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Feature The global executive Credit: Jos Schmid From expat manager to global executive Despatching old hands from head office to run the show in new territories has been a feature of international business. But a competitive, globalized marketplace is reshaping the nature and dynamics of the expatriate assignment. Summary The traditional expatriate model is changing as companies get to grips with a changing global economy. Executives • By Paul Kielstra are not just flowing from West to East, but in all Viewed through a narrow lens, directions. Overseas the traditional corporate expat postings can be a seems alive and well. Cost powerful tool to share cutting during the recent downturn expertise and build dented the enthusiasm of companies leadership talent, but for sending people abroad, but now there are many firms are stepping up the number of practical difficulties such assignments. that can impede their Ernst & Young’s recent Global success. Mobility Effectiveness Survey found that, although the number of companies with at least 1% of employees on a short-term international assignment declined precipitously from 48% in 2008 to just 20% in 2010, it bounced back up to 33% during 2011. Longer-term assignments, which are harder to cut rapidly, never went out of fashion: the proportion of businesses with more than 1% of employees on long-term postings rose steadily from 27% in 2008 to 46% in 2011. In line with the rebalancing of the global economy toward high-growth emerging markets, these are the primary destinations for expatriate postings. About six in 10 (61%) of companies polled have seen an increase in the number of international transfers to emerging growth markets in the last three years. Nearly seven in ten (68%) expect to see a further rise in the next three years. Other studies back this up. A 2010 Economist Intelligence Unit (EIU) survey indicated that by far the most international transfers still originate from Western Europe and North America, with China and the rest of Asia the most common destinations. The key drivers for such assignments are strategic and managerial needs. In the EIU’s words, “The traditional expat model is alive and well”. New patterns of postings But all this misses some significant changes. The most obvious is the evolving traffic patterns of executives. Philippe Waty, Group Head of Compensation and Benefits at Novartis, the Swiss-based global pharmaceutical company, has seen a “rapid change with respect to executives moving out of developing countries, with many people from India and China coming to developed countries over the last few years.” Others agree. Susan Steele, Global Chief Human Resources Officer at Millward Brown, a global brand insight consultancy, explains that, “In the past, it was one-way traffic from the United States and Europe to the rest of the world. Now, in sending people to Africa, we are taking folks from India and vice versa. It is becoming much more blended and less one-way. Going on assignment will be the norm for this current 8 T Magazine Issue 07 Ernst & Young
Credit: Xxxxxx / NameVorname GCR today Feature Philippe Waty, Novartis __ As Group Head of Compensation and Benefits, Philippe Waty is responsible for developing Novartis’ pipeline of emerging global executives, a growing number of whom hail from markets such as India, China and Latin America. Ernst & Young Issue 07 T Magazine 9
Page 1 and 2: T Magazine 07 Magazine Tax insight
Page 3 and 4: Stephan Kuhn Your feedback We work
Page 5 and 6: Global tax news A roundup of recent
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Page 11 and 12: Credit: Reuters / Handout, Iron Ore
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Page 15 and 16: 80% of graduates want to work inter
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Page 19 and 20: which the employee is left to fend
Page 21 and 22: Credit: Philippe Schlienger Human A
Page 23 and 24: Living costs The relative costs of
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Page 29 and 30: who live in several countries throu
Page 31 and 32: Credit: Muir Vidler Expatriate post
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Page 35 and 36: factors were economic opportunities
Page 37 and 38: Videoconferencing, as it was envisi
Page 39 and 40: Credit: Cisco Pics Virtual technolo
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Page 45 and 46: Sacha Sadan __ Director of Corporat
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Page 49 and 50: Biography A clinical professor of l
Page 51 and 52: Comments If you would like to conta

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