What are the main challenges faced when Organisations develop expatriate assignments what can be done to deal with these issues?

As we move out of pandemic restrictions in most parts of the world, the working world remains impacted. Most office-based businesses are offering employees the benefit of hybrid working. It remains to be seen what this will mean for expats as they return to delayed assignments, but it is likely they will still face many of the challenges of their pre-pandemic predecessors. 

If you business is investing in an expat, there are several ways HR or global mobility teams can help prevent expatriate failure including:

1. Send the right people

Just because an employee has the hard skills needed to excel at a role at home, it does not mean they are the right person to send to do that role abroad. It is essential you are involved from the very beginning of the process and interview potential expatriates to identify those with skills like:

• Cultural flexibility: a love of travel may not be an indicator of cultural flexibility if the candidate spent all their time with people from their own country and ate familiar foods most nights. Look for those who love to learn about and interact with people from different cultures.
• Enthusiastic communication: was there someone in your office who tried their halting Spanish with a client or wanted to learn some Mandarin from suppliers visiting from China? They may be the right person for an international role as they may be more willing to pick up the local language and adapt their communication style to local norms.
• Cosmopolitan outlook: when interviewing potential candidates look for examples of understanding other cultures, whether that is a diverse social network, learning other languages or adapting to another culture while studying or travelling abroad.

2. Expat training

Providing holistic pre-assignment training improves expatriate success by helping the individual (and their family) feel more prepared for potential stressors that lie ahead. For an assignment lasting a year or more, you should work to design a training programme that lasts for more than a month and takes an immersive approach. This programme should include extensive language training, information on healthcare, support for families and cultural training to help them adapt to ‘how things are done’ in their new home. If possible, a visit to their new location would also be ideal.

3. Expat support

HR support should not end once the expat is in situ. A lack of local support can be a contributory factor to overall expatriate failure so building a support plan once they arrive at their new destination is key. Elements to include are:
 

4. Local support: pair the new arrival with a fellow expat or local colleague who can offer them advice on getting set-up in their new country. Things like having cable installed or finding a family doctor can be confusing and very frustrating when you don’t understand the process.

5. Updates on home country: keep your expats up to date with what is happening in their home office with fortnightly calls or emails from a nominated contact. This helps the person remain in the loop with what is going on in the office but also prepares them for their return home as their assignment comes to an end.

6. Satisfaction surveys: have employees working abroad complete short satisfaction surveys at regular intervals to identify problems before they become serious. Use the feedback provided to optimise pre-assignment training for future expats.

7. Plan for repatriation: the companies with the most successful expats took repatriating the employee at the end of their assignment seriously. Unfortunately, many businesses do not take such care. Former expatriates are expected to return to their home office as if they had never left despite the fact colleagues and company objectives may have changed in the time they were away.

Providing your expatriates with the healthcare they may need while they are working abroad is key to their physical and mental health and wellbeing. We offer a wide range of group schemes for employers and would be happy to answer any questions you have.

Deploying an employee to work overseas on assignment or as a relocation is an investment which can help your organisation take advantage of the global economy. Unfortunately, as is the case with any potentially lucrative investment, international assignments carry a high risk of failure. Expatriate failure can be expensive for your company and an unwelcome experience for the assignee, especially if they are forced to return to the UK prematurely and having not completed their assignment or met their objectives.

An awareness of the common causes of expatriate failure can help your HR department plan a water-tight international relocation strategy, to protect your organisation’s commercial objectives and the employee’s wellbeing and support their ability to perform.

This guide discusses practical steps that HR professionals can take to minimise the chances of expatriate failure, but also to derive the maximum benefit from overseas assignment success. In most cases, international assignments afford the expatriate employee the chance to acquire valuable new skills and experiences, which can be put to good use by the company upon their return.

What do we mean by expatriate failure?

Expatriate failure is a term used to describe any unsatisfactory outcome of sending an employee on an international assignment. This encompasses ‘complete’ failures, which would usually result in the employee returning to the UK without completing the assignment; and ‘partial’ failures, which may include poor performance or failure to achieve specific commercial outcomes.

The cost of expatriate failure

Globally, expatriate failure rates are consistently high due to the mental, emotional and physical strain placed on employees who relocate abroad.

Research has shown that expatriate failure rates are higher among employees sent to developing countries and lower among those sent to economically flourishing countries. In some parts of the world, relocating an employee from the UK carries around a 50% chance of failure.

Successful long-term international assignments typically cost an employer as much as three times the employee’s annual salary.

If the assignment is not a success, your organisation may not see the commercial gains needed to balance the investment and could be forced to spend more money bringing the employee home ahead of schedule.

Beyond the financial cost, there is also the impact of the experience on the employee. They may have been selected for their skills and knowledge, and a premature and unsuccessful return to their home country may impact their confidence and their pride, potentially precipitating a fresh start with a new employer.

Reasons for expatriate failure

There are many factors that can contribute to expatriate failure. Often, failings in the expatriate employee’s support system both at home and abroad are to blame.

In other cases, the assignment was doomed to failure from the outset, as the employer choose the wrong person to send on the overseas project.

