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INTERNATIONAL HUMAN

RESOURCE MANAGEMENT

Repatriation

June 11, 2008 1


Repatriation
 Repatriation may be defined as the activity of bringing an
expatriate back to the home country

 Repatriation is the final step in the expatriation process


(recruitment & selection  predeparture training 
foreign assignment  repatriation or reassignment)

 Repatriation is important because with it are associated


a number of severe challenges for the expatriate which
may significantly determine his or her performance prior
to the return to the home country, and which hinder the
expatriate’s reintegration due to “readjustment problems”
or “reverse culture shock (reentry shock)” after return
June 11, 2008 2
Phase-wise Perspective of Repatriation

Preparation

Physical Relocation

Repatriation Process

Transition

Readjustment

June 11, 2008 3


Phases of the Repatriation Process (1)

 Preparation – Provision of information to the expatriate


to facilitate the return to the home country. Example:
Checklist of the things to do in the host country prior to
departure (closing accounts, payment of bills etc.)

 Physical Relocation – Includes activities such as


removing personal effects, breaking ties with colleagues
and friends and traveling to the home country. Help to
the expatriate and his or her family is usually provided by
relocation consultants or firms. Comprehensive and
personalized relocation assistance serves to reduce
anxiety, stress, uncertainty and disruption experienced
by the expatriate and his or her family
June 11, 2008 4
Phases of the Repatriation Process (2)

 Transition – Phase in which the expatriate and his or


her family readjust to their return to the home country.
Some companies hire relocation consults to assist in this
phase also. Typical activities include acquiring temporary
accommodation, making arrangements for housing and
schooling, performing necessary administrative tasks
(e.g. renewing driver’s license, applying for medical
insurance, opening bank accounts)

 Readjustment – This phase involves coping with


reverse culture shock and the expatriate’s career
demands on the organization

June 11, 2008 5


Expatriate Problems With Repatriation
(Career Anxiety)
 The effect of an international assignment on an
expatriate’s career path are major concerns for that
individual. Usually, an international assignment is
accepted because of its anticipated career benefits

 Anxiety may arise if an expatriate feels that his or her


career advancement opportunities are not
commensurate with the sacrifices made by the expatriate
and his or her family as a consequence of acceptance of
the assignment

 Anxiety over the reentry position in the organization may


occur long before repatriation

June 11, 2008 6


Expatriate Problems With Repatriation
(Possible Reasons for Career Anxiety)
 Period of absence from the home country has caused loss of
visibility, isolation and feeling of being forgotten for the
expatriate, especially if he or she is based in a subsidiary unit
with lots or independence and comparatively little contact with
the organization’s headquarters
 Worry over inadequate planning by the organization and that
the expatriate will be given a mediocre or makeshift job
 Worry about restructuring and/or downsizing measures
underway in an organization
 Lack of a guaranteed job upon return to the parent
organization Worry that the position given or return
corresponds to a “demotion”
June 11, 2008 7
Expatriate Problems With Repatriation
(Career Anxiety)
 The declining tendency of organizations to offer job
guarantees to expatriates after their return from a foreign
assignment may have adverse consequences in terms
of:

 Staff Availability
 Perception of Foreign Assignments (High-Risk Career Strategy)
 Heightened Career Anxiety
 Commitment to the Organization and Productivity while on the
Foreign Assignment

June 11, 2008 8


Expatriate Problems With Repatriation
(Devaluation of the Intern. Experience)
 Expatriates are often confronted with being offered
reentry positions that appear unconnected with their
international experience
 Sometimes returning expatriates are offered positions
that are less challenging and with reduced responsibility
and status than they had prior to going on their foreign
assignment (negative career progression), causing both
a demotivation (on the returning expatriate) and
deterrence (on potential expatriates) effect
 Devaluation of international experience and repatriate
turnover tend to be positively correlated
June 11, 2008 9
Expatriate Problems With Repatriation
(Loss of Status and Pay (1))
 International assignments often are associated with
considerable status and prestige for an expatriate, for
e.g. in terms of autonomy, more responsibility and a
prominent role in the local community (kingpin)

 Returning to the parent organization usually results in


the loss of autonomy and status

Over there, you are the big fish in a small pond.


Back home, you return to being the small fish
in a big pond!

June 11, 2008 10


Expatriate Problems With Repatriation
(Loss of Status and Pay (2))
 International assignments often bring with them several
compensatory benefits (expatriate premiums) and
additional savings, which have to be forgone when an
expatriate returns to the home country

 After returning from an international assignment, an


expatriate may no longer be able to purchase a home
similar to the one he or she may have sold prior to going
on the international assignment. Also, the standard of
housing in the foreign assignment location may have
been better than on return to the home country
June 11, 2008 11
Expatriate Problems With Repatriation
(Social Considerations (1))
 If an expatriate served in a foreign assignment in a high-
profile position where he or she enjoyed considerable
and sustained interaction with the social, economic and
political elites of the host country, a feeling of
disappointment may emerge after return to the home
country. This feeling may be excacerbated by the loss of
the expatriate compensation premium and other benefits

 In addition to the expatriate’s social readjustment


problems, the social readjustment problems of his or her
accompanying family members must also be taken into
consideration as well
June 11, 2008 12
Expatriate Problems With Repatriation
(Social Considerations (2))
 Reestablishment of social networks in the home country
may be difficult if, for e.g., the expatriate and family are
repatriated to another locality in the home country. It may
be that friends have moved away while the expatriate
was on assignment and that other friends may have
joined the workforce and have no time for social
activities

 Children may encounter social readjustment problems in


school because they are not update on latest trends, and
may have problems adjusting to their home country
educational system
June 11, 2008 13
Expatriate Problems With Repatriation
(Effect on Partner’s Career)
 Partners of expatriates may encounter problems in the
home country when they seek to enter or reenter the
workforce. Consequently, their self-esteem may decline,
hindering their readjustment, particularly if they were
employed prior to moving with the expatriate to the
foreign assignment location

 Given the increase in the number of dual-career couples,


the career problems of the expatriate’s spouse need to
be taken more into consideration

June 11, 2008 14


Expatriate Problems With Repatriation
(Case Study)

International Human Resource Management


Managing People in a Multinational Context

Peter J. Dowling, Denice E. Welch, Randall S. Schuler

3rd. Edition

Pages 219 - 220

June 11, 2008 15


Expatriate Problems With Repatriation
(Organizational Responses (1))
 Recent research indicates that the majority of
organizations have no formal repatriation programme to
help expatriates readjust on return to the home country

 Only a small proportion of the repatriation programmes


have consideration for the spouse

 Typical reasons given by organizations for not having a


repatriation programme include:

 Lack of the requisite expertise


 Programme cost
 Lack of a perceived need by top management
June 11, 2008 16
Expatriate Problems With Repatriation
(Organizational Responses (2))
 Some organizations provide a form of repatriation
assistance in the form of a “mentor”

 The mentor is usually a superior to the expatriate and


provides assistance in the form of information, by
maintaining regular contact with the expatriate, and by
taking the expatriates interests regarding promotion and
job placement on return etc. into account

 Research indicates that the likelihood of an organization


using mentors depends on the size of the expatriate
workforce, the organizational unit responsible for
handling expatriates and the nationality of the
organization
June 11, 2008 17

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