Global HR

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Global HR Relocation Solutions
2007 The Relocation Boom Israel Fruman, Sep
2007 8 Hamelacha St. Netanya 42505 Israel. Tel
972.9.865.8616 Fax [phone] www.oriil.com
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Definitions

• Relocation to become established in a new
  residence of place of business

• Expatriate an employee on a work assignment
  outside of his home country for a definite period
  of time.

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Number of Israeli Expatriates
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Destination Countries

• First Tier
• US
• UK
• China

• Second Tier
• Australia, Hong Kong, Singapore
• France, Germany, Netherlands
• India
• Russia

• Third Tier
• Canada
• Taiwan, Thailand, Japan
• Belgium, Italy, Spain, Switzerland
• Czech Republic, Hungary, Poland, Romania
• Argentina, Brazil, Mexico

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Traditional Reasons for Relocation

• Global Business Opportunity
• Technology/Knowledge Transfer
• Span of Control
• Global Market ? Global Companies
• Career Development
• Dead Wood Solution
• More than the cow wants to give milk the calf
  wants to nurse (Rabbi Akiva)

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New Reasons for RelocationAcquisition by a
Global Company

• Brain/Talent Transfer
• Ability will Never Catch up the Demand for It
  (Malcom S. Forbes)
• The Brain Drain syndrome

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New Reasons for RelocationCEOs Move to the US

• The old trend, hire a US CEO, did not delivered

• The New Trend If the Mountain wont come to
  Muhammad Muhammad will come to the mountain
  (Muhammad)

• The trouble with following the herd is stepping
  in what it leaves behind (The Robertson Stephens
  Fund)

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New Reasons for RelocationThere is a New Guy
in Town

• New industries get into the game (Real-Estate,
  Health Services, Food, Insurance)

• Ignoring laws and regulations, lack of policy
  Money can Buy it All mentality ? When the
  cannons are Heard The muses are Silent (Truman
  Capote)

• History teaches us that men and organizations
  behave wisely once they have exhausted all other
  alternatives (Abba Eban)

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When the Party is OverCOST

• The traditional relocation (family on a Long-Term
  Assignment) is highly expensive.

• Alternatives
• Pre-Family/Post-Family Relocation
• Short-Term Assignment
• One-Way Transfer
• Localization
• Business Trips
• Hire local employees

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Expatriates/Local Ratio (HRBS)
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When the Party is OverUndesired Termination

• Only 9 Terminate during the relocation but
  this is just the peak of an Iceberg.

• Once returned
• 23 Terminate during 1st year
• 20 Terminate during the 2nd year

• Reasons
• Hidden Turnover
• More marketable assets
• Pay cut
• Perceived Lack of opportunity

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When the Party is OverInsurance Exposure

• Health Insurance
• Social Security
• Long-Term Disability Insurance
• Life Insurance
• Pension
• The Laissez Faire Approach ? The Widow on HQ
  Stairs Test

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Israel"?? ??? ?????..."
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Pension DiscontinuationActuarial Impact