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Reintegrating Exceptional Expatriate Talent How to repatriate rising leaders, capitalize on their experience in emerging markets, and build a strong global people strategy

The challenge of reintegrating expatriate talent

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Page 1: The challenge of reintegrating expatriate talent

Reintegrating Exceptional Expatriate Talent

How to repatriate rising leaders, capitalize on their experience in emerging markets, and build a strong global people strategy

Page 2: The challenge of reintegrating expatriate talent

8 Reintegrating Exceptional Expatriate Talent

Reintegrating Exceptional Expatriate Talent

How to repatriate rising leaders, capitalize on their experience in emerging markets, and build a strong global people strategy

It’s no secret that many companies have done a poor

job of reintegrating returning expatriates – failing to

put their expanded knowledge to work and achieve

a return commensurate with the investment in

assignments abroad. Despite a business environment

and critical emerging markets that demand more

executive mobility than ever, organizations and

individuals continue to under estimate the challenges

of repatriation, needlessly underusing talent and, in

many cases, watching it walk out the door. Fixing

the problem isn’t rocket science, but it does require

a comprehensive repatriation program grounded in

common sense and a mutual commitment to success.

A rising star in a UK-based multinational was tapped for

what appeared to be a plum assignment: overseeing

the company’s expansion in the emerging markets of

Southeast Asia. The company was eager to give him

international experience and to put his exceptional talent

to work in locales projected to provide more growth than

mature Western markets. So he uprooted his family and

moved from London to Singapore for a three-year tour of

duty there. Over the course of his stay, he exceeded the

company’s market share goals in the four target countries,

groomed a local successor, and established relationships

with key influencers in the region. He returned from

the assignment with intimate first-hand knowledge of

multiple emerging markets, sharply honed cross-border

and cross-cultural leadership skills, and greatly enhanced

competencies in both operations and strategy.

Re-entry, however, proved difficult. The company

assumed that as British nationals he and his family would

have no trouble repatriating, so he was offered little in the

way of personal assistance. His colleagues greeted him

lukewarmly, with little appreciation of his quantum leap in

skills and knowledge. Further, leadership changes while

he was away had left him with new superiors who had

been uninvolved in the decision to post him to Singapore.

Undervalued by them, he chafed in a new role that simply

couldn’t compare to the extensive responsibility he had

enjoyed abroad. Just eight months after his return, he left

the company for a competitor who was glad to acquire

his global experience. Thus he joined the approximately

40 percent of returning expatriate executives who leave

their companies within one year of repatriation – a

figure that has changed little over the past 30 years.

Those losses of talent are costly. Supporting expatriate

executives and helping accommodate their families

in unfamiliar surroundings can require as much as

three to four times their salary. As an investment in

talent development, that expenditure is utterly wasted

if the executive leaves almost immediately upon

returning. The company loses the future value that

a supremely talented executive, with experience in

critical international markets, could have created – in

effect restricting the return on investment to whatever

gains the executive made during the assignment. The

personal and professional cost to an executive who

has been sidelined or derailed can also be high.

While many companies have reduced the amount of

extensive lower-level staffing they do abroad, they

continue to fill many top-level posts with expatriates,

especially in emerging markets. Further, they can expect

to do so more over the next several years, as Western

domestic markets remain stagnant and emerging markets

become more critical for growth. The competition for

already scarce local senior-level talent will intensify,

leaving many companies with little choice but to send

an expatriate. That competition has driven up the price

for local talent, making the considerable investment in

an expat well worth it. Further, the longstanding reasons

for sending expatriates won’t change: problems that only

someone from home can solve, unexpected vacancies

in key positions, and the need to develop executives

who can meet the challenges of global commerce.

Given the perennial need for expatriates and the

war for talent in increasingly important emerging

markets, companies will have more reason than ever

to get repatriation right. Based on our experience

assisting leading companies in all aspects of talent

management and a series of recent interviews with

Page 3: The challenge of reintegrating expatriate talent

Heidrick & Struggles 9

repatriated executives and senior human resources

leaders, getting it right requires that the organization:

• Understand the root cause of failure

• Establish best practices in managing expatriate talent

• Engage the executive in all phases of the process

By taking this approach, your company can capitalize

on the full value a successfully repatriated leader offers,

create a win-win situation for the company and the

executive, and make sure that you do not lose ground

in the intense competition for genuinely global talent.

