Global Mobility – Trends and the “New” Best Practices

The global economy is rapidly changing. Some countries are facing severe economic challenges, some transcending borders and continents. The following program recommendations are not to be perceived as reactionary to any particular economic state, but are to be viewed as solutions to the newly emerging needs of companies and their mobile workforce.

1. Corporate global mobility programs must be reviewed, at the very least, annually. Reviews and amendments are recommended every 6 months.

• Better addresses changes to economic climate and trends
• Demonstrates understanding of current requirements
• Contains cost and maximizes ROI

2. Comprehensive Candidate Assessment and Selection

• Needs assessment must be completed
• Cost projection completed
• Prior to offer of relocation, a BMA/appraisal conducted by relocation provider to determine value of home
• Due diligence/responsibility on the part of the employee to understand housing and economic conditions in both home and host location prior to accepting offer to relocate

3. Pro-active and Coordinated Marketing Assistance

• Appraisal(s) completed and value established before listing the home
• Relevant inspections completed
• All repairs completed by the employee prior to listing the home
• Eliminate “employee choice” of real estate agent and appraisers
• Establish controls over price, marketing and negotiations
• Addition of Property Management provision in lieu of homesale benefits
• Offer homesale incentives
• To the employee who sells within marketing period
• To the agent or purchaser to gain interest in the property and expedite a sale

4. Loss on Sale Provision

• Caps on the Loss on Sale benefit
• Eliminate eligibility of capital improvements in calculation

5. Loss on Sale Provision

• Shift away from Lump Sum policies
• Trend is towards tiered and country-specific policies

6. Expatriate Assignment Trends

• Decrease in long-term expatriate assignments
• Trend towards localization
• GPS devices for expatriates (for safety purposes)

The Path Ahead

It is recognized that these recommendations may create tension situations within the company and with other stakeholders. To best implement, an actionable strategy must be formulated to gain buy-in to the programs.

• Benchmark policy
• Understand the company’s intent, culture and internal trends
• Articulate the value added and ROI potential
• Involve procurement
• Involve suppliers in formulating strategy and recommendations

Terri Oliver
Director, Consulting Services