Chapter 07- Training and Development
Training and development activities are part of the way in which the MNE builds its
stock of human resources – its human capital.
An indication of the importance of this is the increasing number of MNEs that have
established their own ‘universities’ or ‘schools’.
Motorola, McDonalds, Oracle, and Disney universities are good examples of these inhouse training centers.
The provision of training for international assignments is an important first step. This is
shown in MNEs wanting to provide pre-departure training to the expatriate and their
accompanying family members.
WHY IS THE INTERNATIONAL ASSIGNMENT AN IMPORTANT TRAINING
TOOL?
When expatriates venture off on an international assignment, they become trainers due
to the fact that they are expected to train HCN, who are their replacements. This is done
to transfer knowledge and competence to the HCNs.
Expatriates are expected to show the HCNs how the systems and processes work to aid
standardization. Inevitably, they will be expected to show how the systems and processes
work.
One of the reasons for international assignments is management development.
International job rotation is a useful way for employees to gain a broader perspective. It
assists in developing capable people who form the required pool of global operators.
EXPLANATION OF DIAGRAM
Recruitment and Selection → Training:
The process begins with identifying and selecting suitable candidates for
international roles.
Selected candidates undergo training to prepare for their responsibilities.
Training → Pre-departure Training:
As part of the overall training, candidates receive specific pre-departure training to
prepare for cultural, logistical, and professional challenges in the host country.
Pre-departure Training → International Assignments:
Once equipped with pre-departure training, employees embark on their
international assignments.
International Assignments → Development:
Employees gain valuable experience, skills, and knowledge during their
international assignments, contributing to their professional development.
Development → International Team:
The developmental experiences feed into the formation and strengthening of the
international team, where the knowledge and expertise are applied in a global
context.
Chapter 07- Training and Development
Pre-departure Training ↔ Development (Dashed Line):
There is a feedback loop where pre-departure training evolves based on
developmental insights gained during international assignments.
Recruitment and Selection → International Team (Dashed Line):
Recruitment also directly impacts the international team composition, ensuring that
the right talent is chosen to meet organizational goals.
Most expatriates are internal hires, however, some may be hired externally, as indicative by the
dotted lines.
THE ROLE OF EXPATRIATE TRAINING
The primary selection criterion for most MNEs is technical ability.
Pre-departure training ensures the expatriate's effectiveness and success abroad. It is a
subset of general training.
Effective cultural training assists individuals to adjust more rapidly to the new culture.
A major objective of intercultural training is to help people cope with unexpected events
in a new culture.
US multinationals have been reluctant to provide even a basic level of pre-departure
training, though this is now changing. Interest in the area began with Tung’s 5 study on
expatriation practices, including the use of pre-departure training programs. Her results
showed that
US multinationals tended to use training programs for expatriates less frequently than
European and Japanese firms.
The US attitude to the provision of pre-departure training appeared to persist through
the 1980s.
The top management of these organizations believe that pre-departure training was not
necessary and effective.
In modern days, MNEs have a more positive attitude towards pre-departure training
than in the past, due to the growing number of firms providing same.
MNEs in the past did not place much priority on pre-departure training for spouses and
children. This has changed due to the fact that there is a relationship between expatriate
performance and family adjustment.
The provision of pre-departure training varies across industries, where chemical,
pharmaceutical, healthcare and consumer firms provide the most pre-departure
training, while IT firms are the least generous.
COMPONENTS OF EFFECTIVE PRE-DEPARTURE TRAINING PROGRAMS
Cultural awareness programs
This is the most common form of pre-departure training.
For an expatriate assignment to be effective, the employee must adapt to and not feel
isolated from the host country.
A well-designed cultural awareness program seeks to foster an appreciation of the host
country's culture so that expatriates can developed the appropriate coping patterns.
Factors that cause the components of cultural awareness programs to vary:
country of assignment
duration
purpose of the transfer
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the provider of such programs
The basis of Tung's categories of pre-departure training
different learning processes
type of job
country of assignment
the time available
Tung's categories of pre-departure training
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
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area studies programs that include environmental briefing and cultural orientation
culture assimilators (a training device whereby various cultural encounters can be
discussed and analyzed)
language training
sensitivity training
field experiences
Tung proposed a contingency framework to understand possible variations in expatriate
training for deciding the nature and level of rigor of training.
The two determining factors in the framework were the degree of interaction required
in the host culture and the similarity between the individual’s native culture and the new
culture.
The related training elements in her framework involved the content of the training and
the rigor of the training.
Rosalie L. Tung's framework on expatriate training and development
Low Interaction and Low Cultural Dissimilarity:
When the expatriate's role involves limited interaction with host nationals and the
cultures are relatively similar, the need for extensive cultural training is minimal.
Training Focus: Task- and job-related skills, as these are more directly relevant to their
role.
Level of Rigor: Low, because cultural adaptation challenges are minimal.
High Interaction and High Cultural Dissimilarity:
When the expatriate's role requires significant interaction with host nationals and the
cultures are substantially different, the challenges of cross-cultural adjustment increase.
