Top 7 Reasons Expat Work Assignments Fail
In the last year or two, I have been noticing that there has been a big uptick in interest from current and potential global benefit plan clients who are sending employees on long-term work assignments. Placing employees abroad for a year or more would generally qualify them as expat employees. In our globalized world, many companies seek to leverage talent across borders and expand their international presence. This is especially common with my mining company clients, NGOs, manufacturers and many more industries.
Despite the potential benefits, many of these expat assignments do not succeed. A lot of factors contribute to the failure of expat work assignments, ranging from personal challenges to organizational shortcomings.
I wanted to discuss seven reasons why these long-term assignments often fail and how companies can address these issues to improve the success rates of their international placements.
1. Insufficient Cultural Adaptation
For anyone who has travelled the globe, culture shock and adaptation are something they are aware of. One of the most significant challenges expats face is adapting to a new culture. The common and often settled cultural differences can affect various aspects of daily life and work, including communication styles, social norms, and business practices. When expats and their families struggle to adjust to the local culture, it can lead to frustration, isolation, and decreased productivity.
When I talk to clients, I often hear them talk about the benefits of cultural training and support. To mitigate this issue, companies should provide comprehensive cultural training before and during the assignment.
Note that training should cover not only business etiquette but also aspects of daily life, such as social customs, language basics, and local traditions. Additionally, offering ongoing support through cultural mentors or local liaisons can help expats navigate their new environment more effectively.
I should also note that women and LGBTQ employees can be treated far differently, often very poorly, in some countries abroad than in countries such as Canada and the USA. I recently read a great guide on safe travels for LGBTQ staff and it has some great points, such as:
2. Family Adjustment Issues
We often hear from global mobility managers that the success of an expat assignment hinges on the well-being of the expat's family—both the partner and the kids. When family members have difficulty adjusting to the new location, it can place a significant strain on the expat employee. Common challenges include finding suitable schools, securing employment for spouses, and dealing with feelings of isolation and homesickness.
International employers should offer robust relocation support that addresses the needs of the entire family. This includes assistance with finding schools, helping spouses find employment opportunities or meaningful activities, and providing resources for building a social network. Ensuring the family is well-settled can greatly enhance the expat's ability to focus on their work and succeed in their assignment.
3. A Lack of Pre-Assignment Preparation
If you send employees abroad, you are probably aware that many expat assignments fail due to insufficient preparation. This can include insufficient briefing on the job role, unclear expectations, and inadequate training for the new responsibilities. You need to prepare your expat employees for the challenges they will face, both professionally and personally.
Global HR managers should ensure that expats receive detailed pre-assignment briefings. A briefing should cover all aspects of the assignment, including job responsibilities, performance expectations, and an overview of the host country's business environment.
4. Sending the Wrong Employee Abroad
Working abroad is not for everyone, even with the perks, higher income and travel. Understandably, global organizations will want to focus solely on technical skills and experience, overlooking other essential qualities such as adaptability, cultural sensitivity, and resilience. An employee who is great in their home country might not thrive in a foreign country, especially in a different culture and work environment. The manager may want to hire someone who has had multiple expat work assignments or is already working abroad.
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5. Lack of Global Support
Note that the most well-prepared expat employees can struggle without adequate support from their home office. This includes a lack of ongoing communication, insufficient career development opportunities, and inadequate resources to address challenges that arise during the assignment. If your global assignment employee feels unsupported, it can lead to disengagement and a higher likelihood of assignment failure.
Make sure the global mobility managers provide continuous support throughout the duration of the assignment. I also suggest regular check-ins with HR and management, opportunities for career development and advancement, and access to resources for addressing any personal or professional challenges.
6. Inadequate International Healthcare Coverage
One key feature of meeting your duty of care as a global mobility manager is sourcing high-quality international health insurance coverage. If you are only sending one employee abroad and local healthcare is insufficient, unavailable, or undesirable, then buying an individual expat health plan is recommended. This is especially true for expats as they expect to be able to seek medical treatment locally, regionally and back in their home country. Note that individual plans are subject to medical underwriting, so your expat employee may get approved, declined or issued an exclusion depending on their medical history and the history of their dependents.
This is why a group expat health plan is key if your company is sending multiple employees abroad, and depending on the insurer and the number of employees, we can often source a comprehensive global benefit plan that will fully cover your international assignee employees and dependents with no medical underwriting for their international healthcare. These plans can even cover pregnancy with no waiting periods and include the following coverage:
International group insurance coverage can also include life, AD&D, and disability coverage, which can help you meet your duty of care responsibilities. Finally, group expatriate insurance plans will deliver not only vastly superior coverage and rates but also consistency of coverage and easy administration.
Contact me to learn more about your international benefit plan requirements, as my firm specializes in global benefit plans for international employers and offers individual expat insurance coverage. If you are sending employees to Africa on long-term work assignments, we also recommend you talk to our associate, Gugu Mdleleni, who has extensive experience in servicing and sourcing coverage for employees posted in Africa and around the globe.
7. Lack of Repatriation Planning
Most expat assignments are medium to long-term, so global managers need to plan for the repatriation of employees and their dependents. Make sure your organization gets started early and communicates the process to employees. Having access to adequate support during the transition is also important.
I should also mention that expat employers should talk to an expat tax expert and make their international employees aware of their services.
Some Final Thoughts
Expat work assignments can give your company an international presence and offer growth along with personal and professional growth for your expat employees. Expanding abroad is a key component for multinationals and many of the non-governmental organizations we work with.
Keep in mind that the high failure rate of these assignments highlights can really hit your bottom line, so your team needs to do proper planning. Luckily, there are lots of online resources and even some great expat employer associations, such as the Canadian Employee Relocation Council . The Expat Manual from ExpatInfoDesk.com is a great resource.
I hope the above points have illustrated that expat work assignments hinge on recognizing that these placements are not merely job transfers but significant life changes that require careful planning, support, and adaptation. Proper planning and policies can prioritize the well-being and preparedness of their expats and drive international growth.
Well done, good read David Tompkins