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Keystone Assignment Your Keystone Assignment relates to chapter 11, “International Human Resources Management” from the textbook “Multinational Management” by: Cigna-NFTC Survey Indicates Expatriates Want More from Their Employers. (2013, December 5). Health & Beauty Close-Up.
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, designed to reinforce the course’s learning objectives, and in conjunction with the final exam will provide a measure of your material’s knowledge and critical thinking skills.This case discusses a recent survey conducted to uncover some of the challenges facing expatriates as they go on international assignments. The report emphasizes the gap between what multinationals offer to their expatriates and what these expatriates perceived as missing Instructions*Your case study analysis will require you to complete the reading for Chapter 11, “International Human Resources Management” from the textbook “Multinational Management”*Download your pdf file that contains your case assignment *Write at least 3-page paper in answering the following three (3) questions:- Why is it so costly to employ expatriates in other countries? What are some of the major costs associated with expatriates?- What are some important trends revealed by this survey? How do these trends compare to the report conducted in 2001?- If you were the HR manager for a multinational, what would be your recommendations as to how to improve services offered to expatriates?*Included on your paper conduct research via STATISTA database that is related to a “remuneration package” to a local employee’s salary in a region or country of choice as an example Latin America (Brazil, Chile Argentina) Europe (France, Italy, Germany, Spain).*Your summary writing content must be in an APA format.*Your work must be properly cited APA format.*Write original, do not paraphrase in more than 30% of your content.*The paper will be submitted via “SafeAssign”*It is required to cite your textbook and STATISTA *Review the rubrics that you will be graded on. Disclaimer: This is a machine generated PDF of selected content from our products. This functionality is provided solely for your
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Cigna-NFTC Survey Indicates Expatriates Want More from
Their Employers
Date: Dec. 5, 2013
From: Health & Beauty Close-Up
Publisher: Close-Up Media, Inc.
Document Type: Article
Length: 1,824 words
Lexile Measure: 1580L
Full Text:
A new survey from Cigna and the National Foreign Trade Council (NFTC) shows areas of dissatisfaction among the globally mobile
workforce that may jeopardize employees’ successful completion of assignments outside their home countries and diminish their
employers’ return on investment in them.
In a release, the company noted that in the century since Ernest Hemingway and others romanticized expatriate life in Paris, the
globally mobile population has grown along with increased global business. Family stress, cultural differences, increased workloads
and burn-out can undermine up to one third of all global expatriate assignments, despite a significant investment by multinational
companies estimated at three to five times an employee’s salary. The NFTC and Cigna’s Global Health Benefits business sponsored
a new independent study of expatriates to gain insights into their perceptions and experiences and to track trends since Cigna and
the NFTC conducted a similar study in 2001 – all with the goal of helping employers better understand and satisfy the needs of their
globally mobile workforce.
“While many industry surveys illustrate the job employers feel they’ve been doing to prepare and support their corporate expats, little
has been heard from the expats themselves in the last decade. This survey allows us to examine disconnects between employees
and employers – and sheds light on how to better support the globally mobile workforce, and in turn, the companies who appreciate
their valued assets around the world,” said Sheldon Kenton, Senior Vice President, Global Employer Sales, Cigna.
According to this survey, in most cases, employers are providing the resources rated as most important by expats, including general
relocation services (80 percent), settling in services (63 percent) and medical preparedness (65 percent). However, there are many
unmet expectations among the expats surveyed:
-59 percent of expats said they were unaware of their employer’s repatriation assistance and didn’t know whether their employer
would track what happens to them after they return home. This low awareness score can be translated into dissatisfaction, as expats
perceive lack of employer interest in them after their assignment concludes.
-Mobile technology was not a key factor in these expats’ communication needs, with 70 percent saying they relied on their laptops to
access information and only 10 percent saying they preferred to use a smartphone.