Training Focus: Cross-cultural skills (e.g., cultural sensitivity, communication styles,
understanding cultural norms) in addition to task-related skills.
Level of Rigor: Moderate to high, to ensure effective cultural adaptation and successful
interpersonal interactions.
One limitation of the model is that it does not assist the user to determine which specific training
methods to use or what might constitute more or less rigorous training.
Changes made later to Rosalie L. Tung's framework on expatriate training and development
Training should be more orientated to life-long learning than ‘one-shot’ programs with
an area specific focus.
There should be more emphasis on provision of foreign language training.
There should be emphasis on the levels of communication competence, not just verbal
communication, so the person becomes bicultural and bilingual, which enables an easier
transition between one culture and another.
Cross-cultural training assists in managing diversity.
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The preview of the expatriate position should be realistic, as this facilitates effective
performance
Mendenhall Model
Limitations of the Mendenhall model:
Insufficient time to engage in cross cultural training.
Other contextual and situational factors such as, cultural toughness, length of
assignment and the nature/type of the job may have a bearing on the content, method
and processes involved in the cultural awareness training program.
More importantly, monitoring and feedback should be recognized as important
components of individual skill development, particularly as adjustment and
performance are the desired outcomes of cultural awareness training.
Preliminary visits
Must be relevant to the intended position that the international employee will be taking up and
not simply a ‘tourist’ experience.
Benefits of Preliminary Visits
Provides a preview that allows them to assess their suitability for and interest in the
assignment.
Serves to introduce expatriate candidates to the business context in the host location and
helps encourage more informed pre-departure preparation.
Can assist in the initial adjustment process such as the selection of housing, child
education etc.
A prospective assignee may reject the assignment on the basis of the preliminary visit.
A potential problem arises if the aim of the preliminary visit is twofold – part of the selection
decision and part of pre-departure training.
Breakdown of the problems that may arise:
Preliminary Visit's Purpose:
The company organizes this visit to help the prospective assignee decide whether to
accept the assignment. It is meant to provide the assignee with a chance to assess
whether they would be comfortable living and working in the proposed country.
Mixed Signals:
The confusion arises if, during this preliminary visit, the company expects the assignee
to start making definitive decisions, like choosing housing or schools for their children.
These are actions that imply the person has already decided to accept the assignment.
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Misinterpretation:
By expecting the assignee to make such decisions during the visit, the company is
sending a message that accepting the assignment is already assumed, even though the
purpose of the visit was supposed to help the assignee decide whether to accept the offer.
Implication:
This treatment undermines the role of the visit as a neutral, exploratory step in the
decision-making process. It makes the assignee feel pressured into the assignment, as if
the visit itself is a commitment.
Language training
This is a desirable component of a pre-departure program but not for cultural
awareness training.
Language skills are important in terms of task performance and cultural adjustment.
Its continued omission from pre-departure training can be partly explained by the
length of time it takes to acquire even a rudimentary level of language competence.
Hiring language competent staff to enlarge the language pool from which potential
expatriates may be drawn is one answer, but its success depends on up-to-date
information being kept on all employees, and frequent language auditing to see whether
language skills are maintained.
The role of English as the language of world business
Tung did a study and found that of the 3000 executives from a 12 country study,
respondents from the USA, UK, Canada and Australia all found language skills as
unimportant. (They are all English-speaking countries). Executives from Europe, Asia
and South America considered knowledge of a foreign language as critical.
The resultant lack of language competence has strategic and operational implications as
it limits the multinational’s ability to monitor competitors and process important
information.
Fixman raises the question of protecting important technology in international joint
venture activities: ‘It would seem that the less one understands of a partner’s language,
the less likely one is to detect theft of technology.’
Wright and Wright in their study of British firms point out, to accept English as the de
facto ( used in practice) language of international business gives the advantage to the
other person: The other speaker controls what is communicated and what is understood.
The monolingual English speaker has less room to maneuver, no possibility of finding
out more than he is given. His position forces him to be reactive rather than proactive in
the relationship. What he says and understands is filtered through the other speaker’s
competence, over which he has no control.
Disregarding the importance of foreign language skills may reflect a degree of
ethnocentrism.
The lower the level of perceived ethnocentrism in an MNE, the more training it provides
in cultural awareness and language training.
Disregarding the importance of foreign language skills also reflects a degree of perhaps
unconscious arrogance on the part of expatriates from English-speaking countries.
Advantage of speaking in a different foreign language
Improves the expatriate's effectiveness and negotiating ability.
Improves the expatriate’s family members adjustment to the host country.
Improve managers’ access to information regarding the host country’s economy,
government and market.
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What does the degree of fluency required in the host country depend on?
The level and nature of the position that
the expatriate holds in the foreign operation
the amount of interaction with external stakeholders such as government officials
clients, trade officials, as well as with host-country nationals.
Host-Country language skills and adjustment
“Language proficiency is power”
The ability to speak the local language, regardless of how different the culture was to
their home country, was as important as cultural awareness in their ability to adapt and
perform on assignment.
