re:locate magazine, winter 2012/13

Re:locate F O R H R , G L O B A L M A N A G E R S & R E L O C A T I O N P R O F E S S I O N A L S

Winter 2012/13

Asia PacificFlying high

International pensionsWhat you need to know

SustainabilityMakes business sense

TalentStrategic global mobility

www.relocatemagazine.com £8

This issue is sponsored by

CONTENTSHot Topic

Asia Pacific

International Pensions

Sustainability

3CONTENTS :WINTER 2012/13 Re:locate

4 Re:editor’s letter Fiona Murchie looks at

what’s in store this issue.6 Re:news & views Key industry happenings,

personalities and comment.8 Re:hot topic Balancing support with cost

control, plus the growth of flexpatriate assignments.

14 Re:international Expert advice on short-term

assignment policy.16 Re:Asia Pacific Key trends influencing relocation,

plus relocation hotspots and the expanding education sector.

26 Re:international banking Financial planning is key to a

successful international assignment.28 Re:partner employment How work-permit restrictions affect

dual-career couples – and businesses.28* Re:employee support Our brand-new pullout

Relocation Planner for Families.32 Re:international pensions Issues for global companies managing

international assignees.36 Re:HR conference An inspiring message of

empowerment and engagement.38 Re:awards Your chance to enter the

Re:locate Awards 2012/13.40 Re:sustainability Why it makes sound

business sense.42 Re:international employment Global jobs-market trends and their

implications for relocating partners.44 Re:talent strategy The secret to becoming a strategic

global-mobility leader.46 Re:UK hotspots The relocation scene in North of

England rivals Manchester and Leeds48 Re:education Sports provision in UK and

international schools..*Cen

tre

page

s

TheTeamManaging Editor: Fiona [email protected]

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Sub Editor: Louise Whitson

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© 2012. Re:locate is published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof)may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents orany opinions expressed herein. ISSN 1743-9566.

Coming in the SPRING 2013 issue of Re:locate magazine• MANAGING GLOBAL PEOPLE Strategies for growth

• GEN X AND Y Meaningful support

• COUNTRY PROFILE Focus on Russia and Eastern Europe

4 WINTER 2012/13Re:locate

The race is on for global growth … With challenge comes opportunity. Don’t miss out! ”

“

The big theme emerging from this year’s autumn conferences of Worldwide ERC, the CIPD and the CBI was that the world is on the move as companies pursue new opportunities in an increasing range of international destinations. As Prime Minister David Cameron confirmed at the CBI Conference, the race is on for global growth.

For global-mobility practitioners, whether on the HR or the industry side, perhaps the greatest challenge is to keep up with growth across both established and emerging markets while maintaining the quality of support provided to assignees in an era of cost cutting.

But with challenge comes opportunity. HR must seize the chance to play a more strategic part in leadership and talent management, as the CIPD is emphasising. CEOs are interested not in global mobility, but in global growth, so HR §needs to demonstrate that the two go hand in hand if it is to take its seat at the top table. See page 44 for a great example of strategic HR at its best.

To reflect these trends and continue to support its readers, Re:locate will be expanding its coverage of international business and management issues, both in the magazine and on the website.

In this issue, as the focus of global business shifts from west to east, we analyse the key trends that are influencing relocation in, and to, Asia Pacific, and review current relocation hotspots there. Education and supporting families are always high on our readers’ agenda, so we have produced, with this issue, a special pullout Relocation Planner for Families, designed to help HR and relocation professionals advise parents on schooling and manage the relocation cycle for families on the move.

And there are more treats in store. Whether you’re moving people within the UK or internationally, the new edition of our Pocket Guide to Relocation, also free with this issue, contains the key information you need to operate successfully.

If you haven’t already started on your entry for the Re:locate Awards 2012/13, now is the perfect time. Turn to p46 for entry details – and inspiration.

Fiona MurchieManaging Editor

Re:locate Awards 2012/13

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GLOBAL GROWTH: the race is onGlobal business is at the heart of the growth agenda, Prime Minister David Cameron affirmed at November’s CBI Conference. “Britain is selling to the world again. That is a vital part of my job – and what this economy needs.”

This will be very encouraging for UK businesses intent on getting a bigger slice of the international action, and for those HR directors, of companies large and small, who see a strategic place at the table for those managing global teams and the complexities of global mobility.

Mr Cameron made reference to the trade missions in which he had participated around the world, to

Africa, China, India, Russia, Mexico and Brazil, with plans for more trips in 2013. “Because, frankly, we need this buccaneering, deal-making, hungry spirit

now, more than ever. Britain is in a global race to succeed today, and you don’t need me to tell you that,” he said.

It was good to see the energy focused on global business needs, and the understanding that we can’t hang around or we risk competitors taking our place.

It seems as if the penny has finally dropped across the nation just how important international markets are to growth. The UK is still fired up by Olympics success, and long may this enthusiasm continue.

Re:locate will continue to bring you the key information and advice you need to stay on top of relocation challenges, both in the magazine and on www.relocatemagazine.com

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6 : NEWS & VIEWSRe:locate WINTER 2012/13

BEST PRACTICE shared at property conference Representatives of some of Britain’s leading estate agencies came together at the annual conference of the Cartus Relocation Agent Network (formerly Home Sale Network) on 16 November, to share best practice and initiatives that could add value to the relocation process.

Cartus’s Richard Tucker explained that the network had been rebranded in order to make it easier for members to explain to prospective clients the comprehensive service they offered. Said Mr Tucker, “Network members help people to move – they don’t just sell houses.”

Increasing focus on service must be good news for those who are relocating, and for those managing their moves.

The conference featured an impressive lineup of keynote speakers, including Richard Reed, co-founder of Innocent, and Patrick Foley, chief economist at Lloyds Banking Group.

At a black-tie network awards dinner, East Anglian firm Thomas Morris took the top award, Agent of the Year (formerly Cartus Masters Cup), for the second year running. The awards were endorsed by Re:locate.

Our special focus on property will continue throughout 2013, via the magazine and website.

SPRING 2013 mobility dates for your diaryThis spring, Re:locate will be media partner for three prestigious international mobility events, the Worldwide ERC Global

Workforce EMEA Summit (London, 12 and 13 February), the Mondissimo International Mobility Conference (Paris, 19 and 20 March), and the Worldwide ERC Global Workforce APAC Summit (Shanghai, 19 and 20 March). Catch up with us there!

Fishing in the GLOBAL TALENT POOLAs HR professionals adapt to meet the ever-changing needs of global business, a new report from The Conference Board and McKinsey, The State of Human Capital, suggests useful strategies to manage the global talent pool for greater impact.

“Human-capital departments are struggling to deal with a global talent shortage, adapt to a changing workforce, and develop new, flexible working models to meet the needs of tomorrow’s workers,” said Bryan Hancock, of McKinsey’s Atlanta office.

“Human-capital departments and executives are also facing a real-struggle to make a strategic difference in their organisations. Only by partnering with other parts of the organisation will they be able to address critical business issues with long-term, systemic impact on human capital.”

For practical steps global mobility can take to create more value, see p52.

CHINA: 50 cities to watchA new report by global property firm Jones Lang LaSalle, China50: Fifty Real Estate Markets that Matter, highlights the opportunities for corporate property occupiers, real-estate investors, developers, retailers and hotel operators in 50 secondary and tertiary cities across mainland China.

Chengdu emerges as China’s premier real-estate market, while Chongqing, Shenyang and Tianjin have built up the strongest momentum. To keep pace with economic growth, more than 80 million square metres of retail and nearly 30 million square metres of grade A offices will be built in key cities over the remainder of the decade, bringing much-needed stock to the market.

Jones Lang LaSalle predicts that retail will provide the greatest real-estate opportunity, with significant opportunities also in the logistics sector.

KK Fung, managing director of Jones Lang LaSalle Greater China, said, “The new China50 are being transformed at an unprecedented rate by the scale of building, and by the progress of economic development. They are the cities that we believe will be hitting the headlines over the next decade and that will provide opportunities beyond the familiar Tier 1 cities.”

Our Asia Pacific coverage starts on p16.

Re:locate 7NEWS & VIEWS :WINTER 2012/13

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Cost control versus support

In the current economic squeeze, we are all only too familiar with tight budgets and the need to do more with less.

Budgets are being cut continually, and cost reduction has become the mantra of business activities.

In today’s cost-conscious world, and with the economic slowdown, it might be argued that employees are lucky to have a job. Why should money be spent on employee support services? After all, this adds to expenditure and reduces cost efficiency. Potentially, this can lead to firms being uncompetitive, as they are unable to match or undercut the prices of their competitors.

Of course, this viewpoint is simplistic. Your competition may be able to reduce costs and prices to consumers not through clandestine (or even savage) cuts to employee support; in fact, investment may well be being made in this area, with the improved productivity flowing from support services translating into greater efficiencies that can be passed on to customers. Keeping pace with the competition involves benchmarking to establish the appropriate course of action.

So, rather than struggle with tight budgets, the focus needs to shift to setting SMART budgets:

•Specific – look for sensible savings •Measure – find the maximum outcome•Achievable – ensure the actions you propose are affordable•Realistic – think of employee reactions•Time-scaled – think long term, not just short term

Remember that cutting costs can result in unintended outcomes; if the relocation policy elements do not attract, motivate and retain staff, but instead result in disengaged employees and unhappy families, the money spent is simply money wasted. Employee productivity and commitment will fall, and this is unlikely to result in your organisation shaping up well against the competition.

While it is important to ensure that the maximum benefit can be achieved from any expenditure made, when too much trimming negates the value of the benefit, all is lost. For example, if what appear to be achievable policy-element reductions result in loss of staff mobility, is that really an affordable and acceptable outcome? Most likely not.

So think of the reactions of employees. For instance, trimming back payments of school fees in international relocation policy appears, on the surface, to be an easy-to-

implement cost saving. Yet it can amount to ‘the straw that broke the camel’s back’ and can lead to assignment refusals. Certain benefits may not be the most expensive elements in the relocation package, but their value to employees and their families far exceeds the financial outlay.

Employee support: the smart optionIt is also important to think ahead. What will happen when the economy enters recovery? Engaged employees are likely to remain with their employers; the disengaged will not – resulting in labour turnover costs most likely far exceeding savings made previously.

The arguments against providing employee and family support for relocating individuals and their families – in both domestic and international contexts – may go beyond money. Support provision can be time-consuming (but then, time is money!). In-house staff may be too stretched to deal with relocation support – the ‘soft’ aspects, such as dual careers, children’s concerns, finding homes and schools, and so on.

The view may be taken that employees who are being relocated are adults, not children; they can take care of these factors themselves. But these issues are not ‘soft’ to employees – rather, they are critical to mobility. They are also difficult to handle while being expected to deliver 100 per cent in the workplace, especially if the relocation involves moving abroad and dealing with the associated unfamiliarity of foreign labour, and housing and education markets.

Outsourcing does provide a solution for time-pressed company personnel – but this costs money, and the agency must be briefed effectively (requiring time). Yet if a cost-benefit analysis is conducted, time and money spent on employee support (either in-house or via outsourcing) are critical to raising productivity and ensuring that employees and their families give their best to the organisation.

Little things go a long way, and practical employee support is more valuable than throwing money at a problem. Support provision indicates that the organisation cares about its people; this leads to improved morale, productivity, engagement and commitment. And this pays off – in both the short and long term. So think ‘support’, and outsmart your competition.

Re:locate

Is money too tight to mention? Are relocation support services suffering? The time has come to rethink the emphasis on cost control at the expense of employee support. To ensure efficiency and effectiveness, the right balance is needed. Sue Shortland explains.

: HOT TOPIC

Striking the right balance

See the International Assignments section of www.relocatemagazine.com for updates and practical advice.

WINTER 2012/13

10 Re:locate : HOT TOPIC

Flexpatriate assignments: trends and policy implications

The days of a standard expatriate assignment, three years or longer, are long gone, and organisations are

readily adopting alternative, flexible assignments. Known as flexpatriation, these assignment types include commuter and rotational mobility patterns, and extended business travel. Alongside, and within, these are international business trips and virtual international working. Although short-term assignments have been used by organisations for many years, these, too, can provide a flexpatriate alternative to long-term, traditional expatriation.

Distinguishing between business travel, commuting and short-term mobility can be problematic. Defining short-term assignments has always been fraught with difficulty. Generally, short-term assignments are considered to be over three months but under one year long, with business-travel policies being used for mobility requiring less than three months in the host country, and a long-term assignment policy used for assignments of more than a year.

However, various other permutations are used – for

instance, a one- or two-month minimum threshold can be applied to short-term assignments, which may even extend to 18 months. The majority of employers, however, regard the cut-off point as one year for short-term assignments, and set policy around this.

Extended business travel differs from business trips in that it usually involves assignees being based in an international location for around one to two weeks at a time to work on business projects, and, as such, is differentiated from a fly in/fly out business traveller attending meetings and conferences. Business-travel policies, however, address periods of international working below the threshold for short-term-assignment policy.

Commuter assignments may be used to service short-term and long-term mobility needs. Commuter assignees usually remain on home-country payroll and spend defined periods (weeks or months) abroad, commuting home on a regular basis. Under policy, commuters may be treated as business travellers, but it is becoming increasingly the norm for

The increasing pace of globalisation has resulted in the business need for a wide variety of assignment types to meet organisational goals, including commuter, rotation and extended business travel. Sue Shortland outlines the nature of these flexible assignment types, recent policy developments, and current issues and problems in managing them.

WINTER 2012/13

organisations to set up separate commuter-assignment policies addressing this type of assignment specifically and detailing appropriate treatment of compensation and benefits.

However, given the high levels of business travel that are part and parcel of an international assignment, expatriates on long-term (and/or short-term) assignment policies can find themselves playing the role of business travellers and/or commuter assignees, blurring policy boundaries.

Rotational assignees have been a feature of the oil and gas and mineral-extraction industries for many years, but are beginning to gain wider prominence in other sectors. This type of assignment is usually used in remote or hostile locations, and involves assignees spending a defined period in the host location (for example, four or six weeks, usually working seven days a week), followed by a period off in the home country (four weeks or two weeks).

Weichert’s 2012 Alternative International Assignments Survey notes that 61 per cent of its respondents either already use alternative assignments such as commuter, rotational and extended business travel, or are considering implementing them; 66 per cent believe their use of flexible assignments will increase in the coming year. The report predicts that alternative assignments will comprise 20–40 per cent of all assignments in 2013.

Manufacturing, construction, engineering, energy and technology are the most progressive sectors in this respect. The primary driver for using flexible assignments is to respond to business needs (80 per cent report this), although just over half of the survey’s respondents (55 per cent) use them for projects, and 48 per cent to support specific company objectives. Cost control is cited by 47 per cent.

Policy trends: commuters, rotational, and extended business travelCommuter assignments are used by 58 per cent of Weichert’s respondents; 61 per cent of those with commuter programmes have a formal policy, implemented globally.

