International HR management is changing and it is not in favor of sending more expatriates. This new trend seems to go faster than International HR management (IHRM) experts predicted. In 2010 most global companies thought that there were not enough local talents in regions like the BRIC countries and were thinking of sending more expatriates: See previous post here “Developing Global Executives: Failure Is Not An Option” . However in 2011, many global companies are now comfortable to hire local executives instead of sending expensive expatriates. This is the case in India for example where Global firms prefer local executives to expats to run Indian operations.
Traditionally American and European companies used to send domestic expatriates to foreign offices to share knowledge and expertise. However the cost related to sending international assignees is usually three to four times the employee’s base salary. Repatriation is often a failure with a majority of employees staying less than one to two years with the parent company after returning from abroad.
” High Tech companies are opening offices and labs around the world, putting local managers and executives in charge. As a result, companies often train regional executives in the US and send them back to work in their home regions.” Source: Recruiters World Articles–International HR Management Part I: Not Just an Expatriate Game Anymore
I think that the way expatriates are managed will evolve toward less costly benefits but more opportunities will be given to young western talented managers willing to learn other cultures and interested to become global citizens even for less money compared to “home” as most successful companies operate in a global environment.
The “new expat executive” will be a kind of hybrid combining the low-cost local manager with advanced knowledge of cross-cultural issues and global leadership with technical expertise usually brought by a traditional expatriate executive.
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DO YOU FEEL THE NEW TREND ALREADY ?
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