Globalisation Continues to Drive Expat Employment in South Africa

Despite the recent worldwide economic slowdown, globalisation is stimulating the growth of expatriate employment internationally with South African companies also getting in on the act as they seek to grow their footprints in the rest of Africa and further afield.

While multinationals keen on expanding in Africa are increasingly deploying their staff to the continent to build local operations, South African companies - particularly in banking, retail, construction and telecommunications - are sending their staff to various destinations to grow their international operations.

"Expatriates are not a dying breed, they are still very much a part of the business strategies of many companies seeking to expand their activities beyond their home bases," says Siobhan Cummins, managing director Europe Middle East and Africa of ORC Worldwide, a leading world consultant in expatriate pay and working conditions, which has a working association with Johannesburg-based management consulting firm, P-E Corporate Services.



"Importantly, many multinationals are using expatriate staff to transfer skills to local staff, especially in emerging markets, and to leave a legacy that benefits the company and the country."

Cummins, who recently addressed workshop sessions on expatriate pay and benefits in Cape Town and Johannesburg, says expatriate assignment types and terms have changed recently with companies now sending staff on shorter term projects and assignments lasting from one to three years, rather than much longer foreign postings that used to be the norm.

Another change is that companies are paring down the assignment package and no longer paying large tax-free gratuities - sometimes 25 percent-35 percent of total pay - on completion of an assignment.

Overall, companies are focusing on cost reduction while still trying to make the assignment package attractive to employees.

"Assignments are frequently seen as part of overall career development plans for individuals and as a way of implementing corporate strategies internationally," she says, adding that increasing Foreign Direct Investment in Africa will boost the number of expatriates being assigned to various countries.

For South African companies sending staff to other parts of Africa and overseas, Cummins stresses the need for employers to have clear, well-researched policies which deal with compliance with national customs and laws, cost containment and repatriation of staff once their assignment has been completed.

"It is vital for expatriate staff to have a proper job description and objectives, be aware of their company's strategy, and know what they are coming back to once their foreign stint is over.

"It is also critical that staff fully understand the laws of the countries they are being sent to or companies can suffer reputational damage due to the actions of their employees," she says.

source: http://www.busrep.co.za/index.php

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