Typically, commuter policies are designed to extend beyond 12 months. Travel costs are usually reimbursed (72 per cent), although 12 per cent provide a per diem, and 3 per cent a lump sum. Housing costs and co-ordination are met by 66 per cent; only 6 per cent do not meet housing costs in the host location. Short-term leased apartments are favoured. Meal costs are covered most usually via a per diem.

Weichert records the following benefits as the most frequently provided to commuters: immigration (97 per cent); tax consultation/return preparation (94 per cent); tax equalisation (75 per cent); host transportation allowance (61 per cent); temporary living in the host location (61 per cent); and extra baggage (50 per cent).

Rotational assignments are used by 42 per cent of Weichert’s respondents; 71 per cent of these have developed a formal policy, implemented globally. Travel costs are typically reimbursed (67 per cent), although 10 per cent give a lump sum and 5 per cent provide a per diem. Housing costs and co-ordination are met by 74 per cent; 11 per cent meet housing costs in the host location but do not co-ordinate provision. Short-term leased apartments are used, but, most usually, accommodation is in camps and compounds, reflecting the remote and harsh locations where such assignment types are based. Meal costs are covered most usually via a per diem.

Weichert records the following benefits as the most frequently provided to rotators: immigration (95 per cent);

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tax consultation/return preparation (90 per cent); host transportation allowance (80 per cent); home/host travel (70 per cent); tax equalisation (70 per cent); temporary living in the host location (65 per cent); extra baggage (65 per cent); housing allowance (50 per cent); and a hardship/location premium (50 per cent).

Extended business travel is used by 72 per cent of Weichert’s respondents, although only 32 per cent have a formal policy. Travel costs are typically reimbursed (83 per cent), though 8 per cent provide a per diem to meet these. Housing costs and co-ordination are met by 64 per cent; 17 per cent require employees to secure their own housing, but do meet the costs. Hotels/motels with cooking facilities are encouraged. Any other additional costs are usually directly reimbursed, but meal costs are often covered by a per diem.

Weichert records the following benefits as the most frequently provided to extended business travellers: immigration (97 per cent); home/host travel (69 per cent); temporary living (66 per cent); and tax consultation/return preparation (51 per cent).

Issues and problemsWhat constitutes a business trip is, in effect, governed by visa rules and compliance issues depending upon jurisdiction. Employers must ensure that assignees have the correct entry paperwork, and, as such, it is important to ensure that compliance is split from policy. In essence, this means that assignees may receive compensation and benefits under a short-term or commuter-assignment policy, but be treated as a business traveller for visa purposes, or receive business-travel expenses under organisational policy, but be required to hold a full work authorisation visa (particularly in the case of extended business travel).

All assignees – whether they are deemed commuter assignees, short-term assignees or business travellers – must be visa compliant.

Tracking mobile assignees is notoriously difficult. Suggested solutions include linking requirements for immigration and tax compliance to travel booking paid for by the company (nonetheless, flight changes and cancellations create ambiguous reports), requiring assignees to complete travel-authorisation forms, and using local support staff to track assignee movements via accommodation/travel bookings. Tracking, however, remains onerous and raises the spectre of stealth expatriation and consequent tax and immigration non-compliance and penalties. It remains a thorn in the side of relocation professionals.

Although short-term assignments (particularly those of between three and six months’ duration) have traditionally been unaccompanied, delegates at the 2012 Expatriate Management and Global Mobility Forum raised concerns that single status was increasingly presenting a barrier to mobility. This potentially affects commuter and rotational assignees and extended business travellers as well.

While it is clearly disruptive to families to move for short periods (and costly for employers to support this financially), it was agreed by delegates that assignment lengths should not be extended simply so that individuals could gain accompanied status. The business need must drive the assignment type used.

However, a flexible policy approach can be applied, balancing the costs of trips home to visit family members while on short-term assignments against the cost of family

relocation or trips out to the assignment location. Assignees might also be allowed to take their families if they contributed to the cost. In essence, if there are numerous requests for accompanied status, then a short-term unaccompanied policy is not fit for purpose. It is notable that, in Weichert’s survey, 94 per cent of employers do not allow commuters to be accompanied (suggesting that 6 per cent do allow some flexibility on this issue).

The complexities of managing alternative assignment types, and the range of deployment patterns, are likely to grow. Blurring of assignment types is inevitable, as business objectives are dynamic and organisations cannot necessarily pigeonhole when, where, and for how long assignees will be required in any particular location.

Flexibility of deployment is critical to meeting business needs and achieving success. While policy provision sets boundaries around defining what comprises a short-term, long-term, commuter or rotational assignment, and what is extended versus other forms of business travel, assignees will be required to come and go in line with work requirements, not relocation-policy documents.

The future lies not only in flexpatriate mobility but also in flexible mobility policies that ensure legal compliance at their heart, while delivering appropriate rewards and benefits to mobilise assignees to deliver business goals in any way deemed best suited to achieving this end.


WINTER 2012/13

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14 Re:locate : INTERNATIONAL

Short-term assignment policy guidance

Short-term assignments are high on the agenda for most companies, not just because of cost savings, but because of

the flexibility they offer in all sorts of situations, from project work to talent development and combating skills shortages.

The imaginative workshop treatment of the topic at October 2012’s Worldwide ERC Symposium in Washington DC, with an assignment letter forming the basis of discussion, brought out some interesting issues. The panel, which consisted of US-based Heather Henry, regional manager of Marsh & McLennan Companies, Elizabeth Schramm, manager, relocation services, at Sony Electronics, and Micheal Westphall, of Abbott Laboratories, highlighted a lot of parity of treatment, but also some surprising differences in approach.

Skilful moderation of the discussion, and interaction with the audience, by Julian Yates, vice-president, global support, at SIRVA Relocation, brought out some useful knowledge-sharing for all levels of experience, starting with a basic definition of a short-term assignment, typically:

•From three to 12 months•Single status• Purpose is usually a short-term project

or developmental position•Assignee retains property in home location

Cultural and language supportWhat jumped out for me was the audience’s insistence on the value of cross-cultural support for short-term assignees – something which the panel members were not all offering as a norm, with support varying from nothing to a few hours’ access to an online cultural-training tool, or a day of support.

After debate with the audience, culture was firmly on the agenda for review by panel members and delegates alike. There is a strong case to be made for cultural awareness training to be even more important in the short-term circumstance, when the employee is under pressure to perform from day one.

Getting the nuances of business and local culture wrong can lead to costly mistakes for the business, not to mention damage to the self-esteem of the employee, and reluctance to take up future assignments. With so many cultural-training options available nowadays, as was testified by the number of culture-related exhibitors at the symposium, it makes sense to review the range of tools and providers.

As one delegate reflected, “How bad can it be? Well, it could be very bad indeed.” Language training falls into a similar category, and can be difficult to address if the talent pool lacks language skills. Something to work on, perhaps by addressing the issue with your recruitment/resourcing department.

See the article on cultural competence by Mary Beauregard, of Global LT, in our Autumn 2012 issue, and the Languages and Cross Culture sections of the Re:locate website.

ChecklistThe session provided an extremely useful checklist of things to consider when sending an employee of whatever level on a short-term assignment. Even the most experienced would benefit from regular reviews of their policy in these fast-moving times.

With HR departments continually under pressure, and rapid turnover of staff, it is good to have some basic benchmarking to refer to.

You probably won’t be surprised to learn that a ‘pre-trip’, or an orientation visit, as it is also known, was not offered by panel members, but, as participants pointed out, companies sending assignees to difficult locations may be well advised to consider this option.

Air shipment of household goods varied from an allowance of 50 cubic feet to 250–500lbs, or excess baggage with a cap. But you won’t be surprised to learn that the inclusion of pets in a short-term assignment programme was a definite ‘no’. That is not to say that an employee couldn’t pay for five-star travel, and navigate quarantine and customs, etc, for their four-legged friends themselves!

With regard to repatriation, the panel members all covered household goods and travel, but some delegates from the audience were following the enlightened path of offering career support and mentoring to ensure a smooth return. As talent management becomes more closely aligned with global

Fiona Murchie reports from October’s Worldwide ERC Global Workforce Symposium in Washington on a global audience’s response to short-term assignment policy.

WINTER 2012/13

Re:locate 15INTERNATIONAL :

mobility, this approach will hopefully become more common, even for short-term assignments.

This is a topic we shall be pursuing in the pages of Re:locate magazine, and on www.relocatemagazine.com

Short-term-assignment letterWith all short-term assignments, a well-written letter is advised, covering:

•Salary•Assignment location•Allowances and benefits•Approximate start and end dates•Job title/job description•Compensation areas covered, including:

u Salary – home unless required by host locationu Bonuses, incentives, stock, retirement – homeu Medical benefits – host (US exception)u Social security – homeu Taxability – equalised to home

Family•Usually single status•If family accompanies, costs accelerate, owing to housing and schooling•Exceptions sometimes granted

Panel members emphasised that it was a good idea to make the time to walk the assignee through the policy at an assignment briefing, and, as always, good communication is key to success.

Immigration and visa adviceWith established companies, immigration and travel documents are usually covered by the company, but those new to international assignments may push this over to the employee.

Given the compliance risks involved, this is not recommended best practice, and the safest route is to find your organisation good immigration and visa advice as soon as possible, even where only business travel is involved.

Immigration and travel-document issues to consider:

•Work permit and visa•Company usually responsible for obtaining• Employee responsible for providing information and

documentation•Required by virtually all countries•Medical examination as required


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WINTER 2012/13

Despite appearances of business as usual, times are changing in China. And as global economic growth continues to flow east, with more economies moving towards emerged status, there’s growing recognition that China isn’t the only game in town, writes Ruth Holmes.

16 : ASIA PACIFICRe:locate

In November, the Chinese Communist Party held its 18th National Congress, a series of meetings that prepared

the way for the country’s new ruling elite. The congress announced Xi Jinping as Secretary General of the Communist Party, with his appointment to the position of President set to take place in March next year, when China’s parliament, the National People’s Congress, appoints him. Yet, while the names and personalities have changed, the nature of the Chinese political economy means that continuity is practically guaranteed. However, the next five years will be by no means without their challenges.

For the last 30 years, China’s average annual GDP growth has been in double digits, at just over 10 per cent. This prodigious development has catapulted China to its ranking as the world’s second-largest economy. However, this rate of GDP increase has been slowing in recent years, mirroring the downside of the economic cycle globally.

Declining Western demand for manufactured goods, coupled with relatively modest domestic demand and tight fiscal rules to rein in inflation, has led the World Bank to downgrade China’s 2012 growth forecast from 8.2 per cent

to 7.7 per cent. In terms of the scale of the slowdown, in Q2 2012, for example, GDP was running almost a full two percentage points below Q2 2011’s figure of 9.5 per cent growth, at 7.6 per cent – its slowest pace in three years.

While this deceleration reflects the reality in Western economies and the interconnected nature of the globalised economy, China’s economy is still very much on a positive trajectory. As the global balance of power shifts its axis south east towards Asia Pacific’s regional powerhouses, China remains set to overtake the US and become the world’s largest economy by 2030. The People’s Republic also very much retains its popularity as one of the top worldwide destinations for mobile workers, according to benchmark reports like Brookfield’s 2012 Global Relocation Trends Survey.

Housing headachesChina’s attractiveness to foreign investors, as both a new market to service and a location for low-cost manufacturing, has fuelled demand for expat-standard amenities. With numbers of assignees continuing to grow, this increased demand is feeding through to higher overheads for mobile

Asia Pacific: a new dawn?

WINTER 2012/13

workers as their cost of living increases. This is especially the case in China’s key and established Tier 1 destinations, like Beijing, Shanghai and Guangzhou.

This comes at a time when expat packages are becoming less generous, with mobile workers based in China finding themselves increasingly squeezed, and employers in China having to pick up higher wage costs through the requirement brought in last year that expatriates must now participate in, and contribute to, China’s social-security system.

Shelley Warner, China manager of Beijing, Shanghai and Chongqing-based Asia Pacific Access, the partner company in China of the Reloc8 Asia Pacific group, comments, “Apartment rental prices here in the key cities like Beijing, Shanghai and Guangzhou have gone sky high.” Government policies geared to deflating a property bubble have limited investment in new residential property, combining to create a lack of suitable rental property and significantly increasing rents.

The effects of rising costs are also evident in HSBC’s annual Expat Explorer survey. China, perhaps surprisingly given its wider reputation as a low-cost centre, features only in seventh spot in the Expat Explorer economics league table, which ranks countries based on a number of factors, such as earning levels, disposable incomes, and ability to accumulate luxuries.

In the Special Administrative Region of Hong Kong, which is still very separate from China, there are fears that rising costs could damage Hong Kong’s appeal as a regional base, with both accommodation and rental costs being very high – especially for those on upper pay scales. A report by Swiss wealth-management firm Julius Baer has compared

key Asian cities on a basket of luxury goods consumed by wealthy expatriates. The report’s most startling comparison was that a 4,000-square-foot apartment in a prime location in Hong Kong would cost $40.4 million, against $13 million in Singapore, its main competitor for multinationals’ regional headquarters in Asia.

Tier 3 – and beyondIt’s not just rents that are a challenge for mobile workers assigned to China. As foreign investment flows further inland and away from the traditional expat destinations, primarily the east coast’s Tier 1 and Tier 2 cities, “Western-style housing stock, international schools and medical care, together with global transport links and extensive expat-focused social networks, become less available,” says Shelley Warner, of Asia Pacific Access. The focus here becomes less about stretching the budget, and more about adjustment within what is potentially a hardship destination within the confines of a company’s single global-mobility policy.

“To overcome the challenges in third- and fourth-tier cities around lack of facilities and Western-style healthcare, English-language schools and suitable accommodation, companies, which are mostly in the manufacturing sectors, are offering mobile workers in these more-remote locations higher hardship allowances, more R&R, and access to medical care in Tier 1 cities,” explains Ms Warner.

“You’ll also find that, because of the lack of international schools where lessons are taught in English, employers are not sending so many workers with families to these destinations. It is possible to split locations and commute from a Tier 1 base, but, for families, this is far from an ideal

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solution. Housing and services should catch up in a few years, or maybe a decade, but, for the time being, expats in these cities will need to come to terms with smaller accommodation sizes with limited kitchen space and often no separate laundry facilities or an oven, just two or three gas rings.”

These additional, location-specific pay and benefits reflect the reality of working in relatively remote cities, both culturally and in terms of expected facilities. This might account for at least some of the respondents’ experiences in the 2012 Towers Watson/Worldwide ERC Global Talent Mobility Study. This recognises that 54 per cent of its more than 100 respondents (together employing almost 1.8 million employees globally) have revised, or made additions to, their mobility policy in the last two years.

