Category Archives: Expatriates

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10 Rules of the Road for Your Expatriate Program – Part II

Posted on October 19, 2009 by | 7 comments

bio_400x400 Author:
Chuck Csizmar – CMC Compensation Group

Last week I posted the first five of ten “Rules of the Road” for managing your expatriate program.  I hope you enjoyed reading them.  In this post, I’ve included the five remaining rules.  Enjoy!

Rule #6: Always have a Backup Candidate
It is very important to avoid a scenario where management believes that only one person is capable of handling the assignment.  If all your plans are dependent upon one candidate, and your choice discovers this (they usually do), the assignment from that point will likely become more contentious, problematic, internally disruptive and ultimately more expensive.  You will have lost leverage when trying to apply Company policies, demands for exceptional treatment will increase, costs will rise as a result and the likelihood of equity issues with other employees will increase.

Having a second choice will enable you to more easily finalize an equitable package of terms and conditions, test the candidates’ genuine interest in the overseas assignment and lower inflated egos down to earth.

Rule #7: Do Not Play “Let’s Make a Deal”
Everyone tends to lose on this slippery slope.  The expatriate community is a small group that will eventually learn of any special deals someone received that others did not.  While the expatriate policy document should provide a “safety valve” for approved discretionary exceptions covering extraordinary circumstances, be mindful of creating precedents where the sole reason is to placate an employee (or their spouse).  This problem can be a major dissatisfier for the rest of your community.  Explore cost sharing and trade-offs with the expatriate to mitigate the perception of inequitable treatment.

Certain employees, especially those with a sales background or like temperament, may view many aspects of the assignment terms and conditions as negotiable, simply because it is in their nature to question or challenge what they consider is the Company’s “initial offer”.

A word of caution:  if the employee considers the international assignment less as a wonderful career opportunity and more as a “favor” to the Company, the warning signs should be posted that this might not be a good match.

Rule #8: Have a “Hand-Holder” in Place
Another key to a successful assignment is to provide a ‘go-to” person in the host country for the myriad questions that will crop up as soon as the assignee arrives.  Set up a local contact point for host country issues, expatriate experiences and administrative fulfillment of the assignment terms.  Insist that the assignee utilize this person, not their manager, co-workers or even well-intentioned HR people unfamiliar with the expatriate program.  This go-to person should have the authority to make decisions, to “handle” whatever the question might be.

While this sounds like an easy step do not assume that anyone would automatically take this task to heart.  Left to their own devices, host country employees often find it difficult to invest the time to help assignees understand local business conditions and culture.  Thus you need to make it someone’s responsibility.

Likewise there should be a contact person in the home country as well, a designated individual prepared to handle policy interpretations, provide advice on navigating procedures and assuming responsibility for the home administration of the assignment terms.

Rule #9: Do Not Forget That They’re out There
A successful assignment requires constant attention from both the home and host country contacts.  Communication should be frequent, as should the “check-up” calls to gauge the assignee’s temperament.  For example, does the assignee understand the COLA calculations, have any payroll or currency exchange issues arisen, is the family acclimating well, are there issues the assignee would like to discuss?  A key source of dissatisfaction for assignees and their families is a feeling of being “out in the provinces” and therefore out of touch with what is happening back at the office they have left.  Make every effort to ensure that they do not feel marginalized, taken for granted or forgotten.

Make sure the assignee has a Mentor (as compared to a hand holder) back in the home country as well, a Senior Management-level individual charged with representing the assignee’s career interests during the assignment.  This person should schedule periodic career discussions with the assignee.

Rule #10: Have an Exit Strategy
All too frequently companies are at a loss as to what to do with expatriates who have successfully completed their assignments.  It is not uncommon for assignees to leave the Company upon their return from overseas or within the following year, because either no suitable position was available in the home country or what was available was a diminished or less visible role.

After incurring the huge expense for an employee to develop deeper and broader competencies on the international stage, it is a wise business practice to pay close attention as to how best to utilize that increasingly marketable (and therefore valuable) talent when the assignment ends.  Without due care and planning the career cycle of an assignee is left as an afterthought, one that usually crops up late in the assignment;  meanwhile the assignee has been worried (and thus distracted) for a much longer period of time.

While there are no guarantees that future positions will be available back home for employees presently working overseas, the international assignment letter should at least state that the Company will attempt to secure a “mutually agreeable position of similar stature” upon completion of the assignment.  It is in the best interest of the Company and the assignee to carefully plan for a successful repatriation.

Follow though
Well, that’s my list of ten rules.  The road ahead has curves, dips and more than its share of bumps and potholes.  However, if you manage to keep these sign posts in mind (commit them to memory, post them on the wall, send and resend them to managers), the experience does not have to be an endurance course for all concerned.

You will need to keep at it though (persistence is its own reward), because there is no pill or “Easy Button” that will magically ease the journey.  There is no cure for the realities that expatriate assignments will always be costly, procedurally complex and a personal as well as professional risk for those involved.  But by adhering to your own “rules of the road” your expatriate program can reap significant benefits: lower assignment costs, business objectives achieved, satisfied employees and host management, retained and developed talent and ultimately greater overall business success.  It can be done.

More rules?
Do you have rule that I did not include in my top ten?  Please, leave a comment and share your insights with the community.

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Posted in Compensation, Expatriates, Global HR Expertise, Global Mobility Services, International Expertise, Professional Development, Repatriation

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Expats Moving Overseas – Ten Tips to Transition to a New Culture – Part 1

Posted on October 14, 2009 by | 4 comments

Heather MarkelAuthor:
Heather Markel, Culture Transition Coaching

Editor’s Note:   We are especially pleased to welcome a new Guest Author, Heather Markel, who has shared with us her ten tips for a successful  expatriate cultural transition.


