Tag: research

Primary Motivations for Moving to Belgium

Without a question, work is the most important reason for moving to Belgium. Almost a quarter of survey respondents found a job in Belgium of their own accord, 13 percent of respondents were assigned by their employer and 9 percent were recruited here. After work comes ‘love’ as the most important motivation for moving to Belgium with 17 percent of respondents relocating for their partner’s job or education and 11 percent of respondents wanting to live in their partner’s country. These figures closely reflect the survey’s overall results, with the exception of those who found a job in their adoptive home country on their own (22% Belgium vs. 12% global).

Support Network

As any expat will tell you, having a support network is essential to settling in somewhere new. Whether this means weekly Skype calls back home or joining friends and family in your adoptive country for a drink, surrounding yourself with those who can offer moral support and knowledge is key. The vast majority of expats (77%) report they did not have any friends or family living here before deciding to move. Of the 23 percent that did have friends or family here only 8 percent had a support network in the same city.

Language Matters

Just as cultural differences matter, so does language. For the ease of Settling In Index, the Expat Insider survey looks at language: out of all the subcategories for this index, Belgium performs best when it comes to language, ranking 30th. Just over a third of respondents (36%) agree that learning the local language is easy, but 56 percent say that it is easy to live here without speaking the local language (vs. 33% and 46% respectively, across the world). Moreover, a large proportion of expats in Belgium (62%, including 8% who are native speakers) say that they speak the local language at least fairly well, compared to only 54 percent globally saying this about their host countries’ local language.

Beyond the Expat Bubble

Though stereotypes are all about expats tending to stick together, the InterNations survey suggests that the proverbial ‘expat bubble’ may be on its way out. Although almost half (46%) of expats report their social circle mainly consists of other expats, another 43 percent say it is made up of a mix of locals and expats, showing that expats do socialise outside of the ‘bubble’. These results contrast with the global responses, where just a third (33%) have mostly expats friends and the majority (48%) enjoying friendships with fellow expats and locals alike.

Socialising with Expats

Half of the respondents (49%) say this is due to the fact that most of their work colleagues are expats too and 41 percent believe that expats make up a high percentage of the Belgian population. Just 13 percent live in an expat neighbourhood and a mere 7 percent report their partner has mainly expat friends. A quarter of all expats surveyed regularly attends expat events or belong to an expat club or site.

Ease of Settling in

“When it comes to the Ease of Settling In Index, Belgium ranked 45th out of 65 countries overall,” says InterNations Media Spokesperson Vera Grossman. According to the Friendliness and Finding Friends subcategories, Belgium ranked 54th in both. Just 55 percent of expats rated the general friendliness of the Belgian population positively, compared to 70 percent saying the same about their host countries globally. Furthermore, only a quarter of respondents agree that it is easy to make local friends, whereas 42 percent say this globally. The fact that 45 percent of expats regard Belgians as distant rather than welcoming might play a role here.

Although Brussels ranks 29th overall according the Getting Settled Index (the city-counterpart to the country-specific Ease of Settling In Index), it ranks 40th for the subcategory of local friendliness. However, 51 percent of expats in Brussels rated the general friendliness of locals positively. And in addition 43 percent of expats agreed that it was easy to make friends in the city, compared to two-thirds of expats worldwide.

Family Life Abroad

Belgium boasts an overall ranking at the 16th place for Family Life and does best when it comes to the Quality of Education (10th) and the Cost of Childcare & Education (10th), despite the fact that only 44% of parents feel childcare to be easy to afford. Belgium even manages to outperform Sweden (2nd place) and is hot on the heels of global number one Finland when it comes to children’s general wellbeing. About 50% of expats opted for a local state school, whereas 26% choose an international school and only 2% opted for homeschooling. Eigthy-four percent of families are satisfied with their life in general in Belgium, compared to a global average of 80%.

Affordability

The survey results show a gap between satisfaction with personal finance (23rd) and cost of living (40th), which led us to ask InterNations what in particular was viewed as being expensive about life in Belgium. “Although the survey did not ask expats what they found most expensive,” Vera tells us “we did ask participants to rate the affordability of healthcare and housing, in addition to the question on how they rate the local cost of living. So, we cannot say what is the most expensive thing, rather the Cost of Living index aims to give a general overview of expats perception of costs in their host country. The Personal Finance Index, on the other hand, takes into account respondents’ satisfaction with their financial situation and in how far their disposable household income is enough to cover daily costs.” In numbers this translates to 51% of respondents feeling housing is affordable and 73% feeling healthcare is affordable in Belgium. With regards to disposable income, 47% felt it was more than enough for daily life, 38% felt is was about enough and 15% reporting their household income to be insufficient.