Culture and mindsetThe key challenge for employers in these cases, explains Shelley Warner, is to ensure that they are sending the right person and that assignees have a flexible outlook and receive cross-cultural training on location, rather than in their home country. She says, “I would really encourage people to have the attitude ‘well, OK, this isn’t necessarily going to be comfortable or cushy, but what can I do to use the time to develop myself and learn about Chinese culture and what the country has to offer in terms of its landscapes and history?’”

This advice to select candidates on the basis of personal behaviour (“flexible, driven, able to cope with pressure, and with the right mindset”) was also offered by Camilla Kopp and Catarina Enes, senior international HR specialists at Volvo Car Corporation, at the Worldwide ERC Global Workforce Summit, Talent Mobility in EMEA, earlier this year. At that time, Volvo had 108 expatriates on site in China, with 31 in process and across six destinations, including Daqing (Tier 3) and Zhangjiakou (Tier 4) in the north east of the country.

“People should be encouraged to engage, learn the language, and find ways of linking with where they are, and make Chinese friends, so they are part of the community, rather than disparate,” advises Shelley Warner. “Very little English will be spoken in daily life, so it really is important to make the effort, otherwise it can be very intimidating, and life will be very hard.”

The regional pictureThe heat from the Chinese dragon economy has ignited growth in the wider region. Indonesia and Vietnam are among those countries, like China and India, that are growing rapidly, attracting mobile talent and foreign investment in the process.

Indonesia, for example, is set to be in the top 20 economies in the next decade, according to Goldman Sachs. Its growth, like that of many of its neighbours, is being buoyed by the commodities boom and what is said to be one of the factors – consumer spending – that explains China’s underperformance compared with its potential. The port of Makassar is one of 12 or more Indonesian cities whose economic growth is outpacing that of the capital, Jakarta, which is also the spiritual and cultural heart of the nation.

With around 32 million people in Indonesia – which spans 3,000 miles east to west and consists of 6,000 islands – set to move from the country to the cities in the next 20 years, economic growth is being built on increased productivity and e-commerce, and supported by the Association of Southeast Asian Nations (ASEAN) Economic Community’s (AEC) goal of regional economic integration by 2015. The aim is to

deliver a single market of the 10 member states, to create a highly competitive economic region that is fully integrated into the global economy.

In line with these trends, HSBC’s Expat Explorer survey also notes that South East Asia has come to the fore as a leading destination for expat earning potential. ASEAN member Singapore this year tops the survey’s economics league table for earning levels, disposable income, and ability to accumulate luxuries. Three additional countries in the region, Thailand (3), Hong Kong (4) and Vietnam (10), also make the top 10.

Commenting on the findings, Dean Blackburn, head of HSBC Expat, says, “While South East Asia has historically been a popular choice for those looking for increased quality of life, we’re also seeing a steady increase in the levels of expat wealth heading to the region. These two factors combined indicate that the region is fast becoming an all-round top expat destination.”

So, while China undoubtedly remains the key destination in the region, it looks likely that it will be joined by a diversity of locations that will see the East continue to be the land of promise and opportunity for the global economy.

That’s why Re:locate will be attending March’s Worldwide ERC APAC Summit in Shanghai. Keep us informed of your views on trends and developments in Asia Pacific.

18 : ASIA PACIFICRe:locate WINTER 2012/13

For the latest Asia Pacific news, articles and practical advice, see the International Destinations section of www.relocatemagazine.com

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For many years an international pariah, thanks to its hardline military regime and poor record on human rights, Burma is fast becoming a global relocation hotspot, as Louise Whitson discovers, with insights from a pioneering new Santa Fe report.


Until recently, Burma (or Myanmar) seemed an unlikely focus for international investment. Despite being South

East Asia’s second-largest country and possessed of abundant natural resources, including oil, gas, timber, and gemstones, it is one of the world’s least-developed economies, following decades of unrest and economic mismanagement during the military rule that started in 1962.

Burma now has a nominally civilian government, after a general election in 2010. President Thein Sein, who took office in 2011, has already implemented reforms, notably relaxing censorship laws and releasing some political prisoners.

Since by-elections earlier this year, some observers are optimistic that Burma may be moving closer to full democracy. Others sound a note of caution, given the country’s record and the fact that, despite recent developments, its power structure has changed little, the military still wields great influence, and human-rights violations give continuing cause for concern.

Time will tell, but Burma is now taking its place on the world stage. David Cameron’s visit in April was the first by a British Prime Minister since Burma won independence from Britain in 1948. In June, at Mr Cameron’s invitation, pro-democracy leader Aung San Suu Kyi made her first visit

to the UK in 24 years, telling MPs and peers that she needed help to overhaul Burma’s education system and attract foreign investment compatible with democracy.

During the visit, Ms Suu Kyi returned to Oxford for the first time since her student days in the 1960s, and gave an exclusive interview to Oxford Today (www.oxfordtoday.ox.ac.uk).

Following President Thein Sein’s initial reforms, the EU, Australia and several other countries had already relaxed sanctions when, in July, President Obama announced that US companies would be permitted to “responsibly do business” in Burma. August saw the visit of a US trade delegation, and fast-food chains such as KFC and McDonalds were reported to be eager to operate there.

Following his re-election in November, Mr Obama hastened to make what was the first-ever visit to Burma by a serving US president. The nation, he said, had been on a “remarkable journey” of reform, but there was still further to go, at a time when the shadow of unrest and violence between Buddhists and Muslims hangs over the western state of Rakhine.

The pace of change seems unstoppable. Now, the International Monetary Fund (IMF) has described Burma as having the potential to be “the next economic frontier”. The

Burma: the next economic frontier?

WINTER 2012/13


new government, it says, has a historic opportunity to jump-start development and lift living standards. The IMF projects GDP growth of 5.5 per cent in 2011/12 and 6 per cent in 2012/13, driven by commodity exports and higher investment.

March of the multinationalsMultinational companies see enormous potential in Burma’s plentiful natural resources and low-cost economy. PepsiCo recently signed a deal with a local company to begin distributing several of its brands, and The Daily Telegraph reported in September that Marriott Hotels, Ford Motors, Suzuki, Panasonic and Toshiba had all expressed an interest in expanding into Burma.

Until now, the biggest barrier to such expansion was the absence of a robust regulatory framework. There was a lack of protection against copyright and trademark infringement, and laws inhibiting foreign ownership were also problematic for multinationals.

In October, after some months of delay, a new law was passed allowing overseas firms full ownership of ventures in Burma and offering tax breaks and long land leases. Three private banks have signed agreements with Visa to enable international travellers to use credit cards and withdraw cash from ATMs. MasterCard has struck a similar deal with Co-operative, one of Burma’s largest banks.

At the end of October, KPMG opened an office in Burma – the first of the ‘big four’ professional-services firms to do so.

Relocation: practical considerationsA new report by Santa Fe Group, Frontier Locations: Myanmar, answers some of the practical questions for companies looking to relocate employees to Burma, highlighting the gaps in infrastructure, accommodation and amenities in this emerging economy.

Turning first to immigration, the report finds that business visas, which allow a 70-day stay, are now relatively easy to obtain. Any business or employment above 70 days requires a Foreigner’s Registration Certificate and a Long-

term Stay Permit, the application process for which takes approximately six to eight weeks. The Long-term Stay Permit is valid for between three and 12 months, and is renewable.

The World Health Organization ranks Burma‘s healthcare system as the worst among its 191 member states, making private medical insurance, with evacuation cover, a must for expatriates. Santa Fe’s report says that the local International SOS clinic offers good primary care for a healthy expatriate family; it can handle routine minor illnesses and x-rays, and women’s health screening. For employees with chronic medical conditions requiring ongoing medication, the advice of the company’s medical insurer should be sought before the posting is finalised.

For expatriates with children, the report names the International School of Yangon (Rangoon) as the preferred education choice and the nearest to international academic standards. Another possibility is Yangon International School. Other schools, Santa Fe advises, would be unlikely to meet expatriate standards, although they would be fine for smaller children.

The report warns that rents in Rangoon, Burma’s largest city, commercial capital, and chief port, are very high, because of limited supply and increasing demand from the growing expatriate workforce. Landlords are taking advantage of the huge demand to agree tenancies for only six months to a year.

Housing is not to Western standards, and there are virtually no safety regulations for electrics and plumbing. Since landlords have no responsibility for repairs, it is difficult for companies to budget for staff accommodation. Although some new apartments are being built, market conditions, the report concludes, will not change within the next 12 months, so housing availability will continue to be a major challenge.

There are what the report describes as “acceptable” serviced apartments, but availability is extremely limited. Santa Fe advises companies which know that they will need accommodation for assignees to secure a long-term lease as far in advance as possible.

Assignee support essentialThe report concludes, “Experienced expatriates, especially those with prior emerging-market experience, would … have little difficulty in steering a path towards both a successful and personally rewarding assignment tenure, given appropriate destination support and assuming continued progress in the country’s political direction.

“With this latter point in mind, adequate operation risk measures need to be put in place at both a macro and micro level, as commercial governance and regulatory compliance will be essential for sustainable long-term growth.”

It’s clear that Burma, though a challenging destination for assignees and those managing their moves, is set to be of growing importance to the global economy in coming decades, as political and social reform, together with infrastructure improvements, change the face of the country beyond all recognition.

WINTER 2012/13

For the latest Asia Pacific news, articles and practical advice, see the International Destinations section of www.relocatemagazine.com

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Japan rebuiltRelo Japan’s James Keane considers what impact the natural disasters of spring 2011 have had on relocation to Japan.

The second anniversary of the earthquake and tsunami that struck eastern Japan on 11 March 2011 is fast

approaching. The aftermath has now dropped from the news agenda, leaving many in the dark about the current situation in the country. While it will obviously take many years for some areas to recover, life in the parts of Japan not directly affected continues very much as it did before, and expatriates continue to relocate here in much the same way.

While it was feared that the disaster’s effects, in particular the nuclear accident at the Fukushima Daiichi power plant, would cause a significant fall in the number of expatriate assignees to Japan, in reality the impact has been much smaller. There were, of course, expatriates who chose to leave Japan owing to fears of radiation and/or another major earthquake, but most stayed. The fact that life in Tokyo and other areas not directly affected returned to normal within a matter of weeks, and that the nuclear crisis was swiftly brought under control, was instrumental in persuading people to stay.

It is well known that radiation levels in Tokyo were elevated for several months following the disaster, but it is not as well known that they were not unusually high when compared with those of other major world cities, and gradually returned to their former levels within about six months.

Within a few months of the disaster, we began to receive requests to assist with pre-assignment visits for prospective assignees, many of whom intended to bring their families with them. Overall, the number of inbound relocations we assisted with in the summer of 2011 was around the same as, if not slightly more than, in summer 2010. Regardless of the disaster, it is clear that foreign companies operating in Japan still need expats to manage their businesses here, and the people who have accepted assignments in the aftermath of 11 March 2011 have done so after analysing the facts and coming to the conclusion that Tokyo is a safe place in which to live.

Tokyo is a city of high-rise buildings, and it was assumed that increased awareness of the fact that the city is in a

seismically active area would lead to a turn away from high-rise apartments. Although some of our clients did choose to move to low-rise buildings, for the most part incoming assignees have not shown any inclination to avoid high-rise apartments. Many are swapping a life in the suburbs, and wish to experience something different from their normal lifestyle during the two or three years they spend in Japan, a big part of which is living in high-rise apartments, with the spectacular views they offer.

Low-rise apartments remain the most popular type of residence for expatriates, but this is a consequence of the distribution of high-rise apartment buildings within the city, rather than a specific preference on the part of the expatriates.

Overall, the disaster has had a negligible long-term impact on Tokyo as an expatriate destination. Relocation rates are similar to what they were before the disaster. However, it must be pointed out that the global recession had already led to a major decrease in the number of expats moving to the city, so the environment for relocation service providers here can, at times, be challenging.

22 : ASIA PACIFICRe:locate WINTER 2012/13

Winning the talent warAs the focus of global business shifts eastward, new research shows that companies in Asia Pacific are facing difficulties in recruiting and retaining top talent.

Delegates at November’s CIPD Annual Conference in Manchester heard that more than nine out of 10

employers in Asia were facing difficulties in recruiting and retaining talent, inability to match candidates’ salary expectations being the main reason.

The findings were from Talent Resourcing and Retention in Asia, a survey of more than 1,000 employers across Hong Kong, China, South Korea, Malaysia, Singapore and Taiwan. This was the second of a two-part research programme carried out by the CIPD in partnership with the Hong Kong Institute of Human Resource Management (HKIHRM).

The survey also found that, despite increasing challenges associated with recruitment and retention, and 48 per cent of organisations expecting to need to increase staff levels in the next 12 months, resourcing budgets in Asia remained flat.

When it came to retention strategies, which nine out of 10 respondent organisations had in place, increased pay and benefits topped the list of activities in which Asian employers were engaging. Less than a third, however, cited that they used learning and development opportunities as a way of keeping staff engaged and building internal talent pipelines to support future growth.

“As Asia continues to experience growth despite the global slowdown, it’s perhaps not surprising to learn that

employers in the region are engaged in a war for the best talent to fuel their growth,” said CIPD research adviser Claire McCartney. “However, it’s important to avoid getting into an unsustainable bidding war on salaries.

“Instead, employers should get better at communicating a broader package of incentives to prospective employees – including, for example, the learning and development opportunities they can offer. It’s also important for firms to develop stronger employer brands around a sense of meaning and shared purpose.”

While recruitment and retention difficulties were common across all six countries in the survey, some challenges were more pronounced in some countries than in others. Recruitment difficulties were most acute in China and Hong Kong, and organisations in China, Malaysia and South Korea were most likely to predict an increase in funding for resourcing over the next 12 months. Table 1 shows eight key indicators for each country surveyed.

Released in October, the first part of the CIPD/HKIHRM programme, the Learning, Talent and Innovation in Asia survey, found that an overly hierarchical approach to who should be involved in innovation, combined with a patchy approach to future talent and skills needs, was putting future growth and success at risk.


Table 1: Country Key Indicator Dashboard (%)

Hong Kong China Taiwan Malaysia SingaporeSouth Korea

Structured graduate recruitment programme

45 76 37 52 48 55

No recruitment difficulties 4 2 7 2 10 12

No staff retention difficulties

9 3 7 8 9 11

Net employment score 34 62 38 38 35 24

No applicant (recruitment problem)

31 17 15 18 19 14

No specific initatives used for staff retention

12 3 12 7 11 13

Increase in resourcing – past 12 months

26 48 23 38 23 31

Increase in resourcing – next 12 months

27 56 29 44 30 40

Highest score Lowest score

WINTER 2012/13

Relocating families seeking international-school places in China and Hong Kong face a shortage of places, and hot competition. Rebecca Marriage discovers how provision is being improved, and how parents can maximise their child’s chances of a place.


