international assignments create expatriates

8 Tips for Preparing Expatriates for Foreign Assignments

Preparing expatriates for foreign assignments is a crucial undertaking for either expansion processes or short-term business travel. The challenge here is to ensure that the employees chosen to go work abroad do so successfully. Much of that effort will be produced by them, but even more important is for the wider company to provide support.

When moving and managing assets - in this case, your talented employees - you want to make sure that all that time and effort isn’t for nothing. You want to make sure the move is compliant and that workflows shared by your team and the expatriate employee are streamlined. 

So what do you need to focus on? Here are eight tips for preparing expatriates for foreign assignments in a successful mobility project. 

• Pre-Move Training
• Sourcing Immigration Support
• Ensure Continued Communication
• Provide Support On The Ground
• Undertake Project Alignment Meetings
• Invest in Knowledge Management
• Provide Home and Host Sponsorship
• Take Into Account Domestic Duties

1. Pre-Move Training

Preparation for expatriation is of utmost importance. This training needs to be well-researched, taking into consideration the potential challenges that employees and mobility teams might face. For example, identify:

Your potential challenges : For example, a specific country could require a specific tax set up for expatriates or business travelers. You’ll have to research the requirements that apply to your expatriation.

Strategies that help you deal with these issues: Some global organizations work with Professional Employer Organizations (PEO) in order to maintain compliance and work in line with cultural requirements. This is one potential solution that you might find appealing.

Areas for cultural training : Cultural expectations can be radically different in one country compared to another - while this may seem like the last thing to focus on, it’s worth spending time looking into cultural differences, just so no accidental faux pas are made.

The overarching goals of the assignment : An expatriation depends on all stakeholders having visibility and an understanding of the reasons for it. 

Local language training : Even if the host country has a good rate of use for your language, it’s worth helping your employee get to grips with the basics.

2. Sourcing Immigration Support

Immigration and the requirements therein are obviously crucial. Border controls, regulatory environments and immigration law are therefore all things to contend with. Now, these can be daunting and confusing, but it’s imperative to fully prepare for them, as they’re some of the first barriers to overcoming when expatriating an employee for foreign assignments. 

You need to make sure that you’re expatriation is in line with national and international immigration policy for both your home and host country. Similarly, visas and short-term or permanent residency applications need to be sent off for. Without these, alongside a considered approach towards global immigration , your overseas assignment won’t be able to continue. 

3. Ensure Continued Communication

Without communication, there’s no expansion. Home and host teams need to be on top of carrying out frequent communications, so that data is acted upon and problems can be solved collaboratively.

Assignees need to be proactive in this and so too do home teams. Communication allows organizations to leverage what’s being learned and respond actively to specific events. On top of that, communication needs to be structured so the learnings and updates shared are easily tracked. Monthly meetings and weekly check-ins are good places to start. 

4. Provide Support On The Ground

Alongside frequent communication, on-ground support also needs to be offered. This is a job for HR teams, who can help expats and their families (if applicable) adapt to their new surroundings. This kind of support covers:

• Finding accommodation.
• Creating bank accounts and setting up payroll in line with host-country regulations ( This is another obligation that a PEO can support you with ).
• Providing health insurance.
• Enrolling children in school (if applicable).
• Preparing accurate taxation processes.

Taxation is one thing to be aware of, as getting the process wrong can result in legal ramifications. Again, this is something a PEO can help support , as they can act as local Employers of Record, managing and deducting taxation at source - making sure your expatriate assignment is compliant in terms of taxation. 

5. Undertake Project Alignment Meetings

Once the critical information regarding the expatriate employee’s assignment, residency, taxation and other requirements has been exchanged with the relevant stakeholders and/or authorities, it’s time for a project alignment meeting.

This meeting should be held between the employee, a host manager or host team and home team. In it, you should identify the potential causes of friction for the assignment and work to strategize mitigation techniques. Similarly, go over mutual expectations held by the home and host team so that visibility and transparency are also captured. 

Overall, you’ll want to firmly pin down issues that may affect:

• Data collection.
• Reporting strategies.

6. Invest in Knowledge Management

Any assignment knowledge generated needs to be properly disseminated to the relevant parties, quickly and efficiently. These lessons are not only worthwhile for future expatriates, but for the wider company itself and how it approaches global marketplaces. 

When we ensure that learning is absorbed and spread across the whole enterprise, we help to reduce mistakes and delays in the future.

7. Provide Home and Host Sponsorship

As we’ve briefly discussed, having home and host teams managing the expatriate are important, but let’s cover that more in-depth. 

Communication via email isn’t the best way to manage a remote employee. To make sure the expat doesn’t feel cut off from home office processes, create teams or ‘sponsors’ that oversee the experience and work of the employee. 

Whether they be points of contact or mentors, these individuals (or wider teams) help to anchor an expat employee to the work in the home country, keeping them updated on any new developments. Both sides help to co-manage and resolve problems when they arise.

Sponsor individuals within the home country are best suited if they too have had experiences with expatriation, because a lot of this management is about empathy - not just looking for hitting the next performance goal. Expatriation is a difficult process, especially if the host country is a radically different place.

8. Take Into Account Domestic Duties

Another tip for preparing expatriates for overseas assignments is to make sure their family is supported.

Some expatriate employees have children and spouses, which sometimes do make an overseas assignment a lot more complex. These difficulties are usually hard to spot, as many employees will be reluctant to share them with employees, due to the size of the project and the personal nature of these difficulties.

It can be the case that the people most likely to be able to help are the last to know, so this is another thing that good communication can help with. From the home country team’s point-of-view, they need to inquire regularly about how the domestic side of the project is going. 

It needs to be made clear that any issues in regards to this need to be made known, but also that no judgment will arise from those issues being aired. Expatriation is a tough process for a family and businesses need to be supportive. This kind of transparency will dramatically help the overseas assignment. 

To discover more about overseas assignments and expansion, we’ve created a fantastic foundational guide that will help you when strategizing your next moves, be they domestic or international. 

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Expatriate Management (Best Practice Tips)

Anne morris.

• 11 April 2020

IN THIS SECTION

Managing expatriates is a multi-stage process, where each stage can be crucial to the overall success of an overseas assignment for your business, as well as the individual assignee, on both a personal and professional basis.

The following guide looks at best practice for employers when deploying individuals overseas, including some important practical tips for expatriate management, from preparation through to repatriation.

Preparing expatriates for an overseas assignment

The management of overseas assignments can be a complex process for employers and HR personnel to get right, especially when trying to balance the cost of an assignment within the shifting demands of the global business environment against the individual needs of the expatriate.

By thoroughly preparing in advance of the assignment, and by properly investing in the necessary processes from the outset, you can help to minimise wasted expenditure and unnecessary costs at a later date. This can also help to avoid any loss of revenue, and even the potential loss of top global talent from within your organisation, resulting from a failed assignment.

The level of preparation required in the expatriate management process can vary depending on the nature and length of the overseas assignment, the location of the assignment, the number of assignees involved and the individual personal circumstances of each assignee.

In broad terms, however, your pre-assignment expatriate management process should include the following.

A comprehensive assessment of the nature and length of the overseas assignment needed to meet your business objectives, having regard to the flexibility offered by various different types of assignment, from business trips to permanent relocation. This process should also be carried out in the context of any prospective candidates, their level of experience and their personal circumstances. For the novice expatriate, the option of commuter and short-term assignments may be a sensible starting point.

The provision of an adequate compensation package to adequately incentivise prospective overseas assignees, attracting the best available candidates. This should include a suitable salary that matches or exceeds the typical salary that an employee would get paid in their home country for doing the same job, together with relocation costs and a cost of living allowance to reflect any additional daily expenditure in the host location.

Implement a thorough selection and vetting procedure for prospective assignees, ensuring they are suitably qualified and capable of undertaking the assignment in question. Each assignment will present its own unique challenges and demands, so you will need to match the right person to the job, having regard to the individual needs of the assignee in the context of the specific assignment and host location. This could include formal and informal assessments of their capabilities, career aspirations, physical and mental wellbeing, and whether they are emotionally equipped to withstand any cultural adjustment.

A full assessment of any travel and legal risks prior to deployment tailored to the specific assignment, the host destination and the individual assignee(s), ensuring that you fully research the country and region in which the assignee will be working. You should also keep abreast of any imminent changes that may affect the assignment or assignee prior to their deployment.

A pre-deployment programme of training and education for overseas assignees and their families, where applicable, about the host destination. This could include cross-cultural training and language classes, as well practical information about the region or city in terms of transport, education, recreation, healthcare services, and any safety and security issues. For those travelling to high-risk destinations this should also include security briefings and training on hostile environment awareness.

Supporting expatriates during an overseas assignment

Even with thorough preparation prior to the start of an overseas assignment and through to deployment, the provision of ongoing support for an expatriate during the lifecycle of their assignment can be key to its’ overall success.

A human-centric approach should be taken to expatriate management, where absent the right personal and professional support for your overseas assignees and their families whilst abroad, this could seriously affect the outcome.

The level of support required can again vary depending on the nature and length of the overseas assignment, its’ location t, the number of assignees involved and the personal circumstances of each assignee.

In broad terms, however, your active-assignment expatriate management process should include the following:

The provision of an ongoing benefit and support program to help assignees and their families integrate into their host destination. This could include local support, where you could consider outsourcing this role to a specialist who can help novice expats to settle into their new surroundings and signpost them to different services. You should also provide key HR contacts back home to address any personal or professional problems, or in the event of an emergency.

Ensure a positive employee experience, where psychological wellbeing and happiness while on an overseas assignment is strongly linked to expatriate success. This could include the use of informal introductions, employee-centric activities and social networking events on the assignee’s arrival in the host destination to help them integrate with their new work colleagues and other ex-pat families within your organisation.

Maintaining regular contact with your overseas assignees, ensuring effective coordination between management and HR, as well as any local support team in the host destination. Through clear communication you can help to pre-empt any problems that may lead to job dissatisfaction or difficulties with cultural integration. This can also help assignees to keep abreast of any workplace changes and not feel disconnected or isolated.

The provision of quality healthcare for maintaining the physical and mental health of your employees and their families. You should ensure that you opt for an international health insurance plan that offers the assistance and protection your assignee’s may need, including access to a 24-hour helpline that can be used to answer any medical or security questions, or facilitate the provision of emergency assistance, at a time when an assignee’s usual points of contact would not be available.

Remain fully informed of any risk factors that may impact on the assignment, where even relatively safe destinations can quickly become high-risk regions due to health, safety, security, political or social reasons. You should also be able to effectively communicate any such changes and important information to assignees working remotely, especially in relation to health and safety.

The effective use of technology, including data and analytics tools to make informed management decisions in respect of overseas assignments, from cost control to key performance indicators. Further, by providing overseas assignees with the right equipment and devices to do their job can help to maximise productivity, monitor their progress and even measure the assignee experience. This should include the provision of secure wireless networks, good connectivity and up-to-date software.

Making provision for expatriates following an overseas assignment

Having successfully completed an overseas assignment, this is not the end of the process for either you or the expatriate. The repatriation process, even though this is the last step in the expatriation lifecycle, can be just as challenging as the deployment process. In many cases this will involve a process of practical, mental and emotional readjustment for the assignee, as well as their families.

The level of support required for expatriates following an overseas assignment can vary depending on how long an assignee has spent abroad, the extent of any family ties back home and the nature of any role that they will be returning to.

In broad terms, however, your post-assignment expatriate management process should include the following:

The provision of an adequate repatriation package to adequately incentivise overseas assignees to return home to work for your organisation. This should include the potential for career progression or a suitably senior role to return to home to, ensuring that you retain your top talent and benefit from their overseas experience.

The provision of other initiatives to alleviate the risk of losing key employees, including a suitable relocation package following a long-term overseas assignment to enable an employee to easily move back to the UK. The issue of costs must always be balanced against the need to retain talent to ensure the continuity and success of your business for the future. Given their international experience, expatriates are open to being headhunted by your competitors, so the cost of financial incentives must be weighed against the risk of losing them altogether.

The use of debriefing interviews to capture lessons learned from the overseas assignment, making the most of any invaluable insight and new industry knowledge the assignee has gained from their experience abroad. This will help you to develop your business back in the UK and stay ahead of your competitors. This will also give you the opportunity to explore any career aspirations and potential options available to your assignee, as well as the possibility of any future overseas assignments.

Practical tips for effective expatriate management

Although statistically there can be a high failure rate for overseas assignments, the risk of an unsuccessful assignment can be minimised by applying the following practical tips to the expatriate management process:

• Carefully consider the assignment in the context of your business goals, including the nature of the assignment and number of assignees needed Offer adequate compensation packages to attract the best available candidates, including relocation and costs of living allowances.
• Implement a thorough selection and vetting procedure for prospective assignees, ensuring they are suitably qualified and capable of undertaking the assignment in question in the host destination.
• Thoroughly research the host destination for any travel and security risks, keeping abreast of any imminent changes that may affect the assignment or assignee.
• Thoroughly prepare your assignee for deployment through a programme of pre-deployment training, including their families where applicable Invest in an ongoing benefit and support program to help assignees and their families integrate into their host destination.
• Encourage a positive employee experience through the use of informal introductions with ex-pat families, employee-centric activities and social networking events on the assignee’s arrival in the host destination.
• Maintain regular contact with your overseas assignee to help pre-empt any problems and avoid any feelings of isolation.
• Remain up-to-date with any changes in the host destination that may affect the assignment or assignee.
• Provide adequate healthcare, including access to a 24-hour helpline and the provision of emergency assistance where needed.
• Provide adequate equipment and up-to-date ways of increasing productivity, monitoring performance and staying connected.
• Provide adequate repatriation packages to incentivise assignees to return to work for you, including the potential for career progression or a suitably senior role, as well as any necessary relocation package.
• Utilise debriefing interviews to capture lessons learned from the overseas assignment and explore potential career options available to the expatriate, including the possibility of further overseas assignments.

Need assistance?

Seeking expert advice in expatriate management is often money well spent. The cost of sending employees abroad can already be significant, but the risk of losing that investment through either a failed assignment or loss of the assignee altogether from within your organisation should be weighed in the balance.

Getting it right can result in an increase in revenue, the retention of talent and the ability to repeat the process successfully time and time again.

DavidsonMorris are employer solutions lawyers with specialist experience in global mobility and supporting businesses with their international workforce needs. For advice and help with your expat management, speak to us .

Expatriate  management  FAQs

What is expatriate in hrm.

Expatriate in Human Resource Management (HRM), commonly shortened to expat, is someone living in a country different to their own for the purposes of undertaking a short or long-term overseas work assignment. This can include employees sent to manage a new office or set up a new location.

How do you manage an expatriate employee?

Managing an expatriate employee is a multi-stage process, where each stage can be crucial to the overall success of an overseas assignment for both your business and the individual assignee. Effective expatriate management should run throughout the lifecycle of an assignment, from pre-deployment preparation through to repatriation when the employee returns back home.

How do you manage expatriate failure?

In instances where an expatriate is inadequately prepared for a short or long-term overseas assignment, or where the language and cultural differences cannot be overcome, this can often lead to early repatriation. By providing support on a personal and professional level both prior to, during and after the assignment, the risk of expatriate failure can be minimised.

Last updated: 11 April 2020

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.

She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.

