Should Your Business Axe Overseas Assignments?

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Technical positions (of low business and developmental value) involve similar staffing, but the pay package is likely to be that for short-term assignees or business travelers if the assignment is not long term.

• Developmental assignments, with low business but high developmental value, provide the individual with critical experience in the company's operations. The typical scenario would probably involve either a short-term or "expat lite" package. Expat lite packages usually exclude an incentive and provide smaller host-housing accommodations. In some cases, where there is an unknown limit to the length of the assignment staffing, the company may even choose to provide a "local compensation package," similar to what a national of that country would receive for doing the job.

Consider the Long View

To ensure a successful assignment for both the employee and the organization, management should clearly define its expectations for results and performance, as well as what's necessary to help the employee succeed. When searching for appropriate and qualified candidates, the employer should also factor in the individual's career goals and carefully assess whether the person is ready for such an assignment.

It's important to discuss the job requirements, working conditions, and family issues with the employee and spouse. And remember, ignoring the "softer" issues related to dual careers, children's education, and cultural orientation is inviting trouble. To succeed, the company must support the right candidate with not only reasonable and competitive pay and a defined career plan but also necessary programs. Failing to do so will result in higher costs in the long run from failed assignments.

There is a fine balance between managing a company's costs and developing and retaining talent. Companies that tip the scale toward costs over talent risk losing valuable workers once the job market improves. What employees need to know is that their company's human capital nets out over financial capital. Taking the right steps now could ensure that the organization does not lose top talent to the competition while helping sustain—or even strengthen—its competitive foothold in the fast-paced international marketplace.

Siobhan Cummins is an executive vice-president of ORC Worldwide and managing director of Europe, the Middle East, and Africa and is responsible for the international compensation services (ICS) business. Ed P. Hannibal is senior vice-president of ORC Worldwide and is responsible for the North American international compensation practice.

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