Now that cost cutting is a trending topic, it’s worth shouting from the hilltops once again that a partner support program is a shrewd, low-cost investment that pays off quickly and consistently delivers strong results.
All the pros and cons
When we speak with companies about supporting expat or international hire partners, we often hear that it might be a challenge to secure budget approval from decision makers. That’s our cue to share a business case – showing not only the positive impact on employee retention and engagement, but also how cost-effective our programs can be compared to the expense of failed assignments or early departures.
Program uptake: 75–90%
We will also guide our potential clients through all their options, outlining the pros and cons and underscoring that when companies offer a personal partner support budget, an uptake of 75–90% is common. Even with consultancy and coaching only, usage rarely falls below 75% – that’s because partners deeply value the recognition and acknowledgement such a program represents. Now, let’s get to the all important bottom line.
Short payback period
For all our current clients, we calculate the actual total cost of the program (including ours) against the average annual cost of expatriation. The result? Normally between 0.5% and 1%. For potential clients, we run the numbers on maximum costs and even then it hardly ever exceeds 1%. So, as you see, no one needs to be a daredevil to launch a partner support program. The ROI is clear – indeed, the companies that see the value will highlight the short payback period when making the case to senior management.
Budget uptake: never 100%
I’ve also saved the best part till last, which is that actual costs end up lower than allocated costs, simply because the overall budget uptake is never 100%. Why is that? It’s the psychological effect of having a personal budget. Faced with a choice between a language course for €125 per hour or one costing €25, most partners choose the cheaper option – saving part of their budget in case they want to use it elsewhere. This is very different from handing out a cash payout (what we’ve always called ‘Gucci Money’) – in the history of international assignments, no expat has ever come back to say: “You know what, I’m fine with 50% less this year.”
Interested?
Would you like to hear more? As always I’d be more than happy to fill you in! Just email: jvanhaaften@gcmail.info
Jacqueline van Haaften is the Managing Director of Global Connection
