Relocate Global Asia Pacific, Summer 2014

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G L O B A L

LAUNCH ISSUE

ASIA PACIF IC

Re:locate July 2014

FOR HR, GLOBAL MANAGERS & RELOCATION PROFESSIONALS

MOBILITY POLICYIs flexibility the key?

TALENT MANAGEMENTChallenges and solutions for APAC

EMPLOYEE HEALTHManaging

and mitigating

risk

2 | Re:locate Asia Pacific | Summer 2014


Contents26

6

10

20

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NEWS, ANALYSIS & EVENTS4 Re:editor’s letter Fiona Murchie looks at what’s in store this issue.

14 Re:employment The latest crop of survey results, covering

everything from top APAC job locations to the HR ‘glass ceiling’ in Hong Kong.

HOT TOPIC6 Re:talent Challenges, and solutions, for multinationals

operating in emerging markets. And are flexible mobility policies the key to attracting and retaining the best talent?

GLOBAL MANAGEMENT16 Re:women leaders How companies across Asia Pacific are promoting

equality of opportunity.

20 Re:conference Hot topics and trends from Worldwide ERC’s

APAC summit.

22 Re:health Risks faced by workers in today’s global economy,

and how employers and employees can mitigate and manage them.

35 Re:immigration A snapshot of current regulations and enforcement

trends in the Asia Pacific region.

FEATURES10 Re:technology Managing, and motivating, future generations of

global leaders.

26 Re:Australia Challenges facing employers and those managing

international assignments, with contributions from professionals on the ground.

32 Re:value chain How this key business concept can be applied to the

relocation context.

POLICY & PRACTICE19 Re:local plus Top policy elements, key drivers

and learning points.

EMPLOYEE SUPPORT38 Re:education Schooling options in Asia Pacific, where long

waiting lists can affect relocating families.

43 Re:finance Exploring the varying cost of living for expats

across Asia Pacific.

44 Re:property Insights into Asia Pacific’s residential property and

serviced accommodation markets.


NE

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© 2014. 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 or any opinions expressed herein. ISSN 1743-9566.

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“ Welcome to the launch issue of Re:locate Global Asia Pacific

”

In this, the first full-length edition of our special APAC-focused digital magazine, we share with you the best in global mobility thinking and practice, to help organisations of all sizes to manage and retain talent successfully in any location.

Among other insights from around Asia Pacific, we bring you coverage of hot topics and trends from Worldwide ERC’s Shanghai conference, examine how international schools are responding to recent growth in the region, and explore talent management issues for multinational companies seeking fast growth in emerging markets.

Other features cover how organisations in Asia Pacific are promoting equality of opportunity for women, the region’s lively residential property and serviced accommodation scene, and the challenges facing those working with a new generation of tech-savvy workers.

Keep up-to-date with daily news and comment on the APAC region, and from around the world, via relocatemagazine.com, where you can also register to receive a free copy of our new Europe and Latin America digital magazines, out later this summer.

Please contact us if you have ideas for features and surveys, and let us know the industry sectors you would like us to cover, the challenges you face, and your burning issues. Watch out for news of exciting developments in the autumn, when Re:locate will be celebrating its tenth anniversary.

Fiona Murchie

Managing Editor

[email protected]

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Employee relocation without the culture shock. We’re already immersed in your next emerging market.Cartus is already at home in up-and-coming locales where businesses are finding new footholds. Because it’s important for your assignee to arrive with their feet on the ground, we’re their trusted guide for housing, schooling, and transportation. And that’s just for starters, We also provide expert language and cultural training to connect them with their new communities more quickly.

If you’re looking for information on new emerging markets, we probably already have what you need. Take a look at our videos and other tools by scanning the code below, or emailing us at [email protected].

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Multinational companies looking for quick growth in emerging markets face a host of talent management challenges. Chris Debner, executive director of human capital at global professional services firm EY, examines the most pressing of these, and suggests practical solutions.

RISING TO THE GLOBAL

TALENT CHALLENGE

HOT TOPIC


Global companies understand the need to develop their talented people internationally and prepare them for global leadership roles. Yet very few

have effective strategies and policies in place, despite the business case being clear-cut.

With economic power shifting to emerging economies, and Western companies requiring international leadership that is capable of driving overseas expansion and operating competitively in these foreign markets, multinationals that plan their future talent needs strategically and manage to offer development opportunities will benefit from long-term competitive advantage and growth.

They will also gain by attracting the best new employees, as well as retaining future top leaders.

EY’s recent Global Mobility Effectiveness Survey, however, highlighted the need for mobility executives to play more of a role in talent management and wider business objectives, instead of merely deploying services.

Nearly half of the respondents said that their company did not even have a global talent management agenda. Mobility should be a tool that enhances the talent pool, not simply an easy way of filling a vacancy without any strategic insight.

The majority of mobility professionals are either on the outside, struggling to understand their future role, or too busy with operational day-to-day tasks to elevate

their role. With the globalisation of markets, however, comes the need to have talent that understands, relates to, and can compete in diverse markets. The function must be connected or integrated with the talent management team, combining their specialist skillsets to improve the retention and development of top talent and potential future leadership.

The first crucial step in the process is to identify top talent and its needs. Globally, among the young ‘high potentials’, Generation Y already forms the majority of the talent pool. By 2020, it is expected to form at least half of the global workforce. If companies do not provide what these workers

value most, then developmental assignments are not going to deliver value or cost-effectiveness. For Generation Y, the world has no boundaries and it is experience, rather than monetary incentives, that matters. They are actively looking for opportunities, while many have already obtained international experience during their studies or traineeships abroad.

Global talent management also means looking for talent in emerging markets and not merely in the home markets. It is therefore necessary to focus on career and related mobility opportunities for employees in markets such as India or Malaysia, where a well-educated workforce is waiting to be included in the talent management process.

Business line managers and leaders should, first and foremost, be held accountable for identifying and developing high potentials and implementing a companywide talent management strategy. Cooperation between HR (recruitment, talent management, compensation and benefits, business partners, global mobility) and business unit leaders is crucial for a successful implementation of developmental assignments.

This should also involve developing the right processes and using joint employee databases and tools, as well as setting joint measurable goals and KPIs. For this, companies should focus on long-term return on investment (ROI) instead of short-term assignment relocation costs.

Of the senior mobility executives interviewed for the Global Mobility Effectiveness Survey, 78 per cent reported that their mobility function did not measure ROI. This is a worrying statistic, to say the least.

There is no doubt that the global mobility function has a lot of strategic knowledge and skills that often remain unused. For companies to benefit from emerging market growth in the future, more strategic cooperation with business, talent management, tax and legal departments is needed, as well as creativity in responding to a rapidly changing business environment.

TALENT CHALLENGE

HOT TOPIC



As the debate about the differences between today’s younger generation of globally mobile employees and their older colleagues continues,

Emma Trafford, head of client services at international relocation company Robinsons, considers whether a mobility policy that is flexible enough to

embrace all generations is the key to recruiting and retaining the best talent.

MOBILITY POLICY

Embracing the generations?

In recent years, there has been increasing debate around the differences between Generation Y and Generation X employees, and about the impact these differences

can have on the way in which an organisation designs and delivers its global mobility policy.

Many clients ask me how they can create an effective global mobility policy that addresses the needs of Generation Y employees – but is this generation really so unique that it requires its own tailored policy?

Stereotypically, the Generation Y employee is perceived as a technology-savvy social networker with a short attention span, who multitasks to create instant shortcuts through instant messaging, web surfing and texting. These employees are attracted to work environments that offer flexibility and fun work opportunities, but with a thinly-spread knowledge base. They rely very much on technology and the web to find answers and achieve results.

In comparison, Generation X was the first generation to grow up with computers and mobile phones. Consequently, employees of this generation are technology-proficient, independent and resourceful people who achieve results using a foundation of experience or through business contacts and networks, yet often have a mistrust of institutions and bureaucracy.

Generation Y is usually seen as part of the ‘always connected’ generation, blending connections between personal life and work, whereas Generation X employees tend to be more linear in their communication style, making a

distinction between workplace and personal communication.

However, is it really fair to say that the whole of Generation Y communicates using multiple platforms, or that this ‘connected communication’ style is not found among Generation X employees? In the context of a global mobility policy, do these differences really necessitate a generation-specific policy?

When we look at some of the world’s industry-leading brands, such as Apple, Google or Amazon, they are often regarded as Generation Y brands, yet in reality the majority of them transcend three generations, and many were founded, directed and managed by Generation X – and, in the case of Apple, a Baby Boomer.

In addition, when we examine the use of social media applications such as Twitter, Skype, Viber and Facetime, it is by no means exclusive to Generation Y. In fact, when you look at the percentage of internet users who use Twitter, 26 per cent of 25- to 34-year-olds are signed up, compared with 33 per cent of 34- to 44-year-olds (source: Kinetic, Moving Minds Panel, 6 March 2013).

Needs-based versus generation-based

What does this mean in relation to designing and delivering a global mobility policy and supporting a candidate on assignment? As renowned psychologist Maslow outlined in his Hierarchy of Needs, our actions are often motivated by meeting certain needs.

HOT TOPIC


We all start with basic needs such as food, water and sleep. Once these are met, we move on to more advanced needs, such as safety and security, and then on to more psychological and social needs, such as friendship and love.

So although Generation Y and Generation X employees may be at different stages of this hierarchy, their needs are ultimately the same when designing and delivering a mobility policy.

Accommodation requirements

Looking at accommodation needs, for example: on any assignment, the location or standard of accommodation may vary from candidate to candidate, but these requirements are needs-based, not generation-based. A flexible policy provision could provide all employees with the option to spend an allocated amount on accommodation or have cash back if they find cheaper accommodation below the budgeted allowance.

Relationships, such as friendships, romantic attachments and families, are another key need to consider. Many individuals – whatever their generation – now have friends and family spread across the world, so provisions such as home leave should be reconsidered, to ensure that employees can maintain these relationships.

Companies may consider offering a cash alternative rather than a ticketed airfare, to allow the individual to decide where they take leave or holiday, ensuring that social and family networks are maintained.

As candidates progress, they will look to receive reward and recognition, and employers face the challenge of how to manage this at a global level, ensuring that the international workforce is not forgotten when assigned overseas.

Although perceptions again suggest that Generation Y is needier when it comes to feedback, all employees want recognition, and feedback is very individual. Historically, mobility policies have often been poor at providing any real

substance to the recognition process during the assignment, and often refer to the employee’s home-country appraisal process.

In order to maintain a global talent pool, serious consideration should be given to structuring a mobility policy that references the ongoing reward and recognition process.

As employees become established in the assignment location and fulfil their esteem needs, they start to look for self-actualisation through an achievement of all the needs in lower levels of the hierarchy.

So how do we ensure employees continue to feel fulfilled in their assignments, and how do we capture this in the mobility policy? Especially for Generation Y, who is perceived to be a disloyal employee who will jump ship at the end of the assignment if he or she doesn’t reach self-actualisation!

The reality is that, generation aside, if you reward and recognise any employee and help them fulfil their potential, they will be loyal to you as an employer and won’t look to leave for the next best thing. A robust mobility policy, therefore, needs to address how the organisation can support the employee in job fulfilment, not just in the assignment location but addressing their needs post-repatriation to ensure their next move continues to fulfil their needs.

Embrace all generations

In conclusion, despite the stereotypical differences between Generation X and Generation Y and the impact these could have on international assignments, would it not be wise to develop a policy flexible enough to embrace all generations?

Yes, you may need to make some assumptions or stereotypical judgements in order to set the mobility policy boundaries, but by breaking out of rigid policy provisions, you can cater for employees’ desire to take control of their assignments, which should ultimately help to attract and retain the best talent.

SECTION HEADINGTECHNOLOGY

Are you ready?DIGITALNATIVES

TECHNOLOGY

With talent shortages affecting profitability, according to PwC’s annual survey of CEOs, forward-thinking organisations are very aware

of the role technology can play in engaging employees across multiple generations.