Anne is an active public speaker, immigration commentator , and immigration policy contributor and regularly hosts training sessions for employers and HR professionals

• Anne Morris https://www.davidsonmorris.com/author/anne/ Employment Case Law Update June 2024
• Anne Morris https://www.davidsonmorris.com/author/anne/ Is Redundancy Pay Taxable? Employer Guide
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• Anne Morris https://www.davidsonmorris.com/author/anne/ UK General Election Manifesto: Summary for Employers

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility .

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners , we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.

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Managing International Assignments: Compensation Approaches

A new international assignment landscape is challenging traditional compensation approaches

For many years, expatriate compensation has been focused on a dilemma: having assignees on expensive home-based expatriate package versus localization - which is about replacing expatriates with locals or at least transition expatriates from an expatriate package to a local salary. Many predicted that the traditional home-based balance sheet approach would gradually disappear. The predictions of the demise of the typical expatriate approach have been greatly exaggerated. We are witnessing the emergence of new compensation challenges instead, due to the complexity of having to manage multiple types of assignments and assignee categories.

The home-based approach still retains its utility for certain kinds of moves (e.g. business-critical assignments or moves to hardship locations). Local strategies are becoming more common but, due to the difficulty of applying them consistently in all transfer destinations, they are used only in some cases (moves between similar countries, developmental moves) and take multiple forms as “purely local” or local-plus approaches. Additional approaches like international compensation structures have emerged to address issues of global nomads.

The challenge for HR managers is, therefore, not so much to find the best approach applicable for all assignments as to deal with individual assignment complexity, envisage greater mobility policy segmentation and, if relevant for the company, map each compensation approach to a particular assignment in a consistent way.

The increasingly complex international assignment landscape: One size does not fit all anymore

Expatriates vs. Locals

One size fits all?

Let's localize assignees as soon as possible!

Expatriates

Rise of the third-country nationals

Need to add a cost efficient category for junior employees/developmental moves?

Traditional expatriates

Global nomads

Permanent transfers

Employee-initiated moves

Local or local plus?

Foreigners hired locally

Commuters (cross-border or regional

Multiple types of short-term/project/rotational assignments

Increasing number of home locations

Reviewing international assignment approaches in three steps:

Step 1: Understand the options available

Approaches linked to the host country (local or local-plus)

While these approaches sound logical and natural (when relocating assignees to a new country, they will be paid according to the local salary structure in that destination country) their practical implementation is often tricky. Few employees accept a salary decrease when moving to a low-paying country. It is often difficult to reintegrate assignees relocated to a high-paying country into their original salary structure due to their inflated base salary.

The host approach was historically not the most common for assignees on long-term assignments. However, we have witnessed a growing interest in recent years in host-based approaches – either a host approach or local-plus approach (host salary plus selected benefits or premiums) – as companies are trying to contain costs and as significant salary increases in many emerging markets make host strategies more attractive.

Approaches linked to the home country ("balance sheets")

Home-based approaches have been traditionally the most commonly used to compensate international assignees. Assignees on a home-based approach retain their home-country salary and receive a suite of allowances and premiums designed to cover the costs linked to expatriation. The equalization logic behind the balance sheet approach (no gain/no loss) encourages mobility by removing obstacles. Retaining the home-country salary facilitates repatriation. The balance sheet approach can, however, be costly. Many companies either look for alternatives or try to reduce the benefits and premiums included for less significant moves.

Other Solutions

Hybrid approaches attempt to combine the advantages of the home and host-based approaches. These often mean running a balance sheet calculation and comparing the results with the host market salary to determine what solution would make sense. A hybrid approach can work well for a small assignee population but it can generate inconsistencies when companies expand globally, and the assignee population grows significantly.

Finally, some companies rely on international compensation structures that do not use the host and the home structures at all. These might utilize the average salary in a selected group of high-paying countries where the companies operate. This approach facilitates mobility for global nomads and highly mobile employees. It is, however, often very expensive and doesn’t solve all assignment-related issues (e.g., currency issues, pension, taxation). It is typically used in specific industry sectors (e.g., energy and engineering) and for a few assignees (top level managers and global nomads.)

Step 2: Assessing assignment patterNs and business objectives

Assignment patterns

Are assignees moving between countries with similar salary levels, which would make the use of local or local plus easier or, on the contrary, are expatriates sent to host countries with different pay and benefits structures (low-paying to high-paying, or high-paying to low-paying country moves)? Are moves for a fixed duration – e.g., assignments lasting one to five years – or will the company rely on permanent transfers with no guarantee of repatriation?

Assignee Population

Are assignees coming mainly from the headquarter countries (typical for early stages of globalization) or is the number of third-country nationals already significant? A growing number of multinational companies report that the number of moves between emerging markets (“lateral moves”) is catching up with or exceeding the number from the headquarters, prompting a review of compensation approaches.

Are some assignees becoming true global nomads who move from country to country without returning home during their career? Employees, and especially the younger generations, are becoming much more mobile, but only a minority would be global nomads. These assignees are usually top-level managers, experts with unique skills, or globally mobile talent sourced from small or emerging countries where the absence of career opportunities perspective would preclude repatriation perspectives.

Company's philosophy and sector

Some industry sectors like services and finances relocate employees between major regional and financial hubs which facilitate the use of local approach, whereas energy and engineering companies transferred employees to hardship locations are a key feature of the business – and requires comprehensive expatriation packages often based on balance sheets and international salary structures.

Step 3: Assess segmentation needs

An increasing number of companies rely on expatriate policy segmentation to reconcile the cost control versus international expansion dilemma – how to have the same number of assignments or more without increasing the budget dedicated to international mobility. Segmentation means reallocating part of the budget to business critical assignees and limits the costs of non-essential moves.

Some of the commonly used assignment categories include strategic moves (business-critical), developmental moves (which benefit both the company and the employee), and self-requested move (requested by the employee but not essential to the business).

A consistent policy segmentation approach allows HR teams to present business cases or assignment options to management and provide a clearer understanding of the cost and business implications of relocation for different assignees.

It could also help manage exceptions into a well-defined framework based on a consistent talent management approach, as opposed to ad hoc deals.

Example of segmented compensation approach: the four-box model

Want to learn more about Expatriate Compensation Approaches?

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10 Tips for Managing Successful International Assignments

20 Apr / 2021 | By TMA World

International assignments can be one of the most rewarding and life-changing experiences in an individual’s career. Yet international assignments are expensive for the employer – and a surprisingly high number of them fail. There are various reasons for this, but culture shock, failure of the employee to perform in their new post and dissatisfaction with the assignment itself are cited as common causes. How can you best prepare employees for international assignments – and help them make the assignment a success? Here are some tips.

1. Make a business case for international assignments

Sending an employee to live and work overseas is expensive. Is there a case for doing this? Would a local hire be better, or is there absolutely nobody else for the job? If there is nobody locally, does the individual have the right skills and mindset? Are they open to living and working in different cultures? What benefit will their overseas experience bring to the company when they return?

2. Consider the individual’s position

Employers need to be sensitive to personal situations when considering sending someone overseas. Posting an LGBTQ individual to, say, a conservative Muslim country is not impossible, but requires serious consideration and extra support. The same applies to an employee’s partner and family; is there anything that might put them at risk in the new destination?

3. Manage expectations

Employees need to be prepared for the fact that life during international assignments will be different, and not necessarily glamorous and exotic. There will be cultural barriers to overcome, as well as homesickness and culture shock to deal with. Families and spouses need to be prepared for the changes. New relationships will need to be built in the workplace and a new structure fitted into. Going with realistic expectations is better than plunging into international assignments unprepared, and having it turn out to be a disappointment.

4. Prepare for cultural immersion

Embarking on a programme of cross-cultural training is invaluable before taking up international assignments; individuals learn to understand their own mindset and prejudices as well as what to expect in the new culture. There are less formal ways to prepare, too. Would-be assignees for international posts could should be encouraged to build up a picture of the new culture by reading literature, newspapers and blogs. They should listen to podcasts and even watch movies to put together the jigsaw of everyday life in the new place.

5. Arrange mentoring schemes

A cross-cultural mentor might be a colleague in the new office, or a co-worker who is in the destination, or has experience of it. Ideally, new expat workers should have a mentor in the new destination and one at home; it is very easy for expatriates to feel cut adrift from the familiarity of their old office and colleagues. Typical discussion points with a mentor might include management style, hierarchy, gender issues, meeting etiquette, negotiating and decision making. Essentially, though, a mentor should be a sounding board on whom the expat can rely when problems crop up.

6. Encourage a positive attitude

Even having a few simple memos and pointers can help newly landed expats through difficult times. Learning not to compare their old culture with the new one; remembering that the new culture is different but not necessarily wrong; understanding different approaches to time management; and starting out with the basic assumption that people in the new culture are friendly and welcoming, even if there are hiccups in communicating with them. This is all part of cross-cultural communication training.

7. Offer language training

Even if English is the international language of business, and even if English is the language of the workplace in the new country, a basic conversational command of the destination language will go a long way towards integrating into society and overcoming culture shock. This is important for trailing spouses, too; culture shock can be even worse for a spouse who has less structure to their day and lacks the confidence to build a life of their own.

8. Keep communication focused

Mentoring aside, a company should have a formal reporting scheme while the employee is abroad on assignment. Checking in regularly is the best way to stay appraised of how the assignment is progressing, what new ideas and useful information have been picked up, and dealing with any problems before they escalate. Companies should make the most of the assignee’s time abroad by encouraging them to share their experiences – by blogging, for example, or participating in video conferences.

9. Provide support for sufferers of culture shock

Culture shock is a serious condition; it can lead to depression, a sense of isolation and even illness. Almost everybody suffers from culture shock in some way. Most people get through it but some fail to adapt, feeling lonely, resenting the new culture, maintaining an illusion that everything back home is superior. Acknowledging culture shock and finding small ways to deal with it should all be part of preparation for life abroad, for example, working to establish a network of friends, both expats and people from the new culture; keeping busy; and making an effort as a family to explore the new culture; visiting markets, trying out restaurants and arranging enjoyable activities for weekends, like a trip to the beach. Craving the comforts of home is not wrong; it’s normal.

10. Remember that reintegrating is just as important

Many of these issues apply to the end of international assignments. A posting abroad can be a life-changing experience and it’s not uncommon for individuals to return home with new skills and ambitions to find that they are different – and that their old friends, colleagues and workplace have changed, too. Some of the positives of an overseas posting are increased confidence, a broader world view, better empathy and more creativity when it comes to problem solving. Employers need to harness these new qualities, not just expect the individual to slot back in. Preparation should be made several months before an assignee returns. What new skills do they have? How do they see themselves fitting in? What opportunities might be available for them? Fail to prepare and the chances are, they’ll take their new skills elsewhere.

Our blended learning solutions ensures your global travelers, international assignees and their families will be successful. Our learning process can be fully adapted to suit the needs of your organization. Our training is delivered across coaching sessions, instructor led training and online learning pathways.  Click here to read our brochure for more information . 

Interested in how introducing a cultural intelligence tool in your business could help to create a more borderless workforce? We’d love to show you our groundbreaking platform.

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7 Strategies for a Successful International Work Assignment

Published: Oct 08, 2018

International assignments are exciting for a host of reasons, but having the opportunity to live in another country while finding success in your career at the same time is particularly compelling. Working abroad allows you to gain real-world experience, advance the skills you have, and learn how to thrive in a global environment.

But living and working in a new country with a different culture is a major life change. It’s important to immerse yourself in the experience and remain positive through the ups and downs. Below are 7 tips to make the most of your journey abroad.

1. Keep an Open Mind

Social media and the internet allows us to connect with people from all over the world. Take time to learn about the history of your new home, including any local customs or laws, so you can set more realistic expectations ahead of time.

When you finally touch down in your new destination, keep an open mind. What you think you know about an area or country may end up being turned on its head once you spend more than a few days there.

For Allison Alexander, a participant in Abbott’s Finance Professional Development Program , an international assignment was the ultimate lesson in flexibility. “Going to an international role means you’re stepping into a culture and a set of expectations that are foreign to you,” she explains. “It forces you to be open to the unexpected.”

Unlike traveling for leisure, international assignments allow you to spend months or even years in a location. You can, and should, tap into the global mindset you’ve already developed while leaving room for all the surprises that will come from long-term exposure to a different culture.

2. Set Goals

Maximize the benefits of an international assignment by setting goals for yourself at the beginning. What do you hope to accomplish in the first two weeks? How can you challenge yourself once you’ve settled in? And when you leave, what are the skills you want to take with you? Having clearly defined milestones will help you stay focused on what’s important and define the steps needed to grow your career.

3. Develop Language Skills

You may not become fluent, but practicing the local language can help you build deeper connections within the community and potentially open up new work opportunities in the future. Don’t fret if you stumble through mispronunciations and tenses at first, the more you practice, the more confident you'll become, and the better you'll get.

4. Be Adventurous

When you're abroad, it's great to take advantage of travel. You have a new world at your doorstep! It's also a chance to try activities you've never tried before.

"I've been doing things I thought of all my life but could never muster enough courage to actually do," says Timir Gupta, another member of Abbott's Finance Professional Development Program, who has traveled solo, tried skydiving, and chased the northern lights. "And it's a great conversation starter during an interview," he adds.

5. Apply New Perspectives

Gaining insight into different business practices can help you learn to look at old problems in new ways when you return home. This type of creative problem solving will be an asset no matter what your next assignment is.

"When you finally make your way back to a domestic role, you've now become an expert in two completely different professional structures," says Alexander. "You've seen what works and what doesn't in a global setting, and you can lead the group on new ways of thinking that may lead to more success."

6. Expand Your Network

Get out and build connections, both at your assignment and beyond. "Because of traveling, I have friends all over the world," says Gupta. He now has connections across five continents that he can tap into when looking for a reference or career advice.

Luckily, maintaining the professional network you build abroad is now easier than ever before. Social media, LinkedIn, and apps like WhatsApp can help you stay in contact with your colleagues and mentors.

7. Market Yourself and Build Your Career

When you return home, don't forget to incorporate your experience into your personal branding. You want to make sure prospective employers know how your new skills, perspectives, and connections set you apart. Think: How can I rework my resume and reframe interview answers to showcase what I've learned?

Depending on your experience, you may even refocus your career or choose employers who will use your global mindset. If you want more opportunities to go abroad, many multinational organizations offer international assignments. With offices in more than 150 countries, Abbott has numerous internships and development programs for students in finance, information technology, engineering, manufacturing, environmental health, and quality assurance.

Look for companies expanding in emerging markets, too. This can give you the unique opportunity to get in at the ground level and learn how to evolve a product or service to match the local market.

No matter what you choose or where you go, an international assignment can provide you with the unique opportunity to grow personally and professionally—and hopefully have a little fun along the way too.

This post was sponsored by Abbott .

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The Right Way to Manage Expats

• J. Stewart Black
• Hal Gregersen

Sending executives abroad is expensive, but most companies don’t get much back for their money. Those that do follow three practices.

In today’s global economy, having a workforce that is fluent in the ways of the world isn’t a luxury. It’s a competitive necessity. No wonder nearly 80 % of midsize and large companies currently send professionals abroad—and 45 % plan to increase the number they have on assignment.

• JB J. Stewart Black is a professor of global leadership and strategy at INSEAD and a coauthor of Competing in and with China: Implications and Strategies for Western Business Executives (Thinkers50). Email: [email protected]
• Hal Gregersen is a Senior Lecturer in Leadership and Innovation at the MIT Sloan School of Management , a globally recognized expert in navigating rapid change, and a Thinkers50 ranked management thinker. He is the author of Questions Are the Answer: A Breakthrough Approach to Your Most Vexing Problems at Work and in Life and the coauthor of The Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators .

