Survey Shows Shorter-Term International Relocation Assignments, Overall Volume of Assignments on the Rise

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RISMEDIA, July 30, 2007—According to a new survey from Cartus, a provider of global mobility management and workforce development solutions, an accelerated shift from long-term to short-term international relocation assignments is expected during the next two years. The Cartus Emerging Trends in Global Mobility: Policies & Practices Survey also revealed that international assignment volume has grown and is expected to increase in the future.

The study also found that the number of assignment destinations is surging.

Respondents named 51 different countries in their list of top three destination locations, a 76% increase over 2004.  The United States continued as the most common destination for relocation assignments, but China overtook the UK for second place while Germany replaced Singapore for fourth place. China is expected to take over the top spot within the next two years, according to the survey (see Table A at end of release).

“As companies respond to growing business opportunities, pressures to recruit and retain top global talent, and demands for regional flexibility, we can expect to see more people being sent to more and different destinations, and on shorter-term assignments,” said John Arcario, executive vice president of Cartus. “We are seeing a truly new workforce being shaped by a global economy.”

The study reveals a new, more mobile workforce and a greater commitment by global organizations to newer forms of policies and assignment types to meet expanding business goals. Co-sponsored by the U.S. National Foreign Trade Council, the Cartus Emerging Trends in Global Mobility:

Policy & Practices Survey included 184 respondents from companies in 25 major industry segments. The organizations surveyed represent more than 83,000 assignees and have headquarters in 19 different nations.

Among the key findings in the survey:

* Emerging preference for short-term assignments. In the past three years,
68% of companies responding said short-term assignments were up, compared to 50% for long-term assignments. During the next two years, 65% of organizations anticipate increases in short-term relocation assignments compared to 44% for long-term assignments.

* Assignments of all types are expected to grow. Assignment volume was expected to increase or stay constant by at least 92% of companies. Fourteen (14) percent of companies expected to decrease long-term assignments, the largest expected decline of any category.

* Surging popularity in the numbers of companies offering intercultural and language training for accompanying families. Intercultural training was offered by 55% of organizations in 2007, compared to just 28% three years ago. Similarly, 58% of companies offered language services for families, a boost from 30% in 2004 (see Table B at end of release). Still, the top three reasons identified for failed assignments are family adjustment (71%), assignee personal style (48%) and cultural differences (40%), all factors that can be addressed through language and intercultural training.

* Strategy is the primary consideration for companies making international assignments. Seventy-eight (78) percent of companies considered business strategy a more critical driver than cost, reflecting an awareness of international assignments as a necessary cost of doing business in expanding global markets.  Only 47% of respondents cited an increase in their company’s focus on cost control, down from 67% in 2004.

* Developmental assignments surging. Assignments aimed at providing career development for rising talent are showing the biggest surge. While 47% of companies increased such assignments in the past three years, some 64% plan on boosting developmental assignments over the next two years - the biggest jump found by the survey.

* Family concerns most often derail assignments. Family or personal circumstances was cited almost twice as often (90%) for employees turning down relocation assignments as career concerns (48%) or compensation (46%)

Despite the fact that the average profile of an international assignee has remained largely the same in recent years, with 79% being male and two-thirds being married, Cartus expects the “family factor” to continue to drive two other trends identified in the survey: demands for policy flexibility and a rise in companies offering language and intercultural services to families, which has doubled in just three years.

“Family adjustment is clearly one of the key factors behind assignment acceptance and success,” said Arcario. “And while the assignee profile may be changing a little more slowly than we might have expected, family units themselves are experiencing new pressures, such as dual careers and elder care. These are helping to fuel the need for flexibility, as well as increases in language and intercultural program offerings, all reflecting companies’ awareness of those investments critical to success for international assignees.”

Most Frequent International Relocation Assignment Destinations

2004   %
United States  34%
United Kingdom 28%
China   19%
Singapore  19%

2007   %
United States  30%
China   23%
United Kingdom 8%
Germany   5%

2009 Projected %
China   31%
United States  25%
United Kingdom  4%
India     4%

Source:  Cartus

Intercultural & Language Training Offered to a Growing Number of Families Accompanying Relocating Employees

Training Type 2004 2007
Intercultural 28% 55%
Language 30% 58%

Source: Cartus

For more information, visit www.cartus.com.

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