The rise of social media reinforces the desire for instant

access to knowledge and communities in the workplace, as well as at home. But just as companies are getting comfortable with managing and relocating the Millennials, the Digital Natives have arrived on the scene. Is it all change for all demographics, or simply a case of being adaptable and using a step-by-step approach?

A recent survey revealed that leading companies found segmentation very effective in managing the varying needs of a multigenerational workforce. We set the scene and start to explore different approaches to managing future generations of global leaders.



Meet the Digital Natives

At the Worldwide ERC conference in Shanghai, Scott Bales provided a fascinating insight into the world of ‘Digital Natives’ – those born after 1992. A technology guru in the cutting-edge digital and mobile arena, he was chief mobile officer for Moven, the world’s first cardless bank.

Digital Natives are a generation born into digital technology. While individuals from older generations recall organising, planning and interacting with one another without mobile devices, computers or the Internet, Digital Natives have been using these technologies since birth – leaving them with no affiliations to the ‘old days’.

“They are the same, but different to previous generations. Where they differ puts them at a massive advantage over their elders, as they naturally master the mindset to leverage human elements through digital,” Scott Bales explained.

The impact on organisations and those managing global teams will be enormous, and this thought-provoking session was well received by an audience eager to understand how to support future generations of mobile employees.

As citizens, employees, employers and consumers, we will all be affected by the tech generation joining us in the workplace, being consumers of goods and services, and as citizens influencing government and policy at local, national and international level.

We know the mobility industry and the organisations it supports are often addressing how to manage five generations of employees. Providing relevant relocation services and policies for Generations X and Y is already very much on the radar, with innovative new packages and delivery methods evolving all the time.

The pace of change is one of the challenges. At home, we often use mobile phones or devices and technology that are far superior to those provided in the workplace. This is a frustration for all, and particularly the younger generations.

As Scott Bales explained, “In a world where consumer technology has overtaken and excelled well beyond that of the enterprise, employees struggle to grasp why corporate technology, policies and controls prevent them from unleashing the potential of technology in the very place they are paid to be productive, the workplace.”

In the relocation context, there is often a mismatch between the mastery of technology that gives a clear advantage in terms of accessing information instantly, but there is also the lack of knowledge and understanding, which can lead the inexperienced into potential professional and personal danger. As Scott Bales put it, “Digital Natives are in search of ‘Google culture’ in the workplace.”

But seasoned HR, relocation management companies and destination service providers know all too well the pitfalls that can lie ahead. Tips for moving things forward include creating experiences, not policies. Engaging with ‘the front line’ is recommended. By finding a problem you are passionate about, you will break through boundaries, as

the power of innovation can be phenomenal. Find yourself a digital mentor and harness their expertise, and in return a wise head with first-hand experience can impart ideas and perspective to interns and management trainees. One step at a time is also a good policy.

This is something we at Re:locate can help facilitate, by connecting those who have a clear understanding of Digital Natives with our readership.

Scott Bales cited the growing trend for a new workplace culture where forward-thinking companies allow employees to bring their own devices to work. This enables them to manage time effectively and be more efficient.

As he explained, “Digital Natives have an inherent understanding of digital technologies. They are part of a tech-savvy generation at the forefront of technological progress, and they want to be connected when they wish, from anywhere.”

He highlighted that Digital Natives “want a flexible environment where they can have more avenues to be creative, to lead, and to share their knowledge without prejudice. They no longer believe in bureaucracy, but instead prefer a much flatter hierarchy.”

However, in an increasingly compliant world, where global companies are facing ever-more-complex regulation, how can this be resolved?

“It’s time for organisations to wake up. The Digital Natives’ generation is coming, and their needs will push the boundaries of your organisation,” said Scott Bales.

Millennial priorities revealed

Ashridge Business School has produced a new report, The Millennial Compass, on behalf of the MSL Group. The research confirms that Millennials are focused on achieving through personal networks and technology, having a good work-life balance, and getting high levels of support from their managers.

They don’t want to be tied to an organisation, a timetable or a hierarchy, and they’d rather avoid the stress they see their senior leaders shouldering. They may lack some of their predecessors’ relationship, communication and analysis skills, but are confident in their abilities to run business in a new way.

A total of 1,293 Millennial employees from Brazil, China, France, India, the UK and the USA responded to the survey. The study found that what was important to them in their working lives varied by country, but several key findings emerged.

Despite popular conceptions, the majority of Millennials surveyed, in all countries, described themselves as more ambitious than not. However, the report suggests that, as many employers have already discovered, “Loyalty doesn’t appear to be a particularly strong work value for Millennials. On average, 30 per cent of those surveyed worldwide intend to leave their organisations in the next year. Nearly half

TECHNOLOGY

TECHNOLOGY

say they plan to depart after two years, leaving only 57 per cent still working for the organisations they’re with today.”

This adds fuel to the argument in favour of aligning talent management with global mobility. There are also warning signs ahead for companies wanting to develop global leaders. As the report states, “While they have a strong desire for work-life balance, Millennials seem to be closer to their immediate families and friends than ever before. Even though they travel virtually in and out of their comfort zones all the time, they’re less eager to make a physical move. These trends could impact the future of international business as well as Millennials themselves, who may miss key career opportunities.”

This evidence backs up the experience of the APAC-based HR, talent and mobility specialists we reported on last year, who were struggling to persuade Chinese high-potentials to go on assignment, whether in their own country, the APAC region, or further afield.

How Millennials see their relationship with their boss is also fascinating, and it is no wonder that organisations are anxious about the implications of managing this generation Says the Ashridge report, “When asked about the role their manager currently plays, most survey respondents chose ‘friend’. This answer ranked first in the USA, the UK and Brazil, second in China, and third in India. In France, Millennials see their boss as a peer.”

It was also clear that Millennials with younger bosses felt more engaged. Youth appears to motivate youth, with the report saying, “Millennials with younger (Generation X and Millennial) managers believe their skills are better utilised than those whose managers are from the Baby Boom generation.

“To demonstrate this point, Millennials in India are way ahead of other countries in believing their organisation harnesses their talents (75 per cent agree). China is second, at 63 per cent. Correspondingly, Millennials in these countries have the highest percentage of young managers.”

Jive talking

The Ashridge research seems to confirm what US software developer Jive has predicted with the introduction of its ‘enterprise collaboration’ software platform, designed to capture the enthusiasm of both Millennials and savvy social-media enthusiasts of all generations.

With echoes of the momentum to bring your own technology to work mentioned by Scott Bales, the platform gives large global players the ability to offer a flat structure, manage talent, drive innovation and keep their workforces, especially the young, engaged, motivated and connected, wherever they in the world.

As Matt Tucker, Jive’s chief technical officer and co-founder, put it at a recent seminar to promote the company’s expansion in Europe, “People want better, simpler ways of getting work done.” This was also one of the drivers behind

the company’s announcement of a partnership with Cisco, to enable connection in real time via WebEx meeting, chat or a voice call, without leaving the Jive platform.

A powerful case study from Kim England, head of internal community and collaboration at Pearson, which employs 40,000 employees across 70+ countries, illustrated the power of the Pearson family and its employer brand in retaining a valued talent via Neo, its customised Jive platform.

The system was quick to roll out, starting with 150 people in November 2011. This had increased to 18,000 users by the launch in March 2012. Kim England explained, “The people who came in early built the purpose. Later, as others saw how to use the platform and its benefits, even the cynical were converted. There was engagement from the start, with teams of ‘champions’ helping to roll out and build up the community.”

Ms England admitted that this took a lot of thought and planning, which had really paid off by utilising a combination of technology and human connection. Now, there was a sense of community around Neo, which was “how people got their job done”, but it also provided lots of scope for conversations and knowledge sharing at all levels, as well as leads for customers and research and development. It has also proved a useful tool for helping to get new products to market.

As Kim England said, “People feel part of the family; it’s not all about the money.” Her top tip was to ensure engagement by leadership from the top. Because Neo enables transparency, there is instant feedback from management, which inspires a different, better and empowered workforce that is also diverse and integrated.

In Ms England’s experience, the biggest hurdle to adoption was middle management, as they needed hard evidence that Neo worked. This was where patience, training and a steady approach had paid dividends.

Supporting the business case

Deepa Ramesh, talent manager for Millward Brown, a global brands and research agency with 88 offices in 58 countries, also extolled the virtues of the platform, which gave them the cutting edge they needed to drive creativity and share knowledge and intellectual property.

Millward Brown’s platform, Greenhouse, supported the business case for social media with businesses, customers, partners and employees. The firm’s challenge was the huge amount of knowledge it owned, which it needed to share globally.

Greenhouse has given Millward Brown a one-stop knowledge solution and improved community. Solving problems through knowledge sharing, cross-group and department collaboration, brainstorming, new thinking, and ideas which fuel thought leadership are just some of the ways in which the company uses it. Other benefits are in onboarding, launching campaigns and internal communications.



As Elisa Steele, VP of strategy and marketing at Jive, pointed out, brands that engage with their customer community can command a 23 per cent premium, as clients are looking to work with companies that invest in their people and culture.

Mobility policy: is flexibility the key?

On the other side of the coin, Emma Trafford, head of client services at international relocation firm Robinsons, challenges both the stereotypes that exist for Generation X and Generation Y and some of the generalisations made when considering mobility policies (see p10).

She argues that, in fact, many of Generation X and Generation Y’s needs are the same as those of other relocating employees, and it’s the way in which those needs are met that should be tailored, through things like communication style, feedback and recognition.

Surely, then, Ms Trafford says, it would be better for firms to develop policies flexible enough to embrace all generations? Although you may need to make some assumptions in order to set the mobility policy boundaries, by breaking out of rigid policy provisions you can cater for employees’ desire to take control of their assignment. This should ultimately help to attract and retain the best talent.

It is a good point, and one that needs to be aired. Millennials and Digital Natives are going to have to coexist with other generations of colleagues for some time to come, so equitable solutions for all are needed, and the more each can appreciate the other’s viewpoint, the better. The advancement of technology, with a step-by-step approach, must surely be the way forward.

The global mobility community is certainly up for the challenge, and shows the flexibility which will ultimately lead to success. Technology, after all, is just another culture.

Becoming a successful digital enterprise

Meanwhile, a McKinsey and Company Insight urges companies to stop experimenting with digital and commit to transforming themselves into full digital businesses with seven habits that successful digital enterprises share. These range from being “unreasonably aspirational” to ring-fencing and cultivating talent. “Digital talent must be nurtured differently, with its own working patterns, sandbox and tools,” says the report.

As part of McKinsey’s growing e-commerce division in Silicon Valley, an ‘idea incubator’ helped increase online revenues by 30 per cent in 2013, outpacing Amazon’s rate of growth. This is exactly the kind of performance that a social-media-style platform, such as the Jive example, can help to nurture.

McKinsey’s seven habits include continuous delivery and improvement and agility, supported by big-data analytics. Integrating data sources into a single system that is accessible to everyone in the organisation will really

improve the speed of innovation, it claims.

As we know, across the global mobility arena there is a big drive for analytics and a joined-up approach to retrieving and sharing data. Deloitte’s winning entry for Re:locate ’s Technological Innovation in Relocation award (see p42) is a breakthrough that HR, global managers and their service providers have been waiting for.

In March, a report from Deloitte University Press highlighted that “too much access to information” had turned us into “overwhelmed” employees. Nearly every company sees this phenomenon as a challenge to performance, but struggles to handle it. Information overload and the always-connected 24/7 work environment are undermining productivity and contributing to low employee engagement.

The Deloitte report showed that 65 per cent of executives rated the overwhelmed employee as an ‘urgent’ or ‘important’ trend, while 44 per cent said that they were ‘not ready’ to deal with it. It concluded, “HR has an opportunity to lead efforts to manage the pervasive communications practices that overwhelm employees, simplify the work environment, create more flexible work standards, and teach managers and workers how to prioritise efforts.”

