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Chapter 7

Re-entry and Career Issues

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Chapter Objectives

This chapter deals with the post-assignment stage, which raises issues for both the expatriate and the multinational. We treat this stage as part of the international assignment.

Some of the issues may be connected to events that occurred during the international assignment. We examine: The process of re-entry or repatriation Job-related issues Social factors, including family factors that affect re-entry and

work adjustment Multinational responses to repatriate concerns Return on investment (ROI) and knowledge transfer Designing a repatriation programme.

This chapter deals with the post-assignment stage, which raises issues for both the expatriate and the multinational. We treat this stage as part of the international assignment.

Some of the issues may be connected to events that occurred during the international assignment. We examine: The process of re-entry or repatriation Job-related issues Social factors, including family factors that affect re-entry and

work adjustment Multinational responses to repatriate concerns Return on investment (ROI) and knowledge transfer Designing a repatriation programme.

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Re-entry Expatriation process also includes repatriation:

The activity of bringing the expatriate back to the home country.

Re-entry presents new challenges: Expatriates may experience re-entry shock or

reverse cultural shock. Some exit the company.

The multinational’s ability to retain current and attract future expatriates is affected by the manner in which it handles repatriation.

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Expatriation Includes Repatriation

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The Repatriation Process

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Repatriation Phases

1. Preparation – Developing plans for the future, and gathering information about the new position

2. Physical relocation – Removing personal effects, breaking ties with colleagues and friends, and traveling to the next posting, usually the home country

3. Transition – Settling into temporary accommodation where necessary, making arrangements for housing and schooling, and carrying out other administrative tasks (e.g., renew driver’s license, applying for new health insurance, banking, etc.)

4. Readjustment – Coping with changes (e.g., company changes, reverse culture shock, career demands, etc.)

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Repatriation Challenges

Little evidence in the literature that multinationals view the preparation for repatriation as important as pre-departure training.

Readjustment is the least understood and most poorly handled. 52% of 287 surveyed subsidiaries reported repatriate re-

entry problems (Harzing, 1996). 44% turnover rate among 181 multinationals surveyed by

GMAC-GRS 2002 50% leave the firm within one year 39% of surveyed firms did not know their turnover rates

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Individual Reactions: Job-related Factors

Career anxiety No post-assignment

guarantee of employment Loss of visibility and

isolation Changes in the home

workplace Work adjustment

The employment relationship and career expectation

Re-entry position Devaluing of the

international experience

Career anxiety No post-assignment

guarantee of employment Loss of visibility and

isolation Changes in the home

workplace Work adjustment

The employment relationship and career expectation

Re-entry position Devaluing of the

international experience

Coping with new role demands Role behavior Role clarity Role discretion Role conflict

Loss of status and pay Autonomy Responsibility Lower pay in absolute

terms Drop in housing conditions

Coping with new role demands Role behavior Role clarity Role discretion Role conflict

Loss of status and pay Autonomy Responsibility Lower pay in absolute

terms Drop in housing conditions

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The Repatriate’s Role

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UK Repatriate Study

Surveyed 124 recently repatriated employees Indicated five predictors for repatriate

maladjustment In ranked order:

Length of time abroad Unrealistic expectations of job opportunities in the

home country Downward job mobility Reduced work status Negative perceptions of employer’s support during

and after repatriation

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The Readjustment Challenge

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Individual Reactions: Social Factors

International experience can distance the repatriate (and family) socially and psychologically (e.g., Kingpin syndrome, financial loss)

Each family member undergoing readjustment Re-establishing social networks can be difficult Effect on partner’s career

Recent research indicates a decrease in spousal assistance upon re-entry (e.g., job search, resume preparation and career counselling)

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Multinational Responses

Staff availability How repatriation is handled is critical

Return on investment (ROI) Defining ROI in terms of expatriation Gains accruing through repatriated staff

Knowledge transfer A one-way activity? Tacit and person-bound?

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Measuring ROI

Expatriates are expensive, averaged $1m/per assignment by the U.S. multinational.

High turnover rates represent a substantial financial and human capital loss to the firm.

Difficulties in measuring ROI (GMAC-GRS 2002): Receiving feedback from the business unit concerned Tracking international assignments in a systematic way No formal planning Lack of objective measures Too many decisions made without cost considerations

of the international assignment

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Designing a Repatriate Program

Topics covered by a repatriation programTopics covered by a repatriation program

Repatriation, physical relocation and transition information that the company will help with

Financial and tax assistance, e.g., benefit and tax changes, loss of overseas allowances, etc.

Re-entry position and career-path assistance

Reverse cultural shock, including family disorientation

School systems and children’s education and adaptation

Workplace changes, e.g., corporate culture, structure, decentralization, etc.

