Failure rates for international assignees don't always receive close scrutiny. Rather than fear the F-word, understand its roots and how to prevent it, writes Dan Glezer of Runzheimer International.

For good reason, human resource professionals spend a considerable amount of their time examining employee retention and attrition rates and the factors causing employee turnover. Despite this emphasis, however, retention/failure rates for international assignees do not always receive the same kind of close scrutiny.

What are the factors that lead to a failed international assignment? Before we can talk about the factors, we must first define a so-called "failed assignment."

Here are some examples of how international assignment managers might describe an assignment failure:

• Having to return an expatriate earlier than expected, which can be costly to the company and can create internal job issues, and administrative burdens.
• Losing an expatriate within a short time-frame after being repatriated.
• Performing poorly during the international assignment, which can translate into lost revenue, lost profit, and even employee turnover at the local level, which exacerbates the problem.
• Having to constantly go back and forth with an expatriate concerning compensation, allowances, taxes, benefits, etc.

What factors cause a failed assignment? One of the most common ones is spousal/partner satisfaction.

If the employee's spouse/partner is not happy with the assignment, the location, leaving family behind, leaving a job, the burden can weigh heavily on the expatriate. This will have an impact on the assignment position.

As a result, it is very important to select the expatriate and accompanying members carefully.

Take into consideration the viewpoints and concerns of accompanying members. Services such as assignment selection tools, cross-cultural training, and detailed pre-departure counseling can help resolve potential issues and/or bring strong issues to the surface. Then it's possible to decide if this employee is not the best candidate for an assignment.

Extended family concerns

It is difficult leaving family, friends, and your normal customs behind in the home country and going on an international assignment.

Some members of the family may not be able to overcome these issues. Therefore, it is essential that HR professionals make potential assignees understand that they must talk to their families and see if there are any roadblocks that would prevent them from successfully completing an assignment.

Some of these issues may be able to be worked out via specific service providers. However, it may come to light before the assignment begins that the concerns of the family are too great and that they will not be able to go on assignment.

The inability to adapt to a new culture

Both the employee and the accompanying family must be able to adapt to the new culture. They must be open and willing to try new things and explore new areas. If an employee and/or their family members do not think they can adapt to a new way of life, then they should not go on assignment.

Assignment selection tools can help determine adaptability. Cross-cultural services can help with any weak areas and help to overcome some fears.

The process leading to the candidate selection can create failure. Too often companies choose only one individual to go on assignment and that is it.

There is no selection process, no formal interviews, no discussions about family concerns, etc. The most technically savvy employee is not always the right choice to go on assignment while the person who has the right mix of job skills and personal characteristics will be the best choice.

Pre-selection tools and a more formal selection process (which takes into consideration issues that both the employee and accompanying members may have) are action items that can help.

Dissatisfaction with the job itself

Many times the expatriate is not satisfied with the job in the assignment location. Their expectations before going on assignment are that the job will be glamorous, highly visible, have a huge career impact, etc.

But this is not always the case. Often times, the job is similar to the one in the home country, and issues will be the same. Therefore, it is very important for management and human resources to create realistic job expectations for the expatriate.

If an employee is unhappy with their job in a foreign location, the issue is intensified due to the normal, daily stresses that expatriates can experience.

Poor job performance

Just like back at home, sometimes employees hired into a new position do not meet the expectations for the position.

In this instance, try to work with the employee and let them know areas they need to improve on and offer solutions. Also, clearly delineate job expectations and provide continuous feedback with expatriates.

Sometimes, performance issues can be related to the adjustment situation into a new country. Therefore, management and human resources needs to be very proactive with feedback.

Quality of life problems

Not all assignment locations will fall into this category, but sometimes the quality of life is not satisfactory to the expatriate and/or their accompanying members.

This can be especially true in some non-western assignment locations and hardship areas. However, it can also hold true in very westernized societies.

If every aspect of life is unbearably different from home, the employee and or their accompanying members may become very unhappy. Pre-departure counseling and cross-cultural training can help this issue.

It is also important to be up front with an employee and direct them to any possible assistance that will help them transcend these difficulties. Traveling on business or pleasure is completely different than living on a daily basis in another country.

Security

Nowadays, and especially since 11 September, security can be a big issue. Security has always been a concern for expatriates, especially in specific countries or regions of the world.

If an incident happens to an expatriate or their family, it may cause them to want to go home right away. Therefore, it is important to establish security guidelines/measures and keep abreast of current events.

Also, if you are sending expatriates to hardships areas and/or areas with security issues and/or political instability, it is important that you work with a security expert and brief your expatriates and their families before departure. Also, make security a part of the selection process.

Remuneration

A common myth in the international assignment world is that expatriates go on assignment to get rich.

Although this may have been the case many years ago, in today's economy, expatriates go on assignment for the opportunity, to enhance their career, offer skills to locals, receive training from locals, run a new business unit/acquisition, start up an office, etc.

Many companies continue to reduce expatriate costs. Most companies operate under the philosophy that expatriate compensation packages should protect employees from financial loss and the organization from overly generous payments.

It is very important to stress this point before the assignment begins and during the selection process.

Companies should base the value of an expatriate using salary, bonuses, premiums, etc - but not using cost of living allowances as the incentive. If the expatriate does not have realistic compensation expectations, you will constantly have to negotiate, and chances are they will not be happy on the assignment.

No established policy and assignment guidelines

Human resources, management, and the expatriate must understand their benefits/allowances and processes while on assignment. Without a formal policy, assignment letter, and administrative process, the chance of failure is much greater.

When you weigh in the overall cost of an assignment, the costs to implement the above is easily supported.

From a human resources perspective, the best thing you can do is provide service, equity, and stability for the expatriate and their accompanying members.

There are various service providers available with expertise in cost-of living, relocation, cross-cultural, destination/settling-in, spousal support, etc.

Select providers that will provide you with the highest quality service, which will help you provide this same level of high service to your expatriates.

In addition, take seriously the selection process for an expatriate. Often, the failure begins at the selection process.

Cultural adaptability, ability to adjust to a new location, willingness to learn new customs and make new friends are critical elements for a successful expatriate experience. Therefore, it is important to take these characteristics into consideration during the assignment selection process.

Dan Glezer is a Client Services Consultant with Runzheimer International.

December 2001