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Delivering A Successful International Assignment

Anne morris.

9 October 2019

IN THIS SECTION

8 minute read
Last updated: 9th October 2019

Organisations deploy personnel on international assignment for many reasons. Whether you are addressing an internal skills gaps, supporting leadership development or looking to improve working relations across borders, for any international assignment to be successful, there will be a multitude of legal, immigration, tax and pensions risks to manage when sending employees overseas.

This article covers:

International assignment objectives, international assignment structures, employment law.

Immigration options

Assignee remuneration

Professional support for international assignments.

Global mobility programmes have traditionally been developed with a uniform approach, driven largely by cost management and operational efficiencies. However, organisations are increasingly taking a more flexible and bespoke approach to overseas assignments in order to attain advantage in areas such as compliance and talent development and retention.

While a one-size-fits-all approach to the fundamentals of mobility management may be a commercial reality, overlaying this should be areas of specific consideration and capability that can be adapted to the specific needs and risks of each international assignment. This allows for greater focus on the assignment’s commercial objectives and the agility to respond to the organisation’s changing global mobility needs .

From the outset of any successful assignment project, there should be clarity of objectives. Why as an organisation is the decision being made to invest in sending an employee to perform services in a different country?

International assignments can offer value in many areas, many of which typically present in the longer-term.

Internal knowledge transfer is a common assignment objective to address talent or skills shortages within overseas regions. Deploying key talent with specialist knowledge and skills to train and upskill local team members can help to resolve local labour or skill supply issues. The cost/benefit analysis can explore potential missed opportunities or delays resulting from shortages in the local talent market.

International assignments are also highly effective in building relationships and improving intercultural working. This could be relationships within an organisation, with local clients and intermediaries or local authorities. Face to face interaction remains highly effective and valuable in building influence on the ground and can offer significant potential for advantage over competitors.

Beyond relationships, value is also created in the knowledge gained by assignees working overseas, from insight into local customs and culture, improved language capability and a general understanding of how business is ‘done’ within the region and helping to adapt organisational protocol to suit the local environment. Combined with the assignee’s existing market and organisational knowledge, they can offer a global perspective with local details, bringing considerable potential to build competitive differentiation.

With clarity of objective, you can then consider whether an international assignment is the most appropriate solution . Is it possible to hire or promote locally? Would multiple, shorter trips be as effective in performance terms but with lower cost implications? International assignments demand significant investment and it will be important to assess cost projections against expected return and value to the organisation.

As well as clarity of objectives, a successful international assignment also requires clarity of contractual terms, both to manage the expectations and understanding of the assignee, and also for the mobility team to identify support needs and potential risks.

Now more than ever, organisations are developing portfolios of mobility programmes to enable an agile approach to global mobility that responds to the organisation’s changing needs for international personnel mobility. Assignments come in increasingly different shapes and sizes, from permanent relocations or temporary exchanges, secondments or transfers to a different region or to a different organisation.

While organisations demand greater flexibility and agility from their global mobility programmes, underpinning the activity should be an appropriate assignment structure with a supporting contractual agreement that enables compliance with regulatory and legal duties.

When considering which structure to adopt, organisations will need to consider a range of factors including the type of assignment and the relevant environmental context such as regulatory, immigration, employment law, tax, pension implications.

For international assignments, where the employee is moving from the home country employer to a host country employer, the employer could consider a number of assignment structures, including:

The employee continues to be employed solely by the home employer.
The employment contract with the home employer is suspended for the duration of the assignment while the employee enters into a new employment contract with the host employer .
The employment contract with the home employer is terminated with a promise of re-employment at the end of the assignment while the employee enters into a new employment contract with the host employer .
The employment contract with the home employer is suspended and the employee enters into a contract with an international assignment company (IAC) within the employer group
The employment contract with the home employer is suspended and the employee enters into a contract with both an IAC and the host country employer.
The employee remains resident in the home country and works in a host country under a commuter assignment.

Each type of assignment structure offers advantages and disadvantages which should be considered in light of the individual assignment. For example:

Do employment laws in the host country require the assignee to be employed by a local entity?
Would the assignee be agreeable to ending their home country contract and starting a new agreement with a new entity in the host country?
Are there terms in the home country contract that would need protecting in any new agreement, such as restrictive covenants?
Which jurisdiction would prevail, the host or home country?
How would local laws interpret a situation where there is no contract of employment with the employer in the host country?
Issues such as income and corporate tax, pension and employment rights and responsibilities will need to be identified and assessed against the specific assignment objectives and budget and the assignee profile and circumstances.

Employment law implications come hand-in-hand with selecting an appropriate assignment structure.

Home-country employment contracts for employees on assignment from the UK to an overseas jurisdiction should generally be interpreted under the laws of England and Wales. If a host country contract is used, there should be specific provision in the agreement to determine which jurisdiction would prevail. However, neither position is guaranteed, for example where issues of domicile arise which may supersede any contractual provisions. Again the need is to assess on an individual assignment basis.

As well as explicit contractual considerations, employers should also be aware of any statutory rights or implied terms under UK law that may continue to apply even in the host country.

Specific provisions may also need to be made to ensure confidentiality and appropriate handling of commercial and sensitive information. While this may be standard or expected for senior employees, those on assignment should also be considered for such terms relevant to the type of assignment and the commercial objectives of the project.

Immigration options

Successful international assignments will invariably require careful consideration of the immigration requirements. Governments across the globe are adopting increasingly protectionist stances towards economic migrants, as policies seek to favour domestic workers. This means business travellers and visa holders are now facing greater scrutiny when applying for work visas and when trying to gain entry at the border.

Visa options and criteria vary between countries and are subject to frequent change. Where permission is required for the assignee to work in the host country, it will be important to ensure the assignee applies for the most appropriate route to meet the assignment need, whether that is a work permit or a business visitor visa. The immigration requirements and options will be determined in most part by the rules of the home and host countries, the nationality of the assignee (and any of their dependants who will be joining them overseas) and the nature of the activities the assignee intends to perform during their time in the host country.

For example, a British citizen may be eligible to travel to the US to attend sales meetings and work conferences for up to 90 days without having to apply for a visa but to conduct ‘gainful employment’ they would need to look at a specific work visa, such as the L-1 visa for intracompany transfers.

A further factor will be the specific requirements of the visa or permit. Work visas, for example, may require sponsorship of the employee by a local entity with valid sponsor status. The application process for work visas are typically resource-intensive and in many cases will require the employer to provide compelling evidence as to why the role or work cannot be performed by a worker resident in the host country.

Preparation will, therefore, be critical, ensuring there is sufficient time to consider the relevant immigration options in light of local rules, and to then make the required application. Complications may also arise where the employee does not meet certain requirements under the local rules, for example if they have a past criminal conviction or negative immigration record. This will require careful handling and, depending on the host country’s rules, may require submission of a visa waiver to explain the issue and provide assurances of the employee’s eligibility by requesting a discretionary decision on the application.

Relocation packages are typically the biggest expense associated with an international assignment. While cost control will remain a concern, it is important for employers to ensure they are offering packages that are competitive within the market and that the package will support both the commercial objective of the assignment and compliance with associated legal and tax risks.

Home-based packages remain common, including those which may be markedly above local market compensation levels, particularly in circumstanecs where the assignment need is business-critical.

It may be possible however to look at offering a lower package than the home-based option, by either localising the package to harmonise with host nation levels or to develop a ‘local-plus’ offering that maintains a degree of competition, but this can be challenging to apply consistently across all assignment types and locations.

Again, consideration should be given to the individual assignment and the assignee. Millennial workers for example are generally understood to value international experience and the remuneration package may not be their primary concern where the opportunity for overseas exposure is available.

For organisations with a substantial cohort of international assignees and travellers, it may be more appropriate to build a compensation scheme specifically for globally-mobile personnel.

