South African multinationals play catch-up with other industrialised countries as they negotiate unique expatriation, repatriation and remuneration challenges.

A decade after Nelson Mandela and the dramatic political events of 1994 shook the African continent and the world, the South African economy has emerged to compete in a globalised business world.

But with those international markets open once again for South African business, companies operating internationally need a broader knowledge base for global HR specialists to assist the country's multinationals as they play catch up to other industrialised countries.

South African companies face unique expatriation, repatriation and remuneration challenges. These were all good reasons for the inaugural meeting in Johannesburg last month of 60 expatriate managers—all members of the wider national HR organisation, the South African Reward Association (SARA).

The global HR managers - representing everyone from the large diamond company DeBeers to gold mining companies, and banks and telecoms - have decided the time has arrived to band together to share information over common global management concerns.

"We have had SARA for a number of years now, but with no focus on expatriate matters," explains Barbara Parry, international HR manager for MTN International, a high tech company.

Members of this new expatriate management group expressed their need, among others, for more information on tax issues, retirement and pensions, accompanying family challenges, short-term assignment packages and generic policy templates for organising the expatriate assignment process in the first instance.

"There are so many people starting from scratch on international assignment management, that they need to build from the bottom up," says Parry.

"We also have a very weak salary base in South Africa compared to the First World countries. So to apply the normal build-up salary methodology is a challenge to arrive at a globally competitive assignment package," says Parry, citing another major international HR challenge facing South African practitioners.

The current state of HR in Africa in general was summed up recently in a report by the African Federation of Human Resource Management Associations (AFHRMA), an affiliate of the World Federation of Personnel Management Associations.

The August AFHRMA 2004 report points out that interest in HR in Africa in general is growing, and in particular there is indeed an interest in HR networking bodies and professional association.

Globalisation as an HR challenge throughout Africa has been recognised, as well as liberalisation, privatisation, and changing technology around the continent. The threat of HIV/Aids to workplace management is also heavily emphasised in the report, as well as an increase in workplace diversity.

"In South Africa, we are under governmental pressure to develop previously disadvantaged people," reports SARA's Barbara Parry. "And we certainly expect to see that growth reflected in our expatriate population."

In general, however, expatriate assignments are new to all South African employees.

Pierre Wentzel, a long-time global HR specialist and a partner in Global Remuneration Solutions (GRS), points out that unlike Europe, for instance, South Africa doesn't have a long history of expatriation.

"Europeans kind of do it in their stride, as if they are just going to another province, perhaps because expatriation has been a common theme in Europe for so long," says Wentzel. "It's a much larger challenge for South Africans to become expatriates for cultural as well as economic reasons."

But now that it's entering the game, Wentzel believes the next 10 years will be critical for HR in South Africa.

"More emphasis will be placed on retaining the individuals who do become expatriates, so as to keep newly developed 'global skills' within the South African company after repatriation," says Wentzel.

"And some companies might start becoming more creative in luring expatriates back from 'developed' countries," he says, referring to the oft-repeated and recognised 'brain drain' which has been happening over the past decade.

In the meantime, one serious challenge facing emerging global HR managers in South Africa is the lack of data. There are specific challenges in Africa which are not issues for other countries, such as unique labour laws and poor currency issues, according to Wentzel.

That's all the more reason for the formation of a new expatriate management group, says SARA's Barbara Parry.

"As more companies are investing in Africa and abroad, there is a definite need for a formal platform to provide all existing expat managers and people who are required to perform these duties a central point to meet and discuss, to bring professionals in to educate and assist, and to be able to benchmark against other South African companies," she says.

"We want to develop more specialists and to create a solid base of highly competitive expatriate managers."

Useful links

• www.sara.co.za
• www.globalrem.co.za
• www.hrcosa.co.za
• www.wfpma.com
• www.ipm.co.za

December 2004

Robin Pascoe recently spoke about expat family challenges at the inaugural meeting of expat managers of SARA in Johannesburg. She can be contacted at www.expatexpert.com