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IESE Insight

Whom to send where? International assignments and multinationals

In multinationals with subsidiaries scattered around the world, communication is key — and complex. So what's the best way to get firm knowledge flowing in the right directions?

One of the greatest changes to global staffing practices over the past two decades has been the dramatic rise of international assignments as a means to transfer knowledge where it needs to go.

Sending a trusted manager from headquarters to a foreign subsidiary is the most common kind of international job assignments. These are your traditional "expatriates." Next to them, researchers have observed an even more significant surge in the number of "inpatriates" — i.e., managers who are local to the subsidiary site and have been sent to HQ. Mirroring the expat logic, these inpats are meant to help knowledge flow between multinational offices and HQ.

So, does it work? Research published in Human Resource Management , co-authored by Anne-Wil Harzing, Markus Pudelko and IESE's B. Sebastian Reiche , says yes and reveals quirks specific to certain international posts. The large-scale survey of more than 800 majority-owned subsidiaries across Asia, Europe and North America reveals both the benefits and the limitations of international assignments for managers as a means to better transfer knowledge within multinationals.

The role of the manager sent abroad

The international assignee arrives from another country, either to headquarters or to a subsidiary unit, with the goal of promoting knowledge transfer. But what does that mean on the ground?

Staff members may transfer knowledge directly — by sharing information on HQ culture and management practices with their colleagues and relaying learning outcomes back to the home unit. Knowledge is often complex and tacit and requires direct personal contact to impart.

Employees may also transfer knowledge indirectly — by acting as bridges to link home and host-unit staff, developing social capital between units and acting as facilitators and connecters. The survey developed and updated by Harzing et al. captures both types of knowledge flows.

Where you come from and where you're going

Expats are old news. What's novel in the 2015 research is that inpats are almost as easy to find at a multinational. In fact, in this extensive survey, the co-authors find that for every 100 employees at a subsidiary, on average, 1.22 are expatriates from HQ and 1.16 are former inpatriates (i.e., back from an assignment at HQ).

Granted, different countries continue to approach staffing in different ways, the study reveals. Japanese multinationals, for example, are still more prone to post parent-company nationals to manage subsidiaries, as are Korean and Chinese companies. Meanwhile, multinationals based in Northern European countries are most likely to hire local managers or third-country nationals to manage their foreign offices, which has its advantages.

When expats are found in subsidiaries, they are likely to take the top spot (managing director). In fact, 33 percent of subsidiaries in the survey have expats on top. Meanwhile, local R&D and marketing departments are also relatively likely to be led by expats (weighing in at 18 and 16 percent, respectively). While conventional wisdom might suggest a local hire to best understand local market needs, tapping expats to direct the marketing department is still surprisingly common, the co-authors find. At the same time, expats head up fewer than 10 percent of manufacturing departments and 6 percent of human resources departments.

Knowledge flows

The research finds the presence of expats and former inpats in subsidiaries usually helps knowledge flows — but not always.

More specifically, the presence of an expat manager at a subsidiary helps knowledge transfer from HQ to that subsidiary in all functions studied except marketing. Benefits are especially visible when there's an expat heading a subsidiary's manufacturing department, where HQ's technical knowledge may help not only manufacturing, but HQ understanding in other units, too.

Summing up detailed analyses presented for different cases, the co-authors conclude that expatriates are more effective transferring knowledge from HQ than doing the reverse. To achieve knowledge flows to HQ, it makes more sense to inpatriate local hires (i.e., send them from subsidiaries to HQ) and then send them back home again. It's an office shuffle that may make multinationals grow wiser on the whole.

Is knowledge transfer a challenge in your company? The first question to ask yourself might be which direction you need the knowledge to flow in. It could make all the difference as to which company employees pack their bags.

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Sustainable Expatriate Management: Rethinking International Assignments

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This article explores the concept of sustainable expatriate management, which incorporates environmental, social, and economic factors, and how it can be implemented in a corporate context. We argue that with increasing societal and environmental issues, it is crucial to revisit the overall global philosophy and policies, including the expatriate life cycle. We apply the UN Sustainable Development Goals (SDGs) framework to examine how businesses can remodel their practices to become more resilient. Furthermore, based on a systematic literature review, we identified gaps in research on the integration of environmental factors into sustainable expatriate management. Lastly, this article presents a model for understanding the three layers of sustainability in expatriate management, which can assist practitioners in identifying blind spots and material topics.

Introduction

According to Ghauri, Strange and Cooke (2021) , the global business environment has improved awareness of sustainability as a ‘new reality’. Furthermore, addressing the UN Sustainable Development Goals (SDGs) in a corporate context is becoming increasingly popular (Liou & Rao-Nicholson , 2021; Montiel , Cuervo-Cazurra , Park , Antolín-López , & Husted , 2021; van Tulder , Rodrigues , Mirza , & Sexsmith , 2021) . Although “sustainable” and “green” global mobility are widely discussed concepts, they have not yet been widely integrated into sustainable expatriate management.

However, due to its nature, expatriate management is exposed to various societal and environmental issues that are forcing the field to move towards more sustainability-oriented practices. This implies that decision- and policy-makers should revisit the overall global philosophy, including policies and practices. Therefore, stakeholders should reevaluate topics like business trip policies, health, and equality, as well as other facets of the international assignment cycle (Fan , Zhu , Huang , & Kumar , 2021) . Consequently, in this paper, we will outline how practitioners can rethink expatriate management using a sustainable development lens and how this shift in perspective provides fertile ground to redesign the expatriate life cycle.

Inspired by the “strong sustainability” or embedded systems view (Giddings , Hopwood , & O’Brien , 2002) , we define sustainable expatriate management as any employee-related cross-border (work) activity, which, by its design, considers planetary and societal boundaries and acknowledges the embeddedness of economic impacts within this larger framework (see Figure 1 for clarification).

Source: Own illustration based on Giddings et al. (2002) , p. 192.

Theoretical Framework: Sustainable Development Goals

According to Finaccord’s (2019) latest research, in 2017, there were 66.2 million expatriates working abroad globally, and forecasts for 2021 expect 87.5 million in total. Therefore, this topic affects a relatively large amount of people moving across borders. Nowadays, increasing environmental, social, and economic crises are challenging global business practices. According to the World Economic Forum Global Risks Report, the risks that are most likely and will have the most impact are predominantly environmental risks (e.g., climate action failure, human environmental damage, biodiversity loss, natural degradation, extreme weather, natural resources crises) (World Economic Forum , 2022) . These are expected to affect multinational enterprises’ (MNEs) activities on a global scale.

As the complex, or so-called wicked, problems of our time are interconnected, it is crucial to avoid a siloed perspective of these risk categories. Therefore, we provide a holistic, SDG-focused perspective that addresses the question of how MNEs’ business practices need to be remodeled to become more resilient. We view business sustainability in terms of environmental, social, and economic systems and consequently apply the UN Sustainable Development Goals “wedding cake” framework (Stockholm Resilience Centre , 2018) . This model implies that the environmental, social, and economic layers are interdependent, as well as their respective sublevel SDGs, as indicated in Figure 2 .

Source: Own illustration based on Stockholm Resilience Centre , 2018

Based on Figure 2 , the biosphere/environment represents the foundation of economies and societies and, therefore, the general context in which all other SDGs must be placed. Society cannot survive without the environment, which is why society must pay attention to resources and the preservation of habitats. Such a conceptualization adopts an integrated and interconnected view of social, economic, and ecological development to ensure the future viability of the planet and its living species.

Three Layers of Sustainability in Expatriate Management: Identifying Blind Spots

Based on a systematic literature review of 238 articles clustered according to the 17 Sustainable Development Goals and their respective layers, environment/biosphere, society, and economy, it is evident that research in this field has been increasing in recent years. Furthermore, it shows that the expatriate management literature is dominated by social issues (80%), followed by economic literature (19%), and work that focuses on the environment/biosphere (1%) (Ommen , Schmitz , & Karlshaus , 2022) . Considering that expatriate management is a part of international HRM literature, it is unsurprising that the social category dominates; however given the growing importance of the climate crisis discourse, it is surprising that this has not yet been addressed in research and practice.

This social literature is dominated by articles addressing SDG 5 “Gender Equality” and SDG 3 “Good Health and Well-being” as well as limited literature focused on SDG 16 “Peace, Justice, Strong Institutions”. In the economic category, the literature most often addresses SDG 10 “Reduced Inequalities” and SDG 8 “Decent Work and Economic Growth”, followed by SDG 17 “Partnership for the Goals” as an overarching category. Finally, the ecological category is only represented in one article addressing SDG 13 “Climate Action”, which has only recently been published (Ommen et al. , 2022) (see Table 1 for an overview).

Source: Own illustration; for a full list of references, see Ommen et al. , 2022 , and the Appendix to the article. *“–” indicates SDG cases for which blind spots were not identified in this study

What Is Material for Sustainability in Expatriate Management?

In the sustainability reporting discourse, understanding materiality (i.e., identifying elements of utmost importance to a company’s sustainability challenges) has become increasingly important as part of the international ESG factors: environment, society, and governance. Furthermore, organizations attribute different levels of importance to specific environmental or social factors based on the sectors they operate in.

Considering the essential or material topics, MNEs need to first reduce or avoid their negative impacts (e.g., CO 2 emissions etc.) and also increase their positive impacts (e.g., fostering intercultural ties). By doing so, MNEs can significantly reduce the respective risks to which they are exposed.

The emission of greenhouse gases (GHG) is among expatriate management’s negative material environmental impacts, due to flights, shipments, hotel stays, and local transportation (SDG 13). These also include water and land use due to construction activities (SDG 6, 15), and waste management that should be reconsidered from an environmental perspective.

From a social perspective, negative impacts on equal opportunities can be caused by disparities in pay and promotion opportunities (SDG 5), working conditions, and health issues related to increasing travel activities and continuous readjustment (SDG 3). Furthermore, expatriates working in hostile environments or dangerous locations need adequate protection mechanisms and respective codes of conduct (SDG 16). Finally, integration into local communities during long-term stays might become relevant for some expatriates and their families (SDG 11).

From an economic perspective, a positive impact could be generated by supporting the local economy (SDG 8). However, negative impacts can arise through unequal opportunities because of the different treatment of expatriates and locals (SDG 10). To reduce this, companies should ensure responsible local consumption and circular use of respective household appliances or furniture in apartments (SDG 12).

In sum, MNEs should consider the following Sustainable Development Goals to reduce their negative impact and increase their positive impact:

Environmental : SDG 13 Climate Action

Social : SDG 3 Good Health and Well-being, SDG 5 Gender Equality, SDG 16 Peace, Justice and Strong Institutions, SDG 11 Sustainable Cities and Communities

Economic : SDG 8 Decent Work and Economic Growth, SDG 10 Reduced Inequalities, SDG 12 Responsible Consumption and Production

Sustainable Expatriate Management: Actionable Recommendations

The above discussion suggests that companies can derive a specific prioritized agenda. Inspired by the SDG Compass (Global Reporting Initiative , United Nations Global Compact , & WBCSD , 2015) , we advance these considerations by sharing how MNEs can best address the SDGs in sustainable expatriate management. For an overview of selected ideas for each of the SDGs, please also see Table 2 .

Source: Own illustration; based on selected measures of the SDG Compass Business Indicators; Note: Not all themes will apply to all types of MNEs or all sectors equally. As expatriates are usually relatively privileged, we suggest that they should use their privileged status to support disadvantaged groups and individuals to meet SDGs.

Defining Priorities

First, each of the material topics needs to be evaluated for each company. Certain topics may be more or less relevant in a corporate context, depending on the respective sector. Taking the example of GHG emissions (SDG 13), most emissions come from consultants on regular short-term assignments or business commuting trips if the company is in the service delivery sector. Therefore, these emissions play a more significant role for the company.

In terms of gender equality (SDG 5), a company should first investigate the share of women in their overall assignee population, including management positions. Based on a materiality matrix approach, respective stakeholders should evaluate their priorities alongside considering the judgment of material topics to attain a holistic perspective. By taking this approach for all topics associated with each SDG, MNEs can prioritize different materiality topics.

Setting Strategic Goals

To transform international assignments at the company level, MNEs need strategic concepts, including tools, to impact the defined materiality topics discussed above. There are different levers available to create change, including international assignment policy, processes, and culture. A policy can be designed so that assignees are nudged to not take air shipments, which cause significant GHG emissions (SDG 13). Further, by working with stakeholders across the supply chain, MNEs should implement key performance indicators (KPIs) to reduce negative impacts. To be effective, these should align with scientific facts and goals, such as the Paris Agreement’s target of limiting warming to 1.5°C.

Integrating the Goals

After defining their strategy and goals, MNEs should next address their implementation needs. This should particularly consider the sustainable consumption of mobility-related benefits (SDG 12), where there may need to be a mindset shift. Therefore, in the preparation phase, assignees need to be made aware of their choices. To do this effectively, departments taking care of international assignments may need to be trained on related topics while they consult assignees. Besides policy changes, MNEs should also implement profound changes, for example in terms of gender equality (SDG 5). Managers should be aware of equal selection principles and provide women with support mechanisms to ensure equity if they become the main caregiver for their children.

Measuring and Evaluating

Finally, MNEs need to track whether the implemented measures have been effective. This means measuring an international assignment program’s GHG emissions (SDG 13), environmental impact, gender share (SDG 5), and other measures. If the result does not meet the initial targets, the previous phases (strategy development, implementation) should be analyzed to see if adjustments are necessary. To better integrate the respective measurement indicators with those already existing in the corporate context, the SDG Compass website provides respective input categorized by SDG: https://sdgcompass.org/business-indicators/ .

Although there is awareness of pressing contemporary challenges in the field of expatriate management, action is still needed to decrease the negative impact on society, the economy, and the environment. Many concepts aim to address sustainability across borders. However, research has not yet produced a hands-on and integrated SDG framework for expatriate management. In this work, we aim to inspire and motivate practitioners to take action and further their sustainability ambitions. Although our paper is labeled rethinking expatriate management, the challenges outlined equally apply to inpatriates, repatriates, and other forms of cross-border assignments.

Companies need to be more aware of the environmental and social impacts of their programs and need to monitor processes to increase transparency across their vast service portfolios and associated supply chains. This is not only necessary because of sustainability but also to comply with legislative requirements (e.g., EU Taxonomy). However, corporate departments dealing with international assignments are not facing these challenges alone. They need to form partnerships (SDG 17) and collaborate with their vendors and internal stakeholders (enabling functions, corporate sustainability, procurements, etc.) to drive the much-needed change toward sustainable development.

