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Mobile Executives in Demand |
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 (CNN) -- Instead of packing up and moving abroad for many years, global
executives are being given a swathe of much more flexible options to
work with as they ponder overseas assignments.
Short-term assignments, cross-border commuting, permanent transfers or localized jobs are all on the rise.
"Long term expatriation is giving way to new forms, in light of demands
for cost control, flexibility, and differing corporate objectives,"
Michael McCallum of Cendant Mobility told CNN.
"The change in transfer type is being driven by the demand for project
work, mergers and divestitures, start-up operations, and restructuring."
While in the past, executives were given lofty expat packages to work
and live overseas, a business downturn along with rising costs in a
changed security environment has changed all that.
What's more, work is becoming much more project based and employers are turning to local staff to save money.
Last year a poll showed that just under half of 187 human resource
officials at 175 multinational firms expected a fall in overseas
assignments lasting longer than a year.
The survey by Cendant Mobility also showed that 61 percent predicted a rise in briefer stays overseas.
"Moving people for smaller defined periods on specific contracts is
more popular," Chris Adams of Michael Page recruiters told CNN.
"Human resources are becoming a moveable commodity and its much easier now since global communications are so good."
Save money
The desire to save money is the major driver -- research shows that
sending an executive to work overseas costs three to five times the
base salary of a local employee.
And a survey carried out last year by PricewaterhouseCoopers (PWC) of
242 firms, showed 80 percent saw cutting costs as a key priority for
international assignments.
"Escalating cost pressures mean that organizations are having to
rethink traditional practices and encourage flexibility in their
employees," said Stephanie Phizackerley of PWC in a statement.
If companies hire local staff, they can get away from the hefty
expatriate package that includes allowances, trips home, school fees
and helping cover housing.
"There is now a cost control mentality in place that will continue to prevail," says Adams.
Leaner, smarter
While some executives have embraced the chance to work more flexibly
overseas, others have found the new global mobility hard to deal with,
especially if they are not being compensated for it.
Half of the respondents in Cendant Mobility's study said family or
partner issues was the number one obstacle for them, and in the Asia
Pacific region a third of respondents were concerned about regional
safety.
Many executives have wanted to stay at home given recent events, such
as the outbreak of severe acute respiratory syndrome, terror attacks,
more executive kidnappings in South America and tighter travel budgets.
And in the United States, companies have a tougher time persuading
managers to accept assignments overseas as lucrative offers fall by the
wayside.
"Generally expatriate packages these days do not have all the bells and
whistles on they used to and they don't have so many perks," says Adams.
European business travelers have more options as cheaper air
connections allow executives to live at home and travel for their trips.
"There is an increase in international commuting, mostly in Europe, due
to the unification of Europe and the advent of the euro," McCallum told
CNN.
 Nick Easen for CNN
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