HR departments need to measure the long-term impact of an international assignment. Positioning your company to operate in China and take advantage of the changing economy could take decades. Long-term data should be collected and used to calculate ROI.
|A system of measurement?|
What Value Is Created?
Here are some questions that you can use to understand the value an international assignment is creating:
- How did the person’s job position the company to do business in the market?
- How much was the government contract we won because of networking?
- What is the value of the market opened by establishing an operation in the host country?
What Are Other Companies Doing?
Some companies measure international assignments by assigning a weighting to feedback (40% to the feedback from your line manager, 40% from your home country manager, and 20% from HR).
When you design your ROI tool, you should:
- Get input from the person who is on the international assignment and weight it equally with the other feedback.
- Measure the strategic goals of an international assignment (use strategic tools to link strategies and tactics).
- Capture short-term and long-term data and compare the ROI over time.
What Costs Should I Measure?
This paper gives you the elements of an international assignment that will create costs. When choosing a company to work with to build your ROI tool, ensure that you choose a strategic international human resource management company and not a relocation company.
Relocation companies can provide cost analysis, but they don’t do strategic planning and don’t have the skills to link strategy and practice through measurement and analysis of the value created in an international assignment. You should link with a company, like doshebu, which provides strategic globalisation services.