About the Authors

Marina A. Schmitz serves as a Researcher and Lecturer at the Coca-Cola Chair of Sustainable Development at IEDC-Bled School of Management in Bled, Slovenia as well as CSR Expert/Senior Consultant at Polymundo AG in Heilbronn, Germany. She has worked as a Lecturer, Research Associate, and Project Manager at the Center for Advanced Sustainable Management (CASM) at the CBS International Business School in Cologne and the Chair of HRM and Asian Business at University of Goettingen. Enno Ommen is working in Bayer AG’s Sustainability Excellence Office at CropScience Division. He had previously worked in the area of Global Mobility for about 10 years, which equipped him with profound knowledge in the field of expatriate management. He studied International Business (BA) at CBS International Business School and International Human Resource Management (MSc) at Manchester Business School. Further, as one of Bayer AG’s Sustainability Champions, Enno is supporting the sustainable transformation of the company. Anja Karlshaus studied at the University of Cologne, Santa Clara University (USA), and the European Business School. In 2009, she took over the HRM professorship at CBS International Business School, later assumed the role of dean of the Business Administration faculty, before being appointed president. Moreover, she was previously employed at Dresdner Bank, Allianz and Commerzbank – being now member of various committees (Chamber of Industry and Commerce, City of Cologne, State of NRW). She researches sustainability, diversity, and agile HR.

Submitted : September 30, 2022 EDT

Accepted : April 06, 2023 EDT

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Looking for global talent in all the right places: a critical literature review of non-traditional expatriates. The International Journal of Human Resource Management , 27(7): 699–728. McPhail, R., & McNulty, Y. 2015. 'Oh, the places you won’t go as an LGBT expat!'A study of HRM’s duty of care to lesbian, gay, bisexual and transgender expatriates in dangerous locations. European Journal of International Management , 9(6): 737–765. McPhail, R., McNulty, Y., & Hutchings, K. 2016. Lesbian and gay expatriation: Opportunities, barriers and challenges for global mobility. The International Journal of Human Resource Management , 27(3): 382–406. Ng, E. S., & Sears, G. J. 2017. The glass ceiling in context: the influence of CEO gender, recruitment practices and firm internationalisation on the representation of women in management. Human Resource Management Journal , 27(1): 133–151. Pinto, L. H. F., Bader, B., & Schuster, T. 2017. Dangerous settings and risky international assignments. Journal of Global Mobility , 5(4): 342–347. Posthuma, R. A., Ramsey, J. R., Flores, G. L., Maertz, C., & Ahmed, R. O. 2019. A risk management model for research on expatriates in hostile work environments. The International Journal of Human Resource Management , 30(11): 1822–1838. Stoermer, S., Davies, S. E., Bahrisch, O., & Portniagin, F. 2017. For sensation’s sake: differences in female and male expatriates’ relocation willingness to dangerous countries based on sensation seeking. Journal of Global Mobility , 5(4): 374–390. Toh, S. M., & Denisi, A. S. 2005. A local perspective to expatriate success. Academy of Management Perspectives , 19(1): 132–146. van Bakel, M. 2019. It takes two to tango: a review of the empirical research on expatriate-local interactions. The International Journal of Human Resource Management , 30(21): 2993–3025. Walsh, P. R., Dodds, R., Priskin, J., Day, J., & Belozerova, O. 2021. The Corporate Responsibility Paradox: A Multi-National Investigation of Business Traveller Attitudes and Their Sustainable Travel Behaviour. Sustainability , 13(8): 4343. Wilkinson, A., Knoll, M., Mowbray, P. K., & Dundon, T. 2021. New Trajectories in Worker Voice: Integrating and Applying Contemporary Challenges in the Organization of Work. British Journal of Management , 32(3): 693–707. Wu, T.-Y., Liu, Y.-F., Hua, C.-Y., Lo, H.-C., & Yeh, Y.-J. 2020. Too unsafe to voice? Authoritarian leadership and employee voice in Chinese organizations. Asia Pacific Journal of Human Resources , 58(4): 527–554.

How to prepare employees for international assignment success

To help boost your international assignment success rates and post-assignment staff retention, we discuss the key reasons for assignment failure, the problems with repatriation and what you as an organisation can do to prepare your employees.

Assignment failure

The number of international assignments being terminated early is on the rise. ECA’s latest Managing Mobility Survey revealed that the number of assignments cut short had increased by 50% compared to the figure seen in our 2012 survey.

What is happening here? The main issue seems to be a mismatch between expectations and reality. Nearly three in five companies report that assignments terminate early or fail to meet objectives due to assignees underperforming in their new role; the firm may initiate termination to cut their losses. On the other hand, the second most common explanation given for assignment failure, as reported by nearly 50% of employers, is dissatisfaction with the new role on the part of the assignee.

Assignee disillusionment is also common outside of work. A substantial number of employers – more than two in every five – report that when assignments break down they often or sometimes do so when an employee, or their family, finds themselves unable to adapt to their change in living circumstances. In almost half of cases when assignees fail to settle in, cultural issues play a significant role. Other common challenges that arise are feelings of isolation, difficulties with language, accommodation or children’s schooling arrangements and concerns about security and welfare.

Problems with repatriation

Post-assignment retention of employees is also a problem for many companies. One in eight repatriating assignees leave the company within two years, taking with them valuable skills and experience and other benefits gained from the costly assignment. Some regions fare worse than others in this area; European headquartered companies, for example, reported losing three employees for every 20 returning from assignment within two years and Australian and American companies reported higher attrition rates still. These sobering figures may even be underestimates, given that only three companies in five track post-assignment retention and career outcomes.

While relocating for an assignment is recognised to be substantially disruptive for assignees and their families, it is common for both employers and assignees to underestimate the upheaval of repatriating. Assignees and their families are not unaltered by their experiences living abroad, and neither does time stand still in the country left behind; hence the relocating assignee might find that their former workplace and colleagues, their social circles, and even the cultural and societal norms all feel unfamiliar.

Difficulties with settling into a new role or career upon return to the home location is certainly a commonly reported problem; 70% of companies find this is either sometimes or often behind an employee’s decision to leave. If assignees are ill-prepared for the potential hitches that can occur when returning to the home entity, they may be susceptible to overly high expectations.

The impact of repatriation on a returning assignee’s home life is also not to be underestimated. According to one in three companies, it is sometimes or often the case that family concerns – i.e. with regard to a partner’s career, children’s education or relocation issues – are the reason for post-assignment staff turnover.

What can be done to address these challenges?

The key to improving an employee’s ability to adapt to assignment and, later, post-assignment life is making sure they are well prepared for what is to come. 

In the 21st century, anyone can of course undertake a little online research at the click of a button. But the sheer number of search results returned, unreliable sources and a lack of resources geared towards the unique experience of being an assignee can result in confusion and misinformation, rather than genuinely useful knowledge and awareness.

Self-preparation tools that are tailor-made for the assignee experience are a more effective way to inform and guide employees about the realities of a potential move abroad and help to make the process less overwhelming. ECA’s three International Assignment Guides cover the main scenarios expatriating families face:

Planning to Work Abroad? is full of relevant and useful guidance about what to expect when going to live and work in another country and ensures that families really do consider all the pros and cons of such a move. This puts candidates in a better position to assess whether or not an assignment abroad is for them – rather than finding out the hard way during the assignment.

Together on Assignment enables assignees’ partners to weigh up the implications of accompanying them on assignment against those of remaining behind; it also sends a reassuring signal that the company is sensitive to the welfare of the family as a whole, not just the assignee.

Returning Home prepares returning families for the potential challenges they may encounter when trying to slot back into home country life. It also ensures assignees have realistic expectations for their post-assignment career. Greater pragmatism about this process can help reduce the number of returned assignees exiting the company, taking their valuable international experience and skills with them.

Each of the International Assignment Guides combines anecdotal advice and worksheets with real-life case studies to raise awareness of issues that should be considered, discussed and resolved before committing to an assignment. Quotes from former assignees provide practical tips that can only come from first-hand experience, while comprehensive checklists and questionnaires lay out all the decisions that an expatriating family face, and outline the potential pros and cons to be considered.

The International Assignment Guides can be provided directly to your mobile population through your company intranet for ease of access. ECA also provides location-specific Country Profiles to brief assignees with essential information about the location where they are preparing to live and work. For more information about how ECA can assist you with assignee preparation, please contact us .

How to prepare expats for foreign assignment

Return on investment (roi) is key  for a global hr team managing expat employees on international assignment. rates of expat failure can be as high as 40% , depending on the industry. as investment in an assignment can be more than $300,000, failure is expensive in both financially and timewise. , choose the right person.

Preparing expatriates for foreign assignment begins as early as the selection process. Research by Cut-e shows the ability to excel at a role may not be enough for expat success . The most accomplished new expats have a range of soft skills including:

• Emotional stability
• Sensitivity to other cultures
• Better than average interpersonal skills
• Demonstrated flexibility

Ensure candidates demonstrate these and similar traits with practical examples at interview stage.  

Pre-assignment training

Preparation is key when any employee is moving abroad to work. Global HR can support the employee by developing thorough pre-assignment training . This should help:

• Anticipate potential challenges
• Develop strategies to overcome them
• Better understand societal and business norms
• Understand the overarching goal of their overseas assignment

This is particularly useful for those working abroad for the first time. Ideally pre-departure training covers topics like:

• Cultural training
• Local language skills
• Information on the host country  

Home and host mentors

Support on the ground.

One of the leading causes of expat failure is the unhappiness of an expat’s spouse or family. Ensure the expat and their family has practical support from HR in the destination country. This should cover elements like:

• Finding a place to live
• Setting up a bank account
• International Health Insurance
• Enrolling children in school
• How the tax system works  

Interviews with expats in Personnel Today highlighted the importance of information, contacts, and processes fitting together, so settling in is easy.  

Stay in contact

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Developing Cultural Competency for International Assignments: What We Can Learn from Expatriate Challenges

We are in a time that is considered an era of rapid change as multinationals pave a new path to growth in a global marketplace.  What has emerged is a new workforce with varying demographics, needs and expectations.

Talent management has become a growing imperative and expatriate assignments play an increasingly critical role in executing international business strategies and developing global leaders.

Importance of International Assignments

The number of international assignments among multinationals grew by 25% since 2000 due to the strategic role they play. [1]  Price Waterhouse Coopers (PwC) predicts there will be further 50% growth through 2020. In the talent market, skilled employees with experience in more than one country are increasingly viewed as valuable.

According to a recent survey by KPMG (2015), 86 percent of survey participants say their international assignments will stay the same or increase over the next five years. [2] A report by Brookfield (2015) yielded similar results where 88 percent of survey participants say their international assignments will stay the same or increase. [3]

The assignment types, however, have evolved over the years. In previous years, sending seasoned technical experts made up 70 percent of assignment types. Now, the number has decreased to under 40 percent to make room for additional new types of talent companies are sending, for example, Strategic leaders for mission critical roles; Emerging high potentials; Career-building volunteers. [4] Consider these points:

• 57 percent of companies expect the number of key or strategic assignments to increase, 51% expect to deploy a higher number of younger assignees [5]
• A report by Brookfield found that 43 percent of employees who have international experience are promoted faster when compared to employees without international experience.
• In the Deloitte Human Capital Trends report, the most urgent global talent issues cited were: Leadership development and Retention / Engagement [6]
• In one of PwC’s annual CEO survey, over 50% of those surveyed said that international assignments are an effective means to build the leadership pipeline [7]

Challenges & Risks

While international assignments are becoming more strategic, there are challenges and risks for organizations. For example, recruiting challenges due to employee concerns about the impact an international move can have on families and careers. About  32 percent of workers polled have said they have turned down overseas assignments  because they were concerned how it might affect their families, due to the significance of uprooting a family or spouses who must interrupt their career path. Regarding the growing issue of dual-career couples, a study by KMPG showed that 58 percent of employees are less likely to put themselves forward for an assignment and 34 percent feel it will increase chances of assignment failure. [2] 

Other challenges include the increased pressure to reduce costs of international assignments while at the same time focus on developing talent. This has forced companies to perform a balancing act between operations and strategy. It’s a constant tension for Mobility and Talent Strategy functions:   How do I develop talent, while cutting costs?  First, let’s understand the costs. A familiar statistic is a typical assignment costs at least two to three times an employee’s annual salary or $1million (US) per assignee. [9] 

As you validate the cost of sending someone, HR has historically managed the operations or tactical role of international assignments, for example developing policy, spouse and family support and managing risk. The HR function knows how to do that. However, another set of complexities and costs arise when adding strategic talent development, for example, leadership development, diversity and inclusion (think about that question for companies trying to leverage females in the workforce), engagement on assignment and retention (which factors in repatriation issues).

In the past, companies tried to measure ROI of international assignments by looking at assignment failure, defined by expats that return home early. Over time, that became challenging as the complexities of assignments emerged. For example, how do you measure the failure of someone still on assignment but is not doing well? These are commonly referred to as “brown outs” and present another layer of challenges. How do you measure the impact of project delays, damaged client relationships and underperforming teams?

There has been a shift in the recent years in how ROI is measured. In reports published from industry leaders such as E&Y and Brookfield, the common findings are: measuring ROI is not a priority.  Alternately, there is more focus on the front end.  Instead of spending energy in developing new ROI methods, more focus is on choosing the right people using a formalized assessment process and providing development such as cultural competency training for expatriates and receiving managers, mentoring the expatriate on assignment and establishing a repatriation strategy prior to the assignment start.

The Importance of Cultural Competency Training for International Assignments

A simple way to support success of an international assignment is to provide cultural competency training.  Historically, training has been highly valued by companies, especially cultural integration programs to support the expatriate and their families.  A Brookfield report found that 83 percent of companies surveyed felt cultural competency training for expatriates was good or great. [3]

The learning programs that are most effective go beyond the basic do’s and don’ts of host country culture and is personalized for the expatriate. During a pre-departure or post-arrival program, such as Aperian’s Thriving in a New Culture, the focus is to equip the assignee with tools and strategies intended to increase their effectiveness on the job. This builds a foundation for success by preparing the assignee specifically for the demands of their job in a new host country, as well as supports them upon repatriation. Essential country knowledge and practical strategies are outlined to ease the settling-in process for the expatriate as well as the spouse and children. The learning is then mapped to tactical plans that the expatriate and family can apply as they go throughout the international assignment life cycle.

To enhance the effectiveness and personalization of the expatriate’s cultural competency training, the focus can include the results of an assessment report used during the candidate selection process. For example, Aperian’s Global Readiness Development Assessment SM  helps evaluate an assignee’s readiness for a global assignment and provides comprehensive insight into the areas of preparation that need to be addressed. Linking those development areas to the pre-departure or post-arrival learning positions the expatriate on a track for success.

While on assignment, learning can continue with access to cultural intelligence resources such as  Aperian ® , a learning platform with information that provides reliable guidance on how to interact effectively with individuals in other countries. Then after the assignment, Aperian’s clients often request a Repatriation Workshop, Leveraging Your International Assignment which focuses on strategies to effectively transition back life in their home country, both at work and personally.

Comprehensive cross-cultural training is important for many reasons:

• Improves productivity during an assignment by developing strategies to establish relationships, develop trust with locals, hone leadership skills
• Provides assignees and their families with specific strategies to read cultural behavior and learn protocol
• Supports the family adjustment process by focusing on specific needs for moving to a new country, meeting people, transitioning to a new school
• Mitigates the risks of international assignments
• Offers receiving managers of expatriates and repatriates with practical skills to leverage their new employee
• Provides team members with global mindset skills to develop strategies that bridge cultural gaps

Quite simply, comprehensive cross-cultural training is not only about learning cultural etiquette. It is about providing your assignees, their families and their manager and co-workers with the practical knowledge and actionable strategies to support a successful assignment. It also addresses some of the most common problems leading to failed assignments and works to mitigate them.

Common Challenges Faced by Expatriates

While companies may face a number of challenges when it comes managing international assignments, it is important to consider the challenges for expatriates, especially those that arise once they are well into the assignment and start the settling in process at work and in daily life.