The complexities of moving to a new culture are immense.  Typically, expatriate training programs include a cross-cultural component.  However, I believe there are some areas which may be overlooked as the expatriate and possible family members prepare to move overseas.

With that in mind, I’d like to offer ten areas to focus on when transitioning to a new culture.  This list is by no means exhaustive.  Rather, it’s intended to help with the design of transition assistance programs.  The first five areas are listed below, and the remaining five will be out in my next post, so keep a lookout for it!

1. Language – Conversation Topics
It goes without saying that when moving to a different country, it’s necessary for both the expatriate, and their family, to learn the local language. Routine activities would otherwise become overwhelming. (Note: Even when moving to another country that speaks the same language as at home, it can still feel like learning a new language.)

Beyond the basic language skills, though, there should be training on conversation topics that might be considered taboo, or that are a normal part of the culture.   Not knowing these topics could lead to the expatriate and their family feeling left out.   For example, history may be a topic to tread lightly on in Australia, whereas a fascinating topic for someone in Europe. Other topics to examine are politics, art, and food, as some examples.

2. Food – What You’ll Find and What You’ll Eat
It’s essential to understand two aspects of food – what you will find, and what you will not. Most of us have our “comfort foods”.   Thinking of several different cultures, comfort foods could be dishes such as Thanksgiving turkey, fish-and-chips, spaghetti Bolognese, tacos, Vegemite, or kimchi.  If you’re moving someplace where your favorite foods aren’t available, outside of an expensive import, the inability to find them during a challenging period could be disappointing for an expatriate.   Especially if they are spending a traditional holiday away from friends and family, being able to find typical holiday foods can make the difference between a bout of depression and creating a new tradition.

Conversely, there will be new foods to try.   In many countries you’ll find that intestines, brains, and kidneys are staple foods.   It’s also possible that an expatriate will be invited to someone’s home and suddenly be in the delicate position of eating strange foods to avoid insulting their host.  Therefore, it’s critical to prepare for expatriates to both sample new foods, and to help them figure out where they can find comfort foods, if available.

3. Meeting New Friends, and Coping With Missing the Old Ones
One of the toughest parts of any expatriate assignment is making new friends, and starting a new social network.   While doing so, it’s easy to become disappointed at how different everyone is, and to miss the closeness of former friends.   This can lead to what I call “the social media trap”, where every free moment is spent using Facebook, Skype, etc. to stay in close contact with everyone back home.   However, this strategy will make it impossible for the expatriate to succeed at making new local friends.

If expats aren’t prepared for this difficult task, they can easily isolate themselves, and then become lonely and disillusioned with their overseas experience.

4. Getting Familiar with a New City
There are several components that go into familiarity with a new city.

  • Location – Where is the town center? Where is the office in relation to home?
  • Transportation – Is there a subway and bus system, are their taxis? If not, what alternatives exist?
  • Safety – What areas of the city might be dangerous at night, or even during the daytime?
  • Essentials – Being able to locate the nearest supermarket, laundry, and shoe-repair shops. Also, medical doctor and dentist referrals can be very helpful as someone gets to know a new city.

5. Formality at the Office
One of the most difficult subtleties between languages and cultures is the nature of addressing peers and managers.   Depending where in the world an expatriate will be working, challenges could range from knowing when to use first versus last names, to understanding when to use formal versus informal verb conjugation.  In some countries this could be about handshakes versus bowing or other customs.  These challenges are often further complicated when addressing a female superior, where the challenge becomes figuring out whether to use the equivalent of “Ms” or “Mrs”.

It’s essential that these subtle behaviors and forms of address be understood for an expat to be accepted at the workplace. If they do not, they may become embarrassed in front of fellow employees and potential clients.

Summary
This list is just a start.  In my next post, I will share five more tips with you.   In the meantime, let me know what you think by leaving a comment!

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Posted in Cross Cultural Insights, Expatriates, Global Mobility Services, Professional Development, Relocation

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10 Rules of the Road for Your Expatriate Program: Part I

Posted on October 9, 2009 by | 7 comments

bio_400x400 Author:
Chuck Csizmar – CMC Compensation Group

Even a properly handled international  assignment is a complex beast; the procedural morass that confuses as well as frustrates, the emotional stress placed on the assignee and family, the myriad details that could go wrong (and often do), and dealing with career risks inherent with being “out there”.  And, to top things off, the entire enterprise is extremely expensive!

Even in today’s economy, though, the need to send employees overseas remains strong, and for good reasons – skill development, setting up a new business venture, organizing an acquisition, transferring knowledge through training and development, filling a skills gap, etc.  It is more important than ever to ensure a successful assignment, since failure is very costly and potentially damaging to the business.

To help you manage your assignments successfully, I’ve put together a list of ten “rules of the road” to keep your expatriate program running smoothly.  The first five rules follow below.  Next week, I will post the other five (so watch for them!).

Rule #1 – Have a Policy and Use It
It is tempting for companies new to the international assignment experience to delay the development of written policies and procedures.  With a thought of “we only have one or two people overseas” they deal one-on-one with individual employee situations and make decisions on the spur of the moment that affect only that one assignee.  Such a practice ignores the advantage of standardized practice, and sows the seeds for future problems.