Importantly, assignees who will remain under an employment contract in their home country may continue to be subject to home country payroll while on assignment. This will also enable pension and benefits to be offered in the same way through the home country. Taxation, however, raises more complex issues, for example where withholding rules apply in the host country. This will require specialist guidance to ensure tax liabilities in the home and host country are correctly managed and met withiin the appropriate timeframes.

International assignments are demanding on the employer and the employee, but have become critical given the business imperatives to meet talent and development needs and achieve competitive advantage .

Employers should not lose sight of the need to understand the specific risks of each individual assignment, which increasingly demand bespoke solutions. While compliance , efficiencies and cost control should be underpinned by a solid global mobility infrastructure of policies, systems and procedures, the current shift is away from a uniform approach to assignment management, instead moving towards more agile management of each assignment, shaped by the specific assignment objectives, budget and risks in relation to immigration, tax, remuneration and employment law.

DavidsonMorris’ specialist global mobility consultants provide expert guidance to employers on all aspects of international assignments, from programme management and implementation to strategic consultancy to ensure value and return on the mobility investment. We understand the commercial drivers behind mobilising workers and the need to ensure compliance without impacting return on mobility investment.

We work with senior management teams, HR and mobility professionals to develop strategies that ensure effective compliance risk management while supporting delivery of the organisation’s global mobility objectives. For advice on making the most of international assignments, speak to us .

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.

She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.

Anne is an active public speaker, immigration commentator , and immigration policy contributor and regularly hosts training sessions for employers and HR professionals

Anne Morris https://www.davidsonmorris.com/author/anne/ UK Healthcare for Migrants: Access & Rights
Anne Morris https://www.davidsonmorris.com/author/anne/ Education Rights for Migrants in UK
Anne Morris https://www.davidsonmorris.com/author/anne/ Adapting to Life in the UK: A Migrant's Guide
Anne Morris https://www.davidsonmorris.com/author/anne/ Switch to Skilled Worker Visa Guide

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility .

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners , we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.

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Gareth Wadley

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International assignments: Key issues to consider

What legal issues do you need to consider when it comes to sending employees overseas?

The number of employees working abroad is increasing. As it becomes more common, some assume this will lead to greater standardisation, with template assignment letters the norm.

However, the legal, tax, pension and other variables involved in international assignments require a more bespoke approach, leaving little room for standard documentation. We outline some key issues to address below.

What is an assignment?

Also referred to as a secondment or transfer, an assignment might be internal (to a different role abroad with the same employer) or to an external employer. A key characteristic of an international assignment is that an employee from one legal entity and country ('home' country) temporarily performs services in another country ('host' country).

Potential assignment structures

There are a number of different ways in which assignments can be structured and documented. Which approach is appropriate will depend on a range of issues including employment law, tax, pension, social security and regulatory implications as well as the expectations of employees. Five frequently used assignment structures are:

the employee continues to be employed solely by the home employer;
the contract with the home employer is suspended and the employee enters into a local employment contract with the host employer for the assignment;
the contract with the home employer is terminated with a promise of re-employment at the end of the assignment. In the meantime, the employee enters into a local employment contract with the host employer;
the contract with the home employer is suspended and the employee enters into a contract with an international assignment company (IAC) within the employer group; or
the contract with the home employer is suspended and the employee enters into a contract with both an IAC and the host country employer.

Which is best?

When deciding on the best structure for the circumstances, some questions to consider are:

Do the host country’s laws require employment by a local entity, ruling out sole employment by the home employer?
Where there is no contract of employment in place with the host employer, could local laws presume that the host is the de facto employer?
If the home contract is “suspended”, is the home employer prepared to accept the legal uncertainty, in employment law terms, that this status brings?
In a dual contract structure, who will bear the greatest risk of being liable for employment claims – host, home (or the IAC)?
Will the employee accept the termination of his/her home contract?
What is the impact on pension and benefit schemes, social security and tax?

Are there key terms in the home contract that require special consideration and protection, for example, restrictive covenants and confidentiality?

Which national law applies, when and to what? Which courts would have jurisdiction in the event of a dispute?

Who pays for, and manages, the employee during the assignment and will the employee return to the home country?

Looking forward

It is inevitable that documenting assignments will become a smoother process as employers become more familiar with the issues involved. However, the range of significant personal, legal and financial implications will mean that a degree of tailoring will always be necessary, in order to avoid negative repercussions.

Gareth Wadley is principal associate at Eversheds

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Intercultural and International Business Communication

The international assignment, learning objectives.

By the end of this section, you will be able to:

Describe how to prepare for an international assignment.
Discuss the acculturation process as an expatriate.
Describe effective strategies for living and working abroad.

Suppose you have the opportunity to work or study in a foreign country. You may find the prospect of an international assignment intriguing, challenging, or even frightening; indeed, most professionals employed abroad will tell you they pass through all three stages at some point during the assignment. They may also share their sense of adjustment, even embrace of their host culture, and the challenges of reintegration into their native country.

An international assignment, whether as a student or a career professional, requires work and preparation, and should be given the time and consideration of any major life change. When you lose a loved one, it takes time to come to terms with the loss. When someone you love is diagnosed with a serious illness, the news may take some time to sink in. When a new baby enters your family, a period of adjustment is predictable and prolonged. All these major life changes can stress an individual beyond their capacity to adjust. Similarly, in order to be a successful “expat,” or expatriate, one needs to prepare mentally and physically for the change.

International business assignments are a reflection of increased global trade, and as trade decreases, they may become an expensive luxury. As technology allows for instant face-to-face communication, and group collaboration on documents via cloud computing and storage, the need for physical travel may be reduced. But regardless of whether your assignment involves relocation abroad, supervision of managers in another country at a distance, or supervision by a foreign manager, you will need to learn more about the language, culture, and customs that are not your own. You will need to compare and contrast, and seek experiences that lend insight, in order to communicate more effectively.

An efficient, effective manager in any country is desirable, but one with international experience even more so. You will represent your company and they will represent you, including a considerable financial investment, either by your employer (in the case of a professional assignment) or by whoever is financing your education (in the case of studying abroad). That investment should not be taken lightly. As many as 40 percent of foreign-assigned employees terminate their assignments early, Tu, H., & Sullivan, S. (1994). Business horizons . Retrieved from http://findarticles.com/p/articles/mi_m1038/is_nl_v37/ai_14922926 at a considerable cost to their employers. Of those that remain, almost 50 percent are less than effective. Tu, H., & Sullivan, S. (1994). Business horizons . Retrieved from FindArticles.com: http://findarticles.com/p/articles/mi_m1038/is_nl_v37/ai_14922926

Preparation

With this perspective in mind, let’s discuss how to prepare for the international assignment and strategies to make you a more effective professional as a stranger in a strange land. First we’ll dispel a couple of myths associated with an idealized or romantic view of living abroad. Next we’ll examine traits and skills of the successful expatriate. Finally, we’ll examine culture shock and the acculturation process.

Your experience with other cultures may have come firsthand, but for most, a foreign location like Paris is an idea formed from exposure to images via the mass media. Paris may be known for its art, as a place for lovers, or as a great place to buy bread. But if you have only ever known about a place through the lens of a camera, you have only seen the portraits designed and portrayed by others. You will lack the multidimensional view of one who lives and works in Paris, and even if you are aware of its history, its economic development, or its recent changes, these are all academic observations until the moment of experience.

That is not to say that research does not form a solid foundation in preparation for an international assignment, but it does reinforce the distinction between a media-fabricated ideal and real life. Awareness of this difference is an important step as you prepare yourself for life in a foreign culture.

