The cost of an expatriate assignment is up to three times that of hiring a local employee, and for an employee and their family it demands a huge upheaval, so it is important to take all possible measures to increase the chances of a successful overseas posting.
Plan the Assignment
Ensure your employee’s skills match the job requirements and that they have demonstrated the adaptability to live and work in another environment; living abroad requires cultural awareness, open-mindedness and an ability to manage change.
Before your employee packs up their home, provide a complete, realistic picture of the assignment and encourage them to do their own research and talk to repatriated colleagues and associates living overseas.
Design an Expatriation Policy
The design of a company’s policy to relocate, compensate and support employees overseas is vital to ensure that not only the employee is satisfied with his move, but that the company meets its goals too.
A policy should cover all aspects of an expatriate assignment, but should also allow flexibility to deal with individual situations and the different countries to which you send employees.
Manage Expectations
Your employee should be aware of their terms and conditions prior to accepting an overseas assignment, including the expenses that are covered, the logistics of any move, and what support to expect from the company whilst overseas.
Providing a clear picture of the job assignment, explaining how the relocation will work in practice, and describing what to expect in the host country, will avoid unrealistic expectations on the part of the new expatriate.
Provide Support for Accompanying Family Members
Many surveys show that family issues are the number one reason why employees turn down expatriate assignments, and why some expatriate assignments fail. Intervention from HR to determine the support an individual family needs to make the move overseas can make a difference; think about housing, schooling, dual career issues and spousal career assistance in the host country.
Constructing Expatriate Compensation Packages
Whilst financial gain is not typically the primary reason for accepting an overseas assignment, employees will not relocate if they are financially disadvantaged, or cannot maintain the same lifestyle as in their home country.
Expatriate pay is complex, effected by fluctuating exchange and inflation rates. Consider the following elements of a package:
- Salary (host v base country payments)
- Tax equalisation
- Housing and schooling allowances
- Relocation costs
- Cost of living allowance
- Regular salary review processes
Hand Over Decision Making
An employee will feel uncomfortable if they have no control over the expatriation process. Communication is of the utmost importance in all stages of the process, from preparation to repatriation. Ensure that you seek input, and consider your employee’s wishes in the expatriation process. Allow your employees and their families to make decisions wherever possible.
Relocation Services
Paying a relocation service company to assist your employee with an overseas move is a valuable investment. A relocation company will hold your employee’s hand from the planning stage through to the settling-in period and beyond. The quicker an employee feels settled, the faster they turn their focus to the workplace.
Career Planning
Make an overseas assignment an integral part of an employee’s development plan. Plan a follow up role for their repatriation; this should encompass newly gained knowledge, experience and skills.
Returning to the position they left a few years earlier, without development or challenge, will undoubtedly get your employee thinking about career opportunities elsewhere.
Provide Language & Cultural Training
Organise language lessons and culture training once an employee is on seat overseas; speaking and understanding a little of the local language, and learning about the local culture, helps expatriates integrate into the new community and builds their confidence and acceptance of their new home.
Repatriation as Important as Expatriation
Repatriation can be stressful. To help settle an employee back in, appoint a mentor in the workplace specifically for returning assignees and plan their return as you would a reintegration into the workplace.
HR can positively influence their employee’s adjustment to life back “home” by preparing
employees in advance and supporting them when they return to base country.
Amanda van Mulligen
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