-78 percent of expats or their family members have accessed medical care while on assignment. Expats under age 34 were
considerably less informed about the specifics of their health plans. For example, their uncertainty about claim handling was four
times higher than the average of other age segments, and their lack of knowledge about where to access health care services was
triple that of other segments.
The survey also indicated that having a family greatly influences an expat’s health care behaviors. Those on assignment with
spouses or partners and children were most likely to access care, with percentages as high as 91 percent in these segments
compared to single expats (64 percent) and expats without children (67 percent.) Expats with spouses, partners and children back in
their home country were most likely to seek routine treatment in their home country rather than locally where they were assigned. For
example, only 41 percent of expats without family had accessed care locally while 83 percent of expats with spouses or family with
them accessed care locally.
Bill Sheridan, Vice President International Human Resources, National Foreign Trade Council noted, “It’s imperative for employers to
ensure that their most valued resource – their human capital – is equipped with all of the information necessary to ensure a successful
expatriate assignment. Valuable employer-sponsored programs and services made available to expats scarcely yield their intended
benefit when they aren’t effectively communicated.”
When compared to expats in the Cigna-NFTC 2001 survey, today’s expat is older, on shorter assignments, and is leaving his or her
spouse and family back home more often. In 2001, expats aged 25 to 34 made up 35 percent of the survey, down to 17 percent in
2013. In 2001, eight percent of expats with a spouse or partner were traveling without their spouse or partner on their assignments,
while in 2013, that number nearly tripled to 23 percent. In 2001, 18 percent of expats with children did not have their children with
them on assignment, and in 2013 that number almost doubled to 34 percent.
The trend toward shorter assignments has doubled since the 2001 survey, with 13 percent expected to be on assignment a year or
less in 2013, compared with six percent in 2001. Today, 37 percent expect to be on assignment two to three years. Expats in the
2013 survey were seasoned professionals, with 44 percent having one to three assignments already and 50 percent of respondents
saying they’re likely to take additional assignments in the future.
In the 2001 survey, five percent of expats were from Asia, a number that has grown to 13 percent in the 2013 survey. In 2001, 63
percent of expats were from North America, down to 49 percent in 2013. Other major trends in expat assignments include the shift
from Europe, where 43 percent of expats surveyed were assigned in 2001 versus 22 percent in 2013, and in Middle East/North
Africa/Greater Arabia, where six percent were assigned in 2001 compared with 23 percent today.
Where expats are assigned makes a significant difference in their experiences and perceptions. Satisfaction with their employers’
efforts was lowest from expatriates on assignment in Sub-Saharan Africa, Middle East, and South America and highest in Australia
and Europe. Survey respondents noted the following priorities by their location:
-Middle East and Sub-Saharan Africa: Medical preparedness tops the list
-North and South America: Consultation regarding financial and tax consequences ranks much higher in importance in these regions
-Central America and Sub-Saharan Africa: Assistance with schools is more critical
-Asia and Middle East: Cross-cultural training ranks slightly higher
Experience versus expectations also brings variation:
-Central America and Middle East: These regions had the highest percentage of unmet expectations in relation to the quality of lifethis dissatisfaction was more than double other regions
-Australia and Europe: Highest satisfaction in quality of life category
-Middle East and Sub-Saharan Africa: Highest amount of dissatisfaction related to impact on the family
-North America: While overall 13 percent of respondents reported unmet expectations regarding their assignment benefits package,
nearly double (21 percent) reported dissatisfaction in the United States and Canada
“Survey results suggest many employers may be providing expatriates with services that adequately address the wider population,
but not those on assignment in lesser developed countries,” said Sheridan. “Enhanced understanding, awareness and flexibility are
necessary when considering the complexity of global assignments. Customization is key, as a one-size-fits-all approach to
developing packages for expatriates simply cannot provide a pathway to success in every geography.”
