Author:
Chuck Csizmar – CMC Compensation Group
I once supervised a Compensation Analyst who had learned her craft through professional seminars and workshops. One result of that education was her favored response when faced with a challenge at work: “the greatest minds in Compensation say that . . . ” It took patience to educate this budding practitioner about the difference between classroom / textbook answers and workplace reality.
Authors:
Han van der Pool – TNT N.V.
Lex Lindeman – HRBoosters
A growing number of African Countries are now connected to high-speed internet connections, and with increasing competition in the global economy, organizations are forced to look for more efficient and effective ways to create, spread and to apply functional and managerial knowledge.
E-learning and knowledge management have become key words in organizational learning processes in the Africa as well. Many organizations invest in managing the knowledge within the organization and e-Learning, as a supporting tool, is used more and more.
Authors:
Han van der Pool – TNT N.V.
Lex Lindeman – HRBoosters
Globalization, demographic developments, the credit crisis and global warming have all created the need for a shift in strategic management. Organizations are now faced with the need for continuous adaptation to changes in the markets and the world in general. Leadership is the most important condition for success in organizations. Organizations which treat development of executives and managers as an integrated part of company strategy have a distinct advantage over those that do not manage leadership development actively.
Together with Dave Ulrich of the RBL Group, Hewitt Associates examined how successful companies structure their management development practices and identify and develop their current and potential future managers and leaders. This research is carried out once every two years, and the outcome and the rankings were published in Fortune Magazine in November, 2009.
A closer look at the research shows a nice overview of the practice of leadership development and the importance which global companies attach to it. The inventory of the programs and instruments used by an array of companies operating globally was compared with the financial results of those companies, and gives some insight into the most effective approaches. The “Top Companies for Leaders” are the most advanced in talent management and leadership development, and have a real leadership culture, according to the researchers.
Over five hundred companies have taken part in this research. Every company completed an exhaustive questionnaire, which was analyzed and compared to other companies by the researchers. Afterwards, a selected group of companies was more closely studied through interviews with HR professionals and top managers. To see profiles of the Top Ten, click here.
Main Conclusions
The research shows clearly that successful companies continue to invest in leadership development despite the economic situation and the enormous strategic issues which companies face. Here is an overview of the most important elements which make a difference at “Top Companies for Leaders.”
Author’s Observations
Based on the findings of the Hewitt/RBL Study, we at Human Resources Boosters have developed a model to achieve excellence in integrated talent management. This model comes in three phases:
Conclusion
Hewitt showed with this research that companies, even in time of great uncertainty, are able to counter market and economical challenges by maintaining or even increasing efforts in talent management. Most of the companies even invested anti-cyclic, i.e., when markets were relatively calm companies invested more time and resources in people development. This also anticipates better times.
When talent development is really embedded in the organization and seen as an ongoing rhythm, the total processes in an organization will not only run more smoothly, but also more effectively, generating shareholder and stakeholder value. To become a top listed company may be a bridge too far for some organizations. However, with relatively simple actions, some investments, and strong convictions that people development should be part of your routine activities, your company will develop in a sustainable way.
More About Lex:
More About Han:
Author:
Chuck Csizmar – CMC Compensation Group
When designing programs to recognize and reward an employee’s extraordinary achievements it’s important to understand the cultural implications of these programs. Companies with a truly global operating mindset, vs. domestic-oriented organizations with international operations, will take into account national and cultural differences that distinguish its widespread employee populations.
One size rarely fits all.
You might think that the positive aspects of employee recognition programs are a universally accepted principle, but that’s only partially correct. Important differences exist. In some cultures / national identities the role of the team is such a core element of employee identification that seeking out an individual contributor for recognition would not be a welcome practice. Some employees might be reluctant to step forward, or to be pushed into the spotlight.
In other countries you will find that the perceived value of cash as a recognition award varies a great deal.
Case study
A former employer of mine once implemented a global Spot Award program for its worldwide employees – without including their international HR community in the planning discussions. Finalized program elements and procedures covered employees in over 20 countries in exactly the same fashion. The premise was to provide immediate (read that, fast) recognition and financial rewards (Spot Awards) for those employees who demonstrated performance above and beyond their normal job roles. Nominations for awards would come from an employee’s manager, though employees could recommend co-workers as well.
While the program was deemed a success in the US (though defined by only the dollars spent), it was much less successful elsewhere among the company’s far-flung international operations.
Lessons Learned
The first problem was that Managers outside the US placed a much more conservative financial value on so-called “extraordinary” employee contributions. Or put another way, the US Managers were more generous in their payment awards than elsewhere. The result was that the cash payments on a per-employee basis were widely skewed to the US employee. Notwithstanding the vagaries of the various currency exchanges, the international offices did not spend their allotted recognition reward monies as frequently or as generously as their US counterparts.
I recall one scenario where a US employee received thousands of dollars for a particular project effort, while their European counterpart was given a non-cash award (recognition dinner). This created more than a few awkward moments when the two employees shared experiences.
