graebel_whitepaper_dualcareercouplerelos_us

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In the twenty-first century, dual-career couples are prevalent. Since the 1960s, the role of women has undergone a social and demographic shift. 1 Between 1996 and 2006, the percentage of two-income married couples increased 31-percent in the U.S. In 2014, 47.7-percent of all American married couples were dual- career couples. 2 Dual careerism is not just a cultural trend or a fad of certain generations. In Canada, the percentage of husband-wife families that were dual earners is roughly 70-percent, and approximately two-thirds of two-adult families have two incomes in the U.K. 3 And in 2015, a reported 78-percent of millennials are part of a dual-career couple, increasing the value they place on living well- rounded personal and professional lives. 4 All this means it’s more important than ever to know how to balance a relationship with two careers. WOMEN’S NEW CAREER ROLES Women are playing a dominant role in the dual-career relationship. In the U.S., women’s participation in the family economy has grown incrementally over the last several decades. The percentage of women in dual-earner marriages who out-earn their husbands has gone from 19.2-percent in 1990 to 23.3-percent in 2000 to 28.1-percent in 2011. 5 Managing dual-career relationships involves a series of tradeoffs between career growth, professional endeavors, and commitments to family and community. Couples can especially struggle with tradeoffs, not only between work and personal life, but also between each of their careers. Their lives are filled with negotiation. One significant challenge for dual- career couples is relocation. DUAL-CAREER MOVES FOR MILLENNIALS While the pursuit of wealth and two incomes is beneficial, dual careers restrict mobility, especially international moves. As reported by Forbes, millennials in dual-career relationships find this scenario leads to more responsibilities both at work and home, presenting significant challenges for workers and organizations that need to attract and retain talented workers. 6 Talented workers globally are in high demand. That means they are increasingly willing to switch jobs if they don’t have solid opportunities to climb the corporate ladder or advantages like flexible schedules and relocation options. 7 A PwC report finds that 69-percent of female millennials would like to work outside of their home country during their careers, and 63-percent of women feel international experience is critical to furthering their careers. 8 PwC predicts that the number of workers who will take on global assignments will rise by 50-percent over the next decade. 9 WORLDWIDE DUAL-CAREER RELOCATION ON THE RISE With the rise in dual-career couples comes the increase of necessary uprootings triggered by succession planning and logistics. 10 For these THE CHALLENGES OF DUAL-CAREER COUPLES GRAEBEL RELOCATION EXAMINES EFFECT OF TWO INCOMES ON GLOBAL RELOCATION 1 Franca Godenzi. “The Dual-Career Family of the 21st Century.” December 10, 2012. 2 “Families by presence and relationship of employed members and family type, 2013-2014 annual averages.” U.S. Bureau of Labor Statistics, April 23, 2015. 3 Jackie Coleman and John Coleman. “How Two-Career Couples Stay Happy.” Harvard Business Review, July 27, 2012. 4 Karyn Twaronite. “Generation Go Wants It All: Flexibility And Career Advancement.” Forbes, June 24, 2015. 5 “Do Women Outearn Men in the United States?: The Facts.” Catalyst Information Center, April 2013. 6 “Generation Go Wants It All: Flexibility And Career Advancement.” Forbes, June 24, 2015. 7 Ibid. 8 “Next Generation Diversity: Developing tomorrow’s female leaders.” PwC, 2014. 9 “Talent Mobility 2020 and beyond.” PwC, August 27, 2013. 10 “Why Dual Career Couples Face Challenges.” Ocean Palmer, March 14, 2012. MONTH 20XX

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Page 1: Graebel_Whitepaper_DualCareerCoupleRelos_US

In the twenty-first century, dual-career couples are prevalent.

Since the 1960s, the role of women has undergone a social and demographic shift.1 Between 1996 and 2006, the percentage of two-income married couples increased 31-percent in the U.S. In 2014, 47.7-percent of all American married couples were dual-career couples.2

Dual careerism is not just a cultural trend or a fad of certain generations. In Canada, the percentage of husband-wife families that were dual earners is roughly 70-percent, and approximately two-thirds of two-adult families have two incomes in the U.K.3 And in 2015, a reported 78-percent of millennials are part of a dual-career couple, increasing the value they place on living well-rounded personal and professional lives.4 All this means it’s more important than ever to know how to balance a relationship with two careers.

