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Firms opt for short-term international assignments

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A new survey of international business assignments has found that nearly 4 in 10 multinational companies have increased their use of short-term business assignments.

The study, conducted by Mercer Human Resource Consulting of 35,000 employees in over 220 multinational companies, found that employers are increasingly opting for short-term placements, which are less costly than long-term assignments and offer more flexibility.

"Long-term assignments are not only costly, they can be difficult to arrange and often raise family issues for the expatriate," said Anne Rossier-Renaud, Senior Researcher at Mercer. "Adjusting to a new location and culture can be a real challenge for expatriate families. Short-term placements are more project-orientated, and tend to offer greater flexibility."

Housing and living allowances
The survey also found that almost half of the participants provide expatriates with free housing and just over a third of companies help employees to sell their house in the home country.

For employees on short-term assignments, more than 6 in 10 companies provide an allowance to cover daily expenses. Restaurant meals, public transport, phone calls and laundry are covered by this allowance.

Expatriate premiums
Mobility and hardship premiums continue to play an important role in encouraging employees to go on assignment. The majority of survey participants (78%) said that, at present, they do not intend to change mobility premium levels, though over a fifth said they had already decreased mobility premiums to and from Europe and North America in the past three years.

According to the survey, 11% of participants, expect hardship premiums to increase for assignments in the Middle East. This finding reflects the growing concern about security in the area. Conversely, 24% expect a decrease for placements in China and 13% for assignments in Eastern Europe.

Family support and home leave
Under half of the participants include spouse support in their international assignments policy, whilst nearly a quarter handle spouse issues on a case-by-case basis. Almost 4 in 10 companies consider career counselling an important part of their spouse support. Additionally, more than 7 in 10 believe language training is essential.

Three-quarters of participants provide home leave at least once a year. For short-term assignments, 60% pay for at least three trips a year.

Almost 6 in 10 companies provide additional return trips for employees with children in the home country, while almost a third pay for children to attend boarding school in the home country.

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