With the rise of globalization, international experience is becoming a critical asset for global companies. International assignment experience is valuable. In the right context, it can create a competitive advantage, both for expatriates and the companies that employ them.
The term ‘expatriate’ refers to a person who is relocated from one country to another for working purposes for a certain period of time by a multinational company. Expatriates are motivated, among other things, by professional and personal development, the possibility of advancing their career, gaining international experience and enhancing their standard of living.
In this case Mark Chan is working for a company, which is diversified, global company with market-leading position in a number of industries. Initially he took the international assignment, first because he was a bachelor. Being single and with little obligations, taking an international position was easy. Furthermore, he felt that by accepting a position overseas he could broaden his culture and to experience international living conditions, this was something that he can wish for. Mark’s transition from Singapore to England was very smooth and enjoyable. He received many benefits from the position in England. First, the financial stability was awesome; he was making more money abroad and can afford luxury items. This new found wealth helped him and his family to get a nice countryside home, which was spacious and in a very upscale neighbourhood and he also kept an English sheepdog something that he can never afford in Singapore. In addition to the dog and the house, he enjoyed two luxury vehicles as well. Mark was enjoying his family life, he was happy with the new position as it also offered a lot of room to grow within the company because with the international experience, the prospect for growth is enormous globally.
Many expatriate benefits greatly from the time he or she has spent abroad. Not only do language skills and intercultural competence make them a valuable employee – expatriate assignments can also bring financial benefits. In general, not only the employee like Mark gets advantages for being an expatriate on international assignment but multinational organisations have also achieve several benefits from this process such as facilitate the communication process between the parent location and its subsidiaries, as well as across subsidiaries, aid in establishing country linkages, and increase the firm's understanding of international operations (Downes and Thomas, 2000).
Despite from many benefits, Mark has also faced number issues related to the repatriation, when he decided to move back home to Singapore. According to Philip H. Cain study, ‘Repatriation’ is among the biggest problems with the managing of expatriate assignments.
In this case, most of the blame can be placed on Mark’s company. Having expatriates; the company should be prepared for situations like this. Mark and his family held up on their part of the deal by staying the whole time in England, and the company did not have a plan for Mark and his family. They did not seem to give him any support to his family or his for his career back home in Singapore. It was not clear company's plan for Mark after he completed his expatriate duties in London. Part of it could also be blamed on just bad timing for corporation and Mark Chan’s family. The economy back in the Asia-Pacific area was not the best for jobs. They seemed to virtually have not spot for Mark in the company anymore. The Regional General Manager position, that he was more than qualified for, was given to a colleague of his. The reasons aren’t given to as why company decided to move in a direction different than what they would have done in the past. There were several reasons for Mark and his family’s re-entry problems. One of the main factors that affected Mark was the poor economy back in Singapore. Mark couldn’t find a job to his liking, and everything he did find seemed as a demotion. Mark thought his career was going downhill and wasn’t happy at all. A factor that seemed to affect all of Mark’s family was that they had completely adjusted to living life in England. His son’s had trouble adjusting to Singaporean life.
Mark’s decision of looking another job is supporting the Brookfield Global Relocation 2010 survey, which shows that 38 percent of returnees quit within 12 months that compared to 35 percent in 2009 and the 15-year historical average is 22 percent. This is due to the fact that employees were unable to find jobs at these companies upon their return. That results in a terrible ROI for companies that have spent during the international assignment. Not only is it costly, but having returnees leave the company sends a warning signal to other employees that taking an expatriate assignment may be career threatening.
According to TLNT, The Business for HR, this is not just a problem for small to medium size companies that have little experience with expatriates. It includes large multinationals that have been sending expatriates overseas for years. Some of the problems include: Unclear expectations - during pre-assignment, top management may emphasize that international experience is critical for the company to survive in the new global business environment. Post-assignment, it is as though top management is suffering from amnesia. Management doesn’t quite know how to utilize that experience; Learning a “new” organization - returnees see old co-workers that have been promoted while they have been gone. They wonder if the assignment hurt their career. They also must get up to speed quickly about changes in organization, strategy, management, culture, etc.; and Under-utilization of overseas experience - Many expatriate jobs are highly challenging and very autonomous. Expatriates are chief spokespeople for the company with the host country government, professional business organizations, customers, legal entities, etc.