Documentation establishes standard practice, provides a managerial consistency that deflects exception requests and restricts (but does not eliminate) the “everything is negotiable” mentality.  No matter the size of your expatriate program, making ad-hoc or one-off special arrangements without broader consideration of other existing or future expatriates is always a recipe for trouble.  While attempting to placate an assignee, keep an eye that your decision does not aggravate others by creating a perceived atmosphere of special treatment.

Establishing and requiring adherence to an international assignment policy will also help the company lessen the impact of so-called “stealth expatriates”,  employees working in another country without being part of the formal mobility program.  Oftentimes, well intentioned managers with a get-it-done attitude often send people abroad without going through formal channels.  This casual approach to a complex issue usually results in a high rate of assignment failure, as well as additional complexities and the risk of costly penalties (i.e., compliance with tax and visa regulations).

Rule #2 – Require a Business Case to Justify the Expense
Your procedures should require that requesting managers be informed of all projected costs associated with an assignment before an approval will be considered.  Oftentimes a break down of these costs is buried among several budgetary line items, not readily evident to the casual observer.  An inexperienced manager is usually unaware of the true costs involved.  As a rule of thumb, an assignee with family will cost about 3 times salary per year, while an individual assignee would cost 2 times.  You should require the requesting manager to sign off on the expense projections – making their approval visible within the organization.

The business case should also demonstrate why an assignee is required (vs. a local employee).  What is the operational advantage for the business and how success would be measured?  Does the proposal show how the expense will ultimately deliver an appropriate ROI?  Soft answers such as “developing talent” and “global exposure” should rarely be included in the top tier of business justification, unless cost considerations have been relegated to a lower level of importance.

Rule #3 – Stick to Your Approval Chain of Command
Establish a clear hierarchy of who is required to approve both the assignment itself (not simply who supports the request) and the associated terms and conditions.   You should operate on the presumption that managers, especially those with a tendency to use “stealth expatriates”, should repeatedly be made aware of who this “gatekeeper” is and what the requirements are for approval.  A firm hand here will avoid repeated requests searching for someone to say “yes”, while providing an opportunity for the company to speak with one voice.

You should be cautious when dealing with demanding senior managers who support the request but in fact lack the authority to approve the assignment.  If not forced back to the Corporate Gatekeeper for adjudication and confirmation, these senior managers could potentially disrupt the process by their inadequate understanding of particulars, by confusing and aggravating the candidate (or family) with mixed messages and by agreeing to terms and conditions for which they are not authorized.

Note: Once an unauthorized  management representative commits assignment terms and conditions to an expatriate candidate, it will be difficult to correct any errors without compromising the initial goodwill established with that employee.

Rule #4 – Consider Non-Traditional Assignments
While the traditional expatriate assignment typically lasts from one to three years or more, evidence is growing that companies are increasingly using shorter assignments as a means to reduce costs, attract more candidates and reduce the failure rate.

Obviously, the shorter the assignment the lower the ultimate expense will be (taxes, allowances, gross ups, etc.).  However, shorter assignments are also more attractive to candidates who would otherwise have passed on being overseas for several years, usually for family or career reasons.  This opens up a new pool of potential candidates as well.

If the company’s goal can be defined in narrower terms (knowledge transfer, specific projects, filling a skill gap, etc.) a shorter assignment, or even a series of extended business trips might be a more reasonable strategy for the business case.

Rule #5 – Select Employees Who Will Become Good Ambassadors
Whatever the technical capabilities of the person you select for an overseas assignment it is critical that they (and their families) have the right persona for the role they will play as ad-hoc “ambassadors” for your company.  While capability of performing the assigned role is paramount, assignment failure often occurs when the assignee or members of their family are unable to adjust to living in a foreign environment.  Having a flexible nature, as well as at least a taste for adventure will go a long way in making everyone comfortable.

The assignee should live / reside as their local counterparts do, not as the expatriate is accustomed back home (style and size of house, neighborhood, distance to work, etc.).  Cultural sensitivities should be considered, so the assignee may “fit” in with like jobholders.  Your intent should not be to replace an expatriate’s home country style of living.  Working relationships sour quickly if an expatriate Manager or Director lives markedly better than the local Vice President.

Provide cultural orientations and if necessary language lessons for all family members.  Institutional differences (banking, medical care, driving, local bureaucracies, etc.) should be explained in advance.  Surprises should be minimized, as they are usually negative experiences.

Note: Simply because the locals speak English is not a reason to avoid properly preparing the expatriate for the overseas experience.

In Part II of this article, in my next post, I will discuss the remaining five rules of the road for an effective international assignment program.

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Avoiding Burnout in Global Field Service Travel

Posted on September 29, 2009 by | 4 comments

IMG_1602cropAuthor:
Alan Freeman – LOF International HR Solutions

The following question, recently posted to an online discussion group, caught my eye:

“Our international technical services business is booming.  Our Field Service Techs are getting burnt out spending 2-3 months away from home. How can I incentivize them to keep traveling? They already receive an attractive daily bonus for each day in travel.  Also, some of the new clients are in areas that are not very desirable.”

My dear old grandpa used to tell me, “Son, if you run your horses too hard and too long, especially over rocky ground, they’re going to fall in exhaustion or go lame.  No amount of extra oats will make any difference.”

So what’s the problem?

 

Notable drop-offs in productivity, poor morale, health problems and, ultimately, resignations (at least in normal economic times) go hand-in-glove with heavy travel-related burnout – especially international travel to “not very desirable areas”.  If high crime rates, existence of serious infectious diseases, lack of sanitation, political unrest or even outright violence are characteristic of those destinations, then the prospect of employees being harmed, kidnapped or killed becomes a significant concern as well.

