Measuring International Assignment Return on Investment

Abstract

With costs for typical three- to five-year international assignments often at prohibitive levels, the justification for sending employees abroad is under scrutiny by global organizations. But in a recent survey of global mobility practitioners, only 14% of the respondents indicated that they had any type of initiative to determine return on investment (ROI). This article examines issues that organizations must consider to measure ROI. The first key area, the need to quantify costs, entails the ability to track associated costs and determine what those costs are. The article also explores direct expenses, administrative expenditures and productivity costs to achieve a balanced view of the equation. Measuring return involves identifying a clear definition of assignment success—an element that not only does not fit a universal standard but also faces inconsistent treatment across organizations in terms of tracking and evaluation. Postassignment career tracking as an additional ROI tool is also discussed.