The Repatriation and Retention of Employees: Factors Leading to Successful Programs

Abstract

The advantages of successful international experience in business are well known and growing. Those who have succeeded in the global environment are very valuable assets to their organizations. One of the significant challenges to organizations is retaining these highly sought after individuals after they complete their overseas assignments. The research and experience of many multinationals show that a formal repatriation and retention program plays a significant role in keeping these valuable resources in the organization. A four phase repatriation and retention program, which is supplemented with the experiences of several companies, is presented. Staggering figures are cited both widely and consistently by researchers and practitioners, with regard to the loss of talented, experienced expatriates who leave the organization after returning to the home country (Black and Gregersen, 1998, Frazee, 1997, Harvey, 1982, Mandel, 1994, and Stroh, 1995).1 Currently fifteen percent of expatriates leave their organizations within one year after returning to the home country and an additional thirteen percent resign the following year. This is not going totally unnoticed. More than sixty per cent of organizations with expatriates spend in excess of $9000 per family unit on a range of assignment-related services in an attempt to assist expatriates complete an overseas assignment and remain with an organization following their return. Further, about one third of the expatriates receive repatriation counseling at a cost of more than $2500. (Global Relocation Trends 2000 Survey Report). Yet, more needs to be done to retain these valuable professionals. The repatriation and retention process is well executed by a few organizations. The merging of repatriation theory and practice has produced very positive results in selected instances. The parts of this process in which certain organizations excel and the supporting current research are highlighted in this article. Many actions and issues are involved in the repatriation and retention process. To more closely examine the most significant aspects of repatriation and retention, we have divided the overall process into phases. These include: pre-expatriation, during expatriation, prior to repatriation, and repatriation. The process and phases are indicated in Exhibit 1. Phase One: Pre-Expatriation The focus of this period (See Exhibit 1) is on creating and building internal support for the program, selecting the proper type of individuals to become expatriates, expatriate career planning, and the orientation of spouses. Developing and Maintaining a Formal Repatriation Program- A major component of the process is a formal repatriation program. The need for such a program is illustrated by the results of a recent survey that indicated five percent of employees at companies with formal repatriation programs leave within a year of returning from an overseas assignment, whereas twenty two percent left within the same time period at companies without such programs (Runzheimer, 1997). The repatriation program normally begins prior to an overseas assignment when potential expatriates are identified, career development is being planned, and goals for assignees are being communicated to them (Ng, 2000). Mentors, who are frequently members of senior management of the home organization, are normally assigned to monitor and work with potential expatriates at this time (Tung, 1988). An excellent example of a successful repatriation program is that of the Royal Dutch Shell Group. It is used to assist in managing Shell's expatriate work force which numbers almost 5000, assigned in 76 different countries and 200 locations. The program requires the five major business groups recruit and select employees for their respective parts of Shell. Each of these groups has human resource professionals (resource planners) who not only match employees and positions, but also monitor each expatriate's performance. …