Notwithstanding the global financial crisis, Asian companies are planning to increase international assignments in the next three years, according to Lee Quane, general manager for Asia of ECA International Ltd.
Quane was the main speaker at the forum on trends and challenges in Managing Mobile Employees Globally organized recently by Watson Wyatt Philippines. He pointed to a recent survey made in the first half of the year and previous studies as the basis for his forecast. Right after the 2001 financial crisis, a survey made by London-based ECA showed that 60 percent to 65 percent of companies queried planned to increase the level of international assignments. When a follow-up survey was made in 2004, it turned out that 70 percent actually sent more workers overseas.
In the 2008 study, 60 percent of companies all over the globe revealed they will hike international assignments. Of those companies, 76 percent of companies in Asia responded positively, Quane disclosed.
“In times when economies are not doing well, companies pay more attention to their international operations, leading to more foreign assignments,” Quane explained.
He added the top destinations of expatriate workers are developing economies, led by China. Also in the top ranking as favorite expat destinations are India and Thailand.
Quane also disclosed that more employees in the 25-to-35 years and above-50 age brackets are being sent abroad, although the 36-to-50-years-old are still the majority. The shift is the result of the talent shortage in the middle age category has led to retirees being called back to the work force, particularly in the oil and gas industry.
A host of factors have made it necessary for companies to review their overseas assignment policies periodically, said Malou Barredo, consultant and senior manager of Watson Wyatt Philippines’ Human Capital Group Consulting Practice. These factors include: The changing trend in international assignments, driven by globalization, talent shortages and an expected intensified competition brought by falling birth rates in Western and industrialized nations and the impending retirement of baby boomers.
Barredo also recommended that firms go beyond compensation when reviewing these policies. Other issues such as life after the foreign assignment, children’s education, the extended family and partner’s career must also be taken into consideration.
Citing a study by McKinsey, Barredo identified three key factors in global talent management. She stressed that firms that score high on these factors have a 70 percent chance of reaping higher profit per assignee. The three vital factors are: ensuring global consistency in management practices, achieving cultural diversity in a global setting and developing and managing global leaders.