the top 7 reasons your expat strategy is failing - final

4
And what you can do to turn things around. THE TOP 7 REASONS YOUR EXPAT STRATEGY IS FAILING

Upload: sheerin-vesin

Post on 21-Aug-2015

28 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: The Top 7 Reasons Your Expat Strategy is Failing - FINAL

And what you can do to turn things around

THE TOP 7 REASONS YOUR EXPAT STRATEGY IS FAILING

61

2 | RosettaStonecomBusiness White Paper | Expat Strategy

Not speaking the local language

A recent survey of senior managers in the global mobility industry found that more than 61 percent believe that not knowing the local language is the biggest obstacle to successful expat assignments5 However only 37 percent of respondents said their company offered language training as a standard part of their relocation program6

If being able to converse in the local language is so important why are companies so reluctant to offer adequate training Cost is often a primary concern With standard one-on-one language immersion programs costing up to $6500 per employee7 itrsquos easy to see why companies are hesitant to make that kind of investment

Traditional language immersion programs can also be time consuming with some lasting as long as eight hours a day for more than two months This can be daunting for the employee as well as the family members who may be going through the training with them

But language training is key to giving employees the skills and confidence they need to succeed in their new assignment It also helps families to adjust to life in the new country and gives everyone the sense of freedom and accomplishment needed to make the new location feel like home

Some organizations are dealing with both the time and cost barriers of traditional immersion programs by investing in more flexible and affordable language-learning solutions such as those offered by Rosetta Stone The average cost of this kind of training is much more affordable typically 10 times less than in-person training

Itrsquos a global economy and with more companies expanding internationally the need to

relocate employees overseas is becoming increasingly important With the cost of relocation

averaging about $400000 per employee1 avoiding the failure of these expatriate assignments

is critical

Recent surveys have found that approximately 75 percent of all expat assignments fail2

In fact some Fortune 100 companies routinely accept a failure rate as high as 90 percent3

At a cost of $3 billion annually4 not counting the damage to corporate reputation and ruined

careers the failure of expatriate assignments demands urgent attention from any company

doing business overseas

So what are the reasons for so many of these failures

In a survey of senior managers in the global mobility industry 61 of respondents indicated that knowledge of the local language was the biggest challenge that future expats face

mdash The Global Mobility Language Survey 2011 Rosetta Stone and the Forum for Expatriate Management

1

3 | RosettaStonecomBusiness White Paper | Expat Strategy

Picking the wrong candidate

One of the most critical factors behind expatriation failure or success is picking the right person in the first place Companies should take the time to carefully evaluate the skills and personality traits of candidates to determine whether they will be able to thrive in an overseas assignment Too many organizations make the decision to relocate an employee based solely on whether the person is professionally qualified for the job without considering whether that person has the necessary traits to be successful in a foreign environment

So what determines whether an employee will be successful in an overseas assignment According to Bruce Alan Johnson author of the book Carry a Chicken in Your LapmdashOr Whatever it Takes to Globalize Your Business key traits include

bull The employeersquos ability to handle differences in culture religion gender roles race and language

bull How well the candidate can adapt to thinking in multiple time zones

bull How adaptable they are to different ways of living and thinking

bull Are they eager to learn the language of the country that will be hosting them Fluency is not essential but the ability to learn a foreign language is critical

Not giving enough time to prepare for an overseas assignment

While in the past organizations might have given employees months to prepare for an overseas assignment this critical training period has been reduced to weeks in many organizations With less time to prepare traditional classroom-based language immersion programs arenrsquot able to prepare candidates as thoroughly

And while companies may not be able to offer more preparation time to their employees they can benefit from implementing more flexible self-paced interactive language training These types of programs allow employees to move through the program faster and provide companies with a means of tracking an employeersquos progress before sending them overseas

Even with less time to prepare giving candidates a solid foundation in the local language will make a successful expat assignment more likely

Offeringsurvival-levellanguageskillsonly

Language training needs to be comprehensive enough to prepare candidates to converse in a variety of business and social settings Even if candidates are well versed in English as a second language for example knowing specific business and industry jargon will make all the difference in an expatrsquos professional success