If the decision is yours to make, take your time. If others are involved, and family is a consideration, you should take even more care with this important decision. Residence abroad requires some knowledge of the language, an ability to adapt, and an interest in learning about different cultures. If family members are not a part of the decision, or lack the language skills or interest, the assignment may prove overwhelming and lead to failure. Sixty-four percent of expatriate respondents who terminated their assignment early indicated that family concerns were the primary reason. Contreras, C. D. (2009). Should you accept the international assignment? BNET . Retrieved from http://findarticles.com/p/articles/mi_qa5350/is_200308/ai_n21334696

Points to consider include the following:

How flexible are you?
Do you need everything spelled out or can you go with the flow?
Can you adapt to new ways of doing business?
Are you interested in the host culture and willing to dedicate the time and put forth the effort to learn more about it?
What has been your experience to date working with people from distinct cultures?
What are your language skills at present, and are you interested in learning a new language?
Is your family supportive of the assignment?
How will it affect your children’s education? Your spouse’s career? Your career?
Will this assignment benefit your family?
How long are you willing to commit to the assignment?
What resources are available to help you prepare, move, and adjust?
Can you stand being out of the loop, even if you are in daily written and oral communication with the home office?
What is your relationship with your employer, and can it withstand the anticipated stress and tension that will result as not everything goes according to plan?
Is the cultural framework of your assignment similar to—or unlike—your own, and how ready are you to adapt to differences in such areas as time horizon, masculinity versus femininity, or direct versus indirect styles of communication?

This list of questions could continue, and feel free to add your own as you explore the idea of an international assignment. An international assignment is not like a domestic move or reassignment. Within the same country, even if there are significantly different local customs in place, similar rules, laws, and ways of doing business are present. In a foreign country, you will lose those familiar traditions and institutions and have to learn many new ways of accomplishing your given tasks. What once took a five-minute phone call may now take a dozen meetings and a month to achieve, and that may cause you some frustration. It may also cause your employer frustration as you try to communicate how things are done locally, and why results are not immediate, as they lack even your limited understanding of your current context. Your relationship with your employer will experience stress, and your ability to communicate your situation will require tact and finesse.

Successful expatriates are adaptable, open to learning new languages, cultures, and skilled at finding common ground for communication. Rather than responding with frustration, they learn the new customs and find the advantage to get the job done. They form relationships and are not afraid to ask for help when it is warranted or required. They feel secure in their place as explorer, and understand that mistakes are a given, even as they are unpredictable. Being a stranger is no easy task, but they welcome the challenge with energy and enthusiasm.

Acculturation Process

Acculturation , or the transition to living abroad, is often described as an emotional rollercoaster. Steven Rhinesmith Rhinesmith, S. (1984). Returning home . Ottawa, Canada: Canadian Bureau for International Education. provides ten steps that show the process of acculturation, including culture shock, that you may experience:

Initial anxiety
Initial elation
Initial culture shock
Superficial adjustment
Depression-frustration
Acceptance of host culture
Return anxiety
Return elation
Reentry shock
Reintegration

Humans fear the unknown, and even if your tolerance for uncertainty is high, you may experience a degree of anxiety in anticipation of your arrival. At first the “honeymoon” period is observed, with a sense of elation at all the newfound wonders. You may adjust superficially at first, learning where to get familiar foods or new ways to meet your basic needs. As you live in the new culture, divergence will become a trend and you’ll notice many things that frustrate you. You won’t anticipate the need for two hours at a bank for a transaction that once took five minutes, or could be handled over the Internet, and find that businesses close during midday, preventing you from accomplishing your goals. At this stage, you will feel that living in this new culture is simply exhausting. Many expats advise that this is the time to tough it out—if you give in to the temptation to make a visit back home, you will only prolong your difficult adjustment.

Over time, if you persevere, you will come to accept and adjust to your host culture, and learn how to accomplish your goals with less frustration and ease. You may come to appreciate several cultural values or traits and come to embrace some aspects of your host culture. At some point, you will need to return to your first, or home, culture, but that transition will bring a sense of anxiety. People and places change, the familiar is no longer so familiar, and you too have changed. You may once again be elated at your return and the familiar, and experience a sense of comfort in home and family, but culture shock may again be part of your adjustment. You may look at your home culture in a new way and question things that are done in a particular way that you have always considered normal. You may hold onto some of the cultural traits you adopted while living abroad, and begin the process of reintegration.

The international assignment requires adaptability.

You may also begin to feel that the “grass is greener” in your host country, and long to return. Expatriates are often noted for “going native,” or adopting the host culture’s way of life, but even the most confirmed expats still gather to hear the familiar sound of their first language, and find community in people like themselves who have blended cultural boundaries on a personal level.

Living and Working Abroad

In order to learn to swim you have to get in the water, and all the research and preparation cannot take the place of direct experience. Your awareness of culture shock may help you adjust, and your preparation by learning some of the language will assist you, but know that living and working abroad take time and effort. Still, there are several guidelines that can serve you well as you start your new life in a strange land:

Be open and creative . People will eat foods that seem strange or do things in a new way, and your openness and creativity can play a positive role in your adjustment. Staying close to your living quarters or surrounding yourself with similar expats can limit your exposure to and understanding of the local cultures. While the familiar may be comfortable, and the new setting may be uncomfortable, you will learn much more about your host culture and yourself if you make the effort to be open to new experiences. Being open involves getting out of your comfort zone.
Be self-reliant . Things that were once easy or took little time may now be challenging or consume your whole day. Focus on your ability to resolve issues, learn new ways to get the job done, and be prepared to do new things.
Keep a balanced perspective . Your host culture isn’t perfect. Humans aren’t perfect, and neither was your home culture. Each location and cultural community has strengths you can learn from if you are open to them.
Be patient . Take your time, and know a silent period is normal. The textbook language classes only provide a base from which you will learn how people who live in the host country actually communicate. You didn’t learn to walk in a day and won’t learn to successfully navigate this culture overnight either.
Be a student and a teacher . You are learning as the new member of the community, but as a full member of your culture, you can share your experiences as well.
Be an explorer . Get out and go beyond your boundaries when you feel safe and secure. Traveling to surrounding villages, or across neighboring borders, can expand your perspective and help you learn.
Protect yourself . Always keep all your essential documents, money, and medicines close to you, or where you know they will be safe. Trying to source a medicine in a country where you are not fluent in the language, or where the names of remedies are different, can be a challenge. Your passport is essential to your safety and you need to keep it safe. You may also consider vaccination records, birth certificates, or business documents in the same way, keeping them safe and accessible. You may want to consider a “bug-out bag,” with all the essentials you need, including food, water, keys, and small tools, as an essential part of planning in case of emergency.

KEY TAKEAWAYS

Research one organization in a business or industry that relates to your major and has an international presence. Find a job announcement or similar document that discusses the business and its international activities. Share and compare with classmates.
Conduct a search on expat networks including online forum. Briefly describe your findings and share with classmates.
What would be the hardest part of an overseas assignment for you and why? What would be the easiest part of an overseas assignment for you and why?
Find an advertisement for an international assignment. Note the qualifications, and share with classmates.
Find an article or other first-person account of someone’s experience on an international assignment. Share your results with your classmates.
Communication For Business Success. Authored by : anonymous. Located at : http://2012books.lardbucket.org/books/communication-for-business-success/ . License : CC BY-NC-SA: Attribution-NonCommercial-ShareAlike

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5 Tips for Managing Successful Overseas Assignments

Andy Molinsky
Melissa Hahn

Stay in constant touch and have a plan for their return.

Sending talented employees overseas can be a promising way to leverage the benefits of a global economy. But expatriate assignments can be extremely expensive: up to three times the cost of a person’s typical annual salary, according to some statistics. And despite the investment, many organizations lack the know-how for optimizing the potential benefits, leaving them disappointed with the results. The unfortunate reality is that even companies providing well-crafted relocation packages (including the all-important cultural training) may not have the talent management mechanisms in place to truly leverage the valuable skills expatriate employees gain during their assignments.

Andy Molinsky is a professor of Organizational Behavior and International Management at Brandeis University and the author of Global Dexterity , Reach , and Forging Bonds in a Global Workforce . Connect with him on LinkedIn and download his free e-booklet of 7 myths about working effectively across cultures .
Melissa Hahn teaches intercultural communication at American University’s School of International Service. Her new book, Forging Bonds in a Global Workforce (McGraw Hill), helps global professionals build effective relationships across cultures.

