What problems do managers commonly encounter when repatriated from foreign assignments?

96) What problems do managers commonly encounter when repatriated from foreign assignments? How can HRM improve the repatriationprocess?Answer:Up to one-third of returning expatriates leave their companies within one year of repatriation. Problems with repatriation arise inthree general areas: personal finances, readjustment to home country corporate structure, and readjustment to life at home. Companies giveexpatriates many financial benefits to encourage them to accept a foreign assignment. Returning expatriates often find that many of theirpeers were promoted above them while they were abroad, that they now have less autonomy in the job, and that they now have less incommon with their friends than before the foreign assignment(s). Some human resource practices for smoothing reentry include providingexpatriates with ample advance notice of when they will return, maximum information about their new jobs, placement in jobs that willbuild on their foreign experiences, housing assistance, and a reorientation program, as well as requiring frequent visits to headquarters andusing a formal headquarters mentor to look after their interests while they are abroad.Learning Outcome:Identify and discuss the components of the global human resource management process97) What are the current trends in expatriate allowances? What are the reasons for these changes?Answer:Spurred by cost pressures and unstable job markets, MNEs have begun reducing the range and extent of expatriate allowances.Foreign service premiums, for example, have been phased out by many companies. Globalization moves many employees to sustain theircareers by working abroad, while more individuals see international assignments as a chance to develop business skills and leadershipqualities. These folks are more willing to go abroad for less compensation; in fact, a recent survey found that 81 percent believe thatbroadening their horizons and gaining life experience, not financial gain, is the most important benefit of a foreign assignment. Cost-reduction techniques include dropping benefits and allowances and cutting "hardship" allowances for locales that are not as difficult as theyonce were, such as an assignment to Prague or Shanghai. Pressure to reduce pay and perquisites will continue, driven by cost control andskillful employees from developing countries eager to work worldwide.Learning Outcome:Identify and discuss the components of the global human resource management processAACSB:Reflective thinking skills

Last update on 25/08/2022

Índice Show

Reverse culture shock
Expat repatriation: the logistics of relocation
Repatriating your funds
Challenge #1: Fitting in
Challenge #2: A language barrier
Challenge #3: Being lonely
Challenge #4: Finances & money management
Challenge #5: Healthcare
Challenge #6: Safety

Thinking about going home? We have put together a handy list of the main challenges of expat repatriation and how to overcome them.

Reverse culture shock

Many people expect the culture shock that comes with moving abroad. It can take months to overcome language barriers and social differences while dealing with separation from family and friends. However, reverse culture shock, which can follow expat repatriation, may come as a surprise.

Things that were once familiar might seem unusual. You may have to re-acclimatize to a warmer or colder climate. Your friends and family members could be in different stages of their lives.

The important thing to remember is that it’s normal to feel disconnected when you first return home; keep in mind that this feeling will pass. Staying in touch with the latest news from your home country in the weeks leading up to moving home can help. Don’t hesitate to keep an eye and an ear on the place you’re leaving; whether it’s reading the news or keeping up on the latest movies, you don’t need to let go of your adopted home completely.

Make sure you also say a proper goodbye to your adopted country.

Expat repatriation: the logistics of relocation

While there are more processes involved in emigration than expat repatriation — given that you won’t have to consider things like visas or healthcare when you return home — there is still plenty to think about and organize.

Packing and transporting your belongings, selling your foreign property, purchasing or renting accommodation for your return, and finding employment should all be priorities. Planning expat repatriation well in advance and tackling it one stage at a time makes it more manageable and less stressful.

Friends and family may also be able to help ease your transition. They can, perhaps, utilize their business contacts or view prospective homes on your behalf. The relationships you’ve made in the country of your emigration may also be beneficial. In particular, locals can give you specialist insight into areas like the housing market and removal firms.

Repatriating your funds

After spending a prolonged period abroad, you may have built up savings in a foreign bank account. You may also have the proceeds of a foreign property sale to manage. Taking the time to look into your options when moving these funds home can leave you thousands better off; it pays to be proactive during the process of expat repatriation.