“Simplifying business and HR systems and making them easier to use,” the report said, “can also make employees more productive. People no longer want more features in their enterprise software; they want ‘one click’ or ‘one swipe’ transactions. We call this the ‘consumerisation’ of corporate systems – which really amounts to valuing the time of a company’s employees as much as it respects the time of its customers.”

Its authors added, “Studies show that people check their mobile devices up to 150 times every day. Yet despite employees being always on and constantly connected, most companies have not figured out how to make information easy to find. In fact, nearly three-quarters (72 per cent) of employees have told us they still cannot find the information they need within their company’s information systems.”

In Deloitte’s most recent research on HR systems, ease of use and user interface integration were rated as the most important factors in driving user adoption. The survey also highlighted the urgent need to create more time to think and produce.

If this all sounds familiar, that is a good thing. As ever, there are no easy answers, but the good news is that there are options out there – and, encouragingly, many to suit the complexities of managing global teams.

To keep up-to-date with the latest developments or register your interest in attending a Re:locate online technology showcase, visit relocatemagazine.com/technology


EMPLOYMENT

LEARN MANDARIN

to land a banking job in Singapore or Hong Kong

British bankers who hope to be shortlisted for jobs in Hong Kong or Singapore may well face disappointment unless they have Mandarin language skills.

This is the finding of Astbury Marsden, a financial services recruitment firm with a background in the region. It notes that the demand for bankers who speak Mandarin has risen sharply as the overall pool of new jobs has shrunk

Mark O’Reilly, managing director of Astbury Marsden Asia Pacific, says, “For British expat bankers, having the technical skills and experience is no longer enough. If your role in a bank or as a fund manager is to deal with a mainland Chinese client, you are now expected to be fluent in Mandarin.”

Demand for Mandarin speakers has been driven by the growing importance of mainland Chinese corporate and high-net-worth private clients.

Mr O’Reilly says that 40 per cent of the Hong Kong-based roles Astbury Marsden has handled during the last quarter have required Mandarin skills, and that the percentage is increasing.

There are, however, sectors of the Hong Kong market in which fluency in Mandarin is not yet essential.

“In general, more senior-level appointees are not yet expected to speak Mandarin, as candidates at VP and director level are seen as adding value through other skills and experience,” says Mark O’Reilly.

“Unfortunately, for more junior banking staff, the linguistic demands are becoming more acute.”

According to Astbury Marsden’s research, the sectors in which the ability to speak Mandarin is of high importance are M&A, management consultancy (dealing with Chinese clients), private banking, corporate finance, and credit risk

In the compliance, management consultancy (dealing with English-speaking clients), trading, sales (to US and other Western institutions) and product control sectors, the ability to speak Mandarin is not essential.

Fluency in Mandarin is becoming an essential skill for many financial-sector workers seeking new jobs in Hong Kong and Singapore.

For culture and language news and articles, visit relocatemagazine.com/ culture-language

Research carried out by Middlesex University and City University of Hong Kong shows how gender diversity patterns play out in HR roles in Hong

Kong and the UK, with women taking up to three times more entry-level roles but significantly under-represented at senior levels.

Based on a representative sample of 983 members of the Hong Kong Institute of Human Resource Management and the UK’s Chartered Institute of Personnel and Development, the study found that, while gender balance was generally more favourable among Hong Kong HR practitioners than among UK practitioners, a similar degree of gender imbalance persisted at executive levels.

Comparing UK men and women’s HR roles among the sample, the research found that 14 per cent of women and 4 per cent of men reported being in a generalist role, with most women saying they were in a managerial role. Yet compared with 19 per cent of women, 38 per cent of men reported being at executive level.

Among the Hong Kong-based respondents, gender diversity was more balanced at generalist and managerial levels than in the UK. Around 18 per cent of men and women recorded their role as generalist.

Mirroring the UK pattern, female participants in Hong Kong were most likely to record their role as HR manager (47 per cent), compared with fewer than 40 per cent of men.

However, while around 30 per cent of male Hong Kong-based respondents reported working at HR executive level, just 18 per cent of women did so – echoing the imbalance at this level in the UK.

If they were to be offered the chance of a job transfer anywhere in Asia Pacific, most HR and relocation professionals would choose Singapore, according to a

survey conducted by Cartus at the Worldwide ERC APAC conference in Shanghai.

When asked, “If you could accept a job transfer anywhere in Asia, where would it be?”, Singapore, at 29 per cent, beat Hong Kong (26 per cent), and China (19 per cent).

Japan (10 per cent), Thailand (5 per cent) and Australia (4 per cent) completed the top six locations.

HR professionals overwhelmingly selected the United States (37 per cent) as the top country worldwide for a dream job transfer.

In January, respondents to a Cartus survey named New York City as their dream job location in the US.

Perhaps even more important than money is access to communications, according to respondents, who were asked,

“If you could only pack one item to go on your assignment, what would it be?”

The top four responses were:

• Mobile phone (22 per cent)

• Tablet (19 per cent)

• Laptop/PC (17 per cent)

• Books and credit cards (tied: 6 per cent)


EMPLOYMENT

SINGAPORE ‘ASIA’S NO 1 LOCATION FOR DREAM JOB TRANSFER’

INTERNATIONAL RESEARCH ILLUMINATES HR’S GLASS CEILING

WOMEN LEADERS


The story of women’s work is remarkably similar the world over. In the high-growth-potential, newly emerged economies of Asia, just as in Western

economies, the female talent pipeline slows to a relative trickle once family responsibilities take hold.

The reasons are manifold, interconnected and, again, strikingly similar everywhere, taking in pay, industry sector, perceptions, culture and social expectations.

Global initiatives like the ongoing United Nations (UN) campaigns and International Women’s Day keep the issue high on the agenda and provide a springboard for national, regional and corporate initiatives.

Employers are also taking the lead, recognising the widely researched and rehearsed business case that better business decisions are made by more diverse and gender-balanced boards.

Gender balance benchmarking

As in the longer-established emerged economies of Europe and North America, companies in newly emerged economies are struggling to harness the benefits of full diversity in

the workplace. This could have negative consequences for long-term growth and productivity.

Benchmarking data from the UN’s quinquennial report into women’s social, economic and political roles highlights the scale of the issue, globally and across the major Asian economies – home to many of the world’s fastest- growing economies.

The figures indicate where male and female labour-force participation and representation at management level diverge – and where gender pay gaps take hold. They also pinpoint where companies looking to enhance gender balance in the workplace can look to mitigate the trends and build sustainability into the business.

A snapshot of Asia

According to the UN’s Statistics Division, China, Malaysia and Hong Kong have some of Asia’s highest female participation rates (see Table 1, p8) across the region. These three countries also take the top spots for the highest proportions of female leaders in junior, middle and senior management respectively.

Across the Asian growth powerhouses, high female participation rates are vital to ongoing growth and productivity gains. How are companies building bench strength

and promoting equality of opportunity for women? Ruth Holmes investigates.

WOMEN MEAN

BUSINESSLeadership diversity in newly

emerged Asian economies



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By contrast, at around 29 per cent, India has one of the lowest female participation rates in Asia. Women here also make up a small minority of people in corporate leadership roles, with just 9 per cent of those in senior management being female.

Despite the differences in participation and attainment rates, all these fast-growing Asian economies follow a broadly similar pattern to many established emerged economies.

The proportion of women in junior, middle and senior management declines with seniority. Even for top performer Malaysia, the balance between men and women swings from +3 percentage points at junior management level to -21 percentage points at senior level.

Engineering a solution: Essar Group’s approach

Indian multinational infrastructure, telecoms, mining and energy conglomerate Essar Group is responding to the diversity challenge.

Employing over 75,000 staff in more than 25 countries, its businesses rely on highly qualified people with in-demand skills in technical and engineering disciplines.

Recognising the need to reinforce the talent pipeline and the potential longevity of new engineering graduates’ careers, the group is making a concerted effort to encourage the retention of female graduate workers.

At April’s BOC HR Emerging Markets Conference in London, Mumbai-based Dr Sujaya Banerjee, Essar’s chief talent officer and senior vice-president for HR, spoke with passion and insight about the issues and the company’s approach. She described how Essar is mixing high-impact practical interventions, including mentoring of high-potential women, with education initiatives designed to shift attitudes around gender in the workplace.

“Large numbers of women are coming through the professional ranks and training, but not staying to reach middle and senior levels. The challenge is to get them to grow into senior roles,” Dr Banerjee explained.

The potential challenges

Sujaya Banerjee outlined the social, filial and infrastructure challenges specific to India, which together stymie attempts to rebalance female retention rates and representation at


encompasses a range of issues, including assertiveness and safety, managing career transitions with filial challenges, women in middle and senior management roles, building a personal brand for women leaders, and networking effectively within the organisation.

The April 2013 edition of Essence, the company’s glossy corporate magazine, was dedicated to women working at Essar, showcasing their success stories and underlining their important contribution to the company’s success. One particularly high-impact success, and a measure of how seriously Essar takes gender diversity, is that it now has a power plant staffed and run entirely by women. This reinforces the message that women can lead, and provides important skills, experience and networking opportunities for up-and-coming female leaders.

As a result of this strategy, 27 per cent of junior to middle managers at Essar are now female, securing a more gender-balanced talent pipeline into senior roles.

Reflecting on the success, Dr Banerjee concluded, “What’s most important is the dialogue that we are encouraging in the organisation among both men and women, to allow women to take themselves more seriously and have the ambition.

“This is a common challenge most emerging markets are dealing with more and more. People need the support around it, and the resources. HR and learning and development professionals have an important role to play in creating the culture for this, and for people to be retained, and at Essar we have a great record to show for our ability to retain them.”

Table 1: Percentage of women in workforce – Asia snapshot

senior levels. “Many professional jobs are in urban areas. Often, working parents have no families locally to support them. Crêche facilities are also not viewed positively, so there is no blueprint or infrastructure for working families.

“The problem is also social in nature, around the traditional expectations of women and the role they are expected to play. In Asia, in particular, there is an expectation on the part of parents that their children will look after them in their old age. Often, this onus falls on women and limits their ability to take up career opportunities.

“High-potential women in India are also concerned about the personal sacrifices they may be making in terms of forgoing having children for their career, and the role of their parents in decision-making,” said Dr Banerjee.

Despite this, she continued, “There is great enthusiasm among young female graduates to work, including in our remote plants and refineries in challenging locations.”

“We take great care with the onboarding and induction process, emphasising personal safety and including parents, to reassure them that their daughters are very well taken care of. But often, just as we have invested in all that, female graduates are getting married and moving on for personal reasons.”

Changing perceptions

The focus of Essar’s approach to gender diversity is, therefore, on challenging gender perceptions in the workplace.

A lack of female trailblazers often means that the motivation for women to return to work is low, playing in to wider social expectations and the traditional role of women, explained Dr Banerjee.

To address the issues, Essar is “going all out to hire women” by “changing the ethos” around gender in the workplace and sending the message across the business that women can lead.

Its starting point was a series of guided panel discussions in 2012. These focused on the family and social pressures women faced at each career stage – including “self-esteem associated with marital status, protecting one’s independence and self-worth across life transitions” – and started a conversation that is now helping to shift perceptions and alter attitudes.

“The panels were based on the underlying premise that women often do not have enough role models around them who have successfully broken the Indian mould of women as homemakers,” says Dr Banerjee.

“This dialogue is so important for getting women in the organisation to take themselves seriously as regards their role in the company, and to sensitise people who are leading women to the issues.”

Out of these conversations came the gender-diversity and inclusion initiative You Are Precious, Girl – a high-profile and ongoing branded programme of training and events. It

Country Female labour market participation (%) 2010

Percentage of women in junior management

Hong Kong 48 52

China 46 55

Japan 42 45

Singapore 42 54

Malaysia 36 53

India 29 29

UK 46

Percentage of women in middle management

Percentage of women in senior management

Hong Kong 46 23

China 44 21

Japan 26 8

Singapore 40 22

Malaysia 41 28

India 15 9

Source: UN Statistics Division

WOMEN LEADERS


At the WERC Shanghai conference, Phil Stanley, APAC global mobility CEO of Mercer, presented an illuminating overview of the Local Plus alternatives

currently being used in Asia.