According to the 2012 Cartus Trends in Global Relocation Survey, China, Singapore and Hong Kong continue to

dominate the countries listed as top relocation destinations (after the USA). Recent research into the massive growth of international schools worldwide shows that this has been reflected in the pattern of growth in education provision. Asia dominates the market, with more than half of the total number of international schools, and 58 per cent of the total number of students.

China is one of the top five countries leading the growth in international schools, with over 200, according to figures from the International School Consultancy (ISC) Research Group. However, while the growth of international-school provision shows no signs of slowing, admission to such schools in Hong Kong and China remains fiercely competitive. In fact, an Education Minister for Hong Kong recently admitted that the region was expected to face an acute shortage of international primary-school places by 2016.

Most international schools in Hong Kong and China use an English-based curriculum and tend to be separated into the British, American, Canadian and International Baccalaureate (IB) programmes. These curriculum choices are popular not only with UK and American expats, but also with the local families who see this as a route to better opportunities for their children in the world’s most respected universities.

“Demand continues to come from the expanding expatriate market, and, more significantly, the increasing number of wealthy local families who are recognising the benefits of an English-medium education for their children,” says Nicholas Brummitt, managing director of ISC Research. “Almost two-thirds of the growth in the current market is as a result of this increase in demand from local nationals, and this looks set to continue and expand.”

ChinaA recent report from KPMG, Education in China, supports this view. The report finds that, other than children of foreign nationals, the wealthy local population represents the largest and the most rapidly expanding group. In China, an estimated 800,000 people have assets exceeding $1 million, and this group is growing at an annual rate of 20 to 30 per cent.

Relocating families are facing a real struggle when it comes to finding places at good international schools in China. In its Global Mobility Effectiveness Survey 2012, Ernst & Young found that schooling was seen as a particular issue in the region, where it was the main challenge for 6 per cent of respondents. “With China likely to remain a focus for a long time to come,” says the report, “this ... is likely to cause real problems in settling long-term assignees and their families.”

Hong KongThe current situation for families seeking a place at an international school in Hong Kong appears to mirror that in China. While KPMG describes private international schools as forming an “important part of Hong Kong’s status as an international business centre and a vibrant cosmopolitan city”, Hong Kong’s offering of around 34,600 school places is not proving to be sufficient to meet demand. In fact, Secretary for Education Eddie Ng Hak-kim has said that Hong Kong is expected to face an acute shortage of 4,200 international-primary school places by 2016.

Since 2010, there has been a surge in numbers of British and American expats to Hong Kong, fuelled by job opportunities in the banking sector. There are now over 15,000 British and almost 30,000 American expats living in Hong Kong.

Figures from ISC Research reveal that, in 2000, there were 70 schools in Hong Kong, teaching 37,800 students.

Education expansionWINTER 2012/13

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Today, that number has increased to around 164 international schools, teaching approximately 64,300 students. There are 74 schools on Hong Kong Island alone, another 37 in Kowloon, and 45 in the New Territories. Twenty-one of them, including Island School and the Chinese International School, both on Hong Kong Island, have an intake of well over 1,000 students.

The American Chamber of Commerce in Hong Kong has expressed concern that the shortage of international-school places has reached “crisis point”. It has also urged the Hong Kong government to set up a committee to ensure that schooling will be available for children of foreign investors and professionals.

Eddie Ng Hak-kim told the Legislative Council of Hong Kong (LegCo) that the city would need at least 4,200 more places at primary international schools by 2016. “Next year, we target to have 1,000 more places. We hope to do it year by year,” he said.

Expanding school groupsHowever, there is light at the end of the tunnel. The Hong Kong government has said there will be an increase of 5,000 international-school places in the coming years by implementing such measures as allocating vacant school premises and greenfield sites for development, as well as facilitating expansion of existing international schools.

International school groups are expanding their networks to provide new schools in regions that are under extreme pressure. They include Nord Anglia, which has schools in Beijing and Shanghai.

“In recent years, we have significantly expanded our family of schools across Asia to meet the demand for premium

education from both expatriate and local parents in these regions,” says Janine Green, group communications manager at Nord Anglia. “Since 2008, our pupil numbers have more than doubled. We have expanded capacity in all our existing schools, most recently our secondary campus at the British International School Shanghai Puxi, which has increased capacity from 1,000 to 2,000 places.”

A word of adviceUntil the supply meets the demand for places, parents are advised to do their research, to look at as many schools as possible, and to be prepared with all the relevant paperwork and teacher recommendations from previous schools.

In September, global relocation services company Cartus held a roundtable event for its clients in Hong Kong, including education considerations for relocating families. Parents should remember one thing above all, explains Cartus, and that is to remain flexible. “Importantly, families relocating with school-age children should be flexible with school choices, and should consider schooling options before housing location.”

While the growth of the international-school market shows encouraging signs of alleviating the pressure on school places, it is clear that, in the current climate, relocating parents need to keep an open mind and look for creative solutions in order to find a good school for their child.

“Key central locations like Hong Kong Island have less availability of school places than the New Territories, for example,” says Cartus. “Flexibility on living location and geography in relation to the daily commute can pay dividends.”


Malaysia: regional education hub

With the opening of two big-brand British private schools, an increasing number of international schools, and projects designed to attract new higher-education institutions, Malaysia looks set to position itself as a centre for international schooling in South East Asia. International schools have been increasing at a rate of more than 14 per cent over the past five years, with growth driven by demand in the expatriate community as well as the removal of the 40 per cent quota on Malaysian student enrolment in international schools.

Marlborough College and Epsom College, two British independent schools, have established sister schools in Malaysia. Marlborough College opened to students in September on the 350-acre EduCity site near the city of Johor Bahru, and Epsom College is due to open in September 2013 as part of Kuala Lumpur Education City, a project aiming to attract higher-education institutions to Malaysia.

Triona Chelliah, general manager of Pathfinder Relocation Services, has noted that the popularity of a British-style education is on the rise. However, competition for places remains high. Ms Chelliah says that most expats centre around Kuala Lumpur, and that the two American schools there, the International School of Kuala Lumpur and Mont Kiara International School, are very popular, and classes fill up fast.

WINTER 2012/13

Moving overseas can be a very time-intensive process for any international assignee, given the multitude of

decisions to be made. These considerations obviously vary, depending on the destination, but can include finding good schools for their children, choosing a place to live, making friends, and learning the language.

One important job that can easily be overlooked in the process is ensuring that their finances are all in order and that they can access their money effortlessly, wherever they are.

Relocation agents and HR teams play an important role in helping their assignees establish themselves overseas, and one of the best ways to provide support is to be actively involved in helping employees manage their finances properly.

However, this doesn’t always happen; in a recent study we conducted*, we found that only 21 per cent of international assignees received financial advice when they moved abroad. But 52 per cent admitted they would have benefited from better planning of their finances. Roughly half of all those surveyed suggested they would have benefited from more advice on tax issues, investments and pension arrangements.

Starting outFinancial preparation must start well before the assignee leaves home. Ideally, they would have a good deal of notice,

at least six months if possible, ahead of the move, in order to prepare. As part of their pre-move preparation, they should first plan to pay off any debts they may have in the UK.

As well as reducing complexity by simplifying their financial obligations, this will decrease the risk that currency fluctuations will increase the cost of these debts. This may not be possible in the case of a mortgage, but it is certainly possible to pay off credit cards and personal loans.

Secondly, it is a good idea for assignees to keep their UK current account, to maintain their credit-rating history in the UK. That being said, we recommend that international assignees notify their bank they will be moving abroad. They should ask for a letter of reference from their UK bank, as this will help with renting a property in their new country of residence.

CurrenciesMany expats don’t take into account the effect that currency fluctuations can have on their money. Until a few years ago, there were many older expats living in European countries such as France or Spain who relied on a relatively small UK pension income. When the pound weakened against the euro (by almost 30 per cent in a year), many of these expat retirees struggled to get by because they relied on payments coming from sterling into euros.

26

International finance for overseas assignees

Re:locate : INTERNATIONAL BANKING

To ensure that assignees hit the ground running, and to reduce the risk of assignment failure, thorough pre-assignment financial planning is essential. Richard Musty, expatriate banking director at Lloyds TSB International, offers his expert advice.

WINTER 2012/13

27 INTERNATIONAL BANKING :

The pound, despite being at a relative historic low against both the US dollar and the euro, still has the potential to fall further. Equally, if it strengthens, it will increase the cost of transferring money to the UK – when paying bills or a mortgage, for example.

International banks offer a range of foreign-exchange services, including one-off currency transfers at the current exchange rate, regular transfers with foreign exchange, and a limit order where assignees can exchange money at a target exchange rate they are happy with.

Expat assignees could, of course, benefit from these fluctuations as well; however, they should understand that they pose a threat to their disposable income. The best way for expats to avoid this risk is to transfer their money into the currency in which they are likely to need it in the long term.

For example, if the assignment is only short term and they are returning to the UK within a couple of years, it might be advisable for them to leave a portion of their money in sterling. However, if the assignment is permanent and they have paid off their sterling liabilities as discussed earlier, it may be best for them to move their cash entirely into their new local currency.

Current accountsAnother consideration international assignees should make ahead of departure is what current account they plan to keep. Assignees should spend some time investigating international bank accounts, as these will often allow banking in many different currencies, including sterling. This is helpful, particularly if assignees have financial commitments back in the UK, such as bills, a mortgage, or a child at university.

They are also very useful if an assignee receives all or part of their salary in the UK, as is often the case, particularly with temporary assignments. With the international assignee in mind, international accounts often feature many benefits that suit the needs of a global lifestyle.

International accounts mean it is possible to run two current accounts side by side – for example, one in dollars and one in sterling – transferring between the two without paying a fee. Opening an international current account before leaving also means that assignees will be able to access their money as soon as they arrive in their new country, and have access to debit cards if required, so they can be fully operational immediately. If they move on to another location, they won’t have to worry about closing one account and opening a new one in their new country.

TaxationTax is likely to be among the greatest financial concerns of any international assignee, and it’s easy to understand why. The number of different permutations that can result when combining two different tax jurisdictions can be baffling, and it’s common for expats to find themselves paying tax twice over a period of time: in the UK, and in their new home country.

To help avoid this problem, the UK has ‘double tax agreements’ (DTAs) in place with a number of countries. These agreements set out which jurisdiction has the taxing rights on a particular source of income. DTAs exist for a number of the most common expat destinations, such as the US, Spain, New Zealand, Italy, France, Canada and Australia.

However, there are also a significant number of destinations that have more-complex tax arrangements with the UK, particularly when it comes to sources of income

Re:locate

Lloyds TSB International Global Mobility Banking provides financial guidance and services to globally mobile employees: www.lloydstsb-offshore.com/employeebanking

such as investments. For example, the Channel Islands are challenging when it comes to investments, while France and Germany have very comprehensive taxation systems that make it more complicated to manage tax with the UK. At the other end of the scale, countries such as the United Arab Emirates impose no personal income tax whatsoever.

To help navigate these tricky waters, the best help is a relocation agent or HR executive, who can recommend that assignees take advice from a qualified tax adviser experienced in expatriate tax matters before they leave.

SavingsThere are huge numbers of savings products on the market, both domestic accounts in most expat destinations and international savings accounts. A key benefit of using international banking, for both savings and current accounts, is that banking can be conducted in English, wherever the assignee lives. Assignees may also feel more secure knowing their money is with an international bank when there are economic or political difficulties in their country of residence.

One of the reasons people may be attracted to an international assignment in the first place is because it is often the case that expats can amass wealth faster than those living in the UK. Salaries are often higher for international assignees, and, with many extra benefits provided by employers (such as house and car), moving abroad provides an excellent opportunity for expats to grow their wealth with investments.

Expat assignees will find that there is a very broad range of investment opportunities internationally, more so than in the UK. As with taxation, the best help that relocation agents can offer if assignees wish to take out an investment overseas is to put them in touch with a professional adviser who specialises in offshore investments.

Final thoughtsMoving abroad is a tremendously exciting time for any assignee and can open up a whole new range of career opportunities and life experiences. The process of moving abroad need not be a headache, given adequate preparation. Financial matters need to form a central part of this pre-move preparation, and with guidance on the matters discussed above, expats will find it far easier to get their finances in order for their move.

* Research conducted by Freshminds among 1,030 British expats based in 10 popular expat destinations in April 2012.

WINTER 2012/13

28 Re:locate : PARTNER EMPLOYMENT

When employees are assigned to work abroad, work-permit constraints can have a negative effect on dual-career couples’ assignment take-up and host-country performance. Sue Shortland reports on the latest data, policy interventions and future action to support dual-career couples, and the effect on business performance.

According to Permits Foundation’s International Mobility and Dual Career Survey of International Employers, 96 per

cent of employers report that being able to transfer employees internationally is of high importance to their organisations. A similar percentage states that the partners of international assignees should be allowed to work in the host country for the duration of the assignment. It is notable that 92 per cent of employers say that when host-government-imposed work-permit restrictions limit the transfer of personnel to key destinations, this has a detrimental effect on their business, and 85 per cent report that time limits and restrictions on work-permit extensions in key countries also have a negative effect on their business.

Given that the research was based on the responses of 177 organisations employing some 7.5 million people (of whom 1.8 per cent – some 130,000 staff – were expatriates), this clearly demonstrates the scale of employer concern over work-permit restrictions.

The increasing trend in the use of short-term and commuter assignments (see feature on p10) might be considered as a potential response to managing dual careers and any inability for spouses/partners to work abroad. However, such assignment types are stressful for individuals, as they result in family separation, and this can have a knock-on effect, lowering employee productivity.

While the percentage attributed to accompanied mobility varies from survey to survey (for example, in its Global Relocation Trends 2012 Survey Report, Brookfield finds 81 per cent of assignments accompanied in 2012; Permits Foundation puts the figure at 59 per cent; and Cartus, in its Global Mobility Policy & Practices Survey: 2012 Trends in Global Relocation, at 49 per cent), there is no doubt that employment is a critical factor for the accompanying partner, emotionally, financially and professionally. This affects organisations’ ability to attract employees to consider international assignments, the prevalence of assignment refusals, and the potential for couples to return home early, dissatisfied with their foreign posting.

To consider the statistics, Permits Foundation reports that two-thirds of the organisations in its survey (66 per cent) said that partner careers and potential lack of employment abroad impacted upon their ability to attract talent to take up international assignments. A similar percentage said that dual-career and partner-employment issues were growing in importance, while just over half (51 per cent) said that employees had turned down international assignments because of partner career or employment concerns.

A fifth of those surveyed (21 per cent) reported early assignment returns due to partner career and employment

continued on page 29

Dual careersThe impact of work-permit restrictions on international business

WINTER 2012/13

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issues. Given the emphasis on the importance of selecting appropriate candidates, the cost of international mobility and the need to ensure competitiveness and maintenance of host-country relationships, these statistics are worrying indeed.

Location issuesSurvey respondents reported that it proved hard to transfer their assignees to particular countries owing to work-permit concerns. The USA topped the list, but the BRIC countries, in particular India and China, were mentioned frequently. Indonesia and Malaysia were also named.