These are some key challenges that assignees may face.

1. Inadequate Preparation for Adjusting to a New Culture

An employee is usually excited about the idea of a new work opportunity in another country. The potential to develop professionally and experience living in a new country are few of the reasons employees choose to go. However, those who are transferred to another country involuntarily may have mixed emotions about the transition. Regardless of the reason for going on an assignment, all expatriates have to face the cultural adjustment process at the workplace and in daily life.

Getting settled into a new city even in one’s home country can be challenging. Add the layer of moving internationally and a new set of unknowns arise. The expatriate is required to perform effectively in a new job while navigating through a new landscape filled with new rules – some visible and many not so visible – that influences people’s actions and thinking. Simply setting up an Internet connection, purchasing groceries or finding a good location to live can seem daunting when there are new rules that guide the way to communicate and accomplish tasks. Many assignees are shocked by the transition to get settled, even when a company handles most of the steps.  Inadequate preparation for the personal adjustments are not covered in a relocation checklist but are covered in a cultural training session.

2. Transitioning to a New Workplace Environment

The process of working effectively in the new role is an essential component of the international assignment as it is the reason they are there. Adjusting to the workplace can be just as challenging as getting settled at home. Many expatriates report workplace challenges such as:  not having clear job roles, minimal support from the receiving manager or difficulties navigating the language and cultural barriers in the office. For example, an expatriate may have to learn how to make decisions, meet deadlines and communicate with others in a more hierarchical structure instead of the flatter, more independent structure she or he worked in previously. Or a junior employee who is more indirect out of respect for senior leaders may struggle to open up in a more direct, egalitarian framework where speaking up is valued.

3. Family Adaptation Challenges

Nearly 75 percent of the international assignee population surveyed in a recent Brookfield study are married / have partners. [3]  Of the assignees that have children, the same study found that over 50 percent of children go on assignment.  Families on global assignments sometimes encounter problems assignees they were not prepared for and the impact to the assignment success cannot be overstated.  Countless studies over the years have identified the number one reason for expatriate failure was the spouse or partner’s inability to adjust.

A Brookfield study found that 75% of international assignees are married, and 50% of children of those couples go on assignment.

If an employee is an unaccompanied assignment, they have to factor in the loss of the support structure of the family and how to manage life back home. If expatriates have an accompanying family, they have to factor in the adjustment process for more than themselves.

Some of the family challenges include:

• Finding work for the spouse; in many cases spouses are not allowed to work in the host country due to visa restrictions
• Finding adequate housing in neighborhoods that meet needs of the family
• Selecting appropriate schools that allows for easy transfer of grade and curriculum requirements from home country school or finding schools to support special needs
• Navigating language and cultural barriers that impact developing relationships and building relationships
• Managing the feeling of culture shock, homesickness, and in some cases, depression

Offering assignees resources and training to address family issues and concerns is a positive step in mitigating these risks.

4. Going off of the Radar OR Out-of-Sight, Out-of-Mind Syndrome

Many expatriates report the feeling of being forgotten while on assignment. This is due to the lack of support from the home office, unclear job guidelines or unexpected changes in the assignment. Many expatriates wished they had access to a mentor, cultural liaison or cultural bridge.  Others wanted more frequent check-ins from HR or the home office to ensure they are getting the support they need. At the beginning of an assignment, especially, assignees may not yet have a professional network of support or may still be adjusting to a new culture. Added support can be helpful.

5. Repatriation Concerns

Returning home or repatriation still represents a significant challenge that often fall on the employee to manage.

About 64 percent of companies do not have a formal repatriation strategy, according to one poll. [3]  Many organizations do not have a plan in place to help retain assignees or assist them with career management upon return.

This lack of strategy can be a problem. Repatriates often report “reverse culture shock” when they returning home. Common challenges in the workplace can be:

• Lack of job clarity in the home office
• Unsatisfactory handling of the repatriation process
• International experience not valued or utilized
• Less authority / Loss of prestige
• Adjusting to decreased autonomy
• Readjustment to a changed corporate environment
• Feeling isolated and out of the loop
• Lack of understanding by peers or manager; cultural barrier put up by the workforce at the home office that did not have global mindset training

Common challenges in transitioning back to life outside of work include:

• Unexpected culture shock
• Reverse homesickness
• Loss of social status as an expatriate
• Spouse re-starting a career
• Children re-entering school
• Uncertainty about housing or re-establishing a household
• Lack of understanding, interest and support from friends
• People seeing the “wrong” changes in you
• Seeing things with a new perspective or “critical eyes” and not being understood

If the re-adjustment challenges are not addressed, it increases the chance of the employee to seek opportunities elsewhere, many times to a competitor. Nearly 25 percent of repatriates leave their company within one year of returning if they are not leveraged.[3] For the assignment to be a success, companies need to enable the assignee to  integrate effectively back home and share knowledge gained while on assignment.

Setting the International Assignment Up for Success

Mitigating risk in international assignments is crucial for organizations. Failure can hurt a company’s future and can in some cases harm goodwill with international clients and markets. When considering the costs of sending an employee on an international assignment, typically two to three times the professional’s normal salary or $1 million (USD) as cited at the beginning of this article, failure comes at a high price.

There are several ways to set the assignment up for success and reduce the risks:

1. Take a Talent Development Approach to Selection

Carefully consider your team and consider employees who are ambitious and have the global readiness skills needed for the work. Look beyond just the technical skills needed for the assignment and the adaptability to adjust to cross-cultural environments. Ideally, implement a candidate assessment process that uses validated instruments and a behavioral interview to make informed choices about confirming and prepare employees for assignments.

2. Provide Cultural Competency Training

It’s important to provide global mindset training that allows the expatriate to work effectively in the new workplace such as: team integration, establish credibility, communicate effectively, manage people, become a global leader. Additionally, the training can help prepare the employee and their family to adjust to the day-to-day living aspect of moving to a new country. Providing global mindset training for the manager and team members are equally important.  By understanding the influence of cultural values and beliefs on performance, the expatriate is more prepared to work effectively with the receiving manager as well as integrate smoothly into the team and contribute positively to the organization.

3. Invest in Growth and Developing Future Leaders

Successful assignments help a business grow by expanding services or products into growth markets and by creating new work opportunities for workers interested in living and working internationally.

A good international assignment exposes and enhances assignees cross-cultural skills and knowledge, lets them develop new leadership potential, and exposes them to new ideas, making them stronger employees in the future.

4. Create a New Exchange of Knowledge and Skills

Well-planned international assignments allow for the free flow of information, enriching all parties and ultimately the organization. International assignees can forge new allies in different regions of the world, including new mentors, networks, clients and potential leads.

Learn More from Aperian

If your organization is looking to reduce the risks of overseas assignments while improving your return on investment, Aperian offers a variety of face-to-face and virtual learning programs designed specifically with international assignees in mind. Whether you are sending a team or just one professional to another country or around the world, Aperian offers consistent programs for any location around the world.

We’ve already helped more than 16,000 workers and their families through our  Global Mobility  program. We offer support pre-assignment, on assignment, and during repatriation to fully support your team to peak performance at every stage. We can help your assignees gain confidence and improve productivity.

Aperian works with more than 170 consultants and 4,000 cultural specialists to deliver programs offering the best cross-cultural knowledge and understanding to you.

[1]  Talent Mobility 2020: The next generation of international assignments, PwC, 2010

[2]  KPMG Global Assignment Policies and Practices, 2015

[3]  Brookfield Global Mobility Trends Survey, 2015

[4]  Mercer Worldwide Survey of International Assignment Policies & Practices, 2012

[5]  Mercer Worldwide Survey of International Assignment Policies and Practices report, 2015

[6]  Deloitte Global Human Capital Trends, 2014

[7]  PwC 16th Annual Global CEO Survey 2013

[8]  https://hbr.org/2014/02/a-successful-international-assignment-depends-on-these-factors

[9]  Worldwide ERC & Towers Watson, Global Talent Mobility Report: Regional Differences in Policies and Practices, 2012

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International Citizens Group

Resources for International Citizens and Expatriates

• Pre-Departure Preparation and Training: The Role of HR

This is the crucial pre-departure period, falling between expat selection and landing in the host country.  Managed effectively, expats’ risk of culture shock on arrival is much reduced.  They are also less likely to underperform, end their assignment early, or leave for a job elsewhere.

As one foreign worker on assignment explained to researchers, “Moving is an experience that forces the individual to place complete trust in the company.” In this article, we see the personal and business concerns that can be addressed before departure. We also address best practices for pre-departure training.

Personal Concerns

Firstly, you say to Tiffany, let’s discuss the relevant policies and procedures for your relocation.  Following best practices, over the course of the next hour, you discuss her salary as well as her relocation package. You discuss any cost-of-living adjustments to ensure that her quality of living does not decline even for assignments to the world’s more expensive destinations.

You also discuss accommodations with Tiffany.  This is one of the most important areas for organizations to address. Without a basic understanding of what “home” looks like, expats may imagine the worst and stress over the details. Among other issues to consider are where will she be housed on arrival and for how long?  Also, be ready to discuss what assistance is provided in finding permanent accommodations.

When I arrived in Rwanda, for instance, I received one month of free, high-end accommodations from my employer.  This included a voluntary two weeks residing with a local co-worker, who offered inside knowledge about my host country and its culture.  For permanent housing, I was mostly on my own, though HR did connect me with a real estate manager.

By contrast, the process when I arrived in Kyrgyzstan years earlier to work at a small university was less formal but no less effective.  There, I initially stayed in the home of my supervisor. Meanwhile, the head of HR helpfully accompanied me as I toured apartment rentals.

Support can therefore come under various guises.  Every organization is different, and so are the needs of your staff. What is most important is transparency. The international employee needs to know where the company will assist them and in what areas they will need to take their own initiative.

A Checklist for a Host Country Life Briefing

Secondly, either with Tiffany alone or with any peers assigned along with her, you discuss the details of host country life. This is a simple checklist that can be fulfilled for all expats.

This includes :

• Immigration procedures when arriving in country
• Work visa and other bureaucratic issues
• Hygiene concerns, if any, such as drinking water, food-borne illnesses, and so forth.
• Personal finance and local banking, including how to open a new bank account.
• Medical risks
• Medical facilities and international medical insurance
• Transport – How will the employee get to work? Is a car necessary, or is public transportation extensive?
• What to take with you – from clothing to furniture to pets
• Host country safety risks, ranging from the risks of natural disasters to violent crime, to gender or issues of diversity.
• Children’s education and options for spousal employment

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Preparing for the New Role

With personal concerns addressed, you and Tiffany discuss her new job responsibilities. This is not an idle concern; lack of clarity about new job responsibilities is one of the biggest causes for expat failure . The stress resulting from unclear responsibilities also reduces job satisfaction and increases the risk that the international employee will pack up and leave.

Consequently, you discuss how her performance assessment will work, being sure to coordinate with host country supervisors to contextualize this to her new home, culture, and environment. At a broader level, she receives a primer in local business laws as well as advice for dealing with local partners.

For a deeper orientation, you may offer Tiffany the chance to visit her future home on a “look-see” visit.  It is often an emotional leap to move to a new country sight unseen. This first-hand knowledge before the big move can go far in reducing anxiety.

The early visit allows Tiffany and accompanying family members to ease into the process, begin their housing search, visit schools for their children, and get to know locals and co-workers.  Tiffany can also meet her future co-workers and supervisors, gaining a better understanding of her responsibilities.

If a physical visit is not possible, “virtual visits” may substitute.  For instance, before accepting an offer to relocate to the University of Florida’s graduate school, I spoke with a dozen or so future co-workers and supervisors on video from my residence in Budapest, Hungary. One gracious coworker even gave me a tour of the campus via video call on his phone.

Hands-on Experience

Whether in person, during virtual visits, or with recently returned staff from the host country, Tiffany may also participate in informal briefings.  As scholar Hilary Harris writes, “Arguably, the chance to meet and discuss the host country with people who know it well, perhaps other employees of the company from there or who have just returned, is among the cheapest and best forms of preparation.”

Shadowing is yet another method to prepare Tiffany for her pending assignment.  This involves assigning Tiffany –prior to her departure – to begin interacting with people and ideas relevant to her future role.  Reviewing reports, communicating with the host country staff, and engaging with its results all help Tiffany to adjust well before arrival.

And on arrival, firms may arrange for Tiffany’s assignment to overlap partially with another expat still on assignment.  As Harris writes, “This has the significant advantages of allowing one to brief the other, to introduce them to key clients, government officers and so on and to ‘show them the ropes’ in the working environment.”  However, these overlaps can be difficult to organize, costly, and lead to confusion about who is in charge – so careful planning is advised.

Cross-Cultural Training: An Overview

Finally, you turn your attention to pre-departure training. In our article on culture shock , we discussed several major cultural dimensions.  Together, these dimensions reveal the ways in which country cultures differ – this one more individualistic, that one more hierarchical, and so forth.

Larger cultural differences on these measures predict more extreme culture shocks for the newly arrived expat. HR, however, can make international staff more familiar with cultural differences by providing cross-cultural training.

Consequently, cross-cultural training may begin by providing trainees with an overview of the most important cultural dimensions.  In addition, quality cross-cultural trainers provide participants with an understanding of how these cultural dimensions predictably impact business practices.

While there are many ways to do this, one effective approach is to discuss the broad business implications that are relevant around the world – for instance, for collectivists in general – but also to include a fine-grained analysis of how the cultural practices play out in the host country to which the international staffer is soon relocating. Not only is the well-trained global citizen able to recognize and label differences, therefore, he or she is also able to proactively respond in culturally appropriate ways.

This three-step process to cross-cultural training can be summarized as follows:

• Step One: A conceptual overview of each of the major cultural dimensions.
• Step Two: A discussion of the general business practices associated with each cultural dimension.
• Step Three: A discussion of the specific cultural and business practices of the host country.  

Unpacking the Three Steps to Cross-Cultural Training

Using the dimension of individualism and collectivism as an example, we can see how this three-step process unfolds. In Step One, trainees gain a conceptual understanding of individualism and collectivism – for instance, learning basic definitions and social implications for individualists and for collectivists.  As one example, trainees may learn that collectivists tend to have strong social networks and close connections with extended family. By contrast, individualists’ immediate concerns tend to center on the self and the nuclear family.

In Step Two, business implications, trainees may learn how individualists and collectivists are motivated in the workplace differently. For instance, collectivists tend to respond better to group incentives while individualists prefer rewards for standalone achievements.

Furthermore, studies show that individualists are more likely to free ride on group projects, putting in less effort than they would if working individually. By contrast, collectivists tend to cooperate well when working with members of their own in-group. However, they free-ride at levels comparable to individualists when assigned to work with outsiders.

In Step Three, trainees discuss the implications in the expats’ host country. For instance, they may discuss how in homogeneous and collectivistic Japan, group members tend to productively work together.  Or that in more diverse countries, say Colombia, collectivists are more susceptible to the free rider effect.

Cross-cultural researchers have evaluated most every country on each of these cultural dimensions, and tools such as Hofstede Insights allow anyone to look up country results.  This is particularly important for employees that interact across a wide variety of cultures or that work in a diverse society.

Imagine an international employee working in Australia learns that tomorrow she will be traveling to Ghana, for instance. Even without specific training, she can use her knowledge of the cultural dimensions to quickly – if broadly – understand the most important cultural indicators for that West African society.

