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Chapter 6

Functions of HRM and how HRdepartment handle them

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Re-entry

Expatriation process also includes repatriation: The activity of bringing the expatriate back to the

home country.

Re-entry presents new challenges: Expatriates may experience re-entry shock or

reverse cultural shock.

Some exit the company.

The multinationals ability to retain current andattract future expatriates is affected by the

manner in which it handles repatriation.

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Expatriation Includes Repatriation

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The Repatriation Process

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Repatriation Phases

1. Preparation Developing plans for the future, andgathering information about the new position

2. Physical relocation Removing personal effects,breaking ties with colleagues and friends, and traveling

to the next posting, usually the home country

3. Transition Settling into temporary accommodationwhere necessary, making arrangements for housing and

schooling, and carrying out other administrative tasks

(e.g., renew drivers license, applying for new health

insurance, banking, etc.)

4. Readjustment Coping with changes (e.g., companychanges, reverse culture shock, career demands, etc.)

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Repatriation Challenges

Little evidence in the literature that multinationals

view the preparation for repatriation as important as

pre-departure training.

Readjustment is the least understood and mostpoorly handled. 52% of 287 surveyed subsidiaries reported repatriate re-

entry problems (Harzing, 1996).

44% turnover rate among 181 multinationals surveyed by

GMAC-GRS 2002 50% leave the firm within one year

39% of surveyed firms did not know their turnover rates

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Individual Reactions: Job-related

Factors 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 the

international experience

Coping with new role

demands Role behavior

Role clarity

Role discretion Role conflict

Loss of status and pay Autonomy

Responsibility

Lower pay in absoluteterms

Drop in housing conditions

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The Repatriates Role

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The Readjustment Challenge

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Individual Reactions: Social Factors

International experience can distance therepatriate (and family) socially andpsychologically (e.g., Kingpin syndrome,financial loss)

Each family member undergoing readjustment

Re-establishing social networks can be difficult

Effect on partners career

Recent research indicates a decrease in spousalassistance upon re-entry (e.g., job search, resumepreparation and career counselling)

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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?

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Designing a Repatriate Program

Topics covered by a repatriation program

Repatriation, physical relocation and transition information that the

company will help with

Financial and tax assistance, e.g., benefit and tax changes, loss of

overseas allowances, etc.

Re-entry position and career-path assistance

Reverse cultural shock, including family disorientation

School systems and childrens education and adaptation

Workplace changes, e.g., corporate culture, structure,

decentralization, etc.

Stress management and communication-related training

Establishing networking opportunities

Help in forming new social contracts

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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 regarding positions

and promotions

Effective mentoring needs managing

Mentoring duties include: Maintaining contact with the expatriate throughout the

assignment Updating developments in the home country

Informing management developments

Providing assistance in the repatriation process

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Factors Affecting Mentoring

Size of expatriate workforce Firms with over 250 expatriates are more likely

to assign mentors.

Who is responsible for repatriates Corporate HR or a separate international

assignment unit is more likely to provide mentors

than the divisional level.

Company nationality European firms are more likely to use mentors

than U.S. firms.