An indirect, negative impact on morale and productivity also can stem from marital or family problems attributable to employees’ extended absence from their spouses, partners and families.  Heavy travel on the part of one parent puts additional stress on the stay-at-home partner to look after the children, elderly parents, pets, household maintenance, financial management, etc.  In our experience, Field Service employees often maintained their homes and vehicles themselves so the spouse had to hire outside providers to look after these issues while the employee was traveling.

Throwing money at employees won’t make them or their families less susceptible to burnout, but it could contribute to a company reputation for “slave driving” and failing to understand the human side of the travel sacrifice. This is not a desirable outcome for the company or the employee.

What might be useful?

 

A firm could consider providing extended paid leave, “R&R”, between trips. Take a lesson from oil & gas, engineering & construction and defense contracting firms and utilize the “rotational assignment” approach.  Simply put, for every x weeks or months the employee works on travel, he/she is eligible for y weeks or months off on paid leave at home or in a “nice” location at company expense.  For example, one of our clients provides services at a mining site in a developing country.  Their employees work 7 days a week for 3 months at a camp site and then are sent home for a month off with full pay.

I once worked on a project where, after the employee worked 1 month (single status) at a remote Middle Eastern camp site, the company would pay for the employee and family to rendezvous in a Western European city, all expenses paid up to a set maximum, for a week.  Expensive? Yes, certainly.  Did it “refresh the horses”, improve morale and productivity and build positive morale and attitude toward the company?  Absolutely!

Sometimes, depending upon the facts and circumstances, it’s possible to provide some form of relaxation in-country (health club memberships, a bit of time off to sight-see, company-paid recreation, etc.) during travel.  This is another way to give them a needed rest.

Another possibility would be to hire additional Field Service staff so more employees share the travel burden and thereby make it possible for each to spend a bit less time in the field.  Yes, in today’s economic environment of extreme cost control, adding to labor cost is not a popular idea in the CFO’s office.  But then, what about the cost of assignment refusal, turnover, reduced productivity, lost opportunity while employees miss work due to illness or injury, and inability to recruit high caliber talent, etc.?

We also must ask how challenging, especially dangerous, are the “not very desirable” areas?  Iraq? Afghanistan? Somalia?  A jungle infested with disease-bearing mosquitoes?  Make sure you provide appropriate pre-travel medical exams and immunizations, and adopt some of the safety and security practices companies used for longer-term international assignees in hardship and danger locations.  This includes local safety and security plans, well thought out and established emergency evacuation plans and ensuring that death and disability insurance benefits are not voided by “war risk waiver” clauses in the insurance contracts.  This latter issue can easily be addressed through contact riders but, if not addressed proactively, can lead to extensive financial pain for the employer, especially given laws pertaining to the “duty of reasonable care”.  Woe unto those companies that have not established the mechanisms to track their employees’ whereabouts and deal effectively and quickly with emergencies.  Check out Mariana’s posting for some tips on extreme hardship assignments.

Our friends at International SOS Assistance are about to publish a research paper on employers’ legal “duty of care” that our readers should find of interest.

Something the person who raised the question didn’t mention – but we will – are global requirements for work permits, visas and tax compliance.  Often, even those on relatively brief field support trips to other countries are deemed by local governments to be performing “productive work” in those countries.  This can, and often does, require a work permit.  A company is well advised to consult with appropriate immigration counsel to ensure that its employees have the proper clearance to carry out their duties in each country.  This is not about the amount of time the employee might spend working in country; it is all about what he/she will be doing while in country.

As to taxes, members of management have often heard about the so-called “183 day rule” and simplistically believe that so long as the employee works in a given country for less than 183 days, he/she will not be liable for local income or social insurance taxes in the assignment country.  This is not necessarily the case and depends upon a number of key factors.  We recommend reading our contributing editor Claudia Howe’s excellent commentary on this issue.

So, at the end of the day, how do we respond to the question of “How do we incentivize our staff to keep traveling”?  We’d say, give your horses rest, treat them with dignity, recognize that their families bear a burden too, and provide them with fresh oats.

Otherwise, my dear old grandfather just might come back to haunt you!

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Posted in Expatriate Taxation, Expatriates, Immigration

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How Do I Develop Expertise and Gain Employment in Global Mobility?

Posted on September 17, 2009 by | 5 comments

edit-Alan Biz Mug Shot 1Author:
Alan Freeman – LOF International HR Solutions

One of our readers recently asked, “I have been working in the HR field for the last few years and would like to break into the Expat Management/International Mobility field in Global HR.  What is the best way to gain experience that will make me stand out to an organization that is recruiting global mobility staff?”

First, thanks very much to the reader for posting the question.  We truly appreciate receiving input from and creating dialog with our colleagues.

To begin with a broad response to the question, please take a look at my June 25, 2009 entry, “How Can I Develop Global Human Resources Management Expertise?”.

