February 10, 2011 by MSI
At the
Worldwide ERC® 2010 Global Workforce Summit this past
October, the focus of many sessions was the return on investment (ROI) of
expatriate assignments and the talent management systems that address this
issue.
Only 14% of global mobility managers report they have any
type of initiative to determine the ROI. The top reason the others give for not
having an initiative in place? There has been little internal pressure to do so.
However, with the costs of an average expatriate
assignment often at a high-priced level (one-and-a-half to four times the cost
of a local employee); the justification of sending employees abroad is
now under intense scrutiny by global organizations. So, what specifically can
an organization do to measure the ROI of the expatriate assignment?
The place to start is to determine what the costs
are and what they consider to be a successful assignment and then track that
information. According to data issued from Mercer, only 31% of companies keep
information on international assignment costs in a centralized database and
that only five percent have any kind of process for tracking the ROI of global assignments.
Tracking aside, the real
challenge tends to be for the organization to define what it considers to be a
successful assignment, because it does not fit a universal standard and also
faces inconsistent treatment across the organization; however, standardization
does become easier in organizations with shared service centers that handle
assignment administration.
Successful HR leaders and
global mobility managers are looking to make strides by enhancing the quality
of their discussions regarding assignments and linkage to business
effectiveness. Some of the practice
principles organizations may want to consider include:
- Be explicit about the individual’s objectives for the expatriate
assignment and ensure that those tie-in with the organization’s overarching business
strategy.
- Ensure that assignee selection addresses the assignee, home and host
sponsors of the organization, and the business goal(s).
- Be explicit about the assignment purpose and the assignment-specific
objectives to be achieved.
- As the purpose of the assignment changes, be sure to recalibrate both the
purpose and the corresponding business objectives.
- Manage the performance appraisal process during the assignment by
keeping a focus on the achievement of the assignment objectives and address
longer-term career development.
- If the assignment objectives have been achieved, make an evaluation of
whether or not the assignment should be terminated.
- Take steps to prevent repatriate disaffection
and have the next role in the expatriate’s career development outlined.
- Periodically review the performance of the global mobility policy and
benchmark results.
Share with us your current challenges and successes…
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