Itrsquos also important for employees and their families to learn the nuances of a local dialect in order to network successfully and feel comfortable in casual conversationmdashsuch as during their morning commute on the train or when encountering friends or colleagues at the local coffee shop

To provide this level of comprehensive language training companies should select a language solution with industry-specific content and one that accounts for colloquial expressions and nuanced cultural meanings such as several of the e-Learning solutions offered by Rosetta Stone

Candidates arenrsquot prepared for culturaldifferences

One of the primary reasons overseas assignments fail is that candidates arenrsquot able to navigate business and social situations successfully Both inside the office and out cultural differences can be a major stumbling block to employees who havenrsquot received adequate training in cultural norms and traditions The best language programs will include cultural training that will allow employees to better understand their cultural biases compare and contrast with those of the country they are traveling to and gain familiarity with business etiquette and customs Through the Rosetta Stone partnership with Aperiantrade Global companies can provide online business culture training for assignments in over 80 countries

2 4

5

3

Familyrsquosinabilitytoadjust

Family adjustment can be a hard situation for businesses to address When an employee relocates his or her family to another country finding adequate housing enrolling in new schools and adjusting to a new language and culture all create stress on everyone involved To help ensure success organizations should offer as long of a transition period as possible to help the employee and their family prepare for the move

Language and cultural training should also be provided to the entire family to make it easier for them to integrate into their new community Help finding housing enrolling schools and connecting to local community services should all be offered in advance to make the transition as easy as possible Also connecting the family to veteran expatriates in the area will give them a supportive ear and guiding hand when they need it

Stressandresponsibilityoverload

Often the move to an overseas assignment comes with a major leap in job responsibilities If possible efforts should be made to minimize responsibilities in the beginning of an assignment to allow the expat time to adjust to their new surroundings As their comfort level increases new responsibilities can be added Although a gradual rollout of duties may be difficult it can maximize the chances of success and minimize the cost of having to replace a failed expat assignment

Someone within the organization (most likely HR) should also make frequent check-ins with expats to find out how they are doing acknowledge their successes and struggles and make sure they feel heard appreciated and connected to the company Frequent communication can alert HR early to an expat who may be unhappy and wanting to leave the overseas post while the problem can still be addressed

Improving the odds of expatriate success

Living and working overseas is not for everyone It is a major life change and there are bound to be some failures However organizations can take several simple steps to help maximize the success of their expatriate programs Carefully evaluating candidates before sending them overseas and providing them with comprehensive flexible and cost-effective language training will help form a solid foundation for making any expatriate program more successful

RosettaStonecomBusiness | (800) 811-2755copy2014 Rosetta Stone Ltd All rights reserved Rosetta Stone and related trademarks and logos used herein are the property of Rosetta Stone Ltd and used andor registered in the US and other countries BUS-ExpatStrategy-WP-1404

CONNECT WITH ROSETTA STONE

AboutRosettaStone Rosetta Stone is a global leader in technology-based learning We offer our clients scalable language and learning solutions for individuals single classrooms and entire organizations

Our solutions have been implemented in over 20000 schools and in more than 17000 private and public sector organizations and they are used by millions of learners in over 150 countries throughout the world

When an employee relocates his or her family to another country finding adequate housing enrolling in new schools and adjusting to a new language and culture all create stress on everyone involved

1 Bruce Alan Johnson ldquoInternationally Speakingrdquo httpresources RosettaStonecomCDNuspdfsBiz-Public-SecInternationally-Speakingpdf 2 Ibid3 Ibid4 Ibid5 Leah Hyslop ldquoLack of Language Skills is Biggest Obstacle for Expatsrdquo August 31 2012 httpwwwtelegraphcoukexpatexpatnews9511398Lack-of-language-skills-is-biggest-obstacle-for-expatshtml6 Ibid7 Jessica DuBois-Maahs ldquoIs Language Training Worth Itrdquo June 26 2013 httpclomediacomarticlesviewis-language-training-worth-it

