Four in ten international assignments are judged to be a failure. And yet the number of overseas assignments continues to rise. Global companies are under considerable pressure to determine what makes a successful overseas assignment and to understand why they so often fail. Show
To minimize the risk of such failure and to ensure the well-being of their employees, organizations must examine the key challenges facing expats deployed overseas, and determine the best way to prepare, support, and manage them during their time abroad. Challenges of overseas assignmentsInternational companies are realizing that expatriate employees require significant support to complete their assignment successfully. With 40% of all overseas assignments failing, the cost of failure is high – the average cost
of an expat assignment can amount to $311,000 per year. Global Mobility in the Age of DiversityThe Role Global Mobility Can Play in Delivering a Diverse Workforce Companies sending employees overseas have a moral responsibility and a duty of care to ensure that they understand the legislation and cultural differences in the country assignees are going to. Some of the most important services that should be available to all expats on overseas international assignments include:
Why expatriate assignments fail and how to prevent this failureAccording to INSEAD business school, the five main reasons for expatriate assignment failure, which they estimate at 40-50% of all overseas deployments are: 1. You chose the wrong person in the first placeUnless there is a previous track record of success, it is very difficult to isolate the qualities that successful expats require. 2. Lack of local support in the host countryThe local branch of the company in the host country has a crucial role to play in supporting newly arrived employees. 3. Disconnection from the home countryIt is very important for expats to keep in touch with colleagues and work life back home so that they have a more balanced view of their role within the global organization and are better prepared for repatriation once the assignment is over. Further readingAssignment Failure: What Is Behind It and How to Fix ItWhy Mental Health Should Form Part of Your Duty of Care PolicyOut of Sight Out of Mind: Why are Expats Forgotten?4. Domestic difficultiesWhile children and spouses are frequent factors in early repatriation cases, these difficulties are extremely hard to spot because most expats are reluctant to share domestic or social difficulties with the company – the company needs to know that the assignee’s family is coping, and it should explain the need for open communication up-front. 5. Failure to planIndividuals need time to prepare practically and mentally for an overseas assignment, and an organization needs time to put the right infrastructure in place. It takes time to choose the right candidate, and to put in place the people required to support them, so effective planning for the overseas international assignment is crucial. Preparing employees for overseas assignmentsPreparation is key to ensuring a successful overseas international assignment and support should be offered throughout the process. Global Mobility professionals must:
The benefits of overseas assignmentsThere are numerous benefits for both companies and employees in meeting the challenges of successful overseas international assignments. Advantages for companies
Global Mobility in the Age of DiversityThe Role Global Mobility Can Play in Delivering a Diverse Workforce Benefits for employeesLikewise, there are significant benefits for employees of working abroad, and expatriates should understand that overseas deployments will often result in benefits not only for the company but for themselves:
Managing expatriates on overseas assignmentsResearch shows that services that prepare, support, and show employees that they are valued typically represent just 1% of the total cost of overseas assignments. The following tips apply to all global organizations managing expatriates on overseas international assignments:
Be preparedWhen it comes to overseas assignments it is really a case of – fail to prepare: prepare to fail. Global mobility professionals must examine the challenges facing the modern assignee and determine the best practices to support and manage them throughout their assignment. As International Management Consultant Audrey Rowley puts it: “Successful overseas assignments depend on the individual and the support they receive. After the initial honeymoon period, it is common for employees to feel isolated because of the cultural and language barriers and the separation from friends and family. Having a benefit and support program that starts [at home] and continues throughout the assignment can alleviate the risk of failure, provide employees with support to address any issues, and ensure the assignment is a success for the company and the employee.” Which of the following is the primary reason for an expatriate's failure to function effectively in a foreign assignment?Expatriate failure is often caused by lack of practical support in the host country and/or disconnection with the home environment.
Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan?Which of the following is the main reason for the failure of individual incentives to motivate employees in Japan? Emphasis on paternalism. Nontaxable perks such as a company vehicle given to an expatriate is an example of a(n): fringe benefit.
Which scenario is an example of expatriate failure?Expatriate failure tends to stem from the inability of the manager to adjust or the inability of a spouse to adjust or other family matters.
Which of the following is the biggest disadvantage of using an expatriate?The chief disadvantages of an expatriate sales force are the high cost, cultural and legal barriers, and the limited number of high-caliber personnel willing to live abroad for extended periods.
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