"HR can no longer be satisfied to be competitive within their own industry, they must have accurate survey data on all industries," says Casey Clemence of PriceWaterhouseCoopers LLP. Many consulting firms conduct such surveys annually.

The expat community is a tight-knit group who conduct their own informal surveys. If HR does not keep up-to-date, they may be embarrassed when their expats know more than they do.

Empathise with the expat experience

While it may not be practical to offer HR staff expat assignments - as many expats suggest - HR can get a taste for the expat experience by talking with expats and their families. If you go on a business trip, get out of the office.

Ask to tag along with spouses as they go through a typical day. This will demonstrate the trials and tribulations faced on a daily basis.

Communicate, communicate, communicate

"Compensation is first and foremost a communications tool. It's a way of saying 'We trust you, we need you, you are valuable to us' Companies fail to tell expats the right story," claims Valerie Scane, a writer and human resources consultant who has been an expat spouse in several European countries.

"Expats often don't have a clue about the value of their total compensation package. They compare only things they can see or are immediate."

Clemence agrees. "Expats see that another company gives three R&R trips and feel slighted that they only get two trips. You must be in a position to respond, 'Yes, but your neighbour only gets plane tickets and we reimburse hotels and meals as well'."

A veteran Australian expat of a Dutch petrochemical company claims, "information distribution must be frequent, otherwise people forget and fall back into the 'Ain't it awful' game."

Allow for individual differences

Huw Francis, a management consultant currently living in France (www.huwfrancis.com) suggests, "Tailor the expat package to individual expats and their family rather than providing a standard package. I have heard of some companies that compile a shopping list of services they will provide and the expat can choose items off the list up to a pre-set cost."

Even if you provide a standardized package, putting a value to each component enhances understanding and improves communication.

Brigitte Hild of Going Global, a German consulting company, recommends that companies "communicate that the company does its best to find a balance between the official expat policy and individual needs and that, when differences do occur, they occur because the company has the aim to provide the best possible solution for every individual expat family."

Provide a vehicle for raising concerns

Expatriates must know how to tell HR their concerns without being labelled a troublemaker. Despite all HR's efforts, there will be times when local conditions have changed and a policy needs to be modified. Expats need to believe that they can tell HR of the changed situation without fear of reprisal.

"Complaints can conceal adjustment problems," says an HR representative of BG International. "I counsel HR administrators to listen and give expats time to see if there is an underlying issue."

Adjustment problems do occur and need to be addressed. However, if expats and partners are afraid to approach HR, you may not know about a potential situation until it is too late.

Phase in reductions

Allowances are reduced, either because of changed local conditions or as part of a company-wide cost-cutting programme. When this occurs, consider phasing in changes.

One expat I spoke with had moved three weeks after the policy on club membership was revised. As a result, the newer expat manages several expats who have a company-paid membership to a club the expat cannot afford to join.

Although an extreme example, this demonstrates what can happen when policy changes are implemented without careful examination of all the circumstances.

As long as there is more than one expat in a location, there will be comparisons.

Conclusion

If HR does only one thing, they should communicate more frequently.

Tell your expats about the policies, keep them informed of changes, and ask for their help in maintaining policies that are both competitive and cost effective.

December 2001

Carrie Shearer spent 20 years in international HR, living and working in seven countries, as well as working at headquarters. Currently she runs a small international HR consulting practice and is a novelist who writes about expat living.