Expatriation Assignment

929 words 4 pages
Expatriates

What are some of the risks that an organization faces when stationing an expatriate overseas? I think the greatest risk that organizations face when stationing an expatriate overseas mostly deals with money. The organizations undergo major financial risk when sending an employee overseas. The organization spends a great deal of money compensating the employee to pack up and move to a foreign country with their family. All the money spent, and there is no guarantee that the expatriate will be able to handle the stress and anxiety associated with relocating to another country. According to an article in Expat Exchange, “fewer than 50% of employees remain with their companies following repatriation, with assignment
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Before accepting a foreign assignment, I would want to negotiate a very specific assignment contract and make sure that everything is settled in advance. Major things that need to be considered to make the repatriation process successful, is the duration of the assignment, the assigned capacity, salary, tax liability, social security, moving costs, housing and short term housing allowance, transportation, tuition fees for international schooling, annual leave and home leave, and legislation (Heuser, 2004). It is important that the contract includes a trial period length, a minimum assignment term, a specific description, and a salary that will compensate for the challenges of the move and cost of living for the place of relocation. Furthermore, it is important to understand and negotiate taxes and what country liability will be assumed. The organization must provide social security, moving reimbursement, housing allowances, transportation, and any other costs incurred because of the relocation.

How can firms help with the repatriation process?

I think there are a number of things that firms can do to help out with the repatriation process. According to an article on Expat Repat Services website, “research indicates one in four (25%) of the employees who complete their expatriate assignment successfully will leave the company following repatriation,” (E, 2006). Based on the number of expat services online, firms can help out the process by

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