Internationally mobile

The easiest part of any international assignment is catching the plane from one country to another. The hardest part starts with the HR department, well before take-off. Teresa Russell talks with two HR professionals who successfully manage a large and diverse number of employees on international assignments

In the past, the role of HR in international assignments was to manage the processes involved in getting an employee from one country to another. This ranged from drafting employment contracts for the period of expatriation, ensuring salaries and expenses were paid in the right currencies, into the right accounts in the right countries, and liaising with removalists, travel agents and real estate agents to get the person, their family and their belongings moved.

Although all these things still need to occur, a level of sophistication has now developed around international assignments. Other issues such as security, global talent management and managing the needs of a wide range of international assignees (age, experience, life stage, skill sets) are relatively recent challenges.

Two companies that have well-developed international assignment strategies, policies and procedures are Unisys and Fonterra. Unisys is a worldwide technology services and solutions company, providing expertise in consulting, systems integration, outsourcing, infrastructure, and server technology. Melanie Laing is its Sydney-based regional human resources director, Asia Pacific, responsible for 4,500 employees in 13 countries. She is therefore also responsible for all international assignees in the region.

Fonterra Co-operative Group Ltd collects milk from its 11,600 New Zealand based shareholders (dairy farmers), processes it into a range of products and markets those products globally in 140 countries. With annual revenue of NZ$12.3 ($11.2) billion, Fonterra is the fourth-largest dairy company in the world by revenue, and second in the volume of milk processed annually. It employs 20,000 people globally. Deborah de Cerff is Fonterra’s Auckland-based global mobility centre manager, responsible for the administration of the company’s 148 short and long-term international assignees who are currently posted in 40 countries.

Profile of assignees

There used to be a typical profile of an expatriate in many companies – male, aged between 30 and 40, moving up the ladder and getting an overseas appointment to round out their company experience on the way to a top job. These days, both Unisys and Fonterra see a wide variety of employees on international assignment.

The employee we choose depends on the commercial imperative, which always comes first. It includes top talent, but may just be those who possess a wide variety of competencies. We transfer people both ways to and from head office, and we already have a diverse working population, locally recruited, in Australia,” explains Laing.

Fonterra defines six different types of mobile employees. “The business need determines who actually goes where, but the plan is to ensure that a skills transfer and development of local expertise occurs as a result of an international assignment,” says de Cerff. She says that the globally mobile workforce today differs from the traditional expatriate of 18 years ago, when she started working as a consultant in the international transfer market. “There are a growing number of employees travelling on extended business trips, as well as a wide range of assignees. Those from Generation X and Y have different needs and motivations compared to baby boomers. This wide variety of expectations need to be accommodated in each employee’s contract,” says de Cerff.

All in the family

The hardest things to get right are usually the personal issues involved in the transfer of the assignee’s family, according to Laing at Unisys. These include whether the partner can work, what schooling options are available and whether for example, a son or daughter with special needs can be provided with the right resources in the posting country. “You must spend time with the employee up front and ensure transparency from them so these issues can be solved and dealt with. Manage the issues sensitively and offer some flexibility,” suggests Laing.

De Cerff agrees, although she has special challenges because of the large numbers of countries she deals with, having just a few assignees in each. “It is difficult to stay in touch with the housing market and schooling system in the back blocks of Venezuela, for example, so we rely heavily on our joint venture partners or destination service companies to provide up-to-date information. You must recognise the individual personal needs of each family,” she says.

Proven systems

Both companies were asked what they did well when it came to international assignments. Each said it was the way they managed the whole term of the contract.

Fonterra created its global mobility centre four years ago, acknowledging the importance of a consistent, fair and equitable approach across what were once all different businesses. A centralised approach also allows de Cerff and her team to track spending, achieve better returns and apply good ideas across the global business.

Unisys believes it is very organised around the important issues of legal, tax, housing and schooling, as it has chosen the right partners in these areas. According to Laing, the assignee has always had previous exposure to the country they are going to be living in, because of frequent shorter business trips in the past.

Where to next?

Both Fonterra and Unisys promise overseas assignees that they will be repatriated at company expense, but there is no guarantee of any, or any particular job at the end of an assignment. “We start planning six to eight months before the end of an assignment and do our best to find them a position that suits. We have a lot of back-to-back international assignments, because of the technical competencies people have and the fact that our objective is to transfer knowledge to local markets,” says de Cerff.

Attraction or retention?

Laing believes that Unisys’ international mobility strategy has a part to play as a retention mechanism for some of its employees. She says strategies have to be customised, especially to appeal to Generation Xs and Ys.

De Cerff believes overseas assignments are an integral part of Fonterra’s attraction and retention strategies. “However, we don’t market them in those terms. They depend on the business needs and a certain person’s skill set at a particular point in time.”

Unisys’ internationally mobile tips

• Know what is happening with competitors

• Talk to professional providers

• Don’t underestimate the costs or challenges

• Have all systems, policies and programs in place, but allow flexibility

• Be organised

Source: Melanie Laing, regional human resources director, Asia Pacific, Unisys

Fonterra’s internationally mobile tips

• Understand your business

• Identify future talent requirements (skill vs knowledge based)

• Be flexible to reflect changes in political and business environments

• Have clear objectives for sending someone on assignment

• Get specialist advice – especially on tax, immigration and government legislation

• Security – know where employee population is and keep them informed

• Logistics – ensure everything is covered before departure

• Immigration – know what passport your assignee holds

• Health cover – make sure emergency evacuation plans are included

• Cultural briefings – either outsource this or use internal mentors

Source: Deborah de Cerff, global mobility centre manager, Fonterra