Global Relocation Trends Favor Older Workers

6/29/2009 By Bill Leonard

An uncertain global economy has reduced the number of international assignments for employees of multinational corporations, according to a recent report released by Brookfield Global Relocation Services (Brookfield GRS).

Two-thirds of survey respondents from 180 multinational companies reported that their organizations planned to send fewer employees on international assignments in 2009 or, at most, maintain their current levels of international assignments. Nearly 70 percent of the respondents also reported that they are cutting the costs of international assignments as a direct response to global economic conditions—compared to 58 percent of the respondents in 2008.

“This year’s survey makes clear that many multinational companies have adopted a cautious wait-and-see approach, as concerns over the global economy continue to cast a shadow over their business,” said Rick Schwartz, president of Brookfield GRS.

Respondents also reported that the employees assigned to work overseas tend to be older and more experienced workers. The survey results showed that approximately 9 percent of expatriate workers for the responding companies were between the ages of 20 and 29—the lowest percentage for that age group in the annual survey’s 14-year history. According to researchers with Brookfield GRS, employers favor older and more experienced employees because they have proven track records and reduce the risks for turnover and incomplete assignments.

The top challenges businesses face when relocating employees overseas, according to the survey results, were:

Controlling the overall cost of assignments.
Finding suitable candidates.
Controlling policy exceptions.
The survey did find that the number of women sent on international assignments has remained relatively stable for the past two years, and female expatriates represent approximately 20 percent of expatriate employees. The peak percentage for female expatriate employees was 23 percent in 2005, according to survey’s statistics.

Brookfield GRS researchers also examined some of the top reasons for assignment failures and reasons for refusing international assignments. Survey participants were asked to rank the top 10 reasons for assignment refusals. “Family concerns” topped the list of reasons followed by “spouse’s career concerns.”

China was ranked as the top relocation destination, followed by the U.S., the United Kingdom, Singapore and Switzerland. In addition, China topped the list for presenting the greatest challenges to international assignments due to the difficulty of locating suitable housing and schools and finding adequate medical care. Chinese immigration rules, tax laws and compliance to local regulations also pose significant challenges to expatriate relocations, the survey found.