Satisfaction of Working Abroad

Getting to know the locals might not be the easiest but expats in Belgium generally report they are quite happy living there. When it comes to career and work-life balance, Belgium ranks above the global average coming in hot on the tail of the top three global destinations: the Czech Republic, New Zealand and Bahrain. With the global average for overall job satisfaction clocking in at 64 percent, no less than 67 percent of expats in Belgium report being satisfied with their jobs. When it comes to work-life balance, 62 percent of survey respondents report they are satisfied with their personal lives thanks to an average working week of 42 hours (44.3 global), compared to a 60 percent global average. On top of that, job security is where Belgium outshines the global average with 69 percent vs. 57 percent. Finally, the career prospects in Belgium satisfy over half of respondents (54% vs. 53% global), with the state of the economy keeping almost six in ten happy (58% vs. 56% global).

For the global survey results visit the internations website: www.internations.org/press/press-release/

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The idea of “work” and “working spaces” is changing rapidly, and a business needs to keep abreast of what attracts new staff and what keeps them content to ensure their business stays afloat. ReLocate brings you an amalgamation of two reports, both entailing information crucial to the attraction and retention of staff. The first report being a survey on students and young professional expats by BNP Paribas Fortis, understanding the motivations behind their want or need to relocate based on their job prospects gives businesses an insight on how to position themselves to attract the best staff. The second report is a Global Talent Trends Study from Mercer, an innovative group that uses analysis and insights as catalysts for change within organisations. Their report details the steps employers need to take to ensure they are retaining the best employees and explains how we are moving forward into an era of fierce competition between businesses for talent like we’ve never seen before.

Looking back: what motivates students and young professional expats to relocate?  – BNP Paribas Fortis

Understanding what motivates students and young professionals to up sticks and move their whole lives to another country is key in attracting the best talent. Knowing what the driving factors behind their decisions are enables companies to put in place the most effective recruitment campaigns and attractive employment policies. “Millennials are the driving force behind this contemporary intra-European mobility, with more and more young expats in Europe seeking new academic and professional experiences elsewhere,” states Salvatore Orlando, Head of Expatriates at BNP Paribas Fortis. Despite big changes in UK and American approaches to immigration these past months, the professional market in Europe is still open to vast levels of mobility. The survey was executed by the Think Young think tank, founded in 2007 and focuses entirely on young people, providing decision makers with high quality research on key issues affecting millennials.

MOTIVATION TO RELOCATE – MOST SPECIFICALLY TO BELGIUM
Students
Just over half of students polled stated that the main reason for leaving their home country and relocating to Belgium was dependent on the opportunity offered by university or school in their home country. A further 39% cited experiencing another culture was enough for them to want to leave home. Learning a new language or developing existing language skills was the key factor in motivating 39% of those who responded. The final outstanding motivating factor in students deciding to relocate to Belgium was that they felt that the move would have a positive impact on their CV and would then in turn maximise their career opportunities.

Young Professionals
The results of this survey on young professionals are much more defined, with a massive 80% of respondents stating that the move to Belgium was wholly based on the career opportunities here. Half of those surveyed cite personal development as a driving factor in their decision to move. While motivations such as learning another language, the standard of living or quality of life and indeed even financial reasons are way further down on the list. Andrea Gerosa, founder of ThinkYoung sees the clarity in the results: “It’s a meaningful move, driven not by the desire to have fun but by the willingness to learn more, improve skills, and enhance career opportunities.”

What does this mean for employers and educational institutions?
Employers and educational institutions have the hard task of pre-empting students and young professional’s career aspirations, and ensuring that they provide clear opportunities for career progression.

Educational institutions need to ensure that the courses they offer contain the latest curriculum developments, and that these are transferable should their students wish to change track – as students often do. Universities and colleges should do their best to attract the best teaching staff that employ modern teaching methods that are also tried and tested. It is also important to offer a wide variety of extra-curricular programmes where students can employ their talents in a more practical environment, gaining them valuable experience for their future in the workforce. Scholarships also ensure that students from a wide variety of backgrounds are given the opportunity to learn, providing the learning environment with a variety of opinions and perspectives.