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Compensation and Benefits: Essentials of International Assignment Management

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First Online: 28 April 2016
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Juergen Czajor 2

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Internationalization became an essential strategic dimension for companies to ensure profitable growth. International assignments play an important role to implement this strategy. As a consequence the number of international assignees is growing year by year; they work as interface manager between headquarters and branch office, as cultural ambassador, or as technical specialist to transfer knowledge. For ambitious and open candidates, a position in a foreign country and in a different culture can be an interesting step to further develop their professional career. International assignment management first of all needs a policy framework, defining the compensation and benefit package, especially the typical assignment allowances depending on distance to the home country and hardship of the host country. The administration of international assignments secondly requires standardized processes for all phases of an assignment, from selection to reintegration and with clear allocation of roles and responsibilities between all human resources partners involved. Organizations exchanging bigger numbers of specialists and executives between several countries work with centralized assignment management teams, who cooperate with local HR in the host countries and often use external partners for relocation, social security, payroll, and taxation to manage this complex task.

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Deutsche Industrie- und Handelskammer in Japan (DIHKJ) –Auditor – (2007) Expatriate versus Local, Vor- und Nachteile von Expatriates in japanischen Tochtergesellschaften deutscher Unternehmen. http://japan.ahk.de

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Czajor, J. (2016). Compensation and Benefits: Essentials of International Assignment Management. In: Zeuch, M. (eds) Handbook of Human Resources Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-44152-7_73

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Lessons from an international assignment

Robert S. DeVries

An international assignment has long been seen as providing executives with an opportunity for personal growth and professional development, while enabling companies to place executives in markets where specific capabilities are needed or to spread corporate values and best practices throughout the organization. With business footprints expanding and international markets becoming increasingly important drivers of revenue and profit growth, companies need executives who are global thinkers with broad-based business perspectives and the agility to master an array of markets, cultures, competitors and workforce differences.

As these capabilities become even more important, having a meaningful assignment outside one’s own market has become a critical element of executive experience and is likely to become a prerequisite for career advancement at a growing number of multinational companies.

We asked several senior executives to think back to their first or most memorable international assignment and share how those experiences helped to shape or influence their leadership styles. What surprised them the most? What did they learn and how have they continued to apply those lessons in their current leadership roles? Finally, what advice would they give to other executives about succeeding in an international assignment?

Philippe Bourguignon

Vice chairman, revolution places, and ceo, club med, what surprised you.

Someone who was born and raised in his country and, when he is 25, 28, 30, is posted abroad, obviously, learns so much during his first assignment. I was raised in Morocco. My father worked for a U.S. company, and I came to the U.S. almost every year when I was a young boy. Therefore, I’ve been exposed and living international from basically almost the time I was born. It is more a way of life, and, by the way, this has been a huge gift. My two children were born in New York and raised in the U.S., and today they are totally bicultural.

What have you learned?

I like to say that I’ve learned patience in Asia, and I’ve learned what competition means in the U.S., because I’m from a country where there is no patience and limited competition.

What I also learned by working internationally is that if you keep good sense — remain grounded in basic business judgment and rules — you can work in any foreign environment. Good sense is key. Some people try too hard to be too local, understand everything, but you will never understand a foreign country as well as you understand your native country, even if you speak the language. But good sense is the same everywhere.

What advice would you give to others based on your experience?

To an executive, my advice would be to listen and be humble. Listening is very important. Be humble and respectful. The tendency, particularly if you go into emerging countries, is to consider that everything else is not as well done. But being humble and respectful of people buys you tremendous mileage no matter where you go. You need to be more humble abroad than you are at home and more respectful.

When you are abroad, things are over-amplified. Being abroad over-amplifies your body language, your words and your decisions. Whatever you say is listened to twice as carefully as when you say it at home. You are watched much more closely than you are at home — for both good and bad.

John Doumani

Managing director, australasia for fonterra cooperative group, what did you learn.

The business issues were not that hard to discover, but the bigger issues for me were actually more cultural. The culture in the U.K. was similar to here, and there was a relatively informal work environment where you can joke around a bit. This is my style and it translated really well. However in Italy and the U.S., the work environment is more formal, and I had to adjust my style to be conscious of this. Had I not done so, I would not have been able to be effective working for the organization. You have to be very careful not to offend people. If you want people to follow your leadership, you have to engage them in a way that works for them.

Seventy percent of what you know about business will translate, but the other 30 percent — the difference between success and failure quite often — comes down to truly understanding the business dynamics that might be different. Market dynamics vary greatly in terms of regulations, trade and competitive structures. You’ve got to make sure you get your head around this because it will affect your ability to implement what you want to do, and you have to modify whatever you do to fit in.

The bigger issue is to be really sensitive to cultural differences. There’s no shortcut in being able to do this other than to have an open mind and be willing to accept any differences. You can’t go with the attitude of, “I’m just going to do what I do and if they don’t like it, stuff it!” The first thing is to accept that the cultural issues are really important. Accept the fact that it may be different and be really open-minded. The sooner you identify and are open to any differences, the better.

Philip Earl

Executive vice president and general manager, publishing for activision blizzard, what most surprised you.

Having worked in Saudi Arabia, having worked in Australia, having worked in Los Angeles, what surprised me the most is that there are more similarities than differences in the people across countries.

I learned the importance of understanding the pace of change: how much to do and how quickly. You have to be very astute in understanding the capabilities of the organization in the marketplace. It can be too fast, but can also be too slow. There is no right or wrong answer. You have got to accept that you can have a very strong strategy and you can have a very good vision, but unless you bring the team with you, it is just disconnected. Your people capability platform will determine whether to go faster or slower.

What people leadership insights have you gained?

Something interesting I have learned is the fact that people are motivated by different things, and understanding what most drives a specific individual lies at the heart of leadership. Often you assume people are concerned about money. It almost always isn’t the case. There has to be a base level of remuneration, but in three years working with video games people, I have Harvard graduates who just want to work in that industry; it motivates them to be part of something amazing. It is a passion for them. Some people are motivated by a very strong sense of family and a sense of community. If you are not careful and gloss over individual motivations, you never get the most out of people. You have got to understand people. There can be 10 nuances of what motivates them, and if you get that right, despite cultural differences, you can usually do quite well.

My advice is to “be in.” When you go to a new market, don’t hang around on the side; just get in there. Absorb the culture, language, food, sport, everything. You get a reaction from your work colleagues that is really incredible and makes you feel that you really want to be here, and as a consequence, they see you as an expat wanting to be here.

Conrado Engel

Chief executive officer, hsbc bank brazil.

The most important thing was how careful you have to be about managing cultural differences. People react differently to situations, and this is very challenging. For example, the way you interact with a Chinese company is completely different from an Indian one. Individuals can interpret situations very differently. Early during my assignment in Hong Kong, after a meeting where we were assigned tasks for a particular project, I asked an executive for a status update prior to the due date. I realized later that this made the executive feel very uncomfortable, because, as he said, he would fulfill his commitments; it was part of his responsibility. Again, it demonstrates the importance of understanding cultural differences.

What personal or professional lessons from your international experience have remained with you?

Managing any business is about managing people. Dealing with different cultures and reactions is crucial. I learned to listen more and reflect more before taking immediate action. I also learned that people can significantly benefit from each other’s experience. For example, I believe that my experience in dealing with crisis management as a Brazilian executive was very beneficial to the HSBC Group when I was in Hong Kong.

You have to visit people, go and visit the countries and the operations, and establish strong professional connections. Personal relationships may also help. Understanding the cultural environment is of vital importance. Learning how to navigate a large organization like HSBC — with a strong internal culture, with very strong roots in Asia — is also critical for success.

It is always best to listen, comprehend and then act.

