Firms want to cut expartriate costs

Employers
are looking to increase lucrative overseas business but want to reduce the cost
of employing expatriates, according to the latest research.

The
study, published by PriceWaterhouseCoopers, shows that 75 per cent of global
firms expect to increase the number of International assignments, but 80 per
cent said that cost reduction was also a key priority.

International
Assignments: Global Policy and Practice looked at 242 global businesses to
compile the report.  Stephanie
Phizackerley, HR partner at PriceWaterHouseCoopers, said companies want to cut
costs but retain quality staff overseas: "Escalating cost pressures mean
that organisations are having to rethink traditional practices.

"They
are increasingly considering short-term assignments and commuter working.
Incentives and other perks are being cut back as companies look to cut the
costs of placements, while increasing their number."

Other
results included:


67 per cent wanted to increase the use of local nationals


50 per cent were looking to increase the use of short-term assignments


40 per cent of firms expect to increase the expatriate staff in Western Europe
by 2004


28 per cent aare increasing the number of commuter jobs

The
survey also found that during International assignments the biggest cost an
employer faces is when a project fails or an employee leaves after
repatriation.

www.pwcglobal.com

By Ross Wigham

 

 

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