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Hiring Expatriates - Pros and Cons

 

An expert 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 fulfill assignments. There are three types of employees involved in the multinational corporation's (MNC) international business pattern. They are Parent Country Nationals, Host-Country Nationals, and Third-Country Nationals. For the HR department, hiring local employees can be tricky and difficult at times. The new offices in 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 good expert 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 tools should be provided to employees to help set realistic expectations to adjust to 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 tremendous impetus to an organization'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 is 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 maybe 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 behavior, cultural differences, and internal politics.

Reference:
Internations, (2016). What’s an Expat Anyway? [online]. Available at: https://www.internations.org/guide/global/what-s-an-expat-anyway-15272. [Accessed 29 December 2020].

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 20 December 2020].

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 20 December 2020].

Comments

  1. Ganga PathirajaJanuary 18, 2021 at 5:59 AM

    The cost for hiring expatriates from foreign countries is not always a burdensome matter instead of recruiting local people with lack of experience and knowledge in specific industries.

    ReplyDelete
    Replies
    1. Amila AbeyrathnaJanuary 30, 2021 at 9:23 AM

      One of the main concerns for employers who are considering hiring a workforce of expats is costs. Indeed, expat employees come at a higher price due to accommodation and transport allowances, relocation packages, international health insurance, and visa sponsorship. Also, expats are usually not immediately available to start and can cost you time as well — time to relocate, complete the visa process, and adapt.

      Delete
  2. Anushka JayasekaraJanuary 28, 2021 at 6:23 AM

    Expatriates uphold same practices. When an employer relocate its employees to international location, it can save up on time to train them about the company's rules and regulations. But they are very expensive.

    ReplyDelete
    Replies
    1. Amila AbeyrathnaJanuary 30, 2021 at 9:30 AM

      Yes, We can describe it as legal risk, National employment laws and regulations regarding payroll, tax, and pension are often different for the local population and the expats. As with the immigration requirements, It should ensure compliance with the legal requirements too of the country business operates in. This will save the headache of having to deal with the local authorities, which may be a lengthy and costly process for both employer and employee.

      Delete
  3. Kavindi Nadeera 20039081January 30, 2021 at 8:55 PM

    It's important to note that the traditional full-time employee isn't your only her in option in fact more and more companies are trying to alternative arrangements including higher temporary employees part time interns and least employees All these strategies can save your money and some can save your headaches too

    ReplyDelete
  4. ISHANI19030135February 2, 2021 at 11:02 AM

    hiring them has both, benefits and challenges.

    ReplyDelete

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