Kirk Kinsell

President of the americas, intercontinental hotels group.

Based in London, with responsibilities for Europe and Africa, the things that surprised me were the diversity of thinking and the distinctive cultures and, therefore, how people felt, how people thought, how they processed information and what was important to them varied tremendously. As a result, there was more dialogue, which oftentimes meant debate. Having to have that broader discussion on issues was intriguing, challenging and fulfilling. Initially, the discussion can feel like it’s slowing things down, but when you reset expectations and build in opportunities for debate, what I have found is that, even though people may not agree with the ultimate decision, the process allows people to align and walk out of a meeting on the same page.

What personal or professional lessons have remained with you?

I made it a point to get underneath the differences between my new environment and what I was used to at home, and understand the history and the stories behind the surface. I began to appreciate the differences for how they enrich the environment that I was in, creating a more holistic and colorful tapestry from an aesthetic standpoint.

Coming back to the United States, I find myself wanting to go deeper with people who I otherwise would have thought were just like me. As a result, I think I have the potential to build stronger relationships. I have the potential to be a better leader. Because our job as leaders is to unlock the potential of the people we work with and the people we have the privilege of leading and managing. And, therefore, I can get perhaps a better perspective of who they are and their motivations and how they align with the company’s purpose and objectives.

What advice would you give others based on your experience?

To another American, I would say dialing down the fact that you’re American and dialing up being a global citizen is probably a much more effective way of engaging people. It doesn’t mean that you change your principles or your beliefs or your value system; it means being sensitized to how you come across. Saying things like, “We do it this way back there” — meaning that was the only good way — can come off as being too American, too know-it-all, too celebratory, too cheerleading, too shallow, all those things that are sometimes attributed to being American.

Murilo Portugal

President of febraban (brazilian federation of banks).

My most relevant international experience was to work with International Monetary Fund. It provided me a great opportunity to understand the reality of other countries. Since I was responsible for the fund’s relations with 81 countries in all five continents — from advanced countries such as Sweden to developing countries such as Bhutan — I had to understand different environments and market dynamics. In this role, I came into direct contact with the reality of different countries, different economic cycles and stages of development, from crisis to growth moments. What did not surprise me, unfortunately, was the reaction in some places to the economic crisis in 2008, in particular, the difficulty of entering into a discussion with governments and the denial about the gravity of the problems.

Do not postpone the inevitable. Trying to escape an inevitable conclusion will increase the costs related to the decision, but it is hard to define what you should fight for, and what to give up.

What personal or professional lessons from the experience have remained with you?

Life is the best teacher. The only problem is that there is only one pedagogy. You learn when you hit a wall, and usually you have to go through this painful process to learn. Even if you rationally know what to do, usually you only change when you hit a wall, because of the limitations in the decision-making process and human behavior.

Respect the level of the professionals who work with you, and learn how to best deal with very smart people and motivate them. Well-qualified people, of course, have their own ambitions and personal interests. It is critical to maintain the enthusiasm of people in a multicultural environment, and devote time for that. You have to be a manager of people, otherwise you will fail even if you are capable of managing processes and tasks. Technical knowledge alone will not make you successful.

This article is included in Point of View 2012 .

International Assignment Agreement

Jump to section, what is an international assignment agreement.

An international assignment agreement is a contract between an employer and employee that formally assigns the latter to a position in a foreign country. Several pieces of important information are contained within this contract, such as where the assignment is, how travel and lodging costs will be paid, how much the compensation is, and how long the assignment will last. It also lays out specific terms and conditions surrounding how to shorten or lengthen the assignment and what will take place if unforeseen circumstances occur, such as random acts of nature.

Common Sections in International Assignment Agreements

Below is a list of common sections included in International Assignment Agreements. These sections are linked to the below sample agreement for you to explore.

International Assignment Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-10.10 25 dex1010.htm INTERNATIONAL ASSIGNMENT AGREEMENT - JOHN TOWNSEND , Viewed September 16, 2022, View Source on SEC .

Who Helps With International Assignment Agreements?

Lawyers with backgrounds working on international assignment agreements work with clients to help. Do you need help with an international assignment agreement?

Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate international assignment agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our International Assignment Agreement Lawyers

I am a business law attorney with over 10 years’ experience and a strong background in information technology. I am a graduate of the University of California Berkeley, a member of the Illinois bar and a licensed lawyer (Solicitor) of England and Wales. I actively partner directly with my clients or indirectly, as Of Counsel, to boutique law firms to streamline business practices and manage legal risks by focusing on essentials such as - business contracts, corporate structure, employment/independent contractor agreements, website terms and policies, IP, technology, and commercial related agreements as well as business risk and compliance guidance.

I am a New Jersey licensed attorney and I have been in practice for over nineteen years. My practice mainly consists of representing public entities (municipalities, school boards, etc) and businesses, both small and large. In that capacity, much of work consists of drafting, reviewing and revising contracts.

I am a corporate lawyer with expertise working with small businesses, venture capital and healthcare. Previously, I worked at large law firms, as well as head attorney for companies. I graduated from Harvard College and University of Pennsylvania Law School. I speak 5 languages (Spanish, French, Italian and Russian, plus English), visited over 60 countries, and used to compete in salsa dancing!

Abby is an attorney and public policy specialist who has fused together her experience as an advocate, education in economics and public health, and passion for working with animals to create healthier communities for people and animals alike. At Opening Doors PLLC, she helps housing providers ensure the integrity of animal accommodation requests, comply with fair housing requirements, and implement safer pet policies. Abby also assists residents with their pet-related housing problems and works with community stakeholders to increase housing stability in underserved communities. She is a nationally-recognized expert in animal accommodation laws and her work has been featured in The Washington Post, USA Today, Bloomberg, and Cosmopolitan magazine.

Matan is an experienced M&A, corporate, tax and real estate attorney advising closely held businesses, technology start ups, service businesses, and manufacturers in purchases, sales, and other exit strategies. Matan works with founders and first-and-second generation owners to strategically transition businesses.

Accomplished and results-driven business attorney with extensive experience in commercial real estate / project finance, commercial transactions, and entity formations, that possesses a winning blend of subject matter expertise, skill in client relationship management, and practical experience. Leverages a unique mix of legal, strategic, and analytical expertise that consistently meets and surpasses client expectations. Specialties: Commercial Real Estate Law, Contract Negotiation, Entity Formation, Joint Ventures, Procurement, Lease/Buy/Sell Transactions, Business Consultations, Team Leadership, and Economic Development

Jonathan D.

Miami-based duly licensed attorney and customs broker with significant experience in various types of supply chain business agreements, as well as experience in entertainment law.

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What to consider before accepting an international assignment

The need for companies to place their best people in foreign countries has increased over the past decade due to growing world trade, saturated domestic markets and increased competition. with this need, international assignments have become increasingly common..

The prospect of an international assignment can be very exciting, an opportunity to develop new skills and experience new cultures. However, embarking on an international assignment takes careful planning if the transfer is to be a successful one for you and your family.

We explore some factors you may want to consider before accepting an international post.

What do we mean by international assignment?

The impact on your career.

There is no doubt that an international assignment can be very rewarding and fulfilling, a largely positive experience.

Assignees get to experience new business environments and office cultures, while broadening their global mind-set, useful traits in any organisation.

In general, the more carefully you plan for an international post, the better your chances of success.

Assignees should find out as much as possible about the new position before accepting. Even if the move is internal, the culture in the new office may be very different from what you are used to. Thorough research is vital.

Investigate what makes the new position different from your current position. Why were you chosen for this role? What will success look like in your new role?

Remember the international assignment is not just about you. Your job performance has earned you this assignment, but you must bear in mind your companies objectives in sending you overseas. Understand the challenges and the company’s needs.

Family and relationship considerations

Obviously family considerations are incredibly important when considering an international assignment. At first the prospect may seem daunting, however, with careful planning and preparation, moving abroad can also be one the most rewarding and fulfilling experiences a family can have.

