Building on eight years of research, AXA’s latest study draws on insights from 689 HR decision-makers and 641 non-native assignees, offering a detailed view of the factors shaping international assignment outcomes.
The research found that family concerns (49%) cultural adjustment (47%) and social isolation (47%) are the three most common drivers for employees ending assignments early.
With the average cost of an international assignment rising by over 50% since 2017 to $79,636 per year above base salary, the case for preparing against these common drivers is made clear to HR leaders.
The importance of family, health and home
The research findings suggest a greater demand for early support beyond the logistics and legalities of moving abroad than that which is currently provided.
When asked, just 1 in 5 (20%) said their family received help with relocation services for their current assignment, yet one in three (33%) say they would expect this type of support from their employer for future placements.
Expectations outweigh provision on health-related assurances too. Whilst current support matches expectation for local health insurance, there is a seven-point gap between the global health insurance currently provided (32%) and the expectation for future assignments (39%). This demand falls in line with broader mobility trends – 73% of HR decision-makers expect more digital nomadism in their workforce over the next five years – global health cover caters to just that.
For organisations, this means reassessing what preparation involves.
“When we think about mobility strategies, the focus should not only be on business outcomes but on how well we prepare people, and their loved ones, for change.” says Ellen Hughes, Chief People Officer, AXA Health Business.
Assignment success requires adaptive support
Of assignments that end early, one in three do so because of difficulty adapting to local culture – and this has been a top three reason for early returns for the last eight years.
Demand for cultural preparation has also increased by 24% since AXA Global Healthcare’s last report in 2020, suggesting that assignees are becoming more aware of the importance of forward planning – and the latest research findings suggest wellbeing provision needs to meet expectations.
Language training support was found to be 12.5% short of expectation, while cultural adaptation support fell further behind, at nearly 20%. The nature of this support – whether it be learning a language or getting to grips with an entirely new culture – suggests that the key is in preparation well in advance of placement to give assignees a better shot at success.
Social isolation: creating the conditions for connection
Over half (54%) of assignees feel their mental health being challenged within the first three months of their assignment. At this point, the environment feels most unfamiliar and assignees that are not adequately equipped are most likely to struggle.
Isolation can be prevented in a variety of ways. The findings suggest expat forums (27%) and support groups (23%) are two valued support mechanisms for assignees. Opening up conversations about psychological preparation for the lifestyle change and providing connections through the workplace with buddy and mentoring systems can also be effective for establishing a social baseline for employees on placement.
Assignees themselves must also take responsibility. Excitement about a new posting can distract from thorough preparation for potential social challenges.
Sean Dubberke, intercultural specialist and Chief Learning Officer at professional training firm RW3 highlights: “Employees can often misunderstand relocation because of simple excitement. This adventurous enthusiasm can delay preparation for the practical and psychological realities of living in a new cultural environment.”
Personal preparation means thinking ahead – maintaining home connections, identifying how to build new ones, and understanding how daily social life will change.
Closing the awareness gap
Across all three areas, employers are providing more support than assignees recognise. Just 19% of assignees cited access to language preparation, against 36% of HR leaders who say they provide it. Similarly, 17% of assignees cited cultural preparation support, compared with 34% of HR leaders. Gaps are consistent for mentoring and buddy systems (28% vs 46%) and expatriate support groups (24% vs 45%).
This is not a problem with resourcing, but communication. Support covering exactly the family, cultural, and social challenges that can drive early returns exists, but isn’t reaching the people who need it. Closing this gap requires clearer communication from employers and active engagement from assignees.
The evolution of global mobility
Short-term placements are predicted to increase by 69% in the next five years and are predicted to shorten further with the rise of digital nomadism. As assignment models evolve, the risks of cultural disconnection, family strain, and social isolation won’t disappear – they’ll become more acute as the window for preparation gets shorter.
For HR decision-makers, two preparation priorities stand out: keep family, cultural, and social support central as these factors become more strongly linked to successful outcomes; and close the awareness gap through consistent communication and shared accountability.
“AXA Global Healthcare’s research demonstrates that in order for preparation to deliver the best outcomes, businesses should design mobility strategies which recognise the full experience of relocation, and individuals must actively engage with the support available to them. Only then can the value and investment at this stage of an assignment be realised.
By strengthening preparation at every level, we can create the conditions for mobility to deliver on its promise: growth for our organisations and meaningful opportunities and experiences for our people.” says Hughes.
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AXA Health International (AXA Global Healthcare)
AXA Health International is part of the AXA Health business and specialises in international health and wellbeing solutions. AXA Global Healthcare operates as one of the commercial entities functioning within AXA Health International, providing premium international health insurance to individuals and businesses worldwide and has been protecting the healthcare needs of globally mobile citizens for more than 60 years. Customers are supported in more than 200 countries through a global virtual doctor service, second medical opinion, personal case management, and evacuation and repatriation assistance, with access to AXA’s global medical network of over 2 million healthcare providers. For more information visit axaglobalhealthcare.com.