WOMEN’S NEW CAREER ROLESWomen are playing a dominant role in the dual-career relationship. In the U.S., women’s participation in the family economy has grown incrementally over the last several decades. The percentage of women in dual-earner marriages who out-earn their husbands has gone from 19.2-percent in 1990 to 23.3-percent in 2000 to 28.1-percent in 2011.5

Managing dual-career relationships involves a series of tradeoffs between career growth, professional endeavors, and commitments to family and community. Couples can especially struggle with tradeoffs, not only between work and personal life, but also between each of their careers. Their lives are filled with negotiation. One significant challenge for dual-career couples is relocation.

DUAL-CAREER MOVES FOR MILLENNIALSWhile the pursuit of wealth and two incomes is beneficial, dual careers restrict mobility, especially international moves. As reported by Forbes, millennials in dual-career relationships find this scenario leads to more responsibilities both at work and home, presenting significant challenges for workers and organizations that need to attract and retain talented workers.6

Talented workers globally are in high demand. That means they are increasingly willing to switch jobs if they don’t have solid opportunities to climb the corporate ladder or advantages like flexible schedules and relocation options.7

A PwC report finds that 69-percent of female millennials would like to work outside of their home country during their careers, and 63-percent of women feel international experience is critical to furthering their careers.8 PwC predicts that the number of workers who will take on global assignments will rise by 50-percent over the next decade.9

WORLDWIDE DUAL-CAREER RELOCATION ON THE RISEWith the rise in dual-career couples comes the increase of necessary uprootings triggered by succession planning and logistics.10 For these

THE CHALLENGES OF DUAL-CAREER COUPLES GRAEBEL RELOCATION EXAMINES EFFECT OF TWO INCOMES ON GLOBAL RELOCATION

1 Franca Godenzi. “The Dual-Career Family of the 21st Century.” December 10, 2012.

2 “Families by presence and relationship of employed members and family type, 2013-2014 annual averages.” U.S. Bureau of Labor Statistics, April 23, 2015.

3 Jackie Coleman and John Coleman. “How Two-Career Couples Stay Happy.” Harvard Business Review, July 27, 2012.

4 Karyn Twaronite. “Generation Go Wants It All: Flexibility And Career Advancement.” Forbes, June 24, 2015.

5 “Do Women Outearn Men in the United States?: The Facts.” Catalyst Information Center, April 2013.

6 “Generation Go Wants It All: Flexibility And Career Advancement.” Forbes, June 24, 2015.

7 Ibid.

8 “Next Generation Diversity: Developing tomorrow’s female leaders.” PwC, 2014.

9 “Talent Mobility 2020 and beyond.” PwC, August 27, 2013.

10 “Why Dual Career Couples Face Challenges.” Ocean Palmer, March 14, 2012.

MONTH 20XX

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two-income families, this comes with spouse/partner career concerns that can prevent employees from accepting international assignments.

These kinds of circumstances lead to important questions that must be asked, specifically about relocation. Whose career takes priority? If one partner accepts an opportunity that requires the other partner to leave a good job, will the sacrifice be compensated – through increased pay, other financial resources, or a range of other tangible benefits?11

This is also a major reason that dual-career relationships can become “unequal” over time (at least in terms of the two partners’ career status). However, when one partner must relocate to move up the corporate ladder, the other partner has difficult choices to make.

The perception of whose career is more important plays a significant role in decisions about relocation. According to the second, and most recent, dual-career couple survey conducted by the Society of Petroleum Engineers, women place a higher priority on protecting their spouse’s career than most men, and they named the “ability of their

partner to find work” a top motivator to taking an assignment – second to gaining valuable experience.12 Globally active companies expect this issue to continue, making it more challenging to entice their top talent to relocate, retain these high performers, or attract candidates. Furthermore, restrictive work permit regimes that limit spouse or partner employment can negatively impact an assignment and overall business outcomes.13

Additionally, virtual offices are on the rise. According to a survey by oDesk that included 3,000 businesses, 82-percent of millennials believe that within 10 years many businesses will be built completely with virtual teams of online workers.14 If people can work from a virtual office or from home, will they be more likely to move? Is the move actually necessary? Will people who work virtually be more likely to stay with an organization in the future? These considerations and desires may be important to consider in the future.