For the best chance of a successful move, involve your family in the decision making process from the outset. Researching the country, culture and logistics should be a family project.

There are many considerations, particularly when moving abroad with children . We’ve published some informative guides to help with choosing a school for expat children , learning a foreign language and moving overseas with your pets .

Financial considerations and remuneration package

When weighing up financial considerations in relation to your assignment, factors other than salary should be considered, including;

Cost-of-living allowance
Accommodation allowance
Tax reimbursement
Children’s education allowance
International healthcare plan
Pension continuation

Health insurance and repatriation plan

Whether provided by your company as part of your compensation package or through a private policy, a good international health insurance plan is crucial to ensure continued access to quality healthcare and avoid expensive medical fees while overseas.

International health insurance is designed for those living or working overseas for a prolonged period of time. It covers treatment for both emergency and routine healthcare, and provides expats with flexibility in terms of choice of doctor and treatment facility, with the ability to receive treatment anywhere within their region of cover.

When experiencing a medical emergency, or even routine medical care, in a country where you are not familiar with the health system, and where you do not speak the language, international health insurance cover will ensure you get the medical attention you need.

When assessing health insurance options, expats on international assignment should consider including a repatriation plan .

Be prepared to adapt

The ability to adapt is important for a successful assignment. In addition to adapting to different language, culture, regulations etc... You may also need to adapt your own work and leadership styles to better fit with your new situation.

Keep in mind that an international assignment presents an opportunity to develop an international professional network, as well as developing your social network and meeting new people in your host country.

Keep in touch with your colleagues back home

Remember to plan for your return, staying in contact with colleagues and friends in your home country will make the transition back home easier.

An international assignment is a wonderful opportunity to develop yourself personally and professionally, as well as exposing your family to exciting new cultures and people. Advance preparation and careful consideration can ensure that time spent on international assignment will be some of the most valuable of you and your families lives.

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18.7: The International Assignment

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Learning Objectives

Describe how to prepare for an international assignment.
Discuss the acculturation process as an expatriate.
Describe effective strategies for living and working abroad.

An efficient, effective manager in any country is desirable, but one with international experience even more so. You will represent your company and they will represent you, including a considerable financial investment, either by your employer (in the case of a professional assignment) or by whoever is financing your education (in the case of studying abroad). That investment should not be taken lightly. As many as 40 percent of foreign-assigned employees terminate their assignments early (Tu, H. and Sullivan, S., 1994), at a considerable cost to their employers. Of those that remain, almost 50 percent are less than effective (Tu, H. and Sullivan, S., 1994).

Preparation

Points to consider include the following:

How flexible are you?
Do you need everything spelled out or can you go with the flow?
Can you adapt to new ways of doing business?
Are you interested in the host culture and willing to dedicate the time and put forth the effort to learn more about it?
What has been your experience to date working with people from distinct cultures?
What are your language skills at present, and are you interested in learning a new language?
Is your family supportive of the assignment?
How will it affect your children’s education? Your spouse’s career? Your career?
Will this assignment benefit your family?
How long are you willing to commit to the assignment?
What resources are available to help you prepare, move, and adjust?
Can you stand being out of the loop, even if you are in daily written and oral communication with the home office?
What is your relationship with your employer, and can it withstand the anticipated stress and tension that will result as not everything goes according to plan?
Is the cultural framework of your assignment similar to—or unlike—your own, and how ready are you to adapt to differences in such areas as time horizon, masculinity versus femininity, or direct versus indirect styles of communication?

Acculturation Process

Acculturation, or the transition to living abroad, is often described as an emotional rollercoaster. Steven Rhinesmith provides ten steps that show the process of acculturation, including culture shock, that you may experience:

Initial anxiety
Initial elation
Initial culture shock
Superficial adjustment
Depression-frustration
Acceptance of host culture
Return anxiety
Return elation
Reentry shock
Reintegration

Living and Working Abroad

Be open and creative . People will eat foods that seem strange or do things in a new way, and your openness and creativity can play a positive role in your adjustment. Staying close to your living quarters or surrounding yourself with similar expats can limit your exposure to and understanding of the local cultures. While the familiar may be comfortable, and the new setting may be uncomfortable, you will learn much more about your host culture and yourself if you make the effort to be open to new experiences. Being open involves getting out of your comfort zone.
Be self-reliant . Things that were once easy or took little time may now be challenging or consume your whole day. Focus on your ability to resolve issues, learn new ways to get the job done, and be prepared to do new things.
Keep a balanced perspective . Your host culture isn’t perfect. Humans aren’t perfect, and neither was your home culture. Each location and cultural community has strengths you can learn from if you are open to them.
Be patient . Take your time, and know a silent period is normal. The textbook language classes only provide a base from which you will learn how people who live in the host country actually communicate. You didn’t learn to walk in a day and won’t learn to successfully navigate this culture overnight either.
Be a student and a teacher . You are learning as the new member of the community, but as a full member of your culture, you can share your experiences as well.
Be an explorer . Get out and go beyond your boundaries when you feel safe and secure. Traveling to surrounding villages, or across neighboring borders, can expand your perspective and help you learn.
Protect yourself . Always keep all your essential documents, money, and medicines close to you, or where you know they will be safe. Trying to source a medicine in a country where you are not fluent in the language, or where the names of remedies are different, can be a challenge. Your passport is essential to your safety and you need to keep it safe. You may also consider vaccination records, birth certificates, or business documents in the same way, keeping them safe and accessible. You may want to consider a “bug-out bag,” with all the essentials you need, including food, water, keys, and small tools, as an essential part of planning in case of emergency.

Key Takeaways

Preparation is key to a successful international assignment. Living and working abroad takes time, effort, and patience.

Research one organization in a business or industry that relates to your major and has an international presence. Find a job announcement or similar document that discusses the business and its international activities. Share and compare with classmates.
Conduct a search on expat networks including online forum. Briefly describe your findings and share with classmates.
What would be the hardest part of an overseas assignment for you and why? What would be the easiest part of an overseas assignment for you and why?
Find an advertisement for an international assignment. Note the qualifications, and share with classmates.
Find an article or other first-person account of someone’s experience on an international assignment. Share your results with your classmates.

Contreras, C. D. (2009). Should you accept the international assignment? BNET . Retrieved from findarticles.com/p/articles/mi_qa5350/is_200308/ai_n21334696.

Rhinesmith, S. (1984). Returning home . Ottawa, Canada: Canadian Bureau for International Education.

Tu, H., & Sullivan, S. (1994). Business horizons . Retrieved from findarticles.com/p/articles/mi_m1038/is_nl_v37/ai_14922926.

Pros and cons of an international assignment

Will it boost or harm your career.

February 1, 2021

There is no suspicion that working abroad is romantic. Living in a culture with different languages, habits, and working styles is an exciting and once-in-a-lifetime experience. It can not only much promote your career development, but also broaden your horizons. However, what many companies now call “global” assignments has some disadvantages. Some parts of the world are indeed dangerous for some visitors, but in most postings worldwide, the challenges are related to different cultures and ways of doing business. Here are some pros and cons of an international assignment to help you decide if it is a smart career move.

Pros of international assignment, international work experience.

Indeed, the world is growing and becoming more and more mobile and accessible. This is the main driving force. Business leaders today are not geographically constrained. Work experience in an international corporate environment and culture is often described as a prerequisite for most senior positions at major international companies. Instantly add diverse and multicultural elements to your portfolio and experiences to make them more appealing to your position on a global scale.

Global companies are paying more and more attention to international diversity, and there is no sign that this trend stops. Therefore, the overseas experience gained by international mission professionals will help those seeking senior management positions. If you are one of these ambitious professionals, the question should be whether you can afford not to participate in the international assignment?

