Re-Entry and Career Issues Chapter Eight Re-Entry and Career Issues

Chapter Learning Objectives After reading this chapter, you should be able to: detail the process of re-entry or repatriation discuss job-related issues outline social factors, including family factors that affect re-entry and work adjustment

Chapter Learning Objectives suggest multinational responses to repatriate concerns discuss staff availability and career issues define return on investment (ROI) and knowledge transfer outline the process of designing a repatriation program

Terms repatriate knowledge and re-entry shock skills: repatriates market specific knowledge personal skills job-related management skills network knowledge general management capacity re-entry shock repatriates holding pattern kingpin ‘trailing’ partner ROI mentor knowledge transfer boundaryless career ‘protean’ career international itinerants

Opening Vignette Coming Home? challenges in the post-assignment phase of international assignments = CULTURE SHOCK

Expatriation Includes Repatriation (Figure 8-1)

Repatriation activity of bringing the expatriate back to the home country

Re-entry Culture Shock unaware of adjustment difficulties upon return re-entry adjustment

Re-entry Culture Shock Factors that contribute extended assignments/unconscious internalizing of the countries customs and practices lack of respect and use for international experience career uncertainties, loss of status, poor planning for repatriate and families return

Re-entry Culture Shock Can lead to feeling alienated and uprooted career, performance and commitment problems high percentage leaving company shortly after their return

Repatriation Activities and Practices (Figure 8-2)

Re-entry Culture Shock overemphasis on a home can lead to problems with performance on assignment and premature return overemphasis on host activities can lead to a second culture shock upon return

Re-entry Culture Shock the goal of expatriation/repatriation practices is the successful integration of home and host experiences balanced set of transitions

Repatriation Process- Phase I Pre-departure Pre-departure training (including career and financial planning)

Repatriation Process- Phase I Creating a network of communication links for expatriates to be able to keep up with the changes assign home mentors provide web-based indices establish communication protocols

Repatriation Process- Phase II During assignment “home leave” work related information exchanges mentor communications systematic pre-return orientation process

Repatriation Process- Phase III Upon return new job assignment organizational reconnection assistance with non-work factors opportunities to recognition and sharing of experiences

Individual Reactions to Re-entry Moderators of re-entry readjustment Job‑Related Factors Social Factors

Factors Influencing Repatriate Adjustment (Figure 8-3)

Job Related Factors career anxiety work adjustment coping with new role demands loss of status and pay

Career Anxiety expatriates two motivators for accepting an international assignment: career advancement and financial gain. prime factor in re-entry is career anxiety

Career Anxiety no post-assignment guarantee of employment fearing a loss of visibility changes in the home workplace

No Post-Assignment Guarantee of Employment 68 % of respondents in the 2004 GMAC USA survey did not provide post-assignment employment guarantees guarantee of positions decreasing; USA, UK

No Post-Assignment Guarantee of Employment Europeans have a labour contract, guarantee of job upon return Continental European firms provide guarantees to attract expatriates

Fearing a Loss of Visibility loss of visibility and isolation ‘out of sight, out of mind’

Fearing a Loss of Visibility Depends on various elements the amount of contact with the home organization the position level concerned aware well in advance of the type of re-entry job awaiting

Changes in the Home Workplace restructuring (a merger, acquisition, sale of divisions or business units, closure of a plant) company undergoing turbulence, such as downsizing. potential or real job loss

Work Adjustment the employment relationship re-entry position devaluing the overseas experience

The Employment Relationship Individuals perceptions regarding expected career progression influenced by top management/IHRM clear messages that an international assignment is a condition for career progression need for a global orientation or mindset; link between international experience and global managers recruitment and selection stage; psychological contract

Re-entry Position Fears peers are promoted ahead of the repatriated manager placed in a position that is a demotion/less senior level

Re-entry Position IHRM issues match the repatriate’s career expectation ‘headhunting’ repatriates

Career Impacts of International Assignments (Table 8-1)

Devaluing the Overseas Experience promotion upon re-entry signifies that international experience is important and valued by the organization

Devaluing the Overseas Experience Re-entry positions can give impression that experience is devalued reduced responsibility and status duties not using newly gained international expertise work colleagues lack of interest

Coping with New Role Demands mismatch of expectations time in the foreign location; significant changes in behaviour.

The Repatriate Role (Figure 8-4)

Role Clarity role clarity, rather than role conflict affects adjustment clarify job description

Role Discretion refers to the freedom to adjust the work role to fit the individual, making it easier for the person to utilize past, familiar behaviour, thus reducing the level of uncertainty in the new job that assists adjustment. positive impact on adjustment

Predictors for Repatriation Maladjustment length of time abroad unrealistic expectations of job opportunities in the home company downward job mobility reduced work status negative perceptions of the help and support provided by employers during and after repatriation.

