HRM 460 Amlan J Haque*Chapter 7Re-entry and Career Issues

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Chapter ObjectivesThis 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 repatriationJob-related issuesSocial factors, including family factors that affect re-entry and work adjustmentMultinational responses to repatriate concernsReturn on investment (ROI) and knowledge transferDesigning a repatriation programme.

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Re-entryExpatriation 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.

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Expatriation Includes Repatriation

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*The Repatriation Process

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Repatriation PhasesPreparation Developing plans for the future, and gathering information about the new positionPhysical relocation Removing personal effects, breaking ties with colleagues and friends, and traveling to the next posting, usually the home countryTransition 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.)Readjustment Coping with changes (e.g., company changes, reverse culture shock, career demands, etc.)

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Repatriation ChallengesLittle 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 re-entry problems (Harzing, 1996).44% turnover rate among 181 multinationals surveyed by GMAC-GRS 200250% leave the firm within one year39% of surveyed firms did not know their turnover rates

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Individual Reactions: Job-related FactorsCareer anxietyNo post-assignment guarantee of employmentLoss of visibility and isolationChanges in the home workplaceWork adjustmentThe employment relationship and career expectationRe-entry positionDevaluing of the international experienceCoping with new role demandsRole behaviorRole clarityRole discretionRole conflictLoss of status and payAutonomyResponsibilityLower pay in absolute termsDrop in housing conditions

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*The Repatriates Role

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*UK Repatriate Study Surveyed 124 recently repatriated employeesIndicated five predictors for repatriate maladjustment In ranked order:Length of time abroadUnrealistic expectations of job opportunities in the home countryDownward job mobilityReduced work statusNegative perceptions of employers support during and after repatriation

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*The Readjustment Challenge

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Individual Reactions: Social FactorsInternational 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 difficultEffect on partners career Recent research indicates a decrease in spousal assistance upon re-entry (e.g., job search, resume preparation and career counselling)

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Multinational ResponsesStaff availabilityHow repatriation is handled is critical Return on investment (ROI)Defining ROI in terms of expatriationGains accruing through repatriated staffKnowledge transferA one-way activity?Tacit and person-bound?

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Measuring ROIExpatriates 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 concernedTracking international assignments in a systematic wayNo formal planningLack of objective measuresToo many decisions made without cost considerations of the international assignment

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Designing a Repatriate ProgramTopics covered by a repatriation program

Repatriation, physical relocation and transition information that the company will help withFinancial and tax assistance, e.g., benefit and tax changes, loss of overseas allowances, etc.Re-entry position and career-path assistanceReverse cultural shock, including family disorientationSchool systems and childrens education and adaptationWorkplace changes, e.g., corporate culture, structure, decentralization, etc.Stress management and communication-related trainingEstablishing networking opportunitiesHelp in forming new social contracts

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*The Use of MentorsAims to alleviate the out-of-sight, out-of-mind feeling by keeping expatriate informedMentor should ensure that the expatriate is not forgotten when important decisions are made regarding positions and promotionsEffective mentoring needs managingMentoring duties include:Maintaining contact with the expatriate throughout the assignmentUpdating developments in the home countryInforming management developmentsProviding assistance in the repatriation process

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Factors Affecting MentoringSize of expatriate workforceFirms with over 250 expatriates are more likely to assign mentors.Who is responsible for repatriatesCorporate HR or a separate international assignment unit is more likely to provide mentors than the divisional level.Company nationalityEuropean firms are more likely to use mentors than U.S. firms.

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Chapter SummaryThe 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.)This chapter has been concerned with the repatriation process. We have covered:

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Chapter Summary (cont.)Job-related issues centered on career issues upon re-entry. Factors that affect career anxiety include no post-assignment 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.)

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*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.)

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Chapter Summary (cont.)Multinational responses to repatriates concerns focused on re-entry procedures. How repatriation affect staff availabilityWhether companies are measuring and obtaining a return on investment through international assignments, and The contribution of repatriates to knowledge transfer, andDesigning effective repatriation programs, including the use of mentors.(cont.)

HRM 460 Amlan J Haque

HRM 460 Amlan J Haque*Chapter Summary (cont.)Although the focus of this chapter has been repatriation in the general sense, issues concerning expatriates post-assignment 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.

HRM 460 Amlan J Haque

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