Tag Archives: Global HR

Red Flag for Global Recognition Programs

Posted on November 15, 2009 by | 9 comments

bio_400x400 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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Posted in Compensation, Cross Cultural Insights, Global HR Expertise, International Expertise, Leadership Development, Professional Development

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Directory of Links for International HR

Posted on November 11, 2009 by | Comments Off on Directory of Links for International HR

heaps_warren1Author:
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

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Expatriate Challenges in Developing Countries

Posted on November 5, 2009 by | 14 comments

heaps_warren1Author:
Warren Heaps – Birches Group LLC

Today I had the pleasure to deliver a presentation to the Thames Valley Chapter of the Forum for Expatriate Management.  If you are not familiar with this organization, I urge you to visit their website – there is a wealth of great resources to be found regarding all aspects of international assignment management.

My presentation focused on the unique challenges of expatriate assignments in developing countries.  There is information about:

  • the challenges of designing expatriate compensation packages;
  • the emerging trends in the sources of talent for these assignments;
  • some comparative information on hardship pay (a key element of packages to some developing countries); and
  • a couple of ideas about alternative approaches to consider.

If you would like to look at the presentation in its entirety, please send me an email using the Contact Us page.

If you have some thoughts or questions about this topic, use the comments feature to share them!

More About Warren

Warren Heaps

Warren on LinkedIn

Developing Markets Compensation and Benefits Group in LinkedIn

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Birches Group

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Posted in Africa, Expatriates, Global HR Expertise, Global Mobility Services, Relocation

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Expats Moving Overseas – Ten Tips to Transition to a New Culture – Part 2

Posted on November 3, 2009 by | 3 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.

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

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

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Leadership Development in Africa – Part I

Posted on October 27, 2009 by | 11 comments

Lex LindemannAuthors:
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:

  • Sensitive to the feelings of others, helpful, responsive and friendly.
  • Loyal to his ideals and ideas and respectful of the beliefs, rights and dignity of others.
  • Strong in his/her feelings of self-confidence and ability to identify easily with co-workers and supervisors.
  • Enthusiastic when informing others about the introduction of a strategic program.
  • Takes interest in improving the group and get work done and avoid envy and jealousy.
  • Endeavours to give others the benefit of doubt and or advantages and firm but not proud or stubborn in making judgments and decisions. They are sincere and straightforward.
  • Embraces change in their departments and don’t avoid reasonable risk taking.
  • Manages individual performance and steer their subordinates on a regular basis.

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?

 

 

 

 

 

 

  • They take an interest in employees and communicate clearly and transparent.
  • They keep morale high. They encourage team spirit. They also give a feeling of being respected and being needed. They awaken enthusiasm and motivation.
  • They use commands sparingly. They avoid giving orders such as, “Do this!”, “Stop this,” or “Do it this way.” They request, not demand.
  • They show respect and faith to subordinates. They show the same consideration they would like to receive and show interest to others.
  • They welcome suggestions and prompt employees to think creatively. They avoid the phrase: “Yes but…” which generally is considered as a: “No!”
  • They handle grievances fairly. They act fairly. No favourites when assigning work. They are impartial.
  • They express approval. They show appreciation and complement, but they allow a certain level of mistakes made.
  • They create highly productive teams, delegate tasks wisely, and step aside.
  • They develop their people to enable them to prepare them to achieve more challenging goals.

 

 

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:

  • Sensitivity to the individual problems people face on the job.
  • Availability and openness to people in need of help.
  • Sympathy with adverse conditions in the work environment.
  • The ability to establish more than a boss-worker relationship.
  • Above all delegate challenging tasks to their subordinates.

Highly productive leaders tend to spend more time than less productive managers to:

  • Motivate and inspire their employees and provide structure.
  • Keep employees informed.
  • Get ideas and suggestions on important matters before going ahead.
  • Try out new ideas with them.
  • Show consideration for their needs.
  • Coach their workers individually.
  • Develop and train employees for increased responsibilities.

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!

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Posted in Africa, General, Global HR Expertise, Leadership Development, Professional Development, Training

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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.

More About Chuck:

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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!

More about Heather

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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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How Effective Are Your International Pay Programs?

Posted on September 22, 2009 by | 1 comment

bio_400x400Author:
Chuck Csizmar – CMC Compensation Group

Has anyone ever asked you this question?   Did you have an answer?

To clarify, the question is whether your company’s international pay plans and practices are operating the way they were intended, and whether you are satisfied with what they have delivered.

When I ask a client this question, the typical reaction is a deer-in-the-headlights return stare, followed by a puzzled frown, perhaps a cough, then – maybe – some mumbled explanation of their employee turnover  situation.

In other words, they don’t have a clue.