If your expatriate employee does not possess the personal qualities necessary to thrive in the new environment, no amount of support provided by the organisation can ensure the assignment is a success. When planning any international relocation, keep the following common causes of expatriate failure in mind.

Poor candidate selection

When there is a lot riding on the success of an overseas project, employers often select their best and brightest employee for the international role with little regard for the other qualities they will need to be successful. While you must choose an employee with the skills and experience necessary to complete the project, personal qualities such as adaptability, open-mindedness and a love of different cultures are arguably more important. To avoid expatriate failure, employers should consider their candidate’s personality, lifestyle, interests and previous experience with foreign cultures. Keep in mind that a ‘love of travel’ will not always translate to expatriate success, especially if the employee in question spends a lot of their travel time in English-speaking areas, around other British people (e.g. at holiday resorts) or in foreign places where they can easily access familiar foods and other items from home.

The following attributes may also minimise the likelihood of expatriate failure:

• The ability to speak a foreign language (even if that language is not spoken in the overseas location, interest in foreign languages suggests interest in other cultures, and a willingness to learn new skills)
• Being single or without children (do not rule out people with dependant families altogether but finding a candidate who could relocate by themselves reduces the chances of expatriate failure being caused by domestic issues)
• Excitement about the project itself (it is not enough simply to find an employee with exceptional skills, they must also be genuinely passionate about the organisation’s goals and feel personally invested in the success of the overseas project)

Insufficient support systems

Comprehensive support structures are essential for international assignment success. Expatriate failure is often caused by lack of practical support in the host country and/or disconnection with the home environment. It is crucial that relocation support does not end as soon as the employee has arrived at their new destination. Your expatriate employee should be assigned a personal mentor in their host country, whose role it is to oversee their adjustment to the new environment and be a first point of contact when they require additional support. You should account for both in-work and personal-life issues when assigning a mentor. Consider that the employee may need assistance with:

• Negotiating the new work environment
• Building social connections outside work
• Organising services like having a phone line installed or making an appointment with a doctor

Just as employers must choose the right employee for an overseas assignment, they must choose the mentor for that employee wisely. If possible, select a mentor with expatriate employee experience so that they can empathise with the relocating employee’s struggles.

Lack of expatriate training

Expatriate failure becomes far more likely in situations where the employee has been given insufficient training prior to the move. Expatriate preparation should not be rushed and must include cultural and language training where applicable, in addition to basic training regarding their role and assignment. Your expatriate employee must be prepared with:

• The language skills necessary to communicate with their colleagues, navigate, purchase provisions and services, and make casual conversation
• Knowledge of cultural and societal norms in their host country (especially any differences which could lead to conflict or cause offence when not acknowledged)
• Basic knowledge of the area in which they will be living and working (e.g. public transport, schools, restaurants and other facilities)

Effective planning is the key to avoiding expatriate failure. Employers must ensure that every aspect of the employee’s new work and living situation has been considered, so that measures can be put in place to prevent problems. International relocation training plans vary in content and structure, depending on location and the duration of time the employee will be abroad. In general, it is wise to allow for at least one month of training time prior to the move. Preferably, this training should be conducted within your employee’s normal working hours.

Poor communication

Employers should develop a plan for structured communication with their overseas employee. Part of your support plan should include keeping the expatriate employee ‘in the loop’ with regular communications from the UK office. Consider assigning a point of contact at home and scheduling weekly or fortnightly update calls or emails. ‘Casual’ communication arrangements are not sufficient as the absence of a structured plan often results in dwindling contact, which may leave the employee feeling isolated.

Make sure your expatriate employee knows who to contact if they require additional support beyond scheduled communications. Your training programme should include making the employee aware of potential issues they may experience while settling into the new environment, such as culture shock, social isolation or domestic difficulties (when relocating with a spouse or child). The employee must understand that such difficulties can ultimately lead to expatriate failure and for that reason, they have a responsibility to report problems and seek assistance. Make it clear that you are keen to offer all necessary support but that you can only do so when you are kept informed about problems, as they arise.

Prepare for repatriation 

When planning to avoid expatriate failure, keep in mind that it is not only your employee’s experience abroad that must be considered. Depending on the length of time your employee was overseas, they may need help settling back into the UK work environment. You cannot call the international assignment a success if the employee’s performance or personal wellbeing suffer due to insufficient support when they return home.

Failure to consider the implications of repatriation often results in poor talent management. Consider the fact that the returning employee has likely acquired valuable new skills, knowledge and experience during their time abroad. These are assets to your business that may be wasted by sending the employee back to their previous job role. It may be more appropriate to move the employee to a new role in higher management or an entirely different sector within the company. Ideally, this is something you should consider and discuss with the employee when ironing out your initial plan and the terms of the international relocation. Remember that at every stage of planning, prioritising your employee’s career goals and personal wellbeing is the secret to avoiding costly and disruptive expatriate failure.

Need assistance?

DavidsonMorris’ global mobility specialists work with global employers to support development of high-impact talent mobility strategies and programmes. We understand the challenges pf overseas assignments facing both the employer and the employee and can work with you to provide expertise and insight into effective management of assignments to avoid expatriate failure.

Expatriate failure FAQs

Last updated: 29th January 2020