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By Russell Salton
Repat's reality could be summed up by "great assignment, great company, great career" or, alternatively, "I'm getting my resume written, consider me gone" depending on the success of the assignment and, more importantly, how the repatriation to home location is managed.
In scenario one, the assignee received clear direction and guidelines for the assignment, home office kept him or her in the loop on a regular basis throughout, and upon return there was a clear debriefing during which HR had determined the next position, where the returning expat could use their expanded skills and therefore be valued.
In scenario two, the assignee did not receive clearly defined expectations regarding the assignment, nor ongoing communication, from the home location while on assignment. Added to that, upon return, there was no clearly defined role for the returning expat. Unfortunately, such scenarios are all too common. Successful repatriations begin with sound planning prior to the assignment.
The GMAC Global Relocation Services (GRS) Global Relocation Trends Survey for 2002 shows turnover of returning assignees at 44 percent within two years of repatriation. Over the 10 years we've been conducting this survey with multinational corporations, expatriate turnover has ranged between 10% and 22% per year. Although the percentage of respondents who didn't know assignee turnover rates declined from the 49% figure in the 2001 survey to 39% in 2002, we consider the current figure to be a source of concern. It indicates a lack of follow-up with repatriated employees and it may have a negative effect on the willingness of candidates to accept assignments at those companies we surveyed, in the future.
At GMAC GRS we are fortunate in that many of our personnel - both management and consultants - have themselves, experienced international assignments. I, myself, as a Scottish expatriate, have settled in many locations around the world. This inside knowledge gives us an edge in helping our clients manage assignee populations and their assignments.
Assignment Duration - Short and Simple
Practically speaking, it's obvious that assignment length is driven by the reason for the assignment. Sometimes it's really short term, maybe one to six months to fill an immediate need with a particular skill set. The expatriate goes without any family members, may live in a rented apartment or a hotel, and returns to resume their regular position at home. Cross-cultural training is less important, and there are no homecoming expectations to manage.
In another situation, you might send a person from home office for a short time because their particular skills don't exist in that location, and the assignment is to develop such skills in a local employee. The need and the result are both very clear. Possibly there's another element to the assignment, perhaps it's a developmental experience for the assignee, giving him or her a brief opportunity to learn how to manage in a different culture and environment. Many multinational companies require that anyone aspiring to senior management must work overseas to develop a more global skill set and adapt to new situations. In general, these types of assignment are fairly finite; everyone's expectations and objectives are defined from the very outset.
Short term assignments, are often designed as a career enhancement to demonstrate, or further enhance, the skills of flexibility, adaptability, and problem-solving capabilities, in a very different culture and environment. For the company this situation involves making sure the assignee finds the assignment attractive for the short term, minimizing interruptions to lifestyle. The company provides an incentive, usually financial, to compensate for the disruption. The length of time away is short enough and this will translate into few if any changes in the home office environment upon return. Therefore a smooth transition is made back into the former environment. The assignment is successful because expectations are apparent from the beginning, and objectives are accomplished.
The Major Differences between Long-term and Short-term Assignments
However, the situation for longer-term assignments, which we see frequently at GMAC GRS, is obviously more complex and therefore, objectives and expectations must be much more clearly evaluated and defined. Often insufficient thought is given to the reason for an assignment and it is defined by duration rather than in terms of what is to be achieved. Unfortunately, having set a time limit also sets an expectation so, at the end of that time, the assignee and the company expect the assignment to finish, whether the objectives have been achieved or not.
When determining the length of an assignment, the manager should conduct an in-depth analysis of the job to be accomplished before the assignee leaves the home location. This assists in setting clear expectations for both the company and the assignee. It also allows the assignee and partner to set family expectations and assess issues such as children's schooling, a spouse's career put on hold, and so forth, and for the assignee, to plan much more effectively in terms of personal and professional objectives.
A successful assignment for both the assignee and the company, should not be open-ended, or at least not simply defined by its duration. It is vital to identify its purpose, what it will take to achieve that purpose, develop critical milestones and timeline, and then evaluate against the defined objectives.
