A new survey by Mercer highlights how international assignments for professionals are rising - with important implications for wealth managers seeking to serve this population segment.

A recent survey by the wealth division of RBC (Wealth Through the Prism of Culture and Mobility) found that “a global, nomadic approach to personal and professional life is a key factor to the success of millionaires around the world". And for many of such footloose persons, the destination they visit is Asia. 

In light of this, it may come as no surprise that more professionals are willing to be seconded abroad. According to research by consultancy firm, Mercer, short- and long-term overseas assignments by companies are expected to increase by 70 and 55 per cent respectively, in 2013.

Mercer’s Worldwide International Assignments Policies and Practices report said that for the last two years there has been an increase in the overall number of international assignments from 53 per cent for short-term and 52 per cent for longer-term since 2011 and 2010. This year, China, the US, Brazil, the UK and Australia emerged as the priority destinations in their respective regions for expatriates.

“International assignments have become more diverse to meet evolving business and global workforce needs. Relatively low pay increases in some regions and pressure to attract and retain talent have spurred many companies to embrace a wider range of global mobility strategies to incentivise their high performers,” said Phil Stanley, Asia Pacific global mobility Centre Of Excellence leader.

The survey also found that 39 per cent of companies say that employees with international experience are promoted more quickly.

Trends

The likelihood of expatriates being female has marginally increased from previous years, with the average percentage of female assignees standing at 13 per cent, just 3 per cent higher than two years ago. Latin American and Asia Pacific companies show female average percentages lower than those of North American and European companies. Family-related issues, such as concerns over children’s education in a new location, remain a major obstacle to employee mobility.

“Career management” ranks as the next most important issue, except for European and Asia Pacific companies, which rate lack of “package attractiveness” as the second-biggest obstacle to mobility, according to the survey.

Findings show that the duration of long-term assignments is trending down. The average duration of a long-term assignment is now slightly less than three years (two years, ten months). The average minimum duration is one year, five months, and the average maximum duration is five years, four months.

The average age of long-term assignees is between 35 and 55 years.  For short-term assignments, the minimum and maximum average durations worldwide, stand at respectively 4, 8 and 13 months. The average age of short-term assignees tends to be younger, with a similar proportion of companies in the below 35-years old bracket and in the 35-to-55-years old bracket, the report found.

Mercer is a global consulting company operating in the fields of talent, health, retirement, and investments. It is a wholly owned subsidiary of Marsh & McLennan Companies, a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital. Mercer’s 19,000 employees are based in more than 40 countries.