Employers can use this information to entice the best young professionals to their organisation. Providing potential young employees with clear paths of career progression through well thought-out organisational structures, allows each employee the chance to climb the ladder or explore other areas of the business. Progression isn’t always up, it can be left or right, and when employers offer flexibility, such as secondments to other departments, or other locations – this can be the deciding factor for a young professional full of enthusiasm.

Looking forward: what practices can we put in place to retain the best talent? – Mercer

There’s no denying that 2016 was a trying year in more than one area. With the uncertainty faced by the Brexit vote, the big change in American politics and constant conflict in the Middle East it is crucial that companies shift their focus onto their workforce, to care for the health and wellbeing of their staff. Technological advancements are also having a massive impact on the workplace, how we work, where we work and how we can balance that with enough “down time” are all changing our view of the world of work. On top of all this, Mercer reports that 92% of employers expect an increase in the competition for talent this year.

According to Mercer, these are the top six ways in which they feel companies are going to respond to these new challenges:
1. Attracting top talent externally
2. Developing leaders for succession
3. Identifying high potentials
4. Building skills across the workforce
5. Supporting employees’ career growth
6. Increasing employee engagement

FOUR TRENDS TO WATCH FOR IN 2017
1. Growth by design
It’s all about transforming the internal structure of organisations and ensuring that the “people agenda” is not overlooked. In Mercer’s Global Talent Trends Study they state that 93% of organisations are geared up for a reorganisation in the next two years. Those who aren’t already in the throes of redesign may be left behind.

2. A shift in what we value
If an employee feels undervalued, it is likely that their output will decrease and they will eventually look elsewhere when deciding upon their professional future. Mercer’s study reports that 97% of employees want to be recognized and rewarded for a wide range of professional contributions, not just sales targets or financial results. The rewards employees are seeking are not just fair and competitive compensation, they want more flexible work options, they want opportunities to get promoted, they want leaders who set clear direction, as well as peers that will challenge them and help set the tone for the future of the company. Knowing how to reward employees is key to holding on to them.

3. A workplace for me
When an employee feels that they are not just a number, they are more likely to produce work of a higher quality and also more likely to stay within your organisation. Being able to personalise your employees’ experience will bring significant advantages to your output and staff retention levels. One way for your employees to personalise their working experience is to introduce flexible working options. Mercer’s study showed that the majority of employees want more flexibility within their roles, however not all organisations are as flexible as their employees would like. 1 in 3 employees indicated that they had requested a flexible work arrangement in the past, however they were turned down. Further to this, 1 in 2 employees expressed some concern that working part-time or remotely would negatively impact their promotion opportunities. There is clearly more work to be done here.

4. The quest for insight
Companies are collecting more data from both candidates and employees than ever before, Mercer questions how this data can be better used to gain actionable insights – we don’t seem to be using the data to the best of its abilities. Mercer states that even though many organisations around the globe are collecting data, very few are able to translate the data into predictive insights. Just 1 in 4 are able to produce basic descriptive reporting and historical trend analysis. Looking forwards, predictive analytics – such as identifying which employees are likely to leave – would be incredibly valuable however less than 35% of HR leaders are able to provide this information.

It is an exciting time for the employment market. Organisations are redefining and redesigning their internal structures and the results will eventually be a complete overhaul of employment and work in general as we know it. Concurrently, employees are demanding more of their employers and the more vocal they are the better. The more transparent employment processes are employees can be assured of a better fit within the organisation and employers will then benefit from loyal, happy, engaged and steady employees. Workplaces are becoming not just a place where we feel obliged to show up to within certain timeframes, they are morphing into fluid and flexible spaces where our talents are nurtured, our contributions are valued and we work together towards a future that we are all content to be a part of.

TOP TIPS TO WIN THE TALENT WAR
• Promote a contribution culture where everyone feels welcome to give input;
• Focus on the “whole person agenda”, including health and wealth benefits;
• Define exciting career paths for a positive impact on retention;
• Take a chance on non-traditional talent who have potential but not experience;
• Mitigate risk by building a diverse port-folio of skills and a culture of innovation;
• Create a sense of belonging that resonates with your diverse workforce.

Read the full reports:
BNP Expat Survey
Mercer Talent Trends

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Thanks to Leuven University, Europe’s eldest, the city has long been an international hub for students, researchers and companies. Their presence has done the region good, but it doesn’t mean the people who want more for Leuven can sit back and rest on their laurels. That’s why, in 2016, Mohamed Ridouani (alderman for SP.A) initiated Leuven MindGate, a network of local institutions, government bodies and industry sectors joining forces to guarantee long-term sustainable development, innovation and welfare in the region. How? By creating optimal circumstances for businesses (e.g. attractive tax conditions), research & development, studying and living.

