EXPATRIATES - LOCALSFinding the right mix in ambition, skills and localization

By:Ali Saleem – MSc in HRM for Hospitality IndustryMauroof Mohamed – BA in HRM

Generally, companies may have three methods of staffing:• Ethnocentric Approach - filling positions with

parent company nationals• Polycentric Approach – host country nationals

employed• Geocentric Approach – any national with the

correct qualifications and experience is hired to fill the position.

The right mix ?

So, what do we want:

▫ More locals than expatriates?▫ Equal amount of locals and expatriates?▫ More local managers?▫ More locals for front line?▫ More locals at HR jobs or Finance?

We should be careful?• Foreign investments in the Maldives• GATS – General Agreement on Trade in

Service• Need to run a successful business• Business is about efficiency and profitability

and social responsibilities

Why we worry so much about expatriates?

▫Expatriate spill-over▫Irritation▫Negative Socio-Cultural impact▫Negative economic impacts

HOWEVERE …….

•Our aim should be to learn from the expatriates and help them to adopt

•Even most experienced countries has problems with expatriates

Expats love Singapore, but don’t mix much

HSBC Bank International surveyed more than 3,100 expatriates in 26 countries.

Expats in Singapore did not prioritize socializing with local people and it came 24th out of 26th for expats choosing to join a community group and 18th in terms of the ease of making local friends," says the report.

Major issues

Possible remedies – Local labor force development

Possible remedies – Localization

Typical program for expatriates may include:

▫Cross cultural training, ▫Language training, ▫Documentary and practical information on

the new location, ▫Sensitivity training, ▫Arrival orientation, ▫Field trips where possible, ▫The appointment of a mentor. .

Government & Private Sector partnership Initiatives

Stop brain drain ▫Example - TOKTEN (Transfer of Knowledge

Through Expatriate Nationals) Program▫ ILO program▫ Objectives:

Reduce the impact of brain drain by utilizing the services of highly qualified national expatriates

Transfer the latest know-how and cutting edge technology through national professionals working in the developed world.

Promote institutional capacity-building through technical expertise and policy advice.

Government & Private Sector partnership Initiatives

Annual HR ConferenceAnnually all Hospitality HR managers come together, meet and discuss pressing issues and submit outcomes of the meeting to the government policy formulation considerations

Government & Private Sector partnership Initiatives

Internet based HR forumDevice and manage an online forum to continually seek inputs from involved in the industry in relation to HR issues

Government & Private Sector partnership Initiatives

National HR Managers’ Guild(Maldives Hospitality Human Resource

Managers’Club to manage industry initiatives collectively)

▫Produce various research reports on human resources such as: Recruitment, retention, turnover Reward management Trends in learning, training and development Performance management Satisfaction and motivation surveys etc.

A total solution