The company devotes substantial resources to expats international assignments. Allocation itself is usually performed for a specific purpose, and ROI is an important goal. For example, you can transfer assignees with specific skills to a new location to lead a project that is considered essential. Therefore, being selected for a job is usually a compliment, but it is also an opportunity. A successful project overview allows you to prove that you are the assignee and develop your career from the benefits of success. If you can withstand the pressure, then your international assignment can prove beneficial. Are you ready to move forward and succeed?

Experience Different Ways of Doing Business

Learning a particular field and working in that field in the same country means a fairly fixed set of expectations and assumptions. Overall, understanding how other countries treat your industry and business can be an excellent way to open yourself to new ways of doing things. The best part? Wherever you are, you will get these learning outcomes.

Diversify Your Income

When it is difficult to predict what will happen politically, earning income in different currencies is an excellent way to diversify risks and protect the financial future. For example, in the past two years, the pound sterling value has changed 30% from the value of the euro. If you are particularly interested in the domestic economy, relocation is still a way to obtain better salaries and employment opportunities in a more stable business environment.

Explore the world

If you are passionate about traveling, nothing is better than working abroad. Not only you experience the country more deeply, but you can also get rewarded for it. You do not need to spend two weeks to get to know the country’s culture and personality directly. This is also an excellent opportunity to explore neighboring countries. If you are learning a language, immersion in the countryside is also an excellent way to quickly improve your skills.

Cross-Cultural Communication

Cons of an international assignment, emotional problems.

Life as an expat is a rewarding experience. However, it can be challenging. Loneliness, culture shock, and nostalgia usually overwhelm foreigners, and not all migrants are ready to face this strong, perhaps new emotion. The combination of pain and diligence described above has reportedly resulted in high burnout among professional immigrants.

Less Job Flexibility

You love your new country, but do you hate work? Unlike going home, if your position is not suitable for you, you can shop here. Working abroad may mean that your job is linked to your visa. Even if you are not restricted by a visa, your lack of language skills and local experience may limit your escape options.

Interrupted Career Progression

For outsiders, “Out of sight, out of mind” can be a very familiar word. Even if you live in the same company, you do not go out every day or work in different time zones. This means that good impressions are slowly disappearing and are no longer the number one promotion. In the country of visit, it may be necessary to take a junior position due to a lack of local experience or limited language skills, which can feel like a step back professionally.

Cultural and Language Barriers

Among foreigners who cannot establish the necessary business relationships or live daily lives, posting emails in places where there is a tremendous cultural difference or where communication in a new language is required can cause trouble. Non-traditional families, such as gay couples, may face cultural resistance and pressure, making assignment management difficult in the long run

Legal risks

Domestic work laws and regulations regarding wages, taxes, and pensions usually differ between residents and foreigners. As with immigration requirements, compliance with legal requirements must be ensured.

Technological change

Your country’s technology can lag foreign countries for several years. After returning home, it may take several months to digest all the changes.

As global mobility increases, many employees want foreign stamps on their passports to support their personal growth and career development. They are increasingly looking for commuters, rotational, expatriate, or other alternative jobs to build resumes. International assignments are an essential tool for international career development. In this case, employees with international experience are the greater wealth for the organization.

Some potential business traveling international career in which global travel is usually necessary like international accountant, marketing and sales International missions help improve cultural literacy, promote foreign language learning, expand professionals’ network, and broaden their horizons. But of course there are always pros and cons of an international assignment.

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Managing International Assignments: Compensation Approaches

A new international assignment landscape is challenging traditional compensation approaches

For many years, expatriate compensation has been focused on a dilemma: having assignees on expensive home-based expatriate package versus localization - which is about replacing expatriates with locals or at least transition expatriates from an expatriate package to a local salary. Many predicted that the traditional home-based balance sheet approach would gradually disappear. The predictions of the demise of the typical expatriate approach have been greatly exaggerated. We are witnessing the emergence of new compensation challenges instead, due to the complexity of having to manage multiple types of assignments and assignee categories.

The home-based approach still retains its utility for certain kinds of moves (e.g. business-critical assignments or moves to hardship locations). Local strategies are becoming more common but, due to the difficulty of applying them consistently in all transfer destinations, they are used only in some cases (moves between similar countries, developmental moves) and take multiple forms as “purely local” or local-plus approaches. Additional approaches like international compensation structures have emerged to address issues of global nomads.

The challenge for HR managers is, therefore, not so much to find the best approach applicable for all assignments as to deal with individual assignment complexity, envisage greater mobility policy segmentation and, if relevant for the company, map each compensation approach to a particular assignment in a consistent way.

The increasingly complex international assignment landscape: One size does not fit all anymore

Expatriates vs. Locals

One size fits all?

Let's localize assignees as soon as possible!

Expatriates

Rise of the third-country nationals

Need to add a cost efficient category for junior employees/developmental moves?

Traditional expatriates

Global nomads

Permanent transfers

Employee-initiated moves

Local or local plus?

Foreigners hired locally

Commuters (cross-border or regional

Multiple types of short-term/project/rotational assignments

Increasing number of home locations

Reviewing international assignment approaches in three steps:

Step 1: Understand the options available

Approaches linked to the host country (local or local-plus)

While these approaches sound logical and natural (when relocating assignees to a new country, they will be paid according to the local salary structure in that destination country) their practical implementation is often tricky. Few employees accept a salary decrease when moving to a low-paying country. It is often difficult to reintegrate assignees relocated to a high-paying country into their original salary structure due to their inflated base salary.

The host approach was historically not the most common for assignees on long-term assignments. However, we have witnessed a growing interest in recent years in host-based approaches – either a host approach or local-plus approach (host salary plus selected benefits or premiums) – as companies are trying to contain costs and as significant salary increases in many emerging markets make host strategies more attractive.

Approaches linked to the home country ("balance sheets")

Home-based approaches have been traditionally the most commonly used to compensate international assignees. Assignees on a home-based approach retain their home-country salary and receive a suite of allowances and premiums designed to cover the costs linked to expatriation. The equalization logic behind the balance sheet approach (no gain/no loss) encourages mobility by removing obstacles. Retaining the home-country salary facilitates repatriation. The balance sheet approach can, however, be costly. Many companies either look for alternatives or try to reduce the benefits and premiums included for less significant moves.

Step 2: Assessing assignment patterNs and business objectives

Assignment patterns

Are assignees moving between countries with similar salary levels, which would make the use of local or local plus easier or, on the contrary, are expatriates sent to host countries with different pay and benefits structures (low-paying to high-paying, or high-paying to low-paying country moves)? Are moves for a fixed duration – e.g., assignments lasting one to five years – or will the company rely on permanent transfers with no guarantee of repatriation?

Assignee Population

Are assignees coming mainly from the headquarter countries (typical for early stages of globalization) or is the number of third-country nationals already significant? A growing number of multinational companies report that the number of moves between emerging markets (“lateral moves”) is catching up with or exceeding the number from the headquarters, prompting a review of compensation approaches.

Are some assignees becoming true global nomads who move from country to country without returning home during their career? Employees, and especially the younger generations, are becoming much more mobile, but only a minority would be global nomads. These assignees are usually top-level managers, experts with unique skills, or globally mobile talent sourced from small or emerging countries where the absence of career opportunities perspective would preclude repatriation perspectives.

Company's philosophy and sector

Some industry sectors like services and finances relocate employees between major regional and financial hubs which facilitate the use of local approach, whereas energy and engineering companies transferred employees to hardship locations are a key feature of the business – and requires comprehensive expatriation packages often based on balance sheets and international salary structures.

Step 3: Assess segmentation needs

An increasing number of companies rely on expatriate policy segmentation to reconcile the cost control versus international expansion dilemma – how to have the same number of assignments or more without increasing the budget dedicated to international mobility. Segmentation means reallocating part of the budget to business critical assignees and limits the costs of non-essential moves.

Some of the commonly used assignment categories include strategic moves (business-critical), developmental moves (which benefit both the company and the employee), and self-requested move (requested by the employee but not essential to the business).