Research + White Paper
Everything starts with people. With the aforementioned survey Leuven MindGate wanted to “investigate what makes Leuven an attractive place to live and work and where there’s room for improvement. A special taskforce was created to come up with practical recommendations and to specify the right actions required to establish this high-level living and working climate within the region”. The results are bundled in a white paper titled ‘Towards An Outstanding Working and Living Environment: needs and practices for supporting international knowledge workers’.

To start with a general conclusion: success boils down to integration. Not surprisingly these are the paper’s three main focus points: integration of the worker in his or her job, the family or partner into the new environment, and both of them into the Leuven community. In spite of the abundance of help on a wide variety of subjects that is offered by relocators and other specialists, several gaps in the supply of information for newcomers kept surfacing. It is here that the city has decided to step up and take responsibility.

A selection of conclusions from the report:
• The knowledge workers were least happy with the help offered in the search for a daytime activity (e.g. a job) for the partner, a school or day-care for the children and cultural integration;
• The partner’s wellbeing often seems to be the determining factor for a longer or even permanent stay in the Leuven region. Fewer than half (42%) of international staff currently feel part of the local community, 45% of partners who want to work in Belgium experience difficulties;
• The City of Leuven plays a vital role in the integration of international knowledge workers, but their initiatives are scattered and not all accessible;
• [Most] people want the City of Leuven to inform them about administration and registration, activities and healthcare;
• The gap-analysis between the importance rated and the quality of the support shows that in the future the greatest improvement (high importance combined with current low quality) can be made with actions targeting partner job search, housing, relocation, schools and childcare and tax matters;
• 54% of respondents indicate that more information from the City of Leuven about cultural and social activities would be useful.”

Leuven, hidden pearl (policy)
Alderman Mohamed Ridouani makes it his personal matter to address these issues. From an interesting but rather unusual portfolio containing (among others) economy, education and real estate, he works on the internationalisation of Leuven. Again integration is key here. “I try to make it one of my assets, because a city with a high quality of living – liveable, tolerant, bustling – is an attractive city. I visited Shanghai during the course of our research for MindGate, and found they’re experiencing trouble attracting knowledge workers partly because of the smog.”

Like many innovations, Leuven MindGate and the dream of an International House originate in frustration. Ridouani: “Leuven has and offers a great deal of opportunities. Everyone knows it as university town, but it’s much less known that we’re also leading in research. Because of that we’re only reaching part of the international talent that might be interested in working here, which means less companies, and less European research funds.”

Ridouani wants the world to see Leuven for what it is: a pearl. In order to do this Leuven MindGate has set two main goals. One: putting the city on the map for health, hi-tech and creativity (Did you know Teno-fovir, one of the most frequently used medications to treat AIDS was developed there?). Two: Combining forces for a larger (social) coherence. “There’s research going on at IMEC (world renowned nano-electronics research centre), there’s research going on at the university hospital, combine those two and you get biotech. This in turn opens up a world of possibilities for start-ups, investments and so forth,” Ridouani enthusiastically explains.

“The university is good for six hundred years of scientific development and gaining knowledge,” Riduani continues, “twenty years of transforming that into products and solutions lead to companies like IMEC that brought wealth to our region. And I don’t just mean financially, with 156 nationalities in one city we can speak of cultural wealth as well. The next step is to make sure we attract and foster activity and business for more prosperity, more jobs, an even higher quality of life. We can only make that happen if people stay.”

Laying the Foundations
When asked about remarkable conclusions that came out of the Leuven MindGate research, Ridouani says: “I was surprised to learn that such a large percentage of respondents like to live here, but they don’t feel integrated. I think 80% of the respondents said they don’t know who their neighbours are. In fact a very important reason for people to leave Leuven is their partners’ lack of activities and integration. I was also surprised that the city’s offerings like cultural activities, schooling, child day care, etcetera are hardly known. It supports my conviction that social cohesion starts on a very local level.” That’s where the International House comes in. Besides investing in affordable workspace and housing, issues like schools for accompanying children are a necessary means to remove the barrier to come to Leuven. In Ridouani’s words: “integration into the local society is a top priority”.