Too Little, Too Late

It’s worth noting that there are other relevant cultural dimensions not discussed here, including cultural dimensions relating to communication styles.  Similarly, staff preparing for assignment may require foreign language training.  Sensitivity training for both host country and foreign nationals can minimize the risks of diverse workplaces – and leverage the benefits, such as increased creativity and improved group decision-making.

As many options as there are for training, however, research suggests that many expatriates – including over 70% of North American expatriates – receive little or no training prior to their departure.  Furthermore, a mere 10% of experienced managerial-level international employees receive cross-cultural training. Despite their technical experience, a majority report being ill-prepared for interactions with host country nationals.

There may be an even greater temptation to skimp on training when cultural differences as seen as minimal or languages the same.  Yet even small differences between cultures can be consequential – and even more so when foreign staff have an unrealistic expectation that their lives will change little on arrival.  For instance, host workers in one L.A. office reported experiences with “uniformly shell-shocked” Australian employees within just a week of their arrival – and this among workers in the tourism industry, no less.

The Cost of Skimping

These are dismal figures, considering the high favorability rates among international staff that do receive training.  Indeed, researchers are virtually unanimous in suggesting that well-designed pre-departure trainings are well worth the costs. One consequence of receiving little or no training, as we’ll see below, are higher rates of expatriate failure.

In addition, even those receiving training often report that their training lacked rigor. As a British investment banker assigned to Japan told researchers, “I don’t think two or three days at [the training center] helped enough – to understand what I now think is the most subtle culture in the world . . . maybe four or five weeks might have.”

An IT manager assigned to Vietnam explained, “The biggest criticism I would level at the pre-move briefings is that they were out of date almost as soon as I arrived here … I think the people doing the briefings were not really up to date with what is going on here.”

Finally, a female marketing executive told researchers, “My sex was never an issue until I came out here. And, I’ve got to say that the training center really did not prepare me for the problems I have had since coming here.”

Spending on Training Saves Money

Yet, one study showed that expats subjected to rigorous training programs are 70% more likely to remain with their organizations than those receiving less rigorous training. This means that by spending on training, organizations are saving on turnover costs.

How rigorous does the program need to be? This depends on the cultural distance between the host and the home country, the extent of communication challenges, and the complexity of the role.

For HR, much of this is no surprise. The challenge, rather, may be gaining the support of management to produce the comprehensive programs needed to support employees departing on international assignments.  But let us not allow perfect to be the enemy of the good.  Do what you can with what you have, remembering that Tiffany’s knock on the door is coming soon.

Related Articles

• Expatriate Selection: Lessons From the U.S. Peace Corps
• Understanding and Preventing Expat Failure
• The 5 Best Countries to Work in for Expats

About the Author

Dr. Thomas J. Bussen, with a Doctorate of Business Administration, JD, and MBA, is an Assistant Teaching Professor at Miami University’s Farmer School of Business, and a former professor at the African Leadership University and the American University of Central Asia.  He is the author of several books, including  Shaping the Global Leader  and  Compliance Management: A How-to Guide . His latest book,  Enlightened Self-Interest: Individualism, Community and the Common Good , makes the case for a more inclusive and equitable professional mindset and is expected for release in 2023 with Georgetown University Press.

Sources and Further Reading

Earley, P. C. (1993). East meets West meets Mideast: Further explorations of collectivistic and individualistic work groups.  Academy of management journal ,  36 (2), 319-348.

Forster, N. (1997). ‘The persistent myth of high expatriate failure rates’: a reappraisal.  International Journal of Human Resource Management ,  8 (4), 414-433.

Guzzo, R. A., Noonan, K. A., & Elron, E. (1994). Expatriate managers and the psychological contract.  Journal of Applied psychology ,  79 (4), 617.

Harris, H., & Brewster, C. (2002). An integrative framework for pre-departure preparation.  International Human Resource Management: A European Perspective ,  224 .

Lin, C. Y. Y., Lu, T. C., & Lin, H. W. (2012). A different perspective of expatriate management.  Human Resource Management Review ,  22 (3), 189-207.

Mercer’s Cost of Living (2021), https://www.mercer.com/our-thinking/career/cost-of-living.html

Mesmer-Magnus, J. R., & Viswesvaran, C. (2007). Expatriate management: A review and directions for research in expatriate selection, training, and repatriation.  Handbook of research in international human resource management , 197-220.

Suutari, V., & Brewster, C. (2001). Expatriate management practices and perceived relevance: Evidence from Finnish expatriates.  Personnel Review .

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Expatriate Assignments Are on the Rise

Published: Jan 24, 2019 Modified: Mar 25, 2020

By AMA Staff

The number of employees on international assignments has doubled over the last three years as part of the continuing trends toward globalization, according to a new survey conducted by Mercer. Mercer’s 2008/2009 Benefits Survey for Expatriates and Globally Mobile Employees covers 243 multinational companies worldwide, including over 94,000 expatriates (compared to 50,000 in 2005/2006). Mercer conducts the survey every three years to provide an overview of expatriate policies in large multinational firms. According to the report, 47% of companies surveyed said they had increased the deployment of traditional expatriates (employees on 1–5 year assignments) and 38% reported an increase in “global nomads” (employees that continuously move from country to country on multiple assignments). “The desire to be globally competitive has driven growth in expatriate assignments. As companies launch new ventures overseas, they continue to bring experts from their other locations to lead projects on a short-term basis, rather than rely on local talent,” said Duncan Smithson, leader of Mercer’s international consulting business in the Midwest. “These seasoned professionals who move from assignment to assignment in the same multinational company transfer experience, knowledge and consistent approaches to conducting business.” According to Mr. Smithson, “International assignments are part of multinationals’ global leadership development programs. Gaining experience in different geographies continues to be seen as an essential part of career growth in many international firms.” Benefit policies The majority of companies surveyed (86%) consider benefit provision for expatriate employees a medium or high business priority. However, 26% admit to having no overarching policy for providing expatriate benefits. “International policies are essential for remaining competitive, maintaining geographical consistency and controlling costs,” said Dany Mathieu, principal in Mercer’s international consulting business. “Even in uncertain economic times, companies compete for the best talent and those that are lax will lose out.” When asked to rate the success factors for their expatriate benefits plan, survey participants ranked supporting the company’s business and HR strategies the highest (63%). Being valued by employees and remaining cost effective were also deemed important factors (both 59%). However, the survey found that nearly two-thirds of companies (64%) have no specific procedures in place to measure the success of their expatriate benefit programs. “Creating and maintaining benefit plans for expatriates is an expensive and complicated undertaking. By failing to assess the value of these programs to the company or to the employees themselves, many organizations miss the opportunity to improve their benefit offering and sharpen their competitive edge,” said Mr. Mathieu. International retirement plans The majority of companies surveyed keep their expatriates in host or home country retirement plans. However, 32% of companies offer international plans* – an increase from 23% in 2005. Close to three-quarters (73%) of companies with an international plan restrict eligibility to certain expatriates who cannot be kept in the home or host plan. “More expatriates are going on multiple assignments across several geographies. Over time it becomes difficult for companies to justify the link to the office in the expatriates’ original home location when they have not worked there for many years. And swapping an employee from one host plan to another is often an unattractive option,” said Mr. Smithson. “Furthermore, based on the location, retaining expatriates in the home country pension plan may create compliance and regulatory problems.” He continued, “In these instances, setting up an international plan is often the most attractive option for multinational companies that want to provide pension benefits to their globally mobile employees.” Other benefits The majority of respondents provide medical benefits for their expatriates, whether via international plans or via home- or host-country plans. However, more than 80% do not consider the local social security provision when providing these benefits. Mr. Mathieu explained, “Some multinational companies have considered tailoring their medical plans to integrate with local social security provisions in order to achieve cost savings. However, it is debatable whether the potential cost savings justify the expense of doing this. The data suggest few have yet to implement such plans, although a growing number of organizations are exploring this approach.” The majority of respondents cover their expatriates for death benefits (86%) and long-term disability benefits are provided by more than three-quarters of participating companies (78%). North American companies are more likely to offer benefits at a cost to the employee, typically by way of deductibles or co-payments. *International plan: A retirement plan exclusively for Globally Mobile Employees (e.g., an offshore plan financed via a trust or insurance contract in an offshore tax sheltered location). Copies of Mercer’s 2008/2009 Benefit Survey for Expatriates and Globally Mobile Employees are available from www.imercer.com/expatbenefits or by calling 800-333-3070.

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Designing Global Compensation Systems

An international assignment compensation system has to finely balance adequately rewarding and motivating expatriates while keeping costs under control for corporate headquarters. The cost of a three-year international assignment can easily exceed $3 million.

Because of the enormous investment, developing a comprehensive global compensation system for expatriates is one of the most critical challenges facing global human resource management.

Developing a Compensation Philosophy and Strategy

Companies with multinational operations need to develop compensation plans for employees that are in line with their global business strategy. Companies that articulate a clear global pay philosophy and develop corresponding compensation programs are best positioned to effectively execute their strategy. An effective global compensation strategy creates consistency in pay management and facilitates global employee mobility. See Viewpoint: Cross-Border Considerations for International Executives .

Establishing guidelines and practices with consistent communication of key messages is vital to the success of the compensation program.

Although multinational employers are striving to globalize their compensation practices, local and regional approaches to international pay are still most common.

Approaches to Global Compensation

International assignment compensation has many moving parts and is difficult to standardize. Many factors affect the compensation of a particular expatriate, including assignment type and length, location, family needs (if any), and benefits. The main compensation items for expatriates involve base pay, cost-of-living adjustments, housing allowances, home leave, education assistance for dependents and premium pay. See How Should We Compensate an Employee on a Foreign Assignment?

The U.S. Department of State indexes the living costs abroad, quarters allowances, hardship differentials and hazard pay allowances. The information, published quarterly, is used by many organizations to assist in establishing private compensation systems. See Salaries, Cost of Living and Relocation .

While the U.S. Fair Labor Standards Act does not apply to employees working outside of the U.S., employers must be familiar with the host country's labor laws.

Do U.S. employment laws apply to U.S. citizens working abroad?

The New UAE Labor Law—What You Need to Know

Multinationals Strive to Meet Stringent Pay Equity Requirements

Compensation Plan Elements

A global compensation plan includes elements typical of any rewards strategy along with a few extra incentives and allowances, depending on the host country.

When an employee accepts an international assignment, it is up to the employer to determine the base rate of pay (referred to as the base salary). The base salary is normally related to pay ranges in the home country, which then may be adjusted based on local variances (i.e., fluctuations in the economy). Companies take one of the following approaches to establish base salaries for expatriates:

• The home-country-based approach. The objective of a home-based compensation program is to equalize the employee to a standard of living enjoyed in his or her home country. Under this system, the employee's base salary is broken down into four general categories: taxes, housing, goods and services, and discretionary income.
• The host-country-based approach. With this approach, the expatriate employee's compensation is based on local national rates. Many companies continue to cover the employee in its defined contribution or defined benefit pension schemes and provide housing allowances.
• The headquarters-based approach. This approach assumes that all assignees, regardless of location, are in one country (i.e., a U.S. company pays all assignees a U.S.-based salary, regardless of geography).
• Balance sheet approach. In this scenario, the compensation is calculated using the home-country-based approach with all allowances, deductions and reimbursements. After the net salary has been determined, it is then converted to the host country's currency. Since one of the primary goals of an international compensation management program is to maintain the expatriate's current standard of living, developing an equitable and functional compensation plan that combines balance and flexibility is extremely challenging for multinational companies. To this end, many companies adopt a balance sheet approach. This approach guarantees that employees in international assignments maintain the same standard of living they enjoyed in their home country. A worksheet lists the costs of major expenses in the home and host countries, and any differences are used to increase or decrease the compensation to keep it in balance.

Some companies also allow expatriates to split payment of their salaries between the host country's and the home country's currencies. The expatriate receives money in the host country's currency for expenses but keeps a percentage of it in the home country currency to safeguard against wild currency fluctuations in either country.

Variable/incentive compensation

The globalization of business has increased the use of variable and incentive pay around the world. But some cultures do not readily accept the practice of linking pay to individual or group performance. Other roadblocks to pay for performance include financial (not enough funding of the pool), target setting (defining performance parameters) and pay equity. Yet when it is done right, pay for performance effectively allocates limited rewards and retains top performers. As such, variable pay has become an increasingly important compensation element in many countries.

Variable pay plans generally fall into one of two categories:

• Short-term incentive plans are usually annual plans that link awards based on meeting individual or group performance criteria and objectives. Unlike long-term plans, these incentive pay plans provide for the payout to be awarded yearly.
• Long-term incentive plans, on the other hand, can vary in length from three to five years. These plans typically include equity-based incentives, such as stock options, restricted share grants and other types of equity-based plans like phantom stocks or stock appreciation rights. Awards are closely linked to the achievement of company goals and objectives over the three- to five-year period.

Participation and eligibility for each type of plan, as well as the level of incentives and average payouts, vary greatly among different companies, industries and countries around the world.

Premiums and allowances

Premiums and allowances are added to the base salary so expatriate employees can maintain their standard of living. Those add-ons are removed when the employee repatriates. Some types of premiums and allowances are as follows:

• Hardship and hazard/danger pay. Employers sometimes need to send employees on assignments to host countries where conditions are difficult or hazardous (i.e., remote locations or countries with high rates of violence). As a result, a hardship allowance may be granted as an additional incentive to compensate employees for accepting assignments in less-than-desirable countries. Premiums typically range from 10 percent to 50 percent of base pay, depending on the severity of the hardship. For assignments in developing countries that have a history of violence or are experiencing political unrest, expatriates often receive some form of hazard pay, such as an additional 25 percent of their base salary. See Hazardous Duty Pay Policy: By Position and Location .
• Cost-of-living adjustments. A cost-of-living adjustment is an increase or decrease of an expatriate employee's pay in response to fluctuations in the economy, such as inflation or deflation. To prevent attrition of the global employee's purchasing power, companies often raise the employee's base salary to keep up with inflation. When price levels drop, companies may also decrease the base salary accordingly.
• Educational assistance. Educational assistance for dependents of expatriate employees varies based on conditions in the host country. Assistance is usually not provided if local educational institutions are deemed adequate. When the educational system of the host country is substandard, employers may use a variety of benefits, such as employers operating a school in the foreign country; paying for dependents' educational expenses, including room and board, to attend schools in the United States; or providing an allowance for attendance at private schools in either the United States or the host country. Other employers may simply choose to pay employees a specified amount (stipend) considered necessary for schooling at the nearest adequate school, and the employees make up any difference to send their dependents to an institution of their choice.
• Housing assistance. Assistance for housing is usually provided either in the form of free company-owned housing or via a housing allowance that is typically equal to the difference in housing costs between the home and host countries or based on a specified percentage of an employee's base salary. Housing allowance rates are usually calculated based on either a single person or a two-person household. For employees with larger families living with them, employers may provide an additional supplement, typically ranging from 10 percent to 30 percent of the two-person allowance.
• Home leave. The objective of home leave policies is to give the assignee and his or her family the opportunity to maintain personal and business relationships and remain abreast of any economic, political, social or cultural changes in the home country. Although home leave policies vary among multinational corporations, most policies grant leave based on the employee's level within the organizational structure. Executives, managers and more senior-level professionals are most often granted home leave once a year, or once every other year for a duration of up to four weeks, and lower-level employees may be allowed only a single visit during the course of their assignment. Companies that provide home leave allowances generally purchase or reimburse the employee for any travel-related expenses, such as airline tickets for the employee, spouse or partner and any dependent children younger than college age.

