|
The severity of the recession and the credit market freeze have financial services companies slicing the number of employees they send overseas. "In the current environment there's a volume reduction and a reduction in the scope and generosity of the benefits being provided," says Scott Sullivan, executive vice president of Brookfield Global Relocation Services, the Woodridge, Ill., firm whose recently released survey included the findings.
The magnitude of the change is so great that even after the economy recovers, employees may never again get the generous international relocation packages and pay seen in the past. That's because cost scrutiny has companies questioning the value of sending Americans to do overseas jobs rather than hiring local talent.
"It's all about supply and demand," Sullivan says. "Do you need to send a banker from London to Shanghai, or can you send one from Hong Kong? There are native Chinese who have studied abroad and worked internally and can be sent back home to work with fewer issues over visas and lifestyle expectation."
Following Stricter Rules
Employers are also applying the rules more strictly and not making a lot of exceptions as they attempt to save money. "They're giving a lot more attention to the business rationale, the front-end cost projections for each assignment, and have also increased the level and number of people involved in the authorization process," says Sullivan.
That's a shift from the past when banks would look first to New York or London staff to fill international assignments. Indeed, Sullivan says that when overseas assignments are made, "one of the objectives for that person is to find their replacement locally, so that when they leave … (the firm doesn't) have to resort to an international transfer again."
That likely means not only fewer foreign opportunities for industry professionals, but smaller relocation packages for those who do seek international rotations. On top of that, there may not be a guaranteed U.S. job waiting when the assignment ends.
Another factor influencing international assignments is an increase in the number of people interested in working overseas. "Companies are posting their international opportunities on their internal Web sites and there's more interest in getting that experience by younger professionals," Sullivan says.
Overseas Competition
It's not just Americans who are interested in international assignments: Investment bankers from around the globe want to travel to new markets, too. So, companies have a wider pool of candidate talent to draw from as they seek to fill positions.
With the shift to global competition for jobs comes a shift from American pay standards to global standards. If you're interested in a job in Jakarta, Indonesia, the company will still get you there, but you might be paid the going Indonesian rate rather than the U.S. rate for your job, Sullivan warns.
So what's the bottom line for Americans? “It's a tough world out there and there's lots of competition, so look beyond your local geography," Sullivan suggests. "Look at emerging areas as new financial centers - the Middle East, Eastern Europe, Asia, Latin America - where your skills are in demand. And look at sovereign wealth funds or working for other governments' investment agencies. But, also understand you're going to need to keep in perspective your needs and requests in terms of getting there."
If you're a rock star here at home, your best bet may be to apply your skills in an academic or training position outside the U.S. "Think about how you can monetize your experience in trading fixed income beyond just being a trader to stay employed, earn money and pick up international experience until we're out of this incredible drop," Sullivan says.
RECOMMEND THIS ARTICLE
You must be logged in
to recommend articles
|
Share Article