CAN DUAL-CAREER RELOCATION WORK?Dual-career assignees are families in which both spouses have career responsibilities and that

relocate internationally. In general, relocations, along with extended working hours, business travel, and other work-related factors can create stress for assignees and their families, especially spouses.15

The number of dual-career assignee couples is substantial, since the majority of assignees are married and have children. However, recent studies show that companies do little to help resolve the dual-career problem among assignees. A research report shows professional company support to address the dual-career issue was lacking despite being perceived by trailing spouses or partners as having a major impact on their ability to reconstruct an identity once abroad, which in turn impacts their adjustment.16

The ability to transfer employees internationally is critical to business success. Widening access to host country employment for assignee partners can be beneficial to families, employers, and the host country.17 According to the Permits Foundation’s most recent study on international dual careers and partner support, 96-percent of employers report that being able to transfer employees internationally is highly important to their organizations.18

Employers’ relocation programs can offer support to increase ease of transfer and assignee success, including the desire to remain on assignment for the duration of the relocation. Types of support managed by a relocation management company can include:

• Language training

• Work permit information or advice

• Education/training allowance

• Job search advice or guidance

• Information on local opportunities

• CV and resume advice

• Career counseling

• Network contacts or vacancies

• Tax/pension advice

• Interview skills training

11 Monique Valcour. “Navigating Tradeoffs in a Dual-Career Marriage.” Harvard Business Review. April 14, 2015.

12 Eve S. Sprunt. “Talent Council Survey Results – Impact of Increase of Dual Career Couples.” Society of Petroleum Engineers. Results published on SlideShare on June 16, 2013. http://www.slideshare.net/EveSprunt/second-dual-career-couple-survey-2012

13 “International mobility and dual career survey of international employers.” Permits Foundation, September 2012.

14 J.J. Colao. “Welcome to the New Millennial Economy: Goodbye Ownership, Hello Access.” Forbes, October 11, 2012.”

15 “Multiple spousal roles during expatriation.” University of Vaasa, 2010.

16 “International mobility and dual career survey of international employers.” Permits Foundation, September 2012.

17 Ibid.

18 Ibid.

The challenges of dual-career couples

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RELOCATION AROUND THE GLOBESome of the most challenging locations around the world for assignees include Brazil, the Russian Federation, India, and China (See Figure 1). While this paper provides a brief overview of the challenges facing assignees and their families, Graebel Relocation can provide in-depth information about these and other countries around the world upon request.

BRAZIL20 As it is extremely difficult for foreign nationals to find a job in Brazil, one of the few possibilities is to be transferred there by a foreign company, or become a virtual employee for the home country employer.

Relocating spouses should get information on job perspectives in companies with branches in Brazil or multinational corporations well before leaving their home country. Salaries can be quite low in Brazil, in the middle level sectors. It can be very hard for assignees to make a living there so a job paid in a foreign currency is optimal.

A further limitation for foreign job seekers is that the Brazilian government protects its local labor force from foreign competition. A foreigner wishing to work in Brazil has to demonstrate that his skills are unique and that a native worker cannot fill the vacancy. The Ministry of Labor will then analyze the applicant’s advantages carefully before accepting the application.

THE RUSSIAN FEDERATION21

In this nation, foreigners must obtain a work permit via the employer offering the post. However, it is possible for an individual to apply for an entry visa to seek employment. The procedure for obtaining visas and work permits can be difficult and time-consuming, typically taking up to several months.

Diplomatic missions or foreign companies employ most assignees in the Russian Federation, while English language schools employ teachers. Relatively few jobs are available for foreign workers in the local economy.

INDIA22

Working in India demonstrates the willingness to work in a new culture and international market. As India’s importance in the world economy increases, job opportunities in this country may increase. Since India has a huge supply of cheap labor, a good education is the key to success. A western college or university degree is a major advantage and a few years of work experience will improve chances of finding a job in India.

