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More organisations are providing employees with opportunities to live and work overseas for business development purposes.
According to the annual KPMG Global Assignment Policies and Practices report, 72% of more than 600 organisations surveyed worldwide make use of mobility programmes to support business objectives and remain adaptable to changing requirements.
An overwhelming 96% of all companies offered long-term assignments, while 81% offered short-term assignments. Only 47% offered permanent or indefinite length transfers.
“A globally mobile workforce is as popular as ever… in those companies where use of mobility is the norm, we have seen continued expansion and adaption to the programmes,” Ooi Boon Jin, KPMG Singapore’s head of international executive services, told The Business Times.
The report added more companies from the Nordic and Asia Pacific region are utilising international assignments, while companies in the US or UK are expanding and adapting to the changing needs.
When it comes to compensation, a majority (61%) of companies pay their assignees in accordance to the levels in their home counties. Additionally, 71% of participants providing a foreign mobility premium to their assignees only offered as a lump sum payment that varies based on factors such as job grade, family size or location.
A majority of respondents (65%) revealed they offer hardship and danger premiums, often in the form of either unlimited premiums or limiting it to a pre-determined cap.
But surprisingly, only 12% of companies recognised the importance of cost control and assurance of an acceptable return on investment (ROI). Just over a quarter of respondents (27%) admitted they did not know the percentage of assignees leaving the company after 12 months upon return.
Nevertheless, the report concluded the amount of international assignees will not change for 86% of surveyed organisations, most notably European organisations in the energy sector.