6

7

Page 2: The Top 7 Reasons Your Expat Strategy is Failing - FINAL

61

2 | RosettaStonecomBusiness White Paper | Expat Strategy

Not speaking the local language

A recent survey of senior managers in the global mobility industry found that more than 61 percent believe that not knowing the local language is the biggest obstacle to successful expat assignments5 However only 37 percent of respondents said their company offered language training as a standard part of their relocation program6

If being able to converse in the local language is so important why are companies so reluctant to offer adequate training Cost is often a primary concern With standard one-on-one language immersion programs costing up to $6500 per employee7 itrsquos easy to see why companies are hesitant to make that kind of investment

Traditional language immersion programs can also be time consuming with some lasting as long as eight hours a day for more than two months This can be daunting for the employee as well as the family members who may be going through the training with them

But language training is key to giving employees the skills and confidence they need to succeed in their new assignment It also helps families to adjust to life in the new country and gives everyone the sense of freedom and accomplishment needed to make the new location feel like home

Some organizations are dealing with both the time and cost barriers of traditional immersion programs by investing in more flexible and affordable language-learning solutions such as those offered by Rosetta Stone The average cost of this kind of training is much more affordable typically 10 times less than in-person training

Itrsquos a global economy and with more companies expanding internationally the need to

relocate employees overseas is becoming increasingly important With the cost of relocation

averaging about $400000 per employee1 avoiding the failure of these expatriate assignments

is critical

Recent surveys have found that approximately 75 percent of all expat assignments fail2

In fact some Fortune 100 companies routinely accept a failure rate as high as 90 percent3

At a cost of $3 billion annually4 not counting the damage to corporate reputation and ruined

careers the failure of expatriate assignments demands urgent attention from any company

doing business overseas

So what are the reasons for so many of these failures

In a survey of senior managers in the global mobility industry 61 of respondents indicated that knowledge of the local language was the biggest challenge that future expats face

mdash The Global Mobility Language Survey 2011 Rosetta Stone and the Forum for Expatriate Management

1

3 | RosettaStonecomBusiness White Paper | Expat Strategy

Picking the wrong candidate

One of the most critical factors behind expatriation failure or success is picking the right person in the first place Companies should take the time to carefully evaluate the skills and personality traits of candidates to determine whether they will be able to thrive in an overseas assignment Too many organizations make the decision to relocate an employee based solely on whether the person is professionally qualified for the job without considering whether that person has the necessary traits to be successful in a foreign environment

So what determines whether an employee will be successful in an overseas assignment According to Bruce Alan Johnson author of the book Carry a Chicken in Your LapmdashOr Whatever it Takes to Globalize Your Business key traits include

bull The employeersquos ability to handle differences in culture religion gender roles race and language

bull How well the candidate can adapt to thinking in multiple time zones

bull How adaptable they are to different ways of living and thinking

bull Are they eager to learn the language of the country that will be hosting them Fluency is not essential but the ability to learn a foreign language is critical

Not giving enough time to prepare for an overseas assignment

While in the past organizations might have given employees months to prepare for an overseas assignment this critical training period has been reduced to weeks in many organizations With less time to prepare traditional classroom-based language immersion programs arenrsquot able to prepare candidates as thoroughly

And while companies may not be able to offer more preparation time to their employees they can benefit from implementing more flexible self-paced interactive language training These types of programs allow employees to move through the program faster and provide companies with a means of tracking an employeersquos progress before sending them overseas

Even with less time to prepare giving candidates a solid foundation in the local language will make a successful expat assignment more likely

Offeringsurvival-levellanguageskillsonly

Language training needs to be comprehensive enough to prepare candidates to converse in a variety of business and social settings Even if candidates are well versed in English as a second language for example knowing specific business and industry jargon will make all the difference in an expatrsquos professional success

Itrsquos also important for employees and their families to learn the nuances of a local dialect in order to network successfully and feel comfortable in casual conversationmdashsuch as during their morning commute on the train or when encountering friends or colleagues at the local coffee shop

To provide this level of comprehensive language training companies should select a language solution with industry-specific content and one that accounts for colloquial expressions and nuanced cultural meanings such as several of the e-Learning solutions offered by Rosetta Stone