Even though the idea of one location where everything the expat needs is concentrated under one roof was a product of his own imagination, Ridouani is humble enough to admit that he might not be the only one to have had this thought. Research took him to Denmark, to the International House in Copenhagen. The house accommodates public authorities, public services, private services and the University International Staff Mobility team. It offers support before, during and after relocation and integration. “We also visited the International House in Eindhoven. Each has it’s own specialties, but the basic offer is the same: an overview of online resources and forms to prepare the expat’s stay and help in his or her search for accommodation. Once they arrive they will be guided through their emigration process. The International House will be a home base where expats can find all possible information they need to integrate as quickly as possible: information on schools, (cultural) activities, volunteering, job markets. Besides practical and administrative help, we are planning to organise events and a festive International Day. What I think will be unique in the Leuven International House is the integration of the International Primary School that is currently situated in Heverlee.”

“We already have 17.000 international workers in Leuven. I want them to feel at home, to break the barrier between them and the Flemish community, something the people from Leuven would like as well.” Ridouani sounds inspired. “The International House should become the central place for all affairs international, but I hope it will also become a symbol or flagship for Leuven’s international aura and ambition.” By no means is Ridouani planning to replace the service providers that are currently operating in Leuven: instead he’d like to join forces. As far as integration goes Ridouani is thinking big. “Think of all the local applications that research could lead to: city planning, mobility, safety, air quality…”

It looks like 2017 is the year in which many a relocator, expat and employer’s dream finally comes true: Belgium’s first International House is well on its way to becoming a reality. We highly recommend reading the report. Find it here:
www.leuvenmindgate.be/en/news-press/hr-event

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ReLocate does away with all the drama and takes a “stiff upper lip” look at Brexit. We’ve  consulted leading immigration law firms Fieldfisher and Fragomen, who in preparing their own clients for change during and after Brexit negotiations, have shared a few practical steps with us to keep us on the straight and narrow.

Overview of Outcomes
Yes, uncertainty is set to reign until negotiations commence in early 2017. Considering that the European Treaty established a negotiation period of at least two years in case of an exit, it is unlikely that there will be any immediate changes in the near future.

These negotiations could have a wide range of outcomes:
• The Norwegian, Icelandic and Lichtenstein model: the UK would remain subject to the majority of EU legislation, however there would be no role played in the decision-making process and no right to veto, including no independence from EU legislation nor the European Court of Justice;
• the Swiss model: ability to develop mutual agreements with the EU;
• the Turkish model: remaining part of the Customs Union;
• the “sui generis” model*: a completely new approach to UK / EU relations;
• total withdrawal from the EU*: if this is to occur, there would be swift changes to UK legislation.

From an International Business Perspective – Fieldfisher
Companies are best advised to anticipate change and ensure they are in a position to identify possible issues that need to be addressed as they arise. In doing so they can reassure staff on all levels. So what could possibly change? Establishing which regulations may be the most heavily impacted can be difficult, Fieldfisher has broken down the main points to be addressed into three main areas to be assessed within internationally operating companies: social security/welfare, employment law and of course, immigration. Fieldfisher has highlighted the existing regulations that may be affected, and what the knock-on effects of these changes may be.

1. SOCIAL SECURITY / WELFARE
883/2004 and 987/2009: regulates the social security scheme applicable to internationally mobile workers

Changes?
These regulations are likely to be repealed once the UK leaves the EU, and the mutual treaties previously established between countries will once again be activated.

Knock-on effects:
• The original mutual treaties limit the determination of the social security/welfare scheme to be applied and benefits covered therein;
• they do not provide for any regulation on simultaneous employment (two or more social security/welfare schemes operating at the same time);
• they do not systematically provide for regulations on accumulation of social security/welfare benefits/entitlements;
• they do not systematically provide guaranteed rights in respect of health/sickness costs.

2. EMPLOYMENT LAW
593/2008: determines the law applicable to employment contracts in a cross-border situation

Changes?
Employment contracts between EU and UK will no longer be viewed in the frame of the “free movement of workers” principle.

Knock-on effects
UK legislation will have to be rigorously applied in cases of EU staff employed in the UK being brought before a UK court with an extraneous element, and vice-versa. When UK employers employ staff on EU territory, they will have to rigorously apply the legislation of that EU state.

3. IMMIGRATION – from a business perspective
Changes?
This is still a hot topic of speculation. The UK Government could implement a points system not unlike that of Australia, although there have been indications that this is not preferred by the May administration. The UK borders are unlikely to close completely, however the UK Government is expected to implement some forms of restriction before the “divorce date” to limit a massive influx of people.

