Companies Warned To Rethink Overseas Assignments

By Fiona Moore, for 19 November, 2014

PwC, a professional services firm, says that the number of employees on global assignments is predicted to increase by 50 percent by 2020, but that company resources are at risk from sending the wrong people to the wrong places, overpaying expats, and losing talent due to having no plan for expat staff when they return.

The findings appear in a new PwC report, Modern Mobility, which suggests that short-term assignments in particular are set to rise.

However, more than half of 200 global executives surveyed by PwC think that global mobility programs currently fail to deliver value for money. Just eight percent of companies in the study were able to accurately put a cost on their program, and while only nine percent measure the return on their investments. Three in ten organizations were found to be unsure about how many of their employees work overseas each year.

Respondents rated tax and immigration compliance as the main challenges to moving employees, followed by security considerations and employees being reluctant to leave home country pension plans. They also said Africa is the most challenging region to move people to, followed by the Asia-Pacific region and South America.

Peter Clarke, of PwC, said that the shift to short-term assignments means that companies "are going to need to invest in resources, technology, and infrastructure, and re-evaluate how they manage talent mobility, to be able to protect the company brand, satisfy increasingly complex regulations, and provide a great experience for their people."

Tags: United Kingdom | Expats | Working Abroad | Work | Working Abroad | Working Abroad |


News Archive