Repatriation is more often done badly than well, mainly because companies don't plan for the expatriate's next career move until the person comes back. According E-HR International Community, taking adequate pre-departure measures will significantly improve the chance of assignment success as well as successful repatriation. Employers can lower this turnover by communicating repatriation plans with the employee before the assignment begins and including repatriation matters in the international assignment agreement. (SHRM April 2012)
Mark’s international assignment is the evident that either the company do not have the proper policy or they were not formally applying it. The company should consider the following procedures in order to avoid similar repatriation issues in the future and reduce the risk of employee dissatisfaction and possible turnover in employment:
Involve the spouse from the start, the 2001 Global Relocation Trends survey reveals that 92 percent of failed assignments are due to partner dissatisfaction;
Clarify objectives before the assignment as well as how knowledge can be used and what kind of job will be targeted upon return;
Appoint a key line executive as a sponsor for each expatriate. This needs to be someone that is high enough in the company to have easy access to top management and preferably from a different business unit/division/functional area than the expatriate. Assign a mentor to assist expatriates during and after the international assignment (Tyler, 2006; Yeaton & Hall, 2008);
Communicate during the assignment period. It’s equally important to communicate with the employee throughout the international assignment by listening to the employee’s career goals and remembering the employee in succession plans. Provide debriefing opportunities prior to and upon the termination of international assignments to prepare for the day-to-day changes in the headquarters office (Berthoin-Antal, 2001; Tyler, 2006);
Quarterly reviews should be held with expatriate, home/host manager and a VP. Having a VP present sends a positive message and recognition. It also allows the VP a chance to understand the challenges and accomplishments of the expatriate.
Discuss opportunities - A year before repatriation starts, expatriate/sponsor need to discuss positions that are suitable back home. Offer career planning and path for repatriates (Berthoin-Antal, 2001);
Sponsor/returnee link should continue for a reasonable period after return to provide re-entry training programs, reverse culture shock support or counselling services for the employee as well as the employee’s family. Showing appreciation for the employee during company events, this will also help create a company culture that supports cultural diversity and international assignments. Create training for repatriates and families to ease reverse cultural shock (Jassawalla & Sashittal, 2009; Yeaton & Hall, 2008).
Conduct knowledge transfer sessions. According to Peter J Dowling, there is a need for cross-fertilization of ideas and practices that assist in developing and maintain competitive advantage and international assignments are a primary method of achieving this objective.
So, in order to capitalize on its returnees’ skills and knowledge, company need to cultivate a global vision and corporate culture that support returnees, value their international experience and utilize their global knowledge and contribution will realize true growth in the strategic development of the company.
Not only company but Mark should have also considered the following for managing and dealing the cultural shock: Have discussions before begin the overseas assignment regarding what will happen at its conclusion. Try to align expectations with the management about how the assignment fits into the overall career path; Make a conscious effort to stay in touch with the home office during the overseas assignment and stay in touch with personal friends and family members; After returning home, stay in touch with the colleagues (both personal and professional); and Find a way to utilize the knowledge gained during the overseas assignment, either by being involved in business with that country or by helping to orient future assignees to that country.
Mark can also consider another international assignment opportunity for Netherlands. Mark and his wife and children would have to adjust no matter where they went, but since he has been in Europe for awhile now it is likely going to be a hard transition back to Singapore. Although there might be some language difficulties but they could learn Dutch and as children learning another language, they could always go to a private school in the Netherlands that teaches English. Although it has a deep psychological impact on Mark, after working so hard to earn a senior level promotion, and the expatriate benefits that go with it, to accept a lower position with the company back at Singapore and betrayed after being passed over for a promotion before but if he takes the job in the Netherlands he will become a man of the world and gaining invaluable experience in the headquarters division of the company. It would lead to better job promotions in the future. Mark is already a senior level manager and could very well be groomed for the M&A division head with his experience in the Netherlands with his experience and success he already has under his belt.
