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Improve The ROI On Your Employee Assignments

Improve The ROI On Your Employee Assignments. Presented by: Brenna Wathke, Ernst & Young LLP. Losing Our Repatriates. 15 - 30% of expats leave the Company within one year of repatriation and 50% within 3 years Newsflash: This is not a new problem! . Improving the ROI of Employee Assignments.

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Improve The ROI On Your Employee Assignments

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  1. Improve The ROI On Your Employee Assignments Presented by: Brenna Wathke, Ernst & Young LLP

  2. Losing Our Repatriates • 15 - 30% of expats leave the Company within one year of repatriation and 50% within 3 years • Newsflash: This is not a new problem!

  3. Improving the ROI of Employee Assignments • What is the investment? • Why Assignees Leave • Coaching the Assignee from Afar • Successful Repatriations • Repatriation Checklist • Questions

  4. What is The Investment? • Cost assessment: • Depends on the classification of employee: • Frequent Business Traveller • Rotators • Full Expats • Permanent Transfers

  5. What is Our Investment? • Investment of Cost Goes in Terms of Base Salary: • Tax • Housing • Education • Compensation paid to an expat is typically two to three times base salary per annum • EY Survey reveals that many companies don’t know how to measure the value of an assignment

  6. Why Be Concerned? • Are the repatriated expats your responsibility one year after they are home? • Who is bearing the ultimate cost?

  7. Why Be Concerned? (Cont’d) • You may not need to retain the person or you may not want to. • There is no direct correlation between financial investment and retention after repatriation. • If building a population of future head office needs, then retention may be important

  8. Do You Know Your Populations and Their Concerns? • Sandwich Generation • Young Employees in 20’s & 30’s – Adventurers • Young Families • Pre-Retirees

  9. Why Do People Leave? • Lower Responsibilities • Lower Challenges • Loss of Perks • Not Offered Another Foreign Assignment • Family • Retirement • Taxation • New Spouse / Family in Host Location

  10. Why Do People Leave? (cont’d) • Inability to adapt to the host location • Poor Candidate Selection • Working Partner Perceived Disruption of Career • Int’l Work Experience Makes Employees More Marketable • Feeling Displaced After Repatriation

  11. Top Five Locations For Assignment Failure* • 1) China • 2) Japan • 3) United States • 4) United Kingdom • 5) Saudi Arabia • 6) Iraq * Employee not completing contract

  12. Top Four Skills Commonly Acquired Overseas • Market Specific Knowledge • Personal Skills • Management Skills • Network Skills Most research discusses knowledge that is exported but little is known regarding repatriated knowledge

  13. Who is the Best Coach? • Internal or external? • Sometimes need immediate intervention • Confidentiality • Standards of evaluation • Evaluation of the coaches - accountability

  14. What is the Employee Thinking? • Will anyone remember me? • What job will they give me when I return? • Will my new skills be recognized? • Have I delayed my career progression by being overseas? • Can I afford to live in my old neighbourhood? • How well will my child re-integrate into public school? • Will my spouse be able to find a job?

  15. What is the Employee Thinking? • Quote from the International Herald Tribune – August 1996: • “Many managers return from international assignments feeling not like conquering heroes, but like disillusioned victims of an ‘out of sight, out of mind’ syndrome that has damaged their careers”.

  16. Successful Repatriations • Communicate, communicate, communicate • Obvious solution is candidate selection • Plan the repatriation at least 12 months in advance • Talk with the assignee and the home office – detail the new job responsibilities, evaluate is this is a demotion or a promotion • Assign a coach for the duration of the assignment -make the coach accountable • Keep the assignee in the loop with domestic news

  17. Solutions (cont’d) • Avoid long periods of foreign assignment – avoids reliance on perks – similar to diplomatic environment • Continue with perks but limit monetary perks • Completion bonuses – payable 12 months after repatriation – gives time to acclimatize • Don’t overlook the little things • Insist on cross-cultural training both pre and post • Treat repatriated employee as new hire – 1st 6 months are critical for retention – work on their integration

  18. Solutions (cont’d) • Be flexible with family related issues • Be flexible with retirees and the options available to them post-repatriation • Keep assignees tax equalized on assigment

  19. Questions?

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