Getting the Most Out of International Assignments

Yes, we're still on a global economic roller coaster (who said the world is flat?), with good and bad news from the U.S., Europe and Asia causing markets to shoot up and down weekly or even daily. But, at the end of the ride, it still looks like we'll all be doing much more rather than less global business.

Case in point: For i4cp's recent member-driven Global Mobility Practices study, we asked if companies are anticipating more or fewer international assignments over the next 18 months. Almost 9 out of 10 said they expected more (46%) or about the same number (43%) of international assignments.

So much for the idea that the age of the expatriate is dead. Some observers predicted that as global companies hired more locals to fill positions, there would be a subsequent decrease in the number of international assignments. After all, expats tend to be expensive to compensate and are sometimes tricky to manage.

But, even in an age of increasingly effective teleconferencing and other virtual meeting technologies, there's no substitute for working and living abroad. It's very hard to understand another culture unless you've lived there, and that understanding is crucial to business success in a global society. That's one of the main reasons - aside from financial constraints - that respondents from high market performing organizations are so much more likely than those from low-performing ones to forecast more international assignments.

And if an organization is going to keep feet on the ground outside its home region, it had better do it right. For higher-performing organizations, that means formalizing the process and measuring the results.

Larry Looker, Manager of Global Leadership Development at Amway, states, "This whole process, as you know, is extremely expensive. When you think of what it cost for one person to have an international assignment - even in just dollars, taxes and expenses - it's a little bit shocking to me that more of us aren't asking ‘how are we doing?' ‘how well did it work?' ‘how did it work for the person, the family, the receiver and the business need?' How can we not ask those questions to those different groups?"

Looker says that Amway increasingly views international assignments as targeted learning experiences and as strategic opportunities to gain global experience and to fill specific, short-term needs. They are currently in the process of formalizing their global assignment processes and integrating them with various talent management and other broader organizational strategies. Measurement and stakeholder feedback are going into the design as an integral part of the process.

Of course, managing international assignees well involves a series of decisions and actions. There are many steps involved, including, but not limited to:

• Determining the purposes of assignments
• Assessing potential assignees and their families
• Selecting assignees
• Preparing assignees, their families and their managers
• Developing policies and guidelines to govern assignments
• Keeping track of information about expats and reasons they're on assignment
• Deciding on success criteria
• Evaluating stakeholder satisfaction levels
• Retaining and properly utilizing expats once they return home

And this list doesn't even go into details of the actual relocation.

So how do higher-performers deal with the actions on our list? First, our study shows that they tend to be better at aligning their international assignments with other processes. In fact, they're twice as likely to report that "our mobility program supports talent management efforts," 51% compared to 26% for lower performers. They're also more likely to use international assignments for leadership (53%) and employee (39%) development.

Respondents from high-performing companies are also more likely to assess candidates and their families to see if they're suitable for international assignments and to provide cultural training in the host country for employees and their families. Our survey also indicates that training about the host countries' cultures shouldn't be limited to pre-assignment, home-country courses. Cultural training in the host country for both the assignees and their families can be another differentiator for high performers. After all, multiple studies have established a link between international assignment failures and spouse/family concerns.

Finally, higher performers are more likely to measure what they consider important, to include all stakeholders in the measurement process and to follow through by applying what they've learned. International assignments, like any business initiatives, are about achieving goals and delivering results. If those goals include learning and development, then those skills should be used for the benefit of the organization. Not having a proper outlet for those skills and a plan for repatriated employees squanders a long-term investment.

International assignments are a potentially valuable investment that should be integrated with other talent management processes, measured thoroughly and managed carefully. According to Looker, "Because this is a project with such potential for gain and/or loss, it makes a lot of sense for us to take this time to formalize the process. In my opinion, we could reap some pretty big rewards, not only on the savings side, but also on the return side of the equation."

i4cp's 4-Part Recommendation:

1. Implement a formal policy governing international assignments. Creating and following a comprehensive policy provides more certainty in the ultimate cost of the assignment - which in turn helps organizations assess the value proposition. A formal policy also protects the organization from creating unintended precedents and ensures fair dealings with all employees. The policy may also serve as a recruiting tool when employees are deciding whether to accept an international assignment.
2. International assignments should begin with an assessment of the employee's suitability, which should include the employee's family if they are relocating as part of the assignment. A new job is stressful. Moving is stressful. Relocating to a foreign country and taking on a new role in an unfamiliar culture while using a language you're not proficient in can be more than some will be capable of. Add to that an unhappy spouse and children torn away from friends and stability and it's no wonder there is a high failure rate for international assignments. Higher performers consider all of these factors before making assignment decisions.
3. Continue cultural acclimation in the host country. There's nothing like complete immersion when it comes to learning, and there's no better way to learn a culture than from a native. Many organizations arrange for local partners to continue cultural training and create a touchstone or mentor for the assignee. This small additional investment helps to ease the transition and speed the employee's time to productivity in their new role.
4. Align the goals for international assignments with other strategic processes and measure the results. Getting needed skills in place is the primary reason for most international assignments, but leadership and employee development are also important. High-performance organizations put appropriate resources toward processes they consider important and always measure the results. As this is an expensive process, it's good to gain broad stakeholder estimations of success.

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