International companies are expecting to post many more executives abroad in the next five years, according to a research report from the Economist Intelligence Unit (EIU). The report titled "Up or out: next moves for the modern expatriate” has been sponsored by Regus, a leading provider of workplace solutions such as providing fully equipped offices, professional meeting rooms, business lounges and video communication studios.
As per the report, businesses, globally, are feeling the pressure to expand in to China, India and other major emerging markets, owing to the stagnation in the Western markets. The researchers conducted a survey of 418 senior executives with responsibility for overseas offices. The survey found that almost four out of ten (39 per cent of the respondents) companies plan to increase their expatriate staff over the next five years.
Paul Lewis, managing editor of executive briefing at the EIU and editor of the report says, “Expatriate strategies provide an insight into broader trends in globalisation whether it’s the regions that the companies are investing in or the daily operational challenges involved in setting up an office."
Designing expatriate assignments entail an array of decisions given the location and nature of these roles, finds the survey.
Mark Dixon, Global CEO of Regus plc, comments on this: “This survey shows that globalisation is forcing companies to review their approach to where they locate their operations, and how they manage human resources and property. The needs of global, mobile and flexible workers are exacerbating the challenge of providing a right-sized workplace infrastructure for a reasonable cost. By using this survey to explore the pressures faced by businesses and their expatriate staff, we can help them deal with the challenges."
Some of the other key findings of the report include:
* Executives are keen to be a part of the global and mobile working trend. Four out of five executives believe that an assignment in a “major emerging market” aids career progression.
* Companies are far more likely to send expatriate staff to China, India and other Asian countries than to any other emerging market region. After the emerging Asian markets, Middle East, Russia and Eastern Europe are considered common locations for expatriate postings.
* Around three out of five expatriates believe that their corporate headquarter does not sufficiently grasp the nature of the local business environment. One out of three complains of excessive interference.
* More than half of the expatriates are sent to a particular destination for a period of two to five years. But there has been a rise in flexible working practices such as short-term and 'commuter' assignments.
* Nearly three-fourth of the survey respondents believe that “cultural sensitivity” is the most important attribute of an expatriate.
