Expatriate Staffing: Personal Impact, Repatriation & Compensation Considerations

Expatriate Staffing: Personal Impact, Repatriation & Compensation Considerations
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  • 0:02 Expatriate Defined
  • 0:24 Personal Considerations
  • 1:12 Expatriation Training
  • 1:48 Compensation
  • 2:42 Repatriation
  • 3:13 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley
Employees that work for global companies may end up working abroad for a period of time. In this lesson, you'll learn about expatriate staffing, including its personal impact on employees, compensation considerations and repatriation.

Expatriated Defined

Tessa is a financial analyst for a large multinational corporation based in the United States. She's been a real superstar at the company and has impressed upper management. In fact, she's been tapped to be part of a team in its foreign subsidiary in Singapore. Tessa will be working as an expatriate, which is a citizen of the company's home country working for the company in a foreign country.

Personal Considerations

Tessa is both excited and nervous about this new opportunity. She is married with two young children. The family has to decide whether Tessa will go overseas by herself or if the family will go abroad with her. If the family goes abroad, her husband will have to leave his job and the kids will have to leave their friends and school.

Tessa has other issues to consider as well. She and her family will be living in a foreign location with friends and family separated by an ocean. There may also be language and cultural obstacles to overcome outside of the company. In fact, if the foreign subsidiary is staffed heavily with locals, language and culture can be an obstacle even inside the company's walls. Tessa will also have to consider the political, social and legal environment to gauge how safe the new assignment will be for her and her family.

Expatriation Training

Tessa is fortunate that her company has a good expatriate orientation program run by its human resource department. During her expatriate orientation, Tessa will learn about the language, culture, history, customs and living conditions in Singapore.

Once at her new office, she is assigned a 'buddy' who has been at the location for a while and is able to help smooth the transition. Her buddy will help educate her on local office customs and practice, introduce her to potential new friends, and help with local networking. The buddy can also help establish Tessa's credibility with the local workers.

Compensation

Tessa's compensation will be changed when she goes abroad. In fact, expatriate compensation can be costly and complicated for a global company. Tessa's company will spend somewhere between three to five times Tessa's salary per year to finance her overseas assignment. The company will pay her a percentage of her base salary as a bonus for going overseas. She'll also receive reimbursement for relocation and a housing allowance.

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