Executives Shun Expatriate Opportunities - Brief Article

Internal Auditor, Feb, 2000 by J. Figg

TOP EUROPEAN EXECUTIVES are increasingly unwilling to relocate to another country for their companies. Almost half of all businesses cannot fill long-term international posts, according to a new PricewaterhouseCoopers report, International Assignments: European Policy and Practice. The report also predicts that during the next two years organizations will experience a surge in intra European assignments, as well as those from Europe to the United States, making the challenge of filling overseas positions even more daunting. As a result, employers are developing more innovative ways to manage international assignments.

Many managers report that they are circumventing overseas relocation by utilizing technology such as e-mail or videoconferencing in conjunction with more frequent business trips. Nearly two-thirds of the companies surveyed said they have employees with international job responsibilities who manage those duties from their home country. In addition, outsourcing expatriate management responsibilities is a popular alternative to assigning executives overseas; in fact, 70 percent of the surveyed companies outsource all or part of their international management function.

Career and family issues were cited by more than 80 percent of survey respondents as key reasons for professionals' reluctance to move outside the country. Consequently, some organizations are implementing more innovative incentives, such as spouse allowances, home leave, accommodation allowances, and company cars, to lure their top executives into long-term overseas positions. While just seven percent of the companies surveyed have adopted this kind of flexible benefits approach, an additional 20 percent are considering these options. "Companies are realizing they need more flexible international assignment policies to attract key executives to take up international postings and responsibilities," says Man Simpson, editor of the report.

Copies of International Assignments: European Policy and Practice can be purchased from the Pricewaterhouse-Coopers Web site. Visit www.pwcglobal.com and use the search function to read excerpts from the report.