International HR Management

HR and Expatriation Paper

Stephen Williams

3/24/17

Prof. Shannon M. Spitz

 Key aspects of the job description would be the duration of the trip. It

could be just for a year or it could be for five years. Another important part about the job

description is to include experience with long term foreign travel preferred. Although

depending on how big the company is you cant always limit yourself to only people with

experience since there are so few who have experience in expatriation or living in a

foreign country for a long period of time.

The first step of the selection process would be to form a selection panel. The

people who should be on the committee are someone from the selection firm, a manager

who works in the area of work that is being recruited, Human Resource staff from both

the host country and the home country. It is important for the selection panel to take there

time and discuss each applicant in depth. Expatriation is very expensive and rushing can

lead to bad decisions and choosing the wrong candidate. It is also crucial for the selection

panel to be completely transparent with the candidates about the difficulties and

challenges they will face in the host country. This will allow the candidate to decide

whether or not they are truly ready and capable of completing the assignment. A

candidate may never truly be able to tell for sure if they can handle the assignment but

being transparent with them will allow them to give them the best judgment to make the

most accurate assessment.

After forming the selection panel the next step would be to gather a list of

candidates to review for consideration of the assignment. Candidates who should be

given preference are those who have completed assignments in that region before or who
may speak the language or be educated on the culture of that region. The next list of

people who should be given preference, are those who have completed any assignment in

a foreign country even if not in that specific country. Any employee in the field of work

being recruited who has any kind of a long-term experience of adapting to another culture

for anything such as studying abroad or volunteer work in a different country should also

be given preference when being considered.

Once your list is complete you should schedule interviews and give the employees

personality tests. Studies show that people with certain characteristics are more likely to

be successful in expatriation assignments. The first of these characteristics is

extroversion. This is the level of which someone is social, active, and affectionate. The

second trait is agreeableness. This trait shows how cooperative, tolerant, forgiving, and

argumentative you are. Tolerance is very important when sending someone to a country

with a different culture. The third characteristic is emotional stability. This characteristic

shows how well you hold up to stress, anxiety, and how calm you are. The fourth is

Conscientiousness, this is the degree of how hardworking, organized, and dependable

someone is. The fifth and one of the most important characteristic, is Openness to

experience. Openness to experience shows how open, curious, and creative you are.

There are several ways that you can deduct if your candidates have these traits

you can come up with your own questions to ask, pay someone to create a custom survey

for your business or, use conventional widely used surveys. One of the best tests for

expatriation is the Big Five Personality test. This test covers four of the five

characteristics that you are looking for.

Once everyone has been interviewed and surveyed and you have chosen your top
pick for the assignment I would recommend having a second and third choice. This is

because your top pick may have a family. It is important that you have a meeting with

both the employee and their spouse so the spouse fully realizes the challenges they will

be facing if they agree to the assignment. One of the main reasons expatriates do not

complete their assignments is because spouses want to go home or want there spouse to

come back home. It is important that they both agree this is something they can handle

and want. They may decide that it isnt so it is good to have a second and third choice

available.

Once you have your candidate the next step is negotiation of salary and benefits.

It is important to offer a package that takes care of your employee and their family so

they are in a situation where they may succeed. Base compensation should be what they

would normally be paid if the were doing the job in the United States plus a foreign-

service premium. A foreign-service premium generally ranges from ten to fifteen percent.

In addition to a foreign-service premium there may also be a hardship premium. This

premium ranges by how difficult it is to adapt to the culture or difference in quality of

living. Depending on where in Asia the assignment is they may not need a hardship

premium.

Another benefit that is one of the more expensive ones is relocation. Relocation

expenses are generally fully covered. Relocation includes all the initial costs of moving to

the host country. Such as flights, visas, and resident permits. There will also be a

automobile allowance. Depending on the safety of the country this may include money

for a driver and a security escort.

 Another thing to consider is cost of living adjustment. This benefit would

probably not be needed. As the cost of living in Asia is generally cheaper than it is in the

United States.

Another important benefit is a housing allowance. This allowance is very

subjective to the infrastructure and location of the area. If the area of Asia this person is

going to has poor infrastructure the company may be paying for renovations to the house

so that the quality of life is as close as it is to the expatriates quality of life in the United

States. This ensures that the expatriate is less likely to want to come back home and is

more focused on the job. Depending on the area the housing allowance may also include

security costs if the area is known to be unsafe.

Also another benefit would be home travel. This would pay for trips home once

or twice per year if his immediate family is living with the expatriate in the host country.

If the expatriates family living in the home country, home travel would include more

trips home per year.

If the expatriate has children one of the most expensive benefits is paying for their

childrens education. Especially since most countries only have private schools.

A very important benefit I believe are tax benefits. It is important for the

expatriate to continue to earn money for FICA. Another important benefit to consider

giving an expatriate is tax assistance. So they do not have to spend time worrying about

the taxes of the host country and their home country.

Spousal Assistance is also something to consider if the expatriates spouse is

moving with them. Their happiness is just as important as the employees because they
can also cause the expatriate to not complete the assignment. This covers helping the

spouse find a job and getting the family settled in the country.

Steps that should be taken to ensure that the expatriate is appropriately to the

region and new assignment are sending them a week or so before work starts so they may

get everything settled before the assignment starts. Another step that should be taken is

educating the expatriate about the culture of the country to decrease the culture shock and

so they are more prepared to deal with the culture. If they are willing to go the extra mile

and take some language classes that would also be a very proactive step. Perhaps hire a

guide for the first week or so to show them around the area.

Consideration that should be made for the expatriates family depend on how long

the assignment is. If the assignment is for several years then the expatriates family should

be able to move with the expatriate to the host country. It is smart to have the family

move after the expatriate has been there for a month and has gotten things settled and

ready so it is less of a quality of life shock than they moved the expatriate. The children

of the expatriate should be able to attend a good school paid for by the company. The

company should assist the spouse in finding a job if they are interested in one.

Some important Human Resource aspects that should be taken into consideration

are the expatriates return home once the assignment is over. It is important to

communicate with the expatriate to see if they want their job once they return or are they

expecting a promotion and want to work at the same office at home they were working at

before. This can be very difficult because it is hard to see what is going to be available

years down the road. For the first couple of months I would check in with the expatriate

to see how things are doing and how they are adjusting.
 Works Cited
What to Expect in Your Expat Compensation Package." Expatriate
Pay and Benefits - What to Include in Negotiations. N.p., n.d. Web. 27
Mar. 2017.

"What's Inside an International Compensation Package?" Monster Career Advice. N.p.,

n.d. Web. 27 Mar. 2017.