06/05/2024
A New Era
In the changing global business landscape, there is a significant shift in how companies manage their labour across international borders. This trend, known as the 'New Era of Relocation', is characterised by a marked decrease in the number of expatriates sent on long-term international assignments. Instead, companies are increasingly relying on local recruitment, promoting a more sustainable globalisation. This does not mean that companies do not need to recruit skills abroad. On the contrary, this is more important than ever, as skills needs are very high.
What we are seeing more of, however, is the redeployment of newly recruited staff on local contracts rather than international contracts. Employees are expected to take the initiative if they want international career opportunities.
The reasons for this change are many. First, technological advances have made teleworking more feasible and efficient, reducing in many cases the need for physical relocation. Companies can operate on several continents without necessarily moving employees from one country to another, leading to cost reductions in the form of relocation allowances, expatriation allowances and other logistics costs.
For global companies, this means more sustainable operations, reduced costs and deeper integration in the local market. However, it is important that companies do not forget the importance of getting their newly recruited employees adapted to their new environment, in order to retain staff as a recruitment process is both time consuming and costly.
The new era of relocation, with fewer expatriates and more local hires, is gaining momentum among companies and creating new conditions regarding the approach to international business.