The Right Way to Manage Expats

This paper highlights the many issues that a multinational corporations face when
sending mangers abroad on international assignment. Not only are the costs of relocation costly,
but many expats do not perform up to expectations and are often dissatisfied with the firm when
they return. As a result, a number of companies suffer from high turnover as disgruntled expats
leave the company; taking with them the investment in training and relocating the expat. Despite
this, few companies do manage their expats well and the author proposes a theory that these
companies share three characteristics. Firstly, successful companies consider the reason for
sending expats on assignment overseas. Secondly these companies dedicate time and resources
carefully selecting the employees they send on international assignment. Finally, well managed
firms ensure the smooth repatriation of the expat upon completion of the assignment.
In order to maximize the investment firms make in their expats, the firm and the employee
should know the reason behind the international assignment. Whether the goal of the expat is to
transfer skills back to the firm or to develop a broader global mindset, the firm and the expat
should discuss these goals before departing. Secondly, firms must ensure that they are sending
the right kind of manager abroad. The reality is that not every manager is culturally flexible
enough to live and work in a radically different country. As such, firms should look for
employees who are extroverted, flexible, accepting of new cultures and those who can engage in
a collaborative negotiating style. Since negotiations vary greatly across cultures, it is important
to send managers who can adapt to the differences and are comfortable dealing with different
bargaining techniques. In order to identify whether an employee possess these traits, a firm can
engage in informal observations of potential candidates in a new cultural setting. Alternatively,
the firm could administer formal questionnaires to determine the which manager is the best fit

for international assignment. Finally, it is essential to plan and monitor the repatriation of the
expat back into society. The majority of expats returning become dissatisfied due to the sudden
decrease in authority or significant personal changes in the office. One way to ensure returning
expats remain engaged with the company is to plan the next assignment before the current
project is completed while considering the new skills and knowledge gained by the returning
expat. HR personal and upper management should consult with the returning expat to find a
suitable project so that the expat can feel that he/she is being utilized to his/her fullest potential.
Lastly, the firm should be cognizant of the culture shock expats and their family can face
returning home. Even small cultural differences can take a while to adjust to and can effect
productivity in the workplace. As a result, firms should hold sessions for expats and their
families where managers can share their experiences and difficulties in order to help them
acclimatize back into society.
This research is relevant as turnover of upper management reduces competitiveness and is
financially costly. If firms do not manage their expats effectively, these employees will likely
leave the company; taking with them all the knowledge and skills they have developed. The
investment in relocating the expat is wasted and the skills and knowledge gained will likely be
transferred to a competitor. In order to prevent this firms can use this research to design an
effective international assignment process using the framework proposed by the author. By
focusing on the process on the selection, training and repatriatio of expats a holistic approach to
international assignments can reduce the costly effect of expat turnover.
In terms of methodology, the author uses examples of company case studies to assert his theory.
The reader should be aware of the fact that such a technique could be susceptible to a number of
biases. As a result, strong empirical research would work well to strengthen the authors theory.