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DEVELOPING LOCAL TALENT AND KNOWLEDGE IS KEY TO SUCCESS FOR HI-TECH FIRMS EXPANDING INTO EMERGING MARKETS, ACCORDING TO SURVEY BY GMAC GLOBAL RELOCATION SERVICES
Increasingly, Companies are Moving Employees from Emerging Markets to Developed Countries to Gain Corporate Knowledge While at the Same Time, to Cut Costs
Oak Brook, Ill. (August 25, 2008) –-- Emerging markets are increasingly presenting significant challenges for hi-tech companies when it comes to relocating employees, 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 Hi-Tech Sector: The Challenge of Emerging Markets, collected data from senior international mobility executives from leading technology firms headquartered throughout North America and Europe.
In order to accommodate employees’ unique requirements moving to and from emerging markets, companies are transitioning from short-term assignments or permanent moves, to long-term assignments. This enables companies to provide better career-development opportunities to employees. Additionally, the survey found companies are transitioning from relatively centralized and standardized rewards packages to more flexible, menu–driven options.
“Companies are increasingly transferring employees from emerging markets to developed markets,” said Scott Sullivan, senior vice president of GMAC Global Relocation Services. “As a local employee’s knowledge deepens, they are oftentimes lower cost relative to employees in developed countries with similar knowledge. This makes moving them to developed countries attractive and an important source of added value,” Sullivan said.
Standardization or a Lighter Touch?
The survey points out that organizations are realizing the strategic role human resources now plays in the creation and capture of value.
International mobility functions have recognized the trend and are now linking the policies they offer to the strategic need to develop talent. Survey respondents believe this is a crucial evolution in thinking about the nature of international mobility and it reflects a trend to move the function into strategic discussions about the management of talent.
Economic Conditions Affecting International Mobility
Economic conditions continue to exert pressure on international mobility strategies for companies with global operations--and the hi-tech industry is no exception. The survey revealed that the overwhelming majority -- 70% percent of technology companies -- have made efforts to reduce international assignment expenses.
However, despite the global economic downturn and the pressure to contain costs, companies are reluctant to implement drastic cost-cutting measures in the mobility of their workforce. The perceived risk, to the willingness of employees to move outweighs the relatively minor (in the eyes of senior executives) financial benefits to accrue from trimming the expatriation offerings.
The research also revealed:
GMAC Global Relocation Services conducted the hi-tech industry-focused survey as a supplement to its 2008 Global Relocation Trends Survey. 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 hi-tech industry spotlight, go to: http://gmacglobalrelocation.com/insight_support/global_relocation.asp)
The company will host a complimentary Webinar presentation exploring the findings of the survey on September 25. Participation in the Webinar is free and limited to the first 100 registrants. To register, go to: http://www.gmacglobalrelocation.com/HighTech08.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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