Hrm Strategy for Expats
Executive Summary
This study highlights problems in the preparation and selection process and hopefully will provide a HR department with a HRM strategy for any company operating internationally to select and prepare staff for expatriate management roles.
The companies that prepare and select their expats effectively come in many sizes and from a wide range of industries. Yet research has shown if they follow the below general practices; the chance of success outweighs the chances of failure considerably, • Assign overseas posts to people whose technical skills are matched or exceeded by their cross cultural abilities. • Screen candidates’ spouses and families • End expatriate assignments with a deliberate repatriation process.
However when failure occurs in the international business arena the human and financial costs of failure in particular, indirect costs such as loss of market share and damage to overseas customer relationships may often be linked to poor management of expatriates.
Since most expatriates work under minimal supervision in a distant location, mistakes in selection are likely to go unnoticed until it is too late. To choose the correct employee for an internation assignment the organisations should train the expatriate to prepare for their life and work abroad. Lack of training is a major cause of expatriate failure and approaches for overseas preparation would include: • Visits to the host country • Briefing by host country managers • In-house management programs (with a focus on cross cultural adaptability) • Training in local negotiation techniques (training in team building and conflict resolution) • Introduction to organizations that provide personal and professional support (i.e. AMCHAM, ANZCHAM, In Touch Foundation)
By management analyzing and addressing these issues companies would end up with much more loyal, culturally rich and enthusiastic international employees even when the
This study highlights problems in the preparation and selection process and hopefully will provide a HR department with a HRM strategy for any company operating internationally to select and prepare staff for expatriate management roles.
The companies that prepare and select their expats effectively come in many sizes and from a wide range of industries. Yet research has shown if they follow the below general practices; the chance of success outweighs the chances of failure considerably, • Assign overseas posts to people whose technical skills are matched or exceeded by their cross cultural abilities. • Screen candidates’ spouses and families • End expatriate assignments with a deliberate repatriation process.
However when failure occurs in the international business arena the human and financial costs of failure in particular, indirect costs such as loss of market share and damage to overseas customer relationships may often be linked to poor management of expatriates.
Since most expatriates work under minimal supervision in a distant location, mistakes in selection are likely to go unnoticed until it is too late. To choose the correct employee for an internation assignment the organisations should train the expatriate to prepare for their life and work abroad. Lack of training is a major cause of expatriate failure and approaches for overseas preparation would include: • Visits to the host country • Briefing by host country managers • In-house management programs (with a focus on cross cultural adaptability) • Training in local negotiation techniques (training in team building and conflict resolution) • Introduction to organizations that provide personal and professional support (i.e. AMCHAM, ANZCHAM, In Touch Foundation)
By management analyzing and addressing these issues companies would end up with much more loyal, culturally rich and enthusiastic international employees even when the
References: Deresky, Helen. 2006, International Management. 5th Ed, Pearson Prentice Hall, New Jersey. Brewster, Chris. International HRM: Beyond expatriation. Human Resource Management Journal; 1997; Vol 7 No. 3 Black, Steward J and Gregersen, Hal B. Harvard Business Review March – April 1999 Mitchell, R.Terence, Holtom, C. Brooks, Lee, W. Thomas; How to keep your best employees: Developing an effective retention policy, Academy of Management Executive, 2001, Vol 15 No. 4 Farnham Castle Center for International Briefing 2004