How Secure is Your Job Abroad?

New data from human resources specialists Mercer reveals that many expatriates are in as vulnerable position as the rest of us when it comes to their job security – or rather, the lack of it.

In a new survey, Mercer tackled leading multinational companies in 100 different countries and asked them specifically to comment on the ways in which they’re planning on aligning their businesses for riding out the recession.

The vast majority of companies surveyed admitted that they were having to indeed consider the fact that there will be a downturn in their profitability, with over 33% stating that they were considering cutting back on their labour force.  So, how secure is your job abroad?  Let’s take a closer look…

The survey by Mercer was an in depth way for the human resources specialists to gauge how open, or otherwise, the international jobs market currently is for developing employment prospects for would-be expatriates who want to go and work abroad and potentially advance their fortunes overseas.  However, what the conclusions and findings of the research really show us is how closed the market is about to become.

The majority of the firms surveyed across 100 nations internationally stated that as yet they had not been forced to take drastic action in terms of cutting back employment options for staff, but that as year end approached, they may well find that they are forced into a position where they have to consider making staff redundant.

Over 8 in 10 companies questioned by Mercer explained that they were foreseeing a downturn in terms of their own productivity in 2009 that would ultimately negatively affect their overall profitability in this year.  As a direct result of this fact, over 33% of companies questioned said that yes, considering redundancies would be a very real prospect by year-end.  This does not bode well for expatriates who are already living and working abroad and committed to their new lifestyle, neither is it good news for those who were hoping that the expatriate lifestyle would be their key out of the British recession.

However, of all the companies surveyed, the majority were also looking at alternative ways of cutting costs, with their reluctance to shed staff almost universal – if sadly inevitable for some.  Other options open to such companies include cutting back on salaries for staff, freezing wages, reducing dividend and bonus payments and also reining in spending on defined contribution pension schemes.  Whilst the days of fabulous pension benefits being available in the UK are long gone, some companies abroad have been famous for offering their staff excellent retirement benefits.  The thinking being that such companies could recruit quality staff for perhaps a little less, and gain their long-term commitment, as a result of the fact that final retirement benefits are very attractive indeed.  Well, if such companies now consider cutting back on what they offer staff upon retirement, this could make certain jobs and certain people’s decisions to live and work abroad less appealing.

The fact of the matter is, as evidenced by the excellent Mercer survey, international businesses that have a global perspective are as damaged by the international economic downturn as many firms in the UK for example.  So, if you’re thinking that a way out of Britain is for you to take up a position abroad, you need to look long and hard to find the right job perhaps, and you also need to weigh up and evaluate how secure that position will be for you.  After all, you don’t want it to be a case of out of the frying pan and into the fire, do you?

Finally, if you are already working abroad – check the terms of your contract to see how you would be treated if your firm were to make you redundant.  For example, if you’re working for a British based company abroad, is your contract based on British contract terms and laws?  If so, you may be in line for a redundancy payout.  If not, how do the laws of the land say you must be treated?  Get ahead in terms of your thinking – whilst it does not pay to dwell on negatives, it does pay to be forearmed with knowledge.  So, if the worst happens and you lose your job, you will be aware of the help you will be given, the money you may be paid, and even where you can perhaps go next to find work.