While you can use your bank to manage this kind of transfer, reputable currency brokers are able to secure competitive exchange rates and give you access to specialist services. One such service is the option of fixing a favorable rate up to two years in advance of a trade. As exchange rates are highly volatile, having the chance to lock in a rate when it moves in your favor means you can maximize your money when it’s time to move it home.

Additionally, currency brokers don’t charge the transfer fees levied by most banks. That way, you’ll see even more savings — which makes returning from abroad that little bit easier.

Moving abroad is often an overwhelming experience for any expatriate. The unfamiliar landscape, a limited social network, and new cultures and languages can often feel burdensome on mamovinny people. There will be challenges and obstacles when it comes to the relocation process. You also have to be patient with the adjustment period once relocated. Many people will react to stress in different ways. Challenges will vary depending on location, cultures, languages, personal mannerisms, and general customs of the country. However, there are a few common challenges faced by expats when relocating.

We have put together a list of the five most common challenges faced by expatriates. It will aid in your settlement into your new country and allow you to enjoy this adventure. Note that the challenges below are in no particular order of importance.

Challenge #1: Fitting in

As an expatriate moving abroad, there is a big chance that you are leaving an extensive social & professional network back home. It can have a significant effect on someone. Especially if you are someone that places a high significance on these relationships. Don’t fear; you are not the first, nor the last expatriate to have these feelings. Many expatriates do have a fear of not fitting in a new country.

Challenge #2: A language barrier

If you are moving to a country that speaks a different language, settling in and befriending locals can be daunting. It is ultimately unavoidable if you don’t know the local language beforehand. Read all about our advice on learning a new language while living abroad to facilitate the process and jump-start the learning curve for your new life abroad! We do recommend acquiring a rudimentary level of the foreign language before you take off. It will facilitate the entire process of moving overseas!

Challenge #3: Being lonely

Don’t let the fear or the potential of being lonely prevent you from embarking on a new adventure. Don’t even make it impede your decision to become an expatriate in a foreign country. Feeling alone is one of the common challenges faced by expatriates when they first move abroad. The key is to build strong relationships with the people around you. It will surely take some time, but it is essential to form some bonds with the people and the city. Besides, it’s your new home!

Challenge #4: Finances & money management

Organizing your finances, taxes, and money management can be daunting when you are living in your home country. But adding overseas travel and living abroad to the mix can get complicated. As an expatriate, you will have to decide if you will become a non-resident for tax purposes. Talk to an expat tax expert – do not try to do it on your own. We have a list of some great expat tax advisors at Expat Financial.

You will also have to advise your bank that you will be living abroad. Once in your new country, you probably have to set up a new banking account. Most countries will want to see your visa documents and also some proof that you will be living there. It may be useful to keep your bank account back home as well. Having a bank account in your new host country in the local currency will still be invaluable and probably save you on foreign exchange. You may also have to move your investment account as well. So talk to your investment advisor and tax accountant to see what solution works best.

Challenge #5: Healthcare

Making sure you have proper global health insurance while living abroad. It is one of the biggest concerns that many expatriates worry about when it comes to relocation. Local plans in your new host country may not be up to your standards. Local hospitals may only provide basic coverage. Most expats want to have access to private healthcare both in the host country, regionally, and back home. Have an international health insurance plan in place before leaving abroad. It will alleviate stress with finances, medical aid, and give you peace of mind during relocation. Contact us today to discuss all your international insurance needs!

Challenge #6: Safety

Yes, I know we said only five challenges, but we needed to add expat safety to the article. As discussed in our expat safety page, personal safety is a very high priority for individual expats and expatriate employers and global mobility managers. The world is safer now than it has been in the past. But today’s security concerns and challenges range from terrorism, bombings, assaults, thefts, and much more.

Expats must prepare for the worst when moving abroad. Check out the local security in their new home country through both free and even paid information sources. Even first world countries can be fraught with danger, from terrorist attacks in Europe to mass shootings in the USA. Expat safety should be your priority if you are moving abroad or already living the expat life.