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ROI

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Global Relocation Trends 2012

Brookfield GRS 2012Expat assignments are a costly and complex change process. In 2011, companies spent about $9.3bn on domestic and international relocations in the USA alone. That makes it comparable to the American plastic surgery ($10bn) and the Chinese gaming industry ($9.7bn). An organization will likely spend four to five times the annual salary for every person they send abroad. Support services including pre-departure readiness assessments, cross-cultural training, language classes, home visits, and coaching amount to under 5 % of total relocation cost. I've written about it before and presented at FIGT (http://www.buildingthelifeyouwant.com/choosing-the-right-expat-support-for-every-budget/)

It appears companies are beginning to recognize that these “soft” services have a hard impact on the bottom line.

According to the Brookfield 2012 Global Relocation Trends Survey, “Respondents indicated that 6 % of assignments fail. (Author’s note: Continuing from our numbers above, that’s a $558m loss every year in the US alone.) Top causes for failure are the employee leaves to work for another company; spouse/partner dissatisfaction; other family concerns; and the job does not meet expectations.”

The top reason for early returns are family concerns: one in three expats (33 %) does not complete their assignment due to, for example, family members not adjusting to the new culture. Companies are trying to improve ROI though “better candidate selection/assessment; career-path planning to utilize cross-border skills upon return; more effective communication of assignment objectives; better assignment preparation; and mandatory cross-cultural preparation”. (http://knowledge.brookfieldgrs.com/content/insights_ideas-2012_GRTS)

These and similar surveys have been showing the same trends over the last 20+ years: to help ensure you don't lose money on international assignments, take care of the whole family. Making cross-cultural preparation mandatory is a step in the right direction.

What would it take to add personality type-aware coaching to the mix?

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Choosing the Right Expat Support for Every Budget

intl money and people
intl money and people

At the 2011 FIGT Conference, I presented the results of my brief research into Expat Support packages, and how much they actually cost. Many companies cover most of these programs, but over the last few years, many cuts have been made.

My goal still is to find out which service you, the expat, are prepared to pay for out of your own pocket? Which service could you absolutely not have relocated without?

Here's a 20-minute video of the presentation below, and I'd love to have your comments below.

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