Knowledge of the host-country language can assist expatriates and family members gain
access to new social support structures outside of work and the expatriate community.
Knowledge of the corporate language
Most MNEs use staff transfers as part of a corporate training program, with HCN
recruits spending time at corporate headquarters as inpatriates.
Expatriates can become language nodes, performing as communication conduits
between subsidiary and headquarters, due to their ability to speak the corporate
language.
It also can give added power to their position in the subsidiary, as expatriates –
particularly PCNs – often have access to information that those not fluent in the
corporate language are denied.
An expatriate fluent in the parent-company language and the language of the host
subsidiary can perform a gate-keeping role, whatever the formal position the expatriate
may hold.
Training programs will normally be conducted in the corporate language. Fluency in the
corporate language is, therefore, usually a prerequisite for international training
assignments and may constrain the ability of subsidiary employees to attend and benefit
from such training.
An exception to this pattern would be an example where key new line managers from
important emerging markets may be trained in their own language at the corporate
headquarters.
Practical assistance
Being left to fend for oneself resulted in a short-term negative impact on overall return
on investment, as well as a perceived breach of the psychological contract.
Poor HR support such as a lack of mobility expertise and a poor attitude towards
international assignees among locally-trained (host-country) HR staff may negatively
impact expatriate assignment.
Human Resources support is found to matter most in the first weeks or months because
most stressors are related to settling in rather than the new job.
Also problematic for expatriates is not having a central area or person to go to for
advice and information; seeking help from a dozen or more different departments was
considered time consuming and inefficient, and a distraction from doing their job
adequately.
Practical assistance includes all manner of support both before and during an
assignment.
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Examples of pre-departure practical support
preparing official papers/visas, shipping assignee’s goods to the host country
shipping additional baggage by air
interim accommodation in the home and host country( can use relocation specialists)
additional moving allowances to help cover incidental and out-of-pocket expenses
otherwise not reimbursed or covered in the policy (e.g., connection and
installation of appliances and utilities
purchase of small electrical appliances
replacement of non-fitting furniture or clothes)
furniture storage in the home country
consultations with a tax adviser and a relocation agent
Examples of on-assignment practical support
on-going language training
administrative support in filling in tax and official administration forms
assistance in opening a bank account
finding and negotiating a housing lease
During the assignment, host-country HR staff will organize any further orientation programs
and language training.
It is important that corporate HRM staff act as a liaison to the sending line manager as well as
the HR department in the foreign location to ensure that adequate practical assistance is
provided.
The corporate HR team acts as a liaison—a bridge or communicator—between two key groups:
The sending line manager: The manager in the employee's home country who is
responsible for the employee's current work and oversees their transition to the
assignment.
The HR department in the foreign location: The team responsible for handling HR
matters at the destination.
Security briefings
This is relatively new.
This is necessary due to the fact that expatriates may move to locations where personal safety
may be a concern.
Risks and threats to expatriates
hostile political environments (terrorism, kidnapping, hijacking, coup, war)
natural disasters
exposure to disease (pandemics)
travel accidents
other common travel problems (scheduling delays, passport problems)
Security Plans
evacuation procedures
assignment tracking systems
ongoing security briefings and continuous improvements in overall security in all at-risk
locations
TRAINING EXPATRIATES FOR THE TRAINING OF HCNS ROLE
One way that this could be improved by MNEs is to better utilize the knowledge transfer
process when expatriates are repatriated.
Chapter 07- Training and Development
Effective knowledge transfer occurs when there is a fit between individual readiness to transfer
knowledge and organizational receptivity to knowledge.
Organizations should align the intensity of their knowledge transfer methods with the type of
knowledge acquired abroad:
1. High-Intensity Tools:
Use for tacit and specific knowledge (complex, experience-based insights).
Examples: Assigning repatriates to strategic teams, fostering frequent
communication.
Purpose: Ensures rich, interactive transfer of nuanced knowledge.
2. Low-Intensity Tools:
Use for explicit knowledge (easily codified information, like laws and regulations).
Examples: Presentations, intranet resources.
Purpose: Efficiently share straightforward, factual knowledge.
TCN and HCN expatriate training
In order to design and implement TCN and HCN pre-departure training, local
management, particularly those in the HR department, need to be conscious of the demands
of an international assignment.
There needs to be recognition and encouragement of this from headquarters, and
monitoring to ensure that sufficient subsidiary resources are allocated for such training.
Training for Short-term and non-standard assignments
Receive little or no preparation before departure.
Reasons why companies use media-based or web-based alternatives to face-to-face crosscultural training:
Cost reasons
Time efficiency
Stand-alone alternatives
Portability (anytime, anywhere)
Used as additional forms of support for in-person programs
International business travelers
International business travelers are flying into and out of foreign operations performing a
myriad of tasks, including training. For example, explaining new product development, or
service, or process, to HCN employees that will involve demonstrations, seminar
presentations and other methods of information dissemination.
Such internal MNE interaction usually will involve the use of the corporate language.
Therefore, non-expatriates need to be aware that HCNs will differ in their level of
competence.