Since the question focused specifically upon expatriate management / “Global Mobility”, some additional considerations include:

  • Become a member of ERC Worldwide, use their resources, attend their meetings and become involved with their local affiliate groups’ meetings as well.  You also should consider obtaining the GMS certification.  ERC also posts career opportunities on their web site and you should monitor those.
  • If you are based in Europe, or are in Europe frequently, consider becoming involved with EuRA.
  • If you are currently employed in an organization that has a international assignments / Global Mobility program, get to know the staff responsible for the program – especially those with managerial responsibilities.  Take them to lunch, ask their advice, learn what you can from them and, perhaps most importantly, volunteer to help them with their work.  In today’s environment, they’re likely to be rather overworked and would welcome some help!
  • Seek employment in corporations with established international assignment / Global Mobility programs, network with the global mobility management staff in those companies, keep an eye on job postings on their web sites.  ERC’s members roster, their job postings board and involvement with the meetings mentioned above are ways to identify target companies and, possibly, specific opportunities.
  • Do the same as above with the various global mobility service providers such as Bristol Global Mobility, Cartus, Prudential, SIRVA, MI Group, AIReS, Crown, Primacy, Lexicon, Plus Relocation, Weichert, Altair, Brookfield, etc.  There are many more and you can find them via the ERC resources listings.  Please keep in mind, however, that in the current economic climate, the overall relocation business has slowed significantly so hiring in the industry has as well.
  • Seek out and participate in global mobility meeting groups in your area. For example, in Northern California, the Western International Personnel Association (WIPA) and Bay Area Professionals in Relocation Management (BAPRM) have a strong orientation toward global mobility.  There are many other such meeting groups around the country.  Global HR News hosts conferences in many locations across the US and abroad.
  • Consider joining the Forum for Expatriate Management, and the many LinkedIn groups that focus upon Global Mobility.  Track the discussions, and tap into the information and leads that appear in these forums.
  • Keep an eye on job listings at Blue Sky and Signature Source, make contact with the principals in those firms to “get on their radars”.  They are search firms that specialize in Global Mobility.
  • Take advantage of specific classes, seminars and webinars.  For example, ORC Worldwide, AIRINC and Mercer – the top three providers of international assignment package data – offer regular training programs. Also, please sign up for the remaining five sessions of the IOR Global Services webinar series that started on Sep 15 (I’m leading the Sep 29 session).
  • Read, read, read – there is a great wealth of books, periodicals, white papers, research reports, etc. that has become available over the years. You’ll find items on Amazon.com, at the SHRM bookstore, at the World at Work bookstore and within the ERC website.

So to summarize, learn as much as possible about international assignments / global mobility and network with people already working in the field.  The best way to learn, get on someone’s radar, and find out who is hiring, is to hang out with them!

Thanks again to our reader for her question. We ask others to also provide suggestions and guidance via comments on this post.

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Impact of Assignments to Remote Locations on Children’s Education

Posted on September 14, 2009 by | 3 comments

Photo Liz Perelstein (2) Author:
Liz Perelstein – School Choice International

As businesses expand more and more into developing markets, companies are often facing new challenges in finding appropriate schools for the children of their international assignees.  In some locations, schools haven’t caught up with demand for international education; in others, there simply might not be any international schooling options at all.  Now more than ever, local schools are an option, but you need to be well-prepared for such an approach to work.

Schooling is a Top Priority
Assignees often state that having access to good quality schools for their children is the most important factor in deciding to accept an assignment.  Parents are more uneasy than ever about relocating with children when international schools are not available.  By gaining some understanding of the local educational system and curriculum differences in countries where you send employees, you will be in a better position to create policies that provide children with access to reasonable education.

Consider these facts:
Some local schools in India consider handwriting so important that teachers may not consider content if handwriting falls short of expectations.

  1. A study by the University of New Hampshire indicates in many European countries, parental involvement is not permitted.
  2. So-called “International Schools” may not be truly international.  Instead, they may be targeted towards local children to help them acquire language and other skills to promote attendance at US universities and/or may exist for children whose parents do not want them to attend local schools.
  3. In some countries, schools “stream” students into tracks as early as 12 years old, and this could affect the ability to gain admission to universities in other countries.  Admissions decisions based on an “entry examination” or prerequisites make this a clear challenge for those who do not have the language or curriculum background.
  4. Religious education is a fundamental part of national curriculum in many countries, such as Ireland.  This may meet an unenthusiastic response from families not accustomed to such arrangements, or those that practice a different religion.  And, even if considered acceptable, students may not have the religious background to fit in.
  5. Special education is handled in varied ways throughout the world, from mainstream educational options in the United States, to China, where few schools have an open-minded approach, and few teachers are taught to teach children with learning or other disabilities.

Language is the main obstacle that many companies are aware of when evaluating local school choices, but integrating families into a local educational system where goals, philosophies and methods are so dissimilar requires a different type of preparation on the part of the family, and a more flexible policy on the part of the company.

Tips for Success:
Here is a short checklist which is useful to help companies and assignees examine educational options for any overseas assignment, as well as for their eventual return home:

  • Before moving a family, allow them time and means to review curriculum of the school in the host country, and discuss it with teachers back home.  Evaluating where a child may be ahead or behind enables parents and schools to develop programs that assist in entry as well as re-entry.
  • Recommend that families bring along books, course outlines and any other aids to maintaining academic skills required at home so that kids can keep abreast of knowledge required for repatriation.
  • Find out the exit requirements for schools in the home country before leaving.  These, in particular, will determine curriculum to continue studying while abroad.   Can these be satisfied on assignment, and if so, what kind of policy do you need to support these additional costs?
  • Decide what kinds of supplemental or alternative education your company will allow to reduce hardship for children whose families are sent on assignment, particularly at key grade levels.  These may include tutoring, on-line courses, summer school, home schooling or boarding schools.
  • If schooling is totally incompatible, is it possible for the employee or the family to repatriate either a year earlier or later, as appropriate to facilitate the transition?
  • Provide opportunity for students to become proficient in reading and writing as well as speaking of the new language well before the move; in fact, as soon as the move is announced is best.
  • Engage a professional who understands discrepancies in curriculum as well as culture to recommend individualized support so that students can be prepared before returning home.
  • Repatriation is always difficult for children, since even international schools teach different curriculum, have different course sequences, and offer different languages and promote different viewpoints when teaching history.   Children who have attended local schools in remote areas may be more significantly unprepared to attend school back home or enroll in university in their home country.  Be sure to pay careful attention to home country requirements before assignments begin.

