12.2 International assignment management
9 min read•august 20, 2024
is a crucial aspect of global HR strategy. It involves sending employees to work in foreign countries, selecting the right candidates, and providing comprehensive support throughout the assignment.
Effective international assignment management requires careful planning, from selection and preparation to compensation and . It aims to maximize the benefits of global mobility while addressing challenges like and family adjustment.
Types of international assignments
- International assignments involve sending employees to work in foreign countries for specific periods of time, which can range from a few months to several years, and are critical for multinational organizations to expand their global presence, transfer knowledge, and develop global leadership capabilities
- Common types of international assignments include (usually less than 12 months), (typically 1-5 years), and (indefinite relocation to a foreign country)
- Other types of international assignments include (regular travel between home and host country), (alternating periods in home and host country), and (working remotely for a foreign subsidiary or team)
Selection for international assignments
- Selecting the right candidates for international assignments is crucial for the success of the assignment and the organization's global strategy, and involves assessing a combination of technical skills, cross-cultural competencies, and personal characteristics
Candidate assessment criteria
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- Technical skills and expertise required for the specific role and responsibilities of the assignment
- Leadership potential and ability to navigate complex global business environments
- Adaptability and resilience to cope with the challenges of living and working in a foreign country
- and sensitivity to effectively interact with people from diverse backgrounds
Candidate personal characteristics
- Open-mindedness and curiosity to learn about and embrace different cultures and ways of living
- Emotional intelligence and interpersonal skills to build relationships and collaborate with colleagues and stakeholders in the host country
- Flexibility and tolerance for ambiguity to adapt to changing circumstances and overcome obstacles
- Self-awareness and self-management to maintain personal well-being and work-life balance during the assignment
Family considerations in selection
- Willingness and readiness of the candidate's spouse or partner to relocate and adapt to the host country
- Educational and developmental needs of the candidate's children and availability of suitable schools in the host country
- Health and special needs of family members and access to appropriate medical care in the host country
- Career aspirations and employment opportunities for the spouse or partner in the host country
Preparation for international assignments
- Comprehensive preparation programs are essential to help assignees and their families adjust to the cultural, linguistic, and practical aspects of living and working in a foreign country, and to minimize the risk of assignment failure or premature return
Cross-cultural training programs
- Pre-departure to develop cultural awareness, understanding of the host country's values, norms, and business practices, and skills for effective cross-cultural communication and collaboration
- In-country cultural immersion experiences to gain first-hand exposure to the local culture, customs, and way of life
- Ongoing cultural coaching and support throughout the assignment to help assignees navigate cultural challenges and adapt to the host country environment
Language training and support
- Pre-departure language training to develop basic proficiency in the host country language for daily life and work interactions
- In-country language immersion programs to accelerate language acquisition and fluency
- Language support services (translation, interpretation) to facilitate communication and understanding in the workplace and community
Pre-departure practical assistance
- Logistical support for visa and work permit applications, relocation, housing, and schooling arrangements
- Orientation sessions on the host country's healthcare system, banking, transportation, and other essential services
- Assistance with tax planning, insurance, and other financial and legal matters related to the international assignment
Compensation for international assignments
- Designing an effective compensation package for international assignees is critical to attract and retain talent, ensure fair and competitive remuneration, and comply with legal and tax requirements in both the home and host countries
Base salary determination
- Approaches to determine base salary include home-based (based on home country salary structure), host-based (based on host country salary structure), and global (based on a global salary structure)
- Factors influencing include the assignee's job level, skills, and experience, as well as the host country's labor market conditions and cost of living
Cost of living adjustments
- Cost of living allowances (COLA) to compensate for differences in the cost of goods and services between the home and host countries
- COLA calculations based on reliable cost of living data and indices, and regular reviews to ensure accuracy and fairness
Hardship and danger premiums
- Hardship premiums to compensate for challenging living conditions (climate, pollution, infrastructure) in the host country
- to compensate for safety and security risks (political instability, crime, terrorism) in the host country
- Premiums determined based on objective assessment of hardship and danger levels, and benchmarking with industry practices
Housing and education allowances
