Expatriate Assignment Failure

What is Expatriate Failure?

Expatriate failure describes when an international transferee on an expatriate assignment Returns home before the agreed upon end date, leaves the company for a new job at another company, or fails to meet the goals or the performance expectations defined for the assignment.

Historically, expatriate failure was used to describe the organizations perspective more so than the international transferee, but that has changed to some degree. It may also be used to describe the expat's perception of the assignment rather than the company's or, more likely, some combination of the two.

The emotional and relational impact of a failed assignment can be devasting for the expatriate employee and any family members, and the financial and organizational impact can be damaging for the firm that selected, trained and relocated them abroad.

The costs involved with a failed assignment are exceedingly high. It is hard to pin down an exact number, but figures cited in various surveys or articles run well into the hundreds of thousands of dollars. If the company must replace the expatriate who experienced failure abroad, then the costs can double and send hard costs towards $1,000,000 or more.

Expatriate failure is a concept that gained momentum after Rosalie Tung published an article that described the phenomenon in 1981 article about the expatriate selection and training of expatriates. It soon became an important area of expatriate research as companies, governments and other global organizations tried to understand and prevent early termination of assignments.

In order to prevent expatriate failure, significant resources have been devoted to preparing expatriates before they move abroad and after they arrive in their destination country. These services can included cross-cultural training, language training, settling in services and more. After problems arise, expat counseling services for individuals and families may also be engaged to help work through the challenges of cultural adjustment.

Why do Expatriate Assignments Fail?

Expatriate assignments fail for a variety of reasons. Here are some of the most promenant causes:

1. Family Members Have Difficulty Adjusting

Expats generally experience a broad group of challenges when they move to another country. This is particularly true for expatriate families due to the varying stressors placed upon each individual member in the family system.

Those who are able to work face all of the customary challenges that accompany any new position, plus the addition of any hurdles that come with the immersion in new host and work cultures.

Trailing spouses or partners who are unable to work do not have the social support system that their significant other has the potential to develop in the workplace.

Children often must leave behind friends and attend a new school in a different culture. There are international schools that specialize in education for children from other countries, but it can still be a very trying time for both students and their parents.

2. Lack of Support from the Company or Organization

The level of support that some companies offer their employees and families to adjust to the new country and culture is inadequate. Experienced leaders understand that costs can escalate quickly if there is an assignment failure. Those who lack this insight or who seek to cut costs often make the acculturation process more difficult and the assignment more likely to fail.

3. Flawed Expatriate Selection Process

One of the most important areas of expatriate research is expatriate selection. There are a large number of firms who either lack the resources to find the best candidates or do not sufficiently prioritize the process. This can result in a disaster for both the organization and the expatriate. When an expatriate assignment fails and the HR department must send the expatriate (and family) home, they wish they had gone the extra mile to ensure they selected the right candidate for the assignment.

Is Expatriate Failure an Actual Phenomenon?

There has also been push back against the concept of expatriate failure altogether. Some researchers have asserted that failure rates aren't as high as publicized and that there should be a greater focus on appropriate. Researchers in the article Expatriate Failure: Time to Abandon the Concept? argued that the phrase was essentially meaningless without appropriate understanding of individuals outcomes, their causes, and the context in which they occurred.

How is Expatriate Assignment Failure Prevented?

Providing expatriates with pre-departure training has been shown to enhance both cultural adjustment and the performance in meeting the goals defined for the assignment. Additionally, training after arrival in the destination country is important and can make a big difference in the success of an international assignment.

Other Sources:

Themes in Expatriate and Repatriate Research over Four Decades: What Do We Know and What Do We Still Need to Learn?, identified highly-cited articles within topical themes and specified time periods from 1975-2014:

Enhancing Expatriate Adjustment and Performance Through Pre-Departure Training: An Empirical Investigation on Indonesian Migrant Workers in South Korea Sartika, D., Djatnika, S., Sondari, M.C., Anjasmara, W.

Factors that Influence Expatriate Failure: An Interview Study. Hung-Wen, Lee.? International Journal of Management; Poole Vol. 24, Iss. 3, (Sep 2007): 403-413,619.

The Effectiveness of Expatriate Coping Strategies: The Moderating Role of Cultural Distance, Position Level, and Time on the International Assignment. Stahl, G. K., & Caligiuri, P. (2005). Journal of Applied Psychology, 90(4), 603–615.