Conclusion:
School choices for expatriate children are always challenging, and even more so in locations where the traditional choices are limited or non-existent.  Families who have overcome these obstacles and successfully educated their children in local schools find the rewards to be significant.  Children truly learn new languages, cultures and curricular subjects and enjoy an unprecedented window into the customs of a different country.  As schools are a microcosm of the cultures they inhabit, children raised in local schools abroad can be our true ambassadors in the global world of the next generation.

Providing support in the form of tutoring, on-line learning and language instruction is a key consideration companies should consider when developing policies to support your employees in remote locations.  Inviting parents to reframe their definition of education as learning rather than schooling is the key to promoting the right attitude for a successful assignment.

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Guidelines on Dangerous Assignments – When Your Employee is Risking His Life for the Company

Posted on September 8, 2009 by | 3 comments

mariblack3Author:
Mariana Villa da Costa – Littler  Mendelson

It is a big and dangerous world we live in today.  There are many “hotspots” around the world where the personal safety and security of staff can be in jeopardy unless the proper precautions are taken.  Expatriate employees assigned to high-risk locations are especially vulnerable.  Companies need to become familiar with the actual in-country conditions, work with security experts to do a risk assessment, and evaluate and update their assignment policies to minimize the risk to assignees and company alike.

What’s Dangerous?
Assignments may be considered dangerous in locations that have some of the following characteristics:

  • Countries where war, civil insurrection, or terrorism exists and presents physical harm or imminent danger to the health or well-being of an employee.
  • Widespread, uncontrolled violence or disease.
  • Lack of infrastructure (limited availability of basic goods and medications, for example).
  • Lack of family support services, such as schools, health care, etc.
  • Extreme physical conditions (sub-freezing temperatures, remote locations, etc.).

Companies often have a difficult time attracting and retaining people for these assignments, as the assignment is likely to be very stressful on the employee and family.  A proactive approach helps to address the problem.

Steps to Manage Extreme Hardship Assignments
There are several measures that can be taken by employers to address the unique challenges of extreme hardship assignments.  Here is a checklist to follow:

  1. Should the assignment include family members, or is an unaccompanied status required?
  2. Expatriate package should be reviewed to consider extra allowances and other benefits, as appropriate.  Some examples are:
    • Hardship Pay – Usually 10% to 25% of base salary, to compensate employees for extreme living conditions.
    • Danger Pay – Typically 15% to 25% of base salary, in addition to all other compensation.
    • Travel Benefits – Extra trips, or allowance to make trips for R&R (rest and relaxation) on a periodic basis, in a safe and secure location.
    • Assignment Letter – Update to include details on all extra benefits and explain the conditions the employee will find in the location.
  3. Safety and Personal Security precautions should be followed and training and information provided to each assignee (and family members), including:
    • Security Briefing and Training – Ensure every assignee is informed about the security risks in-country, knows how to address them, knows where to go in an emergency and whom to call (in the company, and perhaps outside security consultants as well).
    • Bodyguards (if required).
    • Secure Housing – Limitations on where assignees can live, to eliminate situations that are particularly risky.  Apartment complexes, gated communities or compounds many be appropriate.  Armed guards and security systems are typical.
    • Legal Representation Abroad
    • Kidnap/Emergency Response
    • Emergency Evacuation Procedures – Each assignee must understand the company’s procedure for evacuation, how it affects family members, etc., in the event of natural or man-made disaster, war or other catastrophe.
  4. Health issues are another important consideration.  Are there adequate medical facilities available in-country?  If not, what sort of arrangements can be made?  You also need to consider contagious diseases, insect-borne illnesses, HIV and other sexually-transmitted diseases, extreme pollution, blood supply, treatments for chronic illness, availability of prescription drugs, and applicability of health insurance.  There are health experts that specialize in assisting companies and families in health assessments, medical evacuations and similar challenges.Don’t forget the basics, such as up-to-date vaccinations!
  5. Other insurance (beyond health insurance) is often required.  Typical examples:
    • Life and Disability Insurance – Make sure coverage is valid in the assignment country.
    • Kidnap and ransom insurance
    • Burglary and other household effects insurance
    • War risk insurance – Often needed in countries designated as war zones.
  6. Cross-Cultural Training should be provided to ensure a relatively smooth transition for the employee, and a realistic preview of what daily living is like.  Companies often view such training as “too soft,” but experience shows that it is extremely helpful to prepare assignees well for many contingencies.
  7. Crisis Management Protocols should be defined in each organization.  Some suggestions:
    • Define a protocol for assigning “critical” status to disaster or crisis situations. It is important that companies have informed local sources to ensure that their assessment of the situation is valid and current.
    • Formalize and communicate country or regional contact points and phone numbers.
    • Set up a procedure for the employee in the event of an emergency.
    • Ensure that employee emergency contact numbers, as well as home and office phone numbers, are on record with the home office and the country contact person.
    • Conduct emergency evacuation briefings or updates upon assignment and at periodic points during assignments, particularly in areas of potential risk or conflict.
    • Plan for financial and travel contingencies.

