The Rise of Flexible Policies

We are immensely grateful to Des McKell of NetExpat for sharing the report on Core/Flex, which was a major topic during the recent ATMA India webinar. Thank you so much for your generosity and for contributing valuable insights to our discussions.  A copy of the report, From core flex to care flex: A practical approach to mindful flexibility is now available in our Members Resources, or you may request a copy here.

In recent years, there has been a significant shift towards flexibility in corporate policies. According to Mercer’s Worldwide International Assignments Policies and Practices survey, 57% of companies had flexible policies in 2022, up from 37% in 2019. In 2023, 62% of companies reported reviewing or planning to review their policies to enhance flexibility.

The Drive for Better Experiences

The primary goal of introducing flexibility is to improve the experience for assignees, with 57% of companies recognizing this as a crucial benefit. However, implementing flexible packages presents challenges, including inadequate technology infrastructure, potential cost increases, tracking difficulties, and insufficient guidance from management and HR.

Measuring Impact and Expectations

Despite the push for flexibility, only 12% of companies regularly measure its impact against set objectives, while 18% do so randomly. Businesses aim to balance practicality with workforce satisfaction, benefiting both employees and their families.

Forms of Flexibility

Flexible talent mobility can take several forms:

• Swapping Benefits: Exchanging one benefit for another of similar value.
• Cashing-Out: Receiving benefits in cash instead of kind.
• Lump-Sum Payments: Providing a cash amount to cover multiple components of the assignment package.
• Cafeteria Model: Allowing employees to select benefits from a predefined list.
• Core Flex Benefits: Distinguishing between essential (non-negotiable) and optional benefits.

Pros and Cons

While cash-based and lump-sum approaches are easy to administer and meet employee expectations, they can be tax inefficient and may not enhance the assignee experience. In hardship locations, flexibility may need to be limited for safety reasons.

Changing Mobility Patterns

Companies are increasingly adopting permanent one-way moves, appealing to relocation budget holders but posing complexities for employees and their families. Maintaining dual family income is crucial, with over 70% of families considering it a critical factor in mobility decisions.

Structured Flexibility: The Core Flex Approach

Companies are exploring more structured flexibility, such as core flex approaches that separate essential benefits from optional ones. Challenges include balancing flexibility with duty of care, ensuring consistent employee experiences, and providing informed choices.

Introducing Care Flex

The care flex approach refocuses on employee and family well-being, starting from the desired employee experience. It emphasizes financial affordability, relevance, and measurable outcomes for satisfaction and retention.

Implementing Care Flex

Key steps include:

• Setting Minimum Support Levels: Ensuring compliance and well-being.
• Defining the Experience: Prioritizing family experience and well-being.
• Ensuring Relevance: Understanding and addressing diverse employee needs.
• Fostering Collaboration: Involving all stakeholders in decision-making.

Measuring Success

Success metrics for care flex include awareness surveys, adoption rates, satisfaction rates, and monitoring talent retention and assignment outcomes. Positive indicators suggest that family support enhances assignment acceptance and job performance.

By adopting these flexible approaches, companies can better support their mobile workforce, improve satisfaction, and enhance overall organizational effectiveness.