With respect to work permits for partners, a wide range of countries were cited as presenting dual-career relocation problems. The USA, once again, emerged as generating the highest level of comments in this regard. As organisations expand globally, it is becoming apparent that a host of newly industrialising and developing countries are joining the list of traditional destinations known for their work-permit restrictions. For example, in the Americas, Argentina, Colombia, Brazil and Mexico are listed, in addition to the USA and Canada, as ‘difficult’ countries for transferring assignees, owing to partner work-permit concerns.

In Africa, Algeria, Angola, Botswana, Gambia, Gabon, Ghana, Kenya, Morocco, Senegal, Tunisia and Zambia have joined the more-traditional expatriate host locations of Nigeria and South Africa, and are now presenting dual-career work-permit difficulties to employers.

In order to address these problems, it is necessary to identify exactly what the barriers are to dual-career couples’ mobility. For example, the host location may not permit the spouse or partner to work directly on the accompanying

employee’s work permit. Indeed, the host country may not recognise non-married partners at all; this may particularly apply to same-sex couples. Work-permit application processes may be lengthy and complex, potentially requiring the spouse/partner to apply for their own permit, even to be out of the host country to do so. Quotas may be applied to work-permit issuance, precluding employment locally.

Addressing dual-career concernsNonetheless, despite these difficulties, organisations can demonstrate their concern and willingness to try to help employees and their partners through making provision for a formal policy in respect of dual-career assistance indicating how and where practical and other support may be available.

The Permits Foundation research suggests that, while only a third of organisations (33 per cent) have formal dual-career assistance policies in place, some 38 per cent provide either case-by-case support (27 per cent) or have informal guidelines (11 per cent). Only 29 per cent are reported as providing no support at all.

Given the backdrop that dual-career support requires a facilitating work-permit regime to be fully effective, it is interesting to understand why organisations have introduced such policy provision at all.

Although it would be expected that dual-career support would be made available to facilitate international mobility – and, indeed, over three-quarters of those surveyed (78 per cent) said this was the case – other reasons given included: having provision for a family-friendly policy (64 per cent); to be seen as an attractive employer (59 per cent); to reduce costs of assignment refusal and early return (31 per cent);

29PARTNER EMPLOYMENT : Re:locate WINTER 2012/13

to address Corporate Social Responsibility (27 per cent); and to support gender diversity (23 per cent). This last point is a fascinating one; given that 16 per cent of assignees are female in the Permits Foundation survey (compared with 20 per cent in the Brookfield and 24 per cent in the Cartus reports), this suggests growing emphasis being placed by organisations upon widening expatriate participation on gender lines, and using dual-career support to help to bring this about.

In relation to the policy components to assist dual-career couples, language training (64 per cent) and work-permit information and advice (62 per cent) were the two top assistance items. In relation to financial assistance, 61 per cent of those organisations surveyed provided either an allowance or costs reimbursement against receipts. Other forms of support included: education/training allowances (37 per cent); job-search advice (36 per cent); direct employment within the organisation (33 per cent); information on local opportunities (31 per cent); CV advice (28 per cent); career counselling (26 per cent); network contacts (24 per cent); tax/pension advice (23 per cent); interview skills training (14 per cent); and self-employment/business start-up help (9 per cent).

Future actionSome 70 per cent of the organisations surveyed by Permits Foundation felt that organisations needed to do more to support dual-career couples. For example, talent management was considered of prime importance, and strategies to address dual-career mobility were needed to attract and retain the best personnel. This was considered particularly key given the importance of being prepared for new business ventures and the requirement to move into new markets swiftly.

There was clear recognition of the growing emphasis within family units on both partners working. The potential income loss from international relocation was seen as a significant disincentive if one partner was unable to work, particularly given the trimming back of expatriate packages in response to economic constraints.

The Brookfield survey points out the declining age profile of expatriate workers. This issue was also highlighted in the Permits Foundation research: the younger generation were thought to expect different treatment from their predecessors. There was also recognition that family profiles were changing, with an increase in unmarried couples. The legislative issues associated with same-sex couples (being unrecognised or illegal) were highlighted as particularly problematic.

Provision of dual-career support in policy or on a case-by-case basis is, no doubt, helpful to assignees and their spouses/partners. However, without a work-permit regime that enables spouses/partners to take up employment while based in the host location, many policy interventions may appear simply cosmetic.

The underlying problem concerns spouses’ and partners’ ability to work, underpinned by facilitating legislation. The future lies in lobbying for change if international businesses are to ensure that they can grow and develop across the globe, bringing jobs and wealth to local economies.

Rather than accompanying spouses/partners being viewed as competing with locals for employment, the value that international assignees and their partners can bring in creating economic growth locally should be recognised and supported.

Book Review

What colour is your parachute?A practical manual for job-hunters and career-changers

2013 EditionRichard N Bolles

This is one of the all time greats for anyone thinking about switching career. A book to recommend to partners and spouses embarking on relocation to help them realise that this move could be a great opportunity. Ideal, if you are climbing the corporate ladder yourself, or providing a reading list for rising talent in your organization.With a section on ‘My ideal place to live’ it suits relocatees down to the ground.

Full of resounding truths there is something to take away for everyone. Pearls of wisdom include ‘Many if not most employers hunt for job-hunters in the exact opposite way from how most job-hunter hunt for them’. This is included in the chapter on ‘The seven secrets about the job-market today’.

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32 Re:locate : INTERNATIONAL PENSIONS

Relieving pension tension

In the UK, as in most industrialised and ageing nations, employers have been working out how best to defuse

the ticking pensions time bomb: a highly combustible mix of unsustainable pension-scheme deficits, unprecedented economic uncertainty and increasing mortality rates.

Many employers, over the past decade, have been closing their traditional defined-benefit pension schemes and moving to defined-contribution schemes. Here, more of the risk, cost and responsibility are passed on to employees, with employers able to reduce their costs and take on a more partnership, less paternal, approach to pensions planning.

Recent legislation, in the form of the UK Pensions Act 2008, is also responding to these changes. The automatic-enrolment provision, which came into force on 1 October (see Auto-enrolment: what you need to know, opposite), also perhaps explains why the Chartered Institute of Personnel and Development’s (CIPD) latest Reward Risks Survey reveals that ‘increasing pensions costs’ has crept into employers’ top 10 list

Occupational pensions are a legislative requirement as well as a well-established strategic imperative for UK companies and their employees. But how to ensure pensions for international employees achieve their maximum benefit and fulfil a strategic role? Ruth Holmes talks to the experts.

of rewards considerations for the first time. Such legislative changes, which are not unique to the UK, add a further layer of complexity to pensions planning today – especially when viewed from the international-mobility perspective.

Getting back to basicsAfter basic salary, a company pension is integral to, and usually the most costly element of, the remuneration package. It is, therefore, key to maximise returns, both at the point of cash-in and throughout an employee’s working life.

One way of understanding the importance of pensions from an employee perspective is through Two Factor Theory. Within this, a pension (alongside pay and benefits more broadly) is regarded as a hygiene factor (as opposed to a motivating factor like achievement, recognition or advancement). Hygiene factors are aspects extrinsic to the job that can cause dissatisfaction, poor performance, and ultimately disengagement.

WINTER 2012/13

For internationally mobile workers, this idea takes on a special significance, given the particular set of challenges they face, and the high risk of assignment failure. A well-understood and appropriate pension plan, drawn up with the right advice, can therefore be an important factor in ensuring the success of an assignment.

Cutting through complexity At first sight, pensions planning for globally mobile workers can seem like an intractably tricky area. Assignment length, currency and tax regimes alongside the growing number of destinations, increasing diversity of global work patterns, the Olympic-sized talent pool and competition to attract the medallists, and the employment of third-country nationals must all be reconciled with corporate objectives.

Says Emiko Caerlewy-Smith, associate director at Lloyds TSB International, “The greatest challenge is the complexity of options available. The right option will depend on individual circumstances.”

Taking a global viewGetting advice on pensions and reinforcing the connection between them and corporate objectives has never been more important. Matthew Beaman, international pensions lead and senior manager at Grant Thornton Employee Benefits Consultancy, explains, “Because of the idea that pensions is a complex issue, employers often end up not doing anything in a coherent way. This often leads to highly individualised packages, with each worker negotiating their own benefits and pensions.

“Company benefits then become disjointed, expensive and out of sync with employment, business and corporate strategies. If you avoid grappling with pensions issues, it very often ends up being more costly than dealing with them. This is especially the case for the growing number of companies that are becoming MNCs [multinational corporations]; for example, an engineering firm in the Black Country taking over a subsidiary in Holland. These smaller companies may not regard themselves as multinationals, but as soon as they employ overseas, they will benefit from thinking in terms of pay and reward in a more global, less UK-centric, way.”

Planning: where to startDespite the complexities, consistent principles can be applied to international pensions planning. The CIPD recommends that, as a minimum, organisations need to ensure that internationally mobile employees are covered by coherent pension arrangements. For MNCs, this is likely to mean harmonising pension arrangements.

Global companies need to set a framework against which retirement benefits are designed and funded worldwide that aligns with, and supports, the corporate, business and people strategies. This process ideally needs to draw on the experience of tax and legal specialists, as well as that of pensions and benefits advisers, to ensure that the approach is both compliant and set to achieve the desired outcomes.

“Too often, a company will just go to lawyers in the host country and ask them to make the UK pension policy compliant,” observes Matthew Beaman. “However, this can lead to all kinds of issues, with nuances like 60-day waiting periods for pensions enrolment in Hong Kong, say, being at odds with current UK law.

“To get around this, no matter what their size, if a company is operating in more than one country, it needs to drop its prejudices, UK focus and language – as definitions of pensions terms are very different according to each pensions regime – take a blank sheet of paper, and adopt a global view. They also need to understand that, while aiming for coherence and equalisation, a global policy that takes into account the legal, tax and benefits perspective will create fewer opportunities for error and negotiation; around 80 per cent of cases will be black and white, and 20 per cent will need adjusting for the local country.”

Workforce profileOne of the key considerations for any global pensions policy framework is mobile-worker profile. “In an increasingly global marketplace, organisations that offer compliant, competitive international packages are undoubtedly likely to attract and retain the very best talent,” says Sam Instone, chief executive officer of AES International Global Wealth Management.

Local nationals, expats on short-term or localised contracts, and global nomads who typically move around from contract to contract all have different needs that a good, globally consistent framework will accommodate.

For some groups of employees, like highly skilled global nomads, the strategic aspect of the pay-and-benefits package and pension as a part of this can really come into play. Competitors poaching staff is a well-established cause of stubbornly high assignment-failure rates. However, some companies are taking advice and harnessing pensions and a guaranteed lump-sum payment at the end of the assignment as ‘golden handcuffs’ to ensure that assignment goals are met.

33Re:locate INTERNATIONAL PENSIONS :

Auto-enrolment: what you need to know

“Another consideration when dealing with internationally mobile employees is the impact of UK legislation requiring all qualifying employees to be enrolled automatically in a workplace pension scheme to which the employer must contribute,” comments Charles Cotton, rewards adviser at the CIPD. The Pensions Advisory Service counsels that employers must automatically enrol workers who:• Are not already in a qualifying workplace

pension scheme•Are at least 22 years old•Are below state pension age•Earn more than £8,105 a year• Work, or ordinarily work, in the UK

(under their contract)

However, even if an employee does not qualify to be automatically enrolled, they still have the right to join the scheme.

Grant Thornton’s Matthew Beaman adds, “From our perspective, there is lots of confusion around auto-enrolment, and more certainty is needed through case law. It’s important for any employer who determines that an employee is not covered by the auto-enrolment – for example, workers already enrolled in a Qualifying Recognised Overseas Pension Scheme – to take guidance from an educated source and document the procedures, to justify how they arrived at this decision.”

WINTER 2012/13

34 Re:locate : INTERNATIONAL PENSIONS

Getting the right financial adviceIn line with this increasing ‘partnership’ approach to pensions planning and the fact that many mobile workers have potentially more retirement-planning options, some employers offer independent financial planning as a flexible benefit option. In any case, and wherever there are potentially big financial decisions to be made, employers must take care not to give direct financial advice.

“Globally mobile workers have a wide range of pension options,” says Emiko Caerlewy-Smith. “Some overseas pension schemes have QROPS [Qualifying Recognised Overseas Pension Scheme] status and may be available to those planning to emigrate or live abroad for at least five complete tax years.

“In ideal circumstances, relocated employees would start preparing at least six months ahead of a move. It is also important to consult a tax adviser, as moving a pension overseas can have tax implications that are best understood with guidance.

“We always recommend that people moving abroad seek professional retirement advice. A useful starting point is to consider which currency you are most likely to need over the long term. If you plan to move to another country permanently, then you might consider putting your entire pension pot into your new currency of expenditure. A good financial adviser should be able to assist you.”

Valuing the benefitFor a pension to be an effective benefit, employees must understand its value to them. For the second year running,

the CIPD’s Reward Risks Survey finds that employers are most concerned that ‘employees don’t appreciate the value of the total reward offering’. The CIPD concludes that employees are more likely to value pension arrangements when they are simple to understand.

Furthermore, CIPD research shows that the more effective the communication, the more highly a benefit is valued by staff. Traditionally, most communication around pensions has taken place at the recruitment and selection stage, or during the induction process, rather than on an ongoing basis. InterContinental Hotels Group has an easily accessible section of its website given over to information about its company pension plans, publishes regular magazines full of relevant information and pensions-example calculators, so that those saving for pensions are in control and can see what their pension pot is worth. Such approaches can be particularly useful for overseas workers, for whom feeling out of the loop and isolated are well-documented problems.

The way aheadInternational pensions can undoubtedly be a complex area. However, with the right balance of advice and clear, mutually supporting links between the business, benefits and people strategies, a well-communicated global pensions framework can hugely simplify the process, as well as create benefit in terms of reducing dissatisfaction, enhancing employees’ understanding of their whole benefits package, and increasing the success rate of overseas assignments.

Now, that is a good investment!

WINTER 2012/13

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36 Re:locate : HR CONFERENCE

The best is yet to come for HR

The closing session of the CIPD’s 2012 annual conference brought together three inspirational figures who were

instrumental in pulling off Britain’s greatest Olympic Games. Their contributions represented not only a turning point in British sport with a legacy for future generations, but also a fundamental change in attitude towards diversity, as well as setting the bar for strategic HR by exemplary leadership of the 200,000 people – employees, contractors and volunteers – who delivered the Games.

Paralympic wheelchair athlete David Weir won four gold medals. This seemingly ordinary man explained that it was “all about getting under their (opponents) skins, being mentally prepared, and racing to my ability.”

Andy Hunt, chef de mission for Team GB, was responsible for bringing together 1,300 people to work as one team for six weeks. He did that by forming one culture and one set of values and behaviours to apply. The result, he said, was pretty much faultless behaviour on and off the field of play, because the values were embedded throughout the team.

