International companies use expatriation to fulfil their business needs, even during an economic downturn. So how do they select the best person to fulfil the need?
A recent survey by ECA International showed that companies use various methods to recruit assignees.
Many (84 per cent) have a select pool of employees already identified as potential assignees - a system which has increased in popularity as it facilitates individual career planning and succession planning in the employee's absence. Others simply advertise the position openly, although many companies do both.
By their very nature, international assignments are used to fulfil objectives that companies cannot otherwise achieve.
In a recent survey of 263 international human resource (HR) managers, important business reasons for sending an employee abroad include managing a local operation (82 per cent), training local staff (68 per cent), filling skills gaps (53 per cent) and exercising corporate or financial control (39 per cent).
Other functions served include grooming the assignee for senior positions or as training for graduate staff.
Discounting the latter reasons, the candidates most likely to be selected for the assignment are those with the necessary technical skills.
A systematic and considered approach to finding the right candidate, however, will look beyond the role and technical skills of the candidate.
In reality, companies are not always afforded the luxury of the time and space to execute a strategic plan, even if one exists.
When reacting to an acute business need - to gain competitive advantage in a rapidly expanding market, for example - it is highly likely that international HR departments will not be given much notice of the assignment.
In such cases, both the need for the assignment and the assignee himself is likely to be identified by the line manager, rather than the HR department.
When having to make swift, tactical business decisions rather than strategic ones, a considered selection process, assuming there is one, may not be implemented.
That said, even when there is time to execute a more considered approach to assignee selection, policies do not necessarily make provision for assessing the candidate's suitability for executing his duties in a new environment.
Only 22 per cent of the companies surveyed assess the candidate for anything other than technical skills.
Even fewer (3 per cent) assess the assignee's family for the likelihood of their being able to make a success of relocation. Furthermore, only 16 per cent of companies provide any kind of counselling for the assignee and 11 per cent do so for the assignee and family.
American-based firms are the exception: 40 per cent provide counselling to address assignee concerns over moving to continents with significantly different cultures.
When analysing the reasons for assignment failure, it becomes clear that lack of preparation can have significant impact.
Of the 263 companies surveyed, 41 per cent attribute assignment failure to family issues, and 31 per cent to poor selection of the candidate himself.
"Failure" in this case is deemed to be the premature ending of the assignment; operational success is more likely to be judged by the line manager.
So, above technical ability, what should companies be assessing to ensure they have the right person for the job?
Effective selection procedures facilitate the identification of appropriate international competencies such as self-motivation, leadership ability, team spirit, cultural sensitivity and adaptability.
The circumstances of the family, including willingness to relocate and the particular conditions in each country are also important.
Factors that should be considered include whether language skills may be needed, the existence of an expatriate network that families can socialise within and gain support from, education for children and the possibilities for the partner's career while away.
Counselling helps the family assess its own suitability for an assignment. Areas that may potentially cause strain on the family, and thus affect the success of the assignment, can be identified and addressed before the deal is sealed. Very often, employers have to compromise between the ideal employee and the ideal family.
Typically, most employees will experience only one or two assignments during the course of their career, so more often than not, they are new to the experience of expatriation.
Fewer and fewer companies report the use of "career expatriates". Therefore, for the good of the assignee and the success of the assignment, it is important to select the right candidate and provide him with the right support.
International assignments cost a significant amount in many ways: relocation costs, allowances, salaries and accommodation, not to mention company administrative time.
Understandably, the stress levels involved in the lifestyle change demanded of the employee can affect his work, and ultimately the success of an assignment.
If the assignment fails, the total costs may include not only the relocation costs, but lost earnings from the project and the opportunity costs while replacing the employee.
It is therefore critical to minimise the risk of assignment failure, and companies should take advantage of pre-assignment opportunities to do so.
Article by Lee Quane, general manager, ECA International Hong Kong, the world???s largest membership organisation for international HR professionals, serving over 4,000 HR professionals in 71 countries.
First published in The Straits Times on Jun 8, 2007.