Books and Journals:
Berthoin-Antal, A. (2001). Expatriates’ contribution to organization learning. Journal of General Management, 26, 62-84
Jassawalla, A. R., & Sashittal, H. C. (2009). Thinking strategically about integrating repatriated managers in MNCs. Human Resource Management, 48, 769-792.
Meredith Downes and Anisya S. Thomas (2000), Knowledge transfer through expatriation: The U-curve approach to overseas staffing, Journal of Managerial Issues, Pittsburgh (Summer)
Peter J. Dowling, International Human Resource Management, Ch 8, Re-entry and Career Issues, p203)
Tyler, K. (2006). Retaining repatriates. HR Magazine, 51, 97-102.
Yeaton, K., & Hall, N. (2008). Expatriates: Reducing failure rates. Journal of Corporate Accounting & Finance, 75-78.
Web-Sites:
https://moniviestin.jyu.fi/ohjelmat/hum/viesti/en/ics/50/...01.../file
http://www.internations.org/magazine/expatriate-benefits-perks-of-an-expat-job-15276
What Real MNEs are Doing in Managing Expatriate Assignments, Philip H. Cain - http://www.oocities.org/philcain/papers/expatmgmt.htm)
Brookfield Global Relocation Survey 2010 – http://www.articles.totallyexpat.com/global-relocation-trends-survey-2010/
TLNT, The Business for HR website: http://www.tlnt.com/2012/02/20/why-cant-organizations-retain-their-expatriate-employees/
E HR – New and information for the international community -http://www.expatica.co.uk/hr/story/plan-for-repatriation-before-the-assignment-begins-10535.html
SHRM, 6th April 2012 - http://webcache.googleusercontent.com/search?q=cache:99XnWnfD2KAJ:www.shrm.org/TemplatesTools/hrqa/Pages/Howcanmycompanybestretainrepatriatedemployees.aspx+Repatriation:+How+can+my+company+best+retain+repatriated+employees&cd=2&hl=en&ct=clnk&gl=uk
The term ‘expatriate’ refers to a person who is relocated from one country to another for working purposes for a certain period of time by a multinational company. Expatriates are motivated, among other things, by professional and personal development, the possibility of advancing their career, gaining international experience and enhancing their standard of living.
In this case Mark Chan is working for a company, which is diversified, global company with market-leading position in a number of industries. Initially he took the international assignment, first because he was a bachelor. Being single and with little obligations, taking an international position was easy. Furthermore, he felt that by accepting a position overseas he could broaden his culture and to experience international living conditions, this was something that he can wish for. Mark’s transition from Singapore to England was very smooth and enjoyable. He received many benefits from the position in England. First, the financial stability was awesome; he was making more money abroad and can afford luxury items. This new found wealth helped him and his family to get a nice countryside home, which was spacious and in a very upscale neighbourhood and he also kept an English sheepdog something that he can never afford in Singapore. In addition to the dog and the house, he enjoyed two luxury vehicles as well. Mark was enjoying his family life, he was happy with the new position as it also offered a lot of room to grow within the company because with the international experience, the prospect for growth is enormous globally.
Many expatriate benefits greatly from the time he or she has spent abroad. Not only do language skills and intercultural competence make them a valuable employee – expatriate assignments can also bring financial benefits. In general, not only the employee like Mark gets advantages for being an expatriate on international assignment but multinational organisations have also achieve several benefits from this process such as facilitate the communication process between the parent location and its subsidiaries, as well as across subsidiaries, aid in establishing country linkages, and increase the firm's understanding of international operations (Downes and Thomas, 2000).
Despite from many benefits, Mark has also faced number issues related to the repatriation, when he decided to move back home to Singapore. According to Philip H. Cain study, ‘Repatriation’ is among the biggest problems with the managing of expatriate assignments.