The second challenge was that many international employees did not want to be individually spotlighted by the recognition program. They were willing to receive the award, but would rather the recognition be confidential. Given that Corporate had planned an internal communications campaign to highlight individual award winners, that reluctance proved quite a hindrance.
Compounding the preference for anonymity was the desire for team over personal awards, as individual employees proved resistant to receiving the planned fanfare or preferential treatment – especially in front of their co-workers (team members).
The bottom line was that the recognition and reward program recognized a smaller than anticipated number of non-US employees, less reward money was spent per international employee, and Corporate Communications was hard pressed to find international employees amenable to being highlighted for the program. Not exactly what the program designers had intended.
Corrective action
The answer seems straightforward, does it not? If a global program is to affect all employees, then possible national or cultural distinctions among groups should be addressed, well in advance. However, that would mean including representatives from those groups in the design and communication phases of the project. Such a simple step seems a difficult one to take for many corporate plan designers. Why?
When they have the bit between their teeth developing a program that affects the majority of employees, management is often reluctant to change course to include the differing sensitivities of small populations, especially if those populations do not speak with one voice. What they prefer to do is have local representatives “tweak” the round peg into the square hole.
How does that work for you?
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Author:
Warren Heaps – Birches Group LLC
For some time, we’ve had a Links page on the International HR Forum Blog, but it has been perpetually under construction. Well, it’s now time to finish the construction, and make the Links page a valuable resource for international human resources practitioners.
This will be an ongoing effort to gather, vet and categorize potentially dozens or even hundreds of web sites. To get things started, we would like to invite you, our readers, to tell us about your favorite online resources. We’ll take care of sorting through all the suggestions, setting up logical categories and making the Links page a useful reference.
So please, send in your suggestions now!
Just type in the information in the box below, and click Submit.
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Posted in General, Global HR Expertise, International Expertise, Professional Development
Tagged Global HR, international hr
Author:
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.
A few weeks ago, I shared five tips for helping expats transition to a new culture. This post is a continuation of the previous one, rounding out the ten areas to focus on when transitioning to a new culture for an expatriate assignment.
#6 – Starting All Over
One of the toughest transitions for an expat is adjusting to a new office environment from “square one”. The expat may have held a senior level job in their previous location, and the new job can feel like a demotion. For the accompanying spouse, starting all over can be literal – if they’ve left behind a job or fruitful career, they may have to start a new career, or, in some cases, due to legal restrictions, not be allowed to work at all.
In both cases, it’s imperative that some attention be given to setting expectations. For the expat, this is about an initial period where they observe the office environment, rather than try to exert their own style or behavior on everyone else. For the spouse, expectations should be set around what types of work are permitted. There should also be some support to help spouses with the job or career-search, or on finding something to replace the job they previously held.
#7 – Access to Activities
Transitioning to a new culture isn’t just about the office. Whether single, or with a family, expats need to find fulfilling activities to help them adjust to a new culture. If the expat has moved with their family, then group activities will be important to the success of their overall experience.
Of course, available transportation may impact which activities are accessible, so providing assistance with ideas, or resources, is ideal.
#8 – Changes in the Family
For expats who have traveled with a spouse, it is more than likely the spouse has given up a job or career to follow along. If the non-working spouse isn’t happy, it can have a very negative impact on the overall experience. If the non-working spouse used to be a provider, and is now tasked with looking after the home, or the children, the role change will inevitably impact the family as well. It’s important to have an awareness of the changes, set expectations, and have a set of tools with which to navigate the resentments and challenges that are likely to develop.
#9 – Clothes: What Not to Wear
In many cases, this may be more impactful on women, than on men, but it’s important that a migrating employee understand if there are any cultural dress patterns. First, it’s less likely they will feel like they “stick out like a sore thumb” if they adapt to some of the typical dress codes. Second, there may be instances where the lack of this knowledge could land them in trouble – for example, in cities where women are expected to cover themselves from head-to-toe.
On a more subtle level, Americans tend toward either matching suits, or more casual garments in the office. When going out in the evening, it may be inappropriate to wear jeans. In France, women in the workplace sometimes wear what I’ll call “mismatched suits” – they look impeccably-dressed, even though their skirt does not have a matching jacket. Oddly, it’s not quite business casual; it’s simply a style difference. Going out in the evening, jeans are often acceptable if paired with a nice top.
Another thing I often find humorous is that in France, people always stare at shoes. So, while you might get away with wearing an old, worn-out pair of shoes or sneakers in some countries, you’ll become quickly insecure if you try the same in Paris.
Again, these are very subtle examples, but these small gaps can make all the difference when someone is trying to feel like they fit in to a new culture.
#10 – Eye Contact and Tone of Voice
Two behavioral areas between cultures that deserve attention are eye contact, and tone of voice.
