Question

Evaluate the reasons that companies use expatriates for international working

Explain the process for selecting, preparing and managing expatriates for overseas relocation for work

Explain how people practice can support re-entry and resettlement of overseas workers

Solution

Task 2: Briefing Paper

4.1 Reasons that companies use expatriates for international working

As evidenced in CIPD (2021c), majority of the employers value the application of expatriates for international working. This is for knowledge and skills they contribute to an organisation. The people professionals have a critical responsibility to play in recruitment of expatriates for international working. The reasons include;

Identifying all benefits– These benefits include the short-term projects, demand for the specialist skills, speed and linked imperatives, commercial pressures, capacity development and career advancement. Also, there are evident ROI for use of expatriates. This is supported by HBR (2020) views that evidence that organisations engages in immense efforts in implementing foreign assignments for employees and the organisation. This is with the HRM consigning with the core responsibility of expat selection, capacity development and capturing strategic opportunities.
Disadvantages of using local employees– Based on the organisation practice, there could be limited pool of candidates. This is not an indicator that an organisation is not able to engage local and harness their capacity development. Hence, HR Exchange (2017) note on the need for organisations investing successfully on expatriates. This is with sufficient resources and time being spent in integrating local workforce to relevant levels.
Skills differences– Often, there prevail evident skill differences of expatriates and locals. This is with the expats being sufficiently experienced with detailed knowledge of executing their job functions.
Cultural requirements– Often, an organisation culture can entail hiring individuals with specific qualifications. As noted in Chen (2019) through an engagement of expatriates, it is necessary adapting new business environment and recognition of core distinction of old and new business environment.

4.2 process of selecting, preparing and managing expatriates for overseas relocation for work

According to Minter (2008), 90% for overseas relocation for work is as a result of failure to effectively select, prepare and manage the expatriates. In this regard, overseas relation for work is identified by Allianz care (2021) to accounting to approximately $300,000 with failing to invest on this being expensive in terms of finances and time.

Selection Approaches

There is a core difference for appropriate selection of expatriates for both the domestic and overseas assignments. For expatriates, the approaches which could be adopted include;

Performance management and appraisal– For a successful selection, expatriates would have to demonstrate their effectiveness in satisfactorily executing their job function. As evidenced in Martin and Bartol (2003) this entail an evaluation of how well an individual is able in achieving their allocated job functions in their organisation. This is while identifying the individual skills and overall behaviours.
Job Skills– As a traditional best practice, organisations were relying on the technical, job-linked skills as the core criteria to select candidates for overseas assignments. As part of the modern business environment selection, this include prioritising on global mindset with job skills also informing on the leadership and employee development adopted.
Cultural suitability– In terms of culture, the trends in the international assignments evidence an increased younger generation interest and placement in the global assignments. As noted in SHRM (2021), selection of the expatriates must also evaluate the necessity for increasing on the female expatriates owing to prevalent leadership shortages and value employers align with the gender leadership teams.
Personal Knowledge– For this criteria of selection, the individual employees would need to possess varying personalised knowledge. These would be as shown in figure 10;

Figure 10: Personal knowledge for expatriates selection

Preparing and managing expatriates

For preparing and managing the expatriates, the first step is to assist the employees in acquiring the visa. The visas requirements are varying in different countries. The visas can include the work -permit authorising paid employment in a country, work visa, dependent visa permits family members and multiple-entry visa permits offering multiple entries to a country.

Also, there is a need for identifying the contractual models of the overseas working. This is appropriately documented with the contract agreement by the employer and expatriate being made. In this contract, the areas of considerations are as shown in figure 11;

Figure 11: Contractual Requirements considered

A caution would need to be taken in contractual requirements identification for ensuring an organisation prioritise on interests of their families, working teams, managers/team leader and an organisation.

Further, the administration ensure that they facilitate the relocation programs. These are clearly identified with the best practice in their implementation being put into active consideration. This can entail tracking of the retention data of repatriated employees and benefiting from collection of information and adjustments development for reducing overall employees turnover who return to their home country.

Part of the management entails provision of relevant learning and development support for the expatriates. This is to ensure that the employees are understanding on the implication of the expatriate assignments to their success in career and successful practice. This is while noting clear pay and benefits, health checks and packages, travelling and accommodation services and appropriate family support. In support of this, Croner-I (2021) noted on the need for identifying the ROI by evidencing on the costs of remuneration, housing, cost-of-living allowances and physical relocation (family, employee possession and family).

4.3 People practice supporting re-entry and resettlement of overseas workers

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