A Huge Missed Opportunity

Why is this question important?  The client’s reaction would be humorous if there wasn’t a cash register ringing in the background.   If the method by which you reward your employees for their performance is not working, in any country, your company is wasting money like a silently dripping faucet – or worse.   This money is draining directly from your bottom line and your program flaws are likely also causing resentment among your employees.   Such a waste is also an avoidable expense, one that you can control.  Squandering payroll dollars and upsetting your employees is a dangerous and expensive combination for any organization.

If you consider that upward of 40% to 60% of your revenue goes right back out the door in some form of employee pay (excluding benefits), then the magnitude of your vulnerability should hit home.

Management time, though is too often misdirected by worrying about whether next year’s average pay increase will be 2.5%, 3.0% or 3.5% of payroll – or whether distinctions should be made on a country-specific basis.   However, the 800 lb. gorilla in the room is not the increase percentage, but the payroll itself – that huge amount of fixed and variable pay expense already budgeted.  That is the figure that should receive the lion’s share of attention.

What do you mean by an “Effective Program”?
Each Compensation program that you have in place (or set of practices) was likely designed or intended to perform a certain function.  For example:

  • Salary Structure or pay hierarchy – to offer the opportunity to earn competitive base pay
  • Incentive Plan – to reward employees for achieving job-related objectives above and beyond their normal duties
  • New Hire / Promotional Guidelines – to staff the company with the right caliber of employees
  • Pay-For-Performance – to recognize and reward higher achieving performers for their contribution to the company

How do you know if you need to be concerned about these programs / practices?  There are signs for those prepared to look.   Some examples:

  • Poor documentation of job responsibilities:  No one likes to write job descriptions, including me, but their absence, antiquity or inaccuracy can create an environment of blurred responsibilities, grade and title inflation and over staffing.  The direct result is an increase in fixed costs.
  • Absence of a Procedures Manual:  You can not expect managers to follow a consistent company process when they have little or no guidance.   They will fill the vacuum with chaos and damaging precedents, each of which is an expensive end product.
  • Dashboard metrics not in place:  To understand success you need to measure it.  If you haven’t established criteria to track the who, how and why of your compensation programs, then you won’t be able to understand whether your programs deliver desired results or not.
  • One size fits all:  Where the company has decided that each national program should look like the one at headquarters (different country), for ease of administration and communications
  • Poor visibility of pay decisions:  Proper rewarding of good performance should be a celebration in the open sunshine, not hidden in a closet hoping the boss won’t notice.  If a manager can grant pay increases without at least one additional level of signature, then the opportunity for improper (wrong amount, wrong employees, wrong reason) pay increases will flourish.
  • Toothless Performance Appraisal Process:  If your process of rewarding employees focuses more on activity than results, if it does not measure performance, if objectives / work routines are not tied to business needs, or if the appraisal document is viewed as an administrative headache, chances are the monies coming out of that process are a) providing little motivation for future performance, and b) are viewed more as delayed compensation than true pay-for-performance.
  • Limited Reward Differentials:  If the reward difference between a high performing employee and “Joe Average” is less than 2% you’re better off to consider across-the-board increases rather than go through the painful process of actually assessing individual performance.   If your plan essentially rewards everyone (is that really pay-for-performance?), then you’re not going to have enough money to properly reward those most critical to business success.  And who do you think will leave in a huff?  Not Joe Average, that’s for sure.
  • Weak Budgetary Controls:  Is there anyone assigned to watch the compensation purse strings in your organization?   Someone to say “that’s too much” or “you can’t give that large an increase”?  Someone perhaps to limit the growth of fixed costs?  Absent the presence of limiting factors (“controls” is such a harsh word) your costs will rise, as undisciplined managers in an unstructured environment will increase pay decisions in order to be liked by their employees.

Steps to take now
So what can you do?   You can find out.   You can ask questions.   You know the warning signs now, so avoid complacency and do not simply wait for the fire alarms to ring.  Become an advocate for systemic change, for policies and processes that improve the way your company rewards its employees.

By the way, have your internal audit folks ever scheduled your compensation programs for a checkup?  If so, it’s usually the HR documentation of processes that get a look, not whether those processes are effective or are even damaging the business.  They tend to look in the wrong direction.

Will a comprehensive review of your pay programs ensure that you will save money?  Improve your pay programs?  Improve retention and morale?  Unfortunately, there is an “it depends” answer to those questions.  The review will highlight your weaknesses and vulnerabilities, and show you the pathway to efficiency, cost savings and the effective use of your payroll dollars.  But by itself a comprehensive review can do little more than show you the way.   To reap success from your study, Management must be willing to make critical decisions that differentiate pay on the basis of employee value and performance.

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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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