International business travelers may be providing new product information to foreign
agents or distributors. These activities naturally involve cross-cultural interaction.
Competence in the local language or at least an ability to work with and through
interpreters may be required.
From the limited information available, it would seem that non-expatriates learn on the job,
and gradually acquire the knowledge and skills to function effectively in various countries
and situations
THE EFFECTIVENESS OF PRE-DEPARTURE TRAINING
Pre-departure training is highly effective when it provides expatriates with essential cultural,
professional, and logistical information to ensure a smooth transition to their host country. By
Chapter 07- Training and Development
equipping employees with knowledge about local customs, language, work expectations, and
practical matters like housing and schooling, it reduces cultural shock, enhances job
performance, and minimizes stress. Tailored training that also includes family support increases
the likelihood of a successful assignment and reduces early repatriation, making it a key factor
in the success of international assignments. However, its effectiveness depends on customization,
balance, and ongoing support throughout the expatriate's stay.
The Effectiveness of pre-departure training may be weaker than expected due to:
insufficient customization to the specific needs of the expatriate or the host country:
occurs when pre-departure training is too generic and doesn't address the unique challenges
or opportunities that the expatriate will encounter. For example, training that is not tailored
to the cultural, legal, and professional norms of the host country may leave the expatriate
unprepared for crucial differences in communication styles, business practices, or social
interactions. Similarly, if the training doesn't consider the individual's role within the
company, their family situation, or their specific needs (such as language proficiency or
industry-specific knowledge), it may fail to provide the practical skills or insights necessary
for a successful transition. Customization ensures that expatriates are adequately prepared
for their assignment, increasing the likelihood of a smooth adjustment and successful
performance.
an overload of information that overwhelms the individual
a lack of focus on family adaptation
if the training is not reinforced upon arrival or lacks follow-up support, expatriates may
struggle to apply what they've learned in real-world situations.
DEVELOPING STAFF THROUGH INTERNATIONAL ASSIGNMENTS
Expected outcomes of international assignments:
Management development. Individuals gain international experience, which assists in career
progression, while the multinational gains through having a pool of experienced
international operators on which to draw for future international assignments.
Organizational development. International assignments also provide a MNE with a way of
accumulating a stock of knowledge, skills and abilities upon which it can base its future
growth. A global mindset is an important side benefit, as key personnel take a broader view.
Further, as discussed previously, expatriates are agents of direct control and socialization
and assist in the transfer of knowledge and competence.
Individual development
Individual development through expatriate assignments offers employees unique
opportunities for personal and professional growth by immersing them in diverse cultural,
business, and social environments. These assignments challenge individuals to adapt to new
cultures, expand their global perspective, and enhance their problem-solving and leadership
skills in unfamiliar settings. Expatriates gain valuable international experience, build crosscultural communication abilities, and develop a deeper understanding of global business
practices, which can significantly enhance their career prospects. The experience also fosters
resilience, flexibility, and independence, making expatriates more effective leaders in a
multinational context while contributing to personal growth and self-awareness.
Along with expected financial gain, perceived career advancement is often a primary motive
for accepting international assignments. This is particularly the case in small population
advanced economies (e.g. Austria, The Netherlands, Australia, Finland, Sweden and New
Chapter 07- Training and Development
Zealand) where the relatively small local economy is not big enough to generate growth and
international activities provide the opportunity for ongoing revenue growth.
Developing international teams
The international assignment often is the ‘training ground’ for the international cadre.
An international cadre refers to a group of highly skilled employees within a multinational
organization who are selected for international assignments, often as part of the company’s
global talent development strategy.
International teams can be formed from those who have had international experience,
though the international assignment itself may be an assignment to an international team, or
to form an international team.
Usage of international teams:
A mechanism for fostering innovation, organizational learning and the transfer of
knowledge.
A means of breaking down functional and national boundaries, enhancing horizontal
communication and information flows.
A method for encouraging diverse inputs into decisions, problem solving and strategic
assessments.
An opportunity for developing a global perspective.
A technique for developing shared values, thus assisting in the use of informal, normative
control through socialization.
What does the effectiveness of international assignments depend on?
Individuals concerned (based on personality traits). Individuals can learn to be more
sensitive to the challenges of working in another country – that is, to become more culturally
aware. This knowledge and experience would prove valuable when working in an
international team comprised of colleagues from other countries.
Type of multinational
Contextual Factors
The MNE needs to be able to provide the resources and support for those working in
international teams such as R&D projects.
Managers supervising international teams, for example, will need to understand processes such
as group dynamics, especially how national cultures affect group functioning. Those who have
previous experience of international assignments and teams will be better placed than those who
have not.
TRENDS IN INTERNATIONAL TRAINING AND DEVELOPMENT
Globalization vs. Localization
Despite the push for a convergent approach to training and development due to
globalization, many developing countries continue to pressure for localized training
initiatives. MNEs must balance these demands.
National Context and Institutions
Even though globalization impacts business processes, the national context and institutions
still play a crucial role in competence development and learning. MNEs must consider these
factors when designing training programs.
