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Destination Services: A Must Have?

December 18, 2008 by Administrator

Global mobility, whether administered as a long-term expatriate assignment or permanent international relocation, creates a number of unique issues not experienced by employees moving within their own country.

Even if an assignee moving to France has seen “An American in Paris,” and “Amelie,” or sipped Bordeaux wine while eating steak tar tare, they are ill prepared for the differences they will encounter. Arranging for destination service assistance results in the greatest ROI of nearly any policy benefit a company could provide to its employees moving overseas. An international assignment can easily cost $1 million over a three-year period, whereas destination services, such Orientation, Home Finding, School Search, and Setting-in Services, average five thousand dollars, and even though these one-time expenses ensure that the assignee and family are knowledgeable and capable of navigating through their new environment, independently and confidently, we still see these services marginalized.

Those who have worked in global human resources and the international assignment support industry have heard this countless times, and many corporations have added destination services to their menu of policy components, but too often time or cost have reduced usage of these programs. In an article published in ERC’s “Mobility” magazine in 1994 that consisted of interviews with expatriate spouses recently moved to Hong Kong, the over-whelming plea was for assistance understanding the host city and how to start a new life there. Offering destination services to support these families was highly recommended as a low-cost, yet highly effective solution.

Unfortunately, we are still hearing from assignees today that “I had to do it all myself,” or “What help? My company did nothing.” In a recent internet survey of expatriate wives, MSI discovered that language lessons, shipping of household goods, and help finding a place to live where the three most common benefits provided, but many of those surveyed still struggled with typical settling-in concerns, such as setting up a bank account, locating recreational facilities and activities, and making friends. Comprehensive destination services can ease some of this distress, helping these newcomers understand how to mesh with the host-country norms and customs. While those who answered the questionnaire expressed initial feelings of neglect by their husband’s company, all the women thoroughly enjoyed the experience of living abroad, but wouldn’t it have been an easier road if they had been provided with the proper tools and attention in the beginning?

The costs for full destination services are actually a fraction of the overall costs for moving an employee and family overseas. And while proven effective in reducing anxiety and assignment dissatisfaction, these services continue to be one of the first programs reduced in corporate expatriate policies.

Posted in Relocation Policy & Trends | Link to this post |  | Comments (2)
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Linda Pendlebury
1/21/2009 9:06:35 PM #

This article conveys in an excellent way states one of the major issues that we seem to face every day as Relocation Professionals.  Why this is the case, when the clear facts are so clear, I just don’t understand.

In my own particular company, with some types of assignment, we can clearly demonstrate to our clients an ongoing net cost-saving against their current policy, which includes our service costs. Somehow thought, these additional indirect costs are never clearly understood and the clearer direct costs of the service are viewed as a luxury that is quickly cut in times of financial ‘tightening’ – just at the time when the Relocation Providers expertise should be maintained and used to lever the reduction of indirect costs further.

Despite this financial misunderstanding, coupled with figures that show a clear correlation between the provision of destination services and reduced attrition rates, the real message is rarely understood or believed by the financial executives.

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Linda Heinrichs
12/16/2009 7:11:56 AM #

As a provider of Destination Services for Domestic & International Relocation's to the Portland Metro area, I find it very difficult to get the word out to small and mid-sized companies. Locally, the large corporations provide these services, but are lacking beyond the fortune 500.

There is little knowledge about the difference destination can make to incoming employees and their families.  Those that do manage to find me are thrilled and find the fee's quite manageable for the quality of services & ease of transition to the Portland area.

Any thoughts on reaching the "little guys" who really need this service?

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