The changing life of the Expat.

The profile and existence of the business expatriate (expat) has not necessarily gone away, they have just changed, some may say, adapted. For those who have not adapted, maybe they have slipped silently back home. 

It has to be noted that expats have been travelling and working for many, many years back, especially within military and diplomatic, however in this respect we are just reflecting on the ‘business / company expat’, of the last fifty or so years. Also, not every facet of an expat has been covered, just the broader evolution.

If we go back to the early days, circa 1970s to 1980s.

When Company’s really started accelerating sending employees around the world, it was usually down to air dropping someone, usually a leader of a business function and area of expertise, in a country who are growing their services, market, production, commerce. Such Companies were either long established traditional organisations, through to pioneering, opportunistic entrepreneurs. However, one common theme and strategy across all was, ‘high risk, high investment would generate high returns.’

The expat did not always have the skills such as cultural awareness, adaptability, social relationship building, local environment knowledge, understanding government operations and politics. Though, they went because they did have the Company knowledge. Expats were not relocating permanently, rather as secondment or on project specific time frames.

Expat mobility became the accepted way to building business globally and more and more employees were flying, landing, working, living and returning. All this at a cost – salary, housing, vehicle, medical insurance, visas, schooling, annual flights home, and for many (though less and less of today) there were additional benefits like cost of living / away from home, club memberships, fuel, utilities, furniture, shipping, language courses. There were even some packages providing, domestic home help, gardeners, drivers and pet housing during annual leave.

When times were being driven by a strong and buoyant economy, uncertainly was not discussed and opportunities seemed endless. The expat and their associated cost appeared to be an investment well made, in the eyes of the Company, for many – and in many ways it was. 

Now, since the late 1980s.

There are many impacts which have changed the profile of the expat, such as technology, globalisation, flashpoint political events, thinner profits, higher investor expectations, cost management, competition from emerging and developing economies, upskill and investment within local employees (nationalisations) and simply corporate survival. Now with such influences surrounding the ‘survival’ of the expat, there needs to be a significant business performance and financial return to qualify the investment. More importantly the returns need to be realised short term, no more long-term promises.

Into the 2020s.

There will still need to be a balance of expats for globally operating organisations, technology will not remove the physical and human thinking completely (yet). Multi nationals and even regional and national Companies, will need to be very strategic on where they want to grow their business and evaluate if some markets are becoming too hard and not cost effective enough to have their flag flying. For many organisations they struggle as they can’t arrive at a clear decision of – ‘when they will need to pack up in a country or region.’

Today’s expat is still here.

They have very different profiles and responsibilities; they can be from a new Company starter who has extensive knowledge which needs rapid application in a region at any demographic. The roles of an expat are no longer on seniority though has to be on 100% target need – now, this hour.

They need strong cultural sensitivity, high agility, a relationship builder, can navigate effectively through local political events and challenges within the country and region they are working in. For many today as the ‘new generational expat’ the opportunity to operate as an expat is more about the career opportunities available within the current organisation. The salary and associated benefits need to be reasonable or enough to live at medium level, not luxury and in many cases not to accommodate and support the whole family.

The expat will not shrink in numbers in the immediate future.

In fact, may rise, though the profile, requirements and in particular the lifestyle needs of the expat will change – and will continue to.

For the long-term expats of multiple countries over the decades, there has been some considerable impacts. However, those who have adjusted and have continued the journey may be receiving less materially, though more enrichment of life as their reward.

About Mark:

Mark has 20+ years’ experience as a Human Resources & Business leader and since 2008 has been based in the Middle East. His career success has been through an entrepreneurial and curious approach to new challenges and ventures, keeping a firm focus on strategic direction, regardless of the changing and ambiguous environment – a true developer of people. Operating across the Middle East, Asia, Europe, UK, North America regions at Director, SVP and Group level HR positions within FTSE and Top 100 MNCs and leading regional brands.

Mark actively participates as a keynote speaker, panelist and contributor to global think-tanks on topics such as, business transformation, change management, culture engagement, talent capability, leadership, organisational design, learning frameworks and employee motivation.