Knock-on effects
The knock-on effects of changes to immigration between UK and the EU are wholly dependent on the outcome of the negotiations. If the right to free movement ceases to apply or is restricted, those businesses built on sourcing international talent will then have to look to the new immigration and employment rulings for guidance regarding any future employment. Attempts to limit net immigration to tens of thousands will then result in severe restrictions to the pool of potential employees in the UK.
Fieldfisher’s advice on handling these potential changes within businesses:
• “Nominate a person or team of people who are responsible for monitoring employment issues. Ensure all staff have a contact person to whom they can address questions or express concerns in all the countries in which the organisation operates. This will ensure that all staff, wherever located get the same consistent message which in turn will give reassurance that the organisation knows what it is doing and what needs to be done as we approach Brexit.”
• “Staff may feel unsettled and anxious about how restriction to free movement may affect their right to live and work in the UK or other EU member states. Given the fact some EU legislation will be repealed, international mobility policies may need to be assessed and adapted, and ensure specialist advice is utilised.”
• “Encourage workers to list their entitlements to pension and other social welfare benefits when starting to work outside the UK.”

“The criteria for nationality applications are not always more demanding than those for long-term or permanent residency, and nationality is the more secure option to guarantee residence rights in the long term.” – Jo Antoons, Fragomen

From an Individual’s Perspective – Fragomen

Companies and individuals are naturally concerned about what Brexit will mean for EU nationals living in the UK and for UK nationals who are residing in another EU country. While UK politicians figure out what approach they will propose for those affected, individuals are wondering what actions they can take now. Fragomen suggest three key points of consideration for UK citizens currently living, working or studying in an EU member state who wish to take measures to safeguard their mobility rights.

1. REGISTER YOUR RESIDENCE IN THE HOST COUNTRY
According to Fragomen the first action step is to register your residence if this was not already done. UK citizens without a residence document who have been residing for more than three months in an EU member state should be encouraged to contact the national authorities and obtain one. Not all EU countries impose registration regulations on EU nationals, and in this case obtaining an official residence document before a divorce date is the safest way to avoid grey areas and maintain your right to reside in the EU even after a formal separation.

2. APPLY FOR PERMANENT RESIDENCE
Permanent residence rights and regulations vary from EU state to EU state. Some require five years of legal residence, some (including Belgium) request only three years when specific conditions are met. Fragomen suggest this action step with two reasons in mind:
• This confirms that you fulfill the requirements for the right to permanent residence, useful in cases of long absences from the EU member state where you currently reside;
• this maintains as many other rights as possible after Brexit. British EU permanent residence holders may have their status automatically transformed to that of non-EU nationals, whereby they are granted long-term residence for the whole of the EU or just the country where they currently reside.

EU or national long-term residence does not boast the same breadth of rights as EU permanent residence, however it does guarantee the right to continue residing in the host member state.

3. APPLY FOR NATIONALITY – but only if it is the right option for you
Obtaining the nationality of the EU country where you have been residing may appear to be the obvious option, however, before taking on an additional nationality, ensure that you’ve considered what is involved in the application process:
• Is dual citizenship allowed in your host country?
• What knock-on effects may a change in nationality have on your taxation status?
• Would this lead to a loss of rights? For example, some EU states grant less generous family reunification rights to citizens as opposed to those granted by EU free movement legislation.

That said, criteria for nationality applications are not always more demanding than those for long-term or permanent residency, and nationality is the more secure option to guarantee residence rights in the long term. Nationality can only be revoked in exceptional circumstances, while residency can be lost after two consecutive years of absence from the host country.

It is essential for businesses to maintain their own sense of structure and identity in this time of uncertainty. When approaching Brexit from an individual’s perspective, each unique personal situation must also be taken into consideration before making a decision. If we are able to maintain a sense of order, promote clarity and adaptability within organisations and keep open channels of communication we will ensure the best outcomes are achieved and business operations and lives carry on as calmly as possible.

With thanks to Stefan Nerinckx of Fieldfisher and Jo Antoons of Fragomen.
You can download their whitepapers by following these links:

www.fieldfisher.com
www.fragomen.com

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Increasing Mobility
There is a clear consensus that the volume of workers is expected to keep climbing. A strong majority of employers indicates the number of mobile employees in their organisations will increase or stay the same. As many as 89% of organizations indicated they plan to increase their mobile workers in the next two years according to PwC’s “Moving People with Purpose – Modern Mobility Survey 2014”.

