Moving employees across borders creates a serious risk environment on many levels, however risk management continues to be an often overlooked element in the global mobility framework. This can end up being costly for the employee and the company, both financially and legally, and can adversely impact the employee and family experience, leading to lost investment and attrition. In this article we explore some of the often overlooked key risk areas as well as some of the solutions available to help mitigate these risks.

Candidate/family assessment
One of the most obvious risk areas lies with the employee and family themselves. The most common cause of assignment failure is due to the family’s inability to assimilate into the new host location. Candidates will need to be assessed based on the skills and competencies required for the job, however just as important will be the cultural adaptability and lifestyle fit of the employee and family. Various candidate and family assessment tools are available on the market to highlight potential gaps in cultural or behavioural fit. HR and recruiting can also asses the family situation to uncover any potential unique circumstances that may hinder the success of the assignment, i.e. sick or dependent parents, special needs or gifted children, health problems, reluctance of the spouse to move due to career or other reasons, etc. By conducting an extensive assessment of the whole family’s readiness to move to the new country, potential challenges can be raised early and discussed upfront. Many times solutions and additional support may be available and will help make the assignment a success, however at times both parties may also decide this opportunity is not the right move at the present time, thus saving a lot of heartache, wasted investment and most likely an upset employee more inclined to leave the organization.

Health – health checks, wellness and global health cover
Health is one of the most serious risks to consider when moving overseas. A comprehensive health check should be conducted prior to accepting a new international assignment to understand if there are any health issues that will need to be addressed, especially so if moving to a less developed country. Going into a new country with an unchecked health issue could be a disaster waiting to happen, especially going into what can often be a stressful and demanding new role, in an unknown environment with different levels of hygiene and pollution that the body is used to. This can sometimes trigger an underlying problem, such as gastric, respiratory or heart related issues. Having a full picture of health going into a new assignment will allow planning and lifestyle decisions to control any risks. Global health cover will also be paramount, with a comprehensive in and outpatient cover as well as evacuation assistance. To avoid nasty surprises the policy will need to be clearly communicated to the employee and family to identify potential issues around pre-existing conditions, with any gaps that need to be plugged through additional insurance. Multi-tiered insurance products exist to match the cover to the employee and family’s needs, thus potentially saving costs. Insurance brokers can also undertake a comprehensive review of a company’s insurance needs and advise cost effective solutions available in the market, as well as providing top up options on an individual level.

Companies are also focussing on wellness programs in order to reduce health insurance claims and save on long term premium costs. This includes health and nutrition programs, regular health check-ups and other work life balance schemes. Expats can fall outside of some of these local programs therefore need to either be included or specific benefits designed to support this group.

Employee Assistance Program
Employee assistance programs or EAPs are common benefit features of companies today, however few companies have programs suited to the intricacies and challenges experienced with an international assignment. An international relocation is often cited as one of life’s most stressful events! Add to this the additional stress of a new job in a completely new country and culture and you’ve got the perfect storm of potential personal and family stress related issues. It will be important that your EAP provider has the specialized skills to deal with the intricacies of an international assignment. Solutions such as Axa’a ICAS international EAP program offer global solutions that cater for cross cultural and international moves, with a pre-assignment intercultural assessment for the family and preparing the family for the culture shock and cycle of cross cultural adjustment. EAP programs should ideally provide the general life management services for both the employee and the family as well as specific assistance for managers that may be struggling with certain aspects of the new role, including employee engagement, communication or other performance issues.

Personal financial management – pensions, investments, social security & tax
Moving overseas creates a myriad of financial complications that if left unattended can have a significant impact on an expatriates long term finances. It pays for employees to talk to a financial advisor experienced in international affairs, to conduct a comprehensive financial plan prior to the actual move. This can involve planning around pensions, home country social security schemes (including the ability to continue contributions), tax planning and ongoing investments. Significant investment and tax planning opportunities exist when moving offshore, therefore the assignee has the opportunity to restructure their assets accordingly to capitalise on their new tax regime and in some cases move their wealth offshore if advantageous, consequently removing it from their home countries tax treatment. Understanding local schemes available in the host country as well as portability of any pension plans will be of upmost importance. Tax advice should also be provided related to ongoing tax reporting requirements, especially related to home and host country tax filing.

Insurance
Insurance remains another area of concern for mobile talent. Most companies will provide some form of life insurance, however the employee will need to clearly understand the benefit and decide on any top up options (i.e. increased cover, spouse protection, etc) as well as portability if the employee moves to a new country or employer. Insurance brokers experienced in expatriate matters are able to provide a complete protection assessment, reviewing the cover already in place and then identifying potential gaps or surpluses. At a company level professional brokers can help source the market and build comprehensive risk plans for employee groups, including local employees, foreigners as well as key person insurance or shareholders insurance.

Retention
One of the biggest risks of an international assignment is that the employee will leave the company either during or shortly after the assignment. There are a number of ways a company can help mitigate this risk, the primary one being a robust talent management approach to international assignments. This includes a smart assignment hiring process, ensuring the right talent is in the right role and set up for success, clear assignment goals and commitments, a sponsor and mentor program working with the assignee and HR in coaching the employee during the assignment and driving the career development plan. This will include a well-planned repatriation strategy to ensure the employee moves into a challenging role at the end of the assignment, leveraging the newly learned international skills.

It is impossible to cover every eventuality, however with the additional support listed above companies can provide a more holistic risk management approach and greater duty of care to their population of international employees. This will allow mobile talent crossing borders to understand more clearly some of the risk areas impacting their move and provide them with the tools to mitigate those risks and support the family. Hopefully this will then lead to a better prepared and happier family, a more productive employee and a successful assignment with less retention risks.