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Expatriate Failure and The Role of Expatriate Training

Expatriates are citizens working abroad for multinational companies. Expatriate failure, where employees prematurely return home, costs companies $2-2.5 million due to lost productivity, reputation damage, and relocation expenses. To minimize failure rates, companies provide cultural awareness training, language lessons, preliminary visits, and practical assistance to help expatriates adapt to their new environments.

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Dinesh Rv
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1K views11 pages

Expatriate Failure and The Role of Expatriate Training

Expatriates are citizens working abroad for multinational companies. Expatriate failure, where employees prematurely return home, costs companies $2-2.5 million due to lost productivity, reputation damage, and relocation expenses. To minimize failure rates, companies provide cultural awareness training, language lessons, preliminary visits, and practical assistance to help expatriates adapt to their new environments.

Uploaded by

Dinesh Rv
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Expatriates are the citizens of one country who are working and have subsidiaries in foreign countries.

Expatriates are sent to a foreign country by MNCs with the intent to control their operations to provide technical and administrative services.

A prominent issue in international staffing literature is expatriate failure- the premature return of an expatriate manager to his or her country. The total financial costs associated with premature repatriation are estimated to be between $2to $2.5 million. Expatriate failure are high and involve both direct and indirect elements.

Direct Costs Salary

Indirect Costs Early return can be costly for MNCs w.r.t good will and reputation Damaging relations with the host country government and other local organizations and customers

Training costs

Travelling costs Relocation expenses

Loss of market share Lost business opportunities

Training aims to improve employees current work skills and behavior to compete successfully in a global market. Due to Increasing changing business world and international competition. To minimize culture shock and maximize the expatriate effectiveness and efficiency while working with different culture.

Cultural Awareness Preliminary Visits Language Training Practical Assistance

Cultural awareness training program can be extremely beneficial as it seeks to foster an appreciation of the host countrys culture so that expatriates can behave accordingly or at least develop appropriate coping patterns. The components of cultural awareness programs vary according to country of assignment, duration, purpose of the transfer and provider of such programs. Cross cultural training assists in managing diversity.

A well planned overseas for the candidate and spouse provides a preview that allows them to assess their suitability for and interest in the assignment. Due to preliminary visits less than 10% failure rate cited for most of Japan MNCs. These visits conducted over a one-year period where expatriates employees are taught about the culture, customs, and business techniques of the host country.

Language training is a seemingly obvious, desirable component of a pre-departure program. The ability to speak a foreign language can improve the expatriates effectiveness and negotiating ability.

Practical assistance makes an important contribution toward the adaptation of the expatriate and his or her family to their new environment. E.g. Finding suitable accommodation and schools and further orientation programs and language training

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