Internationalization is not a phenomenon of recent history. Having a closer look in ancient history Moor & Lewis state that they found 2000 before Christ the beginnings of multinational businesses with the Assyrians. Phoenicians, Greeks and Romans followed and a first peek was reached with the Silk Road. Ancient internationalization rose and declined wavelike in several phases. The emergence of the Hanseatic League coined the internationalization of the Middle Ages and was replaced by the families of merchants like Fugger and Medici. All these eras are characterized by international trade and travelling people.
In the beginning of the following colonial era resources of colonies were exploited to manufacture and trade goods with the aim to strengthen the mother country. But with the decline of the colonial era and the rise of the industrial revolution foreign direct investment became a specific instrument as well as expatriate management.
Today international travel is very common in business. The dimension of international business travel encompasses virtual foreign assignment, business trip, commuter, construction job, secondment, limited relocation and permanent relocation. IHRM is very well prepared to provide adequate trainings for all kinds of business travelers in respect to the cultural differences of the nation of destination.
Although trainings for international assignments are rated as very good and good by 85% of the firms the attrition rate of expatriates/repatriates rose from 8% in 2011 to 12% in 2012 . Among those, 72% left the company during the assignment or within two years after returning from the assignment. This high attrition rate is not only a huge loss of internal and international knowledge for the company. In addition, to attract a new employee causes high costs, too. Furthermore, competitors engaging with these repatriates profit highly from their knowledge and gain a possible competitive advantage.
This high attrition rate of expatriates/repatriates implies that there is a challenge within the repatriation process. Eventually, it raises the question whether the repatriation processes could be eased for repatriates.
Table of Contents
1. Introduction
1.1. Objective
1.2. Proceedings
2. Definitions
2.1. Definition Expatriate
2.2. Definition Reintegration/Repatriation
2.3. Definition Re-entry Shock
3. Repatriation Stressors
3.1. Job-related Factors
3.2. Social Factors
4. The Expatriation Cycle
4.1. Requirements Analysis
4.2. Recruiting
4.3. Selection
4.4. Prearrangement
4.5. Mentoring
4.6. Repatriation
5. Relocation Service as an Instrument to Handle Repatriation Stressors
6. Summary and Conclusion
Objectives and Topics
This paper examines the repatriation process of expatriates and evaluates how Multinational Enterprises (MNEs) can effectively utilize relocation services to mitigate re-entry shock and improve retention rates. By analyzing the entire expatriation cycle, the work identifies critical stressors and determines at which stages external support can provide the most significant value.
- Analysis of repatriation stressors, including job-related and social factors.
- Evaluation of the expatriation cycle from requirements analysis to repatriation.
- Assessment of relocation services as a strategic tool to handle transition challenges.
- Investigation into the effectiveness of external support in the re-entry phase.
Excerpt from the Book
3.1. Job-related Factors
One job-related stressor is career anxiety, which includes possible changes in workplace (e.g. reorganization or restructuring in the parent firm), or the possibility that there is no post-assignment job available, or that the repatriate is forgotten (according to the adage ‘out of sight and out of mind’) and, inter alia, has not been considered in the career and staff planning.35
A further stressor is ‘work adjustment’, which refers to issues like a dissatisfying and/or inappropriate re-entry position and includes the devaluation of international experience.36 Kühlmann37 explains devaluation on the one hand with ‘putting lipstick on the pig’ international assignment to attract new candidates. On the other hand firms neither appreciate nor use the new international knowledge of the repatriate.38 When those expatriates return with a high expectation, inter alia, for a promotion and do find that their expectation does not fit to reality, they are very likely to leave the company.39
Yet other stressors are problems with the new role demands or challenges through the loss of status and pay.40 Both are closely related to social factors.
Summary of Chapters
1. Introduction: Discusses the historical context of internationalization and the rising attrition rates of expatriates, establishing the need for improved repatriation processes.
2. Definitions: Defines core terminology including expatriate, reintegration, and re-entry shock to ensure a consistent framework for the following analysis.
3. Repatriation Stressors: categorizes the challenges faced by returning employees into job-related and social factors that contribute to re-entry shock.
4. The Expatriation Cycle: Elucidates the various phases of an international assignment, emphasizing that repatriation is a continuous process rather than a final event.
5. Relocation Service as an Instrument to Handle Repatriation Stressors: Evaluates how external relocation services can intervene throughout the cycle to prevent or mitigate repatriation challenges.
6. Summary and Conclusion: Summarizes the findings, noting that while relocation services provide valuable support, psychological factors and organizational care remain critical to successful reintegration.
Keywords
Expatriation, Repatriation, Re-entry Shock, Relocation Service, International Human Resource Management, Career Anxiety, Work Adjustment, Social Factors, Expatriation Cycle, Retention, Global Mobility, Organizational Knowledge, Reintegration, Performance Loss, Personnel Management.
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the repatriation process of expatriates, specifically addressing the high attrition rates and the "re-entry shock" experienced by employees returning from international assignments.
What are the central thematic fields?
The central themes include international human resource management, the expatriation cycle, identification of repatriation stressors (both job-related and social), and the deployment of relocation services.
What is the primary research goal?
The goal is to evaluate at which specific stages of the repatriation process Multinational Enterprises can intervene, using relocation services to minimize or avoid re-entry shock.
Which scientific methodology is used?
The paper employs a comprehensive analysis of the expatriation cycle, mapping potential company and employee challenges against the services provided by relocation agencies to identify gaps and opportunities for support.
What does the main part of the work cover?
The main part covers definitions, an in-depth analysis of repatriation stressors, a detailed look at the stages of the expatriation cycle, and an evaluation of current service offerings for each stage.
Which keywords characterize the work?
Key terms include Expatriation, Repatriation, Re-entry Shock, Relocation Service, Retention, and International Human Resource Management.
How do job-related factors contribute to re-entry shock?
Job-related factors such as career anxiety, lack of a suitable post-assignment position, and the devaluation of gained international experience often lead to dissatisfaction, resulting in a high likelihood of the employee leaving the company.
What is the significance of the "Expatriation Cycle" in this paper?
The expatriation cycle is used to illustrate that repatriation is not a standalone event at the end of an assignment, but a process influenced by every preceding step, including recruitment, selection, and prearrangement.
Can relocation services completely solve repatriation problems?
The paper concludes that relocation services can effectively handle specific latent stressors, but they cannot completely solve all problems; the company’s internal handling and the individual's psychological adjustment remain decisive factors.
- Quote paper
- Richard Beinrauch (Author), 2013, Reintegration of Expatriates, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/263355
