
Companies with local national employees (hourly, professional, management) face a challenge and a risk when it comes to deciding how to reward (pay) in each of their operating countries. Do they “do as the Romans do” and follow local practice, or do they seek to create a standardized global framework in an effort to equalize pay practices?
What Would You Do As A New Compensation and Benefits Manager?
Posted on 15. February 2010 by International HR ForumAuthor:
Warren Heaps – Birches Group LLC
A few weeks ago on LinkedIn, Ravinder Bhan asked the following question:
“You have just joined a company with more than 15, 000 employees as a (Compensation & Benefits) manager. What are the first three things you would do to make a lasting impact at the organization?”
As soon as I noticed this question, I was compelled to answer it. Here is the answer I posted:
“This is truly an excellent question. For C&B to be an effective business partner and not just another run of the mill HR function, as you state above, it requires an immersion in the business.
To that end, here are my three things:
- Understand the business. Talk to the business leaders, their deputies and employees. Learn what the company does. Don’t just sit in corporate and get opinions from those at HQ – go into the field and see what happens there. If it’s a manufacturer, visit a factory. Spend time with the sales force, meet some customers. And if the company is global, and you are responsible for international as well, get on a plane and follow the same steps in the key operations overseas.
Delegation: Leadership Development in Africa – Part 2
Posted on 10. February 2010 by International HR Forum
In our previous post Leadership Development in Africa – Part 1, we explored the characteristics of effective leaders and the way to develop them. One of the important competencies of effective African leaders is delegation. In many African public and private companies, management asks us to focus on delgation during workshops we conduct for their staff. It seems to them that African managers, especially, need to learn to delegate more than they do already.
Delegation
The main purpose of delegation is to make organizations possible. Just as no one person in an organization or enterprise can perform all tasks necessary for the accomplishment of group purpose; so is it impossible, as an organization grows, for one person to exercise all the authority for making decisions.
If managers delegate poorly it will cause demotivation, frustration, slow decision making and the manager will have no time for his or her subordinates. Good delegation will save time, ensure a better distribution of workload, and ultimately lead to better decisions. And, effective delegation will help to develop, empower and motivate subordinates.
The GPHR exam
Posted on 5. February 2010 by UpstartHR
In all of the HR certification talk that I get into, I really don’t know much about the Global Professional in Human Resources (GPHR) exam.
What’s on it? Who takes it? Is it worth the effort?
Recently I had the opportunity to chat with Lori Goldsmith, SPHR/GPHR (LinkedIn, Twitter) about what her experience was like. If you’re wondering what the GPHR exam is all about, you’re going to learn from someone who’s been there and done that.
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Me: Why did you decide to get GPHR certified?
Lori: No one looks HR Smart until they make the commitment to certify and keep looking HR Smart by recertifying. I am SPHR certified so I have proven that I am domestic HR Smart, committed to my profession and development. I wanted to look global smart and prove that I can apply my knowledge and past experience in today’s marketplace. (For the record) I regretted not taking the GPHR when it was first offered. I had just come out of working in international HR and it was fresh on my mind. I work for a local employment service and support international firms, so I want my clients to feel comfortable that I am on top of my game in understanding their challenges and business dynamics. I also believe in the next 5-10 years the impact of the global workplace will affect all firms in some way.
Three Rules for Compensation Surveys in Smaller Developing Markets
Posted on 3. February 2010 by International HR ForumAuthor:
Warren Heaps – Birches Group LLC
Almost every day, I hear from a client or prospect looking for reliable market data in some small developing market, usually located in a part of the world that the big consultants have not yet discovered. After all, our company focuses on those places!
One of the most common discussion points is about the difficulty the client is having in finding a survey which meets their needs in these markets. You see, most clients have a very “developed world” view of what makes a good survey. But in smaller markets, you need to look at surveys through a different lens.
International Employment Law “Quick Facts”: Canada
Posted on 1. February 2010 by International HR Forum
Author:
Mariana Villa da Costa – Littler Mendelson
Hello Readers! The first edition of our “International Employment Law Quick Facts” was a success! Many readers commented on the article and asked me to prepare profiles for other countries. Again, please feel free to add a comment, or send me a note to let me know what you think about this post. We will try to publish additional installments in this series based on what you request, so keep checking back!
Q. What are the definitions of employee, employer and independent contractor?
A. Before going into our definitions it is important to note that in Canada, the employment practices of most employers are provincially regulated, whereas federal jurisdiction is limited to employers that deal with national infrastructure, for example, banking, railways, and airlines. Since each jurisdiction in Canada has specific legislation, it is important to become familiar with the local specifics before engaging in any labor and employment matters.
Tips For A Successful International Relocation
Posted on 28. January 2010 by International HR Forum
Author:
Matthew Shore – Move One Relocations
[Editor's Note: We are pleased to welcome Matthew Shore as a Guest Author. Matthew is Communications and Marketing Manager for Move One, a leading global relocation, moving and logistics firm serving Eastern Europe, Asia, Middle East and Africa. He is an expat himself living in Budapest, Hungary, with his wife.]
It’s no secret that the stresses of international relocation on employees and their families can take their toll. The magnitude of its effects can be on par with divorce or a death in the family. Delivering the right support for employees and their families during the first critical months after their move may mean the difference between the success or failure of an assignment.
Focus on the Family
It is often the family of the assignee that experiences the most difficulty when relocating internationally. For example an accompanying spouse who has left his or her friends, family and other support networks to relocate can experience profound feelings of loss and displacement that can persist for long after arrival in the new location. Providing new expats with the means to become self-sufficient and thrive in their new environment is therefore vital for the success of an assignment.
Shock and Awe
Posted on 22. January 2010 by International HR ForumAuthor:
Chuck Csizmar – CMC Compensation Group
When you first look to purchase compensation surveys for your international population, it’s going to be a real wake-up call. For those accustomed to only US surveys you will find that the available data in many countries is more limited than what you’re accustomed to seeing, as are the number of companies involved. What won’t be reduced though is the expense. Quite the opposite. If you have multiple countries to deal with, your budget for credible compensation data will likely become a multiple of your US experience.
When I worked overseas my budget for compensation surveys was 3-4 times my previous US budget – and I only had to worry about Europe. What a shock that was – spending much more and arguably receiving less.
Think on it, though: each country is a separate USA, a unique national entity having country-specific labor laws, employment regulations, tax structure, competitiveness challenges and variations of economic strength. For each you will need a country-specific survey to assess the local competitiveness of your employees.
HR and Reward Challenges in Developing Markets – Beyond BRIC
Posted on 21. January 2010 by International HR Forum
Author:
Warren Heaps – Birches Group LLC
We are all hopeful that 2010 will be a better year for business than 2009. When that hoped for upturn finally takes hold, where will your company find growth? If your company is like many others, the answer to that question points to developing markets in Africa, Asia and Latin America, where growth rates are higher and opportunities are great.
Growth is Robust
Post-recovery estimates from the IMF for 2010 indicate worldwide GDP growth of 5.7% is expected, while GDP growth in developing countries is expected to climb 9.5%.
Regional comparisons are even more dramatic:
- Sub-Saharan Africa – 9.6%
- Latin America & Caribbean – 10.5%
- Middle East – 14.9%
- Central and Eastern Europe – 1.4%
- Euro Zone – 3.6%
