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GLOBAL ENERGY COMPANIES SENDING EMPLOYEES ON INTERNATIONAL ASSIGNMENTS AT RECORD LEVELS, ACCORDING TO SURVEY BY GMAC GLOBAL RELOCATION SERVICES
Soaring Energy Demand is Creating Unprecedented Need for Expatriate Talent
Oak Brook, Ill., (October 24, 2007) – Leading global energy companies show no signs of slowing down as they aggressively expand their operations and dispatch record numbers of employees to assignments throughout the world, according to a recent survey conducted by GMAC Global Relocation Services (http://www.gmacglobalrelocation.com). The survey found 86 percent of global energy companies are sending more employees on assignment in 2007 as compared to 2006.
But there is a downside to this accelerated expansion and the resulting demand for talented employees willing to relocate to various corners of the globe. Companies report they sometimes need to go the extra mile – by offering shares, stock options and greater compensation packages, among other incentives – to prevent competitors from "poaching" their employees.
"The global energy industry is experiencing robust growth, which in turn creates extraordinary demand for skilled expatriates," said Rick Schwartz, president and CEO of GMAC Global Relocation Services. "This has led to fierce competition for the limited pool of talent and expatriates, with companies trying to entice employees of competing firms with more attractive offers. Our goal is to help companies manage their international assignments and provide solutions to these and many other unique business challenges."
This energy industry-focused survey was conducted as a supplement to the annual Global Relocation Trends Survey that has been published annually by GMAC Global Relocation Services since 1993. Each year, the Global Relocation Trends Survey provides companies with in-depth information and analysis on global mobility trends. (To obtain a copy of the survey(s), go to: http://www.gmacglobalrelocation.com/insight_support/global_relocation.asp).
The supplemental energy industry survey included interviews with corporate human resource professionals responsible for international assignment strategy at some of the world’s leading global energy companies.
Among the survey’s key findings:
Experienced? Pack Your Bags – Twenty-three percent of expatriates in the energy sector had previously been relocated (the industry average is 10 percent, according to the 2006 Global Relocation Trends Survey). According to the companies surveyed, this is partly due to the technical proficiency and levels of experience needed to prevent accidents at oil-extraction sites.
Long-Term Assignments: Worth the Money – Only 23 percent of companies in the energy sector were seeking alternatives to long-term assignments (over one year) as a way to control costs, compared to 55 percent among companies from other industries. This is largely due to the fact that energy sector companies have a greater range of assignment types, ranging from drilling-rig rotations of four or five weeks on (followed by four or five weeks off), to multi-year assignments.
Assignment Failure is Rare – Companies surveyed were nearly unanimous in reporting that early returns from assignments are rare in the oil and gas sector. Fully 40 percent of companies stated it didn’t happen at all. The remaining 60 percent acknowledged it occurred, but stressed that assignment failure was very rare.
Cross-Cultural Training Not Widespread – Cross-cultural preparation and participation in programs was low in the energy sector. While only 58 percent of companies in the energy sector provided cross-cultural training of some sort, just eight percent made it available for all assignments. These figures were significantly lower than the respective 80 percent and 34 percent figures from companies in other industries, according to the 2006 Global Relocation Trends Survey.
About GMAC Global Relocation Services
GMAC Global Relocation Services LLC, (www.gmacglobalrelocation.com) is a leading, full-service outsourcing partner of end-to-end employee relocation, assignment management and mobility consulting services for multinational organizations worldwide. In 2007, GMAC Global Relocation Services ranked "Highest in Transferee Satisfaction with Relocation Companies," according to J.D. Power and Associates. The company serves corporations in 110 countries and manages more than $1.5 billion in relocation-related transactions. GMAC Global Relocation Services is a business unit of GMAC ResCap (Residential Capital, LLC), a leading real estate finance company.
About GMAC ResCap
GMAC ResCap (http://www.gmacrescap.com) is an indirect wholly owned subsidiary of GMAC Financial Services. GMAC Financial Services is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and commercial finance businesses. GMAC was established in 1919 and currently employs about 31,000 people worldwide. At Dec.31, 2006, GMAC held more than $287 billion in assets and earned net income for 2006 of $2.1 billion on net revenue of $18.2 billion. For more information, please go to http://www.gmacfs.com.
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