- to cover the cost of suitable accommodation in the host country, based on family size and local housing market conditions
- to cover the cost of international or private schools for the assignee's children in the host country
- Allowances reviewed regularly to ensure adequacy and competitiveness, and to accommodate changes in the assignee's family circumstances
Tax equalization policies
- Tax equalization to ensure that the assignee's tax liability is not higher than it would be in the home country
- Tax equalization calculations based on hypothetical tax (tax on home country income) and actual tax (tax on host country income), with the company covering any excess tax liability
- Tax assistance and compliance services to help assignees navigate the complex tax implications of international assignments
Support during international assignments
- Ongoing support and engagement are essential to help international assignees and their families adjust to the challenges of living and working in a foreign country, maintain their well-being and performance, and achieve the objectives of the assignment
Ongoing communication and engagement
- Regular communication between the assignee and home country HR, line manager, and colleagues to maintain connection and alignment with the home organization
- Virtual and in-person meetings, newsletters, and other communication channels to keep the assignee informed and engaged with company developments and events
- Opportunities for the assignee to provide feedback, share experiences, and contribute to organizational learning and improvement
Mentoring and coaching programs
- Assigning a mentor or coach from the home country to provide guidance, support, and career development advice to the assignee throughout the assignment
- Providing access to local mentors or coaches in the host country to help the assignee navigate cultural and professional challenges and build local networks
- Offering virtual and in-person coaching sessions to address specific challenges, develop skills, and support the assignee's personal and professional growth
Emergency assistance and evacuation
- 24/7 emergency assistance services to provide medical, security, and logistical support to the assignee and family in case of illness, accident, or crisis situations
- Evacuation plans and procedures to ensure the safety and well-being of the assignee and family in case of political instability, natural disasters, or other emergencies in the host country
- Insurance coverage for medical treatment, evacuation, and repatriation expenses, as well as liability and property damage
Repatriation after international assignments
- Effective repatriation planning and support are critical to ensure a smooth transition back to the home country, retain the skills and knowledge gained during the assignment, and leverage the assignee's international experience for the benefit of the organization
Repatriation planning and support
- Early planning and communication of the repatriation process, timeline, and available support services to the assignee and family
- Assistance with logistics (housing, schooling, transportation) and administrative matters (work permits, visas, tax) related to the return to the home country
- Repatriation training and coaching to help the assignee and family readjust to the home country culture and work environment, and cope with reverse culture shock
Career management for repatriates
- Proactive career planning and management to ensure that the assignee's international experience is valued and leveraged in the next role and career progression
- Providing opportunities for the repatriate to share knowledge, insights, and networks gained during the assignment with colleagues and teams in the home country
- Offering mentoring, coaching, and leadership development programs to support the repatriate's career advancement and retention in the organization
Retention of repatriated employees
- Recognizing and rewarding the repatriate's international experience and contribution to the organization through compensation, promotion, and other incentives
- Providing ongoing support and resources to help the repatriate and family readjust to the home country and maintain their well-being and work-life balance
- Monitoring and addressing any issues or challenges that may arise during the repatriation process and beyond, to ensure the repatriate's successful reintegration and long-term retention in the organization
Challenges of international assignments
- International assignments can present significant challenges for both the assignee and the organization, which can impact the success of the assignment and the well-being of the assignee and family
Cultural adaptation and shock
- Difficulty adapting to the host country's cultural norms, values, and behaviors, leading to misunderstandings, conflicts, and stress
- Experience of culture shock, a sense of disorientation and anxiety resulting from the immersion in an unfamiliar culture
- Challenges in building relationships and trust with local colleagues, customers, and stakeholders due to cultural differences and communication barriers
Family adjustment difficulties
- Spouse or partner's difficulty finding employment or meaningful activities in the host country, leading to frustration, isolation, and resentment
- Children's difficulty adjusting to a new school system, language, and social environment, leading to academic and behavioral problems
- Family members' experience of homesickness, loneliness, and loss of support networks, impacting their mental health and well-being
Dual-career couple challenges
- Difficulty maintaining both partners' careers during the international assignment, especially if the spouse or partner is unable to work in the host country
- Strain on the relationship due to the sacrifices and compromises required to prioritize one partner's career over the other