Mr Stanley drew on Mercer’s comprehensive survey of the international assignment policies and practices of around 750 companies, conducted between March and July 2012, together with its Alternative International Assignments Policies and Practices Survey 2013, which included around 320 participants, of whom 23 per cent were from Asia Pacific

The data makes it abundantly clear that, as those working in the global mobility profession know, the majority of organisations are increasing their use of expatriate staff.

In the Asia Pacific region, whilst the situation is more finely balanced over the use of long-term assignments, with 51 per cent of respondents noting an increase, 38 per cent noting no change, and 11 per cent seeing a decrease, the rise in short-term assignments is significant.

A 70 per cent majority of organisations recorded an increase in short-term assignments in the region, with only 1 per cent seeing a decrease and 29 per cent recording no change.

The picture of locally-hired foreigners was telling as regards demand in the workforce, and fairly equally balanced, with 51 per cent of organisations seeing an increase and 49 per cent reporting no change.

Against this backdrop, organisations in APAC were more likely to use ‘localised’ packages, but the Mercer 2013 Alternative International Assignments Policies and Practices Survey showed a definite growing trend towards Local Plus solutions.

In answer to the question ‘why Local Plus?’, the survey reveals that this approach is mainly being used in Asia Pacific for permanent or indefinite transfers, for internationally hired foreigners or those localising from an expat package,

for certain assignment locations or position levels, and for locally hired foreigners.

As a region, Asia Pacific is leading the way in having formal Local Plus policies in place.

The top five Local Plus elements are tax preparation assistance, housing allowance, relocation services, enhanced medical benefits, and dependant education assistance.

In Asia Pacific, the most important drivers for the Local Plus approach are cost reduction and equity with local staff, followed by market competitiveness and the need for simpler administration. The APAC countries with the highest number of employees on Local Plus are China, Singapore and Hong Kong.

Phil Stanley urged his audience to look beyond the obvious cost-savings equation and balance goals of simplicity, lower cost objectives and country requirements. As he pointed out, a global policy must be clear but flexible, and the challenge in Asia Pacific, as in other regions, is finding the right mix of approaches.

Those operating in Asia Pacific can help keep the data fresh and relevant in this fast-evolving region by contributing to the Alternative International Assignments Policies and Practices Survey, which remains open at www.imercer.com/aia.

The Worldwide Survey of International Assignment Policies and Practices is an ‘evergreen’ survey, and can be accessed via www.imercer.com/wiappsurveylogin

THE Local Plus APPROACHAccording to a recent survey, Asia Pacific is leading the way in the use of formal Local Plus policies. We explore the top policy elements, key drivers and learning points.

For international assignments news and articles, visit relocatemagazine.com/international-assignments

POLICY

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APACmobility

As the global economy picks up, mobility and talent are high on the agenda of organisations

based in Asia Pacific, says Fiona Murchie.

Taking the temperature

For Asia Pacific news and articles, visit relocatemagazine.com/asia


CONFERENCE

For me, one of the most fascinating sessions at any of the Worldwide ERC summits is the Global Thought Leaders’ Dialogue, because it takes the temperature

of a region at a specific time. There is nothing better than hearing people on the front line describe what is impacting their daily work and what is driving the success of their businesses.

The discussion panel at the Talent Mobility in APAC Summit, held in Shanghai, didn’t disappoint. Moderated by Pandra Richie, of Long & Foster Companies, chairman of the WERC board, the panel consisted of Claire Yao, mobility manager for APAC at Corning, Shanghai, Maureen Jeganathan Arm, of Johnson & Johnson, Singapore, and Greg Morley, VP of human resources, Hasbro, Hong Kong.

Global activity in the year ahead

Asked to comment on global activity for the year ahead, Maureen Jeganathan Arm said Johnson & Johnson was seeing more movement, especially in the Asia region, as well as intra-regional transfers into developed areas. Activity consisted of outbound moves from China to the US and EMEA, as well as in-region mobility to Singapore, with lots of moves into China.

Greg Morley was generally pretty hopeful. Hasbro’s focus was on profitability and driving revenue, and relocation was a small part of that. On the whole, the company was doing shorter assignments rather than long-term ones, the former being seen as a better investment for the organisation and the development of talent. They were by no means all at senior level; there were many more middle and junior management moves. Hasbro was being more proactive and managing packages according to different requirements.

As Hasbro was relatively new in China, Mr Morley felt it was too early to consider exporting talent from there, but this may be contemplated in a year or two. Currently, the company was bringing in talent from outside to fill gaps, and recruiting high-potential personnel for a number of months on short-term assignment. In China, assignments were typically shorter and more targeted on developing talent, but there had to be flexibility, with a change of emphasis mid-term if necessary to meet business needs.

Claire Yao highlighted the rise in mergers and acquisitions, together with advances into new markets. For her, it was all about assigning the right people at the right time. This avoids labour costs if the business need doesn’t turn out as expected, she argued, and gives flexibility and resilience.

A robust case for filling a role by local or international talent needed to be made. If local talent was the solution, a clear timeline was needed for the succession plan. If international talent was opted for, the case for a local package must be investigated.

Ms Yao noted an increase in short-term assignments. Commenting that China was becoming expensive compared

with other parts of Asia, especially as regards tax, she expected to see more moves within Asia. It was her opinion that companies were evaluating China with a view to seeking alternative Asia Pacific countries in which to operate should the Chinese economy suffer a setback. She expected to see more moves, but all within the Asian family of countries.

The thorny issue of compliance

Greg Morley explained that compliance was part of Hasbro’s company culture. As a manufacturer of children’s products, it had to have high ethical standards, safety was of paramount importance, and therefore compliance was non-negotiable. He could understand that, from a vendor perspective, the company’s standards could seem unreasonable, but this was simply the level of compliance at which they had to operate.

Maureen Jeganathan Arm reiterated this point, saying that, as a drugs company, Johnson & Johnson, too, had to uphold the highest standards of compliance.

Acknowledging the need for tracking, from a compliance perspective, of tax, immigration, social security, health and personal safety requirements, Claire Yao voiced the frustration felt by many end-user expatriate employees and business travellers and their mobility managers. When would there be one platform to consolidate all this tracking, and who would provide it?

Growing mobility professionals of the future

Maureen Jeganathan Arm saw the mobility function evolving and aligning more closely with the “talent space”. She saw the skills of partnering business, reading data, and asking the right questions about mobility as being crucial.

Greg Morley believed that mobility professionals were people with a flexible mindset who were outgoing explorer types. He saw the need for better advocates of the profession. Part of the solution, he felt, was mentoring programmes, speaking at universities, and raising the profile of the profession above being seen as purely administrative.

Just as the banks were aggressive about recruiting talent early, a compelling vision of global mobility professionals was needed, with a career path that reflected the importance of their impact on people’s lives and business growth.

Claire Yao raised the point that, although mobility professionals spent a lot of time dealing with details, it was important to focus on the big picture when talking to executives and business leaders. “If we want to elevate ourselves to business partners or consultants, then we must learn to behave like consultants,” she proclaimed.

Ms Yao went on to assert the value of connecting with other mobility professionals, both HR and supplier vendors, and the importance of working together on what we want our industry to become.


HEALTH


Around the world, health has been hitting the headlines. From the Ebola virus in West Africa, to air pollution and bird flu in China, to Middle East

respiratory syndrome coronavirus (MERS-CoV) in Dubai, it seems that every day brings employers based in affected areas and those managing international assignments – not forgetting employees and assignees - new cause for concern.

This coincides with growth in the number of business travellers and expatriates being sent to countries with higher medical risks, according to research from medical and travel security services group International SOS.

The study found that, in 2013, more than 40 per cent of medical cases occurred in countries classed as ‘high’ or ‘extreme’ risk, up from less than 25 per cent in 2010. In countries classed as extreme risk, 11 per cent of cases were due to cardiovascular disease, while another 11 per cent were attributable to infectious illnesses, including malaria and dengue fever. Of cases in Asia and the Middle East, 50 per cent were in high-risk countries, with assistance most commonly required in Indonesia, India, China and Vietnam. This compares with 29 per cent in 2010.

Scott Sunderman, group CEO of global medical, security and travel assistance services provider Healix International, winner of Re:locate’s new Global Health & Wellness award, points out that, as companies look further afield for new sources of business and operational capability, even traditionally conservative professional services firms, which might once have sent people almost exclusively to major first-world cities, are starting to operate in remote parts of Africa and Asia.

He adds, “Energy and mining companies used to dominate in terms of exposure to high-risk locations, but now we see manufacturers, FMCG companies, non-government organisations and inter-government organisations doing business in these places as a matter of routine.”

Inevitably, this is leading to an increase in the number of expatriates needing medical assistance from Healix. The group is finding, however, that conditions on the ground have not progressed in most instances.

Scott Sunderman explains, “Even in relatively developed parts of the world, expatriates may struggle to adapt to the standard of medical care available. This is especially true in areas such as post-operative support, where the quality of nursing care may be poor – and often non-existent – and language issues may prove problematic.”

It’s important, therefore, that employers manage employees’ expectations and have appropriate medical evacuation plans in place.

Reducing and managing risk

The challenges for employers sending employees overseas are reducing risk wherever possible, managing any remaining risks, and – crucially – convincing employees that they are valued and will be looked after.

To reduce risk, planning and preparation, by both employer and employee, are crucial. Healix has found that a well-thought-out plan to assess and prepare employees will provide both an understanding of the risks that the employer is taking by sending an employee (and possibly also his or

EMPLOYEE HEAL+H

Workers in today’s global economy face a variety of health risks. With comment from experts, Louise Whitson considers how organisations and their employees can

manage and mitigate them.

Reducing the risks


HEALTH

her family) overseas, and a better-supported workforce.

Risks, Scott Sunderman says, can be both financial – a chronic medical condition that needs to be supported in a high-cost country can lead to substantial unforeseen expense – and physical – an individual with a chronic medical condition who travels to a country that cannot adequately support that condition will be placed at significant risk. An employer who understands the risks of sending an individual to a given location will be able to make a considered judgement about the cost and benefits of the assignment.

“By properly understanding factors such as pre-existing medical conditions,” Mr Sunderman adds, “the employer can take steps to prepare its workforce before international assignments. Even very basic issues, such as gaining access to prescription medication in a foreign country, can prove to be problematic, and can destabilise employees and their families. Most potential issues can be easily fixed prior to departure, making the employee feel well supported, and increasing the chances of a successful assignment.”

The risks of not properly assessing and preparing employees include the potential for unforeseen costs, breaches of an employer’s duty of care, and, of course, the cost and operational implications of failed assignments.

Empowering employees

International health benefits provider Aetna International was shortlisted in the Global Health & Wellness category of the Re:locate Awards. Its general manager for Europe, David

Healy, believes that, as well as choosing an international medical insurance plan that meets the specific needs of their staff, employers should consider the add-on tools their insurer makes available as part of the insurance package, which can help employees to manage most aspects of their health.

Aetna’s web and mobile tools, for example, include mobile apps that allow members to locate nearby providers, book appointments, and obtain directions. Mobile technology enables claims to be submitted via smartphone.

Providing information, says Mr Healy, is also important. “The more knowledge employees have of their healthcare options, the less risk they are likely to face when working overseas. A staff member in a remote location needing urgent treatment, for instance, will benefit from understanding quickly where to find their local treatment centre.”

Asked what steps employees can take to help ensure their own wellbeing while on assignment, David Healy says, “Employees will naturally differ in their approach to health and fitness, and moving to work abroad can often mean additional stresses from a new job and settling into a different environment. Employers typically want to encourage staff to stay healthy, and may look to provide local support and information on healthy eating and other important considerations.”

