While increase in head count, and emphasis on rewards and recognition program remains the highlight this year; cultural compatibility/acclimatization for expats and lodging cost, are the prime restraining factors for moving human resource globally

1. Special Report
HR and Employees Segment
Analysis
While increase in head count, and emphasis on rewards and recognition program remains the
highlight this year; cultural compatibility/acclimatization for expats and lodging cost, are the
prime restraining factors for moving human resource globally
by Ashwin Razdan
T He analysis of HR practices and employees
during the GS100 study, clearly shows signs of
a recovering economy. Last year, there was a
substantial increase in hiring across the service pro-
vider landscape. While the average increase in head
count has been 23% across the respondent to the
survey; Band 1 (with annual revenue between 1M-
10M) companies saw the highest growth at 31% and
Band 3 (with annual revenue between 100M-1B) had
the least with 16%.
Over the last one year, service providers made 4 (with annual revenue of over 1B+) with 117 em-
significant investment to decrease the attrition rate. ployees to a single HR personnel, and 49:1 for Band
The top 2 areas for this being a more comprehensive 1 companies.
reward and recognition program, and increase in bo- Increasingly, companies have realized the poten-
nuses. This was closely followed by healthcare ben- tial of rotating their project team across destinations.
efits and rotation among project teams. nearly 63% It has not only decreased attrition rates but in many
in Band 1, focused on community service programs ways enhanced the skill-sets of high performing indi-
while equity or stock ownership programs led the viduals. However, there are a number of restraining
way in Band 2 (with annual revenue between 10M- factors for such a campaign. Almost 57% companies
100M) and 3. believe that cultural compatibility/acclimatization
While over 70% of companies have an initial train- for expats is the leading constraint followed close-
ing program of over 3 weeks and nearly 55% have ly by lodging costs. Though these factors remained
an annual ongoing training program for 10 days and a consistent trait amongst companies in Band 1, 2
above; nearly 5% still continue have the same for less and 3, it was not the case in majority of the Band 4
than 4 days. companies. 33% of companies with over 1 Billion in
The ratio of employees to HR personnel stands turnover thought of housing availability, quality and
at 74:1. It is significantly higher in the case of Band security for expats as the prime restraining factor.
Average number of days (per year) for Restraining factors for moving human
ongoing training resource globally
40
35
30
30
25
20 20
15
10 10
5
0
0 1. Lodging 2. Cultural 3. Housing 4. Access to
Over 15 10-15 5-9 3-4 Less then Cost Compatibility/ availability, health care/
days days days days 3 days Acclimatization quality and Insurance
for Expats security for planning
Expats
GS100-2010 www. globalservicesmedia.com GlobalServices 17