Expatriates-to Have or Not to Have? Essay Example

Nationals (HCNs). It allows for transfers of HCNs to headquarters which can reduce language barriers and typically saves on costs. However, some potential drawbacks include limited career opportunities for HCNs as they cannot be promoted to headquarters and communication problems between the two locations. In a Geocentric approach, the selection for key positions is based on merit rather than nationality.

Employees from all countries are integrated globally, without taking into account their nationality. This results in the development of an international team of managers. However, there may be certain drawbacks associated with this approach, such as situations where host governments prioritize the employment of locals due to labor issues or other reasons.

The staffing approach of a multi-national company based on a Regiocentric approach involves dividing its international business according to regions within a continent. Only staff within these regions can be transferred, which determines the roles and opportunities available for expatriates according to Dowling et al.

The selection of expatriates is crucial and requires careful consideration as their assignment can cost between $300,000 to $1 million annually (Vance ; Paik 2006). International human resource management (IHRM) should manage personnel through selection, preparation, management, and repatriation (Anderson 2005). Despite the high investment costs, there are several advantages to utilizing expatriates.

There are many reasons and advantages to employing expatriates for foreign assignments. One of these reasons is that in certain countries, local country nationals may not have the necessary qualifications, resulting in a shortage of skilled workers. As a result, highly qualified and specialized expatriates are required to fill these positions (Stahl and Bjorkman 2006). Expatriates also tend to be well-known and trusted at MNC headquarters

due to their experience, which can benefit companies. Furthermore, according to a survey conducted by GMAC GRS in 2002, the most common reason for MNCs to hire expatriates is to fill skills gaps where there is a need for an exceptionally skilled employee in an open position (Dowling et al. 2008).

Expatriates can be an ideal solution for MNCs seeking highly skilled professionals to fill workforce gaps. The experience also benefits individual employees by exposing them to the global competitive world and gaining new skills beyond their home country. As expatriates, they take on new roles, work cultures, and colleagues while senior managers use them as testing grounds for future leaders (Stahl and Bjorkman 2006).

Mendenhall ; Oddou (2000) state that expatriates acquire valuable managerial skills during their overseas assignments, aiding them in achieving success as senior managers. Nevertheless, there are downsides to leaving one's homeland. Repatriation involves returning home after completing an international assignment and has various consequences. A crucial concern related to expatriates is the substantial investment needed, which can be a million dollars or more per year.

The early return of expatriates is risky due to the challenge they face in adapting to foreign cultures, which frequently leads to culture shock. Hofstede (1991) suggests that expatriates may feel like strangers in a new country. The diagram below depicts an expat's emotions on the vertical axis and their overseas experience stages on the horizontal axis, further illustrating this concept.

In foreign countries, expatriates usually undergo various stages on the acculturation curve. Nevertheless, after passing through these stages, they may experience alienation as their

initial positive feelings turn negative. According to Hofstede (1991), culture shock has significant effects on expatriates and can lead to termination of international assignments, ill-health, homesickness or even suicide. Furthermore, other drawbacks include providing culture training, communication/language skills training, arranging travel and accommodation as well as offering additional support to the expatriates.

(Fontaine 1989) The expatriate is unfamiliar with the foreign culture, observing significant differences in behavior, language, and attire. Proper training on specific culture, communication, and language skills is necessary for expatriates, though it can be costly and fail to yield results. Additionally, arranging travel, lodging, and support poses a challenge for the IHRM department.

Fontaine (1989) stresses the importance of employers considering time and cultural differences for international assignments. Expatriates must adjust to foreign work culture, which can be difficult according to Beirden et al. It may take a while, if at all, for them to adapt. To facilitate this adjustment, expatriates' abilities should align with workplace requirements and their needs met by recognition, awards, and reinforcement from the organization - often overlooked aspects such as travel, accommodation, and support.

According to Vance and Paik (2006), expatriates may have difficulty adjusting to the work culture if their skills and abilities do not match the MNC's objectives. It is important for employees to receive periodic recognition and rewards. Female expatriates encounter unique challenges due to stereotypes that portray them as less successful and unfit for leadership roles. These barriers include hesitation to relocate and balancing personal and professional responsibilities.