In this case, most of the blame can be placed on Mark’s company. Having expatriates; the company should be prepared for situations like this. Mark and his family held up on their part of the deal by staying the whole time in England, and the company did not have a plan for Mark and his family. They did not seem to give him any support to his family or his for his career back home in Singapore. It was not clear company's plan for Mark after he completed his expatriate duties in London. Part of it could also be blamed on just bad timing for corporation and Mark Chan’s family. The economy back in the Asia-Pacific area was not the best for jobs. They seemed to virtually have not spot for Mark in the company anymore. The Regional General Manager position, that he was more than qualified for, was given to a colleague of his. The reasons aren’t given to as why company decided to move in a direction different than what they would have done in the past. There were several reasons for Mark and his family’s re-entry problems. One of the main factors that affected Mark was the poor economy back in Singapore. Mark couldn’t find a job to his liking, and everything he did find seemed as a demotion. Mark thought his career was going downhill and wasn’t happy at all. A factor that seemed to affect all of Mark’s family was that they had completely adjusted to living life in England. His son’s had trouble adjusting to Singaporean life.
Mark’s decision of looking another job is supporting the Brookfield Global Relocation 2010 survey, which shows that 38 percent of returnees quit within 12 months that compared to 35 percent in 2009 and the 15-year historical average is 22 percent. This is due to the fact that employees were unable to find jobs at these companies upon their return. That results in a terrible ROI for companies that have spent during the international assignment. Not only is it costly, but having returnees leave the company sends a warning signal to other employees that taking an expatriate assignment may be career threatening.
According to TLNT, The Business for HR, this is not just a problem for small to medium size companies that have little experience with expatriates. It includes large multinationals that have been sending expatriates overseas for years. Some of the problems include: Unclear expectations - during pre-assignment, top management may emphasize that international experience is critical for the company to survive in the new global business environment. Post-assignment, it is as though top management is suffering from amnesia. Management doesn’t quite know how to utilize that experience; Learning a “new” organization - returnees see old co-workers that have been promoted while they have been gone. They wonder if the assignment hurt their career. They also must get up to speed quickly about changes in organization, strategy, management, culture, etc.; and Under-utilization of overseas experience - Many expatriate jobs are highly challenging and very autonomous. Expatriates are chief spokespeople for the company with the host country government, professional business organizations, customers, legal entities, etc.
Repatriation is more often done badly than well, mainly because companies don't plan for the expatriate's next career move until the person comes back. According E-HR International Community, taking adequate pre-departure measures will significantly improve the chance of assignment success as well as successful repatriation. Employers can lower this turnover by communicating repatriation plans with the employee before the assignment begins and including repatriation matters in the international assignment agreement. (SHRM April 2012)
Mark’s international assignment is the evident that either the company do not have the proper policy or they were not formally applying it. The company should consider the following procedures in order to avoid similar repatriation issues in the future and reduce the risk of employee dissatisfaction and possible turnover in employment:
Involve the spouse from the start, the 2001 Global Relocation Trends survey reveals that 92 percent of failed assignments are due to partner dissatisfaction;
Clarify objectives before the assignment as well as how knowledge can be used and what kind of job will be targeted upon return;
Appoint a key line executive as a sponsor for each expatriate. This needs to be someone that is high enough in the company to have easy access to top management and preferably from a different business unit/division/functional area than the expatriate. Assign a mentor to assist expatriates during and after the international assignment (Tyler, 2006; Yeaton & Hall, 2008);
Communicate during the assignment period. It’s equally important to communicate with the employee throughout the international assignment by listening to the employee’s career goals and remembering the employee in succession plans. Provide debriefing opportunities prior to and upon the termination of international assignments to prepare for the day-to-day changes in the headquarters office (Berthoin-Antal, 2001; Tyler, 2006);
Quarterly reviews should be held with expatriate, home/host manager and a VP. Having a VP present sends a positive message and recognition. It also allows the VP a chance to understand the challenges and accomplishments of the expatriate.
