23210062-IHRM-Repatriation

INTERNATIONAL HUMAN RESOURCE MANAGEMENT Repatriation June 11, 2008 1

Repatriation  Repatriation may be defined as the activity of bringing an expatriate back to th e home country  Repatriation is the final step in the expatriation process (recru itment & selection  predeparture training  foreign assignment  repatriation or reas signment)  Repatriation is important because with it are associated a number of s evere challenges for the expatriate which may significantly determine his or her performance prior to the return to the home country, and which hinder the expat riate’s reintegration due to “readjustment problems” or “reverse culture shock (reentry shock)” after return June 11, 2008 2

Phase-wise Perspective of Repatriation Preparation Physical Relocation Repatriation Process Transition Readjustment June 11, 2008 3

Phases of the Repatriation Process (1)  Preparation – Provision of information to the expatriate to facilitate the return to the home country. Example: Checklist of the things to do in the host country prior to departure (closing accounts, payment of bills etc.)  Physical Relocation – Includes activities such as removing personal effects, breaking ties with colle agues and friends and traveling to the home country. Help to the expatriate and his or her family is usually provided by relocation consultants or firms. Compre hensive and personalized relocation assistance serves to reduce anxiety, stress, uncertainty and disruption experienced by the expatriate and his or her family June 11, 2008 4

Phases of the Repatriation Process (2)  Transition – Phase in which the expatriate and his or her family readjust to their return to the home country. Some companies hire relocation consults to assist i n this phase also. Typical activities include acquiring temporary accommodation, making arrangements for housing and schooling, performing necessary administrat ive tasks (e.g. renewing driver’s license, applying for medical insurance, opening bank accounts)  Readjustment – This phase involves coping with reverse culture sho ck and the expatriate’s career demands on the organization June 11, 2008 5

Expatriate Problems With Repatriation (Career Anxiety)  The effect of an international assignment on an expatriate’s career path are major concerns for that individual. Usually, an international assignment is accepted because of its anticipated career benefits  Anxiety may arise if an expatriate fe els that his or her career advancement opportunities are not commensurate with t he sacrifices made by the expatriate and his or her family as a consequence of a cceptance of the assignment  Anxiety over the reentry position in the organizatio n may occur long before repatriation June 11, 2008 6

Expatriate Problems With Repatriation (Possible Reasons for Career Anxiety)  Period of absence from the home country has caused loss of visibility, isolation and feeling of being forgotten for the expatriate, especially if he or she is b ased in a subsidiary unit with lots or independence and comparatively little con tact with the organization’s headquarters  Worry over inadequate planning by the or ganization and that the expatriate will be given a mediocre or makeshift job  Wor ry about restructuring and/or downsizing measures underway in an organization  La ck of a guaranteed job upon return to the parent organization Worry that the pos ition given or return corresponds to a “demotion” June 11, 2008 7

Expatriate Problems With Repatriation (Career Anxiety)  The declining tendency of organizations to offer job guarantees to expatriates a fter their return from a foreign assignment may have adverse consequences in ter ms of:     Staff Availability Perception of Foreign Assignments (High-Risk Career Strategy) Heightened Career Anxiety Commitment to the Organization and Productivity while on the Foreign Assignment June 11, 2008 8

Expatriate Problems With Repatriation (Devaluation of the Intern. Experience)  Expatriates are often confronted with being offered reentry positions that appea r unconnected with their international experience  Sometimes returning expatriate s are offered positions that are less challenging and with reduced responsibilit y and status than they had prior to going on their foreign assignment (negative career progression), causing both a demotivation (on the returning expatriate) a nd deterrence (on potential expatriates) effect  Devaluation of international exp erience and repatriate turnover tend to be positively correlated June 11, 2008 9

Expatriate Problems With Repatriation (Loss of Status and Pay (1))  International assignments often are associated with considerable status and pres tige for an expatriate, for e.g. in terms of autonomy, more responsibility and a prominent role in the local community (kingpin)  Returning to the parent organiz ation usually results in the loss of autonomy and status Over there, you are the big fish in a small pond. Back home, you return to being the small fish in a big pond! June 11, 2008 10

Expatriate Problems With Repatriation (Loss of Status and Pay (2))  International assignments often bring with them several compensatory benefits (e xpatriate premiums) and additional savings, which have to be forgone when an exp atriate returns to the home country  After returning from an international assign ment, an expatriate may no longer be able to purchase a home similar to the one he or she may have sold prior to going on the international assignment. Also, th e standard of housing in the foreign assignment location may have been better th an on return to the home country June 11, 2008 11

Expatriate Problems With Repatriation (Social Considerations (1))  If an expatriate served in a foreign assignment in a highprofile position where he or she enjoyed considerable and sustained interaction with the social, econom ic and political elites of the host country, a feeling of disappointment may eme rge after return to the home country. This feeling may be excacerbated by the lo ss of the expatriate compensation premium and other benefits  In addition to the expatriate’s social readjustment problems, the social readjustment problems of his or her accompanying family members must also be taken into consideration as wel l June 11, 2008 12

Expatriate Problems With Repatriation (Social Considerations (2))  Reestablishment of social networks in the home country may be difficult if, for e.g., the expatriate and family are repatriated to another locality in the home country. It may be that friends have moved away while the expatriate was on assi gnment and that other friends may have joined the workforce and have no time for social activities  Children may encounter social readjustment problems in school because they are not update on latest trends, and may have problems adjusting t o their home country educational system June 11, 2008 13

Expatriate Problems With Repatriation (Effect on Partner’s Career)  Partners of expatriates may encounter problems in the home country when they see k to enter or reenter the workforce. Consequently, their self-esteem may decline , hindering their readjustment, particularly if they were employed prior to movi ng with the expatriate to the foreign assignment location  Given the increase in the number of dual-career couples, the career problems of the expatriate’s spouse need to be taken more into consideration June 11, 2008 14

Expatriate Problems With Repatriation (Case Study) International Human Resource Management Managing People in a Multinational Conte xt Peter J. Dowling, Denice E. Welch, Randall S. Schuler 3rd. Edition Pages 219 - 2 20 June 11, 2008 15

Expatriate Problems With Repatriation (Organizational Responses (1))  Recent research indicates that the majority of organizations have no formal repa triation programme to help expatriates readjust on return to the home country  On ly a small proportion of the repatriation programmes have consideration for the spouse  Typical reasons given by organizations for not having a repatriation prog ramme include:  Lack of the requisite expertise  Programme cost  Lack of a perceive d need by top management June 11, 2008 16

Expatriate Problems With Repatriation (Organizational Responses (2))  Some organizations provide a form of repatriation assistance in the form of a “men tor”  The mentor is usually a superior to the expatriate and provides assistance in the form of information, by maintaining regular contact with the expatriate, an d by taking the expatriates interests regarding promotion and job placement on r eturn etc. into account  Research indicates that the likelihood of an organizatio n using mentors depends on the size of the expatriate workforce, the organizatio nal unit responsible for handling expatriates and the nationality of the organiz ation June 11, 2008 17