- Challenges in reintegrating both partners' careers upon repatriation, especially if the trailing spouse has experienced a career gap or downgrade during the assignment
Benefits of international assignments
- Despite the challenges, international assignments can offer significant benefits for both the assignee and the organization, contributing to personal and professional growth, global competitiveness, and long-term success
Employee skills and knowledge development
- Opportunity to develop new technical skills and expertise through exposure to different work practices, technologies, and industries in the host country
- Enhancement of soft skills such as adaptability, resilience, communication, and collaboration through the experience of working in a diverse and challenging environment
- Acquisition of language skills and cultural knowledge that can be valuable for future international roles and responsibilities
Global mindset and cultural intelligence
- Development of a global mindset, the ability to understand and navigate the complexities of the global business environment, and to think and act across borders
- Enhancement of cultural intelligence, the capability to relate and work effectively in culturally diverse situations, and to bridge differences and find common ground
- Increased awareness and appreciation of diversity, inclusion, and cross-cultural collaboration, which are essential for leadership in a global context
Organizational knowledge transfer
- Opportunity to share best practices, innovations, and lessons learned from the home country with the host country team, and vice versa
- Facilitation of knowledge transfer and cross-pollination of ideas across different units, functions, and geographies of the organization
- Contribution to the development of a global knowledge network and the organization's overall learning and innovation capacity
Evaluation of international assignments
- Regularly evaluating the effectiveness and impact of international assignments is essential for ensuring their alignment with organizational goals, optimizing their value and ROI, and continuously improving the assignment management process
Assignment success criteria
- Defining clear and measurable success criteria for each international assignment, based on the specific objectives, deliverables, and performance expectations
- Considering both quantitative criteria (business results, project outcomes) and qualitative criteria (relationships, cultural adaptation, learning) in the evaluation
- Involving multiple stakeholders (assignee, host country manager, home country manager, HR) in the definition and assessment of success criteria
Return on investment (ROI) analysis
- Conducting a comprehensive ROI analysis to assess the financial and non-financial costs and benefits of each international assignment
- Considering direct costs (compensation, relocation, training) and indirect costs (opportunity costs, productivity losses) in the ROI calculation
- Measuring the tangible benefits (business growth, market entry, knowledge transfer) and intangible benefits (employee development, global mindset, reputation) of the assignment
Continuous improvement of programs
- Regularly collecting feedback and data on the effectiveness and impact of international assignment programs from various sources (assignees, managers, HR, external partners)
- Conducting a thorough review and analysis of the feedback and data to identify strengths, weaknesses, and areas for improvement in the assignment management process
- Implementing changes and enhancements to the policies, practices, and support services based on the insights and lessons learned from the evaluation, to continuously optimize the value and success of international assignments
Key Terms to Review (29)
Assignment success rate: The assignment success rate measures the effectiveness of international assignments by assessing the percentage of expatriates who complete their assignments successfully without significant issues. This metric reflects not only the ability of the employees to adapt to new environments but also the overall support provided by the organization in facilitating these transitions. Understanding assignment success rates helps organizations optimize their international assignment strategies and improve employee satisfaction and retention.
Balance sheet approach: The balance sheet approach is a method used in international assignment management that focuses on ensuring that expatriates maintain their purchasing power and standard of living when relocated to another country. This approach typically involves compensating employees for the differences in cost of living, taxation, and other financial factors between their home country and the host country, aiming for a financial equilibrium that mirrors their home base.
Base Salary Determination: Base salary determination refers to the process of establishing the initial salary level for employees, particularly those on international assignments, based on various factors like market rates, individual qualifications, and the cost of living in the host country. This process ensures that employees are compensated fairly while taking into consideration the unique challenges and expenses associated with working abroad, such as relocation costs and potential adjustments for different economic environments.
Candidate assessment criteria: Candidate assessment criteria are the specific standards and benchmarks used to evaluate the qualifications, skills, and fit of candidates for a particular role. These criteria help organizations identify the best candidates for international assignments by focusing on attributes like cultural adaptability, technical skills, and previous international experience, ensuring that selected candidates can thrive in diverse environments.
