Ori

1

Relocation 2012:

Trends in a World of

Economic Downturn

Israel Fruman, Sep 20128 Hamelacha St. Netanya 42505 Israel. Tel: 972.9.865.8616 Fax: 972.9.865.8619 www.oriil.com

Global HR & Relocation Solutions

2

Definitions

Relocation: be established in a

new residence of place of

business

Expatriate: an employee on a

work assignment outside of his

home country for a definite

period of time.

3

Reasons for Relocation

0%

5%

10%

15%

20%

25%

30%

35%

40%

Tech Transfer

Fill Skills Gap

New

Endeavors

Bus Relations

Global C

adre

4

General Trends

Increased global assignments

Increased concern to cost

Increased resistance to mobility

5

Trends: 2010 - 2012 (Brookfield, ORI)

0%

10%

20%

30%

40%

50%

60%

70%

Increased Same Decreased

2010

2011

2012 est

6

Cost of Relocation

Expatriates/Local Ratio (HRBS)

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

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7

Cost of Relocation

“Hidden Costs”Organizational Overhead: 1 Expatriate = 10 Employees

Ramp-up Time (two directions!)

Turnover: 8% terminate during relocation –

but this is just the “peak of an Iceberg”:

�23% Terminate during 1st year of return

�20% Terminate during the 2nd year of return

Reasons:

�“Mental Turnover”

�More marketable assets

�Pay cut

�Perceived Lack of opportunity

8

Alternative Assignments

Employee Initiated Transfer

Short-Term Assignment

Commuters

One-Way/Permanent Move

Localization

Regional Relocation

9

Alternative Assignments (cont)

Repatriation

Rotation

Graduates Relocation

Sequential Assignments

Virtual Assignments

10

Cost Reduction

Policy/Compensation offered

Candidates selection:�Family status

�Age

�Lower cost economies

�Job seniority

Scrutiny of policy exceptions

Local hiring

11

Change in

Demographics (Brookfield, ORI)

0%

5%

10%

15%

20%

25%

30%

Regional 25-35 yrs N/Accom Singles

2011

2000-11

12

Resistance to Relocation

Dual Career

Career Insecurity/Concerns

Children

Parents

Life Style and Culture

Lack of Financial Reward

13

Spouse Employment (Brookfield)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Pre-Assignment During Assignmant

2011

2000-11