Chapter 7 Re-entry and Career Issues Chapter Objectives ™ This chapter deals with the post-assignment stage, which raises issues for both the oxpatriate 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 repatriation = Job-related issues = Social factors, including family factors that affect re-entry and work adjustment ‘= Multinational responses to repatriate concems = Return on investment (RO!) and knowledge transfer = Designing a repatriation programme.= Expatriation 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 multinational's ability to retain current and attract future expatriates is affected by the manner in which it handles repatriation. ones a a . Expatriation Includes Repatriation Povey nega ae ,The Repatriation Process Preparation — Developing plans for the future, and gathering Information about the new position Physical relocation — Removing personal effects, breaking ties with colleagues and friends. and traveling to the next posting, usually the home country Transition — Settling into temporary accommodation where necessary, making arrangements for housing and schooling, and carrying out other administrative tasks (e.g., renew driver's license, applying for new health insurance, banking, etc.) Readjustment — Coping with changes (e.g., company changes, reverse culture shock, career demands, etc.) sees py gna "Repatriation Challenges = Little 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 2002 = 50% leave the firm within one year = 39% of surveyed firms did net know their turnover rates Prepares Manama sn 2 Individual Reactions: Job-related Factors = Career anxiety = Coping with new role = No post-assignment demands guarantee of employment = Role behavior = Loss of visibility and = Role clarity isolation = Role discretion eRe al = Role conflict eee = Loss of status and pay cut = Autonomy = The employment relationship and career Responsibility expectation = Lower pay in absolute = Re-entry position = Devatuing of the international experience terms = Drop in housing conditions vero tonearm PeeIndividual Reactions: Social Factors = International experience can dis repatriate (and family) socially and psychologically (e.g., Kingpin syndrome, financial loss) = Kingpin syndrome (A sense of lost kingdom)- Particularly when the expatriate position gave him/her a high profile = Financial loss of compensation package which becomes very substantial when there is. inflation in the home market. Life may seem dull and unexciting at home and the family may to glamorize the life they left behind in the foreign location oven cg ge a ” Individual Reactions: Social Factors @ Each family member undergoing readjustment m Re-establishing social networks can be difficult = Effect on partner's career = Recent research indicates a decrease in spousal assistance upon re-entry (e.g., job search, resume preparation and career counselling) = Children may also find difficulties after re- entry of the parents rpms Marna hese Ast =Individual Reactions: Social Factors shock can produce a U curve in terms of adjustment to the host location. Indeed, it is sometimes referred to as the W- Curve to include re-entry shock upon repatriation. It is however to be noted that how severe would be the shock depend on how long and how better he/she was in the foreign location. Finally, job related and social factors may combine to create a somewhat volatile situation that may lead to the repatriate’s exit from the multinational. Pepoedny Manama al Bae Aas By The Repatriate’s Role Corporate boundary Cutual boundary Pomme nent tag a »The Repatriate’s Role ole conception: je way rep: sees his/her roles in the organization ( the role conception may however be changed by that of the foreign assignment) ™ Role behavior: Effective role behavior is an interaction between the concept of role, the interpretation of expectations as reflected by the person’s ambitions and the norms inherent in the role. Cultural and corporate boundaries may also affect role behavior of the repatriate. Prpuedty Manamya Ant ase At 2 The Repatriate’s Role Corporate boundary: Corporate boundary stands between the role recipient (the repatriate) and the role sender (the parent company) Cultural boundary: Cultural boundary stands between parent company and _ the foreign subsidiary The literature suggests that readjustment problems may occur because, although the repatriate is attempting to function back in the home country but his/her role conception remains influenced by that of the foreign assignment rpms Manama bles At aUK Repatriate Study = Surveyed 124 recently repatriated employees ™ Indicated five predictors for repatriate maladjustment = In ranked order: = Length of time abroad = Unrealistic expectations of job opportunities in the home country = Downward job mobility = Reduced work status: = Negative perceptions of employer's support during and after repatriation ‘rome oes ap A » The Readjustment Jof the change in the lenge: The problem oMultinational Responses = Staff availability = How repatriation is handled is critical = Return on investment (ROI) = Defining ROI in terms of expatriation = Gains aceruing through repatriated staff = Knowledge transfer = A one-way activity? = Tacit and person-bound? ves eg = Measuring ROI = Expatriates 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 concerned Tracking international assignments in a systematic way = No formal planning = Lack of objective measures = Too many decisions made without cost considerations of the international assignmentDesigning a Repatriate Program Topics covered by a repatriation program Repatriation, physical relocation and transition information that the company wili help with Financial and tax assistance, e.g., benefit and tax changes, loss of overseas allowances, ete. Re-entry position and career-path assistance Reverse cultural shock, including family disorientation ‘School systems and children's education and adaptation Workplace changes, e.g., corporate culture, structure, decentralization, etc. Stress management and communication-related training Establishing networking opportunities Help in forming new social contracts Ewa The Use of Mentors = Aims to alleviate the ‘out-of-sight, ‘out-of-mind’ feeling by keeping expatriate informed = Mentor should ensure that the expatriate is not forgotten when important decisions are made regarding positions, and promotions, = Effective mentoring needs managing = Mentoring duties include: = Maintaining contact with the expatriate throughout the assignment = Updating developments in the home country = Informing management developments = Providing assistance in the repatriation process ones a a ~Factors Affecting Mentoring @ Size of expatriate workforce = Firms with over 250 expatriates are more Ii to assign mentors. ™ Who is responsible for repatriates = Corporate HR or a separate international assignment unit is more likely to pro’ than the divisional level. = Company nationality = European firms are more likely to use mentors. than U.S. firms. oom nya a “ Chapter Summary This chapter has been concerned with the repatriation process. ‘We have covered: @ The 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.)Chapter Summary com) = 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.) roe cng og a “ Chapter Summary con.) ™ Social factors explored include loss of social standing and the accompanying loss of the expatriate lifestyle. = Family readjustment is also. important. = Aspecific aspect is the effect of the international assignment on the spouse/partner's career, such as being re-employed and having international experience recognized. (cont) ones ogee ae “Chapter Summary ¢conr.) = Multinational responses to repatriates’ concerns focused on re-entry procedures. How repatriation affect staff availability Whether companies. are measuring and obtaining a return on investment through intemational assignments, and The contribution of repatriates to knowledge transfer, and Designing effective repatriation programs, including the use of mentors. (oont) ones megane Aa “ Chapter Summary ¢conr.) 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. Popaecby Marat Anata ast =Thank You So Auch + “Be not afraid of growing slowly; be afraid only of standing still” * It is better learn late than never. + | can is 100 times more important than IQ repr by Muar Abu Bs, et roy, a 5,0