The soaring cost of living is being keenly felt by employers seeking to move talent across the globe and as the world increasingly reopens following the pandemic, many organisations are becoming increasingly cost conscious about moving talent.
But there are signs that firms interrogating the cost of support services associated with these placements are running the risk of the failure of these assignments.
However forward-thinking employers are embracing telehealth support and ensuring proper due diligence ahead of placing talent to meet the healthcare needs of employees and their dependants.
It seems management, and sales, learning and development professionals are increasingly in demand as companies try to cope with talent shortfalls.
Cutting support services
“We are seeing a focus on the cost of support services, with some mixed responses,” Linda Beavis, senior consultant – global benefits at Aon, tells Health & Protection.
“Some employers will look at the cost of additional support services and potentially reduce, to focus on core provision of cover such as benefits, housing and travel costs – whereas others will look to provide a wider level of support services to ensure a higher success rate for relocation.
“Given the overall cost of relocating individuals, the additional level of support services to ensure a higher level of success is actually more cost efficient than cutting these services.”
Due diligence ahead of placing talent
In order to further increase the chances of successful assignments, employers are also increasingly doing more due diligence due to geopolitical tensions, according to Alex Jefferson, senior consultant at Lockton Global People Solutions.
“They are also seeking more assurance when it comes to knowing what their exit strategies and options are,” Jefferson continues.
“How long are they expected to stay, how will they be remunerated? These are all questions employees must ask before moving for work.
“Employers must also offer their employees sufficient access to training resources in order to help them know and understand the cultural and social norms in their new work environment.”
Jefferson adds employers are increasingly checking their global mobility processes and HR policies to proactively secure the safety of relocating employees.
“Employees may be resistant to relocation due to the impact it can have on their quality of life, so sophisticated processes must be in place in order to make sure they feel comfortable,” Jefferson adds.
“We are seeing more pre-assignment checks for both individuals and family members being undertaken, to ensure the appropriate facilities are present in the new location.
“For example, if a pre-assignment check flagged that an employee’s child had asthma, a thorough check of medicine and treatment available in the new location would need to be carried out.
“These checks ensure that individuals understand how to navigate the healthcare environment and acquire the correct documents such as membership cards.”
Pros and cons of increased use of technology
Michelle Bishop, EU team leader, multinational benefits and HR consulting practice at Gallagher, tells Health & Protection that technology has benefitted employers relocating talent as they place greater emphasis on adopting telehealth and technology based solutions in support of employee mental health.
But other technology enabling firms to hold meetings across different time zones and locations, such as Zoom and Teams, has caused some employers to question whether they really need to have boots on the ground.
This is not the case for all sectors, however, as energy, construction and aviation typically need a physical presence in any location.
“A physical presence can still achieve so much more than a remote presence in setting up a new entity,” Bishop explains.
“What I think we have seen is just a change in the dynamic on the reasons for expatriating individuals, a change in profile over the type of assignments – with possibly more emphasis on short-term or project-based initiatives, and the ability to redesign assignee policies to contain the cost of moving people.”
Talent shortfalls
In terms of the types of talent on relocation, Beavis points to an Aon survey which showed technical or skilled workers and management and sales professionals are in demand.
“However, there is now an increased focus on education which we believe is due to talent shortage in particular countries,” Beavis continues.
But as for the immediate future – the world does certainly appear to be opening up again, according to Jefferson.
“The world is certainly opening up to more global relocation of talent following the pandemic, with some relocation being essential for particular site and project-based roles,” he says.
“There are barriers that need to be navigated as borders open, including triggering local tax, permanent residency and mandatory healthcare compliance requirements.
“Additionally, some countries are still enduring the ripple effects of Covid-19 and have pandemic restrictions in place.
“These factors imply that relocating needs must be handled with care and awareness of discrepancies in cultures and regulations. With these in mind, and global nomad structures developing more, remote working is becoming a viable option for many employees.
“This trend will only continue, especially as these remote roles are evidenced to increase employee wellbeing, retention and satisfaction.”