The HR perspectiveJane Tomlin’s contribution to the conference, in her role as HR director of London 2012, was perhaps the most inspiring. It hadn’t occurred to me before that there was such a massive strategic HR role supporting the Olympics and Team GB’s ultimate success.

Before joining LOCOG, the London 2012 Organising Committee of the Olympic and Paralympic Games, Jane Tomlin was group HR director at Marks & Spencer, and an executive adviser to the BBC. She was ultimately responsible for managing around 200,000 people. She talked about the fantastic journey which began in May 2006, the first inklings of what it would take to deliver something fantastic for the UK, and the realisation on her first day that “it’s down to you”.

Listening to her speak with such pride and understated passion, it dawned on me that pulling off the Olympics was indeed a gold-medal-winning achievement in itself. Here was a shining example of focus, strategy and leadership, where strategic HR and ‘managing the people’ were at the heart of the project from the start.

“The HR function can either sit at the heart, or it can be sidelined,” Ms Tomlin said. “I was clear we needed to be centre stage and at the table when key decisions were made.” Being ahead of the curve and working with great people was

The closing session of November’s CIPD Annual Conference brought an inspiring message of empowerment and engagement for HR from Jane Tomlin, HR director of London 2012, as Fiona Murchie reports.

what made the difference. Then you are in the position to influence and say, “No, I think we should look at it this way.”

One of the resounding successes, and a huge legacy from the Games, was the commitment to diversity. As Jane Tomlin explained, “When we won the bid in 2005, we wanted to inspire a generation and deliver the most diverse and inclusive Games possible. Diversity and inclusion was an integral part of everything we did.”

This shared sense of purpose was key, and the team worked hard to get this message across to everyone involved in the delivery of London 2012. “We created a diversity board, because we knew we needed to get key athletes and government involved,” said Ms Tomlin. Membership of this board included directors across the business, and each was accountable for leading a stream of diversity and inclusion. There were 22 specific diversity and inclusion projects to deliver across the whole spectrum of the Games.

“Diversity,” Jane Tomlin continued, “had been one of the key measurements of the contract we signed at the beginning. It doesn’t just happen – you do need to do some simple things and make sure it happens, with top people involved, such as Sebastian Coe, the chairman, and Paul Deighton, the CEO, who, together with Archbishop Desmond Tutu, undertook the Leadership Pledge. Over 90 per cent of the workforce signed up to the pledge as part of their induction.”

Ms Tomlin also explained that there had been “a real push for youth”. They gave every local potential school leaver the opportunity to apply to LOCOG, and then took on 12 of them as ambassadors. One of her proudest moments was seeing the young Games Makers, 2,500 young people under 18, standing on the track in their uniform, excited to learn.

But it wasn’t all about young people: one of the triumphs was to create a “one-team ethos” by linking the Games Makers with the paid staff and the contractors, so that they all worked together.

How was this achieved? The secret, Jane Tomlin revealed, was “creating the right conditions, and setting clear direction. Superb communication and engagement were needed. But in reality, she concluded, strong leadership will work. That was the empowering lesson that Jane Tomlin delivered for everyone to take away.

“Now we know that, when the next great thing comes along for the UK, we can step up to that, and, for organisations, it is really not much different. Leaders set the journey and give the opportunity for others to flourish. We’ve done it, and we are going to spread the gold dust.”

Let some of that gold dust settle on your organisation.

WINTER 2012/13

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Organisations of all types and sizes, from around the world, will benefit from entering. With a choice of 10 categories – some for HR, some for service providers, and some for both – there’s sure to be one that’s the perfect fit for you.

Awards evolvingThis year, in response to feedback from previous entrants and our team of independent judges, we have decided to make

changes to three of our categories. Category 3, Inspirational HR Team of the Year, becomes Best HR & Supplier Strategy or Team, in recognition of the outstanding work being done by HR and supplier partnerships. The HR team may be working with the supplier on a particular project that requires a new strategy. Alternatively, the HR team may be delivering a total package, with support from an outsourced supplier.

Category 6, Rising Star in Relocation, has been broadened so that young companies that are starting to go places, and organisations expanding into new relocation markets, are eligible to enter. Whether your company is a recent start-up, is

How to enterEntry is easy, and free. Visit www.relocatemagazine.com for full details, and to download an entry form. You can also sign up for awards webinars, and subscribe to our special awards newsletter.

Sponsors

Relocate Your ThinkingISO Certifi ed 9001:2008

Re:locate Awards 2012/13

Enter now!

With the closing date for entries fast approaching and excitement mounting, it’s time to submit your entry for relocation’s premier awards. Raise your organisation’s profile, impress potential customers and investors, improve business planning, and enhance your employer brand!

39AWARDS : Re:locate 39

Key datesAwards webinars: November 2012 onwards

Entry deadline: Friday 15 February 2013

Gala Awards Dinner: Thursday 9 May 2013

Professional endorsements

Supporters

THE RELOCATIONUSERS GROUP

delivering an innovative new product or service for relocation, or has expanded into new markets, this award is for you!

Category 7, Green Achievement, has been widened to include Corporate Social Responsibility initiatives (see p48).

Rising to the challengeFor HR people, the awards present the perfect opportunity to show how you and your team have been rising innovatively to current challenges. Show us, for example, how you are managing new markets, supporting talent and diversity, or dealing with the property downturn.

Perhaps you’re managing short-term assignments or business commutes instead of long-term assignments. You can highlight work in progress, not just completed projects.

But these awards aren’t just for HR professionals: there’s plenty of scope for those on the supplier side, too. Previous supplier winners have found that, as well as providing welcome recognition for a job well done, their award has been a valuable sales tool and PR opportunity that has raised their profile and brought contacts and business opportunities.

These awards really are the ones to win! Introduced to celebrate the contribution of relocation to business, and to reward good practice, they are now of global stature, attracting more entries every year, from both UK and international organisations.

WebinarsGet on the fast track to awards success by tuning in to our new series of webinars.

These lively and informative sessions explain the judging process and provide invaluable background information for compiling your entry, including interviews with previous winners. You’ll discover why you should enter, how the judging process works, and how to maximise your chances of winning! For full details, see www.relocatemagazine.com, where you can also sign up for our special awards e-newsletter.

Celebrity hostOur celebrity host and guest speaker for this year’s Gala Awards Dinner will be high-profile international broadcaster and foreign-affairs authority Stephen Cole.

Stephen is one of the most recognisable faces of international television, having worked at Sky News, CNN International, and the BBC. He currently anchors Al Jazeera English, both in London and at its base in Doha. Further details on www.relocatemagazine.com

Award categories

1. Technological Innovation in RelocationSponsored by PwC

2. Inspirational HR Team of the Year Sponsored by Cartus

3. Best HR & Supplier Strategy or Team

4. Relocation Service Provider or Team of the Year

5. Best Property Provider or SolutionSponsored by Halo Financial

6. Rising Star in Relocation Sponsored by SIRVA

7. Green/CSR AchievementSponsored by Pro-Link GLOBAL

8. Excellence in Employee & Family Support Sponsored by Weichert Relocation Resources

9. Best International Destination Services ProviderSponsored by NatWest Global Employee Banking

10. Relocation Personality of the Year Sponsored by Paragon Relocation

WINTER 2012/13

40

The only way is ethics

Sustainability, with its close relative ethics, is big news. Companies and families alike are affected by rising energy

prices and increased pollution, the nuclear-versus-renewables debate rages on, and Corporate Social Responsibility (CSR) is at the heart of global business as companies seek creative ways of differentiating themselves from their competitors.

In November came the announcement that Japanese energy and engineering company Hitachi was to buy Horizon, Britain’s nuclear project, for around £700 million, creating 12,000 jobs. The project had been under threat since German companies E.ON and RWE withdrew their involvement in the wake of their government’s decision to close its reactors following the 2011 nuclear disaster in Japan.

The effectiveness of wind farms, and their impact on Britain’s countryside, continues to be hotly debated, not least within the Coalition Government. At September’s Liberal Democrat Conference, Danny Alexander, Chief Secretary to the Treasury, spoke of his frustration at Conservative opposition to wind farms and other sources of renewable energy, which he described as “fundamentally important” to his party.

Mr Alexander, who is MP for Inverness, Nairn, Badenoch and Strathspey, may have difficulty in persuading the Scottish public to back the Liberal Democrat view. Reports suggest that wind farms are increasingly unpopular in Scotland, a country that relies heavily on tourism and outdoor activities. Plans for a new wind farm in Aberdeenshire were rejected after 18 months of negotiation, and proposals for wind farms in the Loch Ness area have met with a hostile reception.

The debate goes on, not least within the Coalition. Liberal Democrat Secretary of State for Energy and Climate Change

Ed Davey and his Conservative Minister of State, John Hayes, recently clashed over the building of new wind farms, which Mr Hayes was reported to have said could no longer “be imposed on communities.” The Prime Minister later confirmed that there had been no change in policy.

The business agendaA new book from Cranfield University’s School of Management takes forward the sustainability debate, emphasising the need for joined-up working when tackling sustainability issues.

In Cranfield on Corporate Sustainability, authors David Grayson, director of the Doughty Centre for Corporate Responsibility, and centre manager Nadine Exter examine sustainability in relation to a range of disciplines, including marketing, logistics, HR, and business performance.

Describing sustainability as “the issue that can’t be ignored”, Professor Grayson said, “Rising global population and demand on resources, climate change, and societal cohesion have profound implications for the business landscape, and so managing your organisation’s environmental, social and economic impacts must now be regarded as business-critical.

“The only way that this can be comprehensively addressed is to embed sustainability within the strategy, mindset and operations of your organisation.”

New recognition for sustainability initiativesDuring 2012, the UK celebrated the Queen’s 60 years of service, and organisations from across the relocation sector

Re:locate

Growing populations, shrinking natural resources, climate change, and an increasing focus on business ethics are changing the way in which global companies operate. Some of relocation’s major players are now using their environmental and Corporate Social Responsibility policies to differentiate themselves from their competitors and win new business, as Louise Whitson reports.

: SUSTAINABILITY WINTER 2012/13

joined forces to support nationwide charity scheme The Jubilee Hour. Seeing what great work was being done, and recognising the growing importance of the sustainability agenda to business, we have expanded the Green Achievement category of the Re:locate Awards – which recognises excellence in environmental initiatives and practices – to include CSR programmes, giving organisations the chance to celebrate, and share, their good practice.

Putting environmental and CSR policies at the heart of their offering is already helping some of the relocation industry’s major players not only to blaze a ‘green’ trail, but also to win business and cut costs. Last year’s Green Achievement winner, HCR, was the first organisation of its kind to achieve carbon-neutral status, and, not content to rest on its laurels, has succeeded in cutting its total carbon-dioxide emissions by 12.5 per cent over the last year, exceeding its 10 per cent target.

As HCR’s head of marketing, Simon Hood, explained in our Summer 2012 issue, “More and more clients are coming to us after searching for a relocation service provider that is making efforts to reduce its environmental impact. In addition, our environmental efforts provide huge cost savings for the business through reduced mileage and energy consumption.”

Case study: serviced apartmentsDescribed by the Re:locate Awards judges as “a very strong contender”, Green Achievement 2011/12 runner up The Ascott Limited was Highly Commended for “a very well-rounded entry showing a significant rapid increase in focus on environmental initiatives and achievements”.

The world’s largest serviced apartment owner-operator, Ascott has more than 30,000 apartments in 20 countries. It is headquartered in Singapore, with satellite offices in Paris and London.

Explains Rebecca Hollants van Loocke, regional general manager for the UK, Germany and Georgia, “Ascott embraced a socially responsible and environmentally sound business ethic from inception, and continually invests to improve sustainability across its global portfolio. We set our benchmark of environmental excellence higher than legislative guidelines require, and all contractors and joint-venture partners must adhere to our strict operating standards.”

When, in 2011, Ascott expanded its global presence by around 8 per cent, it launched a new internal policy, The Green File, to address environmental, health and safety (EHS) issues. A team of ‘green ambassadors’ monitors performance and implement green initiatives in all areas, from recycling, laundry and lighting to heating and air conditioning.

Since the new policy’s implementation, all Ascott’s new-build apartments have been designed to meet best practice in environmental performance, exceeding legislative requirements and taking account of energy efficiency, water usage, construction materials, waste, and ecological impact. Reduction of CO2 emissions and use of environmentally friendly insulation have also been integral to sustainability. The company is on track to achieve a 15 per cent saving in energy and water use per square metre by 2015, and 20 per cent by 2020.

Ascott has worked since 2011 to secure EHS ISO certification on all its British and French apartment buildings. The renovation of Citadines Trafalgar Square London achieved BREEAM certification (an environmental assessment

method and rating system for buildings). More than 40 tonnes of old furniture were recycled to individuals in need, and to charities, instead of going to landfill. By autumn 2012, LED lighting and PIR systems had been installed in all public areas.

Guests and staff doing their bitAscott’s guests are also encouraged to ‘act green’. All apartments offer swift access to public transport, shopping and entertainment, making a car unnecessary. Prominent notices encourage guests to use water sparingly, and to reuse towels. Recycling bags in every kitchen make it easy to sort glass and paper.

In March of last year, Ascott’s Earth Hour 2011 initiative saw more than 200 apartment buildings switch off façade and non-essential lighting for 12 hours overnight. At the same time, for Wear Less/More Day, staff in warmer locations wore less, so that air conditioning could be reduced, and those in cooler locations wore more, so that heating could be turned down. Since February 2012, these initiatives have been a regular feature of the first Friday of each month, resulting in significantly reduced CO2 emissions.

Starting in 2011, managers of Ascott’s Citadines Prestige-branded apartments have sourced from organic suppliers, and purchased locally to support the communities in which they work. In 2012, inter-company awards for best recycling and energy/water-saving apartments, water-flow restrictors in all properties, and incentives for staff to devise new green initiatives have been introduced.

‘Impressive scale and metrics’ praisedThe Re:locate Awards judges for this category were led by Janet Kidner, head of strategy and new business at Lend Lease, EMEA, who sets her company’s sustainability targets for the EMEA region and ensures that they are met and incorporated into new business opportunities.

In her comments, Ms Kidner said, “Ascott has set both short-term targets and longer-term goals, and is engaging well with employees and the wider community. It has a very strong EHS system, and provided clear and specific examples and metrics as evidence of the success of its ongoing sustainability initiatives. The scale and metrics were too impressive not to be recognised.”

“Receiving recognition for our commitment to ‘going green’ is a great endorsement of our company’s environmental policy, and will inspire our staff to continue the good work,” says Rebecca Hollants van Loocke.

If Ascott’s success has inspired you, why not enter the Green/CSR Achievement 2012/13 award? Any type of organisation involved in relocation, on the corporate or the supplier side, is eligible. For full details, and to download your entry form, visit www.relocatemagazine.com

In our Spring 2013 issue, find out how major organisations are leading the way in Corporate and Social Responsibility, developing their brands and helping to change the world.