According to Stahl and Bjorkman (2006), women are often viewed as being emotional and less mobile than men due to reasons like giving birth, family responsibilities, and taking

care of their homes. As Hofstede (1991) notes, when offered an international assignment, women tend to prioritize their families before themselves, which can lower their willingness to relocate and contribute to the low number of female expatriates despite increasing demand. Additionally, Stahl and Bjorkman highlight that issues like leaving loved ones behind, spousal residence rights, and concerns about losing residency can impact expatriates' performance. These are emotional factors that can result in feelings of isolation and lead to both physical and emotional difficulties, as Sophie (2008) acknowledges.

Not hiring expatriates has an obvious downside, namely a shortage of senior managers with specialised expertise. This means the MNC may struggle to find the most suitable candidates for key roles. Repatriation is the process of bringing an expatriate back to their home country and company after completing an international assignment (Dowling et al. 2008). However, sometimes repatriation can be even more difficult than the initial adjustment to living and working in a foreign country.

(Vance & Paik, 2006) The repatriation phase can lead to various outcomes as per their research. One of them is the potential irrelevance of the knowledge and skills acquired during an overseas assignment in the native country, resulting in expats having to wait for a suitable role that utilises their competencies. This circumstance may cause some individuals to depart from the company. A competency-centered approach towards the repatriation process could help prevent these issues.

The integration of knowledge and development of learning capabilities are key objectives for the top management and the IHRM department in ensuring flexibility and adaptability of the organisation, according to Stahl & Bjorkman (2006). Achieving this will provide a competitive advantage for

the company. Researchers Harvey and Novicevic (2001) have determined that a repatriation plan is necessary for every expatriate to aid in their re-entry adjustment and prevent reverse culture shock.

The MNCs must devise and execute a repatriation procedure for each expatriate as the sole solution. To ensure successful professional and social repatriation, MNCs should institute methods. Such a practice would be highly advantageous for MNCs that invest in expats (Vance & Paik, 2006). Therefore, this essay has explored the positives and negatives of both expatriation and repatriation.

After thorough examination, it can be inferred that MNCs face the quandary of whether or not to hire an expat. Despite the costly investment and hurdles associated with expat placements, employing expats is imperative for MNCs to accomplish global missions due to their remarkable expertise. As globalization increases, it is not feasible for MNCs to guide untrained or unskilled workers for critical projects. Instead, they must search for highly skilled and capable employees. Although it may involve substantial expenses, the benefits of hiring an expat outweigh the cost.

It is crucial to provide support for expatriates facing difficulties in a foreign country. If suitable job opportunities are lacking and they return home, repatriation can be costly for MNCs. To avoid this loss, MNCs should ensure that everything is done to make the expatriate's experience positive and successful by utilizing the competitive strategy outlined in this essay. Expatriates must try to adapt to the foreign culture instead of relying solely on MNCs for their inability to adjust. In conclusion, MNCs should consider expatriation in upcoming years while following proper processes for both expatriation and repatriation.

This statement indicates that the multinational corporation can

be confident that their expatriates are not experiencing any negative effects or feelings. The source of this information is an article by B.A. Andersen titled "Expatriate Selection: Good Management or Good Luck" that was published in The International Journal of Human Resource Management in 2005. The article is referenced along with the authors O. Beriden and A.T. Mohr.

In 2006, Mirza and colleagues conducted a study to test a correspondence model of expatriate managers' work adjustment, which was published in The International Journal of Human Resource Management. Dowling and Festing also contributed to the journal. The citation for the article is: 17(11): 1907-1925. The text is enclosed in a

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& Engle, A.'s (2008) "International Human Resource Management: Managing people in a multinational context", 5th edition published by Thomson Learning in London, alongside Fontaine, G.'s (1989) "Managing International Assignments: The Strategy for Success" published by Prentice-Hall in New Jersey, and Grove, C. & Hallowell, W.'s (1998) article on "The Ideal Expatriate" (02-05-08) available at http://www.

The following html-tagged text references resources on expatriate assessments and related literature. The sources include Grovewell.com, Hofstede's 'Cultures and Consequences: Software of the Mind', Mendenhall and Oddou's 'Readings and Cases in International Human Resource Management', and Sophie's article 'Expatriates Moving Back Home' from 2008.

Stahl, G. and Bjorkman, I. wrote an article titled "Expatriates Moving Back Home: The Pros" which can be found on associatedcontent.com/category/16/page2/article/417806.