Hiring Expatriates - Pros and Cons

An expat or expatriate is a person who permanently or temporarily moves to the foreign countries to work in their new branches or sometimes new offices to fulfil assignments. There are three types of employees involved in the multi-national corporation's (MNC) international business pattern. They are Parent Country Nationals, Host-Country Nationals, and Third-Country Nationals. For HR department, hiring local employees can be tricky and difficult at times. The new offices in the foreign countries can face limited local talent pool issue. The chances are that the locals may or may not have the requisite skills and talents the company is looking for. The ones who have these skills and qualities usually demand higher salaries. Hence, organizations prefer hiring expatriates. But, hiring them has both, benefits and challenges (Internations, 2016).

HR best practices can support a good expat experience. Guiding your staff before and during their assignment is an effective preparation for the new country. HR people should make sure:

• Address the need for the employee to develop language fluency in international assignments.
• Psychological screening is given to evaluate the willingness of international assignments, including individual openness to international experience.
• Should set clear expectations before or during the foreign assignment and providing strong support by giving proper feedback.
• Self-assessment tool should be provided to employees to help set realistic expectations to adjust the host country.
• Providing some mentorship in the host country through a former or current employee.
• Manages attachments between the expatriate and the home-based organizations (Shrm, 2016).

Let's look at the pros and cons of hiring expatriates.

PROS:

They follow a uniform management system

The head office has better management strategies and standards than other international branches. Expats who have worked in the head office know the rules and regulations, disciplinary activities and standards. They can share and help them maintain the same standards and rules across other branches, thus following a unified work and management style.

They are motivated

Only the best performers will be relocated to new international markets. So if you choose the best people to source and lead your overseas operations, they will show the tremendous impetus to organisation's development.

They share information

Foreign employees have been at the head office for a long time, so they have a better understanding of the business and experience. Local staff are not familiar with this information. Foreigners can share the general situation and technical knowledge to enhance the business performance of contractors.

CONS:

They are the expensive hires

The cost of hiring foreign workers may be 2-3 times more expensive than recruiting local staff. They demand higher salaries than their local employees. Their relocation costs, lodging, taxes, insurance, etc. must be the responsibility of the local company. If they have a family, their expenses must also be borne by the company.

Their burnout rate is high
Expatriates often perform very demanding and boring jobs. They may leave the local company at any time due to pressure. Their burnout rates can be high for several reasons. Some of the main causes include being away from family and friends, being alone, a coworker's bad behaviour, cultural differences and internal politics.

They can misunderstand (or create misunderstandings)

Expats may not understand the work culture of the local company. The rules and regulations of the host company or branch may differ from those of the parent company. These differences can cause misunderstandings and lead to harsh conditions (Hrexchangenetwork, 2015).

Reference:

Internations, (2016). What’s an Expat Anyway? [online]. Available at: https://www.internations.org/guide/global/what-s-an-expat-anyway-15272. [Accessed 12 December 2017].

Hrexchangenetwork, (2015). The Pros and Cons of Hiring Expats. [online]. Available at: https://www.hrexchangenetwork.com/hr-talent-management/articles/the-pros-and-cons-of-hiring-expats. [Accessed 14 December 2017].

Shrm (2016). HR Best Practices Can Lead to a Better Expat Experience. [online]. Available at: https://www.shrm.org/resourcesandtools/hr-topics/global-hr/pages/hr-best-practices-can-lead-to-better-expat-experience.aspx. [Accessed 11 December 2017].