1. Recruiting and Selecting Staff for International Assignments
Chapter 5
Recruiting and Selecting Staff for International Assignments
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2. Chapter Objectives
In Part I, we demonstrated how people play a central role in sustaining international operations. As international assignments are an important vehicle for staffing, it is critical that they are managed effectively, and the expatriates are supported so that performance outcomes are achieved.
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3. Chapter Objectives (cont.)
The focus of this chapter is on recruitment and selection activities in an international context. We will address the following issues:
The myth of the global manager
The debate surrounding expatriate failure
Factors moderating intent to stay or leave the international assignment
Selection criteria for international assignments
Dual-career couples
Gender issues for international assignments
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4. The global manager
Myth 1: There is a universal approach to management.
Myth 2: People can acquire multicultural adaptability and behaviors.
Myth 3: There are common characteristics shared by successful international managers.
Myth 4: There are no impediments to mobility.
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5. Current expatriate profile
Table 5-1
Current expatriate profile
Source: based on data from Global Relocation Trends: 2005 Survey Report, GMAC Global Relocation Services, National Foreign Trade Council and SHRM Global Forum, GMAC-GRS 2006, GMAC GRS.
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6. Marital Status 53% Married male 8% Married female
7% Male with significant other
4% Female with significant other
18% Single male
10% Single female
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7. Expatriate Failure Definition: Premature return of an expatriate
Under-performance during an international assignment
Retention problem upon completion
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8. Expatriate Failure Rates
Recall Rate Percent Percent of Companies
US Multinationals
% %
% %
< 10% %
European Multinationals
% %
6 - 10% %
< 5% %
Japanese Multinationals
% %
6 – 10% %
< %
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9. European Multinationals: Inability of spouse to adjust.
Reason for Expatriate Failure
US Firms
Inability of spouse to adjust
Manager’s inability to adjust
Other family problems
Manager’s personal or emotional immaturity
Inability to cope with larger overseas responsibilities
Japanese Firms
Inability to cope with larger overseas responsibilities
Difficulties with the new environment
Personal or emotional problems
Lack of technical competence
Inability of spouse to adjust
European Multinationals: Inability of spouse to adjust.
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10. Reasons for Early Return
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11. Direct Costs of Expatriate Failure
Airfares
Associated relocation expenses
Salary and benefits
Training and development
Averaged $250,000 per early return
Costs vary according to:
Level of position
Country of destination
Exchange rates
Whether a ‘failed’ manager is replaced by another expatriate
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12. Indirect Cost of Expatriate Failure
Damaged relationships with key stakeholders in the foreign location
Negative effects on local staff
Poor labor relations
Loss of market share
Negative effects on expatriate concerned
Family relationships may be affected
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13. International assignments: factors moderating performance
Figure 5-1
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14. Why consider the psychological contract?
Nature, location and duration of an international assignment may provoke intense, individual reactions to perceived violations
Expatriates tend to have broad, elaborate, employment relationships with greater emphasis on relational nature
Expectations and promises underpin this relationship
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15. The Employment Relationship
The nature of the employment relationship
Relational: broad, open-ended and long-term obligations
Transactional: specific short-term monetized obligations
The condition of the relationship
Intact: when employee considers there has been fair treatment, reciprocal trust
Violated: provoked by belief that the organization has not fulfilled its obligations
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16. Likelihood of Exit
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17. The phases of cultural adjustment
Figure 5-2
The phases of cultural adjustment
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18. The Phases of Adjustment
The U-Curve is not normative
The time period involved varies between individuals
The U-Curve does not explain how and why people move through the various phases
It may be more cyclical than a U-Curve
Needs to consider repatriation
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19. Factors in expatriate selection
Figure 5-3
Factors in expatriate selection
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20. Using Traits and Personality Tests to Predict Expatriate Success
Although some tests may be useful in suggesting potential problems, there may be little correlation between test scores and performance
Most of the tests have been devised in the United States, thus culture-bound
In some countries, there is controversy about the use of psychological tests ( different pattern of usage across countries)
Use of personality traits to predict intercultural competence is complicated by the fact that personality traits are not defined and evaluated in similar ways in different cultures
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21. Mendenhall and Oddou’s Model
Self-oriented dimension
Perceptual dimension
Others-oriented dimension
Cultural-toughness dimension
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22. Harris and Brewster’s selection typology
Table 5-2
Harris and Brewster’s selection typology
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23. Solutions to the Dual-career Challenge
Alternative assignment arrangements
Short-term
Commuter
Other (e.g. unaccompanied, business travel, virtual assignments)
Family-friendly policies
Inter-company networking
Job-hunting assistance
Intra-company employment
On-assignment career support
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24. Barriers to females taking international assignments24
Table 5-3
Barriers to females taking international assignments
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25. Equal Employment Opportunity Issues
Cultural Variations
Law and enforcement
Social values
Corporate practices
The United States
EEOA within the country
International approach
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26. Chapter Summary
This chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered:
Four myths related to the concept of a global manager
The debate surrounding the definition and magnitude of expatriate failure.
(cont.)
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27. Chapter Summary (cont.)
Cultural adjustment and other moderating factors affecting expatriate intent to stay and performance.
Individual and situational factors to be considered in the selection decision.
Evaluation of the common criteria used revealed the difficulty of selecting the right candidate for an international assignment and the importance of including family considerations in the selection process.
(cont.)
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28. Chapter Summary (cont.)
Dual-career couples as a barrier to staff mobility, and the techniques that multinationals are utilizing to overcome this constraint.
Female expatriates and whether they face different issues to their male counterparts.
While our appreciation of the issues surrounding expatriate recruitment and selection has deepened in the past 20 years, much remains to be explored.
The field is dominated by US research into predominantly US samples of expatriates, although there has been an upsurge in interest from European academics and practitioners.
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29. Chapter Summary
Staff selection remains critical. Finding the right people to fill positions, particularly key managers – whether PCN, TCN or HCN – can determine international expansion.
However, effective recruitment and selection are only the first step.
We will explore in the next chapters that maintaining and retaining productive staff are equally important.
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30. Chapter Summary Corporate philosophy on recruiting and selection
Selection criteria and issues of concern
Local and home countries’ policies on foreign labor
Variations in national labor law and labor markets
Inter-company networking
Intra-company arrangement
Career assistance programs
Training and continuous adaptation
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31. Discussion Questions
What is the difference between a global manager and a global mindset?
Should multinationals be concerned about expatriate failure? If so, why?
What are the most important factors involved in the selection decision?
Are female expatriates different?
Discuss the proposition that most expatriate selection decisions are made informally, as suggested by the ‘coffee-machine’ solution.
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