Relocation

We have been watching the jobless number and macroeconomic trends with great care over the last several months. While the euphoria about the net rise in jobs announced at the end of April may not be indicative of a trend, many sectors are optimistic that hiring will soon increase.

This is in response to Relo Revival.

Managing in today's complex world has been made even more challenging due to global unrest and continuing economic uncertainty. In building and aligning successful cross-functional and multicultural teams on global projects, senior-level HR leaders must take a custom-tailored and nuanced approach.

International assignees are turning to social-networking sites designed specifically for expats to learn about their new surroundings and to make friends. Sounds good, but should HR encourage this practice?

Companies are reporting increases in domestic and international relocations, according to several studies and industry insiders. The recovering economy and booming emerging markets are playing key roles making companies mobile again.

Even with many global senior leaders looking in the rearview mirror after one of the worst recessions in history, many in developed and a few emerging economies still are adjusting their economic policies and outlooks.

The high cost of sending U.S.-based workers overseas is forcing relocation experts to focus more on local talent as well as selecting employees who are closer -- such as sending an Indian executive to manage an operation in Singapore. Some companies are even converting expats to local employees.

Even with projected double-digit executive salary increases, executive pay in India still lags far behind that in developed nations. Executives are also seeing cutbacks in perks as well as more pay being put at risk as more organizations adopt pay-for-performance plans. Many employees are reacting with resentment and uncertainty to the changes.

There are many business imperatives for using multiple regional-service centers in an outsourced HR environment, but establishing a variety of service centers can sharply multiply complexity, client risk and the burden of managing the outsourced relationship.

Despite the investment and opportunity corporations provide to international assignments, they too often devote far less attention and planning to the executive-repatriation process itself. That can be a costly mistake.

Internal HR departments in organizations around the world, and their parent companies, struggle with the idea of outsourcing any, or some, of their recruitment processes. This hesitation is understandable from an emotional standpoint, as the recruiting function is all about people -- a company's most important asset and, in many cases, a business differentiator.

Even as HR leaders ensure their employees in the Middle East are safe or are able to leave that region, other trouble spots remain dangerous for expatriates.

Distinct cultural norms -- such as the importance of "saving face" for Chinese workers -- coupled with language barriers make it tough on expat leaders, especially in Asia.

Given the stubborn unemployment rate of almost 10 percent, the sharp market erosion of 401(k) values, the rapid inflation in healthcare costs and the continuing slow growth of many of our major trading partners, HR executives could be excused for believing that resourcing and recruiting is no longer a first-tier priority.

With fewer women sent on international relocation assignments, companies may be losing out on a key tool for developing talented women into senior leaders.

The emergence of growing markets in the global business community may be serving to drive down the number of women overall who are sent on international relocation assignments.

With a labor force of more than 450 million workers, India represents tremendous opportunities for companies. And despite a rising pay structure, strong currency and high unemployment, setting up shop in India is still worth the effort and good for the bottom line if handled carefully and vigilantly.