Technology plays a key role in delivering wellness advice and information for Aetna’s members. The company provides health-related information via dedicated applications for smart devices and through the member portal on its multilingual website.

Healix’s Scott Sunderman advises, “Expatriates should ensure they complete a medical assessment and follow advice. It’s critical, for example, to ensure that vaccinations are up-to-date, and to take malaria prophylaxis in malaria-affected zones.”

Avoiding disease

When it comes to the risks of the current well-publicised outbreaks of serious diseases like Ebola and bird flu, David Healy says, “Dealing with natural disasters and outbreaks of disease can be highly stressful and worrying for expatriates. Employers should check that their insurance provider is willing to help in these situations and can provide sufficient support.”

International employee assistance programmes (IEAP)can support members in cases of disaster or serious infectious disease. Explains Mr Healy, “IEAPs can assist with a variety of topics, ranging from eldercare and childcare to legal, financial and relationship issues, and workplace conflict. They can also help members navigate difficult situations

like disease outbreaks, whether from a practical perspective or to help deal with the emotional fallout.

“If members are worried they will be travelling to a high-risk area, they can call the IEAP for advice.”

Scott Sunderman says, “Employees should follow advice in terms of personal hygiene, and avoid contact with potential sources of infection, such as, in the case of bird flu, chicken carcasses in wet markets. Employers should ensure that they have up-to-date infectious-disease response plans that link to their business continuity plans.”

However, he cautions, it is vital to keep a sense of perspective. “Many of these highly publicised pathogens are not particularly contagious and impact relatively few people. It’s important that employers and employees do not lose sight of the more common – and yet less well-publicised – diseases, such as malaria and yellow fever.

Air pollution in China

Of course, it’s not just disease that can affect the health of those travelling internationally: environmental factors can also pose a threat, particularly in emerging economies, as was demonstrated at the Worldwide ERC APAC Summit in Shanghai, during a session which highlighted the health risks posed by air pollution in China.

Yi Zhong, China health project leader for General Electric (GE), explained that, while air pollution was a concern, she viewed smoking as the biggest challenge to health in China, where smoking-related deaths exceed a million per year. GE’s Health Ahead programme, she said, encouraged employees to take responsibility for their own health.

Sammi Chen, IM adviser for BP, felt that pollution could affect the ability of companies in China to attract and retain foreign staff. To counteract this, organisations most commonly offered simple guidance, such as advice on reducing exercise on days when pollution was high. Paying a hardship allowance was another alternative.

Ms Chen also emphasised the importance of communicating to expats that their employer cared about their wellbeing. Providing monitoring of indoor pollution was an option, as was installing air purifiers in apartments. Requesting indoor and outdoor pollution testing before a lease was signed could also be considered.

…and avoid health issues disrupting overseas assignments

Many of the illnesses and health related problems suffered by business travellers and expatriates whilst overseas are both predictable and preventable.

Our extensive intelligence of international medicine, combined with proprietary, Queen’s Award winning software, means we are able to provide a robust, online evaluation of potential medical risks involved in any overseas assignment and enable appropriate preparations to be made.

To find out how our revolutionary International Medical Screening service can provide you with a comprehensive and cost-effective online solution for assessing the health risks facing your global workforce and their dependants, contact us now at: [email protected] or +44(0)20 8481 7720

Protect the health and wellbeing of your global workforce

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HEALTH

For health news and articles, visit relocatemagazine.com/employee-health


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26 | Re:locate Asia Pacific | Summer 201426 | Re:locate | Spring 2014

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AUSTRALIA SPOTLIGHTWhile much of the world has floundered, Australia has proved fairly resistant to the global economic crisis. With slowed growth over the last year, thanks in part to the softening mining sector and a somewhat uncertain political climate, however, the country is looking towards new opportunities for prosperity. Mark E Johnson reports.

Australian government has a federal structure, with power divided between central government and the individual states. Characterised by this

federalism and a separation of powers, the government is made up of an elected Parliament, comprising the House of Representatives (the lower house) and the Senate (the upper house), as well as the Executive responsible for enacting legislation and an independent judiciary.

Because Australia uses a proportional representation system, it’s not uncommon to see a coalition in power. Tony Abbott, leader of the centre-right Liberal Party, formed a government following the 2013 elections, in partnership with the National Party of Australia, ousting the incumbent centre-left Labor Party government.

As is the case in the House of Representatives, neither major party holds a majority in the Senate, leaving the Greens and independent crossbench senators holding significant power. The Economic and Political Overview 2014 report from the Committee for Economic Development of Australia (CEDA) quotes coalition adviser and lobbyist

AUSTRALIA


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Grahame Morris as saying that the current numbers present a Senate favourable to the coalition, but one that will nonetheless require significant amounts of diplomacy to manage.

The Liberal Party’s lack of a majority may create challenges for the government over its term as it seeks to reduce government and build an Australia better equipped to live within its means. The country’s Disability Insurance Scheme, new school funding scheme and spiralling healthcare costs (the result, in part, of an ageing population) are all putting pressure on Australia’s ability to balance the books. The government may be forced to raise taxes if the schemes are going to continue in their current form.

Tony Abbott used his keynote speech at the World Economic Forum in Davos to call for freer trade and less local protectionism, echoing his claim on election night that Australia was once again ‘open for business’. The corporate world was recently surprised, however, when a foreign investment bid for agribusiness firm GrainCorp was rejected.

On the other side of the equation, the government has signalled that it isn’t interested in providing so-called corporate welfare. It recently said it would not give $25 million in support for food processor SPC Ardoma. Justifying the decision to ABC’s (the Australian Broadcasting Corporation) current affairs programme 7.30, Mr Abbott said, “We are moving from the age of unsustainable entitlement to the era of sensible responsibility.”

Major airline Qantas has also asked for government help recently, seeking either changes to the Qantas Sales Act that caps foreign ownership of the company or a guarantee of its debt. Both cases will be regarded by the business community as a test case for government attitudes towards corporate support.

The financials

Speaking to Re:locate about long-term trends for Australia as a destination for business, Scott Strain, director of trade for UK Trade & Investment, Australia and New Zealand, was upbeat, saying, “Australia hasn’t suffered a recession for 23

AUSTRALIA SPOTLIGHTin the

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.com

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years, and consistent economic growth has made it wealthy and more confident of its place in the world. Australia’s proximity to much of Asia and its strong people-to-people and trade links can make it a good base for Asian expansion.”

Still, financial growth in Australia was lacklustre throughout 2013, though analysts are predicting a gentle uptick during 2014 and above-trend gains again in 2015. The Reserve Bank of Australia says it expects the economy to grow this year thanks to stronger activity in the retail and housing sectors alongside a lower exchange rate. The organisation said in February that it expected growth of 2.25 per cent to 3.25 per cent, up from the 2 or 3 per cent it predicted in its October report, with inflation predicted to peak at around 3 per cent in June. The low Australian dollar is expected to boost export and restrain imports.

A substantial drop in mining investment and fiscal restraint will, however, keep growth subdued for the year ahead.

Key sectors

Australia is highly dependent on the Asian economy. In particular, much of the capacity in place around the key mining and energy sectors exists to provide for a growing Asian economy and, with Chinese growth slowing down and supply from projects established when prices were higher coming online, Australian commodities are expected to see a similar contraction in growth.

Mining and commodities have long been drivers for growth in Australia, but, as they slow, other sectors are expected to move into prime positions.

CEDA concluded in its forecast that the housing sector offered the best hope for a smooth transition to growth resting on other sectors. Commenting to Re:locate on the strong housing and retail sectors, however, Jane McNeill, regional director of recruitment firm Hays in Australia, said, “Job creation in both housing and retail is expected, but this has not been enough to stop the unemployment rate from rising to 6 per cent over the past year.”

Highlighting sectors that have a strong British presence, Scott Strain pointed to mining and oil and gas, infrastructure and construction, financial services, defence, business and professional services, biotechnology and health sciences, and ICT. He added, “We have indicated to British companies that there are particularly significant opportunities right now in the building of Australia’s roads infrastructure.”

Jane McNeill named some of the sectors highlighted by Mr Strain as key to Australia’s future. “As our economy transitions from mining-led to a system of micro-economies, five ‘super industries’ will fuel huge jobs opportunities in the years ahead, according to Deloitte. These ‘super-growth’ industry sectors – agribusiness, gas, tourism, international education and wealth management – are worth an extra $250 billion to the national economy over the next 20 years.”

The Deloitte report cited by Ms McNeill, Positioning for Prosperity? Catching the next wave, points to five factors acting

AUSTRALIA


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in Australia’s favour when it comes to taking advantage of growth areas: world-class resources, proximity to growth markets in Asia, use of English, a temperate climate, and well-understood tax and regulatory regimes.

Scott Strain echoed some of the points made in the Deloitte report when discussing Australia as a destination for UK firms. “British companies feel particularly at home here, as the business culture and regulations are often very similar to the UK’s and there are more British people in Australia (1.1 million) than in any other foreign country. There are over 1,000 British businesses already operating here, and the UK is the second-largest foreign direct investor in Australia, so Australians are familiar with

British businesses operating here and receptive to doing business with them.”

Employment

Jane McNeill noted that the country’s recent slower economic growth had impacted employment. As of January, unemployment was 6 per cent, a level not seen since 2003. But there were reasons for optimism, she added. “Although the number of full-time roles has not returned to its peak, there has been an increase in the part-time space; we are still seeing employers hire part-time staff or contractors to manage their workloads while they wait to see if they need to make a permanent hire.”

Ms McNeill said that the anticipated slight upward turn in economic performance should have an effect. “The latest National Australia Bank Monthly Business Survey shows that business conditions maintained last month’s momentum and are approaching three-year highs, while confidence was up for the first time in four months. This should ultimately feed through into the labour market; employers need

The complexities of moves into and out of Australasia are increasingly challenging to manage. Here, members of the Victoria-based Employee Mobility Institute take a look at some of the changes mobility professionals face, and explain how the right approaches can result in a positive outlook.

For many of today’s top professionals, a career in Australasia is high on the list of goals. Global careers are the buzzword for university graduates, who are drawn to the seemingly easy lifestyle Australia and New Zealand offer. However, this perception can have a detrimental impact on new arrivals, who may underestimate the challenges they face. Companies, too, often take a relaxed approach to the needs of their new employees, who not only have to deal with the job at hand but may also have to support the emotional and functional needs of their family.

Company decision-makers need to be convinced by HR that a holistic approach to the entire family is the key and that cross-cultural training is vital. Without the tools to communicate and integrate effectively, there is a strong possibility that the relocation will fail. Companies must understand these cultural differences and be prepared to embrace them in order to ensure the ‘longevity’ of their global workforce.

Australasian companies have been hit with a barrage of legislative changes over the last 12 months, including new immigration policies and amendments to tax legislation. This year, Australia’s privacy policies are being overhauled, which will control the flow of international personal information and require companies to comply further with the protection of personal information.

There are outbound issues as well, with overseas assignments still attractive to highly motivated, educated and upwardly mobile Australian and New Zealand professionals. Combined with the challenges of the Australasian employment landscape and the draw from growth economies like Asia, Australasian companies continue to be faced with increasing challenges around talent retention. Historically, only a few Australasian companies have fully-developed and well-thought-out international relocation policies that support expatriate success and retention.

It is not uncommon to find Australasian organisations seeking to capitalise on Asian growth opportunities by launching their employees into new countries with the previously successful (and Australasian) practical approach of “just need to get my gear from here to there and she’ll be right”. With the increasing

Australasia: the mobility scene


IF GOES AHEAD, WANT TO BE IN AUSTRALIA

complexity of immigration laws, tax, company governance issues, security

concerns and cultural gaps, this approach is very dangerous. Not only is there a risk of

business ventures failing, but there are also high risks of employees being put in difficult and

risky situations.

