Benchmark with the best - study by Arthur Andersen and Cendant Intercultural, The Bennett Group - Focus on International HR

HR Magazine, April, 1998 by Rita Bennet, Heidi O'Gorman

an assignment is completed. Informal support for repatriating employees is

often an extension of mentor programs. Yet, more than half of the

respondents stated that their companies take extraordinary measures to

retain employees after repatriation.

The companies with formal repatriation programs are split on whether these

programs improve retention rates. Interestingly, the companies with the

highest attrition rates do offer significantly fewer training programs

related to working internationally

Can we assume, then, that companies with a high commitment to international

training demonstrate that they value global competencies and thus work

harder at retaining their returning assignees' and their international

experience? Best-in-class companies appear to recognize that treating their

assignees to more comprehensive services is just good business, and that by

providing their assignees with these programs, they are far less likely to

lose them to competitors at the repatriation phase.

The case for outsourcing

Five of the 32 respondents said they outsource some or all of their

international assignment program administration. While some respondents

indicated that they were evaluating their approaches to administration, most

still continue to handle policy review, cost projections, computation of

balance sheets, drafting of assignment letters and payroll functions

inhouse. External vendors are most often contracted to manage property,

conduct tax orientation, provide cross-cultural training and supply

cost-of-living data.

The jury still appears to be out on whether the top-performing companies

will turn to outsourcing of international assigment administration. The

topic seems to be under consideration by a significant number of companies.

No 'cookie cutter' approaches

With phenomenal growth on the horizon and global competition continuing to

intensify, companies at the top are leading the pack rather than following.

The survey makes evident that there seems to be no single solution or one

"best practice" in international assignment policy and practice. If there is

a best practice it is individuality; the stellar corporations chart their

own distinct courses. They seem to know that winning in the global arena

means crafting their own unique international assignment approaches for

competitive advantage.

Rita Bennett, managing director of Cendant Intercultural, The Bennett Group,

in Chicago, serves on the Institute for International Human Resources Board

of Directors. Heidi O'Gorman is manager of international human resource

consulting services for Arthur Andersen. For more information about the

survey, please contact Sarah Cuthill at Arthur Andersen (312-507-6209) or

Tracy Colquhoun at Cendant Intercultural, The Bennett Group (312-251-9000).