International Relocation Policy - Your Questions Answered

13 September 2010

We are relocating members of staff internationally and do not have a relocation policy in place – do we need one?

Ad-hoc international relocation is possible, however most of the time they are more costly than a carefully planned relocation.

Ad-hoc relocation does not take into account personal circumstances of assignees and country specific requirements. If they are not addressed, an assignment could result in a fiasco. The assignee might return before the assignment ends or even resign from the post.

A well thought out policy reduces the risk of assignment failure, expensive relocation and exceptions to policy for individual circumstances.

How do we go about designing a relocation policy?

You could design it yourself, based on experience. However, to reduce the risk of failed assignments a relocation provider can consult with you and design a policy specifically to your requirements, applying a wealth of experience and knowledge. You will have tangible ROI’s, satisfied assignees and families, and cost controlled relocations.

How do we know that our international relocation policy is up-to-date?

Have your relocation provider advise you on your policy and emerging trends. Your relocation provider can also benchmark your policy against your competitors or your industry. If you have a close relationship with your relocation provider, suggestions should be made on a continuous basis.

What types of international assignments are there?

The most commonly known assignments are:

• Short term: between 3-12 months
• Long term: between 1-5 years
• Repatriation: return home from an assignment

However, recently there has been a surge of other assignments:

• Extended business travel: 1-6 months
• Commuter assignment: assignee travels back and forth between ‘home’ and ‘host’. The family usually remains at ‘home’.
• Virtual assignment: assignee remains at ‘home’, however works ‘virtually’ for and in the ‘host’ location.

Why is a relocation policy important?

Relocation policies should be tailored and include length of assignments and destination areas. For example – an assignee moving for 3 months to Shanghai might need and receive different benefits and relocation support then an assignee moving for 2 years to Paris.

The length and location of the assignment might also influence paid benefits and tax considerations.

How do we know that our chosen candidate will be successful?

You will not know for certain if a candidate is successful until the assignment is completed. However you can ensure that the main tools have been provided, the candidate has been assessed for suitability for the international assignment, relocation services are offered, continuous support is available, having a mentor available as part of the assignment and clearly defining career planning and repatriation – even before the assignment starts.

Most successful assignments are planned up to 6 months prior to the move. To measure the success of an assignment a period for up to 2 years after the return must be taken into consideration. All too often a ‘repat’ (a person who has repatriated back home) resigns from the post within two years after the return. With properly planned and executed repatriation this could be avoided.

How much does an international assignment cost?

You need to create a proper assignment costing; your relocation provider should be able to assist you. International assignments are not cheap; often they cost a multiple of the total annual salary over the period of the assignment.

How much support shall be provided to the assignee and the family going on an international assignment?

Each relocation is different and must be treated as individual. A lot will depend on your policy, budget, location and personal circumstances of the assignee. Having a visa/work permit in place is the basis, without it the international assignment would most likely be impossible.

Relocation support

Pre-Move Stage

• Compensation & benefits
• Letter of assignment including repayment confirmation
• Sale of home property (guaranteed sale price or managed sale)
• Policy counselling
• Tax advice
• Immigration & visa
• Shipment and storage of household goods
• Relocation of pets
• Shipment of car (or loss on sale)
• Cross cultural training
• Language training
• Pre-move trip/decision visit, including 
- school search
- home search
- area familiarisation
• International health care
• Disconnect from home property

During Move Stage

• Travel arrangements
• Temporary accommodation
• Managing expenses

Post Move Stage

• Temporary accommodation
• Tax advice
• Compensation & benefits updates
• Move In (new home)
• Settling in
• Driving familiarisation
• Cross cultural training
• Working partner support/partner employment

Additional HR support

• Candidate assessment
• Bonding with home corporate culture
• Visits to home office
• Ongoing mentoring
• Career planning
• Succession planning
• Repatriation planning
• Re-integration into home culture

As an HR manager I have not relocated myself internationally. How can I empathize with the different emotions and upheavals an assignee and family might go through during an international assignment?

Unless you have experienced an international relocation yourself it is difficult to comprehend and understand the different emotions. If you have a close bond with your relocation provider, speak to them and ask them for feedback. Many employees of relocation providers have relocated internationally and deal with assignees on a daily basis.