41Re:locate

See Re:locate Awards feature (p46). For the latest awards news, visit www.relocatemagazine.com

SUSTAINABILITY :WINTER 2012/13

42

Nine till five?

The world of work is changing fast. Traditional jobs are vanishing as progress towards a more service-based,

digitally focused and globalised economy gathers pace. Advances in technology make remote working a viable option for many, and more organisations are requiring their staff to work across geographical boundaries.

These changes bring opportunities and challenges for employers and employees, and for partners accompanying their other halves on assignment.

The international outlookDespite unemployment’s remaining high in economies worldwide, Manpower Groups 2012 Talent Shortage Survey found that more than a third of employers were unable to source the talent their organisations needed. The group’s Melanie Holmes said that companies were looking for people with multiple skillsets and varied backgrounds, explaining that such candidates were hard to find, especially among those who had been out of the jobs market for some time.

The survey also revealed a global trend for companies to focus on upskilling internal talent rather than committing resources to external recruitment, which may be bad news for accompanying partners trying to enter the jobs market in their new country of residence.

While unemployment remains above 8 per cent, 49 per cent of US employers in all industries are experiencing difficulties filling vacancies. In the emerging market of Brazil, finding talent is even harder, with 71 per cent of employers reporting shortages. The top three reasons for employers struggling to fill positions are lack of available applicants, candidates’ lack of technical competencies or ‘hard skills’, and an overall lack of experience among candidates. Lack of hard skills is a particular problem for IT companies.

According to the survey, talent shortages are most acute in the Asia Pacific region, especially Japan. Manpower encourages companies to consider longer-term approaches to developing talent, including talent pipelines, identifying high potential, and building a succession-management approach, to help solve the global talent mismatch.

Talent shortages, combined with strong economic growth, may be one of the reasons behind salary increases in Asia Pacific. Professional services firm Towers Watson’s recently released 2012 APAC Salary Budget Planning Survey forecasts higher wages and more opportunities in 2013. More than 90 per cent of respondents plan to hire new staff next year. Salaries are expected to grow by between 2.3 per cent and 12 per cent, an increase of up to 0.5 per cent on 2012 rates.

Far fewer employers in Europe, the Middle East and Africa reported difficulties in recruiting because of insufficient talent. This was a problem for only 25 per cent of employers surveyed there, compared with 41 per cent in the Americas and 45 per cent in Asia Pacific. However, there are exceptions; in

Bulgaria and Romania, for instance, 51 per cent and 45 per cent respectively of employers have recorded talent shortages.

UK: jobs on the increaseFigures from the Office for National Statistics showed that unemployment fell by 49,000 between July and September, to just over 2.5 million. Minister for Employment Mark Hoban pointed out that UK unemployment was below levels in the Eurozone, the European Union and the US, crediting the Government’s welfare reforms, which, he said, were helping the UK to compete effectively in the global marketplace.

Gerwyn Davies, labour-market adviser at the Chartered Institute of Personnel and Development (CIPD), sounded a note of caution. “Employers have continued to focus on keeping labour costs down, and a combination of pay restraint and a higher proportion of part-time and temporary work has enabled them to take on more staff. Despite the positive headline figures, the high proportions of part-time and temporary work suggest that many employers remain cautious about adding to their long-term cost base.”

According to Manpower’s latest Employment Outlook Survey, the UK jobs market is set to grow by 3 per cent during the final quarter of 2012 – its strongest growth since before the 2008 credit crunch. For the first time in four years, employers of all sizes are hiring, despite the difficult economic environment. The survey found that the financial and business-services sector was the most positive sector for Q4. Prospects for manufacturing and utilities also looked encouraging. The outlook for construction, however, remained negative, despite a small improvement on the last survey.

Said Manpower’s James Hick, “The more skills jobseekers have, the better they can dictate how, when and where they work in an increasingly complex and fragmented jobs market. Permanent posts with regular hours aren’t in as much abundance as they used to be, but that doesn’t have to be a negative. There is well-rewarded work out there, especially for those who are prepared to adjust, get ready for work, and demonstrate they’ve got in-demand skills.”

Help for accompanying partnersAs Sue Shortland points out on p8, employee support, including help for accompanying partners who want to pursue their existing career, or explore a new one, in their new location, can be a wise investment. Careers advice, CV writing, analysis of transferable skills, and interview preparation assistance, plus career-development strategies and coaching on the local jobs market, are critical to ensuring that the relocating partner’s career stays on track.

See our new website resource Fast Track Careers (www.profilelocations.co.uk/careers), which supports career change and transition for partners accompanying an employee on a relocation or international assignment.

Re:locate

Louise Whitson assesses changing global employment trends and their implications for partners accompanying an employee on a relocation or international assignment.

: INTERNATIONAL EMPLOYMENT WINTER 2012/13

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44

Those who attended Dr Mark Frederick’s session on becoming a strategic global-mobility leader, which was

moderated by Debbie Convery, global-mobility programme manager of forward-thinking Amazon.com, enjoyed an energising and enthusiastic presentation from a man who is obviously passionate about the subject and wants to see “global mobility given a seat at the talent-management table”.

But why is talent management so important? A recent McKinsey Quarterly, Making Talent a Strategic Priority, puts the case well, stating, “Companies need to view talent management as a business priority and … invest significant amounts of time in creating strategies that attract, motivate and retain talent.”

Mark Frederick gave his audience of international HR and global-mobility professionals a sound case to build on to fight their corner for a strategic global-mobility role, providing a comprehensive overview of the cycle of talent management and its close connection with global mobility. He argued that organisational culture should be at the centre of talent strategy, and that global assignments should share the same cycle.

He suggested that “global business success is increasingly about placing the most competent talent in global positions”. This is the innovation economy, which will be so important in turning around the wider economy. In order to stay relevant, Dr Frederick explained, “Global mobility needs to develop a more strategic role within companies that support innovation.” The good news, he felt, was that “global mobility is in the best position to identify and develop global talent”.

His coverage of assessment tools for global assignments was invaluable, and gave clear guidance on the range of tools available and their strategic use for those who want to push global mobility to the forefront of business decision-making. He also covered leadership development and intercultural competence, with more pragmatic insights on the relevant cultural tools to support international assignments. As he powerfully pointed out, “Global mobility and leadership development are increasingly looking for the same thing.”

How to get started on the road to becoming a strategic global-mobility leader? The first step is to do your research, check out some tools for the three major applications of self-selection, assignment decisions and intercultural competence development (coaching), and work out what is right for your organisation and purpose. See www.relocatemagazine.com for details of useful assessment tools.

Mark Frederick went on to tackle the often woefully neglected area of repatriation and talent retention. A quick straw poll of the audience to discover what sort of repatriation support was offered to expatriates was more heartening than perhaps the norm. He was probably speaking to an audience that was already converted, however.

You only have to highlight to your management team a few potent examples of the value repatriates add in order to make a really powerful case for talent retention in your organisation, and your strategic role in securing these.

Re:locate

Practical steps global mobility can take to create more value, from October’s Worldwide ERC Symposium in Washington DC.

: TALENT STRATEGY

KPMG’s Global Assignment Policies and Practices Survey 2012 revealed:• 31 per cent internal career planning and job placement

toward the end of the assignment• 29 per cent repatriation counselling at the end of

the assignment• 21 per cent preparation visit to the home country• 10 per cent formalised mentoring programme through

the assignment• 40 per cent none of the above

Mark Frederick’s top repatriate values to emphasise are:

• Foster innovation by providing different perspective on company processes• More capable of integrating company practices, given

their better view of the bigger company picture• Greater proficiency in leading and overseeing complex

markets and regions• Increased effectiveness in communicating with the

global workforce

To deliver your retention strategy, Dr Frederick recommends, you will need to:

• Fight “tactical short-termism”, as repatriation starts with selection• Assign a mentor prior to departure, and structure

regular discussions – this can be done in conjunction with leadership development• Prior to return, conduct strategic ‘what next?’

discussions, and set realistic expectations•Recognise results and experience gained• Offer a company reorientation session, to

communicate changes back home

Find out more about how to become a strategic-global mobility leader in the Spring 2013 issue of Re:locate, in which we will also have a special report on how the new technology, software, media and progressive industries handle international mobility and manage global teams.

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46 Re:locate : UK HOTSPOTS

Northern rivals

Leeds is sitting on the crest of a wave, with Olympics success just behind it and redevelopment poised to

transform the city centre yet again. Located at the foot of the beautiful Yorkshire Dales, and with major transport links to London, Leeds has long been a hub for the North of England. In 2011, its residents numbered just shy of 800,000, after a period of strong population growth.

Sport is still on the city’s mind after it produced Olympic medallists such as triathletes Alistair and Jonathan Brownlee, the world’s first Olympic women’s boxing gold medallist, Nicola Adams, and cyclist Lizzie Armistead. Leeds also played host to the immensely successful Chinese Olympic team – though not without some controversy after a visit to a Leeds-based business conference from the Dalai Lama.

Historically, Leeds’s feet were planted firmly in textiles, with printing, engineering and chemical manufacture coming later on. The decline of the clothing industry in the face of cheap foreign competition hurt the city, but in recent years it has emerged as a major centre for the financial and services sectors, while manufacturing has managed to retain a foothold. Tertiary industries such as retail, the legal sector, offices, call centres and media have all contributed to a high rate of economic growth in recent years.

While Leeds hasn’t been immune to the recession, Jonathan Morgan, MD of estate agent Morgans City Living, says, “Leeds has always been well positioned to deal with downturns, due largely to a broad mix of industries and economies – from a manufacturing sector which still represents 19 per cent of the local economy, to a powerful legal and professional services sector, two major teaching hospitals, two universities, and a culture of innovation and entrepreneurship.”

Strong transport links, primarily thanks to the Leeds-Liverpool Canal, helped the city’s initial growth through the industrial revolution. Today, the M1 and a busy railway hub link Leeds with London and the South, while a modest airport makes the city accessible to international visitors. Substantial amounts of redevelopment, driven by Leeds City Council, have helped the area shrug off its stodgy industrial image to become a cosmopolitan metropolis.

End of the development doldrumsProperty developments in the retail sector are, after a period of recession-driven inactivity, beginning to reshape the city centre. The first to open its doors will be the ambitious Trinity shopping centre. The project will pack 120 businesses into previously rundown premises that have been transformed into a futuristic vision of shopping and the services sector. At a time when a cloud of uncertainty hangs over retail, the £350 million project has attracted national attention for its success at pulling in big-ticket brands such as Cult, Hollister, Mango and Topshop, all of which will be anchored by Leeds-born Marks & Spencer.

While the city council’s view of development in central Leeds has not always precisely matched that of residents, the retail sector has been bullish in its approach to Trinity, without the need for significant discounting from owner Land Securities.

Jonathan Morgan says, “New office development has been in the doldrums for some time, but, with a shortage of grade A offices and a number of significant requirements now in the market, it seems that this may soon change. KPMG are likely to get planning for their new Leeds HQ at Sovereign Street, and this will represent the first new scheme of this sort for a number of years.”

Over the summer, the Leeds City Region Partnership (LCRP) announced a City Deal with the Government, aimed at boosting jobs and economic growth in the area. The deal includes £1 billion to improve public transport and road links (a move with the potential to generate 20,000 jobs in the medium term, according to LCRP), a further £400 million set aside to improve infrastructure across the region, and a push aimed at generating 15,000 new apprenticeships over four years.

The latest development from the initiative is a scheme designed to boost the region’s exports, with ‘export champions’ nominated to share expertise in targeting overseas markets. The ambitious goal is to eliminate the area’s £1 billion trade deficit and create a surplus of £1.6 billion by

Those long-standing northern rivals Manchester (venue for the CIPD Annual Conference & Exhibition) and Leeds continue to attract relocating individuals and companies. Mark Johnson examines the issues for relocatees and employers.

WINTER 2012/13

Leeds

47UK HOTSPOTS : Re:locate

2018. LCRP claims that the export initiative, alongside moves to grow inward-investment activity, could create as many as 7,400 jobs by 2018.

Jonathan Morgan says that the City Deal, along with improvements to the Trans Pennine rail link, a new John Lewis and super-fast broadband, “will mark a new era for the city, and there is a consensus that this confluence of major projects in such a short period of time will elevate Leeds to a new level, and bring with it further investment, lots of new jobs and a new-found confidence”.

Key sectors for relocation in Leeds include consulting, legal, pharmaceutical, banking and IT. A regional representative of BridgeStreet, which provides serviced apartments for professionals, told us, “The overall level has remained quite consistent in recent years, with projects outside Leeds coming to a conclusion just as city-centre ones begin to take off again.”

The spokesman noted, however, that larger projects had not attracted vast amounts of relocation. “The biggest projects in Leeds have used a lot of locally based companies in their development, so there has not been a corresponding surge of relocation into the area. There has been a growth in international relocations, though, with an increase of individuals and families from Asia and Australasia coming into Leeds in specialist areas – IT, education, medical, and so on – but not directly connected to city-centre developments.”

Clare Ace, director of corporate sales for SACO, which operates serviced apartments in both Leeds and Manchester, added that recent activity “has been very much centred around the legal markets”.

Manchester thrivingThe development of Manchester has paralleled that of Leeds. Formerly a manufacturing powerhouse, and still with strong activity in that sector, Manchester has evolved to have a service-led economy. In the Manchester Partnership’s recent State of the City report, IT, finance, professional and scientific activities, and business support services were all cited as strong activities for helping the city to respond to the current economic climate.

Manchester is home to the world-famous Manchester United and Manchester City football teams, and has a strong cultural – and particularly musical – legacy, having given the world bands such as The Smiths, Joy Division and Oasis.

Like Leeds, Manchester has announced a City Deal with the Government. The Greater Manchester Combined Authority has highlighted an initiative through which up to £1.2 billion spent on infrastructure will be paid back through a tax increment finance-style scheme. Also announced were a growth hub to support local businesses, and the creation of 6,000 new apprenticeships.

Perhaps the biggest development in the Manchester area over the last few years has been MediaCityUK. Based along the quayside, the development grew out of a major new centre for the BBC in the North. High-profile programming teams such as BBC Breakfast, Dragon’s Den, CBBC/CBeebies and BBC Sport are based at the centre, and the BBC expects the facilities ultimately to house some 2,300 staff. There has even been talk of a possible move to the site for BBC1 or BBC2.

“In general terms, the arrival of the BBC and the development of MediaCityUK have raised the profile of Manchester nationally, even though the BBC move was controversial and not welcomed by many staff,” comments Barbara Beeby, director of Beeby Relocation. While not all the

units and facilities have been taken, Ms Beeby says, “Alongside the BBC move, a good many creative and digital technology companies have relocated to, or set up in, Salford Quays. It is now a vibrant and dynamic area, with shops, restaurants, bars, and a thriving arts complex.” Other groups with bases there include ITV Granada, Satellite Information Services, and the University of Salford.

