Discuss the statement that most expatriate selection decisions are made informally.

83. What are the challenges faced in training expatriate managers?

84. What organizational factors have an impact on expatriate’s cross-cultural adjustment?

85. What are the main objectives of a multinational Company’s compensation policy?

86. Describe the main differences between the different methods used to determine the expatriate’s base salary.

a. Balance Sheet Approach. This is the most commonly used approach. It entails developing a total compensation package that equalizes the purchasing power of the expatriate with that of employees in similar positions in the home country and provides incentives to offset the inconveniences of the relocation. The employee starts with a set of costs for taxes, housing, goods and services, and saving (reserve) in the home country. In the host country, these costs are higher. The company must then make up for the difference between costs in the home and costs in the host country. On top of this, the company must provide a premium/incentive for the employee to go through the trouble of the relocation. This approach is particularly recommended when expatriates come back home directly after their assignment and works well when expatriates originate from the same home country.

b. Host-based Approach. The host-based approach calculates the base salary relating to the host-country standards. Typical allowances will also be added in order to create a fair compensation package. This method reduces the inequality between expatriates coming from different locations and working in the same area, as well as the inequity between local employees and expatriates. But such system is only effective if the country of destination have relatively high wages, because it is easier to convince individuals to accept pay scales that are greater than what they would have otherwise. This approach is principally used by companies which have little need for expatriation.

c. International Approach. The international approach tries to create an equitable system among all international employees. This method begins with a common point of reference for expatriates who receive equivalent pay and benefits regardless of their country of destination. This approach is more easily applicable when the international employees are career internationalists and move from one foreign assignment to another. This approach is often more costly and is used by companies needing as small number of global managers.

87. What elements would you include in a repatriation program?

The company must anticipate the repatriation problems and plan actions to facilitate the reintegration of its international employees and their family. Most of the methods used to facilitate the adjustment process before the transfer can also be used for the repatriation process. In the next paragraphs, we will examine the steps of an effective repatriation process, which starts during the assignment and extends after the coming back home. The authors in the field recommend generally three steps in the preparation of the repatriation process.

1. Determination of Ownership for the Repatriation Activities. Normally, this should have been clarified before the departure. Black et al.4 propose the creation of a repatriation team, consisting of an HR department representative and the expatriate’s supervisor in the home country, or his sponsor/mentor. The role of this team is to initiate the preparation for the return and to take responsibility for identifying an appropriate return position for the expatriate. Collaboration between home and host HR and line management is essential when it comes to the managing of the international assignments. Confusion will make communication between the expatriate and the HR more difficult, and will make the expatriate feel less supported.

2. Pre-return Preparation. The repatriation should be planned much before the effective home-coming, and should ideally start at least six months before the end of the international assignment.63

• The company should give the expatriate sufficient time between the warning of the repatriation and the effective transfer to allow the expatriate and his or her family to make anticipatory adjustment before returning to the home country. Several information sources should be made available to the expatriate and his or her family to help them develop accurate expectations about the return.

• The company should inquire about the expectations of the expatriate regarding his or her expected return job and his or her career goals and initiate an internal search to find a suitable position. In the ideal case, expectations about re-entry should have been already set up at the end of the selection process. Even if a specific job at the end of the assignment cannot be guaranteed, the assignee should at least know what opportunities are available in the company and how they can be considered for them.

• The organization should appoint an organizational sponsor/ mentor, who could be an accurate source of information about the company-related changes. The sponsor should have himself/ herself experienced expatriation and have sufficient influence to act as a supporter for the expatriate

• Periodical visits to the home country just prior to the repatriation give the expatriate the opportunity to develop accurate expectations about what is happening in the home country and in the organization.

• The company should also provide pre-return training and orientation. Essential information about the repatriation process can be provided in a workshop/training program, including such matters as housing, financial compensation packages, school system, andso on.

• Finally, the company should provide assistance to the expatriate family to find a suitable accommodation back home.

3. Post-return adjustment. Black et al.4 note that the most pivotal component of successful repatriation for expatriates is the selection of a return job assignment, taking into account the expats’ skills, competencies, and the new interests developed during the international assignment. In order to avoid potential problems between the expatriate and his or her colleagues and supervisor, they could also attend training or an orientation program. The company could also organize a collective debriefing about the expats’ international experience. Finally, in order to allow the expatriate to make the transition quietly, the organization should leave time for the expatriate, and give him one week off to settle down, or allow him/her to have reduced working hours during the first days.

[1] Cultural and Language Barriers In the Workplace.pdf