Deploying Human Resources Globally: Strategic Approaches and Practical Considerations

1. Deploying Human Resources Globally: Strategic Approaches and Practical Considerations Sue Shortland

2. Learning outcomes To explain the different approaches used by global organisations to deploy human resources internationally. To report on the advantages and disadvantages of short-term, commuter & mobile cadre assignments. To evaluate the impact of mobility strategies on employees and their families. To examine the impact of stress and the psychological contract on international assignees and their families.

3. International human resource deployment - key issues Diminishing talent pool Traditional family changing - two incomes required - two careers usual Costs escalating Business need drives assignment pattern

4. Short-term assignments 3 - 12 months’ duration Increasing trend Inter- and intra- regional assignments Reasons for use: - service/complete project - fill a skills gap - open new operations/markets - develop international experience - provide career development

5. Advantages Suits project based business sectors Achieves flexibility Provides career development and training opportunities Eases repatriation problems Addresses some family issues

6. Disadvantages Affects productivity May increase costs Requires additional administration Creates complex tax issues Disrupts family relationships

7. Commuter assignments Increasing interest in assignment type Alternative to traditional international assignment Intra-regional assignments Reasons for use: - family reasons - cost containment

8. Advantages Addresses family mobility Provides flexibility Helps to contain costs Meets skill needs quickly

9. Disadvantages Loss of working time through commuting Affects productivity Increases stress for employee Disrupts work environment/integration Disrupts family relationships Assignment type of ‘last resort’

10. Mobile cadre assignments Increasing use Inter- or intra- regional assignments Reasons for use: - employee development - future top talent - bring/develop trans-national perspective - emphasise corporate culture

11. Advantages Provides/develops top talent for future Provides flexibility Transfers cultural knowledge Develops multi-cultural capabilities Aids team building Builds shared vision

12. Disadvantages Mobile lifestyle for individuals Disrupts families Requires regular cultural adjustments Complex remuneration structures Limited ‘pool’ - may only suit employees with ‘no ties’

13. Immigration and legal issues Timing and preparation Work permits and visas Penalties on employers International mobility constraints Employment law

14. Family issues Housing Elderly/dependent relatives Pets Income loss/reduction Children’s education Dual careers

15. Children’s education Age of children - schooling - psychological issues Stage of education Education on return home

16. Dual career couples Definition: Each partner in a dual career couple is highly qualified and pursues individual career goals

17. Dual careers - problems Work permit restrictions Lack of career/job opportunity Lost promotion opportunities Financial implications Qualification differences Language difficulties Lost pension provision

18. Dual careers - action Changing assignment patterns Changing employee selection methods Providing practical support Providing financial support

19. Changing assignment patterns Short-term assignments Commuter assignments Unaccompanied assignments

20. Changing employee selection methods Internal advertising for position Self-selection

21. Practical support CV/résumé preparation Career counselling/interview training Work permit/visa assistance Job clubs/direct employment Updating qualifications/education opportunities Language training Networking groups/voluntary work Mentoring Career break schemes

22. Financial support Partial compensation for loss of income Payments towards further education Payments towards personal endeavours

23. Repatriation Emotional and financial upheaval Reverse culture shock Career issues - employee/partner Family issues

24. Repatriation outcomes Poor performance Negative role model High turnover/wasted investment

25. Repatriation actions Selection Preparation and training Support in home and host country Mentor/sponsor Communication Suitable job/career

26. Class exercise The dual career dilemma

27. Stress and the psychological contract

28. What is stress? Stringere (Latin) - to draw tight Stress as an outside stimulus Stress as a person’s response to a disturbance (Cannon, W.B., 1930s) Stress is any force that puts a psychological or physical factor beyond its range of stability, producing strain within the individual (Maund, L., 2001)

29. Definition Stress may be defined as the state of affairs that exists when the way people attempt to manage problems taxes or exceeds their coping mechanisms. (Stoll, K., 1991)

30. Stages resulting from stress Alarm reaction Resistance Exhaustion (Seyle, H., 1946) Sympathetic and parasympathetic nervous system

31. The stress process Steady state Range of stability Adjustment process Coping mechanisms

32. Stress at work Intrinsic factors Role in organisation Relationships at work Career development Organisational structure and climate (Cooper, C) Home/work interface Coping mechanisms

33. Symptoms of stress Behavioural symptoms Physical symptoms Serious illnesses

34. Stress in everyday life Early US research - Holmes-Rahe (1967) The Life Events Inventory - The Social Readjustment Rating Scale Risk of stress-induced health breakdown - <150 points low susceptibility - 150 - 300 points 50% chance - >300 points 80% chance

35. Stress, travel and working abroad UK research - Ford The Mobility Events Inventory - based on business travellers and international assignees

36. Stress and working abroad Hostile or threatening environment Separation from spouse/partner/children Major change in job responsibilities Changing residence - finding a new home, moving and disposing of old home Spouse/partner career issues Children’s education issues Repatriation Unfamiliar culture

37. Expatriate security Actions that can be taken by the personnel department to minimise the risks to expatriates working in dangerous locations

38. Actions individual level: - insurance policy - security consultancy - security measures - briefing -‘stress’ breaks - compensation corporate level: - research business partners/environment - prepare,plan, train individuals to handle crisis situations

39. Culture shock The culture shock cycle stages: Honeymoon (tourist) Disenchantment Resolution Adjustment

40. The culture shock cycle