What are the main factors that influence expatriate retention and turnover?

Love may be the universal language that requires no translation, but in the realm of daily life, language proficiency goes beyond a practical skill; it stands as the linchpin for the triumph of expatriate assignments. Although one can get by in many countries by speaking English, the challenge arises when understanding spoken words and reading become essential, underscoring the significance of linguistic prowess in navigating the complexities of cross-cultural communication.

Managing expatriate retention requires not just company support, but also personal guidance. In my coaching experience, I helped a senior executive who was struggling to adapt to a new country, facing cultural and career challenges. By working together, we reframed his perspective, focusing on aligning his personal goals with the opportunities the assignment offered. This not only improved his performance but also strengthened his long-term career trajectory. Helping professionals in similar situations has allowed me to build my own brand as a trusted expert in international career development, showcasing my ability to support leaders through complex transitions.

The power of building a strong expert brand comes from understanding your unique value and communicating it effectively. Recently, I coached a professional looking to expand their influence in a competitive industry. By sharpening their content strategy based on audience insights, we crafted a clear and authoritative narrative around their expertise. This not only increased their credibility but also led to new consulting offers and speaking engagements. A well-defined expert brand opens doors to opportunities you didn’t even know existed.

In my experience managing expatriate employees across various countries like Italy, Estonia, India, and Bangladesh, I have observed that adaptability and cultural intelligence are critical factors. For instance, our employees who are proactive in learning the local customs of another colleague's country adapted much quicker and reported higher job satisfaction. Additionally, setting realistic expectations through pre-departure training helped mitigate the initial culture shock and set them up for success.

Unilever excels in expatriate retention by offering tailored support, including customized compensation, thorough pre-departure training, and effective repatriation plans. Neglecting areas like feedback and communication can lead to isolation and higher turnover. Implementing mentorship and strong repatriation processes boosts expatriate satisfaction and retention.

I believe that balancing responsibilities between the company and the expatriate is key. That way the company doesn't "forget" about the expatriate and has an active role on the actual expatriate management, and the expatriate also participates in the whole experience, taking action and making choices about their specific moves and how it impacts their career as a whole.

Effective organizational support has been key to retaining our expatriates. Tailored onboarding programs that include family support, Awareness of the customs of colleagues from different countries, and continuous feedback mechanisms have significantly reduced turnover. For example, implementing a mentorship program where new expatriates are paired with experienced colleagues has provided essential guidance and a sense of community.

Intercultural Awareness and Communication training is a crucial part of retaining international talent. It teaches departments, leaders, teams, and companies how to respectfully share opinions, hold meetings, give feedback, celebrate holidays and simply work in a healthy and productive environment. We assume everyone knows what we know, we assume that the obvious is just that. However, that is not the case, we need to discuss, explain, learn and adapt to thrive together. We need to communicate about the details as well as the big issues. We need to learn about one another, how we work best, what is comfortable, and where we draw the line. Training/Workshops provide the opportunity to discuss these topics and provide tools.

Organizations must have a clear expat policy that is applied across the board. They must invest in cultural training & see the value for the international assignees.

My country, Germany, ranks high at the list of countries perceived as unfriendly by expats. Helping new hires connect to locals really helps - one idea is helping employees match with volunteering opportunities they can do even with minimal language skills, or setting up a company volunteering experience, can help them meet locals in a positive setting and provide ideas for how they can continue to meet locals in their free time.

Normally, when you accept an opportunity, you accept something better than what you currently have. If the host country has a worse scenario, being unstable, insecure or any other hardship, the whole experience can be jeopardized. And, sometimes, allowances are not enough to compensate the expatriate and their family of this new semi-hostile scenario. That's why companies must have a clear and raw view of the host country, and have also actions and benefits to assist in the transition.

Environmental stability plays a crucial role in expatriate retention. When our team in Estonia felt secure and had access to quality infrastructure and services, their overall satisfaction increased. Conversely, due to the effect of the Ukrainian war, employees in regions with political or economic instability faced more challenges, underscoring the need for additional support in such environments.

I will focus my answer in the profile of expats I know well, that are Europeans living in China. In most cases I see that expat retention and turnover can be significantly influenced by the challenges faced in simple day-to-day activities like navigating local transactions, such as ordering a coffee or purchasing a train ticket. The ability to smoothly handle these routine tasks impacts their overall satisfaction and sense of comfort in the new cultural context, which, in turn, plays a role in their decision to stay or leave. When someone needs help to handle everyday life situations, it is very difficult to build a connection with that place.

Cultural training can help expats better understand and work through any differences in social, cultural, and economic aspect of the country. Cultural training is particularly important when expats are moving to countries deemed as "high risk."

Yes, companies hiring for positions abroad must consider the move holistically and do what is possible to make the change of worlds a good one for the candidate's family. If the family is not happy, the employee loses strength. On the other hand, treating the family well and assisting the family where requested and where needed makes a huge difference. Spoken here by one who has moved 8 times internationally and 5 times with kids.