Candidates arenrsquot prepared for culturaldifferences

One of the primary reasons overseas assignments fail is that candidates arenrsquot able to navigate business and social situations successfully Both inside the office and out cultural differences can be a major stumbling block to employees who havenrsquot received adequate training in cultural norms and traditions The best language programs will include cultural training that will allow employees to better understand their cultural biases compare and contrast with those of the country they are traveling to and gain familiarity with business etiquette and customs Through the Rosetta Stone partnership with Aperiantrade Global companies can provide online business culture training for assignments in over 80 countries

2 4

5

3

Familyrsquosinabilitytoadjust

Family adjustment can be a hard situation for businesses to address When an employee relocates his or her family to another country finding adequate housing enrolling in new schools and adjusting to a new language and culture all create stress on everyone involved To help ensure success organizations should offer as long of a transition period as possible to help the employee and their family prepare for the move

Language and cultural training should also be provided to the entire family to make it easier for them to integrate into their new community Help finding housing enrolling schools and connecting to local community services should all be offered in advance to make the transition as easy as possible Also connecting the family to veteran expatriates in the area will give them a supportive ear and guiding hand when they need it

Stressandresponsibilityoverload

Often the move to an overseas assignment comes with a major leap in job responsibilities If possible efforts should be made to minimize responsibilities in the beginning of an assignment to allow the expat time to adjust to their new surroundings As their comfort level increases new responsibilities can be added Although a gradual rollout of duties may be difficult it can maximize the chances of success and minimize the cost of having to replace a failed expat assignment

Someone within the organization (most likely HR) should also make frequent check-ins with expats to find out how they are doing acknowledge their successes and struggles and make sure they feel heard appreciated and connected to the company Frequent communication can alert HR early to an expat who may be unhappy and wanting to leave the overseas post while the problem can still be addressed

Improving the odds of expatriate success

Living and working overseas is not for everyone It is a major life change and there are bound to be some failures However organizations can take several simple steps to help maximize the success of their expatriate programs Carefully evaluating candidates before sending them overseas and providing them with comprehensive flexible and cost-effective language training will help form a solid foundation for making any expatriate program more successful

RosettaStonecomBusiness | (800) 811-2755copy2014 Rosetta Stone Ltd All rights reserved Rosetta Stone and related trademarks and logos used herein are the property of Rosetta Stone Ltd and used andor registered in the US and other countries BUS-ExpatStrategy-WP-1404

CONNECT WITH ROSETTA STONE

AboutRosettaStone Rosetta Stone is a global leader in technology-based learning We offer our clients scalable language and learning solutions for individuals single classrooms and entire organizations

Our solutions have been implemented in over 20000 schools and in more than 17000 private and public sector organizations and they are used by millions of learners in over 150 countries throughout the world

When an employee relocates his or her family to another country finding adequate housing enrolling in new schools and adjusting to a new language and culture all create stress on everyone involved

1 Bruce Alan Johnson ldquoInternationally Speakingrdquo httpresources RosettaStonecomCDNuspdfsBiz-Public-SecInternationally-Speakingpdf 2 Ibid3 Ibid4 Ibid5 Leah Hyslop ldquoLack of Language Skills is Biggest Obstacle for Expatsrdquo August 31 2012 httpwwwtelegraphcoukexpatexpatnews9511398Lack-of-language-skills-is-biggest-obstacle-for-expatshtml6 Ibid7 Jessica DuBois-Maahs ldquoIs Language Training Worth Itrdquo June 26 2013 httpclomediacomarticlesviewis-language-training-worth-it

6

7

Page 3: The Top 7 Reasons Your Expat Strategy is Failing - FINAL

3 | RosettaStonecomBusiness White Paper | Expat Strategy

Picking the wrong candidate

One of the most critical factors behind expatriation failure or success is picking the right person in the first place Companies should take the time to carefully evaluate the skills and personality traits of candidates to determine whether they will be able to thrive in an overseas assignment Too many organizations make the decision to relocate an employee based solely on whether the person is professionally qualified for the job without considering whether that person has the necessary traits to be successful in a foreign environment

