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DESPITE CURRENT ECONOMIC CLIMATE, FINANCIAL-SERVICES COMPANIES ARE STILL TRANSFERRING KEY EMPLOYEES INTO EMERGING MARKETS DUE TO PERCEIVED LACK OF LOCAL TALENT
Companies Are Focusing on Standardizing Policies and Taking Extra Care to Select the Right Candidate, According to Survey by GMAC Global Relocation Services
Oak Brook, Ill. and London (June 30, 2008) – When it comes to transferring employees around the globe, the majority of the world’s financial-services firms are focused on reducing costs and increasing efficiencies, yet still have to accommodate the need for “knowledge transfer” into emerging markets. These firms also remain unsure of the return on investment associated with transferring employees to these markets, according to a survey by GMAC Global Relocation Services (http://www.gmacglobalrelocation.com) and the Centre for Performance-Led HR at Lancaster University Management School in the United Kingdom.
The survey, International Mobility in the Financial Services Sector: The Challenge of Emerging Markets, included interviews with human resource professionals responsible for international assignment strategy at some of the world’s leading financial services companies. Companies surveyed represent the finance, insurance and real estate sectors, with offices throughout the world and an employee population of 1.25 million.
“This survey leaves no doubt that the majority of financial services companies are looking for ways to further streamline programs associated with global expansion while still obtaining a knowledge transfer into those markets,” said Scott Sullivan, senior vice president of GMAC Global Relocation Services. “The survey shines a light on emerging worldwide relocation trends, and in turn can help companies as they create or adjust their international mobility programs.”
For companies expanding their presence in emerging markets, a growing challenge identified by human resources professionals is striking a balance between those who are willing to accept an assignment versus being able to send the most talented or competent employee.
Economic Conditions Affecting International Mobility According to the survey, 52 percent of companies are making efforts to reduce international assignment expenses. To that end, companies were focusing their efforts on three primary areas to help reduce costs:
In addition, fewer companies (40 percent) are looking for alternatives to long-term international assignments this year. In the emerging markets, the long-term assignments continue to prevail due to the time needed to transfer skills, knowledge and the company culture.
Financial Services Firms Are Not Measuring Return on Investment The overwhelming majority of financial services firms -- 84 percent -- said they do not measure return on investment (ROI) for their international mobility programs. A number of reasons were given for the lack of attention to the issue, including:
“When it comes to return on investment, there’s ongoing debate regarding the merits of using short-term measures that might look at the success of a particular assignment, or long-term measures that assess whether mobility in general has assisted in developing the capabilities of an emerging market,” said Sullivan.
Standardization
In an effort to streamline policies and program administration while also reducing costs, 73 percent of respondents are seeking global standards and a further 23 percent are moving back toward regional standards. The survey found that standardization becomes easier in those organizations with shared service centers handling assignment administration and can be an important enabler of subsequent growth in expatriate numbers.
GMAC Global Relocation Services conducted the financial services-focused survey as a supplement to its Global Relocation Trends Survey, published annually since 1993. Each year, the Global Relocation Trends Survey provides companies with in-depth information and analysis on global mobility trends. (To obtain a complimentary copy of the Global Relocation Trends Survey or the financial services spotlight, go to: http://gmacglobalrelocation.com/insight_support/global_relocation.asp)
The company will host a complimentary Webinar presentation exploring the findings of the financial services survey on Tuesday, July 15. Participation in the Webinar is free and limited to the first 100 registrants. To register, go to: http://www.gmacglobalrelocation.com/finance08.html
About GMAC Global Relocation Services
GMAC Global Relocation Services, LLC (GMAC GRS) (http://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. The company serves corporations in 110 countries and manages more than $1 billion in relocation-related transactions. GMAC GRS is a business unit of GMAC ResCap (Residential Capital, LLC), a real estate finance company focused primarily on the residential real estate market in the United States and selected international markets.
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 employs approximately 26,700 people worldwide. For more information, go to www.gmacfs.com.
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