If you consider that the average yearly cost of an overseas assignment is two/three hundred thousand dollars per year, it's very inefficient and costly for any company if the purpose and objective of the assignment is nebulous. If the assignment is not successful, and the return to home location is not successful, then the company is faced with the added cost of potentially losing a valuable resource and all of the knowledge base and years of investment in training, learning, and development.
Setting Expectations
OK, so now you're thinking, cut to the chase: where's the repatriation in all this? But this lead-in is important because, even if a company has not followed the ideal assignment preparation, it's not too late to set expectations both for the assignment and for afterwards, even if the assignment has begun.
While on assignment, the objectives and milestones should be reviewed on a regular basis, perhaps quarterly, and review accomplishments and agree upon what yet has to be accomplished. Evaluating expectations for the rest of the assignment can be motivating and challenging, and evidence that the assignment is valued by the home office. At this point it's possible to set a reasonable timeframe for the remainder of the assignment, and both management and the assignee will benefit from this dialogue.
Expectations really do make or break the entire assignment and repatriation cycle. Our role at GMAC GRS is sometimes damage control, which is unfortunate. Anyone who is on assignment should have at least an idea of what type of position they will return to fill. It should not, and generally cannot, be set in stone. Gaining new competencies may open up opportunities and the assignee may not wish to follow initial career plans made at home before the assignment began, so a certain amount of ambiguity is acceptable.
Another very important element in a successful repatriation, is assigning a mentor at the home location, who keeps an eye out for the assignee's interests back home, managing assignee expectations of the result of the assignment, and ensuring the assignee continues to connect with the home office during the assignment. In today's fast-paced corporate environment it is truly unrealistic to expect that there will be no adjustments. Companies change: takeovers, mergers, acquisitions, all result in unanticipated changes, and they're simply part of business. But if the assignee feels forgotten and worries about lack of exposure at home, that uncertainty can result in unnecessary tension and negativity.
Many companies used to make it mandatory to visit home office once a year whilst on assignment. However, communication is more efficient these days, and many of our clients see the importance of senior managers getting out into the field. This sense of more movement from the home base is important not only for assignees to feel connected, it also enables management to experience, first hand, what is happening in another country location.
Remember Company Objectives
As Gill Aldred, one of my colleagues, who is our director for global HR consulting, points out, there is an opportunity for HR to appraise the entire assignment and orchestrate a review based on issues vital to the company. For example a company cost-cutting drive could allow HR to evaluate assignment management in order to better manage costs. By partnering with different business units and gaining data about specific needs, HR can assess requirements and formulate a plan for using particular skills being gained by an expat. For this to be successful, HR needs to have credibility within the company, but taking advantage of such situations enables HR to become more strategic and relevant to achieving company goals.
In the last year of an assignment, repatriation and succession plans should be firming up. The ideal for a midsized company is to have at least annual reviews of the total assignment picture, of all assignees, develop plans for short term needs, create scenarios and options for new assignments, select likely successors in areas where the need for the assignment will continue, as well as establish a potential career path for assignees. Obviously there's a domino effect to consider too, as expatriates are replaced by other assignees or by local personnel, thereby lowering the expatriate population.
Promotion was once a relatively straightforward upward path. Today that's not the case; there are no clear tiers. Progress happens by developing a range of skills and broadening experience. Going overseas ties in well with that progress. Assignees should gain a clear understanding of where they stand in the big picture. One of the most frequently voiced complaint assignees make is feeling ignored and not having their new skills utilized upon return. An assignment is not necessarily a short cut to senior management: it's an element in progression.
By firming up plans in the last year, you will bring the assignee back with a fairly well developed sense of what their next step is going to be, and he or she will return with the right attitude. Returning assignees leave companies for several clearly defined reasons: they had more responsibility overseas and at home they feel confined; they find themselves in a temporary role for an undefined period; there's no sense of direction to their career, or they perceive, rightly or wrongly, that their new skill set is being ignored. Each of these situations is avoidable.
Train your managers to manage expatriates. Today talent is very portable, and it's much easier for people to move. People at home office may slowly progress, and don't really notice how gradually change happens, and they accommodate to the situation. People who've left and returned see things afresh and view the company with perhaps a new and different perspective than those who have remained in the home location. It requires effective management to maintain enthusiasm. Expatriates are likely to be more impatient with situations that people at home have become reconciled to and, because so many GMAC GRS people have been expats ourselves, we are really good at defining these types of problems and solving them.
