Just a little over a decade ago, traditional three- to five-year expatriate assignments were plum positions afforded to up-and-coming long-term employees. Generous relocation packages, compensation and perks for their family while abroad, combined with a top position when they returned home often spelled a financial boon.
Enter 2000: The very real threat of terrorism, down economies, cost-cutting measures, stricter tax and immigration rules, and exploding technologies that tie people together without leaving their offices all combined to make generous expat-assignment packages an easy target to slash.
The cost of traditional three- to five-year expat assignments is prohibitive for some firms. With increased globalization, companies are looking at local talent in emerging markets such as India, China and parts of Latin America to fill the jobs once the domain of expats. This practice not only saves money, it reduces cultural issues and incorporates local employees’ personal networks and experience. According to a survey by PriceWaterhouse Coppers, by 2016, 70 percent of companies plan to hire local talent overseas while only 19 percent plan to use expatriates to fill those jobs. Read More