Companies consider options to sending employees to work abroad
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Companies in the Nordic Countries are giving more consideration than before to whether or not to send employees on foreign assignments.
According to a survey by the auditing and consulting firm Ernst & Young, the trend is away from stints abroad lasting two or three years, in favour of shorter stays and more frequent business travel.
"The greatest reason is cutting costs. The total expenses of sending an employee abroad is three times higher than if he stayed at home", says Björn Anderssén of the Finnish office of Ernst & Young.
"It seems that in the future, the trend will be toward various kinds of commuting solutions and business travel. Families usually do not accompany the employee during short stays, and the employer does not need to arrange and pay for the children's school, for instance."
There is an increasing trend for employees to shuttle between a foreign assignment and the home base on a weekly basis.
However, spending a few days a week abroad, and flying back and forth every week can be stressful for an employee, and can lead to health problems.
"It is a good question, if short missions are ultimately cheaper than long ones. The travel and the flights also cost", Anderssén ponders.
The report indicates that companies in the Nordic Countries are increasingly sending employees to work in China, and also to Russia, the new EU countries, the United States, and Latin America. Africa remains low on the list as an area of potential economic growth worthy of opening branch offices.
The 262 companies responding to the survey were also asked if they had outsourced the administrative work related to sending employees abroad. Ten percent of Nordic companies said that they had, compared with 21% on the global scale.
In Finland, Nokia has outsourced the administration of its expatriate operations. Many other companies draw up the work contracts themselves, but use other companies for services such as cultural orientation and tax advice.
"Nordic companies take a fairly relaxed view of matters related to taxation and social security. Perhaps the thinking is that they are matters best left to the individual. In Anglo-Saxon countries the thinking is that a package arranged by the employer should include these elements", Anderssén says. Ernst & Young offers its corporate clients these kinds of services.
Companies involved in the survey were also asked what they felt was the greatest challenge of foreign assignments. Understanding local legislation was seen to be the most difficult issue in planning contracts.
The most challenging phase of a mission abroad was seen to be the return home. Previous studies have shown that the novelty and excitement of a foreign mission made it easier to deal with the difficulties, while returning to the old job back at home can sometimes be seen as frustrating.
Helsingin Sanomat
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| 15.9.2005 - TODAY |
 Companies consider options to sending employees to work abroad |
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