Cigna-NFTC Survey Indicates Expatriates Want More from Their Employers This case discusses a recent survey conducted to uncover some of the challenges facing expatriates as they go on international assignments. The report emphasizes the gap between what multinationals offer to their expatriates and what these expatriates perceived as missing.1. Why is it so costly to employ expatriates in other countries?2. What are some of the major costs associated with expatriates?3. What are some important trends revealed by this survey?4. How do these trends compare to the report conducted in 2001?5. If you were the HR manager for a multinational, what would be your recommendations as to how to improve services offered to expatriates? In the 2001 survey, five percent of expats were from Asia, a number that has grown to 13 percent in the 2013 survey. In 2001, 63 percent of expats were from North America, down to 49 percent in 2013. Other major trends in expatassignments include the shift from Europe, where 43 percent of expats surveyed were assigned in 2001 versus 22 percent in 2013, and in Middle East/North Africa/Greater Arabia, where six percent were assigned in 2001 comparedwith 23 percent today.Where expats are assigned makes a significant difference in their experiences and perceptions. Satisfaction with their employers' efforts was lowest from expatriates on assignment in Sub-Saharan Africa, Middle East, and SouthAmerica and highest in Australia and Europe. Survey respondents noted the following priorities by their location:-Middle East and Sub-Saharan Africa: Medical preparedness tops the list-North and South America: Consultation regarding financial and tax consequences ranks much higher in importance in these regions-Central America and Sub-Saharan Africa: Assistance with schools is more critical-Asia and Middle East: Cross-cultural training ranks slightly higherExperience versus expectations also brings variation:-Central America and Middle East: These regions had the highest percentage of unmet expectations in relation to the quality of life-this dissatisfaction was more than double other regions-Australia and Europe: Highest satisfaction in quality of life category-Middle East and Sub-Saharan Africa: Highest amount of dissatisfaction related to impactthe family-North America: While overall 13 percent of respondents reported unmet expectations regarding their assignment benefits package, nearly double (21 percent) reported dissatisfaction in the United States and Canada"Survey results suggest many employers may be providing expatriates with services that adequately address the wider population, but not those on assignment in lesser developed countries," said Sheridan. "Enhanced understanding,awareness and flexibility are necessary when considering the complexity of global assignments. Customization is key, as a one-size-fits-all approach to developing packages for expatriates simply cannot provide a pathway to success inevery geography."According to a release, industry surveys of employers indicate they believe the most difficult countries for expat assignments include Brazil, Russia, India, China, and South Africa. Results from the Cigna-NFTC expatriate studyconfirm some difficulties in these regions, but also point out other key areas:-Middle East: High degree of dissatisfaction, higher importance ratings regarding several components (including services provided by employers, such as cultural training and health benefits)-Sub-Saharan Africa: In addition to South Africa, there are a number of other countries in the lower half of Africa where medical preparedness is a great concern and the need for school assistance is more critical-North America: The complexities of a number of issues (ease of finding a doctor, language issues, knowledge of the health care system, understanding of financial and tax consequences) have led to much lower satisfaction scores thanother regions-especially in the United States-which remains the most frequent country for expatriate assignments."Greater recognition of the challenges of being on assignment in the United States is vital. Navigating a complex health system, as well as developing an understanding of the financial and tax consequences of working in the U.S., allpresent considerable challenges to U.S.-bound expats. My personal experience as an expat has further driven home the crucial need for better preparation, guidance and support," Kenton said.The NFTC believes that these candid insights from corporate expats can prove valuable to all companies with globally mobile employees. "An enhanced understanding of how expats feel about their experiences should cause When asked open-ended questions regarding their experiences, expats frequently cited human resource-related issues."Given the integral role human resource professionals play in designing programs for expatriates, an enhanced awareness of the typical challenges and potential barriers to success for expatriates while they're on assignment is critical.The survey results indicate companies could benefit from elevating this group's understanding of the unique needs and concerns of this population, either through consultancy or hiring HR professionals with actual expatriateassignment experience," Sheridan said.Expatriates volunteered a list of specific concerns:-Lack of understanding - expatriates state many HR personnel have likely never experienced living internationally; therefore, they may have low awareness of the type of challenges expatriates face-Relocation - expatriates cite a lack of clear information regarding this process-Real estate market differences - HR representatives may not know about these differences-Responsiveness - expatriates in various industries point out delays in response time-Slower and or confusing processes, such as work permits-Mobility and Relocation Policy limitations-Cost of travel"Like most studies comparing and contrasting viewpoints of employers and their employees, there exists a gap that, if understood and addressed, can guide employers to make impactful decisions to better design and communicateassignment packages that more adeptly address the needs of their employees abroad and increase their satisfaction," Kenton said.Similar to the 2001 study, the "Expatriate Trends Study 2013" was conducted though a web survey instrument. No self-identifying information was captured, keeping all individual responses anonymous and confidential. This chosenmethod of anonymity encourages more candid feedback from respondents. Data Collection occurred by The Marketing Audit over eight weeks from August 2 to September 30, with a sample sizes of 1,511 in 140 countries and aconfidence rate of 95 percent, with margin of error at +/- 2.3 percent. Respondents were recruited through multiple channels, which included member companies of NFTC and their expatriate populations, clients of Cigna Global HealthBenefits, and other channels.The inaugural study, which took place in 2001, explored the views of both international employers and their expatriate employees-before, during, and after international assignments. Throughout this report, references to the overallfindings from the 2001 study explain how the climate for expats has evolved over the past decade. The 2001 study surveyed 143 human resources executives (representing the employer perspective) and 453 expatriates on assignmentin more than 70 countries around the world.Cigna Corp. is a global health service company dedicated to helping people improve their health, well-being and sense of security.More Information:http://www.cigna.comhttp://www.nftc.org

Note: “Since you have posted a question with multiple sub-parts, we will solve first three sub-…

Answered: Cigna-NFTC Survey Indicates Expatriates…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Cigna-NFTC Survey Indicates Expatriates Want More from Their Employers

This case discusses a recent survey conducted to uncover some of the challenges facing expatriates as they go on international assignments. The report emphasizes the gap between what multinationals offer to their expatriates and what these expatriates perceived as missing.

1. Why is it so costly to employ expatriates in other countries?

2. What are some of the major costs associated with expatriates?

3. What are some important trends revealed by this survey?

4. How do these trends compare to the report conducted in 2001?

5. If you were the HR manager for a multinational, what would be your recommendations as to how to improve services offered to expatriates?