Vertical Markets

Employees abroad: it’s complicated

by Mark Rowe

A majority of HR professionals (58pc) believe the process of sending employees abroad has got more complicated and difficult from a ‘duty of care’ perspective over the past 12 months, a risk underwriter suggests.

A study by Collinson Group also found more than half (54 per cent) believe the process of sending employees abroad will get even more complicated and difficult over the next 12 months. Just 7 per cent said that the process will not get more complicated.

Despite the increasing complexity and risks when sending employees abroad, the research found significant differences in how firms manage the process of business travel: just 59 per cent said their businesses had a corporate travel policy which includes a risk management strategy; more than one in ten (13 per cent) admitted they either didn’t have a corporate travel risk policy or simply didn’t know.

A fifth (19 per cent) of respondents said they had no corporate travel risk partner or Travel Management Company (TMC) in place. Nearly two-fifths (37 per cent) said their firms had a corporate travel risk partner in place in addition to a TMC while 24 per cent said they had more than one travel risk provider. 15 per cent said they used a TMC only.

The research also found that over half (55 per cent) of HR professionals think their TMC provides a medical and security assistance service for employees abroad if an incident occurs and over 40 per cent think these firms handle crisis management and response. Some may believe they are meeting duty of care obligations because they assume their TMC suppliers will fulfil the duties of a travel risk partner, when in fact they may not have the expertise or specialism in these areas.

Only half (52 per cent) of HR professionals said they were wholly responsible for their company’s business travel policy with 12 per cent saying there was a blend of responsibilities with no overall ownership. In terms of the most challenging aspects of sending people abroad, a quarter (25 per cent) cited the internal coordination of responsibility. Classifying risks presented by different locations was cited by 23 per cent, with staying abreast of risk drivers referred to by 17 per cent.

The study found variety in the risk assessment processes employed by organisations before an employee travels abroad for work: 44 per cent said they ensure staff working overseas are issued with company guidelines for travelling on business and only 38 per cent said they conduct risk assessments if the employee is going to an area deemed as high risk.

Of those firms that conduct risk assessments themselves, the most popular tool used is the Foreign & Commonwealth Office website (63 per cent). Online search was second, cited by 58 per cent, whereas reports or updates from a security consultancy or partner were used by just a third (33 per cent).

Randall Gordon-Duff, Head of Product, Corporate Travel, Collinson Group, said: “It is more critical than ever that firms employ appropriate tools and solutions, both pre- and in-travel, to effectively prepare and protect their employees when working overseas. With almost two thirds of respondents saying they rely on Google or online searches for risk assessments – nearly double the number that cited reports from a risk consultancy – firms may be compromising already limited resources by overrating some risks while overlooking others that might be more relevant to the needs of the individual traveller.

“We believe that businesses should take the opportunity to consolidate and simplify their approach to Duty of Care ensuring there is clear stakeholder responsibility within the organisation.”

Collinson Group recently launched 360 Assistance, a medical and security advice and emergency response service.

Visit http://www.collinsongroup.com/insights/report-are-your-employees-in-safe-hands.

See also – http://www.collinsongroup.com/insights/corporate-travel-is-on-the-rise.

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