The Challenges of Repatriation
Gill Aldred in her global HR consulting position has seen how very important HR's role is for a smooth process. If HR can attach value to the next step after an assignment and gain company commitment to managing repatriation more effectively, then repatriation training, family issues, and so forth. can be addressed. HR needs to have a clear idea of how repatriation works and anticipate the questions repats will ask. If a repat had particular benefits during assignment that suddenly end upon return there's an understandable feeling of discontent. However, if HR gets the opportunity to explain the benefit plan beforehand, then the repat isn't going to feel as though they've undergone a pay cut. Providing support for home purchase, helping a spouse in career-hunting, offering financial and tax planning assistance to ensure there are no nasty tax surprises, are major benefits a company can provide that will positively impact a repat's attitude.
Arranging group repatriation sessions for employees and spouses can help in recognizing and addressing issues. Including those recently returned plus former expatriates, can provide participants the opportunity to learn from each other, while establishing a support network.
The ultimate goal for any multinational company wishing to deepen its knowledge and global expertise should be to retain valued personnel upon repatriation, thereby gaining long term benefit for the organization from the enhanced experience and skills that a global assignment can offer.
Family Ramifications
An interesting element of repatriation often overlooked, is disengagement from the host location. Advance warning is essential since it takes three to four months to exit successfully. The assignee and family have to separate from what is now considered "home," leaving schools, friends, social circle, taking trips to visit special places, and so on. In addition, for the partner there's a career path to determine back home, networking, and reworking a resume, and making such decisions takes time.
The family dynamic is important. Any life change involving a change of place automatically is an opportunity for people to react strongly, and stress exaggerates any problems that already exist.
Controlling Potential Problems
Expect that employee and family will experience re-entry shock. The home country itself may have changed in their absence, not to mention hometown, friends, customs and company, and getting reacquainted can be hard. Like any honeymoon phase, there's a let-down feeling when the initial excitement of the return is over, and withdrawal, pain, and anger are often felt.
Since many repats say they miss the cultural aspects of living abroad, HR should be prepared for the fact that many repats see a domestic position as much less exciting and challenging than an international situation, and should ensure that an international element is included in the new job. HR should provide pre-return guidance which can start soon after the move back is discussed. Issues can be addressed as they arise, and HR can develop strategies to ensure a smoother repatriation and transition into the home environment. Having had a mentor throughout the assignment can pay dividends during repatriation. The mentor's updates on life back home will help with the changeover, as well as assist the expat to settle into the new position.
By carefully planning the purpose, objectives, and expectations of an assignment, evaluating the accomplishments and achievements whilst on assignment, and carefully planning for the repatriation, both the company and the assignment will have achieved both corporate goals and a very high level satisfaction.
In receiving repatriation services and home location support, the repatriate and the family can settle down happily and continue to work for the company in which they, too, have made an investment.
Russell Salton, himself a Scottish expatriate who has settled in many locations around the world, is Director, International Services, at GMAC GRS. Gaining his degree in Psychology at Stirling University, Scotland, Russell was based in Saudi Arabia for five years, and spent a further five years in the Middle East with the Bahrain Petroleum Company. He has also worked in the Netherlands and Belgium for RPI Van Leer, an international packaging company, and Baxter, the international health services company. In 1993 he joined an investment company in London where he headed up the compensation and benefits function and managed an expatriate administration team for a workforce of 150 expatriates based in over thirty countries. Russell last worked in HR with the United Nations based in Vienna, Austria.
Russell, who started his career with GMAC GRS in the EMEA regional office in London, is currently on a long-term assignment as Director, International Services for the GMAC GRS Americas center in San Ramon, California. A Fellow of the UK's Chartered Institute of Personnel and Development, Russell also holds an MBA from the University of Warwick. His more than twenty years experience of expatriate management and international human resources makes Russell uniquely qualified in the personal challenges associated with global relocation and assignment management. Russell can be reached at russell_salton@gmachs.com.