International Assignments
The main reason international assignments fail is not a lack of professional competence.
They fail because expats, their partners or their families do not successfully integrate into life in the host country.
The Problems
Legal requirements, time pressure, pressure to succeed and tight budgets set the framework for every assignment. At the same time, many people and departments with different tasks and objectives are involved. Added to this are great distances, cultural differences and often an unstable environment in the host country.
What does a failed assignment mean today?
Much more than an early termination. An assignment can also fail if the employee completes the agreed time in the host country — but remains significantly below their potential, achieves the objectives only partially or leaves the company after returning.
We define a failure as an assignment in which the expectations and objectives of both parties are not fulfilled: those of the company and those of the expat.
Studies show: Decline in performance and resignations after return are among the frequently underestimated consequences of failed assignments.
What are the costs of failure?
The costs of a failed assignment can be divided into three areas:
Direct costs: Salary, training and education costs, relocation, accommodation, travel and reversal. Depending on the effort and salary of the assignee, they can range between 250,000 and 1,000,000 euros per year.
Indirect costs: Loss of market share, missed business opportunities, loss of trust among customers, local employees or authorities — up to restrictions on business activity in the host country.
Loss of know-how: If an assignment fails, the risk increases that a valuable employee leaves the company — and with them knowledge, contacts and experience.
Direct cost up to US
$1,250,000 ... indirect costs
can be even more dramatic … expatriates may suffer loss of self-esteem and confidence …unmotivated to undertake future challenging tasks
When does failure begin?
Based on the concept of Kalervo Oberg, assignees go through different phases.
1
The first phase is characterized by enthusiasm, euphoria and curiosity about the new. Many things feel easy — almost like a vacation.
2
In the second phase, disillusionment sets in. Differences are perceived more clearly, satisfaction decreases and the first difficulties arise.
3
In the third phase, mood and satisfaction reach their lowest point. Stress is high, work productivity is low. Many expats experience foreignness, lack of orientation, insecurity, discomfort and social isolation.
In the second and third phase, the success or failure of an assignment is decided.
4
If negative developments such as termination, departure of the family, distancing from the company or private crises have not occurred, stabilization begins. Satisfaction, acceptance and mood increase again.
5
In the fifth phase, the “feeling-at-home” emerges. Orientation and understanding have grown, the mood is stable. Work productivity and satisfaction reach their highest level in this phase.
What is the problem?
To this day, most measures focus on the preparation and the beginning of an assignment: training, visas, taxes, relocation, housing and, where applicable, school search. This means: They often end exactly when the actual problems first arise.
What is the solution?
An assignment must be accompanied in such a way that expats and their families experience orientation, appreciation, security and support in the host country from the very beginning. This is exactly where we come in.
