Almost all senior roles today include an international dimension,
making it difficult to manage businesses across borders and on different continents without exposure to a range of cultural and working environments. Management mobility is seen as an
important asset, and executives with international experience have
a distinct competitive advantage. Clients these days rarely specify
a desired nationality when hiring. In fact, many organizations are transforming their structures from being country-focused to being truly functional and global, thus increasing their need for international experience.
This demand for international experience is likely to increase
dramatically over the next five years. It is already seen as an important indicator of agility, intellectual curiosity and entrepreneurial spirit — key indicators of success in a globally
integrated company. This is particularly important in western
Europe, where a career usually requires extensive cross-border
mobility.
International experience is evident among executives in companies seeking geographical expansion in an increasingly
global market. Executive mobility, a rapidly increasing trend among executives from emerging markets who are particularly
hungry for knowledge, creates internal competition as well as
drive. This provides organizations with a cultural breadth and
creativity that fuels constructive debate, yielding more — and
better — solutions.
Mobility in functional roles
Despite the cost barrier, there is a high incidence of mobility
among functional roles in Europe, particularly finance, HR,
technology and marketing. This mobility is driven by a number
of external trends including globalization, cross-border education
and migration in western Europe. Internal factors also play a part,
with companies needing to integrate operations and regional and
global levels in order to grow. In addition, international mobility is
critical in helping companies move from poorly assimilated local
structures to integrated global organizations capable of competing
on a global level.
The increase in the proportion of senior executives, who have
lived and worked abroad, shows how functional roles are changing. Traditionally, executive mobility was highest in general management, commercial and marketing roles, but HR is fast
catching up, proving that senior HR roles frequently reach beyond
local laws and regulations.
International experience will soon be a requirement for HR
executives expected not only to act as change agents and employee champions, but to be business partners on a global level. However, despite the recognition international experience is gaining in terms of its value to organizations, there is still a misconception where HR is concerned that only locals make good HR managers. While this may be true for labor relations work involving works councils and unions, the HR scope is wide enough to allow teams to include a mix of local and international skills.
Who’s going where?
The UK is the most popular destination for executives relocating in Europe followed by Switzerland, France, Germany and Italy. Executives with experience in Brazil, Russia, India and China are also in demand. The unique mix of business leadership and
operational skills required in these very competitive markets makes experience in those countries extremely valuable and ensures that executives with such experience are highly sought
after by organizations wishing to expand into those regions.
Executives with emerging market experience can also add
tremendous value in a developed region.
In our survey of 520 executives who had spent time moving from one country to another for new career assignments, Italians ranked as the most ubiquitous, followed by French, German,
Dutch and UK executives. Swiss executives had made the fewest
international moves.
Considerations for the mobile executive
The reluctance of the Swiss to relocate stems primarily from
concerns over family. While large corporations can ensure that
spouses’ needs are taken care of during a move, this is not always
the case in smaller companies which do not have the resources but nevertheless require executive mobility to strengthen competitiveness. The problem is addressed by identifying management talent early so that any international moves can be
made at a time when the executive’s personal circumstances make
relocation easier.
Increasing globalization is making intercultural competence a necessity, requiring executives to become more flexible and
develop lifestyles to accommodate their increasing mobility.
Nevertheless, the influence of family when deciding whether to go
abroad should never be underestimated — decisions over schools, lifestyle and work for spouses are the most influential factors for many people when deciding whether — and where — to work abroad.
How an organization approaches executive relocation has a
huge impact on the success or failure of an appointment. Good,
practical relocation support from an empathetic HR department is critical, especially regarding children’s education. Most people are willing to make changes to their lifestyles as long as their children’s education is consistent.
An international role can take various different forms. It can mean living in a foreign country which is the base for managing a region; managing a business in a foreign country or region while resident in your own country; or regular travel from a home base to a region or specific country. The type of mobility involved may depend on the company’s requirements and the executive’s
preference. For executives to thrive in international roles they must have not only the skills but also the personality to suit the demands. They must also develop an understanding of, and respect for, the culture they find themselves in.
Advantages of executive mobility
The most obvious career benefit to the individual of an international assignment is the acquisition of experience and skills not available in the home country. International experience allows executives to see beyond the often superficial differences that exist from one country to the next, understand the similarities and recognize the common principles.
The mere fact that an executive seeks out international experience
shows a degree of entrepreneurial thinking and a willingness to take calculated risks — qualities attractive to companies looking for leaders to boost their company’s competitiveness on an international level. In Switzerland this is especially appealing given that many Swiss see international engagement as a threat
rather than an opportunity.
While the benefits to career and company of having an individual
live and work in another country are evident, there are also
drawbacks. Working in local roles in different countries can result
in that individual adapting so well to the local culture that he or
she loses sight of the broader picture. Depending on the country
of posting, the individual may also get lost in the system, lose
visibility and find it difficult to repatriate.
An organization can ensure that those based abroad are not
side-lined at a critical point in their careers by providing career
sponsors in their home country and career planning beyond the
expatriate assignment. This also applies to individuals removed
from highly visible HQ roles to smaller, country roles. In addition,
they should be included regional meetings and training.
Conclusion
Despite the advantages of and the need for executive mobility,
companies are nevertheless aware that executives with
international experience cannot replace local staff. The value of
international experience dwindles over time, making it important
that mobile executives do not lose touch with their own countries.
Research shows that executives working in a different country add the most value to their roles after two to three years in that position. After five years, this value decreases and at the same time reintegration into their own countries becomes more difficult.
Executives also need to bear in mind that while mobility is
recognized as a key to career success and progression, it does not, in itself, guarantee a successful career move. Results still
determine career success. For companies, the importance of mobile executives will continue to increase substantially and demand for international experience is likely to exceed the availability of qualified talent.
Notes
This article forms part of Switzerland Point of View: Winter 2006.