RussianHR Management Factors and Expatriate Policies
August 5, 2007 0 comments
Staffing Policies
Ethnocentric: parent country nationals + when: lack of qualified host nationals
why:
- maintain corporate culture
- need to transfer core competencies
- examples: Proctor and Gamble
Polycentric approach: host managers manage host subsidiaries
- less expensive
- fewer cultural clashes
- example: Unilever, but hard moving to transnational form
Geocentric: merit system regardless of nationality: problems--national laws; cost
Quite often, the firm's strategic and cultural orientation will determine whether HCN, PCN or TCN is used. Ethnocentric firms tend to use HCNs, whereas Polycentric firms (who use local talent) are happy to deal with the cultural differences involved. Geocentric firms may use a mixture of HCNs, PCNs, etc., depending on individual merit.
The Role of HR Management
Selection issues + who + career progression
Preparation +familiarization and orientation + training + inclusion of family members
Adaptation + help with local regulations + mentoring
Repatriation + information on return position + making use of expats. experience
EXPATRIATE POLICY COMPARISON
| POLICY ISSUE | TEXAS INSTRUMENTS-1 | MOTOROLA (2) | COLGATE-PALMOLIVE |
|---|---|---|---|
| DEFINITION OF | Spouse, unmarried | Spouse and | not available |
| DEPENDENTS | children under 21 or working full time on an undergraduate degree. | unmarried children through age 22 leaving with employer at home | |
| SELECTION | Manager’s request Typically to fill a critical need A few are for development goals | Unavailable | Purpose: develop upper level managers who have international expertise |
| COMPENSATION | Compensation based | Home country | Headquarters |
| BASE LOCATION | on home country approach - base pay calculated at their home country rate (plus associated assignment allowances). | approach | approach - all U.S. expats paid based on N.Y Headquarters salaries with allowances calculated based on N.Y. as the home location |
| HOUSING | Expat is paid a housing/utilities differential work country rate less home country amount of current rent or mortgage/utilities time of assignment | Hypothetical housing deduction based on salary level and family status All housing + utilities paid in work country | Housing differential paid using NY housing norm |
| RELOCATION | One month base pay | Flat amounts | Lump sum equal |
| ALLOWANCE | when departing and repatriating | paid for departure and return $2600-single $3500-married | to 10% of base salary - up to $10,000 |
| TEMPORARY | 2 weeks in home | Eligibility | Eligibility |
| LIVING | location prior to departure 2 weeks in work location upon arrival; expenses paid | begins 1 year after start of assignment. May request lump sum payment. | after 7 months on assignment and in 12 months intervals thereafter. |
| HOME LEAVE | Accrues at 12 month intervals, beginning with the first anniversary from assignment start date. Can establish destinations and use for multiple trips. Expat budget to go to alternate destinations and use for multiple trips. Expat can take home leave 12 months prior to actual accrual and for 12 months following the accrual | Eligibility begins 1 year after start of assignment. May request lump sum payments | Eligibility after 7 months on assignment and in 12 months intervals thereafter. |
| DUAL CAREER/ | Compensate for the | Unavailable | Career search |
| SPOUSAL INCOME | lost goods/services that the spouses income contributes to the families goods and services spending. Offset home country housing and utilities costs by spouses percentage of contribution to the total family income. | reimbursement of $7,500 or tuition reimbursement overseas |
- Texas Instruments Policy #02-06-04 “International Cross-Regional Assignments” (1996)
- Motorola International Personal Policy Manual (1992)
- Colgate-Palmolive Case.
SURVEY/RESEARCH ON EXPATRIATE PROGRAMS
1997 Worldwide Survey of International Assignment Policies and Practices by:
Organization Resources Counselors, Inc.
(ORC) Global Relocation Trends 1995 Survey Report
Sponsored by:
Windham International and the National Foreign Trade Council (NFTC)
1996 Survey of Expatriate Tax and Compensation Policies by: Price Waterhouse LLP
“Best Practices” 1996-1997 International Assignee Research Study by: Berlitz International Inc., and PHH Relocation in cooperation with SHRM’s Institute for International Human Resources
Books:
The Management of Expatriates
Chris Brewster
Global Assignments: Successfully Expatriating and Repatriating International Managers
- Stewart Black, Hal B. Gregersen, and Mark E. Mendenhall
Developing the Global Organization: Strategies for Human Resource Professionals Moran, Harris, and Stripp
Posted by lisa
Categories:
International Management
Working Abroad
Int HR Management
Legal Agreements
