Expatriates and Repatriates

Expatriates and Repatriates

DR. Tanusree Chakraborty

Who is an Expatriate? An expatriate is someone who has chosen to

live in a country other than the one in which he or she legally resides.

The word expatriate comes from the Latin ex meaning “out of”, and patria meaning “country”.

Who is an Expatriate? An expatriate is different than an immigrant

in that most expatriates do not plan on residing in their new country permanently, and if they do, they plan on retaining their native citizenship for practical purposes.

Immigrants, by contrast, usually plan on residing permanently in a new country and acquiring permanent citizenship there.

Inpatriates

Hill (2005, p. 623) defines inpatriates as being 'expatriates who are citizens of a foreign country working in the home country of their multinational employer'.

Managing an International Subsidiary

Ethnocentric Approach Top management and key positions filled

by people from home country

Polycentric Approach International subsidiaries managed/staffed

by personnel from host country

Geocentric Approach Nationality deliberately downplayed Firm searches worldwide or regionally to

hire best people to fill key positions

Use of Expatriates

Use of expatriates increases when: Poor or insufficient local talent There is a need to ensure a strong corporate-

wide vision (and culture). When domestic and foreign operations are highly

interdependent. There are significant culture differences. Bottom line: When the home country does not

TRUST the abilities and/or intentions of local labour force.

Culture Shock Culture shock is the difficulty people have

adjusting to a new culture that differs markedly from their own.

PHASES Honeymoon Phase Negotiation Phase Adjustment Phase Mastery Phase

Reverse Culture Shock Reverse Culture Shock ("Re-entry Shock",

or "own culture shock“) may take place — returning to one's home culture after growing accustomed to a new one.

This results from the psychosomatic and psychological consequences of the readjustment process to the primary culture.

The affected person often finds this more surprising and difficult to deal with than the original culture shock.

Use of Expatriates

Why do International Assignments Fail?

Career blockage (“the home office has forgotten about me”)

Culture Shock, resulting in frustration and poor cooperation abroad.

Family problems, due to poor adjustment and/or lack of contact if family is left behind.

Use of Expatriates

Why do International Assignments Fail? (con’t)

Over-emphasis on technical qualifications.

Getting rid of a problem employee.

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Selecting the Expatriate Manager

Factors associated with expatriate failure: Uncertain technical competency Weak language skills Unsure about going overseas Family problems Low spouse supportBehavioral rigidityInability to adaptPoor relational abilityWeak stress management skills

Use of Expatriates

Difficulties upon Return Home20-40% of repatriates quit after returning home. Why? Lack of respect for acquired

skills/knowledge Loss of status Poor planning for return position Reverse culture shock

Use of ExpatriatesThe Role of HRM

Selection Provide realistic country preview. Measure ability to be sensitive to different

cultures and/or comfort with specific foreign country’s culture.

Have successful expatriates make the selection decisions.

Require previous international experience (pay attention to specific country worked in).

Assess family’s willingness to live or work abroad.


TrainingCross-cultural training, which can address: Major cultural differences Foreign expectations regarding polite behaviour Foreign expectations regarding business behaviour How to avoid feeling insulted when no insult is made

→ Video and role-play approaches to training delivery are critical for cross-cultural training.


Career DevelopmentEnsure expatriates know that an international assignment helps in terms of advancement within the firm

Compensation Disposable income abroad should be the same (if not

more) than what is given at home. Provide incentive to work abroad (bonus, pay

increase). Ensure pay equity within foreign facilities.

Key Expatriate Success FactorsKey Expatriate Success Factors

Professional/technical competence Relational abilities Motivation Family situation Language skills Willingness to accept position

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Selecting the Expatriate Manager

Factors associated with expatriate success: Good technical and language skillsStrong desire to work overseasSpecific knowledge of overseas cultureWell-adjusted family situationComplete support of spouseBehavioral flexibilityAdaptability and open-mindednessGood relational abilityGood stress management skills

Priority Of Success Factors Priority Of Success Factors

Depends on : • assignment length• cultural distance• amount of required interaction with local

people• job complexity/responsibility

Strategies For Successful Strategies For Successful

Repatriation Provide:Repatriation Provide:

A strategic purpose for repatriation A team to aid the expatriate Home country information sources Training and preparation for the return Support for expatriate and family

Re-entry Expatriation process also includes repatriation: the

activity of bringing the expatriate back to the home country

Re-entry presents new challenges May experience re-entry shock Some exit the company

Figure 7-1: Expatriation includes repatriation

Figure 7-2: The repatriation process

Repatriation phases

Preparation - developing plans for the future; gathering information about the new position

Physical relocation Transition Readjustment - coping with change

Individual reactions: job-related

Career anxiety No post-assignment guarantee of employment Loss of visibility and isolation Changes in the home workplace

Work adjustment The employment relationship and career

expectation Re-entry position Devaluing of international experience

Coping with new role demands Loss of status and pay

Figure 7-4: The readjustment challenge

Individual Reactions: Social Factors

International experience can distance the repatriate (and family) socially and psychologically (eg. Kingpin syndrome)

Each family member undergoing readjustment

Re-establishing social networks can be difficult

Effect on partner’s career

Table 7-1: Topics covered by a repatriation program

Repatriation Problems

Study of repatriated employees found that: 60-70% didn’t know what their position would

be when they return home 60% said their firm was vague about

repatriation and future career progression 77% took lower-level jobs in their firm 15% left their firm within one year 40% left their firm within 3 years

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 re positions and promotions

Effective mentoring needs managing

Repatriation of Expatriates

Reasons for returning to home country Most expatriates return home from overseas assignments

when their formally agreed-on tour of duty is over Some want their children educated in a home-country

school Some are not happy in their overseas assignment Some return because they failed to do a good job

Readjustment problems “Out of sight, out of mind” syndrome

Organizational changes

Technological advances

Adjusting to the new job back home

Repatriation of Expatriates

Transition strategies Repatriation Agreements

Firm agrees with individual how long she or he will be posted overseas and promises to give the individual, on return, a job that is mutually acceptable

Some of the main problems of repatriation include:

Adjusting to life back home Facing a financial package that is not as good as that

overseas Having less autonomy in the stateside job than in the

overseas position Not receiving any career counseling from the company

THANK YOU

Expatriates and Repatriates

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