So what determines whether an employee will be successful in an overseas assignment According to Bruce Alan Johnson author of the book Carry a Chicken in Your LapmdashOr Whatever it Takes to Globalize Your Business key traits include

bull The employeersquos ability to handle differences in culture religion gender roles race and language

bull How well the candidate can adapt to thinking in multiple time zones

bull How adaptable they are to different ways of living and thinking

bull Are they eager to learn the language of the country that will be hosting them Fluency is not essential but the ability to learn a foreign language is critical

Not giving enough time to prepare for an overseas assignment

While in the past organizations might have given employees months to prepare for an overseas assignment this critical training period has been reduced to weeks in many organizations With less time to prepare traditional classroom-based language immersion programs arenrsquot able to prepare candidates as thoroughly

And while companies may not be able to offer more preparation time to their employees they can benefit from implementing more flexible self-paced interactive language training These types of programs allow employees to move through the program faster and provide companies with a means of tracking an employeersquos progress before sending them overseas

Even with less time to prepare giving candidates a solid foundation in the local language will make a successful expat assignment more likely

Offeringsurvival-levellanguageskillsonly

Language training needs to be comprehensive enough to prepare candidates to converse in a variety of business and social settings Even if candidates are well versed in English as a second language for example knowing specific business and industry jargon will make all the difference in an expatrsquos professional success

Itrsquos also important for employees and their families to learn the nuances of a local dialect in order to network successfully and feel comfortable in casual conversationmdashsuch as during their morning commute on the train or when encountering friends or colleagues at the local coffee shop

To provide this level of comprehensive language training companies should select a language solution with industry-specific content and one that accounts for colloquial expressions and nuanced cultural meanings such as several of the e-Learning solutions offered by Rosetta Stone

Candidates arenrsquot prepared for culturaldifferences

One of the primary reasons overseas assignments fail is that candidates arenrsquot able to navigate business and social situations successfully Both inside the office and out cultural differences can be a major stumbling block to employees who havenrsquot received adequate training in cultural norms and traditions The best language programs will include cultural training that will allow employees to better understand their cultural biases compare and contrast with those of the country they are traveling to and gain familiarity with business etiquette and customs Through the Rosetta Stone partnership with Aperiantrade Global companies can provide online business culture training for assignments in over 80 countries

2 4

5

3

Familyrsquosinabilitytoadjust

Family adjustment can be a hard situation for businesses to address When an employee relocates his or her family to another country finding adequate housing enrolling in new schools and adjusting to a new language and culture all create stress on everyone involved To help ensure success organizations should offer as long of a transition period as possible to help the employee and their family prepare for the move

Language and cultural training should also be provided to the entire family to make it easier for them to integrate into their new community Help finding housing enrolling schools and connecting to local community services should all be offered in advance to make the transition as easy as possible Also connecting the family to veteran expatriates in the area will give them a supportive ear and guiding hand when they need it

Stressandresponsibilityoverload

Often the move to an overseas assignment comes with a major leap in job responsibilities If possible efforts should be made to minimize responsibilities in the beginning of an assignment to allow the expat time to adjust to their new surroundings As their comfort level increases new responsibilities can be added Although a gradual rollout of duties may be difficult it can maximize the chances of success and minimize the cost of having to replace a failed expat assignment

Someone within the organization (most likely HR) should also make frequent check-ins with expats to find out how they are doing acknowledge their successes and struggles and make sure they feel heard appreciated and connected to the company Frequent communication can alert HR early to an expat who may be unhappy and wanting to leave the overseas post while the problem can still be addressed

Improving the odds of expatriate success

Living and working overseas is not for everyone It is a major life change and there are bound to be some failures However organizations can take several simple steps to help maximize the success of their expatriate programs Carefully evaluating candidates before sending them overseas and providing them with comprehensive flexible and cost-effective language training will help form a solid foundation for making any expatriate program more successful

RosettaStonecomBusiness | (800) 811-2755copy2014 Rosetta Stone Ltd All rights reserved Rosetta Stone and related trademarks and logos used herein are the property of Rosetta Stone Ltd and used andor registered in the US and other countries BUS-ExpatStrategy-WP-1404

