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By Allianz Care | March 20, 2019
It is estimated the number of expats working around the world could increase to almost 90 million by 2021. For international human resource managers (IHRMs) this represents both an opportunity and threat. Growing employee mobility allows businesses to expand into new markets where the required skills are not available locally. However, expatriate management is challenging for IHRM’s. The process of selecting, preparing and implementing a successful expatriate placement programme may face difficulties.
Expat failure is estimated to be between 20% and 40% depending on industry and location. The cost of expat failure for US businesses alone, is in the region of $2 billion. It is easy to see why developing the right expatriate management strategy is crucial.
We have established the benefits of pre departure training for employees taking up an expatriate role. If you are tasked with developing a pre-departure training program it can be difficult to know where to begin. There are several components that should be included to provide expat candidates with the best opportunity for success:
Cultural awareness training
Cross cultural understanding is key to expatriate success. David Livermore, an expert on cultural intelligence, conducted research on expats over ten years. It showed cultural intelligence is more beneficial than even language fluency when it comes to a successful assignment. Pre-departure training programme should be tailored to the location the expat candidate is moving to. At a minimum cross cultural training should aim to:
This sensitivity training is also useful in minimising culture shock amongst expats, particularly those on their first assignment.
Information about host country
This is going to be a significant part of pre-departure training and should cover topics as diverse as:
This is in no way an exhaustive list. The information required will vary depending on the needs of your candidates.
Secondary to understanding the culture of their new country, it is useful for expat employees to develop language skills. It helps build relationships and rapport with new colleagues. A lack of language skills was one of the biggest challenges faced by 60% of senior management in expat rolls. Yet only 37% of employers offered language skills as part of pre-assignment training. Managers who could communicate with colleagues in the local language, found employees were more motivated to achieve organisational goals.
Project alignment meetings
The expat and host manager should have a series of project alignment meetings in the run up to and during the assignment. They can discuss the company’s goals and cultural differences that might impact the success of the international assignment. These meetings usually cover topics like:
Support while abroad
Another key component of pre-assignment training is outlining the support the expat will receive while abroad. These requirements will vary by location and role but may include:
Establishing a pre-departure training programme containing some of these elements should prepare those about to travel abroad for what lies ahead.
Many expats travelling abroad are concerned about accessing healthcare while they are away. If this is highlighted in pre-departure meetings in your organisation, we can help arrange international health insurance for your employees. If you are an IHRM with questions about expat health insurance, please get in touch, we are happy to help.