Singapore Job Guide > Career Upgrading Look before you leap abroad Here are some tips to minimise failure in overseas assignments Cats Recruit in The Straits Times - June 23, 2007 ............................................................................................... HOW do you ensure the success of overseas assignments? The responsibility for performance management lies with either corporate, home or host country line management, and varies from company to company. According to ECA International's Trends In Managing Mobility Survey 2007, about a quarter of companies involve both home and host country managers, and such collaboration normally enhances chances of success, especially if there are large cultural differences between the host and home countries. Whether performance is measured by one or both of these parties, good communication is often the key to measuring performance successfully. Encouragingly, out of the 185 multinational companies and organisations surveyed which formally measure performance, the average proportion of expatriates failing to complete an assignment is low at 5 per cent, while only 6 per cent of completed assignments either fail to fulfil their objectives or are low on expected employee performance. Employers state that the most common causes of assignment failure are concerns about family issues (cited by 41 per cent of respondents) and poor expatriate selection (31 per cent). Other reasons given for assignment failure include limited career opportunities, insufficient compensation, concerns about children's education, partner's career issues, security issues, health issues, stress and fatigue, performance management issues and changes of project plans. The main reasons given for assignment failure do not vary significantly according to the nationality of the assignee, although there are some regional variations of note. A higher percentage of Asian-based companies, for example, cite limited career opportunities and insufficient compensation as reasons for assignment failure. The former may reveal that fewer Asian-based companies factor in the employee's career development path when either expatriating or repatriating an assignee. Another regional trend is that family issues are cited by a higher proportion of companies based in Australia and New Zealand. A contributory factor to this variation is that most assignments from these areas will, by definition, be intercontinental, thus increasing the sense of isolation for the assignee family. An important issue to consider is whether or not alternative types of assignments are more successful in achieving planned targets and increasing return on investment. Over 50 per cent of companies state that there were no differences, but large minorities - of 39 per cent and 32 per cent respectively - cite more successful outcomes for short-term and commuting assignments. More clearly defined objectives (especially for short-term assignments due to a more clearly defined time scale), more regular contact with the home country office and less disruption to the family are some contributory factors. It is clear from this that while alternative assignments may not be more likely to result in a successful conclusion than a traditional assignment, a company that offers employees a choice of assignment is more likely to be equipped to ensure that the assignment is a success. As mentioned, concerns about family issues and poor expatriate selection are the reasons more frequently cited for assignment failure, and both, to a degree, can be addressed at the selection and preparation stages by using the correct selection parameters and preparation procedures. Counselling, even in the form of a pre-departure briefing, for example, can help better prepare an assignee and his family for an assignment, which will increase the chances of success, yet only a quarter of companies provide counselling for the assignee and/or the partner. Furthermore, relatively few companies undertake any formal testing or assessment of the non-technical skills of an employee as part of the recruitment process. The majority of assignees, therefore, are selected based on their technical skills alone, even though an assignee's non-technical characteristics and behavioural aptitudes - such as emotional resilience, adaptability or resourcefulness - can often determine the success of an assignment. Regular communication and support from home and host country line management can help to increase the chances of assignment success, especially if both home and host country line managers are involved with performance management and general support. This helps to reduce any negative influence of cultural and work ethic differences between host management and expatriate employees. Many companies have stated that home country visits by expatriates are important to ensure that individuals stay up-to-date with organisational changes and developments. One way of achieving this is to assign an employee mentor, who can also be helpful in a work and career development context and may be able to highlight potential problems at an early stage. Companies considering using mentors need to define the role carefully, determining the appropriate seniority and level of involvement of the individual. In terms of financial incentives, ECA International's Variable Pay Survey 2005 shows that over nine out of 10 international human resource (HR) professionals believe that a well-structured bonus policy can significantly improve performance management, thus increasing return on investment for international assignments. Variable pay and bonus schemes for international assignments are difficult to design and administrate, since they demand clear demarcation of responsibilities in terms of setting targets and monitoring performance. But they do provide succinct reference for both the employer and employee in terms of performance throughout the assignment. It is clear that successful outcomes require planning, effective recruitment, briefing (including cultural awareness training), performance management procedures and ongoing communication and support. This requires communication and collaboration between key stakeholders, including line managers of the sending and receiving companies/organisations, international human resources and, of course, employees. Implementation of all of the above is by no means a guarantee for assignment success, but the more of these procedures HR takes on board when administering assignments, the better the chances of assignment success. Article by Lee Quane, general manager of ECA International Hong Kong, the world's largest membership organisation for international HR professionals, serving a global network of over 4000 HR professionals in 71 countries. Please feel free to share the URL of this article with your friends and colleagues.