The company will be considered liable for non-compliance in immigration and for employee’s behaviour in foreign countries. Companies therefore need to make careful plans to ensure the success of their commercial ventures. Mobility professionals must protect these outbound employees with international relocation policies and procedures that address these concerns.

One of the interesting anecdotal trends that seem to be appearing is that a number of Australasians are flocking to opportunities in Asia, either with their employer’s support or on their own. They then find it difficult to return to Australia or New Zealand. Having been highly successful in the large Asian markets in well-paid jobs, they are faced, on returning, with a smaller market and a smaller number of high-flying opportunities.

In many Asian countries, it is also not practical, sometimes not safe, or just too difficult to bring up a family, or for the spouse

to work. These two issues are reportedly splitting up the family unit, to the point where the employed spouse stays in Asia and commutes periodically back to the Australasian-based family.

To manage these issues, the role of the mobility professional in Australasia needs to change and will continue to change rapidly as corporations focus on expansion strategies into new markets. As the economic environment continues to be uncertain, leaders are beginning to grasp the importance of global mobility in driving growth initiatives. Across industry sectors, there is a perceptible change in the status of the mobility function, and this presents a great opportunity for mobility professionals. Expect to see astute companies moving mobility closer to the business as a support function.

The war for talent in Australasia is a reality, yet historically the mobility and talent functions have often been managed in silos, with little cooperation. This will change as resourceful mobility professionals look to align assignment strategy with the broader talent agenda.

Article written by Industry Steering Committee Members of the Employee Mobility Institute: Jon Johnson (Deloitte Australia), Wendy Jenkins (Moving2plan), Sue Latina-Cohen (Toll Transitions) and Robyn Vogels (Personnel Relocations).

to be more definitive in their decision-making, rather than hedging their bets with part-time or temp hires. ‘High-skills’ remain very much in demand.”

Looking at employment shifts across the country, Jane McNeill said, “In New South Wales, the largest state economy, the economy is growing again and jobs are responding. Meanwhile, the stellar jobs growth rates experienced in Western Australia during the mining boom are slowing to more moderate rates of growth. Mining continues to deliver jobs and economic benefits, just at a declining rate from that seen at the height of its boom. Those people who are coming out of the mining sector are fitting into the infrastructure sector to maintain their employment.

“After six years of growth slowing in South Australia, there are signs of a turnaround. We are also seeing

new signs to indicate that the market is picking up in Queensland.”

Despite Australia’s current levels of unemployment, Ms McNeill said

that hires were still being brought in from abroad to address skills shortages. “There continues to be

demand for skilled workers across a broad range of sectors, from engineering to healthcare. As long as that demand exists, employers will be willing to sponsor candidates from overseas.”

Australia is noted for its ageing population, but Ms McNeill pointed out that the Australian Bureau of Statistics now says that one in four people aged between 65 and 69 are now employed, usually in full-time work. “Since the global financial crisis, older workers have absorbed half of Australia’s net growth in jobs. Australia has more workers aged over 55 than under 25. Furthermore, the country now has more than a million workers aged 60 and over – almost 300,000, or 40 per cent more than five years ago.”

Australia is entering a period of transition, but looks relatively robust for the time being, with fair promise of a bright future.

Australasia: the mobility scene

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The tough global trading environment in which the majority of companies are competing continues to fuel the pursuit of sustainable business models.

International companies face stiff competition, and it is essential that they deploy project teams quickly and efficiently to get the job done. Leading-edge companies of all sizes see providing international experience as imperative for the development of future leaders.

In either case, managing and retaining talent is crucial to the business, and it is usually the responsibility of HR managers or HR mobility specialists to organise domestic relocations or international assignments.

Today’s management teams, however, ensure that no stone is left unturned as businesses look to reduce their costs, shorten their response times and add more value – without compromising their commitment to compliance or corporate social responsibility, of course.

For most firms, this means using their assets more efficiently and extracting more value wherever possible. The challenge that the majority struggle with is the inevitable trade-off between cutting costs and differentiation – doing more and/or better with less.

Getting this right can give a business a genuine source of competitive advantage, but getting it wrong can be disastrous, and invariably results in a ‘race to the bottom’ in which everyone is a loser in the long run. In the relocation scenario, this can lead to disaffected talent who may leave to join the competition.

This represents a real challenge for service providers in the relocation and global mobility sector, as customers expect and demand better service at more competitive rates. The problem is that few companies understand where the value is added in the complex global relocation supply chain. This often results in employers cutting corners, to the detriment of their employees, and service providers investing in areas that, at best, are necessary but add no value, and, at worst, are wasteful and should be cut altogether.

This is the conclusion that students from Kent Business School reached following their analysis of the relocation supply chain as part of their MSc in Value Chain Management, the results of which will be published in the autumn. Kent Business School is the only academic institution in the world teaching this discipline, which is so vital to supporting economic growth.

The course is taught by academics from a variety of disciplines, all of whom are internationally recognised experts, and the content is informed by research undertaken within the Centre for Value Chain Research (www.kent.ac.uk/kbs/research/research-centres/cvcr/).

Strengthening the chain

Value Chain Analysis (VCA) is a diagnostic process designed to identify a chain’s strengths and weaknesses and highlight key areas for improvement, with the aim of making each

The concept of the value chain, well known in the business world generally, is rather less so in the relocation and mobility context. Yet its potential for identifying opportunities for improvement has huge value for organisations relocating employees, and for their service providers. Andrew Fearne, professor of Value Chain Management at Kent Business School, explains.

RELOCATION

VALUE CHAIN

Where’s the value?


member of the chain, and the chain as a whole, more competitive.

It begins with the final consumer – the relocatee, expatriate or international assignee

– and determines what is important to them in the relocation process – that is, what they value. This is a

real blind spot for most companies, with service providers perceiving what they do as adding value, and managers perceiving the very same things as targets for cost cutting – a view that drives the business and procurement departments. HR is often caught in the middle, understanding the value but without the metrics to prove its case.

For those service providers whose activities are necessary but do not add value in the eyes of the consumer, the focus should be on increasing the efficiency of existing operations and finding new services to offer that do add value.

For those who provide services that the consumer values, the last thing they should be doing is cutting costs in their delivery and development. Rather, they need to up the ante on their marketing communications, to reinforce the perceived value of the service they are offering.

For managers – the gatekeepers of success and drivers of value creation and efficiency gains – systematic cost reduction without consideration of the impact on relocatees (in terms of their satisfaction and ability to perform their role) can result in short-term budget savings but longer-term loss of employee commitment and, ultimately, reduced levels of their own customer service and satisfaction.

The reality is that employees, like consumers, are heterogeneous – they have different values, and value different things – which is why effective market segmentation and service differentiation are so important as a starting point in the pursuit of sustainable competitive advantage.

The identification of perceived value from the consumer’s perspective enables companies to identify where value is added in the supply chain or service delivery process and determine the appropriate resource allocation. The effective flow of information between service providers, facilitated through collaborative trading relationships, is a critical success factor, and can be assessed through surveys and interviews with key stakeholders in the supply chain/service delivery process.

The resulting diagnosis maps the service flow, information flow and relationship strength from beginning to end, highlighting, along the way, areas for improvement.

The methodology is taught as part of the MSc in Value Chain Management and applied to a live supply chain, with the aid of a facilitator or champion. Previous projects have looked at the supply chains for mangoes, from Queensland to UK supermarkets, the maintenance of railway carriages, potted plants, and the delivery of short breaks for families with disabled children.

This year, we have been looking at the complex world of global relocation, with the support of Fiona Murchie and the Re:locate team. The students have completed their data collection and presented their initial findings, and

VALUE CHAIN


are now designing the improvement projects. The results will be presented in the autumn via a number of Re:locate media channels.

In the meantime, we are widening the pilot study. Until 31 July, the Re:locate website will be hosting two global surveys, one for assignees and one for businesses.

We would like to encourage as many organisations as possible to participate, on both the corporate and supplier side. Please also encourage your employee and expatriate community to take part.

The more global information we have, the more market intelligence we can feed back, which will help promote the

success of global mobility and the growth of your business.

The data will be analysed by me, and the key findings will be reported exclusively by Re:locate.

For further details, please contact Andrew Fearne at Kent Business School ([email protected]) or Fiona Murchie at Re:locate ([email protected]).

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Relocation value chain: initial diagnostics of information flows and relationships

By Kent Business School postgraduate students, summer 2014

VALUE CHAIN

Take part in the surveys at relocatemagazine.com


An informative session at the Worldwide ERC summit in Shanghai was presented by Berry Appleman & Leiden’s (BAL) Christina Karl, managing director,

Asia, Megha Banerji, APAC immigration manager, and Tim Denney, managing director, Australia.

The speakers provided a mine of information for organisations sending international assignees to Asia Pacific, and highlighted some of the potential immigration pitfalls for those sending employees to the region on business trips.

Recent key enforcement trends covered in their very practical session were:

Increased use of biometrics in foreign identification cards

• Malaysia plans to introduce a new biometric card by the end of the year

Increasing requirement for justification for foreign hires

• Indonesia has added a new company representative interview to the step requesting approval of the foreign employee’s position

• Vietnam has added annual position ‘demand’ approval for jobs held by foreign nationals

• India is increasingly requiring proof of local job advertisement as part of employment visa applications

Personal and payroll tax information is now part of work visa document requirements

• The Philippines requires employees to have a Taxpayer Identification Number before a work permit application can be filed

Exit requirements are also being added

• Malaysia requires Professional Visit Pass holders to obtain ‘exit memos’ before allowing them to leave

• China now requires cancellation of work and residence permits

• Australia continues to require that the authorities are notified within ten days of a 457 visa holder ceasing employment in Australia

Countries are improving immigration recordkeeping

• Immigration databases are being integrated with police and government intelligence agency databases

• The in-country registration requirements are made more relevant by providing authorities with accurate location of foreign nationals

• Passport security is improving, with governments shifting to passports with embedded microchips, to ease border passage

• The Philippines is requiring all its citizens to convert to the new-style passport by the end of 2015

Efforts to reduce fraud in work visa applications

• Singapore has added verification requirements for education certificates obtained in China

• A Philippines Department of Justice investigation found an employer that had falsified information for more than 70 Chinese nationals in order to obtain work visas, which has resulted in new restrictions on Chinese nationals entering the Philippines for work

• Australia has enhanced the enforcement regime by permitting Fair Work Ombudsman Inspectors to audit sponsoring companies

Information courtesy of BAL.

For the latest immigration updates and practical advice, check out relocatemagazine.com

KEEPING UP WITHIMMIGRATION CHANGESThe fast-changing immigration landscape can be a minefield for those managing relocations and international assignments. We bring you a handy checklist of some of the latest enforcement trends in the Asia Pacific region.

What are the most common but unexpected problems employers may face?

In Beijing and Shanghai, marriage and birth certificates need to be translated into Chinese if they are in a foreign language (other than English).

De facto relationships are only accepted in some cities in China. They are not accepted in Shanghai.

In Beijing, before submitting a Dependant’s Residence Permit application, a foreigner must obtain a letter from a government authority in his/her country which states that the couple are in a husband and wife relationship, and then have the letter legalised at the Chinese Embassy in his/her country. Children older than 18 are not eligible for a Dependant’s RP application.

A non-criminal record issued by the Ministry of Justice in the assignee’s home country is needed for Beijing, but not for Shanghai.

Malaysia

Working visa categories

For a three-month marketing trip, a one-week business conference, a two-week visit to an offshore office, or a six-month advisory trip, a Professional Visit Pass is required, as it covers all short-term assignments.

For long-term employment (one to three years), an assignee will require an Employment Pass. A levy is imposed on an application for a period of less than a year.

Does the type of business affect the type of visa?

No, but the type/nature of the business will determine which category the company falls under, and this has a

China


For marketing a product, attending a business conference, advising on technical issues, and/or trade activities, a six-month Business Visa (M or F Visa) is sufficient. For long-term employment (over six months), a Work Permit (WP) and a Residence Permit (RP) or Long Term Z Visa are both required.


