expatriates and repatriates
TRANSCRIPT
Expatriates and Repatriates
DR. Tanusree Chakraborty
Who is an Expatriate? An expatriate is someone who has chosen to
live in a country other than the one in which he or she legally resides.
The word expatriate comes from the Latin ex meaning “out of”, and patria meaning “country”.
Who is an Expatriate? An expatriate is different than an immigrant
in that most expatriates do not plan on residing in their new country permanently, and if they do, they plan on retaining their native citizenship for practical purposes.
Immigrants, by contrast, usually plan on residing permanently in a new country and acquiring permanent citizenship there.
Inpatriates
Hill (2005, p. 623) defines inpatriates as being 'expatriates who are citizens of a foreign country working in the home country of their multinational employer'.
Managing an International Subsidiary
Ethnocentric Approach Top management and key positions filled
by people from home country
Polycentric Approach International subsidiaries managed/staffed
by personnel from host country
Geocentric Approach Nationality deliberately downplayed Firm searches worldwide or regionally to
hire best people to fill key positions
Use of Expatriates
Use of expatriates increases when: Poor or insufficient local talent There is a need to ensure a strong corporate-
wide vision (and culture). When domestic and foreign operations are highly
interdependent. There are significant culture differences. Bottom line: When the home country does not
TRUST the abilities and/or intentions of local labour force.
Culture Shock Culture shock is the difficulty people have
adjusting to a new culture that differs markedly from their own.
PHASES Honeymoon Phase Negotiation Phase Adjustment Phase Mastery Phase
Reverse Culture Shock Reverse Culture Shock ("Re-entry Shock",
or "own culture shock“) may take place — returning to one's home culture after growing accustomed to a new one.
This results from the psychosomatic and psychological consequences of the readjustment process to the primary culture.
The affected person often finds this more surprising and difficult to deal with than the original culture shock.
Use of Expatriates
Why do International Assignments Fail?
Career blockage (“the home office has forgotten about me”)
Culture Shock, resulting in frustration and poor cooperation abroad.
Family problems, due to poor adjustment and/or lack of contact if family is left behind.
Use of Expatriates
Why do International Assignments Fail? (con’t)
Over-emphasis on technical qualifications.
Getting rid of a problem employee.
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Selecting the Expatriate Manager
Factors associated with expatriate failure: Uncertain technical competency Weak language skills Unsure about going overseas Family problems Low spouse supportBehavioral rigidityInability to adaptPoor relational abilityWeak stress management skills
Use of Expatriates
Difficulties upon Return Home20-40% of repatriates quit after returning home. Why? Lack of respect for acquired
skills/knowledge Loss of status Poor planning for return position Reverse culture shock
Use of ExpatriatesThe Role of HRM
Selection Provide realistic country preview. Measure ability to be sensitive to different
cultures and/or comfort with specific foreign country’s culture.
Have successful expatriates make the selection decisions.
Require previous international experience (pay attention to specific country worked in).
Assess family’s willingness to live or work abroad.
Use of ExpatriatesThe Role of HRM
TrainingCross-cultural training, which can address: Major cultural differences Foreign expectations regarding polite behaviour Foreign expectations regarding business behaviour How to avoid feeling insulted when no insult is made
→ Video and role-play approaches to training delivery are critical for cross-cultural training.
Use of ExpatriatesThe Role of HRM
Career DevelopmentEnsure expatriates know that an international assignment helps in terms of advancement within the firm
Compensation Disposable income abroad should be the same (if not
more) than what is given at home. Provide incentive to work abroad (bonus, pay
increase). Ensure pay equity within foreign facilities.
Key Expatriate Success FactorsKey Expatriate Success Factors
Professional/technical competence Relational abilities Motivation Family situation Language skills Willingness to accept position
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Selecting the Expatriate Manager
Factors associated with expatriate success: Good technical and language skillsStrong desire to work overseasSpecific knowledge of overseas cultureWell-adjusted family situationComplete support of spouseBehavioral flexibilityAdaptability and open-mindednessGood relational abilityGood stress management skills
Priority Of Success Factors Priority Of Success Factors
Depends on : • assignment length• cultural distance• amount of required interaction with local
people• job complexity/responsibility
Strategies For Successful Strategies For Successful
Repatriation Provide:Repatriation Provide:
A strategic purpose for repatriation A team to aid the expatriate Home country information sources Training and preparation for the return Support for expatriate and family
Re-entry Expatriation process also includes repatriation: the
activity of bringing the expatriate back to the home country
Re-entry presents new challenges May experience re-entry shock Some exit the company
Figure 7-1: Expatriation includes repatriation
Figure 7-2: The repatriation process
Repatriation phases
Preparation - developing plans for the future; gathering information about the new position
Physical relocation Transition Readjustment - coping with change
Individual reactions: job-related
Career anxiety No post-assignment guarantee of employment Loss of visibility and isolation Changes in the home workplace
Work adjustment The employment relationship and career
expectation Re-entry position Devaluing of international experience
Coping with new role demands Loss of status and pay
Figure 7-4: The readjustment challenge
Individual Reactions: Social Factors
International experience can distance the repatriate (and family) socially and psychologically (eg. Kingpin syndrome)
Each family member undergoing readjustment
Re-establishing social networks can be difficult
Effect on partner’s career
Table 7-1: Topics covered by a repatriation program
Repatriation Problems
Study of repatriated employees found that: 60-70% didn’t know what their position would
be when they return home 60% said their firm was vague about
repatriation and future career progression 77% took lower-level jobs in their firm 15% left their firm within one year 40% left their firm within 3 years
The Use of Mentors
Aims to alleviate the ‘out-of-sight, ‘out-of-mind’ feeling by keeping expatriate informed
Mentor should ensure that the expatriate is not forgotten when important decisions are made re positions and promotions
Effective mentoring needs managing
Repatriation of Expatriates
Reasons for returning to home country Most expatriates return home from overseas assignments
when their formally agreed-on tour of duty is over Some want their children educated in a home-country
school Some are not happy in their overseas assignment Some return because they failed to do a good job
Readjustment problems “Out of sight, out of mind” syndrome
Organizational changes
Technological advances
Adjusting to the new job back home
Repatriation of Expatriates
Transition strategies Repatriation Agreements
Firm agrees with individual how long she or he will be posted overseas and promises to give the individual, on return, a job that is mutually acceptable
Some of the main problems of repatriation include:
Adjusting to life back home Facing a financial package that is not as good as that
overseas Having less autonomy in the stateside job than in the
overseas position Not receiving any career counseling from the company
THANK YOU