Many companies are opening up their "mobility toolbox" and revisiting their policy requirements as they continue moving towards purpose-based assignments, which match the type of move and the associated reward package with the business and career development reasons for the move.
In 2016, global mobility teams will be focused on developing alternative and targeted policies as they design specific programs aimed at achieving both short and long-term strategic business goals.
Where will this trend in approach take a program?
The hope is to have:
- more agile movement of talent
- greater cost effectiveness, if not cost reduction
- greater alignment to talent management
Per a recent Mercer survey, 56% of multinational companies expect an increase in short-term assignments and "over the next year or so, around half the companies anticipate an increase in the use of permanent transfers (54%) and developmental training assignments (50%). A smaller proportion of respondents (44%) expect to see an increase in more traditional long-term assignments."
If you are not able to make these same predictions, it is time to engage the business managers to see what will be needed.
The report noted a marked increase in companies with multiple policies (64 per cent, up from 57 per cent), a consequence of the diversifying trend in assignments. “One policy is unlikely to fit all, and such an approach can lead to inadequate compensation which again can make it difficult to attract and retain talent. “Implementing fit-for-purpose policies, to suit both different assignees and assignments, can be a highly efficient cost-saving initiative for most global mobility functions,” said Thissen.