The paper "Effective Recruiting and Selecting Competent Expatriates for International Placement" is a great example of human resources coursework. Expatriates are individuals who live and work outside their home country for a specified period of time. The expansion of global markets has led to increased competition for the same markets. This has motivated the multinationals to be more interested in improving the competencies and recruitment and selections for employees who are to be working for the multinational in those global markets. Managing expatriates is a humongous and expensive challenge for international firms.
Up to 45% of US expatriates return home from their assignments abroad before the completion of their contracts (O’ Sullivan et al. 79). This leads to firms suffering from both direct and indirect losses. Direct in terms of monies paid for salary, training, and shipping the expatriates to these assignments in foreign countries (Mendenhall and Oddou 42). Indirect consequences include a decrease in market share and reduced morale in the expatriates (Zeira and Banai 33). This essay will explore the reasons as to why it is necessary to effectively recruit and select competent expatriates for international placement. It is important for multinational companies to establish competencies and effective recruitment and selection processes because of what has come to be commonly referred to as ‘ expatriate failure’ .
Expatriate failure is either an individual returning home early before completing the job in that foreign country stayed in the foreign country for the required period of time but did not perform according to required standards or the expatriate leaves the company after returning home from the assignment abroad (Sweeney and McFarlin 465). Research shows that 34% of expatriates failed in 180 multinationals.
Because of the many problems associated with expatriate failure, expatriate management has gained more airplay. Chew (12-17) also postulates that expatriates abandon their duties abroad prematurely and come home due to being unsatisfied with the job or due to culture shock. This expatriate failure is a function of the recruitment and selection process so a revision of the same process in order to make it more effective is necessary as far as making expatriates more effective in their duties is concerned (Harvey and Novicevic 73-75).
This expatriate failure has far-reaching implications and consequences which alone make it necessary if not important for multinational companies or any other company with its employees on foreign assignments to overhaul the traditional way of determining competencies, recruiting and selecting expatriates. One of such failure is the premature return of the expatriate. This can cripple the company’ s credibility weaken its ability to compete effectively in the international arena (Sweeney and McFarlin 466). This according to O’ Sullivan et al. (80) leads to loss of market share. A firm failing in the international eye means that the firm has lost its competitive advantage and premature return of expatriates does exactly this to a firm jeopardising its chances of expansion. There are also losses in terms of shipping and relocation costs.
Moving expatriates abroad is expensive; it is even more expensive if it involves moving the expatriate together with the family members that is the spouse and children. These costs on relocation can go up to $100,000 and this is incurred by the company sending the expatriate abroad (Sweeney and McFarlin 466).
So if there is an expatriate failure it means all these monies go down the drain. So coming up with better recruitment and selection processes for potential expatriates will go a long way in cutting down or better still doing away with these costs.
Bonache, J. and Brewster, C. “Knowledge transfer and the management of expatriation.” Journal of Thunderbird International Business Review. 43.1 (2001): 145-168.
Chew, Janet. “Managing MNC Expatriates through Crises: A Challenge for International Human Resource Management.” Journal of Human Resource Management. 12.2 (2004): 1-30.
Harvey, M.G. and Novicevic, M. “Selecting expatriates for increasingly complex global assignments.” Journal of International Career Development. 6.2 (2001): 69-86.
Mendenhall, M. and Oddou, G. “The dimensions of expatriate acculturation.” Academy of Management Review. 10. (1985): 39-47.
O’Sullivan, Sharon et al. “Expatriate management “best practices” in Canadian MNCs: a multiple case study.” Career Development International. 7.2 (2002): 79-95.
Selmer, J. “Usage of corporate career development activities by expatriate managers and the extent of their international adjustment.” International Journal of Commerce and Management. 10.1 (2000): 1-23.
Sievers, C. “Work/family: Key to successful assignment.” Human Resource Focus. 75.3 (1998): 9-11
Sweeney, Paul D. and McFarlin, Dean B. “International Management: Strategic opportunities and cultural challenges”. NewYork: Routledge, 2015.
Zeira, Y. and Banai, M. “Present desired methods of selecting expatriate managers for international assignments.” Personnel Review. 13.3 (1984): 29-35.