The type of business does not normally affect the type of visa, as the processes for WPs and RPs, and those for wholly owned foreign enterprises (WOFE) and Representative Offices, are different.

For Business Visas, the duration depends heavily on the Chinese entity (the type of entity, the registered capital listed on the company business licence, etc), but the biggest factor in determining the type of visa is the applicant’s purpose in China.

Approval timeframe, once documents lodged

For WP and RP applications, seven to nine weeks are necessary to complete the whole process.

Eligibility criteria

To apply for a WP and RP to work in Beijing or Shanghai, the assignee must conform to the minimum requirements, which are a university degree and more than two years’ full-time working experience after graduation.

In Shanghai, the employee must be less than 60 years old if male, and 55 years old if female. In Beijing, the employee, whether male or female, must be less than 65 years old.

Immigration is a burning issue for any organisation moving employees and their families to a new region. Reloc8 has been established in the region for many years, providing destination services for relocating employees and their families. It is well-placed to share some key pointers around visas and work permits.

Handy

tips!


VISA & WORK PE RMITS IN ASIA PACIFIC


IMMIGRATION

bearing on where the application must be submitted. The requirements/checklist/duration of the visa may vary.


Approximately seven to eight weeks, although if certain approvals are required (such as the Malaysian Development Authority, or MIDA), another one to two weeks will be needed.


The local sponsoring company must have a minimum paid-up capital, which should be approximately:

• 100 per cent locally owned company –MYR250,oo0 (USD76,380)

• 50 per cent joint venture – MYR350,000 (USD106,930)

• 100 per cent foreign owned – MYR500,ooo (USD152,760)

(forex-rate 1MYR = USD3,055)

The assignee must be contracted to a minimum salary of MYR5,000 per month and must hold a university degree, and his/her job title should denote some speciality which cannot be sourced locally.


Non-married couples in a relationship, or ‘common-law wives’, will face challenges, as will citizens of developing countries such as China, India, Pakistan and the Philippines. In comparison, citizens from Commonwealth and European countries will find their application process much easier.

Singapore


For those attending a meeting or a conference, there is no need to apply for an Employment Pass. Most people enter on a Social Visit Pass, as there is no Business Pass in Singapore. For long-term employment (one to three years), one of the many Employment Passes is required.


As there is no Business Visa in Singapore, applicants engaging in any form of work must apply for an Employment Pass.


Online submission takes less than seven days, whilst manual submission takes between four and six weeks.


Requirements are tertiary education from a recognised university, the approved minimum salary (see below), relevant experience and no criminal record.

Starting in August 2014, firms with more than 25 employees must advertise a vacancy for professional or managerial jobs paying less than SGD12,000 (USD9,448) a month on a new ‘jobs bank’ administered by the Singapore Workforce Development Agency for at least 14 days. Only after that can the company apply for an Employment Pass to bring in a foreign national.

The minimum salaries for Employment Pass holders were increased to SGD3,300 (USD2,598) a month from January 2014.

(X-rate: SGD1 = USD 7,8732)


De facto status is only recognised if a couple is able to prove a long-term relationship, whilst unmarried and legally adopted children under 21 are eligible for a Dependant Pass. Some universities are not recognised by Singapore immigration authorities, and certain nationalities are scrutinised more carefully.

This information was provided by Reloc8 Asia Pacific Group from its 2014 Regional Update.

VISA & WORK PE RMITS IN ASIA PACIFIC

For immigration news and articles, visit relocatemagazine.com/immigration


Despite a recent rise in the number of schools in the Asia Pacific region teaching an English-language curriculum, relocating families with

school-age children can still face endless waiting lists, and hefty deposits may be required to secure a place at a quality international school.

China now has well over 400 international schools. Japan, Hong Kong, Indonesia, Malaysia, Thailand and Singapore have seen a significant growth in numbers, and Burma is experiencing some early interest from major international school operators.

China

While many international schools are still not permitted to accept Chinese nationals, some have licences to do this, and, with 200 million school-age children and two-and-a-half million US-dollar millionaires among the growing middle class in China, the demand for a quality international school education is at its highest level for decades. Consequently, China’s international school sector is predicted to see even further growth, which, according to the International School Consultancy Group (ISC), a research group that collates

Recent growth in the international school sector has seen an unprecedented rise in schools teaching an English-language curriculum in Asia Pacific. However, long waiting lists – and large deposits – can still be a headache for relocating families. Rebecca Marriage investigates.

ASIA PACIFIC INTERNATIONAL SCHOOLSA rapidly changing landscape

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data on the world’s international school market, is likely to dwarf all other countries in the world.

Currently, 80 per cent of the demand for places at international schools comes from wealthy local parents who want their children to receive a quality, English-speaking education in order to access the best options for university and higher education.

Dulwich College was the first British independent school to recognise the growing demand and has had a school in the country for over a decade. Dulwich College Shanghai opened with 26 students in 2003, followed by Dulwich College Beijing in 2005. A decade later, the Dulwich family of international schools has close to 6,000 students, over 1,000 staff, and seven colleges in six cities in three Asian countries.

Last August, Dulwich College opened its first international boarding house at its campus in Suzhou, which is proving popular with expatriate families who have children but are required to travel extensively with their work.

Harrow International Beijing followed in 2005. Wellington College Tianjin opened its doors to students in 2011, and Wellington College Shanghai is due to open in August.

Wellington Tianjin was the first overseas partner school of Wellington College in England. “It is a very special partnership,” says Murray Fowler, master of Wellington College International Tianjin. “Whilst we were not the first British school to establish a branch in China, what is genuinely different about us is the strength of our link back to the UK. This manifests itself in core aspects of our ethos, regular pupil exchanges – in both directions – staff visits and inspections, collaboration between academic departments and Houses, and an internship programme for UK pupils.”

Alongside the opening of new international schools, some interesting developments in China’s international

school market are making inroads into meeting the rise in demand for school places. The Chinese government has approved the formation of Chinese-foreign cooperation programmes to create international schools that will enrol both Chinese nationals and foreign students. Developers are looking to create schools that are Chinese owned and run, that cater for Chinese students, and that teach (entirely or in part) in English.

Alongside China, ISC has identified several countries in Asia with growth potential. These include Singapore, Malaysia, Vietnam, Thailand, Indonesia and Hong Kong.

Malaysia

In 2012, the Malaysian government removed the 40 per cent cap which, until then, had restricted Malaysian nationals from attending international schools. Many schools in the region have reported growing demand from local families, and the number of international schools has grown significantly in just a few years. There are now 128 English-medium international schools in Malaysia.

However, despite the rise in demand from the local population, established schools, such as the International School of Kuala Lumpur (ISKL), the first fully accredited international school in Malaysia, which celebrates its 50th anniversary next year, seek to preserve a truly international identity. Julia Love, director of admissions at ISKL, explains that it plans to maintain a 25 per cent cap on any nationality for this reason.

Hong Kong

Demand for quality international school places still far outstrips supply in Hong Kong. From figures released by ISC, it becomes clear that global businesses there, dependent on employee mobility, are seriously concerned that they will not be able to recruit expatriate staff with families.

Hong Kong’s leading international schools are operating at full capacity, and many have waiting lists. Several schools

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DONEA Truly International Education in the Heart of Berkshire

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are already expanding or have plans for expansion, and a number of new school developments are in the pipeline. Expansion and development of international schools in Hong Kong are controlled by a government tender process which last year saw a staggering 40 organisations bidding for a couple of sites for new schools. However, this is still not enough.

Australia-based Elite Executive Services, whose clients include both corporates and individuals moving within, and to, the Asia Pacific region, won this year’s Re:locate award for Excellence in Employee & Family Support. Director Kathy Nunn believes that preparing a family for the difficulties they may face, and helping them to

understand flexible alternatives, can help. “Many families must wait for a spot at their school of preference,” says Ms Nunn, “but there are certainly ways of ensuring that children have the opportunity to continue their education. The PSNFC schools [private schools which offer non-formal curriculum] can be a good alternative. Lessons are tailored to suit students, and this means that they do not lose ground while they are waiting to get into the school of their choice.”

Singapore

In Singapore, there are strict government restrictions on the number of local students able to enrol in most international schools, which, as a result, are populated mostly by children of families relocating to the region. There are currently 73 international schools in Singapore, between them catering for almost 52,000 predominantly American, British, Australian and Indian students.

The Singaporean government manages the availability of international school places according to demand from inbound relocating professionals. Owing to the rising numbers of expats entering Singapore, several new schools have opened recently, some existing schools are expanding, and more new school developments are proposed. Dulwich College is one such school, and plans to open its doors to students in Singapore in August this year.

Burma

Dulwich College is one of the schools venturing into the new market for international schools and expatriates that is opening up in Burma (Myanmar) ahead of a predicted economic boom. In collaboration with Yoma Strategic Holdings, a business corporation with a number of interests in Burma, Dulwich will oversee the development of a $40 million premium educational facility in the Thanlyin Township.

Yoma believes that the influx of expatriate families into the country will drive demand for high-quality international education while supply is limited. The British Schools Foundation, a not-for-profit international school group, announced earlier this year that it would be opening a new school in Rangoon (Yangon) in August.

The demand for a good-quality education from both expatriate families and local nationals in the Asia Pacific region indicates that the English-medium international school market is likely to see significant growth into the foreseeable future.

However, until supply matches demand, and with good schools filling up quickly, families will need extra support and guidance to find the right solution.

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EMPLOYEE FINANCE

China’s Shanghai and Beijing are two of the world’s most expensive locations for expats to live in, according to new research.

The latest Cost of Living survey by ECA International, which provides information and technology for the management and assignment of employees around the world, also reveals that Tokyo has fallen out of the top ten most-expensive cities globally, despite inflation.

ECA carries out its Cost of Living surveys to help companies calculate cost-of-living allowances so that international assignees’ spending power is not compromised while they are overseas. The surveys compare a basket of like-for-like consumer goods and services commonly purchased by assignees in more than 440 locations worldwide.

Assignees’ living costs are affected by inflation, the availability of goods, and exchange rates, all of which can have a significant impact on remuneration packages.

Some living costs, such as property rentals, utilities, car purchases and school fees, are usually covered by separate allowances. Data for these is collected separately, and not included in ECA’s cost-of-living calculations.

Asia Pacific highlights

Tokyo (11th globally) maintains its position as the most expensive Asian location for expatriates, but, after losing the world top spot a year ago, it has now also dropped out of the global top ten for the first time in at least a decade.

Economic policy and fiscal changes, such as the increase in sales tax from 5 to 8 per cent, have led to significant price increases in Japanese cities. However, the yen’s continued depreciation against major currencies during the year has

caused these locations to fall in the rankings.

Chinese cities have surged up the list. Just five years ago, Shanghai and Beijing were barely in the top 50; now, they rank 18th and 20th respectively. Prices have risen over the past 12 months, in contrast with last year, when prices of items in ECA’s shopping basket for Chinese locations increased little, or even fell.

In terms of currency, while the renminbi has fallen over the year against the euro and sterling, it has strengthened against the US dollar.

Hong Kong (29th) has overtaken Singapore (31st globally), where prices of items in ECA’s basket of goods and services have increased at a slower rate overall and the local currency has weakened further against major currencies compared with the Hong Kong dollar.

Although Indian locations have seen some of the region’s highest inflation, this has more or less been countered by the weak rupee. Indian cities remain comparatively cheap for expatriates, New Delhi ranking 208th in the global ranking, and Mumbai 225th.

In Australasia, Sydney has been overtaken by Auckland in the global ranking. Auckland has risen eight places over the year to take 36th position, while Sydney has fallen from last year’s 17th place to 38th.

Although the price of goods in ECA’s shopping basket for New Zealand has increased slightly overall, this has been at a slower rate than increases in Australia.

