Repatriation
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samrulezzzChapter 7
Re-entry and Career Issues
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Chapter Objectives
This chapter deals with the post-assignment stage, which
raises issues for both the expatriate and the multinational. We treat this stage as part of the international assignment. Some of the issues may be connected to events that occurred during the international assignment. We examine:
The process of re-entry or repatriation The process of re-entry or repatriation Job-related issues Job-related issues Social factors, including family factors that affect re-entry and Social factors, including family factors that affect work adjustment work adjustment Multinational responses to repatriate concerns Multinational responses to repatriate concerns Return on investment (ROI) and knowledge transfer Return on investment Designing a repatriation programme. Designing a repatriation programme.
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Re-entry
Expatriation process also includes repatriation: The activity of bringing the expatriate back to the home country. Re-entry presents new challenges:
Expatriates may experience re-entry shock or reverse cultural shock. Some exit the company.
The multinationals ability to retain current and
attract future expatriates is affected by the manner in which it handles repatriation.
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Expatriation Includes Repatriation
The Repatriation Process
Repatriation Phases
1. Preparation Developing plans for the future, and
gathering information about the new position
2. Physical relocation Removing personal effects,
breaking ties with colleagues and friends, and traveling to the next posting, usually the home country
3. Transition Settling into temporary accommodation
where necessary, making arrangements for housing and schooling, and carrying out other administrative tasks (e.g., renew drivers license, applying for new health insurance, banking, etc.)
4. Readjustment Coping with changes (e.g., company
changes, reverse culture shock, career demands, etc.)
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Repatriation Challenges
Little evidence in the literature that multinationals
view the preparation for repatriation as important as pre-departure training. Readjustment is the least understood and most poorly handled.
52% of 287 surveyed subsidiaries reported repatriate reentry problems (Harzing, 1996). 44% turnover rate among 181 multinationals surveyed by GMAC-GRS 2002 50% leave the firm within one year 39% of surveyed firms did not know their turnover rates
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Individual Reactions: Job-related Factors
Career anxiety No post-assignment guarantee of employment Loss of visibility and isolation Changes in the home workplace Work adjustment
Coping with new role
demands
Role behavior Role clarity Role discretion Role conflict
The employment relationship and career expectation Re-entry position Devaluing of the international experience
Loss of status and pay Autonomy Responsibility Lower pay in absolute terms Drop in housing conditions
The Repatriates Role
UK Repatriate Study
Surveyed 124 recently repatriated employees Indicated five predictors for repatriate
maladjustment In ranked order:
Length of time abroad Unrealistic expectations of job opportunities in the home country Downward job mobility Reduced work status Negative perceptions of employers support during and after repatriation
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The Readjustment Challenge
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Individual Reactions: Social Factors
International experience can distance the
repatriate (and family) socially and psychologically (e.g., Kingpin syndrome, financial loss) Each family member undergoing readjustment Re-establishing social networks can be difficult Effect on partners career
Recent research indicates a decrease in spousal assistance upon re-entry (e.g., job search, resume preparation and career counselling)
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Multinational Responses
Staff availability
How repatriation is handled is critical
Return on investment (ROI)
Defining ROI in terms of expatriation Gains accruing through repatriated staff
Knowledge transfer
A one-way activity? Tacit and person-bound?
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Measuring ROI
Expatriates are expensive, averaged $1m/per
assignment by the U.S. multinational. High turnover rates represent a substantial financial and human capital loss to the firm. Difficulties in measuring ROI (GMAC-GRS 2002):
Receiving feedback from the business unit concerned Tracking international assignments in a systematic way No formal planning Lack of objective measures Too many decisions made without cost considerations of the international assignment
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Designing a Repatriate Program
Topics covered by a repatriation program
Repatriation, physical relocation and transition information that the company will help with Financial and tax assistance, e.g., benefit and tax changes, loss of overseas allowances, etc. Re-entry position and career-path assistance Reverse cultural shock, including family disorientation School systems and childrens education and adaptation Workplace changes, e.g., corporate culture, structure, decentralization, etc. Stress management and communication-related training Establishing networking opportunities Help in forming new social contracts
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The Use of Mentors
Aims to alleviate the out-of-sight, out-of-mind feeling by
keeping expatriate informed Mentor should ensure that the expatriate is not forgotten when important decisions are made regarding positions and promotions Effective mentoring needs managing Mentoring duties include:
Maintaining contact with the expatriate throughout the assignment Updating developments in the home country Informing management developments Providing assistance in the repatriation process
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Factors Affecting Mentoring
Size of expatriate workforce Firms with over 250 expatriates are more likely to assign mentors. Who is responsible for repatriates
Corporate HR or a separate international assignment unit is more likely to provide mentors than the divisional level.
Company nationality European firms are more likely to use mentors than U.S. firms.
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Chapter Summary
This chapter has been concerned with the repatriation process. We have covered:
The repatriation process.
Cultural novelty has been found to affect adjustment in the host country and, for the majority of repatriates, coming home to the familiar culture may assist in readjustment. However, given the profound effect of job-related and social factors, re-entry shock or reverse cultural shock is likely to occur in the readjustment process upon repatriation. (cont.)
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Chapter Summary (cont.)
Job-related issues centered on career issues upon
re-entry.
Factors that affect career anxiety include no postassignment guarantee of employment, fear that the period overseas had caused a loss of visibility, changes in the home workplace that affect re-entry positions and the employment relationship. The re-entry position is an important indicator of future career progression and the value placed on international experience. Coping with new role demands is another factor in readjustment, along with loss of status and pay. (cont.)
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Chapter Summary (cont.)
Social factors explored include loss of social
standing and the accompanying loss of the expatriate lifestyle.
Family readjustment is also important. A specific aspect is the effect of the international assignment on the spouse/partners career, such as being re-employed and having international experience recognized. (cont.)
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Chapter Summary (cont.)
Multinational responses to repatriates concerns
focused on re-entry procedures.
How repatriation affect staff availability Whether companies are measuring and obtaining a return on investment through international assignments, and The contribution of repatriates to knowledge transfer, and Designing effective repatriation programs, including the use of mentors. (cont.)
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Chapter Summary (cont.)
Although the focus of this chapter has been repatriation in the
general sense, issues concerning expatriates postassignment career should be raised. Viewing repatriation as part of the expatriation process, as suggested in Figure 7-1, should remind those responsible for expatriation management of the need:
To prepare repatriates for re-entry and To recognize the value of their international experience to both parties.
Firm and cultural factors should be understood in order to
develop and manage an effective mentoring system.
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