A consistent policy segmentation approach allows HR teams to present business cases or assignment options to management and provide a clearer understanding of the cost and business implications of relocation for different assignees.

It could also help manage exceptions into a well-defined framework based on a consistent talent management approach, as opposed to ad hoc deals.

Example of segmented compensation approach: the four-box model

Chart showing segmented compensation approach: the four-box model

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global assignment

Quick reference.

Is a job assignment within a multinational corporation that involves expatriation; that is the relocation of an employee to another country. Specialists in international human resource management identify different types of global assignment. Technical assignments occur when employees with technical skills are sent from one country to another to fill a particular skill shortage. Developmental assignments, in contrast, are typically used within a management development programme and are used to equip managers with new skills and competencies. Strategic assignments arise when key executives are sent from one country to another to launch a product, develop a market or initiate another key change in business strategy. Finally, functional assignments resemble technical assignments but differ in one important respect. Technical assignments do not require the assignee to interact extensively with employees in the host country but this is a requirement of functional assignments and for this reason assignees are often prepared through cross-cultural training.

From: global assignment in A Dictionary of Human Resource Management »

Subjects: Social sciences — Business and Management

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International Assignments: Who's Going Where and Why?

What does the global-mobility landscape look like today?

According to global relocation services provider Cartus’ recent 2013 Trends in Global Relocation Survey, younger employees are most interested in taking international relocation assignments, with career development being the main reason, and sequential assignments are on the rise.

The survey’s findings shed light on who companies are moving (and where), what criteria they are using to select their mobile talent, and how they’re linking talent management to global mobility.

Assignee Demographics

The demographics of the expatriate population appear to be steady in terms of gender, with the percentages of both men (79 percent) and women (21 percent) shifting only slightly from 2012.

Generation X employees (56 percent) represent the largest age group of transferees. Baby Boomers (20 percent) posted a slight increase over 2012, while the youngest group—Millennials, or Generation Y (20 percent)—showed a significant increase.

Married expats with accompanying families are still the most common but have become a smaller percentage of global workers over the past six years. The category of those “married and traveling solo” has gained the most in percentage points over this period.

In general, younger, single male employees are showing the highest interest in global assignments, according to the survey. Women, Baby Boomers and employees with families are showing less interest in working abroad.

This profile holds true when the destination is an emerging market.

“Given the issues with schooling, housing and in many cases security, the lack of interest among assignees with families is not surprising,” the report said.

Some of the respondents’ comments include:

“Dubai and the Middle East have their limitations for certain lifestyles. People with family are not so open to move their family to areas with little infrastructure.”
“There is low interest in African regions.”
“Employees seem to be less interested in going to certain locations if assignment allowances do not properly reflect the hardships that exist in the new work/life environment.”
“As the quality of lifestyle in emerging markets can vary when compared to a developed country, it is difficult for entire families to relocate to these types of countries. We have implemented two-year assignments in these regions, which seem to be working, with a limited time in more challenging environments.”
“Although Millennials are interested in these types of assignments, we need highly experienced people to go in and develop our emerging markets, so sometimes the interest and the experience needed to be successful are out of sync.”
“Employees with families tend to shy away from emerging markets. They look for places with more stable economies and social systems, especially for reasons of safety, security and schooling. They are also concerned about fluctuations in currency and overall earning and savings power.”

Most and Least Desirable Locations for Assignments

When asked which of the developed countries generated the most employee interest for assignments, the clear choices were the U.S., U.K., Australia, Singapore and Canada.

Tier I India and China (developed cities such as Mumbai and Shanghai) ranked as the locations that workers were most resistant to relocating to among the developed countries, indicating these are still perceived as challenging markets.

For emerging-market locations, Brazil topped the list of nations to which employees most wanted to go, followed closely by the United Arab Emirates. Among the emerging-market countries that professionals were reluctant to work in are Nigeria, Saudi Arabia and Russia. Notably, Tiers II-IV for both India and China show up as generating significant interest and resistance. “This is likely attributable to the fact that as booming markets, they offer significant opportunities but also major challenges in infrastructure and other areas,” the report explained. “They are likely to be perceived differently depending on the assignee’s experience, appetite for adventure, and perception of the market’s importance to company goals.”

Motivating Factors

When asked for the main reasons why employees accepted an international assignment, companies said that while attractive compensation was named by a third of respondents (34 percent), the main motivating factors for employees were career development and advancement.

“This finding is a clear indicator that now is the time for companies to really start focusing on creating synergies across HR and businesses in order to ensure assignees are no longer ‘out of sight, out of mind’ and they are aware that the company is also focusing on their career. If employees’ value is not recognized, particularly the Gen Y/Millennial population, attrition rates will continue to rise,” according to the report.

Qualifying Criteria

As for the business criteria and qualifications that organizations seek when considering someone for an international assignment, leadership potential (80 percent) and technical skills (75 percent) were cited the most. A significant number of respondents (61 percent) also noted that the criteria depended on the project. Notably, only 33 percent are factoring in minimum performance ratings in selection criteria.

Flexibility and the ability to adapt to fluid circumstances (71 percent) led the list of behavioral characteristics businesses look for when considering an employee for an assignment abroad.

Second and third on the list of behavioral traits were career orientation and the desire to advance (63 percent), and the ability to work productively in an independent setting (57 percent).

Questioned about the family criteria their organization takes into account when considering someone for an international assignment, 68 percent of respondents said family status was not considered, while 25 percent said family criteria depended on the project.

Linking Talent Management and Global Mobility

When asked whether they agreed with the statement “The impact of an international assignment on an assignee’s career is positive,” 82 percent said yes, a 30 percent increase from 2009. “This supports the feeling that companies are paying more attention to, and realizing the importance of, how international assignments support employee growth, business value and retention,” the report said.

Building effective linkages between talent and global mobility will help ensure that assignments truly contribute to company business strategies, the report said.

According to respondents, the most frequently implemented strategies were:

Ensuring assignment objectives are incorporated into the employee’s performance review while on assignment (62 percent).
Collaborating with HR to ensure that employee performance ratings are considered for all workers on overseas assignments (60 percent).

The top three strategies under consideration:

Tracking postassignment employee advancement (63 percent).
Tracking postassignment employee retention (57 percent).
Developing a global talent pool for future assignments (56 percent).

Sequential Assignments Rising

Not all expatriates get to return home after an assignment. Fifty-eight percent of respondents have either many (13 percent) or a few (45 percent) “global nomads” who are on back-to-back assignments. More than half (57 percent) expect the sequential-assignment trend to stay about the same, and about a third (31 percent) expect the trend to increase.

Of organizations that said they have sequential assignments, 80 percent said they were typically long term, and the most frequent demographic profile was an older employee, Generation X worker or a Baby Boomer. This supports a general trend of companies sending more senior employees on this type of assignment, often with newer employees accompanying them for professional development, the report said.

Repatriation Lacking

Responding organizations ranked repatriation and career development highest among aspects of their relocation programs they most want to improve.

More than half (58 percent) of companies said they did not offer formal repatriation programs. Of those that offer these programs, only a third (33 percent) typically offer repatriation programs for long-term assignments. The most common reasons given for not offering these programs were lack of perceived value by the organization (60 percent) and cost considerations (35 percent).

Roy Maurer is an online editor/manager for SHRM.

Follow him at @SHRMRoy

Developing an Effective Global Mobility Program , SHRM Online Global HR, August 2013 International Assignments Expected to Increase in 2013 , SHRM Online Global HR, May 2013

Managing International Assignments , SHRM Online Templates and Samples, July 2012

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Lessons from an international assignment

Philippe Bourguignon

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John Doumani

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International Assignment Agreement

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International Assignment Agreement Sample

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What to consider before accepting an international assignment

What do we mean by international assignment?

Family and relationship considerations

Financial considerations and remuneration package

Health insurance and repatriation plan

Be prepared to adapt

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