Upper management positions were once filled with assignees. Work experience in the West, especially in the U.S., was seen as major advantage. Although this is often still the case, Indian companies usually prefer to employ indigenous staff.

CHINA23

Besides the attraction of working in one of the fastest-growing economies in the world, many assignees are drawn to China to experience a completely different culture. However, these cultural differences may also add a high level of stress to the work situation and not everyone can cope with working in a cross-cultural environment. The assignee “failure rate” for China has been reported to be as high as 70-percent, with many assignees returning home before their contract expires.

COMPREHENSIVE RELOCATION SERVICES FOR EMPLOYEES MOVING AROUND THE WORLDEmployers have a variety of reasons for supporting dual careers via policy and practice. The primary reason is to increase staff mobility. Employers that promote family-friendly policies can be viewed as an attractive employer. By increasing ease of mobility, employers can also:24

1. Reduce costs of assignment refusal or an early return

2. Meet corporate social responsibility goals through contributions made outside of an office setting

3. Support diversity or gender initiatives

19 Ibid.

20 The Brazilian Job Market for foreigners. www.justlanded.com

21 The Russian Job Market for foreigners. www.justlanded.com

22 The Indian Job Market for foreigners. www.justlanded.com

23 The Chinese Job Market for foreigners. www.justlanded.com

24 “International mobility and dual career survey of international employers.” Permits Foundation, September 2012.

FIGURE 1: COUNTRIES WHERE PARTNER WORK PERMIT CONCERNS IMPACT EMPLOYEE TRANSFERS19

EUROPE AMERICAS AFRICA MIDDLE EAST ASIA-PACIFIC

Czech Republic Argentina Algeria Abu Dhabi China

Germany Brazil Angola Afghanistan Hong Kong

Romania Canada Botswana Bahrain India

The Russian Federation Colombia Gambia Jordan Indonesia

Spain Mexico Gabon Kuwait Japan

Switzerland U.S. Ghana Qatar Kazakhstan

Turkey Kenya Saudi Arabia Malaysia

U.K. Morocco UAE Pakistan

Nigeria Singapore

Senegal South Korea

South Africa Thailand

Tunisia Vietnam

Zambia

Zimbabwe

The challenges of dual-career couples

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The Graebel Relocation Worldwide Consulting Services group has 50 years of combined experience, including living and working around the world. Its extensive client portfolio spans diverse industries with similar and differing global relocation challenges. Using deep-dive analyses of a company’s global program, these experts offer policy suggestions concerning gaps that limit competitive positioning in global relocation talent retention and acquisition. Additionally, recommendations that can help improve transferred employees and families’ satisfaction, reduce corporate spend, and increase the likelihood assignments are successfully completed can be recommended.

Graebel Relocation has a proven destination assignment services supply chain with on-the-

ground expertise to help balance the cultural adjustment for worldwide destinations no matter how remote.

In this fast-paced world, time is valuable, and therefore, Graebel provides thought-provoking research and reports on current topics and trends involving what matters most for businesses. Additionally, multinational businesses and companies of all sizes across all sectors of the global economy stay current with changes that could potentially affect their relocation expenditures and employees’ experiences with Graebel’s educational and networking events, such as the Graebel Relocation Policy and Assignment Summits, roundtables, and forums, which are hosted in the Americas, EMEA, and APAC regions. These

in-region events help bring together talent management and acquisition and HR executives to openly discuss programs, policies, and results.

As an industry transformation leader, Graebel was the exclusive sponsor of the first-ever “Women on the Move” session at the 2015 FIDI Conference in South Africa, as well as the global webcast on “Developing Women for Leadership Roles Worldwide,” which was presented by Dr. Shirley Davis former president of SDS Global Enterprises to the I-SHRM worldwide membership.

To learn more about these events or to receive research, contact your Graebel Relocation representative today.

The challenges of dual-career couples

The information contained in this document represents the current research of Graebel Companies, Inc. on the issues discussed as of the date of publication. Graebel cannot guarantee the accuracy of any information presented after the date of publication.

© 2015 Graebel Companies, Inc. All rights reserved. All trademarks are property of their respective owners.

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