The weakening of the Australian dollar against major currencies is the main factor behind all the Australian cities surveyed falling in the global ranking again this year, says ECA.

EXPAT COST OF LIVINGmixed picture in APAC

The cost of living varies widely across the Asia Pacific region, according to the results of a new survey designed to help companies to calculate living costs for employees going on international assignments.

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TOP TIPS FROM PROPERTY EXPERTS IN ASIA PACIFIC

An expert panel came together at the Worldwide ERC conference in Shanghai to highlight key property issues affecting relocation in Asia Pacific.

Sue Latina-Cohen, of the Australia-based Toll Group, warned that expatriates would find that Australian real-estate agents were not “warm, friendly and welcoming”, and there were established practices that needed to be followed.

Vacancy rates are low, and the pressure is on when looking for property. Ms Latina-Cohen revealed that 18 per cent of housing was being bought by the Chinese for investment, and this was putting pressure on the lettings market.

When it comes to renting, the system protects the landlord and owner, and it is important that companies sending expatriates to the region understand this. Diplomatic clauses are difficult to negotiate, and often only apply after 12 months.

When a property is leased, it must have a condition report. This is extremely detailed, and the employee has to see it and sign it. The exit condition report is taken very seriously, and employees cannot be allowed to opt out, as any dispute may go to a tribunal.

Joshua Han Miller, of Asia Pacific Properties, said that, in China, the agent often represented both tenant and landlord, there was no regulatory body, and estate agents did not need to have a licence as they did in Hong Kong and the USA.

It is also important to understand how an agency employs its agents. This may be either on base salary plus commission, which can vary from 10 to 50 per cent, or on an all-commission rate of perhaps 70 per cent, which can drive a quick sale and influence the behaviour of the agent.

Landlords often market their properties with multiple agents.

Charmaine Baptista, of Writers Relocations, in India, reported on a volatile real-estate market where all cities were different. Demand exceeded supply, and expats’ desire to live in ‘pockets’ also pushed up prices.

Ms Baptista pointed out that it was important to bear in mind that most landlords didn’t live in the area, which could slow things down. Most property is let unfurnished. The turnaround time for lease vetting and signing can be time-consuming. The authorised signatory of a lease must be in the city and present at the time of registration, and it is imperative that the expat knows this.

Charmaine Baptista advised HR to conduct regular market surveys on rental prices, in order to set accurate budgets. Streamlining the lease approval procedure was also recommended, preferably using a standard company lease.

Serviced accommodation thriving

I took the opportunity of meeting Craig Ryan, managing director of Oakwood Worldwide’s APAC region, for an insight into the serviced apartment market in Asia Pacific.

A number of useful insights into the property and serviced accommodation markets in Asia Pacific emerged from Worldwide ERC’s recent conference. Fiona Murchie reports.

PROPERTY


SECTION HEADINGPROPERTY

Oakwood is an established brand known and trusted in the relocation marketplace, certainly in the UK and Europe and its home base, the USA. It has done much to establish its credentials as a safe accommodation haven for international corporate clients keen to ensure the safety and security of their expatriate populations around the world.

One of the few truly global serviced apartment brands, Oakwood is now setting its sights on further-flung, more challenging destinations, where its credentials for providing secure, trackable accommodation that ticks all the compliance boxes should stand it in good stead.

The world is changing, and, while top-of-the-range accommodation with flexibility is still high on agenda, the bigger corporate clients are looking for solutions across their destinations. The one-size-fits-all solution, even with a number of inbuilt brands, is no longer enough for companies sending teams to Africa, India and other parts of Asia Pacific, as well as the traditional expat and business traveller destinations.

Watch this space to see how Oakwood and other global players address today’s requirements from industry sectors like oil and gas, mining, infrastructure and technology, which are pushing into new markets and territories. The solution appears to be to offer clients greater choice and more customised solutions in key markets around the world

Oakwood has just signed a corporate and serviced apartment joint venture with Mapletree Group that aims to open more than 100 new properties around the world over the next five years. The joint venture will draw on Mapletree’s expertise in Asia and Oakwood’s strengths in Europe and North America to more than triple the number of branded Oakwood buildings across the globe.

Bill Foltz, Oakwood’s chief financial officer and architect of the joint venture agreement, says, “Mapletree saw the opportunity for investment into the corporate and serviced apartment sector and wanted a global platform and world-class brand to grow their portfolio. This was a unique opportunity for us to align with an investor who has the size and capability to allow for rapid expansion of our brand.”

Before the announcement of the joint venture, Oakwood was already well established in the Asia Pacific region, with a growth agenda. It is looking to double its current branded portfolio of 28 properties in the next three to five years. Key locations for potential development include Singapore, Sydney, Chennai and Beijing, as well as other first-and second-tier cities in China, and Hong Kong.

Craig Ryan told me that two of the company’s biggest markets were Sydney and Singapore, and, while Oakwood does not currently have a branded presence in either market, it provides access to properties in both cities through its vetted supplier network of more than 325 apartment providers in Asia Pacific.

An Australian himself, Mr Ryan commented on the position in Australia, confirming the intelligence supplied

by the Global Serviced Apartment Report 2013/14 that the country is seeing corporate customers doing business outside major city centres, gravitating towards regional and suburban hubs where government infrastructure is supporting industry growth and development. This, in turn, is driving demand for extended-stay accommodation. Serviced apartments in Australia now represent 25 per cent of the total accommodation market, up from just 10 per cent in 1999. This figure will rise to 30 per cent in the coming years.

Craig Ryan agreed that serviced apartments were in high demand and short supply in Australia. He added, “We continue to expand our supply chain network across the Australian and New Zealand markets. There is definitely a great opportunity to expand our inventory for this market, as we continue to see an increase in both inbound and inter-country corporate travel.”

In tandem with its development plans for branded property, Oakwood continues to expand its supplier network throughout Asia Pacific. It can currently provide clients with access to more than 400 properties across the region, which enables it to deliver accommodation solutions for both short-term and extended-stay requirements in most cities in Asia Pacific.

Of course, there are plenty of serviced apartment providers already well established in the region. The Ascott Limited, for example, is continuing to grow rapidly, having secured contracts to manage its first property in Burma and its third in Wuhan. Recent new openings have been in Kuala Lumpur and Suzhou.

Frasers Hospitality is on target to double its presence in China to 23 properties within the next two years, strengthening its presence in Beijing, Shanghai, Guangzhou and Shenzhen, as well as key second- and third-tier cities.

With the growth of fifth- and sixth-tier destinations in China, there is plenty of scope for development. Project teams need basic accommodation in these cities, while more established cities provide the more luxurious apartments required by busy executives and families on the move.


Market snapshot:

6-6.2%

3 or 4-bedroom apartment/house

30 mins or less

24

2 months

5%

$15,000-$20,000

31

HONG KONG

Market snapshot:

53.5%

2 or 3-bedroom apartment

1 hour or less

12

8 weeks

100%

$22,500

31

BEIJING

Market snapshot:

53.5%

1-bedroom apartment

1 hour or less

12 or 24

4-12 weeks

<5%

$40,000

31

NEW YORK


Across the Asia Pacific region, property markets continued to experience mixed fortunes during the first half of 2014.

The corporate lettings market has picked up over the last year, according to a new report.

For its Global Corporate Lettings Review 2014, estate agent Knight Frank analysed market trends and lettings practices in key cities around the world, with a particular focus on the UK, the US, Hong Kong and Singapore.

In 2013, the number of lets to corporate tenants in New York rose by 21 per cent compared with the previous year. The comparable figures for London and Hong Kong were 7 per cent and 16 per cent respectively. However, the report reveals, while demand for corporate accommodation is up, cost remains an issue, with housing budgets generally lower than they were before the financial crisis.

This is the result of companies keeping an eye on costs and a shift towards personal leases as individuals opt to make savings on their housing allowances.

In Hong Kong, 87 per cent of corporate lets agreed by Knight Frank in 2013 were personal leases. In New York, the shift towards this type of lease has resulted in a number

of firms offering relocating employees cash lump sums as part of their benefits packages. This, in turn, has resulted in an increase in companies offering managed lump-sum programmes, under which they take control of all aspects of the move, including housing.

Landlords, meanwhile, have been more willing to negotiate on price in order to keep void periods to a minimum and secure good corporate tenants, many of whom are more cost-aware than in previous years.

In its 2013 report, Knight Frank highlighted a shift away from traditional sectors, with demand from employees working in the finance industry lower than in previous years. This trend has continued throughout 2013.

Luxury goods, legal and financial services firms have dominated the corporate relocation environment in Hong Kong, the firm says. Hong Kong has also seen a rise in the popularity of serviced apartments.

APAC luxury homes see price growth strengthen

According to Knight Frank’s latest Prime Global Cities Index Report, house-price growth during 2013 was strongest in Jakarta, with prices there climbing 37.7 per cent year

Through a round-up of property news and survey results, we consider how Asia Pacific’s property markets have fared during the first six months of 2014.

APAC PROPERTYIN FOCUS


PROPERTY


on year. Mainstream markets in Hong Kong and London outperformed their prime counterparts in 2013.

Thomas Lam, Knight Frank’s director and head of research and consultancy for Greater China, says that Asian results provide a mixed picture because the cooling measures aimed at ‘cooling’ housing markets, introduced in 2012 and 2013, have had varying degrees of success.

In terms of price growth, Beijing leads the field, prices of luxury property there having risen by more than 17 per cent in 2013, while Hong Kong saw prices fall by 2.2 per cent, mainly owing to cooling measures introduced over the last few years.

New regulations in China

China and Malaysia are two of the countries which have introduced policies or regulations that affect rental or purchase practices, in an effort to cool their housing markets.

In Beijing, says Shelley Warner, China specialist at relocation network Reloc8, the government has disqualified from residential property purchase non-Beijing residents who do not hold five years of social insurance payment certificates, foreigners without year-long work/live in Beijing

permits, and Beijing families with two or more houses.

The many households affected must rent instead, or purchase prior qualification, she adds. Not surprisingly, this has led to an increase in rents.

In Shanghai, following the effects of the government’s cooling measures on the sales market, property prices increased by more than 20 per cent in 2013. Rents are also continuing to climb.

Shelley Warner says, “It is difficult to apply for mortgages. There has been an increase in the minimum down payment for second-home buyers, from 60 per cent to at least 70 per cent of the property’s transaction value.

“There has been a rise in the number of payment years of social security fees or taxes for families that don’t hold Shanghai’s permanent residency permit, or Hukou, from at least one year to two years before they can buy homes.”

A Shanghai Hukou holder, she explains, can only hold two properties per family. Those who do not hold a Shanghai Hukou can only purchase one property.

The future supply of luxury property in Shanghai has been constrained by government restrictions on developers. Increasing property tax raises the cost of holding multiple properties, causing investors to seek opportunities to sell their properties.

Malaysia seeking to curb speculators

In Malaysia, says Triona Chelliah, Malaysia specialist at Reloc8, sale prices in Kuala Lumpur City Centre have increased steeply, resulting in higher rents. Prices in other areas of Kuala Lumpur are stabilising.

In Penang, too, property prices have risen, thanks to increases in the cost of land and materials, as well as inflation.

Ms Chelliah says that the Malaysian government is taking steps to counteract soaring property speculation. Real Property Gains Tax has been raised to 30 per cent for the first three years of purchase, and the minimum price for foreign purchase has been increased to MYR1 million.

A levy of 2 per cent for Malaysians and 3 per cent for foreigners on all property transactions came into effect on 1 February.

It’s clear that, for relocating employees and those managing their moves, finding accommodation in Asia Pacific presents a range of challenges. Re:locate will continue to keep you informed, via our print and digital magazines and our website.

Market snapshot:

62.3%

1 or 2-bedroom apartment

30 mins or less

12

6 weeks

85%

$30,000

31

LONDON

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Relocate Global Asia Pacific, Summer 2014

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Transcript of Relocate Global Asia Pacific, Summer 2014