KEY DRIVERS

Talent Gaps
Talent gaps continue to be cited as the top motivator for moving employees abroad with as many as one in three (34%) employers cited as “having trouble filling key positions.” (Moving People to Work)   The dynamics are also changing. The profile of the Western senior executive being sent to explore foreign market opportunities is long replaced with a more complex, horizontal portrait.

“Talent management has become a headache for CEOs, with only 30% saying that they have the talent they need to fulfill their future growth ambitions.”  (Talent Mobility 2020)

Expanded Reach
Employers also cite market expansion as a key driver for sending employees abroad. While this was also true in the past, the opportunities and barriers of market expansion have evolved. The balance between developed and emerging markets is shifting; while Western economies continue to send employees to emerging markets in droves, mobile employees from emerging markets are going not only to more developed countries but to other developing markets too.

“Nearly half of firms (45%) indicate some form of expansion impacted their relocation volumes.” (Corporate Relocation Survey Results)
“[Mobility professionals] regard new market growth as the principal driver behind the growing need for global mobility (60%).” (Strategic Global Mobility)

Leadership Development
Successful organisations are planning for their futures by making sure their high-potential employees develop a global mindset through international experience. They will have to be comfortable leading colleagues, and pursuing market opportunities, from very different corners of the world.  International experiences are seen as opportunities to build intangible leadership skills.

Attract and Fulfill
A key evolution is that employees themselves are asking for international assignments. It is not lost on the broader talent base that global experiences have become a stepping stone to promotion and mandatory for senior leadership.  While previous generations held mixed views regarding the personal value of international work, millennials in particular are increasingly requesting these assignments. International posts, then, are a key tool in the global contest for young talent.

The millennial generation will make up 50% of the workforce in less than a decade and a recent study by PricewaterhouseCoopers (PwC) reports that of 4000 millennial generation survey participants, 80% state that they want to work outside of their home country at some point during their career. It will be seen as a rite of passage.

Cost Pressures
Global economic confidence has hardly recovered from recent effects of the European debt crisis, let alone the global economic crash of 2008-2009, and cost management continues to place pressure on mobility professionals. This pressure isn’t slowing mobility volumes or even shrinking budgets, but is driving managers to more clearly demonstrate effective management and return on investment.

Compliance
Changing tax requirements and government regulations are quickly becoming the top risk faced by global employers. Governments in every corner of the world are ramping up pressure around enforcement of these regulations. As compliance becomes increasingly complex and increasingly important, employers appear to be increasing the levels of outsourcing this work to external consultants. Despite this rising need, many companies are facing avoidable penalties for non-compliance.

“Over-regulation is cited by 78% as a concern.” (Global CEO Survey)
“Some 40% of respondents reported that they did not have a formal risk control framework to monitor payroll tax and social security compliance, with 64% reporting they incurred avoidable penalties for non-compliance in 2012.” (Global Mobility Effectiveness)

Key Trends
Steven Cryne concludes that there are four important key trends that can be taken from the various reports:
(1) flexible program design as a result of a globalised talent pool, shifting employee demographics and demands; (2) increasingly strategic role for mobility in the organisation; (3) heightened focus and expertise in ROI and data analytics; and (4) more collaboration between business and government on labour regulations.

1. Global Talent Pool and Option Diversity
We are likely to continue to see an increasing variety in the types of assignments and policies, which is being driven by a number of factors. Cost pressures are driving employers to consider less expensive options for mobilising talent, ranging from short-term assignments and employing regional staff to virtual teams and “local plus” packages. Technology is making these different options easier to manage and demand from employees, especially millennials, is also driving flexibility.

2. Integrating Talent Mobility in Organisational Strategy
As the value proposition of mobility shifts, so might its role in the organisation. Mobility professionals and consultancies are all advocating for mobility to play a more strategic role and to become embedded in a diverse range of activities, playing a broader role in human resources.

3. Proving Return on Investment Becomes Crucial
All surveys that asked about tracking, evaluating, and other elements related to ROI clearly show organisations are not excelling in this area. “95% of companies don’t measure international assignment ROI… respondents simply are not sure how to do so” (Mindful Mobility).

“Three in four respondents expect to be measuring return on investment from mobility in two years’ time, compared with  just 9% who do this today. Fewer say they  can accurately quantify the cost of their programme. Even by 2017, only around half (49%) expect to be able to do this accurately.” (Moving People with Purpose)

4. Increased Government Collaboration
Employers have not been passive in response to heightened pressure over government regulations and compliance requirements. Even when their governments do not see it, employers know that mobile labour is a national economic advantage. Developed countries with ageing populations will become less dependent on domestic labour and employers – and associations – are helping them to recognise it.