Other Resources
There are many other resources to assist employers in managing extreme hardship assignments.  Start with the US Department of State Travel Warnings.  The UK Border Agency provides a listing of current conditions in many countries, as does the US Central Intelligence Agency World Factbook.  Forbes Magazine publishes a list of the World’s Most Dangerous Countries, which offers some useful information.  Check with security consultants and health care experts as well.

Summary
Managing assignments to dangerous places is a challenge for employers and stressful for employees.  Careful planning, sound policies, advance preparation and of course, a sense of adventure, are all steps to mitigating the risks and ensuring a successful assignment for your company.

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Littler Mendelson

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The Expatriate Agreement – Yes or No?

Posted on August 31, 2009 by | 7 comments

bio_400x400Author:
Chuck Csizmar – CMC Compensation Group

Recently I was asked by a US client to explain why I recommended that they create an international assignment letter for their expatriate employees.  After all, they only had a few employees overseas and previously had resisted the call to what they described as “playing the lawyer card”.  They felt that management could effectively deal with the circumstances of each individual expatriate situation as matters came up, and were reluctant to lose what they considered their prerogative – to set terms and conditions as they thought appropriate for each employee.

This is not the first time I have been asked that question, as it is not unusual for small companies or non-profit organizations to send an employee overseas with little more than a verbal agreement and a series of vague assurances.  These organizations wish to avoid bureaucracy and move quickly.  However, in most cases these casual and hurried arrangements have proved painful and expensive experiences for all concerned, largely because:

  • The shock employees and their families faced when they came to grips with actually living in a foreign country, vs. simply visiting.  The local realities of daily life, combined with cultural differences compared against “back home” became quite a wake-up call when they were no longer insulated by the transitory nature of a business trip.
  • The constancy of unforeseen and confusing localized situations arising (medical claims, driving licenses, bank accounts, schooling, language, etc.) proved such a frustrating distraction for the employee that they often lost focus on the job – the reason they were there in the first place.
  • Relationships with headquarters suffered as the employee asked for more and more consideration (increased payments) to redress what they considered coverage gaps in their terms & conditions.  The trust element was weakened as employees felt they were being short-changed by management.

Coming from an environment where every expatriate was given a detailed assignment letter “before” getting on the plane, I was at first taken aback by the client’s question – because the absence of mutually agreed terms and conditions is almost certain to eventually prove very expensive to companies trying to take a “short cut.”

Here are some reasons why providing an assignment letter is a good idea:

  • Protection:  Like any contract, confirming the terms & conditions of the assignment protect both parties from misunderstandings, misinterpretations and assumptions – before expenses are incurred.
  • Clarity:  Accepting an overseas assignment is a major step for any employee, as well as for their affected family members.  The more you are able to clarify exactly what the terms and conditions of the assignment are, the more likely you are to ensure a smooth assignment for all parties involved.
  • Cost control:  Defines those expenses that the company will pay for and conversely what they will not pay.  An agreement here will mitigate issues rising once the expatriate is on the ground in the host country.  Concerns raised once the assignee is relocated usually result in increased company costs, as negotiating leverage is lost and the company feels compelled to avoid alienating a very expensive investment.
  • Standardization:  Your international policy, whether written or only a matter of case law precedent, should strive to treat all expatriates in the same fashion.  Unique circumstances do occur but the basic principles should be repeated for every assignee.

So how bad can it be, playing it by ear and leaving terms & conditions to be developed over the duration of an employee’s international assignment?  Flexibility and quick thinking are positive management traits, are they not?

Unfortunately, when you court the inherent risks that accompany an undocumented assignment, you should be prepared for:

  • Increased costs that you have not planned for
  • Constant negotiations that attempt to improve the lot of the expatriate
  • Disgruntled employees and / or affected family members
  • Greater risk of failed assignment

Taking that short cut usually limits the financial and emotional protection the employee and their family are going to rely on, at the same time that the company has committed a substantial amount of money to place them in an overseas location.  That is not a good management practice.

When preparing an international assignment letter, what elements should be included?

  • Title, compensation and assignment duration – critical elements of status and reward in the host country
  • Housing and cost of living allowance considerations – should include the amounts involved (as applicable) and the frequency of review
  • Benefit coverage (medical, dental, life, vacation, holidays etc.) – how will home country benefit protections be handled in the host country
  • Relocation considerations – the back and forth policy coverage for the employee’s residence, to include movement of household goods overseas
  • Property management (as applicable) – what will happen to the home country residence?
  • Tax preparation – employee obligations in both countries.   Usually a statement of company liability for “additional” taxes is included.
  • Home leave – how often, and in what circumstances?
  • Schooling, language, cultural orientation (as applicable)
  • Repatriation – a balance is usually struck here between the employee’s strong concern and the company’s natural vagueness for what the future might bring
  • Connection to international assignment policy – refer to the policy as the source of company rules and procedures
  • Unique and individual circumstances (as applicable) – if it’s different from the norm, write it down!

The items listed above represent only a portion of the questions that your expatriate candidate will have, and the list is not all-inclusive.  So should your company consider taking a casual approach to sending an employee overseas, unsupported by a signed assignment letter, be aware of the risks involved.

Is there a scenario of an employee being asked to live overseas where circumstances would not require an international assignment letter?

I don’t think so.

