#Japan #Tokyo #Family Support #EY Mobility Survey #Overseas Employees

EY's Findings on Overseas Employees and Family Support

A recent report by Ernst & Young (EY) focuses on the changing landscape for overseas employees and their families, emphasizing the critical need for improved support structures. The 9th EY Mobility Survey sheds light on areas such as children's education, local employment opportunities for spouses, maternity and childcare support, and the financial assistance available for infertility treatments.

In the survey, which encompassed over 200 companies with expatriates, it was found that a staggering 89% of respondents provide some form of financial support for the education of accompanying children, particularly in the early years. This reflects a growing recognition of the financial strain that educational costs can impose on families.

However, while over 60% of companies allow local employment for the accompanying spouses, only 2% affirmatively encourage it. Common concerns include a lack of understanding regarding the conditions under which family members can work locally, and potential inequities that may arise when some family members are employed while others are not. This indicates a need for companies to clarify their policies surrounding local employment for partners of expatriates to avoid ambiguity and risks related to local tax compliance.

Moreover, 53% of organizations believe there's a pressing need to review their regulations and support systems concerning maternity leave and childcare for expatriates. This includes clarifying policies around maternity costs and the applicability of paternity leave for male expatriates, as well as considerations for companies who may continue to cover infertility treatment costs while the employee is abroad. Other support aspects include essential childcare services like babysitting.

The data indicating that 55% of organizations reported no incidence of female expatriates taking maternity leave while abroad, illustrates a gap in accommodating the needs of their female workforce. Despite a growing acceptance of shared parenting responsibilities and the importance of family support, many companies remain unprepared or lack clear structures to support families during overseas assignments.

As the international environment evolves, discrepancies in support structures between companies are becoming more evident. The rising costs associated with sending employees abroad, compounded by local inflation and changes in currency value, have diminished the financial advantages that used to attract expatriates. This decrease has made it even more critical for companies to reassess their support mechanisms and consider the dual-income household scenario that many expatriate families face today.

With the landscape of family employment and career development shifting, companies must revamp their expatriate policies. Doing so should involve acknowledging the already established presence of dual-career households, especially recognizing that accompanying spouses often have their own careers to consider, which can significantly affect their family’s financial health and life planning.

Additionally, there’s growing evidence that as traditional career paths and employment security weaken, employees are reevaluating the costs of long-term assignments away from their families. The fact that more husbands are pursuing paternity leave and actively participating in childcare means that there is a growing chorus of voices questioning the rationale for lengthy assignments that separate families.

Moving forward, companies should implement a more transparent and fair approach to overseas assignments that incorporates facilitated job postings, shorter assignments, and comprehensive support for spouses in maintaining their careers. Ensuring that the accompanying family members can work locally and access the necessary employment resources is not just an issue of compliance but one that can significantly impact talent management, employee satisfaction, and overall business performance.

With the focus on reassessing expatriate support structures, it is essential for organizations to listen to the voices of their overseas human resource teams who see these issues up close and can provide valuable insights into how to refine policies effectively. Organizations that support the entire family unit during international assignments will not only foster a healthier work environment but will also position themselves favorably in a competitive marketplace that increasingly values family welfare.

In conclusion, EY emphasizes its commitment to continuing this survey to offer further insights into expatriate management and the associated challenges. The findings underscore the necessity for Japanese companies that are expanding their global footprint to not just focus on the professional capabilities of their expatriates, but also on the holistic well-being of their entire families during international assignments.