A New View of the World

Jack Griffin, President of Atlas International, moderated Workshop IV featuring a panel of experts in international relocation.

Workshops approved by ERC for CRP™ Recertification Credits.

Moderator
Jack Griffin
President
Atlas International, Inc.

Presenters
Luis Roque
Traffic Manager
United States Department of State
Gail DeVito
Senior Manager,
International Executive Services
KPMG LLP
Bill Taylor
Employee Relocation Manager
Chemonics International, Inc.

Luis Roque shared his experience as Traffic Manager in the United States Department of State. His department serves customers worldwide, including Foreign Service and Civil Service employees, as well as 27 other federal agencies. His group is responsible for about $110 million worth of shipments each year, including household goods and supply cargoes.

In 2007, the department handled approximately 23,000 moves of personal effects; approximately 9 out of 10 are international shipments. Luis's office is also responsible for airline tickets and was involved with about 45,000 flights in 2007. The department maintains permanent storage capacity of about 26 million pounds, including warehouses in Maryland and Belgium.

Luis said his operations ship about 50 percent of total volume through the direct procurement method. Anything going to an embassy that has security implications, such as copy machines and computers, is shipped via secure container.

The State Department handles its own customs clearances. Luis pointed to the importation of alcoholic beverages as one area where education of the customer is important. (In one ill-fated case, an ambassador wanted to bring in 1043 bottles of which 700 were vodka.)

Luis talked about the things the State Department does not ship. Attempts to import such materials can result in a costly mistake for the customer, as when a couple tried to bring in a large volume of lumber purchased in Nicaragua; the particular species of wood was banned.

In making a carrier selection, Luis said he refers to rates provided by the GSA. He also touched on the increasing popularity of the ITBL program, a warehouse-to-door pilot program, and post-move surveying.

Gail DeVito, Senior Manager with International Executive Services at KPMG LLP, spoke about developing and maintaining an international assignment program.

She said a first step is to understand the corporate culture and answer the question: who are international employees today? In broad terms, she classifies employees as traditional and local or foreign hires.

Among the questions to consider when forming policies are how to consider all the costs that are involved in providing for international assignments. Tax, finance and legal departments should provide input. Once you've pulled together all who need to be involved in the decisions, keep in mind the company's culture and what you want your policy to look like. The policy should be flexible enough to handle situations that are new to the company.

It's important to consider personal as well as professional needs of assignees, such as the issue of elderly parents. Define how different policy types are to be applied, whether according to assignment or grade level... or based on needs or geography.

Gail discussed the kinds of documentation needed, including policies and administration manuals. A "how-to" piece, such as a checklist, is essential for the employee. She said outsourcing has a place in the administration of the program, but the company needs to be the owner and have an assigned gatekeeper as the "go-to" person for problems.

Gail discussed pre- and post-assignment costs, relocation allowances, income taxes and administrative costs. She touched on educational assistance, spousal and partner assistance, and tax preparation assistance. She said it's important to monitor the program to know how it performs. Surveying directly from the company is desirable. Ultimately, it's all about the employees and retaining their talent.

Bill Taylor, GMS, Employee Relocation Manager with Chemonics International, Inc. took the discussion "off the beaten path" with his experience in remote areas of the world. He introduced Chemonics as a consulting firm in Washington DC, founded in 1975. The company originated in Afghanistan, and its primary client is the U.S. Agency for International Development.

Bill's area of expertise is relocation and procurement. He described the employees he works with as well educated, resourceful, and highly aware of their surroundings. In the late 1980s the fall of the Berlin Wall ushered in a new breed of professional employees, and with them came new security issues. He cited an instance where a company president was shaken down in Moscow by a corrupt police officer. He talked about how things have changed since 9/11. The U.S. has come to be seen in political terms and field offices are now targets for their involvement in foreign policy. Some places that were once safe now feel unsafe.

Bill explained the difference between conflict areas (Iraq, Afghanistan) and post-conflict areas (Balkans, Africa). One of the first considerations before going to an area is whether employees can carry out their duties. In some cases, the security situation is so adverse that they cannot even do their jobs. Before 9/11, the company asked: Are our offices safe? Now the question also becomes: Are our people safe outside of work? For example, Chemonics is presently not working in Iraq because it cannot guarantee employee safety. However, it is working in Afghanistan.

Evacuation planning should take place before people go in. Bill says every Chemonics office maintains an exit plan. And it relies on information from multiple sources. Keeping partners informed is part of the process. Armed security in some locations is necessary but unfortunate because it creates a wall between people giving aid and those receiving it. Although the delivery of aid is fraught with inherent risk, the company's mission draws "do-gooders," and Chemonics will continue to work in high-risk areas.