Role of NGOs in International Training
Non-governmental organizations (NGOs) are becoming increasingly important in
international training and development efforts, influencing how programs are designed and
implemented across borders.
Chapter 07- Training and Development
Focus on China
With China’s rise as an economic superpower, there is growing interest in training and
development, particularly focused on China’s specific context, business practices, and
competencies needed to work in or with China.
Global, Comparative, and National Contexts
There is a growing recognition that training and development efforts should take into
account global, comparative, and national contexts, just as international human resource
management (HRM) is starting to do. This broader perspective helps in crafting more
effective training programs across different regions.
RE-ENTRY AND CAREER ISSUES
Re-entry Shock / Reverse Culture Shock
Repatriates often experience unexpected challenges when returning home, known as reentry shock or reverse culture shock.
While adjusting to a new country can be anticipated, returning home may be more difficult
due to changes in the home country, work environment, and personal life.
Re-entry shock can be surprising, traumatic, and in some cases, more difficult than the
initial adjustment to the foreign country.
Adjustment Problems
Problems arise from adjusting to changes in personal life, the workplace, and societal norms
at home.
Returning expatriates may struggle with reconnecting to their previous social networks,
family dynamics, and work relationships.
Impact on Future Expatriates
The manner in which an MNE handles repatriation significantly affects its ability to attract
future expatriates.
A poorly managed repatriation process can damage the MNE’s reputation and hinder
recruitment efforts for international assignments in the future.
Final Stage in Expatriation Process
Repatriation is often seen as the conclusion of the expatriation process by MNEs, but it
requires careful attention and planning for the successful reintegration of the expatriate.
If mishandled, the repatriation stage can lead to dissatisfaction and impact the overall
expatriate program's effectiveness.
THE REPATRIATION PROCESS
Stage
Description
Pre-Departure
- MNEs assign home sponsors or mentors to keep the expatriate informed about
changes in the home country.
- The sponsor can be an experienced expatriate, offering guidance and facilitating
communication with relevant networks.
- Web-based resources may be provided to help the expatriate stay informed about
changes in the home country.
During the
Assignment
- Home leave, communication with sponsors, and information exchanges help
maintain realistic expectations.
- MNEs may facilitate periodic returns to the home country for the expatriate and
their family to reconnect with firm employees, friends, and family, as well as catch up
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Stage
Description
on business and political developments.
- MNEs may enforce policies to ensure expatriates visit their home country.
Pre-Return
(Preparation)
- A systematic pre-return orientation process ensures the expatriate is prepared for reentry.
- Work-related information exchanges intensify before return to keep the expatriate
updated about changes in the organization, personnel, and strategic developments.
Return and
Repatriation
- Upon return, the expatriate deals with practical issues (housing, schooling, office
space) and must reconnect with the local social network.
- A clear orientation to the new role and local work dynamics is essential.
- The repatriate adjusts to changes in societal, organizational, and job dynamics at
personal, family, job, and career levels.
- Re-entry shock can occur, particularly when expatriates have an unrealistic view of
life at home.
Challenges During
- Expatriates may face challenges if they have not stayed connected with changes in
Re-entry
their home country or if they become disconnected from their home country during the
assignment.
Integration of
Experiences
- The goal is to integrate both the home and host country experiences.
- An unbalanced focus on either home or host country can lead to performance issues
during the assignment or re-entry shock upon return.
- Successful repatriation involves balancing the integration of both experiences.
Repatriation
Issues
- 52% of firms report problems with repatriates due to difficulties in managing reentry.
- MNEs may be ineffective by being too vague about repatriation or expecting the
expatriate to jump back into their home assignment too quickly without addressing
their re-entry issues.
INDIVIDUAL REACTIONS TO RE-ENTRY
JOB-RELATED FACTORS:
Career Anxiety of Repatriates:
A primary concern for expatriates, which can affect productivity during the final months of
the international assignment.
Often arises from uncertainty about future job security, career advancement, and the value
of international experience.
Can be caused by the lack of a post-assignment guarantee of employment, especially in
firms that don’t promise a job upon return.
May also be triggered by fears of losing visibility within the organization or becoming
isolated.
Causes of career anxiety:
Lack of Post-Assignment Job Guarantee
Many firms do not provide a guaranteed job upon completion of the international
assignment, leading to heightened career anxiety.
Studies show that while some firms (especially in Continental Europe) offer job guarantees,
most North American and UK firms do not.
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Fear of Loss of Visibility and Isolation
Fear of being "out of sight, out of mind" as a result of limited contact with the home
organization during the assignment.
The seniority of the expatriate's position, the amount of contact with the home company,
and knowledge of a
-entry position all influence this anxiety
Lack of Information About Re-entry Position
Not having information about the job awaiting the expatriate upon return can increase
anxiety, especially if the individual feels that no serious planning has been made for their reentry.
A lack of career planning for re-entry can exacerbate anxiety about the transition back to
the home organization.
Changes in the Home Workplace
Anxiety can also be caused by rumors or information about restructuring, mergers,
acquisitions, or job cuts within the MNE.
