November 19, 2008

International labour mobility key to weathering current economic storm

VINCE VERSACE

staff writer

International mobility will play a growing role for construction and engineering companies in markets taking a hit from slower economic conditions, states a PricewaterhouseCoopers’ (PwC) report.

“International mobility is very important to the success of construction companies, both today and in the future,” said Michael Clifford, leader of the PwC Canada Engineering and Construction practice. “But moving just one employee from one location to another can be a time-consuming, costly and potentially risky business.”

PwC surveyed 24 companies in 11 countries about talent management, cost effectiveness, and the benefits and concerns about stretching their business footprints across the globe.

“There is seldom a sufficient level of experience or capability within companies to identify, let alone deal with the breadth and complexity of issues that arise,” added Clifford in a statement.

Eighty per cent of those surveyed rated international mobility as important to them now, increasing to 95 per cent in the future.

“Robust economies, substantial oil revenues and major deficits in the existing infrastructure, spell opportunity,” states the report.

The survey found that most companies are not prepared for delivering and maintaining workforce continuity and growth and preventing employees from leaving permanently.

Thirty-two per cent of companies surveyed said they thought that an international assignment significantly increases the chances of an individual leaving the company.

“Companies will need to increase their agility in order to staff key projects appropriately,” said Clifford.

“They will also need to ensure that out of sight does not mean out of mind when it comes to top talent. The task of managing an expanding global mobile workforce will not be an easy one, as many companies have already found.”

The survey also identified the following international mobility challenges facing companies:

•Creating and implementing an effective overseas assignment management policy;

•Securing appropriate support in the host country for the assigned worker and their family;

•Coping with immigration, tax and social security compliance issues and local employment regulations in the assigned country;

•Motivating and retaining employees who are assigned overseas;

•Ensuring that company talent development does not stop when workers are sent abroad; and

•Managing international assignment costs.

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