Says Barbara Beeby, “It has become a very popular place to live for young professionals of all kinds, including BBC staff, some of whom still commute between London and Manchester.”

Key sectors for relocationBeyond the strong media presence, key sectors for relocation include IT, law, construction, and telecommunications. A representative from BridgeStreet’s Manchester operation said that, alongside the expected growth in media relocations, the concert, leisure and sports market continues to expand. MediaCityUK is expected to continue drawing relocation activity through to 2016, though recession has affected project work coming to the area.

Clare Ace points out that central Manchester has not felt the same impact from MediaCityUK as Salford Quays. However, media makes up a significant part of the traffic SACO sees, along with production companies, IT, banking, manufacturing, legal and retail.

And if you had to choose between Leeds and Manchester as relocation capital of the north? According to BridgeStreet’s spokesman, “From a relocation perspective, Manchester attracts a far greater amount than Leeds, due to its size and business diversity.”

Don’t expect that to be the end of it, though.

WINTER 2012/13

Manchester

For more on UK relocation destinations, see www.relocatemagazine.com

Olympics fever gripped the nation this summer during the spectacularly successful London 2012 Olympic Games,

which not only helped to raise the profile of sport among the nation’s schoolchildren, but also brought about opportunities for international schools across the world supporting children of relocated families to find ways of taking part in the London Olympics experience.

But amidst the fanfare came the darker news that the Government had approved the sale of some of England’s school playing fields to plough much-needed funds back into state-financed schools. In another blow to the state education system, many national newspapers reported that the majority of our homegrown Olympic champions hailed from the UK’s top fee-paying schools.

How have England’s schools responded to the challenge laid down by the London 2012 Olympics Organising

Sporting chanceThe London 2012 Olympics have reignited the debate surrounding the desirability of competition, the value of sport in schools, and the selling-off of school playing fields. Rebecca Marriage considers these issues and the sports provision available in schools, both UK and international.

Committee to ‘inspire a generation’? Are government-funded school sporting facilities in such a poor state as the British press would have us believe, and what are families on the move to make of the options available to them and their children who have been inspired by our amazing summer of sport?

Importance of sport for relocating familiesFamilies relocating with children look for many things when deciding on a school. Provision of sporting facilities will be top of the list for many, not only because of the benefits that a rounded and richly varied education can bring, but also because of the local networking opportunities that participation in competitive sports can offer both the children and their parents.

In the UK, some of the very first international schools for expats were established with American families in mind, and

48 Re:locate : EDUCATION

THE AMERICAN SCHOOL IN ENGLAND

WINTER 2012/13

Families just know when a relocation works. Whether you are a mom or dad, toddler or teenager, HR or relocation professional, from Texas

or Tokyo, when all the pieces come together, it can deliver one of life’s most rewarding experiences. ACS understands the complex needs of

globally mobile families. We have partnered the relocation industry since 1967 to meet the many challenges that face international families.

Our campus-specific Admissions, Housing and Transport experts work closely with parent-assisted Welcome Teams, International Groups,

Parent/Teacher Organisations and Buddy programmes to create a smooth, seamless and happy transition. That is why each year literally

hundreds of families from more than 50 countries make ACS 'the' regional solution to their educational and lifestyle needs.

To find out more about us, and our world renowned programmes, please visit www.acs-schools.com Alternatively call either ACS Cobham +44 (0)1932 869744, ACS Egham +44 (0)1784 430611 or ACS Hillingdon +44 (0)1895 818402

ACS Schools are non-sectarian and co-educational (day and boarding) for students 2 to 18 years of age.

More than just a school

2864_2011_Relocate_RelomorethanHS_RUK_A4_4c_Layout 1 21/11/2012 11:22 Page 1


with sport forming an important part of American culture, it is no surprise that sporting provision in these schools came as a top priority. However, as international-school communities became increasingly multinational, that sporting provision evolved into an important part of the settling-in process for newly relocated families.

“With a history of welcoming families from around the world, international schools often have a sports programme that is particularly attuned to the wider needs of relocating families,” says Eddy Schlachter, sports manager at ACS Cobham International School, in Surrey. “[They] offer activities aimed at parents as well as their children. For example, the school might offer students a more diverse range of sports at a competitive level than other UK schools, such as baseball, basketball and softball, which gives students the chance to get into a familiar routine by picking sports they enjoyed playing in their home country.”

Sports provision in state schoolsHowever, with international-school fees being some of the highest in the UK, these examples of inspiring and varied sporting facilities do come at a price. And the sad fact is that, while state schools don’t come with the hefty price tag, they are unlikely to be in a position to rival such well-resourced privately funded institutions.

This issue was thrown into the spotlight during the summer, as it emerged that a disproportionate number of UK Olympic medallists had been privately educated, alongside the news that many state-school sportsgrounds and facilities were being sold to plough funds back into the coffers.

The reality is, around 7 per cent of children in the UK are privately educated, and yet 37 per cent of this year’s Team GB Olympic medallists attended independent schools. But although the figures point to a lack of provision for sport in state schools, Team GB’s overall performance this year was a far cry from the single gold medal won at the 1996 Atlanta Games. This summer, the team finished third in the medals table, with a total of 65 medals – 29 of which were gold – making national sporting heroes out of many high-profile state-educated athletes.

The news about the selling of state-school sports fields also seems less bleak than at first appeared. On closer inspection, it emerges that the facilities largely belonged to schools that had closed, or had become surplus owing to school mergers. One has even been leased by a private company to turn underused playing fields into an improved all-weather playing surface with a full-sized football and hockey pitch and a six-court indoor-tennis facility.

WINTER 2012/13

51EDUCATION : Re:locate

There is good news for sports funding, too. “The Government has provided £1 billion for youth sport,” said a spokesperson from the Department for Education. “We are spending £65 million to release a secondary PE teacher from timetable for one day a week to increase opportunities in competitive sport.”

Olympic motivationClearly, there is some work to be done, but evidence suggests that the London 2012 Games have brought about a step change in the way in which the nation views the importance of sporting achievement.

Sporting initiatives from private business and local groups are gathering momentum, hot on the heels of Team GB’s Olympics success. The School Games, for example, is a new competition for schoolchildren in England, funded by £128 million of National Lottery and government money and private sponsorship. According to a spokesperson, “The Games are designed to build on the magic of 2012 to enable every school and child to participate in competitive sport, including meaningful opportunities for disabled youngsters.”

Lloyds TSB is responsible for running the UK’s biggest school sport event, National School Sports Week, typically held at the end of June. Using the excitement and anticipation generated by the London 2012 Olympic and Paralympic Games, the week inspired young people to take part in more sport. Thousands of schools across the UK participated, holding opening and closing ceremonies, helping pupils to try a new Olympic and Paralympic sport, and organising inter- and intra-school competitions.

I love the fact that BSB has given me the opportunity to take part in a range of activities outside the academic programme, such as debating at the Model United Nations, speaking in the national finals of the Telenet BBC Public Speaking Awards and playing in the school orchestra.”Sam (School President, BSB)

For more information visit

www.britishschool.be

WINTER 2012/13


Communities working togetherLord Moynihan, former chairman of the British Olympic Association, feels strongly that whole communities should make imaginative use of good sporting facilities in schools in England. “State secondary schools with good sports facilities, as well as all independent schools, should be required to share their facilities and cooperate with the primary schools in their catchment areas,” he said. “For the independent schools, this could be part of the public-benefit requirement under the Charities Act.”

Tonbridge School, an independent day and boarding school for boys in Kent, did just that this summer by opening its doors to 1,300 local schoolchildren to take part in a day of sporting activities. As host to the Australian Olympic athletics team, the school also invited local children to meet, and put questions to, members of the team.

Sport at the heart of the international curriculum Keeping sport at the heart of the curriculum in state schools in England, and in independent and international schools around the world, is rising to the top of the agenda following the momentum created by the Olympics. Prime Minister David Cameron confirmed during the London 2012 Games that, as part of the Government’s wider national-curriculum reform, sport would remain a compulsory part of the curriculum for children of all ages.

The International Baccalaureate Organisation (IBO) has gone a step further, placing sport first and adapting its diploma programme around the needs of young athletes. Together with

the World Academy of Sport, the IBO launched a project at the Olympic Park this summer that will provide elite athletes across the world with the opportunity to gain the IB Diploma while advancing their sporting careers. The programme will offer young sportspeople the chance to study courses and content from the IB Diploma Programme, delivered flexibly over a three- or four-year period, to fit around their training schedules and travel commitments. Since September, the IBO has also been piloting a new Sports, Exercise and Health Science course as part of its diploma programme.

Many international schools supporting expatriate children around the world have also embraced the spirit of the Olympics. Schools using the International Primary Curriculum (IPC) took advantage of specially designed themed units of work this summer, and engaged in some imaginative Olympics-themed experiences.

Campion Junior School, a British-style international school in Athens, emphasised the link between the London Games and the first-ever Games hosted by the Greeks. This included sharing local Olympics connections with Cambridge International School, in England, and using this as a chance to look at the similarities and differences between the two countries, including an Olympic sports day, complete with opening ceremony.

The British International Primary School of Stockholm (BIPSS), in Sweden, took over the Stockholm Olympic Stadium to introduce its Olympics learning to the children. The stadium was built for the 1912 Olympic Games, and the British Embassy helped BIPSS to hire the location. The whole school participated in an Olympics opening ceremony,

WINTER 2012/13

InternationalCommunity School

I C Sicschool.co.uk

The International Community School is an independent school located in central London. We provide all three International Baccalaureate Programmes (Primary Years, Middle Years and Diploma), as well as, long term English Language Courses for students aged 3 - 18 years old.

The combination of our welcoming community, a focus on personalised learning, our innovative use of ICT and exciting Travel & Learn programmes, makes ICS an excellent choice for international students.

Realise your potential

Tel: 020 7935 1206 [email protected] www.icschool.co.uk www.skola.co.uk

International Baccalaureate Programmes and English Language Courses for 3 -18 year olds

53EDUCATION : Re:locate

which included a flag parade, the arrival of an Olympic torch, speeches, music, and sporting activities.

Janice Adams, IPC learning leader for BIPSS, remarked on the unique ability that an international school has to reflect the international nature of the Olympic Games. “We are a school with pupils from all over the world,” she said, “and our parade included representatives from 49 countries.”

Inspiring a generationDuring London’s Olympics bid, Lord Coe, chairman of the London 2012 Olympics Organising Committee, laid down the vision for the Games. “London’s vision is to reach young people all around the world,” he told the International Olympic Committee. “To connect them with the inspirational power of the Games. So they are inspired to choose sport.”

With local organisations and private businesses getting behind school sporting initiatives, and independent and international schools working together with local state schools to share facilities, opportunities for the nation’s future sporting heroes, and for children in international schools, appear to be growing.

However, not all schools will be in a position to take advantage of these opportunities, and the emphasis on the importance of school sport varies hugely between schools of all types, and, in some state schools, will rely on the support of community groups and volunteers.

Therefore, if parents are keen to pursue their children’s sporting ambitions, they should be advised to ask to see the facilities on offer, and to enquire about the sporting opportunities for their children and the sporting ethos of the school.

Fit for the future?One of the highlights of November’s CBI Conference was the launch of a new report First steps: a new approach for our schools. CBI president Sir Roger Carr called for businesses to engage with schools, to ensure economic growth and halt our slide down the international education-performance rankings.

“We want academic achievement blended with social skills – our students to be grounded and rounded, fit for purpose in a competitive world. We want British students to be the best,” Sir Roger said.

Re:locate puts education issues at the forefront of effective support for relocating families. Schooling is a top priority for parents, whether they are moving from London to Newcastle, or from Switzerland to Beijing.

For talent managers trying to fill critical skills gaps around the world, sourcing well-educated and fit-for-work young people at whatever education level is a priority. At the higher-education level, resolving immigration issues is paramount in attracting and retaining overseas students and feeding research and development across a range of industries if we are to compete on the international stage.

For all these reasons, the CBI’s initiative is to be commended, and we encourage all companies to consider the issues, join the debate, and get involved. You may be able to reach out more easily than you think via established contacts built up by talent-management, recruitment and HR mobility specialists.

WINTER 2012/13

Re:directory

Industry jobs at: http://jobs.relocatemagazine.com

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Lloyds TSB InternationalContact: Kevin Ballard

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employeebanking

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Association of Relocation Professionals (ARP)Contact: Tad Zurlinden

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Red RecruitContact: Caroline Seear

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360 RelocationsContact: Tony Squire

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Interdean International RelocationContact: Rob Lucas

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54 : DIRECTORYRe:locate WINTER 2012/13

Team RelocationsContact: Colin Atkins

Tel: +44 (0)20 8955 1312


Website: www.teamrelocations.com

Area: Worldwide

Weichert Relocation ResourcesContact: Andreas von Strachwitz

Tel: +44 (0)1293 813838


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Area: Worldwide

REmOVAlS AND STORAGE

Bishop’s MoveContact: Richard Hohler

Tel: +44 (0)800 616 425


Website: www.bishopsmove.com

Area: Global

Clockwork RemovalsContact: Peter Young

Tel: +44 (0)800 328 4166


Website: www.clockworkremovals.co.uk

Area: UK, Worldwide

DT Moving Contact: Tim Daniells

Tel: +44 (0)20 7622 4393


Website: www.dtmoving.com

Area: Worldwide

White & CoContact: Louis Spies

Tel: +44 (0)1489 774907


Website: www.whiteandcompany.co.uk

Area: UK

SCHOOlS

ACS International Schools Contact: Fergus Rose

Tel: +44 (0)1932 867251


Website: www.acs-england.co.uk

Area: London, South East

Dwight School LondonContact: Mrs V Rose

Tel: +44 (0)20 8920 0637


Website: www.dwightlondon.org

Area: North London

International Community SchoolContact: Matthew Cook

Tel: +44 (0)20 7402 0416


Website: www.icschool.co.uk

Area: Central London

International School of London (ISL) Group of Schools Contact: Heather Mulkey

Tel: +44 (0)1483 750 409


Website: www.islschools.org

Area: London, Surrey, Qatar

International School of MacaéContact: Leslie Anne da Mota

Tel: +55 (22) 2765 5199


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Area: Macaé, Rio de Janeiro, Brazil

Kent College CanterburyContact: The Registrar, Mrs Jayne Simpson

Tel: +44 (0)1227 813 981


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Area: South East

Kent College PemburyContact: Debbie Sainsbury

Tel: +44 (0)1892 822006


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SABIS International School UKContact: Deborah McAllister

Tel: + 44 (0)1225 891841


Website: www.sisuk-sabis.net

Area: Bath, UK

TASIS The American School in EnglandContact: Karen House

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The Apartment ServiceContact: Melanie Degand

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Area: UK & Worldwide

Hyde Park Residence

Contact: Jacqui Parker

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