Organizational changes, especially restructuring or job cuts, can make the re-entry process
more difficult, particularly when the expatriate is uncertain about the stability of their job.
Major changes in the home country’s operations, such as plant closures, may also affect reentry planning.
Premature or Unplanned Repatriation
Changes in the host country (such as plant closures or mergers) can force an early return,
making the repatriation process more difficult and less predictable.
When the expatriate is forced to return without clear re-entry plans, it can lead to feelings of
being unprepared and unsupported
Perceived Career Enhancement
Despite the challenges, many expatriates perceive career benefits from international
assignments, such as enhanced marketability, broader experience, and increased visibility.
Studies show that 87% of expatriates view their international experience as increasing their
career prospects, even outside of their current organization.
Work adjustment for Repatriates:
Career Anxiety
Expatriates often experience anxiety related to career advancement upon re-entry.
Anxiety can arise before the end of the assignment, affecting productivity and causing
concerns about future employment.
Career anxiety can stem from unclear post-assignment job guarantees, fear of being
forgotten while abroad, and changes in the home workplace, including restructuring or job
loss.
Employment Relationship
Clear expectations set by top management that international experience is essential for
career progression.
Statements like “International experience is required for promotion” can set up strong
career expectations.
When such expectations are unmet upon return, repatriates may feel a sense of betrayal or
disappointment, contributing to career anxiety.
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Psychological Contract
Refers to the unwritten expectations between the expatriate and the employer.
Expatriates may expect promotion upon return based on their successful international
performance.
Discrepancies between expectations and actual re-entry outcomes can cause dissatisfaction
and prompt repatriates to leave the organization.
Re-entry Position
Concerns about securing a promotion or suitable job upon return.
Many repatriates fear they will be forgotten while abroad or demoted upon return.
The return position may not match career expectations, especially if the expatriate held a
senior role abroad.
Disruptions caused by the international assignment (e.g., partner's career break, children's
education) heighten the desire for the family’s sacrifices to be compensated with career
advancement.
External Pull Factors
Repatriates may be targeted by external recruiters during or after their assignment.
These external opportunities may make staying with the current employer less appealing,
especially if the firm does not provide satisfactory career progression.
Devaluation of Overseas Experience
The international experience gained may be undervalued, leading to a return position that
does not leverage the skills acquired abroad.
Reentry may involve a lateral move or even a job with reduced responsibilities, leading to
feelings that the overseas experience was not properly valued.
For some, this devaluation is worsened if the new position is less challenging or does not
reflect the professional growth from the international assignment.
Coping with new role demands
A role is a set of organized behaviours assigned to a particular position, often outlined in
the job description.
While individuals may influence how a role is performed, the role itself is
predetermined.
Effective behaviour depends on:
The concept of the role
Interpretation of role expectations
The individual’s ambitions
Norms inherent to the role
Readjustment Problems
Repatriates may face difficulties as their role conception remains influenced by the
foreign assignment.
Role behaviour from the foreign subsidiary may linger, leading to differences in
expectations and execution when returning to the home company.
If the repatriate’s identity and values are still strongly tied to their home culture,
adjustment back home is smoother. If influenced heavily by the foreign culture, the
repatriate may struggle to adapt to the home country’s norms and expectations.
Role behaviour shaped by the foreign subsidiary may not align with the home firm’s
expectations.
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Communication of behaviours and norms shaped abroad may result in a misalignment
with what is expected by the home organization.
SOCIAL FACTORS
Family adjustment
Individual Family Member Adjustment:
Each family member experiences unique readjustment challenges during re-entry.
Re-entry Shock:
Some returnees expect life at home to have remained unchanged ("freeze frame"), leading
to a sense of shock when confronted with changes.
Glamorized Perception of Home:
As a coping mechanism abroad, some expatriates glamorize life back home.
Upon return, they may struggle to reconcile reality with idealized expectations,
balancing both positive and negative aspects of home.
Economic Challenges:
The home country may have higher inflation levels than previously experienced,
creating financial strain.
Family income may be reduced after repatriation, especially if spouses or partners
struggle to find suitable jobs.
Lifestyle Contrast:
Life at home may seem dull and unexciting compared to the foreign location.
This contrast can lead to glamorizing the previous life abroad, complicating adjustment.
Dual-income Impact:
Financial stability depends on whether spouses or partners worked in the foreign
location and their ability to secure employment upon return.
Social networks
Improved Connectivity with Home Country:
Modern communication tools (e.g., satellite TV, internet, social media, mobile phones,
Skype) make it easier for expatriates to stay informed about events back home.
Global news outlets (e.g., CNN, BBC World) and global newspapers (e.g., International
Herald Tribune) help expatriates remain updated.
Ease in Re-establishing Social Networks:
Staying connected with extended family and friends is more manageable through
affordable and accessible communication technologies.
Reconnecting can still be challenging if the family relocates to a different state or town
in the home country.
Challenges for Children:
Difficulties re-entering school and regaining acceptance in peer groups.