Commuter assignments: Commuter assignments refer to a type of international work arrangement where employees travel back and forth between their home country and a foreign work location, rather than relocating permanently. This approach allows employees to maintain their home base while fulfilling job responsibilities abroad, making it attractive for companies looking to manage costs and for employees wanting to balance work with family life.
Cost-of-living adjustment: A cost-of-living adjustment (COLA) is an increase in an employee's salary to offset the effects of inflation and maintain their purchasing power. This adjustment is crucial for employees who are assigned to international locations, where living expenses can vary significantly. By ensuring that salaries are adjusted accordingly, companies help expatriates maintain a standard of living comparable to what they would have in their home country, accounting for differences in local prices, taxes, and other economic factors.
Cross-cultural training: Cross-cultural training is a systematic approach to preparing individuals for effective interactions in diverse cultural settings. This type of training helps participants understand and navigate cultural differences, enhancing their communication skills and adaptability when working in international environments or with people from varied backgrounds. Such training is essential in promoting successful international assignment management, as it reduces the risk of culture shock and fosters better workplace relationships.
Cultural adaptation: Cultural adaptation refers to the process through which individuals adjust their behaviors, attitudes, and practices to align with the customs and social norms of a new cultural environment. This term is crucial for understanding how people manage international assignments, as successful adaptation can significantly influence job performance, social integration, and overall satisfaction in a foreign country.
Cultural Intelligence: Cultural intelligence is the capability to relate and work effectively across cultures. It encompasses knowledge, skills, and abilities that allow individuals to adapt to different cultural contexts, fostering effective communication and collaboration. This adaptability is crucial for inclusive leadership and managing international assignments, where understanding and respecting diverse cultural perspectives can lead to better outcomes in teamwork and organizational effectiveness.
Danger premiums: Danger premiums refer to additional compensation provided to employees who take on international assignments in locations that are considered hazardous or risky. This extra pay is intended to offset the potential dangers and hardships associated with working in such environments, including safety concerns, health risks, and political instability. Understanding danger premiums is crucial for companies managing international assignments, as it helps attract and retain talent in challenging locations while ensuring fair compensation for the risks involved.
Dual career issues: Dual career issues refer to the challenges faced by couples where both partners have careers that may require relocation, time commitments, or professional advancement. These challenges can complicate decisions related to international assignments, as both individuals must balance their career aspirations with personal relationships and family responsibilities.
Education allowances: Education allowances are financial benefits provided by employers to support the educational expenses of employees or their dependents, particularly when working in international assignments. These allowances are aimed at ensuring that expatriates and their families have access to quality education, which can be crucial for their adjustment and success in a foreign environment. By covering tuition fees, school supplies, and related costs, education allowances help facilitate a smoother transition for employees relocating abroad.
Employee retention rate: Employee retention rate is a metric that measures the percentage of employees who remain with an organization over a specific period of time. A high retention rate indicates that employees are satisfied and engaged, leading to lower turnover costs and a stable workforce. Understanding this rate is crucial as it relates directly to employee turnover and can impact international assignment management.
Expatriate: An expatriate is an individual who resides outside their native country, often for work-related reasons. This term is commonly associated with employees sent abroad by their employers to take on specific roles or assignments in foreign locations, thereby gaining international experience and contributing to global operations. Expatriates typically navigate various challenges, including cultural adaptation, legal requirements, and different workplace norms, making their management crucial for organizations with a global footprint.
Family considerations: Family considerations refer to the factors and circumstances related to the families of expatriates during international assignments. These factors include the spouse's career, children's education, family health issues, and cultural adaptation challenges that can significantly influence the decision-making process regarding relocation and overall assignment success.
Global performance appraisal: Global performance appraisal is a systematic evaluation process used by organizations to assess the performance of employees who are working in international assignments. This type of appraisal is crucial for understanding how well expatriates meet their job expectations and adapt to different cultural environments. It often involves a combination of objective metrics, self-assessments, and feedback from peers and supervisors, highlighting the importance of both professional competencies and cultural adaptability in global business settings.
