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IESE Business School - Anselmo Rubiralta Center for Globalization and Strategy Español

May - August 2005

  Index
An Unforeseen Problem
Backing Human Capital
The Expatriation Reality
Solutions for the Future
Integrated and Human Management
The Study at a Glance
Integrated and Human Management
Sandalio Gómez
Professor of Managing People in Organizations at IESE Business School

The process of economic globalization advances relentlessly and is already an everyday business phenomenon. The repercussions for operating management have forced companies to face up to previously unknown problems. For example, the need to temporarily transfer professionals to other countries, with all the business, financial, professional and family implications. This new situation does not allow a simplistic approach. Any expatriation policy must address the issues mentioned above since the success or failure of the whole process depends on them.

The first approach of companies is to focus purely on the business success of the project. To achieve this, they are prepared to assign whatever financial resources may
be necessary. But is it enough to merely select the most appropriate candidate and design a financially attractive package? In the majority of cases, no. It is necessary to broaden the focus to incorporate aspects linked to not strictly financial motivations, especially those which affect the candidate’s career path, emotional balance and family situation. The absence of these criteria in current expatriation practice demonstrates once again the lack of sensitivity apparent in managerial decisions which affect professional and human issues.

If the number of expatriates is low, the consequences are not too serious. Problems arise when there is a need to increase the number of international assignments: the associated costs rise, comparative grievances become commonplace, failures abound and the message conveyed to staff is demotivating for future candidates. On the other hand, as the first expatriates return to the parent company, they create real precedents which leave their mark, in a positive or negative sense, on the company’s values with respect to expatriates.

Expatriation – A Global Vision

The process of expatriation has become so relevant that it is necessary to replace the prevailing improvisation with a policy of planning based on a global vision. How can we safely manage each of the phases of expatriation? It’s a question of weighing up the importance of all the variables involved. To that end, it is advisable to get to know and to analyze the opinions and experience of executives who have worked as expatriates and who can help to improve the process.

The professional aspect is essential for the candidate since the transfer will have a decisive impact on his or her future career. It is therefore important to carry out some basic career path planning. Likewise, it is necessary to clearly inform them of the opportunities available to them, but also of the risks that they face. On the personal level, it is necessary to take into account both the candidate’s ability to adapt to different environments and the family balance that he or she will need. The sensitivity with which family issues need to be tackled makes it easy to focus on positive aspects, but it is also necessary to candidly evaluate the kind of difficulties that are likely to arise.

In short, how do you motivate the individual and make expatriation a success? By planning the candidate’s career path and taking into account the needs of the company; by drawing up standard approaches which convey consistency and coherence in order to avoid comparative grievances and real - rather than purely theoretical - knowledge of the effects each phase in the process has on the individual and on his or her family, with the aim of the company acquiring and showing greater sensitivity to the human dimension of expatriation.


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