Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/1 Chapter 7 Re-entry and career issues

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/2 Chapter objectives the process of re-entry or repatriation job-related issues (cont.) Whereas the preceding chapters concentrated on the management and support of international assignments, this chapter deals with what could be called the post-assignment stage. Re-entry, though, raises issues for both the expatriate and the multinational, some of which may be connected to events that occurred during the international assignment. We treat this stage as part of the international assignment. We examine:

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/3 Chapter objectives (cont.) social factors, including family factors that affect re-entry and work adjustment multinational responses to repatriate concerns return on investment (ROI) and knowledge transfer designing a repatriation programme.

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/4 Re-entry Expatriation process also includes repatriation: the activity of bringing the expatriate back to the home country Re-entry presents new challenges –May experience re-entry shock –Some exit the company

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/5 Figure 7-1: Expatriation includes repatriation

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/6 Figure 7-2: The repatriation process

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/7 Repatriation phases Preparation - developing plans for the future; gathering information about the new position Physical relocation Transition Readjustment - coping with change Use of relocation consultants and removal firms

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/8 Individual reactions: job-related Career anxiety –No post-assignment guarantee of employment –Loss of visibility and isolation –Changes in the home workplace Work adjustment –The employment relationship and career expectation –Re-entry position –Devaluing of international experience Coping with new role demands Loss of status and pay

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/9 Figure 7-3: The repatriate’s role

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/10 UK repatriate study Survey of 124 recently repatriated employees Data analysis indicated five predictors for repatriate maladjustment (in ranked order): –Length of time abroad –Unrealistic expectations –Downward job mobility –Reduced work status –Negative perceptions of employer’s support N. Forster (1994) The Forgotten Employees? The Experience of Expatriate Staff Returning to the UK, International Journal of Human Resource Management, 5 (2): 408

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/11 Figure 7-4: The readjustment challenge

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/12 Individual reactions: social factors International experience can distance the repatriate (and family) socially and psychologically (eg. Kingpin syndrome) Each family member undergoing readjustment Re-establishing social networks can be difficult Effect on partner’s career

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/13 Multinational responses Staff availability –How repatriation is handled is critical Return on investment (ROI) –Defining ROI in terms of expatriation –Gains accruing through repatriated staff Knowledge transfer –A one-way activity? –Tacit and person-bound?

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/14 Difficulties in measuring ROI Receiving feedback from the business unit concerned Tracking international assignments in a systematic way No formal planning Lack of objective measures Too many decisions made without cost considerations From responses to GMAC-GRS 2002 survey

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/15 Table 7-1: Topics covered by a repatriation program

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/16 The use of mentors Aims to alleviate the ‘out-of-sight, ‘out-of- mind’ feeling by keeping expatriate informed Mentor should ensure that the expatriate is not forgotten when important decisions are made re positions and promotions Effective mentoring needs managing

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/17 Chapter summary The repatriation process. One may conclude that in re-entry, the broader socio-cultural context of the home country takes a backstage position – unlike in the expatriation adjustment phase, where the foreign culture can be overwhelming. Cultural novelty has been found to affect adjustment and, for the majority of repatriates, coming home to the familiar culture may assist in readjustment. Indeed, given the more profound effect that job- related factors appear to have, re-entry shock is perhaps a more accurate term to describe the readjustment process experienced upon repatriation. (cont.) This chapter has been concerned with the repatriation process. We have covered:

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/18 Chapter summary (cont.) Job-related issues centered on career issues upon re-entry. Factors that affected career anxiety were no post-assignment guarantee of employment, fear that the period overseas had caused a loss of visibility, changes in the home workplace that affect re-entry positions and the employment relationship. The re-entry position was an important indicator of future career progression and the value placed on international experience. Coping with new role demands was another factor in readjustment, along with loss of status and pay. (cont.)

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/19 Chapter summary (cont.) Social factors explored were loss of social standing – the kingpin syndrome – and the accompanying loss of the expatriate lifestyle. Family readjustment was also important. A specific aspect was the effect of the international assignment upon the spouse/partner’s career, such as being re-employed and having international experience recognized. (cont.)

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/20 Chapter summary (cont.) Multinational responses to repatriates’ concerns focused on re- entry procedures. We looked at how repatriation affected staff availability, whether companies were measuring and obtaining a return on investment through international assignments and the contribution of repatriates to knowledge transfer. Designing effective repatriation programs, including the use of mentors. (cont.)

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/21 Chapter summary (cont.) Although the focus of this chapter has been repatriation in the general sense, the issue of career expatriates should be raised. The repatriation literature reviewed in preparation for this chapter makes little mention of the process of managing the return of those who have been part of the international team of managers (or cadre) – those who have worked outside their home countries for lengthy periods of time. For this strategically important group of employees, at some point repatriation may coincide with retirement. One is left with the impression that those who return to retire in their home country are no longer of concern to their firms. (cont.)

Use with International Human Resource Management ISBN X Published by Thomson Learning © Peter Dowling and Denice Welch 7/22 Chapter summary (cont.) However, one could expect that these individuals would require special counselling to assist not only the transition back to the home country, but also from work to retirement. Viewing repatriation as part of the expatriation process, as suggested in Figure 7-1, should remind those responsible for expatriation management of the need to prepare repatriates for re- entry and to recognize the value of the international experience to both parties.