Hardship allowance: A hardship allowance is a form of compensation provided to employees who are assigned to work in difficult or challenging environments, typically in international assignments. This allowance is designed to offset the extra costs and challenges associated with living and working in locations that may lack adequate amenities, safety, or other factors that contribute to a lower quality of life. It helps ensure that employees remain motivated and secure during their assignments by acknowledging the unique difficulties they may face abroad.
Host-based approach: A host-based approach refers to a strategy in international assignment management where expatriates are primarily managed and compensated according to the norms and standards of the host country. This approach emphasizes local market conditions, ensuring that employees receive compensation packages that reflect local practices while also considering their unique needs as foreign workers. By aligning expatriate management with host country standards, organizations aim to enhance the effectiveness and satisfaction of employees during international assignments.
Housing allowances: Housing allowances are financial benefits provided by employers to assist employees with housing costs during international assignments. These allowances help to cover the high living expenses in foreign locations, ensuring that expatriates can maintain a comfortable standard of living while working abroad. The structure of these allowances can vary widely based on factors such as location, family size, and company policies.
International assignment management: International assignment management refers to the systematic approach that organizations take to manage employees who are sent on assignments outside their home country. This involves planning, selecting, preparing, and supporting expatriates and their families throughout their international experience, ensuring alignment with organizational goals while addressing the unique challenges of working in a foreign context.
Long-term assignments: Long-term assignments refer to the relocation of employees to a foreign location for an extended period, usually ranging from one year to several years. These assignments are typically made to support global business strategies and involve a variety of factors, such as cultural adaptation, compensation packages, and repatriation planning. Successful management of long-term assignments can lead to enhanced international operations, talent development, and organizational effectiveness.
Ongoing support programs: Ongoing support programs are structured initiatives designed to provide continuous assistance and resources to expatriates and their families throughout their international assignments. These programs aim to ensure a smooth transition, enhance the expatriate experience, and promote both personal and professional success during the assignment period. They encompass various services such as cultural training, career counseling, and emotional support, addressing the multifaceted challenges faced by employees adjusting to new environments.
Permanent Transfers: Permanent transfers refer to the relocation of employees from one position to another within an organization or between different locations on a long-term basis, often as part of international assignment management strategies. These transfers can involve moving employees to different countries or regions, reflecting the organization's strategic objectives to align human resources with its global operations. Such moves require careful planning and support to address various challenges, including cultural adaptation and logistical considerations.
Pre-departure orientation: Pre-departure orientation is a structured program designed to prepare employees for international assignments by providing essential information about the host country, culture, and logistics before they leave. This orientation helps expatriates understand cultural differences, work expectations, and practical matters like housing and healthcare, ensuring a smoother transition and greater success in their overseas roles.
Repatriation: Repatriation refers to the process of returning an expatriate employee back to their home country after completing an international assignment. This process is crucial as it involves not only physical relocation but also reintegration into the home organization and culture, addressing any challenges that may arise during this transition. Successful repatriation can enhance employee retention, boost morale, and leverage the skills and experiences gained during the international assignment.
Rotational assignments: Rotational assignments refer to a structured approach in which employees are assigned to various roles or locations within an organization over a set period of time. This practice is often used to enhance employee skills, foster cross-cultural understanding, and develop future leaders by exposing them to different aspects of the business or global operations.
Short-term assignments: Short-term assignments refer to temporary work placements in a different country or region that typically last from a few weeks to a few months. These assignments are often utilized by organizations to meet specific project needs, provide specialized expertise, or support training and development initiatives without committing to long-term relocation of employees.
Tax equalization policies: Tax equalization policies are frameworks designed to ensure that employees on international assignments are not financially disadvantaged by different tax rates between their home and host countries. These policies aim to level the playing field, making sure that expatriates pay a similar amount in taxes as they would if they remained in their home country, thus encouraging international mobility without financial burdens.
Virtual Assignments: Virtual assignments refer to work arrangements where employees carry out their responsibilities remotely, often using technology to communicate and collaborate with teams and clients. This setup has gained prominence due to globalization and advancements in digital communication tools, allowing organizations to tap into a global talent pool without the need for physical relocation.