“Indeed, 44% of CEOs plan to work with their governments to develop a skilled and adaptable workforce over the next three years. Twenty-seven percent want to collaborate with government to create a more competitive and efficient tax system.” (Global CEO Survey)

For the full presentation, please contact EuRA.

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“While most Western European cities have remained stable in this year’s rankings, UK cities have fallen,” said Kate Fitzpatrick, a Senior International Mobility Consultant at Mercer.  “However the drop is not as large as to be expected, with steep rental prices keeping UK cities up.  In the past year we’ve observed strong rental accommodation prices increase in Aberdeen, and to a lesser extent in Belfast. Although there has been only a slight increase in the average rental price in London, this cost remains at the higher end of the scale when compared to cities worldwide.”

“Although the value of the Euro has remained steady against the US dollar, the Pound has fallen, largely due to Brexit fears,” explains Ellyn Karetnick, Head of International Mobility at Mercer.  “But whilst currency fluctuations will always cause a major impact on costs, local conditions like high property prices can counterbalance the impact of currency movements.  It is important to understand local costs when deploying employees in countries across the world and we use the Mercer International basket of goods to help calculate rankings and packages.”

Few organisations are prepared for the challenges world events have on their business, including the impact on cost of expatriate packages.  This year’s survey again proves that factors including currency fluctuations, cost inflation for goods and services, and instability of accommodation prices contribute to the cost of expatriate packages for employees on international assignments.

Mercer’s survey takes into account 375 cities throughout the world; this year’s ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.

According to the 2016 survey, Hong Kong tops the list of most expensive cities for expats, pushing Luanda, Angola to second position.  Zurich and Singapore remain in third and fourth positions, respectively, whereas Tokyo comes in fifth, up six place from lst year.  Other cities appearing in the top 10 of costliest cities for expatriates are Shanghai (7), Geneva (8), N’Djamena (9) and Beijing.  The world’s least expensive cities are Windhoek (209), Cape Town (208) and Bishkek (207).

Nathalie Constantin-Métral, Principal at Mercer with responsibility for compiling the survey ranking, said, “Despite some marked price increases across the region, several local currencies in Europe have weakened against the US dollar which pushed a few cities down in the ranking. Additionally, other factors like recent security issues, social unrest, and concern about the economic outlook have impacted the region.”

“Cost of living allowances are intended to help protect the purchasing power of international assignees, and can go up or down depending on inflation levels in the home and host location, and the movement of exchange rates.”

Two European cities are among the top 10 list of most expensive cities.  At number three in the global ranking, Zurich remains the most costly European city, followed by Geneva (8), down three spots from last year.  The next European city in the ranking, Bern (13) is down four places from last year following the weakening of the Swiss franc against the US dollar.   Several cities across Europe remained relatively steady due to the stability of the Euro against the Dollar.  Paris (44), Milan (50), Vienna (54), and Rome (58) are relatively unchanged compared to last year, while Copenhagen (24) and St. Petersburg (152) stayed in the same place.

Brussels meanwhile has climbed the rankings quite significantly, coming up 16 places (from 102 to 86) this year.  Nathalie Constantin-Metrál believes the rise in utility costs in Belgium has a large part to play in this as goods and services  in general increased only slightly.

When we enquired about the expected impact of the impending Brexit Kate Fitzpatrick said “Cost of living allowances are intended to help protect the purchasing power of international assignees, and can go up or down depending on inflation levels in the home and host location, and the movement of exchange rates. Generally speaking, the requirement for any sort of cost of living adjustment increases for assignees from a location with a devalued currency (e.g. UK outbound assignees), while the reverse is true for assignees into such a location (e.g. UK inbounds), as the home country currency now goes further and therefore requires less of an adjustment to maintain purchasing power in the host location than in the past.

That said, organizations take many different approaches to the exchanges rates used to calculate such allowances, the frequency with which they review them, and the thresholds at which they would make any off-cycle interventions, so there will be a range of ways for companies to manage this over the coming weeks and months. It is also important to remember that currency movements – even moderately significant ones – are not uncommon, and many multinational companies will have defined mechanisms for dealing with such volatility.”

Mercer produces individual cost of living and rental accommodation cost reports for each city surveyed. To purchase copies of individual city reports, visit:
www.imercer.com/products/cost-of-living.aspx

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