Relocation Policy

Destination Services: A Must Have?

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 on 12/18/2008 in Relocation Policy | Comments (1)

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