Stress management and communication-related training

Establishing networking opportunities

Help in forming new social contracts

Repatriation, physical relocation and transition information that the company will help with

Financial and tax assistance, e.g., benefit and tax changes, loss of overseas allowances, etc.

Re-entry position and career-path assistance

Reverse cultural shock, including family disorientation

School systems and children’s education and adaptation

Workplace changes, e.g., corporate culture, structure, decentralization, etc.

Stress management and communication-related training

Establishing networking opportunities

Help in forming new social contracts

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The Use of Mentors

Aims to alleviate the ‘out-of-sight, ‘out-of-mind’ feeling by keeping expatriate informed

Mentor should ensure that the expatriate is not forgotten when important decisions are made regarding positions and promotions

Effective mentoring needs managing Mentoring duties include:

Maintaining contact with the expatriate throughout the assignment

Updating developments in the home country Informing management developments Providing assistance in the repatriation process

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Factors Affecting Mentoring

Size of expatriate workforce Firms with over 250 expatriates are more likely

to assign mentors.

Who is responsible for repatriates Corporate HR or a separate international

assignment unit is more likely to provide mentors than the divisional level.

Company nationality European firms are more likely to use mentors

than U.S. firms.

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Chapter Summary

The repatriation process. Cultural novelty has been found to affect adjustment in

the host country and, for the majority of repatriates, coming home to the familiar culture may assist in readjustment.

However, given the profound effect of job-related and social factors, re-entry shock or reverse cultural shock is likely to occur in the readjustment process upon repatriation.

(cont.)

The repatriation process. Cultural novelty has been found to affect adjustment in

the host country and, for the majority of repatriates, coming home to the familiar culture may assist in readjustment.

However, given the profound effect of job-related and social factors, re-entry shock or reverse cultural shock is likely to occur in the readjustment process upon repatriation.

(cont.)

This chapter has been concerned with the repatriation process. We have covered:

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Chapter Summary (cont.)

Job-related issues centered on career issues upon re-entry.

Factors that affect career anxiety include no post-assignment guarantee of employment, fear that the period overseas had caused a loss of visibility, changes in the home workplace that affect re-entry positions and the employment relationship.

The re-entry position is an important indicator of future career progression and the value placed on international experience. Coping with new role demands is another factor in readjustment, along with loss of status and pay.

(cont.)

Job-related issues centered on career issues upon re-entry.

Factors that affect career anxiety include no post-assignment guarantee of employment, fear that the period overseas had caused a loss of visibility, changes in the home workplace that affect re-entry positions and the employment relationship.

The re-entry position is an important indicator of future career progression and the value placed on international experience. Coping with new role demands is another factor in readjustment, along with loss of status and pay.

(cont.)

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Chapter Summary (cont.)

Social factors explored include loss of social standing and the accompanying loss of the expatriate lifestyle.

Family readjustment is also important. A specific aspect is the effect of the international

assignment on the spouse/partner’s career, such as being re-employed and having international experience recognized.

(cont.)

Social factors explored include loss of social standing and the accompanying loss of the expatriate lifestyle.

Family readjustment is also important. A specific aspect is the effect of the international

assignment on the spouse/partner’s career, such as being re-employed and having international experience recognized.

(cont.)

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Chapter Summary (cont.)

Multinational responses to repatriates’ concerns focused on re-entry procedures.

How repatriation affect staff availability Whether companies are measuring and obtaining a return

on investment through international assignments, and The contribution of repatriates to knowledge transfer, and Designing effective repatriation programs, including the

use of mentors.

(cont.)

Multinational responses to repatriates’ concerns focused on re-entry procedures.

How repatriation affect staff availability Whether companies are measuring and obtaining a return

on investment through international assignments, and The contribution of repatriates to knowledge transfer, and Designing effective repatriation programs, including the

use of mentors.

(cont.)

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Chapter Summary (cont.)

Although the focus of this chapter has been repatriation in the general sense, issues concerning expatriates’ post-assignment career should be raised.

Viewing repatriation as part of the expatriation process, as suggested in Figure 7-1, should remind those responsible for expatriation management of the need: To prepare repatriates for re-entry and To recognize the value of their international experience to both

parties. Firm and cultural factors should be understood in order to

develop and manage an effective mentoring system.

Although the focus of this chapter has been repatriation in the general sense, issues concerning expatriates’ post-assignment career should be raised.

Viewing repatriation as part of the expatriation process, as suggested in Figure 7-1, should remind those responsible for expatriation management of the need: To prepare repatriates for re-entry and To recognize the value of their international experience to both

parties. Firm and cultural factors should be understood in order to

develop and manage an effective mentoring system.