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SUMMARY
Globalization has increased the need for internationally mobile employees. The result of globalization is that companies now have offices or plants worldwide that create the following assignments: local hires, business travel assignments, short-term international assignments, and long-term international assignments. Long-term international assignments may be between 2-5 years in duration (commonly 2-3 years) and are created to fill key management roles, support new business start-ups, initiate succession planning, transfer knowledge to a new location, fill a project-based assignment, respond to an employee request, or to train an employee.
International assignments can cost more than 3 times the amount of their regular compensation due to the cost of an assignee’s relocation, housing, allowances, and the compounding effect of tax equalization. The international assignee’s package should be designed with the goal of “keeping the employee whole.” Ideally, the assignment should be cost neutral to the assignee.
It is imperative to select expatriates wisely to ensure a successful assignment and an appropriate return on the investment. A headquarters mentor can be very supportive for an international assignee. Once the assignment has been completed and the employee has been repatriated to the home country, the knowledge and skills acquired should ideally become a long-term asset to the organization. Managing the next steps and career development of a returning expatriate to ensure retention of this valuable asset is as important as the overall assignment.