Pricoa(SM) Relocation European Survey Finds Business Expansion and Multi-Nationalism Spur International Job Assignments
PARIS--(BUSINESS WIRE)--March 6, 2006--Businesses participating in a survey by Pricoa Relocation, a Prudential Financial, Inc. (NYSE: PRU) business, indicated that the most common reason they re-assign employees across national borders is to help ensure the success of the company's expansion into new markets.
Representatives from 131 European-based companies from 12 countries and 30 industries participated in European Mobility Trends: A Best Practices Survey from Pricoa Relocation, which examined short- and-long term international job assignment trends. The majority of respondents (57 percent) indicated that the greatest business driver for international assignments was the need to support market expansion initiatives; and the primary reason (70 percent) specific individuals are sent on international assignments is to enable the transfer of knowledge. Tied for second place (23 percent) for key business drivers are merger and acquisition activities and start-up efforts in the destination location.
"Mergers and acquisitions and start-ups are, in actuality, a form of market expansion. Therefore, growing the business in new, high-potential markets is clearly a desired outcome of using international assignments in Europe as a key staffing strategy," said John O'Connell, senior vice president, International Operations, Pricoa Relocation.
"Multi-nationalism is a major business trend. Therefore, global service delivery has become a major focus in the relocation industry. As the intricacies of international mobility continue to increase, it becomes an absolute imperative to work with service providers like Pricoa Relocation that are skilled in breaking down the complexities of global assignments," said O'Connell.
Another European mobility trend uncovered in the survey was the increasing preference for short - rather than long-term international assignments, for which respondents forecasted a 70 percent increase over the next two years. "The increasing use of short-term assignments is actually a global trend. Short-term assignments are expected to continue at an ever-increasing rate as will an overall mix of other types of assignments, such as traditional long-term assignments, permanent international relocations as well as alternatives such as cross-border commuter assignments and rotator assignments," noted O'Connell.
The survey also found that the top three destination countries for assignees in Europe were the United Kingdom, Germany and France. Increases in volume are expected for the Czech Republic, Italy, Russia, Spain, Poland, Belgium, and the Netherlands. "The most significant implication of these findings will be in housing and destination services," said O'Connell. "Volume increases will mean greater demand and competition for housing and will thus drive market costs higher."
O'Connell added that the survey found that housing costs are the fastest rising expense associated with international assignments. "We are seeing certain markets where housing costs and rents are going up on a monthly basis because of limited inventory, especially in developing Eastern European markets and major centers such as London, Paris and Moscow," said O'Connell.
In addition, companies participating in the survey identified global service delivery, global pension solutions and improved assignment management as the top three concerns on which the international human resources consulting and the relocation industries should focus.
To download a complete report of the survey findings visit www.pricoarelocation.com/survey.
PRICOA Financial is a brand name and service mark used by Prudential Financial, Inc. of the U.S. and its affiliates in the UK and select countries outside the United States. With more than $532 billion in total assets under management as of December 31, 2005, these companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.pricoarelocation.com
*(Prudential Financial, Inc. of the United States is not affiliated with Prudential Plc., which is headquartered in the United Kingdom.)
Prudential Financial, Inc.
Karen Oliver Howell,