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Expats: Saving Money on Global Benefits, Part 2

Posted on August 18, 2009 by | 2 comments

George Bashaw

 

Author:
George Bashaw – Atlas Global Benefits

I hear snippets everyday about the economy recovering. Try telling that to your HR friends.  They are still getting pressure to cut costs and create efficiencies.  Adopting a true expat plan for benefits can create numerous efficiencies.  This blog is Part 2 in a series to help companies save money on international benefits by creating a global health benefits package specifically for expats.

Hard Cost
I am surprised every time I run into a company that does not have a global benefits package for expats.  A typical response is, “we don’t want to spend the money.”  This is a common misconception.

Did you know:

  • Expat plans are typically less expensive and more compressive than a comparable domestic plan;
  • The plans typically they do not have copays and many of the exclusions common with domestic plans;  and
  • The hard cost does not take into consideration the cost of a critical event like a heart attack or a medical evacuation and repatriation without international coverage.

Do a comparison and see where your company falls.

Efficiencies for HR
A company has three options when insuring expats:  keep them on a domestic plan and run claims through their current carrier; put them on a local (country-specific ) plan; or a specialized expat plan.  By choosing the latter, you can greatly reduce the administrative burden.  Here’s how:

  • Compliance:  Administering employee benefit plans in multiple countries creates a significant amount of compliance with local laws.  Adopting a global benefits package for globally mobile employees shifts the burden of compliance from the HR department to the insurance carrier.
  • Claims and Service:  This becomes the responsibility of the expat carrier.  It is only a matter of time before you have an employee in an assignment country on the operating table demanding payment to begin surgery.
  • Consistency in Benefits:  It is common for companies to provide expats with a local health care solution rather than one that is fully transportable around the globe.  Since benefits vary from country to country, you could end up with a disgruntled expat when they discover that one country’s benefits are richer than the next assignment.

Benefits for the Expat

  • Freedom:  Expats are on foreign assignment and their needs are significantly different than someone who is a local employee.  By nature, the expat will travel (different countries and home) and they need coverage that will follow them.
  • Productivity:  A global benefits package keeps your expat focused on their assignment.  They no longer worry about having to travel for medical care or deal with claims and medical provider issues.

Foreign Nationals
Creating a global benefits plan for non-US citizens working abroad requires some due diligence and proper communication.  The challenge is to design a plan that is integrated with any social benefits so there is no duplication. Perception of the new plan is very important.  In order to be well received, it is necessary to properly communicate the benefits to the expatriates so they are comfortable with the new private coverage as compared to their prior social system.

Use a Broker for a Complete RFP
I know this sounds self serving, but use a broker who writes international coverage.  Out of ten companies I call on, nine have one of two expat carriers. But there are more than a half a dozen carriers who provide quality coverage and it would serve you well to get a full RFP.  Second, a broker has knowledge of the market, leverage with carriers, and can match your needs with the appropriate insurance provider.  Third, most brokers have enough business to merit carrier discounts that can help negate commissions or broker fees.  In sum, make sure you are specifically insuring your risk and use a professional to facilitate the process.

I hope this helps you navigate through the complexities of expat health care options.  Please let me know your thoughts by leaving a comment.

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Abrupt Repatriation: Tips to Pass on to Parents

Posted on August 17, 2009 by | Comments Off on Abrupt Repatriation: Tips to Pass on to Parents

Photo Liz Perelstein (2)Author:
Liz Perelstein – School Choice International

Although the merits of sending families home before scheduled repatriation dates are a topic of continuous debate, we know that some companies are resorting to this course of action.  Where children are involved, the situation is understandably more sensitive, and companies are struggling to come up with cost-effective, yet fair and reasonable solutions.

If you find you have to make or implement difficult decisions when it comes to children and their education, preparing yourselves, and helping parents prepare, is the most effective way to handle the delicate task at hand.  Three things that parents should keep in mind are:

  • The resilience of children
  • Opportunities that come from change
  • Thoughtful communication

First, anxious parents need reassurance that children are extremely resilient and don’t, as a matter of course, suffer long-term as a result of transition, although the anticipation of change and the early stages in a new school are challenging for everyone.  In typical circumstances, the children who find change most difficult are those whose parents do.  So it is important that parents make every attempt to recognize and convey the opportunities the family has had and will have, and to address any problems as a family.  Any concerns that children cannot comprehend should be saved until after bedtime.  Parents should share as much about the circumstances as children want to know and are able to absorb, using their questions as a guide.  It is essential that they are told that neither they nor their parents have done anything wrong, and that the current economic circumstances are something that the world is confronting together.  Parents can explain that many of their friends also have been making life changes as a result of the recession.  Some have moved homes, and others have switched schools.  Different families will make different kinds of choices, but sacrifices are now common among friends and family members.

These are some additional tips that can be shared with parents to provide them with peace of mind:

  • Be available to speak with children and to answer any question they may have.
  • Make thoughtful choices about the new school, reflecting on academic and social characteristics of children and how they have fared in their current school, in addition to family values and logistical circumstances.  Gather lots of information and ask many questions about matters important to children, rather than focusing on factors more important to adults.
  • Before starting the new school, engage the head and/or teacher in a conversation about the child so that good class placement decisions are made and the new teacher understands the child, his/her needs as well as current transitional circumstances.
  • Address curriculum differences through tutoring or outside enrichment, but first clarify that there are likely to be discrepancies between performance in their new and former schools; parents should explain that each school teaches different material so that the child is not at fault if s/he struggles at the outset.

Communication, both with the school and with the child, is the key to a successful transition.  When families are calm and thoughtful, a change of schools can give children an opportunity to learn essential life skills such as making new friends and dealing with uncertainty, which is an invaluable part of any education.

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