Global Markets, Record Earnings, Driving Unprecedented Demand for International Job Assignments, Reveals Annual Global Relocation Trends Survey

Global Markets, Record Earnings, Driving Unprecedented Demand for International Job Assignments, Reveals Annual Global Relocation Trends Survey

June 11, 2007

Financial and Cultural Strains of an International
Assignment Take Their Toll on Spouse, Children and
Families, According to GMAC Global Relocation Services


    OAK BROOK, Ill., June 11 /Xinhua-PRNewswire/ -- Driven
by a booming global economy, more than two-thirds (69%) of
multinational corporations reported an increase in the
number of international assignments in 2006, the highest
percentage in the history of the Global Relocation Trends
Survey, published annually by GMAC Global Relocation
Services. Continuing the optimistic tone, 65% of companies
intend to send even more employees on assignment in 2007 as
compared to 2006.  

    ( Logo:
http://www.newscom.com/cgi-bin/prnh/20070611/CLM006LOGO )

    With the share of total revenue generated from outside
of a company's headquartered country rising (according to
41% of companies responding to this survey), the demand for
experienced international management talent has never been
greater. However, the worldwide survey of 180 companies
points out that employees are increasingly turning down
international assignments, making the job of finding
suitable candidates one of most critical business
challenges for companies today. 

    Companies rely heavily on expatriates to achieve a
number of business objectives, such as filling critical
skills gaps, transferring technology and corporate culture,
launching new endeavors, and developing business
relationships. In addition, nearly a quarter (23%) of the
survey respondents reported that the primary purpose of
their international assignments is to build management
expertise. 

    "Every year, the Global Relocation Trends survey
uncovers new and interesting data and information about
important global mobility issues, and provides companies
throughout the world with invaluable insights into current
and emerging trends," said Rick Schwartz, president
and CEO of GMAC Global Relocation Services.

    Since it began in 1993, the annual Global Relocation
Trends Survey has been the definitive study of companies'
global employee-relocation practices, policies and
projections.  And as it does each year, the survey paints a
comprehensive picture of evolving trends and emerging issues
facing companies of all sizes that rely on an international
workforce. For information on how to receive the survey, go
to http://www.gmacglobalrelocation.com/grts06.html

    "The survey provides useful information for
companies that operate in the global marketplace,"
Schwartz added.  "On one hand, companies that conduct
business internationally are confident as a growing number
are expecting to increase their global workforces this
year.  On the other hand, there are warning signs about the
potential impact international assignments have on couples
and their families.  Our hope is that companies review
these findings as a whole, and then use them to re-examine
and, if necessary, refine their relocation programs and
policies to ensure they are putting their programs and
their employees' best interests first and foremost."

    This year's survey findings identify three major issues
responsible for much of the resistance to accepting an
overseas assignment

    Family concerns: 

    (including children's education, family adjustment,
partner resistance, difficult location, cultural
adjustment, assignment length and language): These
challenges can be overcome by cross-cultural training and a
successful transition to the new culture. Unfortunately,
only 21% of the companies surveyed require cross-cultural
training for their assignees. Even more ironic is the fact
that 77% of companies surveyed said cross-cultural training
has great or high value. Year after year and survey after
survey, cross-cultural training is perceived as critical to
the success of international assignments and yet many
companies do not insist on higher levels of participation
in such programs.

    Spouse's or partner's career: 

    When asked to identify the chief reasons for refusing
an assignment, concerns about a spouse's or partner's
career was cited as the second-highest reason for
assignment refusal, behind family concerns. While 82% of
employees were accompanied by their spouse or partner on
international assignments, an overwhelming majority of
these spouses or partners put their own careers and
aspirations on hold during their time overseas. Fifty-nine
percent of spouses or partners were employed before their
significant other accepted an international assignment, a
mere 8% were employed during the assignment, the lowest
percentage since 2000.  This trend may be increasing
financial pressures and straining relationships before,
during and after the assignment. 

    Career Aspirations: 

    International assignments can have wide-ranging effects
on a career. However, what those effects are seem to be one
of the least understood phenomena of international
mobility.  Career aspirations were cited third by
respondents as a reason for refusing to accept an
assignment.  This would seem to indicate a negative
perception of international assignments on the part of
employees. 

