Living and Working Overseas
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- Berenice Estella Stanley
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1 Slide 1 Living and Working Overseas Increase the probability of success & An Expatriate Experience in China Spend time discussing an International assignment from both a company and personal perspective Leave time for questions
2 Slide 2
3 Slide 3 International Assignments The number and availability of international assignments continue to increase. The expense is significant Success rates For many companies a key component to growth is overseas BRIC and others A 2006 study by PWC concluded that up to 40 percent of expatriate managers terminate their assignments early, costing their companies between $50,000 and $150,000 and derailing their careers. 50 percent of those who do not terminate their assignments early function at a low level of effectiveness.
4 Slide 4 Why Expats? Regulatory Environment here and abroad undergo continuous changes higher levels of scrutiny (FCPA) differing requirements (Tax Treaties, Visas, Travel restrictions) Talent Shortage need for Global leadership/experience preparation of a next generation of workers) Internal expectations and needs Standard business practice but must demonstrate a ROI Business Environment Globalization creating new markets and opportunities Regulations, tax treaties. Undergoing changes. Local statutory requirements must be met.
5 Slide 5 Costs Salary International Assignment Allowance Hardship Allowance Goods & Services Allowance Housing Vehicle Tax Equalization Tax Preparation Storage of Household Belongings Family Trips to US R & R Trip Children s s Education Assignment Allowance 10% to 20% up lift Good & Services (Family status dependent, continually adjustable) Housing (Can be egregiously expensive) Vehicle (Short term lease and often involves a driver as well) Household storage or management Air Fare Class Children s Education (Cost of very expensive private schools)
6 Slide 6 Why do so many expatriates fail? Unprepared Unrealistic expectations Despite the high failure rates and associated costs, many companies do little to no training of managers for international assignments. I have some suggestions on things that I ve seen work well. What can and should a company and the manager do to prepare for an overseas assignment?
7 Slide 7 What Can and Should be Done Find the right candidate Prepare the employee Support the employee Don t t forget about the family Repatriation What s a company to do? What s the plan?
8 Slide 8 Find the Right Candidate Thoughts on how to identify candidates. Personal Characteristics Ideal application for a Structured Behavioral Interview Traditionally reserved for external candidates
9 Slide 9 Key Characteristics Adaptability Flexible Ability to work with diverse groups of people Ability to adjust to change? Ability to work with a diverse group of people Willing to put the time and energy into learning a new language and new culture? Ability to recognize business & society norms different than their own. Is the candidate easily frustrated by things that are not done the t way they are accustomed to having them done? Work well with people of other cultures? Will an international assignment have a positive effect on the career? c Is the spouse and family supportive of the decision to pursue an international assignment? Ensure that the employee has weighted its costs and benefits by reviewing career goals, engaging in self-analysis, and discussing opportunities with their mentor and family. Make new friends, what you initially think is often wrong, diversity to the extreme, spitting, bribery Assimilate & accept Once again stress the family. Most of the failures to assimilate was due to family concerns. These are things we should be asking our candidates if they have done
10 Slide 10
11 Slide 11 Other Pre Move Thoughts Learn the Language and Etiquette of the Host Country (There are outstanding resources available) acceptable greetings and the accompanying body language (bow, handshake, smile); the proper use of business cards; the country's dress code; the country's concept of time; proper dining manners; gift giving protocol; and Religious and political taboos. Develop an Awareness of Other Cultures and Value Systems Cross Cultural Training Reading Expat Community On Line
12 Slide 12 3 Phases Start of Assignment (This wears off quickly) What was I thinking? (This can continue indefinitely) Adjustment/Acceptance or Flee (Usually within 3 to 6 months) Progress through three major stages: entry, disillusionment, and adjustment/termination. Stay in touch with employee and their manager. Entry stage of an international assignment, the expatriate is usually entranced by a new culture and the excitement of travel. This phase is quickly followed by a period of disillusionment. No longer finds it romantic to try to converse with a limited vocabulary, social norms, pollution, or to find the way around a new city without proper directions. Expatriates in this stage experience culture shock and long for the familiarity of their home country. Generally, about three to six months after the beginning of their international assignment, expatriates either have terminated the assignment early and returned home or have begun to adjust to life in the host country.
13 Slide 13
14 Slide 14 Personal Experience with Asia Pre Move Physical Move Settling in Repatriation
15 Slide 15
16 Slide 16 Pre Move Cross Cultural Training for employee & spouse House hunting trip From surveys of Expats: Done well, cross-cultural training makes moves easier, especially when it focuses on practical information about the host country. Culture, food, language, pollution, social norms Done poorly, they add, it's a waste of money and time. Spend the House hunting money
17 Slide 17 Goat Lungs
18 Slide 18 Physical Move Help the employee to determine what is really important? Cost is prohibitive Decide on what is needed by location & housing type More to deal with Get professional help Air Containers Sea Containers Packing..
19 Slide 19 Settling in Basics Personal Norms Business Norms Stress The basics can be painful Shopping Transportation Phones Banking Workplace Safety Pollution (Air & Water) What is appropriate in business & what is expected AMCHAM, American Clubs, Local Staff, Other Expats, Embassy Staff
20 Slide 20 Cope with Stress regular physical exercise; meditation and relaxation techniques; expressing anger and frustration in a diary rather than to host country nationals; checking into a home country hotel for the weekend; going to an international club and only speaking with people from one's home country; watching videos in your native language;
21 Slide 21 Black Silk Worms Scorpions Dung Beetles
22 Slide 22 Repatriation Critical element, more than 15% and some say as many as 30% leave their organizations within 1 year Why and what can be done. As a company you ve spent $500K or more on a 2 year assignment, PWC in 2006 estimated $310,000 per year Out of sight out of mind Company should have someone responsible for each individual expat (sponsor/mentor) Expat is ultimately responsible for his or her own career Begin the reintegration prior to the expat arriving back in the US (12 months in advance).
23 Slide 23 Thank You HR Search; Contract HR; Consulting and Research both international especially in Asia with resources in Atlanta and in China.
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