Struggles with being out-of-touch with current trends in sports, fashion, and other
cultural norms.
Spill-over Effect:
Challenges faced by children during re-entry can indirectly increase stress for the
repatriate.
Effect on partner’s career
Challenges for Partners Re-entering the Workforce:
Difficulty finding employment, particularly if the partner was unable to work before or
during the foreign assignment.
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Job search struggles may lower self-worth and compound adjustment difficulties.
Factors influencing workforce re-entry include occupation, time abroad, unemployment
levels in the home country, and personal attributes (e.g., age, gender).
Unanswered Research Questions:
Do employers value the partner's time abroad to offset career disruptions?
Did partners who worked abroad find career-related roles and progress upon return?
How does not working during an assignment impact self-esteem and confidence when
re-entering the workforce?
Impact of Inability to Work Abroad:
Partners unable to work during assignments often experience significant distress.
Consequences may include stress, social isolation, reliance on antidepressants, or even
severe mental health crises.
Gender-Specific Challenges:
Male "trailing" partners may face distinct challenges, requiring targeted support.
Research highlights the need for support for both male and female accompanying
partners, especially in dual-career families.
Increasing Relevance of Dual-Career Dynamics:
The rise of dual-career couples necessitates greater focus on partner career support
during expatriation and repatriation.
This is especially critical as more women pursue overseas assignments.
Insufficient Repatriation Support for Partners:
While pre-assignment and on-assignment support may be adequate, repatriation
support often lacks variety and depth.
Potential Consequences of Poor Support:
Insufficient support may lead to repatriate dissatisfaction, family tension, and increased
turnover, undermining organizational expatriation efforts.
RESPONSES BY THE MNE
Staff availability and career expectations
Impact of Repatriation on Staff Availability:
Re-entry positions signal the importance of international experience.
Promotions or assignments that utilize international experience encourage other
managers to view such assignments positively.
Lack of rewards or high repatriate turnover discourages participation in international
assignments, leading to fewer high-caliber candidates for future needs.
Boundaryless Careers:
Traditional career paths within one organization are declining in favor of more fluid,
discontinuous careers.
Boundaryless careerists build competencies by transferring across organizational and
geographic boundaries.
Individuals are increasingly responsible for their own career management (protean
careers).
Organizational Trends and Employee Perceptions:
Multinationals reinforce boundaryless careers when they fail to guarantee positions
upon repatriation.
Studies show expatriates often see international assignments as opportunities for skill
development and career advancement, even outside their current organization.
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Loyalty shifts from the organization to the individual's career ("free agent" mentality),
potentially reducing the quality and quantity of candidates for global assignments.
Challenges with Repatriation:
German and Singaporean expatriates report dissatisfaction with firms’ ability to:
Facilitate career progression upon return.
Provide opportunities to leverage skills and knowledge gained abroad.
Offer roles with appropriate responsibility, autonomy, and compensation.
International assignments are viewed as enhancing opportunities with external
employers rather than within the current firm.
Use of International Itinerants:
Some MNEs opt for professional managers with international experience from unrelated
organizations ("international itinerants") to avoid repatriation challenges.
Benefits:
Reduced costs and eliminated repatriation efforts.
Disadvantages:
Lack of firm-specific knowledge.
Challenges in selection and control of itinerants.
Variations in Career Models:
Boundaryless career patterns are more common in domestic business settings (e.g., U.S.)
but less so in global corporate cultures emphasizing leadership development.
Strategic international assignments with high IHRM activity correlate with traditional
career expectations and high retention rates among international managers.
Career Management Practices in MNEs:
Career management practices vary based on strategy or reactive decision-making.
Basic/Formal Practices:
Less sophisticated, low firm involvement (e.g., job posting, common career paths, lateral
moves).
Sophisticated/Active Practices:
High firm involvement (e.g., in-depth career counseling, succession planning, strong
links between performance management and career planning).
Uncertainty in Managing Career Practices:
Limited understanding exists about the time and effort expatriates and MNEs devote to
maintaining work relationships versus accepting repatriation turnover as inevitable.
Return on investment (ROI)
Cost Considerations for Expatriates:
Expatriates from first-world economies are expensive for multinationals.
MNEs aim to localize positions by employing Host Country Nationals (HCNs) where
possible.
Increasing use of local-plus compensation for Parent Country Nationals (PCNs) and
Third Country Nationals (TCNs) to reduce costs.
Short-term or non-standard assignments are gaining popularity as alternatives to
traditional expatriate roles to contain costs and address staff immobility.
Cost of Expatriate Assignments:
U.S. multinationals spend approximately $1 million per expatriate during foreign
assignments (Black & Gregersen).
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Around 25% of repatriates exit their firms within a year of return, leading to significant
financial and human capital losses.
Return on Investment (ROI) Challenges:
Lack of consensus on how to define ROI for international assignments.
Definitions have ranged from “accomplishing assignment objectives at expected cost” to
more comprehensive cost-benefit analyses.
Direct costs include relocation expenses and compensation packages.