    However, human resources professionals tend to believe
international assignments actually have a positive effect
on employees' careers.  For example, 31% of human resources
professionals surveyed reported that an international
assignment leads to faster promotion; 27% reported that it
makes it easier to obtain a new position in the company;
and 26% reported that expatriates change employers more
often - commenting that expatriates are attractive
recruitment targets because of their international
experience. 

    "The truth probably lies somewhere in the
proverbial 'gray area,'" said Schwartz.  "That's
what's so intriguing. The survey raises several new
questions as we continue to explore the myriad
opportunities and challenges involved with international
assignments."

    The survey also found that:

    -- More women are accepting assignments overseas.
Twenty percent of
       expatriates were female; the historical average is
15%. 

    -- Ten percent of assignments were not completed due to
expatriates
       returning from their assignments prematurely. Asked
to name the
       principal reasons for early returns from
assignments, family concerns
       (32%) topped the list, followed by accepting a new
position within the
       company (23%), early completion of the assignment
(14%), career
       concerns (6%), and cultural adjustment challenges
(4%).

    -- Twenty-four percent of expatriates left their
company during an
       assignment; 28% left within a year of returning.

    -- Sixty-nine percent of companies said they supported
spouses with
       language training, 36% sponsored work permits and
30% provided
       education/training assistance.

    -- Forty-three percent of companies required a
cost-benefit analysis to
       justify the international assignment.

    -- Twenty-eight percent of respondents were considering
outsourcing
       international assignment management within two
years.

    -- China, India and Russia were the primary emerging
destinations-and also
       were cited as the most challenging locations for
expatriates.  The
       following issues were mentioned frequently: housing
and living costs;
       immigration challenges; payroll and employment. 

    About the Survey

    The 2006 Global Relocation Trends Survey Report is the
12th report issued by GMAC Global Relocation Services (GMAC
GRS). Issued since 1993, these reports have come to be
regarded as one of the most reliable and respected sources
of global mobility data and trends. The longevity of this
survey enables the company to compare each year's results
with "historical averages," which help gauge the
relative importance of annual variations. This year's
survey contained 107 questions answered by 180 respondents
representing small, medium, and large organizations with
offices located throughout the world. Together, these
companies managed a worldwide employee population of more
than 8.4 million.  For 48 percent of the respondents, the
company headquarters were located in the Americas while 49
percent of respondents worked for companies with
headquarters located within EMEA.  Three percent were from
Asia Pacific nations. For additional information on how to
receive the 2006 Global Relocation Trends Survey, go to
http://www.gmacglobalrelocation.com/grts06.html .

    About GMAC Global Relocation Services

    GMAC Global Relocation Services, LLC (GMAC GRS) (
http://www.gmacglobalrelocation.com ) is a leading,
full-service outsourcing partner of end-to-end employee
relocation, assignment management and mobility consulting
services for multinational organizations worldwide. The
company serves corporations in 110 countries and manages
more than $1 billion in relocation-related transactions.
GMAC GRS is a business unit of GMAC ResCap (Residential
Capital, LLC), a leading real estate finance company,
focused primarily on the residential real estate market in
the United States, Canada, Europe, Australia and Latin
America.

    GMAC ResCap ( http://www.gmacrescap.com ) is an
indirect wholly owned subsidiary of GMAC Financial
Services. GMAC Financial Services is a global, diversified
financial services company that operates in approximately
40 countries in automotive finance, real estate finance,
insurance and commercial finance businesses. GMAC was
established in 1919 and currently employs about 31,000
people worldwide. At Dec. 31, 2006, GMAC held more than
$287 billion in assets and earned net income for 2006 of
$2.1 billion on net revenue of $18.2 billion. For more
information, please go to http://www.gmacfs.com .


    For more information, please contact: 

     Brett Weinberg
     GMAC ResCap
     Tel:   [phone]
     Email: [e-mail]

     Hugh Siler
     Siler & Company PR 
     Tel:   [phone] 
     Email: [e-mail]

     Web:  
http://www.gmacglobalrelocation.com/grts06.html
            http://www.gmacglobalrelocation.com
            http://www.gmacrescap.com 
            http://www.gmacfs.com