The Readjustment Challenge (Figure 8-5)

Loss of Status and Pay life on a scale that may be significantly less comfortable pay is usually lower in absolute terms total compensation package may allow for increased savings housing prices and issues

Social Factors family adjustment social networks effect of partners career

Social Factors socially and psychologically distanced social disappointment financial loss of the compensation premium, housing subsidy and related benefits

Family Adjustment each family member is experiencing their own readjustment problems reduced family income

Social Networks internet, wireless and mobile phone technology, digital cameras and email, significantly easier to stay in touch changes with family friends ( i.e. moved, new jobs) level of MNE support is withdrawn children find difficulties regaining peer acceptance

Effect on Partner’s Career difficulties in re-entering the workforce negative experience of job search declining MNE support

Multinational Responses Maximize benefits of the international assignment staff availability return on investment knowledge transfer

Staff Availability and Career Expectations Re-entry positions signal the importance given to international experience impacts future staff availability

Linking Repatriation Process to Outcomes (Figure 8-6)

Boundaryless Career shifts occurring in the employment relationship (job for life to job mobility) sequence of job opportunities that go beyond the boundaries of single employment settings

Boundaryless Careerist highly qualified mobile professionals, moving between organizations, transferring across boundaries to develop career competencies and labor market value. international assignments are boundaryless in that the person is placed in another organization

Protean A self-directed continuous learning career self –employed, contract work commitment to career and profession ( not organization) develop their own intercultural and managerial skills

Itinerants Two disadvantages lack of firm knowledge selecting and controlling

Career Practices Expatriates with traditional career expectations and long-term employment relationship aspirations; IHRM activities include common career paths career planning job posting lateral moves career counseling succession planning performance management and career planning link

Return on Investment cost containment continues to drive assignment trends continued use of expatriates, must ensure the organization benefits

Return on Investment U.S. MNEs spend one million dollars on each expatriate over the duration of a foreign assignment. Black and Gregersen

Return on Investment Definition a cost-benefit analysis of financial and non-financial data, measured against the purpose of the assignment. McNulty and Tharenou

Difficulties Measuring MNEs Repatriate ROI receiving feedback from the business unit systematically tracking international assignments no formal planning lack of objective measures decisions being made without realizing the costs globalization is a ‘must’ so the ROI almost doesn’t matter

Knowledge Transfer ensure international assignments are a two way process transferring knowledge and competence back to the organization

Repatriate Knowledge Categories market specific knowledge personal skills job-related management skills network knowledge general management capacity

Knowledge Transfer IHRM practices that combine a unified expatriation/ repatriation cycle emphasizing knowledge transference selection pre-departure in country training mentoring designing the international assignment reentry training returnee job assignment

Knowledge Transfer More formal activities include “action learning” seminars by repatriates knowledge disseminating teams databases, index the expertise of repatriates

Topics Covered by a Repatriation Program (Table 8-2)

Mentor senior position from the sending work unit and knows the expatriate personally must be managed

Mentor alleviates the ‘out-of-sight, out-of-mind’ provides information on a regular basis provides updates regarding positions and promotions

Repatriate Mentor Duties maintaining contact with the expatriate throughout the assignment ensuring expatriates are kept up to date with developments in the home country ensuring expatriates are retained in existing management development programs assisting expatriates with the repatriation process and position

Proactive Repatriation Strategies managing expectations career planning written repatriate agreements mentoring programs

Proactive Repatriation Strategies extended home visits reorientation programs personalized reorientation to deal with the emotionally charged issues of social readjustment

Proactive Repatriation Strategies personalized financial and tax advice and support adjustment period visible and concrete expressions of the repatriate’s value to the firm

Discussion Questions What factors contribute to re-entry shock? 2. How can multinationals assist dual career couples’ repatriation? 3. Placing value on the international assignment assists repatriate retention. Discuss this statement.

Discussion Questions What are the elements of a good mentoring system for international assignees? 5. What aspects would you include in a pre-repatriation program?

Case: Repatriation and Loss Prevention at ISCAM What could ISCAM have done throughout Wayne’s assignment and upon his return to Greater Sudbury to arrange a smother repatriation for him? 2. What could or should Wayne have done to help himself and his family to prepare for their return to Greater Sudbury? To what extend is it the company’s fault that Wayne and his family find it difficult to adjust to their lives back in Greater Sudbury?

Case: Repatriation and Loss Prevention at ISCAM 3. What could the company have done to help Wayne’s family to overcome its re-adjustment problems? Where or what are the limits for a company and its responsibilities for expatriates’ family members and their repatriation?