Flexible moves

The increasing mobility of foreign talent, coupled with substantial growth opportunities in Asia, is likely to mean a wider range of foreign talent will be gracing Asian shores over the next few years. This brings up both supply and demand issues, but for many HR professionals, it means incorporating a larger amount of flexibility in their employment offers. They are having to create personalised work arrangements for each expatriate, in order to attract and retain that talent.

Traditionally, expatriate benefits are based on the equalisation principle, ensuring that the employee does not lose out financially as a result of relocation. Benefits such as housing, children’s education and tax equalisation have to be equitably provided in order to compete with employment opportunities in the expatriate’s home country.

Still, that flexibility is not always possible. One of the main challenges for multinationals operating in the Asian region has been to get their corporate headquarters on side. Local HR stakeholders require leeway and flexibility in implementing international assignment policies but are often stalled by rigid group-wide regulations.

One compensation consultant, based in Singapore, says this is particularly true when it comes to bringing talents from west to east, adding that senior leaders need to trust the judgment of local HR stakeholders more. “While there is a risk that providing too much leeway can result in chaotic management of international assignments, too much rigidity can also be harmful to mobility,” he tells HRM.

This is all too common a problem when policies written for developed markets, such as the US, are carbon-copied into an emerging market, such as China. Take standard pay rises for example. Where salary increments of 5% are celebrated in the US, growth in China is such that 10% or even higher can be the expected norm. Companies that are forced to offer such limited pay rises can face significant retention problems – and staff in the headquarters may have little idea why.

The retention test

For internal employees, retention often becomes an issue toward the end of the overseas assignment. Staff often feel reluctant to return to their home country, or more typically, their old job.

Lim Chye Lian, Managing Director of Executive Talent International (Singapore), says this is a particular problem with high level executive talent. She says they may enjoy the local lifestyle and be looking to make a more permanent home in the region.

They may enjoy the lifestyle of Asia, or have found local partners and would like to call the region home. Even so, few organisations will include these staff in their local plans. “Despite the frequency with which this scenario is occurring, it is still the exception that organisations include expatriates in their Asia talent management plan,” Lim says. “Often, the convenient option for the expatriate determined to stay in Asia, is to cross the street to work for a competitor because a clearly defined career path may not exist to keep him in the (original) company.”

Talent management is also an issue at Microsoft in Singapore. As Jessica Tan, Managing Director, shares, one of the biggest challenges is building a strong pipeline of leadership talent. This is because the roles require an individual to be all-rounded, experienced and mature.

“It is even tougher in emerging markets, which offer tremendous growth opportunities,” she said. “When it comes to talent retention, the best and the brightest people from emerging markets aspire for careers and opportunities in developed markets – so building a talent pipeline in emerging markets is especially challenging.”

Lim says HR directors need to play a bridging role between the host country and the expatriate’s home office. It’s up to them to ensure expatriates, who clearly hold desired skills and competencies, don’t fall between the cracks of the company’s global career management processes.

“I believe host-country HR directors in Asia who take on this role, and ensure that expatriates’ careers are incorporated into the company’s total talent management plan, will play an invaluable role in contributing to the success of their organisations.”

India-headquartered Tata Consultancy Services (TCS) tells HRM that its positive and open work environment is a key to retaining expatriates across its 42-country network. Sivakumar Sanka, HR Head for Tata Asia Pacific, says ensuring foreign staff settle into their destination smoothly, both work-wise and personally, is a key objective. Cultural sensitisation programmes and competitive benefits are the key strategies, he says.

Finding suitable accommodation and schooling options are a third concern for many expatriates working in Asia. Sankar says attention to these details help to ensure a safe and enjoyable transition to the relocating family. “We also provide schooling-related benefits to help promote overall employee and family well being,” he says.