One huge area where eye contact comes into play is on public transportation. For example, in Paris, it seems mandatory to stare at fellow passengers and it can be very uncomfortable the first few times you look up to find someone staring at you, meet their gaze, and find they do not look away. In Tokyo, it’s exactly the opposite experience. Passengers typically avoid all eye contact by pretending to sleep – it’s another jarring experience to see an entire car full of people with their eyes closed.
Finally, the tone of voice with which you speak can often reveal that you are a foreigner. As an American, I know we tend to speak fairly loudly in social situations, especially when dining or drinking. However, other countries lean towards quieter conversations. So keep this in mind and adapt your conversations accordingly.
In Summary
I hope you find these tips, and the ones from my previous article, to be helpful in understanding the challenges that expatriates and their families often face upon arrival in a new country. If you are an HR professional responsible for assisting expatriates with their transitions, be sure to keep these tips in mind.
I am always interested in hearing more tips or experiences. Please share yours as a comment to this post, or contact me directly by email.
More about Heather
Authors:
Lex Lindeman – HR Boosters and
Dr. Paul Rono – Kenyatta University (Nairobi)
In my last article, I highlighted the latest thinking in the area of western leadership development and the deployment of training programs in a corporate setting. In this short article, we will discuss some specific approaches to leadership development for public and private organizations in Sub-Saharan Africa.
I would like to welcome Dr. Paul Rono as my co-author. With Paul’s experience as a university lecturer and my experience as leadership developer for numerous private and public companies in Africa, we think we can give the reader a good ‘blend’ of effective leadership development for African managers.
Natural Leaders?
The leadership and philosophies of African political leaders have affected institutions and companies in various African countries for many years. For example, charismatic leaders were believed to be those who have the natural capacity and personality traits or qualities to lead. Hence, leaders were said to be born or natural “great men.” Traditionally, leadership was said to be an attribute of personality. Born or charismatic leaders become real leaders because they have such personality qualities but also: ambition, patience, pride, humility, wisdom, friendliness, dependability, force, endurance and, of course, managerial competencies.
Modern Functional Leadership is essentially to facilitate the interaction within a group to achieve preset goals, to realize the organization’s strategic objectives. Such functional managers or leaders are usually nominated, appointed and selected from among equals. If people utilize proper and effective managerial tools and motivation, performance and effectiveness increase considerably. Of course, this is also applicable to African managers and leaders acquiring or possessing modern functional leadership skills in a target achievement and ‘productive’ environment.
Successful Leadership Behaviour
The elements enumerated above are essential to successful leadership behaviour. The successful leader is:
Successful African Leaders Competencies
The modern African leader or manager should be more ‘democratic’ in his/her relations with subordinates and at the same time maintain the necessary authority and control in the organization or institution for which he/she is responsible. The somewhat less modern African leaders rely on collective accountability. Good (thus effective) leaders inspire people/staff to perform optimally if necessary individually or as a team. The best African leaders, despite their many differences in personality, practice certain principles like delegation, creativeness, networking, individual accountability and decision-making.
What are Effective Leaders?
Characteristics of Effective Leaders
The nature and style of functional (managerial) leadership greatly influence job satisfaction and motivation. Effective leaders show consideration for employees and enable them to have a sense of participation in decisions that affect them and they will have the following characteristics:
Highly productive leaders tend to spend more time than less productive managers to:
Managers and Leadership Development
Most leaders want to be more effective in their leadership. Some think they only need to learn techniques, others assume that they can learn a magic formula or foolproof method. Effective functional leadership implies an intensive development process. Some of the ability comes as a result of experience, some by learning from mistakes, by profiling from the experience and mistakes of others, from personal insights and by learning managerial skills.
To become truly effective African Managers and Leaders they will have to be developed through sustainable leadership competency programs that offer training with a difference. (See “Trends in Leadership development” Part II). These development efforts should be highly interactive, aimed at leadership and managerial competencies such as delegation and responsibilities acceptance. These customized interventions are generally short (maximum 4 to 5 days) followed up and coached by their superiors, i.e. the participants should be given room to ‘experiment’ with their newly acquired skills.
In Summary
It is certain that African countries will grow and develop in the coming years; look at the example of the pace of growth of mobile phone networks and coverage. Efficient infrastructures, systems and processes are put in place. However, just this is not enough; Inspiring Functional Leadership is an absolute necessity for growth. Sustainable investment in the modern development of African managers and leaders is primordial. In order to accelerate and maintain growth in Sub-Saharan Africa we must put in place the right learning work environment and formal, high-impact development possibilities.
In our next article, Paul and I will go deeper into specific competency development aspects such as the ability to delegate tasks, sense of responsibility and speeding up the execution of tasks, again related to African managers and leaders.
More About the Authors
More About Lex:
More About Paul:
Dr. Rono is a lecturer at Kenyatta University in Nairobi. He is an authority on leadership development, and has published various articles related to leadership development in Africa with a progressive yet adoptable and realistic view. Watch for his new website coming soon!
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.
More About Chuck:
Author:
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.
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!
More about Heather
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.
More About Chuck:
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