Compensating Third-Country Nationals

Third-country nationals (TCNs) are employees who are not from the home country or the host country. TCNs have traditionally been technical or professional employees hired for short-term employment and are often considered international freelance employees. See What are the differences among a local national, an expatriate, a third-country national, and an inpatriate?

In the case of TCNs, multinational companies have one of three options regarding compensation:

• Pay the TCNs as if they were local nationals.
• Treat them as any other U.S. citizen would be treated.
• Establish an arrangement based primarily on the third country's existing pay ranges.

The option a company chooses depends primarily on how these employees were hired into the organization or how they obtained the international assignment. The most common practices include the following:

• If the company is hiring locally in the host country, a TCN who applies for a job (including a professional or managerial position) may be assumed to be applying under the terms being offered. In this case, unless the TCN was specifically targeted and individually recruited for the position, he or she would most likely be offered the same compensation package provided to other local nationals.
• If a TCN who is already employed by the company transferred or reassigned from another country, the compensation arrangement usually depends on the individual's particular career pattern. TCNs who occupy positions that involve regular transfers or reassignments are most likely to be compensated on the same basis as any one of their U.S. counterparts who are also subject to frequent transfers. This approach, however, may require that these employees be paid based on U.S. salary ranges that are adjusted to support differences in locations each time a transfer occurs.

Global benefits for expatriates can be complicated for HR professionals to navigate, given the myriad national health care and pension systems and the laws governing foreign residents. See Do we have to offer the same benefits to our employees who work in other countries as to the employees working in the United States?

Health care plans

Health care coverage can pose significant challenges for expatriate employees because not all U.S. health care plans provide coverage for employees residing abroad. For this reason, the practice of providing health care benefits varies greatly among multinational companies. Multinational companies can provide coverage to employees in one of the following ways:

• Include the assignee in an international health care plan.
• Continue coverage under the U.S. health care plan.
• Provide coverage for the employee through a host country health care plan.

Retirement plans

Regardless of the compensation approach a multinational company chooses to adopt, most companies commonly provide assignees with the same level of Social Security and pension plan benefit coverage, without any interruption in service, as enjoyed by other employees in the home country location.

Some countries require expatriate employees to participate in their social security or other government welfare benefit schemes. In this case, many companies provide for reimbursement of any payments made to the host country's government scheme.

Spousal/partner assistance

Since approximately half of all U.S. marriages are dual-earner partnerships, dealing with international assignments can pose significant challenges for the trailing spouse or partner, the expatriate employee and the sponsoring organization.

Trailing spouses face many challenges to finding suitable employment in the host country, including language and legal barriers as well as differences in educational, professional or licensing requirements.

Assistance with job searches, visas or work permits, career and educational counseling, and resume writing are just a few examples of the types of assistance a multinational employer can provide spouses or partners of transferring employees. A less common approach is to offer a financial sum to spouses of expatriate employees for any loss of income resulting from the relocation.

Other add-ons that are less commonly offered but can significantly ease expatriate package negotiations include cultural competence training, language training and repatriation assistance.

Cross-cultural training

The purpose of these programs is to enhance the knowledge and awareness about the employee's new location and the cultural differences affecting communication, behaviors and viewpoints. Training programs typically last a few days; however, for assignments to more remote or difficult locations, programs may also include security training that lasts for a longer period of time. The length and type of training should be directly related to the perceived level of assignment difficulty or differences in the assignment country.

Employers may conduct training either as an individual program for a single transferring employee and his or her family or as a group program when a number of employees are transferring to the same location within the same general time frame. However, it is advisable when conducting group training to also provide individuals with one-on-one time with the trainer to discuss any specific issues related to the employee's job responsibilities or to address any other more personal concerns or issues. See Helping Expatriate Employees Deal with Culture Shock .

Language training

The inability to communicate can create a sense of vulnerability and loss of control. A basic knowledge of the language empowers expatriate employees to build critical relationships with host country nationals. Some jurisdictions require that employee communications be in the local language.  

Most companies provide some form of language training for expatriate employees assigned to countries where they are nonnative speakers. Training program options include the following:

• Intensive total immersion courses.
• Cross-cultural training with integrated language instruction.
• Private tutoring or coaching.
• Group language classes.
• Use of language software or audiovisual applications.

Repatriation/reassignment

Expatriate pay considerations do not end when the assignment ends. Pay can be a significant factor in making it difficult for a person to repatriate. Often employees returning home realize they made considerably more money with a lower cost of living in the host country; returning to the home country means a cut in pay and standard of living. If the foreign compensation package is disproportionate, an expatriate can suffer financial issues upon repatriation or reassignment to the home or other foreign country. Expatriate families and employees benefit from repatriation training to help readjust to living in the home country and returning to the original work environment. The length of the training often depends on the length of the assignment and the ages of the employees' children. See Managing International Assignments .

Similarly, if the leading motivator of the expatriate employee is the long-term career aspect, the company needs to provide a challenging assignment upon return to the home office or shortly thereafter. If this is not feasible, communication about future plans for such an assignment and the timing should come from a mentor or a member of the senior management team. Otherwise, the company may risk losing its entire investment to turnover of returning expatriate employees.

Tax Compliance

United States citizens and resident aliens are taxed on their worldwide income, whether the person lives inside or outside the United States. Multinational companies take one of four approaches to ensure tax compliance:

• Employees are responsible for their own taxes.
• The employer determines tax reimbursement on a case-by-case basis.
• The employer pays the difference between taxes paid in the United States and the host country.
• The employer withholds U.S. taxes and pays foreign taxes.

See How do we handle income taxes for expatriates?

Qualifying U.S. citizens and resident aliens who live and work abroad may be able to exclude from their income all or part of their foreign salary or wages, or amounts received as compensation for their personal services. In addition, they may also qualify to exclude or deduct certain foreign housing costs.

The foreign earned income exclusion allows an expatriate's annual employment earnings income (up to a cap that is adjusted each year for inflation) to be exempt from U.S. gross. The foreign housing exclusion provides for the amount of housing expenses in excess of U.S. norms to be excluded from taxable income. A foreign tax credit of the amount of foreign tax imposed on overseas earnings can be used to offset the amount of U.S. tax otherwise due by the U.S. citizen or resident.

A common misconception that contributes to the international tax gap is that this potentially excludable foreign earned income is exempt income not reportable on a U.S. tax return. In fact, only a qualifying individual with qualifying income may elect to exclude foreign-earned income, and this exclusion applies only if a tax return is filed and the income is reported. 

U.S. income tax is calculated on foreign-source income and translated to U.S. dollars at the time of receipt. Blocked currency, which is foreign income that is not readily convertible into U.S. dollars, does not constitute taxable income and may generally be deferred until the currency is convertible into U.S. dollars or is used for nondeductible personal expenses. Withholding of U.S. income tax is not required if the employer is required to withhold the host country's income tax.

The U.S. Social Security tax is mandatory if services are performed by a U.S. citizen or resident, and if the employment is for a U.S. employer or for an affiliate of a U.S. company with a 3121(l) agreement. An entity is an affiliate if the U.S. company owns at least a 10 percent interest in the voting stock or profits of the entity. However, employees performing services for an international organization are exempt from FICA, FUTA and federal income tax withholding because services rendered for international organizations do not constitute employment, and remuneration for services rendered to international organizations does not constitute taxable income. Organizations that qualify as international organizations are those that have been designated as such by the president of the United States. The exemption applies to citizens and residents of the United States as well as to nonresident aliens. 

Although foreign tax rules vary significantly by location, local taxing authorities also reserve the right to impose taxes on any income earned by the expatriate employee in the host country.

Equalization, reduction and totalization agreements

To prevent an expatriate employee from suffering excess taxation of income by both the U.S. and host countries, many multinational companies implement either a tax equalization or a tax reduction policy for employees on international assignments.

A tax equalization policy is an agreement between the employer and the employee to reduce the employee's wages, for which the employer agrees to assume the obligation for the worldwide tax liabilities of the employee. Equalization is accomplished by the use of a hypothetical tax. The hypothetical tax is calculated as if the employee had never left the United States, and it represents the employee's normal or expected tax liability for U.S. income.

Tax equalization is implemented by the use of advances to the employee; proceeds of the advance go to the tax authorities on the employee's behalf. These advances are settled at year end. The result is deferred compensation to the employee, which the host country does not tax.

Under a tax reduction policy, expatriates gain from the differences in income taxes in the United States and the foreign country to which they are assigned, or the compensation of expatriates is adjusted so they experience no loss in income as a result of the net effect of income taxes, both foreign and U.S.

Additionally, the United States government has Totalization Agreements in effect with several countries. These agreements eliminate dual coverage of employees by both the home and host countries. U.S. International Social Security Agreements coordinate with comparable programs in other countries. These agreements assign coverage according to objective rules, provide for no individual coverage elections and require that the employee remains covered by the home country and is exempt in the host country. The expatriate assignment must be for a period of five years or less, and the employee must remain an active employee of the sending employer.

All agreements exempt expatriates from the host country's version of the U.S. Old Age, Survivors, Disability and Health Insurance (OASDHI) program. Some agreements also exempt them from other foreign benefits, such as health insurance, unemployment insurance, workers' compensation, family allowances, cash sickness benefits and maternity benefits.  

Tax treaties

The United States has income tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate or are exempt from U.S. income taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income. Treaty provisions generally are reciprocal in that they apply to both treaty countries. Therefore, a U.S. citizen or resident who receives income from a treaty country and who is subject to taxes imposed by foreign countries may be entitled to certain credits, deductions, exemptions and reductions in the rate of taxes of those foreign countries. Treaty benefits generally are available to residents of the United States. They generally are not available to U.S. citizens who reside outside the United States. However, certain treaty benefits and safeguards, such as nondiscrimination provisions, are available to U.S. citizens residing in the treaty countries. See Tax Guide for U.S. Citizens and Resident Aliens Abroad .

State taxes

Many states impose taxes on the foreign income of expatriate employees who maintain a home in that state. In addition, states also may impose unemployment insurance taxes on employers that have employees with homes in that state. The reasoning is that, like other resident citizens, the employee derives certain benefits from the state, and the state where the employee resides is the most plausible place for an unemployed worker to seek unemployment compensation.

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• Managing Expatriates

Table of Contents

In today’s globalized business landscape, organizations often rely on expatriates—employees who are sent to work in foreign countries—to manage international operations, transfer knowledge, and drive organizational growth. Managing expatriates effectively is crucial to ensure the success of international assignments and maximize the benefits for both the expatriates and the organization. In this blog, we will explore strategies and best practices for managing expatriates.

Preparing for International Assignments

Preparing expatriates for their international assignments is essential to set them up for success and facilitate a smooth transition. Here are some key strategies for effective preparation:

1. Cultural Training and Language Support

Providing cultural training and language support equips expatriates with the knowledge and skills necessary to navigate the cultural nuances and communicate effectively in the host country. Cultural training programs can include information on local customs, business practices, and etiquette, helping expatriates adapt to the new environment and build relationships with local colleagues and stakeholders.

2. Pre-Assignment Visits and Familiarization

Arranging pre-assignment visits allows expatriates to familiarize themselves with the host country, understand the work environment, and establish personal connections. These visits provide an opportunity to explore the local area, housing options, healthcare facilities, and schools for accompanying family members. It helps alleviate uncertainties and enhances the expatriates’ readiness for their international assignments.

3. Support for Family Members

Recognizing the importance of family support, organizations should offer assistance to expatriates’ family members. This can include providing information on schooling options, healthcare services, and social activities in the host country. Extending support to families helps create a positive environment for expatriates and promotes their overall well-being during the assignment.

On-Assignment Support and Integration

During the international assignment, ongoing support and integration efforts are crucial for expatriate success. Here are some strategies to consider:

1. Mentoring and Networking

Assigning a mentor or a buddy who is familiar with the host country and the organization can provide valuable guidance and support to expatriates. Mentors can help expatriates navigate challenges, share insights, and facilitate integration into the new work culture. Encouraging expatriates to build professional networks within and outside the organization also helps them establish connections and expand their knowledge base.

2. Regular Communication and Feedback

Maintaining regular communication with expatriates is essential to address their concerns, provide feedback on performance, and ensure their well-being. Regular check-ins, virtual meetings, and open channels of communication help expatriates feel connected to the organization and provide an avenue for addressing any challenges or adjustments they may be experiencing.

3. Professional Development and Career Planning

Organizations should provide opportunities for professional development and career planning for expatriates. This can include training programs, skill-building workshops, and exposure to diverse projects or assignments. Career planning discussions help align expatriates’ aspirations with the organization’s goals, ensuring their long-term engagement and retention.

Repatriation and Knowledge Transfer

As expatriates complete their assignments and return to their home country, managing the repatriation process and facilitating knowledge transfer is essential. Consider the following strategies:

1. Repatriation Planning

Developing a comprehensive repatriation plan ensures a smooth transition for expatriates as they reintegrate into their home country. This includes providing support in finding suitable roles within the organization, conducting knowledge transfer sessions, and recognizing and valuing the skills and experiences gained during the international assignment.

2. Knowledge Capture and Sharing

Capturing the knowledge and insights gained by expatriates during their assignments is crucial for organizational learning. Establish processes and platforms to facilitate knowledge sharing, such as documentation of best practices, case studies, or debriefing sessions. This knowledge transfer ensures that the organization benefits from the experiences of expatriates and enables continuous improvement.

Effectively managing expatriates is key to ensuring the success of international assignments and maximizing the benefits for both the expatriates and the organization. By providing thorough preparation, ongoing support, and facilitating knowledge transfer, organizations can create a positive and enriching experience for expatriates, enhance their performance, and leverage their global expertise to drive organizational growth.

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International Business Management

1 Dynamics of International Business

• Domestic vs International Business
• Importance of International Business
• Benefits of International Business
• Challenges in International Business
• Why do Firms go International?

