Failed international assignments can cost organisations up to USD 1.25 million - Middle East News 247
July 20, 2024
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Failed international assignments can cost organisations up to USD 1.25 million

International SOS, the world’s leading health and security services company, has released findings and invaluable insights into the financial impact that failed business trips and international assignments can have on organisations, emphasising the need for effective strategies and best practices.

The findings, backed by the company’s Return on Investment report created in collaboration with Ipsos and KPMG, indicate that the cost of an unsuccessful international assignment can amount to USD 1.25 million. Failed assignments can be caused by a number of reasons, including neglecting the health, safety, security, and well-being of an organisation’s mobile workforce.

Commenting on the figure, and the importance of preventative strategies, Katherine Avery, Tax Principal at KPMG, stated: “With the impact to the business of a failed international assignment potentially being detrimental, striking a balance between managing cost and employee experience is vital for the success of any assignment. Engaging with the internal global mobility team early in the planning stages can be highly beneficial, as their expertise with the mobility policy and understanding of the organisation, can help to ensure an optimal employee experience while also effectively managing cost and compliance.”

Last year, International SOS proactively disseminated approximately 102 million medical and security alerts and special advisories to mobile workers and those responsible for safeguarding their wellbeing. The Return on Investment report highlights the importance of this work, especially in light of KPMG’s estimate of the cost of a failed assignment.

Dr Neil Nerwich, Group Medical Director at International SOS, commented: “The key points with respect to cost containment are proactivity, in both the prevention of medical incidents through appropriate preparation and education of employees before deployment and travel. The interventions we take very early on in the course of a medical event have a significant impact on the ultimate medical outcome of a patient. At International SOS, early intervention is at the core of our approach, which starts before an individual travels or is assigned overseas. When we are highly proactive, we are not only significantly benefiting medical outcomes, but also mitigating our clients’ business disruption. By addressing illnesses or injuries promptly with International SOS medical professionals involved from the first contact, we can identify and mitigate potential issues that might escalate into catastrophic events.”

The Return on Investment report also examines the cost-effectiveness of travel risk prevention strategies. Data from the report shows that preventive health check programmes can yield a significant return, with every USD 1.00 invested potentially resulting in a USD 2.53 return. Furthermore, it is reported 72% of HR specialists reported a positive impact on employee wellbeing and resilience when partnering with third-party specialist organisations. This improvement is attributed to the increased access to mental health support programmes and resources.

Last Updated on 3 months by Middle East News 247

    Middle East News 247

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