Discuss opportunities - A year before repatriation starts, expatriate/sponsor need to discuss positions that are suitable back home. Offer career planning and path for repatriates (Berthoin-Antal, 2001);
Sponsor/returnee link should continue for a reasonable period after return to provide re-entry training programs, reverse culture shock support or counselling services for the employee as well as the employee’s family. Showing appreciation for the employee during company events, this will also help create a company culture that supports cultural diversity and international assignments. Create training for repatriates and families to ease reverse cultural shock (Jassawalla & Sashittal, 2009; Yeaton & Hall, 2008).
Conduct knowledge transfer sessions. According to Peter J Dowling, there is a need for cross-fertilization of ideas and practices that assist in developing and maintain competitive advantage and international assignments are a primary method of achieving this objective.
So, in order to capitalize on its returnees’ skills and knowledge, company need to cultivate a global vision and corporate culture that support returnees, value their international experience and utilize their global knowledge and contribution will realize true growth in the strategic development of the company.
Not only company but Mark should have also considered the following for managing and dealing the cultural shock: Have discussions before begin the overseas assignment regarding what will happen at its conclusion. Try to align expectations with the management about how the assignment fits into the overall career path; Make a conscious effort to stay in touch with the home office during the overseas assignment and stay in touch with personal friends and family members; After returning home, stay in touch with the colleagues (both personal and professional); and Find a way to utilize the knowledge gained during the overseas assignment, either by being involved in business with that country or by helping to orient future assignees to that country.
Mark can also consider another international assignment opportunity for Netherlands. Mark and his wife and children would have to adjust no matter where they went, but since he has been in Europe for awhile now it is likely going to be a hard transition back to Singapore. Although there might be some language difficulties but they could learn Dutch and as children learning another language, they could always go to a private school in the Netherlands that teaches English. Although it has a deep psychological impact on Mark, after working so hard to earn a senior level promotion, and the expatriate benefits that go with it, to accept a lower position with the company back at Singapore and betrayed after being passed over for a promotion before but if he takes the job in the Netherlands he will become a man of the world and gaining invaluable experience in the headquarters division of the company. It would lead to better job promotions in the future. Mark is already a senior level manager and could very well be groomed for the M&A division head with his experience in the Netherlands with his experience and success he already has under his belt.
Books and Journals:
Berthoin-Antal, A. (2001). Expatriates’ contribution to organization learning. Journal of General Management, 26, 62-84
Jassawalla, A. R., & Sashittal, H. C. (2009). Thinking strategically about integrating repatriated managers in MNCs. Human Resource Management, 48, 769-792.
Meredith Downes and Anisya S. Thomas (2000), Knowledge transfer through expatriation: The U-curve approach to overseas staffing, Journal of Managerial Issues, Pittsburgh (Summer)
Peter J. Dowling, International Human Resource Management, Ch 8, Re-entry and Career Issues, p203)
Tyler, K. (2006). Retaining repatriates. HR Magazine, 51, 97-102.
Yeaton, K., & Hall, N. (2008). Expatriates: Reducing failure rates. Journal of Corporate Accounting & Finance, 75-78.
Web-Sites:
https://moniviestin.jyu.fi/ohjelmat/hum/viesti/en/ics/50/...01.../file
http://www.internations.org/magazine/expatriate-benefits-perks-of-an-expat-job-15276
What Real MNEs are Doing in Managing Expatriate Assignments, Philip H. Cain - http://www.oocities.org/philcain/papers/expatmgmt.htm)
Brookfield Global Relocation Survey 2010 – http://www.articles.totallyexpat.com/global-relocation-trends-survey-2010/
TLNT, The Business for HR website: http://www.tlnt.com/2012/02/20/why-cant-organizations-retain-their-expatriate-employees/
E HR – New and information for the international community -http://www.expatica.co.uk/hr/story/plan-for-repatriation-before-the-assignment-begins-10535.html
SHRM, 6th April 2012 - http://webcache.googleusercontent.com/search?q=cache:99XnWnfD2KAJ:www.shrm.org/TemplatesTools/hrqa/Pages/Howcanmycompanybestretainrepatriatedemployees.aspx+Repatriation:+How+can+my+company+best+retain+repatriated+employees&cd=2&hl=en&ct=clnk&gl=uk
