One of IESE’s objectives is to provide guidance to companies already expanding their international business or about to do so. The recommendations arising from the study are a good starting point for analysis of what might be the most appropriate expatriation policy.

Innovative Approaches

Companies with a significant international presence are beginning to consider the creation of a “diplomatic corps,” made up of people who are prepared to constantly move from one country to another according to the company’s needs. These executives, from different countries and with international experience, would make up the company’s expatriate department. Although this would help reduce the typical expatriation problems, other issues would probably arise, such as the uprooting created by families not being permanently settled in one country.

Some managers add that, in any case, full internationalization will only be achieved when geographic mobility is accepted in recruitment as a normal situation typical of specific jobs. In this way the expatriate becomes just another worker in the country he or she is transferred to, no different from the local employees. This would open the door to a free exchange of employees of different nationalities among the parent company and the subsidiaries, irrespective of their country of origin. The elimination
of national barriers brought about by economic and political integration, as well as new technologies which make it possible for people to work from anywhere, would also contribute to this goal. This change is favored by teleworking and the creation of virtual teams.

Lessons Learned

Many companies have expatriated people by offering large amounts of money on a case
by case basis, according to the negotiating power of each employee. This has given rise to comparative grievances which have become more common as the number of expatriates has increased. In practice, it is advisable to apply some general financial conditions, leaving a certain amount of flexibility to adapt to differing family circumstances.

The study has highlighted the ineffectiveness of the ways in which companies monitor expatriates. It would therefore be worthwhile preparing well designed formal programs with the objective of establishing effective communication between the company and the expatriate. Despite the widespread use of e-mail and video conferencing, the personal touch of a telephone call or face-to-face conversation should not be neglected.

With regards to the role of the family, one of the recommendations is that the companies study the cultural adaptability of the candidate’s family members and solve any problems which directly affect personal and family balance. Seemingly insignificant details may be highly effective from the emotional point of view. For example, welcome gestures such as the direct boss personally going to the airport to meet the expatriate and his or her family upon arrival, to show appreciation for the efforts that both the employee and the family have made. As far as possible, spouses should be involved in the international project, and should be aware of the details of their partner’s task, especially if they have sacrificed their own professional career in favor of their partner’s. Similarly, it is necessary to ensure that the expatriate’s companion does not feel abandoned in the destination country and even help them to find a job.

Some companies emphasize the importance of cultivating the “image” of international assignments. If a repatriate conveys to his or her colleagues that expatriation was a dreadful experience or it is clear that expatriates return under worse conditions, international assignments will come to be seen more as a punishment than a reward. One way of avoiding this would be to reward expatriates with clearly and coherently drawn up career plans, and, above all, to show that both the personal and family aspects are really taken care of.

Getting Human Resources Right

Another recommendation invites companies to appoint expatriates as human resources managers, since they will better understand the professional and personal problems involved in foreign assignments. Likewise, repatriates waiting for an appointment might collaborate with the human resources department to improve aspects of the process taking advantage of their own international experience. Finally, some managers point out the mistake made by HR managers who focus on administrative tasks such as applications for work permits, the search for housing, schools, etc. These functions can be outsourced, giving them more time to devote to the design and management of expatriation policies.