According to a release, industry surveys of employers indicate they believe the most difficult countries for expat assignments include
Brazil, Russia, India, China, and South Africa. Results from the Cigna-NFTC expatriate study confirm some difficulties in these
regions, but also point out other key areas:
-Middle East: High degree of dissatisfaction, higher importance ratings regarding several components (including services provided by
employers, such as cultural training and health benefits)
-Sub-Saharan Africa: In addition to South Africa, there are a number of other countries in the lower half of Africa where medical
preparedness is a great concern and the need for school assistance is more critical
-North America: The complexities of a number of issues (ease of finding a doctor, language issues, knowledge of the health care
system, understanding of financial and tax consequences) have led to much lower satisfaction scores than other regions-especially in
the United States-which remains the most frequent country for expatriate assignments.
“Greater recognition of the challenges of being on assignment in the United States is vital. Navigating a complex health system, as
well as developing an understanding of the financial and tax consequences of working in the U.S., all present considerable
challenges to U.S.-bound expats. My personal experience as an expat has further driven home the crucial need for better
preparation, guidance and support,” Kenton said.
The NFTC believes that these candid insights from corporate expats can prove valuable to all companies with globally mobile
employees. “An enhanced understanding of how expats feel about their experiences should cause companies to give greater
consideration to the many factors that influence the success of global assignments when designing packages,” Sheridan said.
When asked open-ended questions regarding their experiences, expats frequently cited human resource-related issues.
“Given the integral role human resource professionals play in designing programs for expatriates, an enhanced awareness of the
typical challenges and potential barriers to success for expatriates while they’re on assignment is critical. The survey results indicate
companies could benefit from elevating this group’s understanding of the unique needs and concerns of this population, either
through consultancy or hiring HR professionals with actual expatriate assignment experience,” Sheridan said.
Expatriates volunteered a list of specific concerns:
-Lack of understanding – expatriates state many HR personnel have likely never experienced living internationally; therefore, they
may have low awareness of the type of challenges expatriates face
-Relocation – expatriates cite a lack of clear information regarding this process
-Real estate market differences – HR representatives may not know about these differences
-Responsiveness – expatriates in various industries point out delays in response time
-Slower and or confusing processes, such as work permits
-Mobility and Relocation Policy limitations
-Cost of travel
“Like most studies comparing and contrasting viewpoints of employers and their employees, there exists a gap that, if understood
and addressed, can guide employers to make impactful decisions to better design and communicate assignment packages that more
adeptly address the needs of their employees abroad and increase their satisfaction,” Kenton said.
Similar to the 2001 study, the “Expatriate Trends Study 2013” was conducted though a web survey instrument. No self-identifying
information was captured, keeping all individual responses anonymous and confidential. This chosen method of anonymity
encourages more candid feedback from respondents. Data Collection occurred by The Marketing Audit over eight weeks from August
2 to September 30, with a sample sizes of 1,511 in 140 countries and a confidence rate of 95 percent, with margin of error at +/- 2.3
percent. Respondents were recruited through multiple channels, which included member companies of NFTC and their expatriate
populations, clients of Cigna Global Health Benefits, and other channels.
The inaugural study, which took place in 2001, explored the views of both international employers and their expatriate employeesbefore, during, and after international assignments. Throughout this report, references to the overall findings from the 2001 study
explain how the climate for expats has evolved over the past decade. The 2001 study surveyed 143 human resources executives
(representing the employer perspective) and 453 expatriates on assignment in more than 70 countries around the world.
Cigna Corp. is a global health service company dedicated to helping people improve their health, well-being and sense of security.
More Information:
http://www.cigna.com
http://www.nftc.org
((Comments on this story may be sent to newsdesk@closeupmedia.com))
Copyright: COPYRIGHT 2013 Close-Up Media, Inc.
http://www.closeupmedia.com/
Source Citation (APA 7th Edition)
Cigna-NFTC Survey Indicates Expatriates Want More from Their Employers. (2013, December 5). Health & Beauty Close-Up.
https://link.gale.com/apps/doc/A351663217/GBIB?u=tihsho_b&sid=bookmark-GBIB&xid=5999ee9d
Gale Document Number: GALE|A351663217
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