2 Globalization and Evolving Paradigm

• Concept and Meaning of Globalization
• The Evolution of Globalization
• The Evolving Paradigm of Globalization
• Effects of Globalization
• Drivers of Globalization for an Industry
• Strategic Implications of Globalization

3 International Business Environment : An Overview

• Appraising International Business Environment
• Political Environment
• Economic Environment
• Social and Cultural Environment
• Technological Environment
• Ecological Environment
• Legal Environment

4 Trade Theories

• Classification and Importance of Trade Theories
• International Trade Theories
• Heckscher-Ohlin Theory
• Foreign Direct Investment (FDI) Theories

5 WTO Agreements

• Structure of WTO
• Principles of WTO
• Framework Agreements of WTO
• Key Agreements of WTO
• Evolving Trade Issues at WTO
• Trade Policy Review Mechanism
• India’s Experience under WTO Trade Regime

6 Regional Trade Blocs

• Types of Trade Blocs
• Benefits of Trade Blocs
• Reasons behind the Recent Upsurge in PTAs
• Welfare Impact of PTAs
• Trade Creation and Trade Diversion
• Major Trade Blocs in the World
• European Union (World’s Largest Trade Bloc)

7 International Entry Strategies

• Volatility of Environment
• Theories of Internationalization
• Factors Influencing Entry Modes
• Market Entry Modes
• Market Entry Strategies

8 Organizational Structures

• Organization Factors and their Elements
• Types of Organizational Structures
• International Division Structure
• Global Functional Structure
• Geographic (Area) Division Structure
• Matrix Division Structure
• Multi-Business Global Product Division Structure
• Hybrid Structure
• Transnational Structure

9 Strategic Alliances

• Concept of Strategic Alliances
• Types of Strategic Alliances
• Strategic Value of Alliances
• Alliance Management

10 International Marketing

• International and Domestic Marketing
• Reasons for Entering International Markets
• Basic Modes of Entry into International Markets
• International Consumer Behaviour
• Selecting International Markets, Channels
• Buyers Steps for Successful Exporting

11 International Finance

• Global Financial System
• International Monetary System
• International Flow of Funds
• Foreign Exchange Market
• Exchange Risk Management Strategy
• Foreign Investment
• Terms of Payment in International Trade

12 International Operations & Logistics Management

• International Operations Management
• Strategic Issues in International Operations Management
• International Logistics Management
• Managing International Service Operations
• International Retailing (Operations Management)
• International Supply Chain Management (ISCM)

13 International Human Resource Management

• Role and Nature of International Human Resource Management (IHRM)
• IHRM: Definition and Scope
• Cross-Cultural Issues in IHRM
• International Recruitment and Selection
• Expatriate Training and Development
• Expatriate Performance Appraisal
• International Compensation

Tips to Prepare Employees for an International Assignment

International assignments have become a common strategy for businesses wanting to expand their reach and visibility in global markets. Relocating employees overseas has a whole host of benefits, for the organisation and also for the individual.

However, in order to ensure your assignment and projects go by successfully, you will need to undertake meticulous planning and preparation. This will protect not only the business but also the individuals who will be uprooting their lives to move to another country. Below are some essential tips to prepare your employees for their international assignments.

Cultural awareness and etiquette training

An important part of preparing your employees for an international assignment will be to train them in the cultural differences they can expect in the new country. Each country will have slightly, or sometimes significantly, different social norms and business etiquette. Teaching your employees of these differences can make it much easier for them to settle in and hit the ground running when they start working in the country.

There are various ways you can implement cultural awareness training before the employee starts their international assignment. You can find specific cultural training programmes on offer by many organisations that your employees can attend, as well as books, guides and publications that have helpful, detailed information. You can also utilise websites for expats that have practical tips for living and working in various countries.

Language lessons

Learning the local language will be another key part of preparing your employee for their international assignment. Even if the country uses English as a business language, learning the local language will help the employee to settle into their life and build better relationships.

Providing structured learning for your employee by way of lessons, either on-line or in-person, can be a great way of helping them to pick up the basics before they travel. You could also offer these to their family, if they will be travelling with a spouse and/or children. There are a number of language learning apps that can help to solidify their education, such as Duolingo and Rosetta Stone, which offer a flexible, interactive learning method.

Relocation support

Relocating to another country can be complex. You should make sure to offer plenty of support for your employees, to make the process as stress-free as possible. This should include assisting with applying for and attaining the necessary working and residency visas, as well as visas for any family who will be travelling with them.

You should also provide adequate support to help the employees find suitable accommodation. Many businesses will fund accommodation at least for the initial phase after the employee has relocated, which can help ease the pressure on them and mean they can focus on the work without worrying about housing.

You can also provide advice and guidance for other logistical relocation factors, such as finding a local bank account, tax rules, and transporting their personal items to their new home. If your employee is travelling with family, you can also provide support for them, such as finding suitable schooling options for children.

Health and wellbeing support

You should consider the healthcare provision in the country your employees will be moving to and decide whether it will be appropriate to provide international health insurance for the individual and their family. Many countries might have a requirement in the visa application for the individuals to have adequate health insurance.

Some countries might have universal healthcare, but it might be at a lower standard than what the employees are used to, in which case it might be suitable to provide access to private healthcare provision through health insurance. Private healthcare in most countries will be of good quality and provided to a good standard, with healthcare professionals who often speak multiple languages. This can make it easier for your employees to have peace of mind that their health will be looked after whilst they’re on the international assignment.

You should also consider how you will support your employees’ mental wellbeing while they’re abroad. Relocating can result in culture shock, homesickness, isolation, and low mood. It’s therefore essential that you are able to provide a support network for your employees and their families, to ensure their mental health is also looked after. This will ensure the assignment is a success for everyone involved.

Clear expectations and goals

It’s important that the employee knows exactly what will be expected of them throughout their international assignment. You should discuss with them what their goals will be and what will be expected of them before they travel. You should conduct project alignment meetings before the relocation, so you can set out the aims of the project, how the employee can work towards these goals, expected timelines, and how reporting will be done.

These meetings can also give anyone an opportunity to identify and discuss potential risks and challenges and come up with strategies to overcome them if they arise. There should be clear, defined roles amongst the project team. The employees who will be relocating should know what they are responsible for and who they can contact if and when they require further support. This will help to streamline the assignment and ensure it goes smoothly.

Open communication

At every point in the international assignment – pre-travel and once the employee has relocated – you should ensure there is space for open and honest communication. The employee should feel comfortable approaching the right people if and when they have a query or concern. The business, in turn, should ensure it is clear and open with information and details around the project.

You should ensure to regularly check in with your employees who are on assignment to ensure that they are happy with not only the work but also with their life in the new country. Make space for feedback and discussion when it is needed and ensure to address any comments that require further action.

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• Business Abroad
• Managing expats on international assignments

Caroline Walmsley, Global Head of HR, AXA - Global Healthcare

Managing expat employees on overseas assignments.

Doing Business Abroad

PUBLISHED: 10 July 2019 | LAST UPDATED: 22 August 2022

Written by Caroline Walmsley

Global Head of HR, AXA - Global Healthcare.

Living abroad can come with a mixed bag of emotions. In this article, Global Head of HR, Caroline Walmsley advises how other HR departments can support their overseas colleagues, increasing the likelihood of successful assignments. 

It’s exciting, full of adventure and new discoveries. But it’s important to recognise that living in another country can also be a nerve-wracking experience. There are challenges to overcome and, in some cases, fears to be faced. Some may just be apprehension, but others may take your team a little more time and resilience to deal with.

So for Global Mobility Managers or HR departments managing employees internationally, it’s vital they understand the details of what employees working abroad may be facing.

There are, of course, challenges that are country-specific, such as coping with extreme temperatures, which whilst can be prepared for, ultimately are up to your employees to adapt to. But there are others that are much more common, and which you should make yourself aware of before a member of your team heads off on an international assignment.

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Picking up the language

We spoke to over 500 expats and heard that nearly a third (30%) found picking up a foreign language to be the most challenging aspect of moving abroad. It’s true that not being able to communicate as clearly or confidently as you’d like can make even the most simple tasks, such as picking up a parcel from a neighbour or visiting a shop, a daunting or scary experience. It’s not just the logistics of daily life that can become a struggle for those working abroad, though. Communication failures can also make it difficult to integrate socially, with aspects such as humour not always translating easily from one language to another. Company culture could be uniform no matter where an employee works, and there may be one ‘common’ business language (such as English), but it doesn’t always mean one employee can fit seamlessly into a new environment.

As their contact in HR you can encourage assignees to stay curious, be open about their struggles and to get involved as much as they can. Language skills come with time and practise, but if they’re really having difficulties and weren’t able to take language classes before their assignment started, why not suggest they find one locally? This can also be a great way to meet people who might be facing the same struggles, helping to build up a support network.

Family matters

It’s common for expats to miss home, with two-fifths (40%) of those we spoke to reporting that being away from friends and family was the most difficult part of moving abroad. Leaving relatives behind can be especially hard in countries where the time difference makes it a challenge to keep in touch. But with the rise of social media and services such as video calls, it’s becoming easier than ever to stay in touch on a day-to-day basis, wherever friends and family may be. However, could employees take advantage of flexible working policies in order to catch up with their loved ones? Encouraging family contact instead of restricting it will ultimately engage the employee more, keeping them motivated and helping them settle into their new role and location.

A common worry is that if something happens to a loved one, particularly an elderly relative or dependent, an assignee wouldn’t be able to get to them quickly. Working closely with the employee and the local HR representative to calm these fears can help provide reassurance. Some companies will offer flights home as a benefit for international assignees, so use details such as this to comfort an assignee if they are worried about being away from family.

Finally, it’s worth urging expats who are struggling with homesickness to immerse themselves as much as possible into their adventures overseas. Maybe there are other expat employees they could get in contact with, expat clubs or forums they could join or new sports they could take up. If they can create a fulfilling and happy life abroad, they are less likely to miss home as much.

Helping your employees feel at home…

Struggling to fit in is a concern that expats are most likely to grapple with before they actually take the plunge and embark on their new life overseas. Fortunately, it’s one that doesn’t end up ringing true in many cases. Nearly two-fifths (37%) of the expats that we spoke to said they integrated easily with other families, and just 15% said that it took longer than expected to integrate.

However, in countries where there are significant cultural differences, such as religious beliefs and traditions, HR departments need to work with expats to make sure they’re aware of the local laws and customs before moving. The success of an international assignment often depends on how well the expat settles into their new environment, so it’s vital they feel well prepared when they arrive. There’s also the issue of suitability. Whilst many employees might jump at the chance to work abroad, it’s worth reminding them the extent to which their lives may be affected – would their partner have the same lifestyle they do where they currently live, for example? Providing this ‘pre-immersion’ preparation could help identify any possible issues in advance and prevent a potentially unsuccessful assignment.

Getting around

It can be disorientating to be in a place that you aren’t familiar with. While these concerns are understandable, it’s important not to let them hold your assignee back. Could a buddy system be introduced to help with familiarisation, helping them quickly get to grips with possible barriers, such as local public transport facilities? With a helping hand they’ll soon start to feel right at home.

It’s true that the expat lifestyle comes with its challenges, but with perseverance and an open mind, there’s no reason they should define an assignee’s time abroad. My advice is to not dwell when things get tough. Encourage your expat colleagues to take risks, engross themselves in the culture and customs of their new home and try not to let their worries hold them back. Remind them that their time abroad may only be temporary, so they should live it to the full and you’ll be there to support them if any problems arise. 

The information in this article is correct at the time of publishing.

The research mentioned was a sample of 501 expats living in a country different to that of their birth. It was conducted by Critical Research in January 2017.

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Overseas assignment success: adapting to new cultures

Aetna international understands the importance of ensuring that international assignments are a success from the very beginning..

We provide our members, their families and their employers with some practical knowledge to support a successful assignment.

New start, new culture

The number of international assignments among multinationals grew by 25% between 2000 and 2016 . While international assignments are becoming more strategic, they do still pose challenges and risks to employees and organisations. One challenge includes the increased pressure on employers to reduce the cost of international assignments. A typical assignment costs at least two to three times an employee’s annual salary or $1 million per assignee.

At Aetna International, our highly skilled medical experts place great emphasis on providing guidance on the health and well-being of our members prior to their relocation, maximising the potential success of the foreign assignment. We want our members and their dependants to feel confident that their newly laid roots will soon take hold, and by supporting them throughout their assignment, those roots will soon evolve into a fulfilling life abroad. We have put together a range of Destination Guides so that those planning to relocate can become familiar with the unique culture, customs and environment of their intended destination before they make the move.

Costing up cultural barriers

The ability to adapt to other cultures is critical to the success of international assignments. Aperian Global lists the top five reasons for international assignment failure as: inadequate preparation, the pressure of transition, family adaptation challenges, isolation (out-of-sight, out-of-mind syndrome) and repatriation concerns. Many assignments also fail due to people not adapting to the culture of their new home and the stresses associated with feeling like they don’t fit in. Find out more about how to prevent international assignment failure here . In KPMG’s Global Assignment Policies and Practices Survey 2015, approximately 32% of workers polled said they had turned down overseas assignments because they were concerned about how it might affect their families. They were worried about uprooting their family or interrupting their spouse’s career path.

A powerful partnership

In February 2016, we formed a partnership with specialist crisis management company red24, providing an additional layer of personal protection and security for eligible members who choose an Aetna Pioneer or Aetna Summit plan. red24’s expertise in international crisis management and security services provides a valuable extension of our health and well-being services for members relocating to higher-risk environments.

Members who have access to an Aetna International plan with red24’s AdviceLine service can learn all about their planned destination to help ensure integration success. red24’s cultural assessment works to help members understand the cultural beliefs, values and practices of their destination. This could include advice on what to wear to meetings, how to greet associates, dining out and other “dos and don’ts” specific to your new country of residence.

In addition, red24’s global team can provide round-the-clock country risk information, intelligence reports, cultural recommendations and support services to eligible individuals and employees on a group policy. Personalised and expert safety advice can be delivered to members — whose plans include red24 services — in real-time, in the event of political unrest, natural hazards, travel disruption and hostile situations.

Ongoing support to help you flourish

Aetna International understands that no two countries are the same and that no two individuals will have the same needs and requirements once they relocate. We look at what employees might need from a health and wellness point of view, and our expert clinicians are available 24/7 to support members before, during and after their assignment:

• Pre-trip planning
• Assistance locating providers and obtaining medications or medical equipment
• Coordination of medical evacuation services
• Discharge planning
• Assistance with benefit coordination
• Assistance with medical needs for the member’s return to their home country after they have completed their assignment

We address some of the most common problems leading to failed assignments – including stress and anxiety – and work to help individuals mitigate them. With organised pre-trip planning , we can guide and assist employees and their employer in reducing the risk of assignment failure, helping to ensure that the assignment is a success.

At Aetna International, we are committed to creating a stronger, healthier global community by delivering comprehensive health care benefits and health solutions worldwide. We are one of the largest providers of international private medical insurance, serving more than 700,000 members worldwide. We offer a broad range of health insurance products and related services, including medical, pharmacy, dental, behavioural health, group life and disability plans, and medical management capabilities. For more information on our international medical insurance plans and the health and wellness support available to employees on assignment, contact our expert sales consultants today. 

Mental health is a growing issue for expats; workers and their employers, as well as those relocating independently. Read our white paper — Expatriate mental health: Breaking the silence and ending the stigma — for more information.  

Aetna ® is a trademark of Aetna Inc. and is protected throughout the world by trademark registrations and treaties.

“A typical assignment costs at least two to three times an employee’s annual salary or $1 million per assignee” 

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More about Aetna International More about our plans for individuals and families

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You have been redirected to an Aetna International site. InterGlobal is now part of Aetna, one of the largest and most innovative providers of international medical insurance. We have combined our businesses to create one market-leading health care benefits company. This means we can better serve people who depend on Aetna International and InterGlobal to meet their health and wellness needs.

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UltraCare policies in Thailand are insured by Safety Insurance plc and reinsured by Aetna Insurance Company Limited, part of Aetna International. You can access our plans by following the links below:

Please read the terms and conditions of the Aetna International website, which may differ from the terms and conditions of www.interglobal.com/thailand .

UltraCare policies in Vietnam are insured by Baoviet Insurance Corporation Limited, and reinsured by Aetna Insurance Company Limited, part of Aetna International. You can access our plans by following the links below:

Please read the terms and conditions of the Aetna International website, which may differ from the terms and conditions of www.interglobal.com/vietnam .

Current office hours

To contact our local staff, call 671-472-3862 or email  [email protected] from 8AM—5PM (Monday—Thursday), 9AM—5PM (Friday).

If you missed Open Enrollment, please contact your HR representative immediately.