Business
Today’s economy entails competitive employees that can surpass the companies’ expectations in terms of output and productivity. When companies and organizations gear to strengthen their leads because of globalization, they send employees abroad for a myriad of reasons. Many multi-national companies (MNCs) deploy expatriates as a strategy to complete critical tasks such as corporate control, sharing of expertise in potential global markets, facilitation of entry into new markets and development of competencies for international management (Chew, 2004). About 80% of medium and large companies send expatriates, while 45% intend to increase the number of expatriates to achieve their goals (Black and Gregersen, 1999). Expatriates could turn the tables for the company with the right human resource (HR) strategy and support from the top management level. Procedures and processes must be carefully examined to reduce the losses, ensure productivity, and reduce turnover rates. A number of researches back the importance of reviewing the organizations’ strategies to prevent a high turnover rate.
Lange (2012), Black and Gregersen (1999) agree that one of the strategies is development of systems for career development and creation or transfer of knowledge. Companies must consider opening new doors for expatriates: to generate and share technical experience, and to develop their global leadership potentials, or even both. Managers deployed in a foreign country must have opportunities for career advancement. They should not just be deployed to resolve problems in global branches. This means that apart from the provision of twice (or even thrice) of the salary and benefits that they receive, career building systems must be developed through regular performance reviews, planning, and appraisal. The HR department at the home country and foreign country must discuss the expectations, plan concrete actions to implement career goals, and conduct regular appraisals (Lange, 2012). Both the HR and the expatriate must become proactive in identifying and addressing issues that may arise in the process of deployment. Job dissatisfaction and productivity are some of the issues that expatriates may face. A research conducted by the Harvard Business Review team reveals that about10% to 20% of US managers leave the foreign countries sooner than expected because of job dissatisfaction or problems in adjustment. In addition, one-third of these managers have not performed their expected tasks, while one-fourth has left the company to work for a competitor. The key is to discuss the rationale of the deployment. Whether knowledge generation or transfer, or development of leadership skills, it is important to focus on the right objectives for expats to achieve right measures which they could employ during the period of their assignment (Black and Gregersen, 1999). Regular monitoring through set of tools can also facilitate the progress of the expatriate.
Another key strategy that can help in reduction of turnover rates is to assign people with equally adequate technical and culturally-adaptive skills. This means placement of right people with the right skills at the right location. Technical skills must combine with the adaptive skills or the company would not thrive in the fast-paced globalization trends. Successful multi-national companies put an equal correlation between expertise and cultural adaptation. Mentoring and cross-cultural training could entail additional costs but are seen as important areas in facilitating effective expatriation (Chew, 2004; Society for Human Resources Management, 2012). It helps the expatriate easily adjust to a new working environment, and at the same time, develop connectedness to the organization’s strategies and goals. It also prepares the expatriate to become a good mentor by the time of his repatriation. The experience of Hunstman Corporation, a chemicals company based in Salt Lake City, has proven the importance of mentoring and training the potential candidates. Jon Huntsman, Jr. has employed informal methods such as taking his employees with him during international trips. He lets them experience the culture of the country through restaurants, shopping centers, and even the surroundings. From there, he identifies potential global employees that could upscale the company’s performance (Black and Gregersen, 1999).
There are more strategies to retain expatriates and reduce the turnover rate. It all boils down to the support of the top management to the HR on developing systems and programs considerate to the needs of the employees, especially the expatriates which are expected to perform their assignments well. Long-term HR strategies should be on top of the priorities of organizations. Companies could maintain their lead or outnumber their competitors with adequate strategies for local employees and expatriates.
References
Black, J. S., & Gregersen, H. (1999). The Right Way to Manage Expats. Harvard Business Review. Retrieved from https://hbr.org/1999/03/the-right-way-to-manage-expats
Chew, J. (2004). Managing MNC Expatriates through Crises: A Challenge for International Human Resource Management. Research and Practice in Human Resource Management, 12(2), 1-30. Retrieved from https://rphrm.curtin.edu.au/2004/issue2/expats.html
Lange, L. (2012). How To Keep Expatriates From Leaving. International HR Adviser.
Society for Human Resources Management. (2012, June 4). Repatriation: How can my company best retain repatriated employees? Retrieved from https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/howcanmycompanybestretainrepatriatedemployees.aspx