Cultural training & family support programs such as partner support & school assistance are key in relocation success. Anyone in the industry knows that if the family isn't happy, assignees don't stay on assignment. Any support that can be given to ease adjustment to the location should be offered.

Spouses/Partners are the glue that often holds the household and the relocation together. It is always helpful for couples to discuss the expectations and goals of the whole family before moving. Acknowledging the individual needs can make the experience a great one. Having a plan, and mapping out the goals and needs of all involved can contribute to a smoother relocation. The companies hiring need to also consider the needs of the Spouses/Partners.

In my experience, the family factor has proven to be key in international transfers for many individuals. Ensuring that children's education is attended to, securing suitable housing for all family members, and meeting the needs of the spouse are critical elements in facilitating a successful expatriation. I recommend providing visibility of timelines, setting clear expectations, sharing possible roadblocks and alternatives throughout the process.

One additional point: In countries where it is not easy for the dependent spouse to get a work visa, making funds available for furthering the education of the dependent spouse is a valuable plus. Colgate was one of the first companies to do this. The dependent spouse's career disruption can be compensated in this way. New opportunities for professional/personal development can make an international relocation a more positive experience for the dependent spouse, which ultimately gives the working spouse more peace of mind and energy for the job.

Relational factors, like positive interactions with colleagues and managers, are crucial for expatriate retention. Companies like Siemens and Procter & Gamble emphasize mentoring and collaboration to build trust and communication. In contrast, conflicts or misunderstandings can lead to disengagement and turnover. Cross-cultural training and open communication are key to fostering strong relationships and improving retention.

One of the core competencies for every professional is networking. For expats is no different. However it has an additional layer, or, layers, culture and language impact greatly in the maintaining of an international network. It's great for the expat to be able to create not only a good network, but to also create a community in the new country, providing them with a safety net for the rainy days during the expat journey.

Building strong professional and social networks is essential for expatriates. As our firm's branches are in different countries, and many of our employees work remotely without being bound to a specific country or region, we facilitate at least two team-building activities each year at our main head branch in Vicenza near Venice. These activities encourage participation, helping employees connect and build stronger relationships, fostering a sense of belonging. This initiative has helped expatriates form meaningful relationships with their colleagues, contributing to a sense of belonging and higher retention.

Anticipating and proactively addressing the complex web of factors influencing expatriate retention is crucial. They include personal alignment, organizational support, effective communication, role adaptability, family satisfaction, feeling isolated, security, the external socio-political landscape, and more which collectively shapes the landscape of expatriate retention and turnover. Recognizing and strategically addressing these factors in advance is essential for creating a conducive environment for long-term expatriate success and satisfaction within the company. Pieces of Advice: Channels. Programs. Mechanisms. Measures. Management. Training. Evaluation.

Make sure that good expat coaching is part of the expat package! The key is the awareness about the different environment and the expectation management. In the expat trainings I give, I like to plan one portion before departure with the individual (ideally one with partner) and one or two after arrival in the new environment. That way all questions in the adjustment are addressed and can be discussed in a safe and positive environment. If these questions are not brought up and reflected properly, they can lead to irritation and frustration, eventually to a failed expat assignment. A good expat coach will ensure that the expat understands the interactions in the new environment.

The psychological contract, or the unspoken agreement between expatriates and employers, is crucial for retention. When promises around trust and career development are honored, expatriates stay engaged. However, broken psychological contracts, such as limited career growth post-assignment, can lead to frustration and turnover.

Asking someone to uproot their life, leave behind their home and career, and step into the unknown—especially with their family—is a significant request. I understand that this decision comes with immense challenges, both personal and professional. That’s why I’ve always believed that demonstrating genuine care for the families and taking the time to deeply understand the complexities of a new work environment are critical to fostering loyalty and long-term retention. When employees know we are invested in their well-being and that of their loved ones, it strengthens our collective commitment to success.

Some companies (and assignees) don't prepare themselves for a "culture of similarity" move - US to UK, Canada to Australia, Argentina to Chile, etc. Often times these are the moves where expats need to most support. Don't short change your expats on these types of "similar" moves.

When making a decision to move to the foreign environment, do your research first, so to as to avoid disappointment. It is never black and white - there will be always pros and cons. When balancing it all, the pros should outweigh the cons, even if you may need to take a longer perspective to see the real benefits. If you think about it carefully, you may have a solid experience already - for example - if you had moved around within your country a lot, you already likely have the skills how to adapt to a new environment quickly and how t overcome challenges.

Whether the expat adjusts to the new environment. It takes about 2 years to immerse yourself in the local culture. Knowing the local language helps, but can be a big ask. There is a huge difference between basic functioning in the language of your host country, and a true mastery allowing meaningful conversation on any topic. Some cultures are also less welcoming to strangers. Any expat at one point needs to ask a question whether they want to invest in "turning local" or remain a temporary guest worker. Depending on the answer they may apply different strategies. From the organizational point of view, both approaches can be accommodated and be successful, but a lot depends on the individual in question. And they can change their mind.