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By Fred Melone
Before we can look ahead to what the future holds, we need to reflect on the very recent past. The year 2001 brought a new wave of corporate downsizing, which in turn has sparked numerous trends in relocation and global assignment. Although it's too soon to predict the long-range effects of the tragic events of September 11th, it's clear that significant change lies ahead for all of us. Nevertheless, examining emerging trends is key to allowing us to project the future of relocation in 2002, especially in these uncertain times.
At GMAC Global Relocation Services (GMAC GRS), we have recently witnessed an increase in the number of international short-term assignments. We feel there are several reasons for this, including allowing companies to:
While these types of assignments are occurring more frequently, they are typically shorter in duration. This developing trend merits a watchful eye. In fact, many companies are already making adjustments to their policies, and in an uncertain political and economic climate, further adjustments may need to be made on a broad scale.
Typically, a short-term international assignment is defined as one of a year or less. The areas that are the most affected include:
Temporary Housing
There have been instances of some corporate assignees being caught off guard by the accommodations they've been provided with, particularly in terms of the size and relative cost of the property.
To gain a better perspective, let's consider London as an example. Without making unfair generalizations, the alternatives available to corporate clients are hotels or serviced apartments. The hotel route is the best option for those business travelers staying in London for just several weeks, but it is not a practical solution for those who are staying longer. Assignees requiring temporary housing for time periods of several months face a very real problem finding "suitable" accommodations, and many corporate clients are not yet acknowledging this gap in the market. In addition, reasonable expectations should be set before people go to London, so they won't be surprised to find that temporary housing is smaller than more permanent housing options.
Arranging for a serviced apartment-one of the most practical solutions, especially for one- to three-month assignments- is similar to renting a hotel suite. Cleaning services come in on a weekly basis and provide fresh linens, but assignees are on their own in terms of cooking and arranging for the other essentials of daily life. Although some people feel that serviced apartments lack charm, there are high quality serviced apartments available. They invariably meet the standards of most assignees, offer substantially more living space than the average hotel room, and rarely is anyone disappointed in the quality and atmosphere of their accommodations. Another advantage to renting a serviced apartment is that they are relatively easy to find, always depending on current availability and the flexibility of the assignee, of course-and serviced apartments require only a simple contract.
Frequently, clients ask us to find short-term accommodations comparable in price to longer-term rentals, since they don't realize that serviced accommodations carry a substantially higher price tag, sometimes double the cost of longer-term accommodations. That means assignees sometimes wind up getting roughly half the space their budget might have allowed for in a long-term rental. One way around this is for companies to consider policy adjustments that would increase their monthly allocations for short-term housing, recognizing that even though short-term housing might cost more on a monthly basis, that in the long run, the company is still saving money on the assignment.
Helping Employees Keep Up with the Accelerated Pace of Short-Term Assignments
As the trend toward shorter assignments continues, HR professionals need to consider what the employee will need to adapt to the new location. Typically, employees on international assignment go through distinct phases of culture shock (see culture shock graphic). But with these shorter-term assignments, it's almost as though someone has pushed a "fast forward" button on the employee's assignment, since the employee is expected to move through the same process but in a much shorter time frame. As a result, an employee might not progress through each of the phases in turn, perhaps getting stuck in a particular phase. Intercultural preparation and on the ground support can be even more critical than in a longer-term assignment.
Obviously, such a time warp could present far-reaching consequences, interfering with productivity and the assignee's ability to become acclimated to a new job and culture. Without adequate time to develop the requisite awareness of the local culture, an employee is likely to present not just a challenge in terms of productivity, but also might inadvertently encounter difficulties with their new colleagues. This can be a hindrance to the very business objectives of the assignment, and depending on the nature of the project, might even cause the assignment to extend longer than originally planned. In the worst case scenario, it can even jeopardize the success of the project.
Because employees on such short-term assignments do not have the luxury of adequate time to adjust to a new culture, companies need to be aware that adequate support services are crucial to the success of an assignment. While there might initially be a tendency to assume that because a shorter stay in another country might require less support, it's even more important that the level of support services offered not be reduced. If anything, the availability of such services-including intercultural preparation- should be expanded.
After all, there's only one chance for an employee to make that critical first impression. With the shorter timeframe of these assignments offering fewer chances to repair damage caused by cultural faux pas, not to mention the fact that the employee is dealing with the experience without the emotional support and physical presence of his family, it is clear that support services are critical.
Family Considerations
Fortunately, short-term assignments offer numerous benefits to employees' families, among them:
At the same time, companies need to make certain provisions, even considering policy revisions, if necessary:
An Eye on the Future
Just as the ever-changing economy and political situation may demand even more cost-efficient solutions such as short-term assignments, the need for companies to preserve their most vital resource-their employees-requires innovative means of coping with the increased pressure on those employees.
As Thomas Wolfe wrote in You Can't Go Home Again, "Perhaps this is our strange and haunting paradox here in America - that we are fixed and certain only when we are in movement." This observation speaks not only to our country as a whole right now, but also to corporate America and the relocation industry. The only thing that is certain is the inevitability of change, and the need for our continued vigilance in terms of anticipating and evolving with emerging trends.
Frederic P. Melone, Vice President Global Services for GMAC GRS, is a seasoned professional with more than 26 years of experience in the expatriate management, relocation, and real estate industries. He brings valuable knowledge and experience on processes to effectively manage large outsourcing engagements. Fred's role is to oversee the overall global service delivery for a diversified group of client organizations that includes an organization that supports over 1200 global assignments throughout the world.
In addition, Fred is one of several senior leaders in the organization focused on establishing processes and procedures for global operations and accounting; He is a Certified Relocation Professional, Global Mobility Specialist, and a Licensed Real Estate Broker in Illinois and holds a BS in Finance from Northern Illinois University. Fred resides in Chicago and maintains offices in our Woodridge, IL and Detroit, MI locations.