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11 Jan 2018
by Audrey Rowley

How to reduce risks when sending employees on international assignments

PWC has predicted a 50% rise in the number of people going on global assignments by 2020 and many companies will be sending employees overseas this year. However international assignments are not without their risks and the cost of failure is high.

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The PWC figures are high. According to PWC/Cranfield School of Management – Measuring the value of International Assignments, the average assignment costs $311,000 (£217,000) per year, but 40% of all overseas assignments are judged as failures, with most failing because employees and their families can’t adjust to the local culture and environment.

Failed assignments can cost businesses thousands of pounds, but it’s also the emotional stress for employees and their families if things go wrong or they can’t settle which can take its toll.

However, there are plenty of measures companies can take to ensure that assignments go well. This can range from pre-assignment health screenings, to ensuring someone is fit for the assignment prior to them going, through to cultural training for the whole family.

Here are some tips for companies relocating employees abroad this year:

1) Ensure the employee is medically fit

Medical screening will help companies predict, prevent and reduce the risk of problematic health risks occurring. The screening will check someone is fit for assignment and provide a clear audit trail of proactively managed duty of care. It’s better to know if someone is fit and healthy before they travel, so this is one of the first things for a company to do before deciding to offer someone an overseas role.

2) Make sure any drugs that the employee/family needs are legal

It’s vital to ensure an individual’s medication is legal and easily obtainable in their destination country. Ruling out unsuitable candidates at an early stage will save money and time.

3) Give cultural training prior to travel

This will support the employee/family and prepare them for the culture and life when they relocate. One way to do this is through cultural workshops, which will ensure families know what to expect, prevent surprises and ease their settling in.

Cultural training is even more important in areas that are very different from home such as Asia and the Middle East, but even in Europe understanding cultural differences before moving there makes settling in easier.

4) Language skills

It’s worth offering intensive language courses for the whole family, if appropriate for the destination. These not only help in the business environment, but also make accessing schools, hospitals and other services easier.

5) Consider an expatriate employee assistance programme (EAP)

Often employees receive very little support once they arrive abroad and they can feel alone should anything happen such as divorce, health problems etc. Expatriate EAPs can be a good option for providing a family with 24/7 support, reassurance and peace of mind.  They can be relatively cheap, around £15 per family per year, and give people access to online support, plus options for face to face counselling.

6) Provide international medical insurance

Finally, it’s important to give employees reassurance their medical costs will be taken care of and they will be given support in sourcing care. In most countries there is no NHS equivalent, so medical insurance is essential. Employers should also check their policies include repatriation costs in the event of an employee death whilst abroad.

A successful overseas assignment depends on the individual and the support they receive. Having a comprehensive benefits and support programme that starts in the UK and continues throughout the assignment can alleviate the risks of failure and provide employees with support to address any issues and ensure the assignment is a success.

Audrey Rowley is managing consultant international at Punter Southall Health & Protection

This article was supplied by Punter Southall Health & Protection. 

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