Indirect and intangible costs are harder to quantify, such as:
Expatriate failure or underperformance.
Opportunity costs of not using HCNs.
Intangible benefits like knowledge transfer, management development, and relationshipbuilding are difficult to measure.
Measurement Issues with ROI:
Only 25% of firms in the 2011 Brookfield survey compared estimated costs with actual
costs.
Challenges in measuring ROI include:
Lack of clarity on how to measure ROI (50%).
Perception that ROI measurement is not critical to organizational goals (16%).
Insufficient time to measure ROI (14%).
Firms’ self-assessment of ROI was low:
No firms rated ROI as excellent or very good.
67% rated ROI as good, and 33% as fair.
Employee Perceptions of ROI:
Employees conduct individual ROI calculations based on perceived and actual costs and
benefits.
These calculations influence willingness to accept or repeat international assignments
with the same or different employers.
Strategic Challenges for MNEs:
Aligning corporate objectives with individual expectations is complex.
Balancing costs and benefits for both organizations and employees remains a significant
challenge.
Knowledge transfer
Importance of International Assignments in Business:
Foster cross-fertilization of ideas and practices for competitive advantage.
Key method for developing global workforce to manage far-flung operations.
Challenges include mobilizing the right talent at the right time.
Retention Challenges and Knowledge Transfer:
High repatriate turnover suggests undervaluing of international experience.
Knowledge transfer often treated as one-way, benefiting host locations only.
Tacit knowledge and skills gained during assignments often remain underutilized upon
repatriation.
Key Knowledge and Skills Acquired:
Market-specific knowledge: Local systems, customs, and language.
Personal skills: Intercultural knowledge, self-confidence, flexibility, and tolerance.
Job-related management skills: Communication, project management, problem-solving.
Network knowledge: Connections with clients, suppliers, and subsidiary personnel.
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General management capacity: Broader job responsibilities and exposure to other
organizational areas.
Barriers to Effective Knowledge Transfer:
Lack of formal mechanisms to share knowledge upon repatriation.
Resistance due to structural, cultural, and motivational impediments.
Repatriates often lack post-assignment opportunities to utilize or share gained
knowledge.
Organizational Trends:
Firms often avoid guaranteeing post-assignment positions, leading to potential loss of
valuable human capital.
Competing firms may benefit from the knowledge and skills of departing repatriates.
Firms undervaluing international experience may experience decreased loyalty and
intellectual capital.
Recommendations for Improving Knowledge Transfer:
Take a systemic view of the expatriate-repatriate cycle.
Address barriers to knowledge transfer by building trust and fostering shared social
identity.
HR practices should emphasize knowledge transference at all stages of the expatriation
cycle. Includes selection, pre-departure training, mentoring, assignment design, and reentry training.
Formal activities such as post-assignment seminars, action learning, and knowledge
indexing can aid progress.
Strategic Benefits of Repatriation Programs:
Structured programs can enhance employee retention and loyalty.
Proper knowledge transfer can strengthen a firm’s intellectual capital and competitive
edge.
Emerging research highlights the role of international careers in shaping foreign direct
investment strategies.
DESIGNING A REPATRIATION PROGRAM
Preparing Repatriates for Re-entry:
Re-entry training and counseling sessions: Address mismatched expectations and provide
a "reality check."
Mentoring:
Assigned mentor ensures expatriates are updated on workplace changes and not
forgotten during promotions.
Provides support during the assignment and facilitates smoother re-entry.
Mentoring effectiveness depends on proper management and continuity.
Proactive Strategies for Successful Repatriation:
Expectation management: Pre-departure briefings to clarify assignment and return
expectations.
Career planning: Multiple sessions focusing on career objectives and future
opportunities.
Written repatriate agreements: Clarify post-assignment roles and career paths.
Extended home visits: Maintain social, family, and organizational connections.
Reorientation programs: Personalized updates on organizational changes and
strategies.
Financial and tax advice: Support for financial adjustments during the transition.
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Adjustment period: Includes vacation or reduced workload to ease transition.
Recognition of contributions: Visible gestures such as promotions, bonuses, or
ceremonies.
Challenges in Current Practices:
Less than one-third of firms provide 3–6 months’ notice before repatriation.
Just under half of firms do not guarantee a post-assignment job.
Only 14% of companies link repatriation strategies to career management.
Career planning is the top repatriation issue globally; succession planning ranks
highest in Japan.
Regional Variations in Repatriation Challenges:
Asia–Pacific: Cultural readjustment is least prioritized.
EMEA and Americas: Focus on retaining technical knowledge.
Japan: Retaining assignees post-repatriation is a critical issue.
Areas for Improvement in Repatriation Practices:
Use repatriates as information sources for developing effective programs.
Involve repatriates in policy-making to recognize their value and improve
readjustment.
Ensure equity in treatment across PCNs, TCNs, and HCNs.
Potential Benefits of Enhanced Repatriation Programs:
Reduced turnover and increased retention of valuable talent.
Improved employee loyalty and morale.
Better utilization of repatriates’ knowledge and skills for organizational growth.