As an international news agency covering events as they unfold, Agence France-Presse (AFP) often sends reporters into dangerous locations, either for a few days or a longer-term assignment. But whatever the length of stay, the news agency will insist on the staff taking a thorough hostile environment training course, which can last three or four days.
"It is standard policy. No matter how stretched we are to cover the news, if somebody hasn't done the course they simply cannot go," explains Philip Chetwynd, AFP's chief Asia editor, who handles regional staff assignments. "It gives the reporter a full understanding of hostile situations, from how to judge different weapons by listening to their sounds to how to drive in a difficult situation and basic first aid. It's quite an extensive course."
Not all hardship postings are dangerous, but whenever and wherever employees are relocated, they need to be properly prepared. Understanding the reasons why the employee is applying, making sure that the assignment has been talked through and agreed within the family, providing security on the ground and having an exit strategy if the local situation becomes volatile are some of the many considerations a company must take into account when sending employees into difficult locations.
Setting hardship allowances
Hardship locations are often associated with war-torn countries or countries with difficult climatic conditions, but for many expatriates hardship is can be defined as the difference between their living conditions at home and those in the new country.
To compensate for this gap, companies will generally consider paying a hardship allowance. "The aim is for the employee to maintain the same standard of living and cost of living as in the home country," explains Lee Quane, general manager, ECA International, a global provider of online data, software solutions and advice on international HR management.
"Therefore, what is important is not only where you're sending the person to, but where the person is coming from as well."
Different factors can contribute to making the host location undesirable, dangerous, or difficult. From the climate and physical conditions (e.g. risk of natural disasters) to pollution, health risks (poor sanitation and disease), physical remoteness, and crime and harassment.
"We estimated that East Timor is actually one of the most expensive locations in Asia, because of the cost to import a given basket of goods," Quane says.
To calculate the allowance, many companies look to the US State Department, which sets compensation guidelines for thousands of American citizens assigned to posts abroad, with differentials ranging from five percent to 25 percent of base pay. The State Department calculates a 'hardship differential' intended to compensate for living in unhealthy or physically difficult conditions, and a 'danger pay' intended to compensate for living in the midst of civil insurrection, civil war and terrorism, which presents a threat of harm or imminent danger to the employee.
Other companies use rates recommended by consultants or consulting organisations. The London-based Economist Intelligence Unit (EIU) measures the broad social and economic hardships faced by expatriates in 130 cities, preparing the annually surveyed rankings after considering 12 factors, including health and safety, threat of violent crime, climate and environment, education, culture and infrastructure and corruption. The EIU recommends a hardship allowance of 20 percent of base salary for cities with a rating of 'extreme' hardship, like Phnom Penh and Karachi.
"Sending staff from Singapore, there are very few locations in Asia for which we would not recommend some sort of hardship allowance, just because the quality of living here is so high," says Quane. "We recommend hardship allowances from 10% up to a maximum of 30% - the more difficult the location the higher the allowance. However, you'll find that if you send somebody to Kabul you'll be paying more than 30%."
Preparing your staff
HR professionals agree that the most important factor in the success of any relocation is the employee's family. As such, when sending people into a difficult location, the company must make sure employees understand just exactly what they and their family are getting into.
"The financial incentives are important, but the family issue is critical to the success of a relocation," notes Mark Ellwood, director of Robert Walters. "Family pressure is usually the main reason for a relocation's failure, and obviously if it is in a hardship location it puts even more pressure on the family."
According to a global survey by Mercer Human Resource Consulting, two-thirds of companies (66%) provide no incentives or support to help partners settle in the host location, and where support is available, it is usually only given when specifically requested. For example, only 7% of companies offer partners information on the local job market, although 37% said they would provide it if asked.
"An unhappy spouse can often cause an assignment to fail, so not spending money on support services can be a false economy for companies," said Yvonne Sonsino, Principal at Mercer Human Resource Consulting, announcing the survey result. "While integrating partners into the local community may take time and money, it can ultimately pay off."
When moving someone abroad, an organisation should not just be concerned about moving the employee, but consider the impact of the move on the family, explains Ellwood. For example, if the spouse is already working, will she or he be able to find a job relatively easily? Are there places in a good school for the children?
Consultants advise companies to send staff for a pre-assignment trip, regardless of the location, as an opportunity to meet colleagues and get feel for the location.
Security is paramount
"The pay package will reflect the place where they are going. But in difficult countries like Afghanistan or Iraq, the company will make sure their employee is happy on the ground and that their life is as normal as possible there," says Chetwynd, adding that security arrangements at the various bureaus was tight and regularly reassessed by hired security consultants. "Things can change very fast," he warns.
Chetwynd noted that in very dangerous locations, staff were unlikely to take their family. But the company offers extended leave which staff have to take.
"It's imperative that you make proper security arrangements, because not doing so will have legal implications for the company," Quane says, pointing to examples in Chechnya where companies were successfully sued for not providing adequate security to staff members who had been kidnapped and murdered. "You could be held legally liable if you have not taken sufficient security measures," he warns.
Such measures might include employing drivers with security training, driving different routes everyday; providing a secure living environment.
What if it goes wrong?
Tony Ridley, Regional Security Director for Asia Pacific at International SOS, believes many companies are exposed to crisis management because they failed to plan and make the necessary arrangements ahead of time.
"Preparation is critical to success. Do they have water storage? Do they have sufficient food to sustain them for 48 hours? Do they have travel documents with them? Do they know where their staff live?" he asks.
Ridley recommends having a copy of the company's plan in an easy to carry, but secure format, either in the wallet or on a PDA. It should list what the employees are expected to do in the first response, list the contact number of the service provider, and give a point of contact with embassies etc.
Importantly, in remote areas, alternative modes of communication must be set up because a mobile phone network can be cut off in the case of a natural disaster or security alert (bombs can be detonated via mobile phone). "These [alternative modes] could be either via email or satellite phone," he says.
Chetwynd says that AFP has contingency plans in place and works closely with embassies to help evacuate staff if need be. One of these plans was recently tested earlier this year, when daily riots nearly led to the toppling of the King of Nepal. "The situation was increasingly difficult and plans were set for the evacuation of an expatriate family out of Kathmandu, but within 24 hours the situation had become quieter and the family stayed put," he says.
Women Abroad
Companies in Asia-Pacific have 16 times more females on assignment this year than they did in 2001, one survey found, yet companies are still less likely to send women to hardship locations than men.
A global survey by Mercer Human Resource Consulting found that although the companies surveyed generally do not have separate policies for female expatriates, there are differences in the treatment of male and female assignees. For example, 15 percent of companies said they would not send women to hardship locations such as the Middle East. The survey also shows that female expatriates are more likely than males to leave their partners at home when on assignment.
Over half of the companies surveyed expect the number of female assignees to continue to increase steadily over the next five years, while 35 percent believe the number will remain the same.