CONNECT WITH ROSETTA STONE

AboutRosettaStone Rosetta Stone is a global leader in technology-based learning We offer our clients scalable language and learning solutions for individuals single classrooms and entire organizations

Our solutions have been implemented in over 20000 schools and in more than 17000 private and public sector organizations and they are used by millions of learners in over 150 countries throughout the world

When an employee relocates his or her family to another country finding adequate housing enrolling in new schools and adjusting to a new language and culture all create stress on everyone involved

1 Bruce Alan Johnson ldquoInternationally Speakingrdquo httpresources RosettaStonecomCDNuspdfsBiz-Public-SecInternationally-Speakingpdf 2 Ibid3 Ibid4 Ibid5 Leah Hyslop ldquoLack of Language Skills is Biggest Obstacle for Expatsrdquo August 31 2012 httpwwwtelegraphcoukexpatexpatnews9511398Lack-of-language-skills-is-biggest-obstacle-for-expatshtml6 Ibid7 Jessica DuBois-Maahs ldquoIs Language Training Worth Itrdquo June 26 2013 httpclomediacomarticlesviewis-language-training-worth-it

6

7

Page 4: The Top 7 Reasons Your Expat Strategy is Failing - FINAL

Familyrsquosinabilitytoadjust

Family adjustment can be a hard situation for businesses to address When an employee relocates his or her family to another country finding adequate housing enrolling in new schools and adjusting to a new language and culture all create stress on everyone involved To help ensure success organizations should offer as long of a transition period as possible to help the employee and their family prepare for the move

Language and cultural training should also be provided to the entire family to make it easier for them to integrate into their new community Help finding housing enrolling schools and connecting to local community services should all be offered in advance to make the transition as easy as possible Also connecting the family to veteran expatriates in the area will give them a supportive ear and guiding hand when they need it

Stressandresponsibilityoverload

Often the move to an overseas assignment comes with a major leap in job responsibilities If possible efforts should be made to minimize responsibilities in the beginning of an assignment to allow the expat time to adjust to their new surroundings As their comfort level increases new responsibilities can be added Although a gradual rollout of duties may be difficult it can maximize the chances of success and minimize the cost of having to replace a failed expat assignment

Someone within the organization (most likely HR) should also make frequent check-ins with expats to find out how they are doing acknowledge their successes and struggles and make sure they feel heard appreciated and connected to the company Frequent communication can alert HR early to an expat who may be unhappy and wanting to leave the overseas post while the problem can still be addressed

Improving the odds of expatriate success

Living and working overseas is not for everyone It is a major life change and there are bound to be some failures However organizations can take several simple steps to help maximize the success of their expatriate programs Carefully evaluating candidates before sending them overseas and providing them with comprehensive flexible and cost-effective language training will help form a solid foundation for making any expatriate program more successful

RosettaStonecomBusiness | (800) 811-2755copy2014 Rosetta Stone Ltd All rights reserved Rosetta Stone and related trademarks and logos used herein are the property of Rosetta Stone Ltd and used andor registered in the US and other countries BUS-ExpatStrategy-WP-1404

CONNECT WITH ROSETTA STONE

AboutRosettaStone Rosetta Stone is a global leader in technology-based learning We offer our clients scalable language and learning solutions for individuals single classrooms and entire organizations

Our solutions have been implemented in over 20000 schools and in more than 17000 private and public sector organizations and they are used by millions of learners in over 150 countries throughout the world

When an employee relocates his or her family to another country finding adequate housing enrolling in new schools and adjusting to a new language and culture all create stress on everyone involved

1 Bruce Alan Johnson ldquoInternationally Speakingrdquo httpresources RosettaStonecomCDNuspdfsBiz-Public-SecInternationally-Speakingpdf 2 Ibid3 Ibid4 Ibid5 Leah Hyslop ldquoLack of Language Skills is Biggest Obstacle for Expatsrdquo August 31 2012 httpwwwtelegraphcoukexpatexpatnews9511398Lack-of-language-skills-is-biggest-obstacle-for-expatshtml6 Ibid7 Jessica DuBois-Maahs ldquoIs Language Training Worth Itrdquo June 26 2013 httpclomediacomarticlesviewis-language-training-worth-it

6

7