Where Repatriation Goes WrongWhile each executive’s experience of repatriation may

involve nuances and individual differences, in cases

where it goes badly we see the same root causes

over and over again. Sometimes found in isolation

and sometimes in combination, they include:

• Mismatch of expectations. Far away from

headquarters, in fast developing and fluid market

situations, expatriate executives often enjoy great

autonomy in decision-making and wide latitude in

pursuing the objectives of the business. Already

considered top performers before they leave, they

feel themselves growing in leadership stature during

the expatriate assignment, gain confidence in their

skills, and expect to be rewarded with a challenging

role when they return. Often those expectations are

not met. They find themselves in a role they believe

they have outgrown, or the company simply does not

have the right stretch opportunity for them. To the

returning executive, the new role feels like a demotion

– and disenchantment and dissatisfaction soon follow.

• Reverse culture shock. Executives who absorb the

experience of another country may be personally

transformed by the experience – with widened cultural

horizons and a greater appreciation for alternative

ways of approaching business challenges. As a

result, they can find themselves somewhat alienated

when they return home. They may have acquired

new skills that are not fully appreciated or cannot

be applied. They may have developed somewhat

different values and motivations, and their colleagues

may not be interested in their experiences. The shock

of re-entry can also involve practical matters, like

the abrupt change from the comfort of expatriate

life or the logistical issues of housing and schooling

– all of which the executive and the company may

have wrongly assumed will not be problematic.

• Organizational change. With ever shorter cycles

of innovation and disruption in many industries,

companies can change dramatically during an

expatriate’s time away. Seemingly overnight, new

leaders, new organizational structures, new strategies

or even a new company following an acquisition or

divestiture can arise. Expatriate executives may be

lost in the shuffle – or even feel entirely forgotten.

When they return, they find that their internal

network has been dispersed and they may feel

that the company’s abrupt change of direction has

left them with little future in the organization.

Any of these common pitfalls can turn the initial

excitement of returning home into frustration for the

individual and create disruption in your organization.

Yet with some forethought and some structure, you

can minimize the risk of their occurring and maximize

return on the investment in the executive.

Rethinking Repatriation If your repatriation program kicks into gear only when an

expatriate is about to return, then it is likely too little too

late. Many of the problems that plague repatriation take

root before the executive departs for the new assignment

and can continue to grow throughout the foreign tour.

You can avoid these missteps by creating a comprehensive

program and end-to-end process that begins before

a candidate is selected and continues well after he or

she has returned. It includes these best practices:

Page 4: The challenge of reintegrating expatriate talent

10 Reintegrating Exceptional Expatriate Talent

Before making an expatriate appointment• Identify the right people. One of the best ways

to avoid mutual disappointment in expatriate

assignments is to make sure you are sending the

right person in the first place. Through rigorous

assessment you can identify candidates who have

the potential, agility, commitment and culture

fit to navigate the move and the return.

• Manage expectations up front. From the outset,

you should have candid discussions with the executive

about opportunities after repatriation. Be realistic. Says

Helen Maye, Chief Human Resources Officer at Smith

& Nephew: “It is very important to manage career

expectations and have pre-assignment conversations.

Tell them how it is going to be when they return,

because most executives do not think about life after

their expat assignment.” Make it clear that it is unlikely

that a role will have been pre-planned for their return.

And if, on returning, the executive must temporarily

settle for what feels like a lateral rather than an

upward move, it does not mean failure, especially

since having completed the expat assignment will

allow him or her to progress much faster subsequently

and get in the succession for a senior position.

• Ensure commitment from key stakeholders in

advance. In setting up the reintegration program,

HR should secure buy-in from leaders for a re-entry

process that is much like onboarding and includes

coaching, mentoring, ongoing support, and progress

reviews. Says Elisabeth Capmarty, HR Director

Emerging Markets at Janssen, “Before sending an

executive abroad, we try to get commitment from

senior leadership. We ask them whether they would

be ready to reintegrate the executive with their

teams. If the answer is no, we seriously reconsider

sending the executive abroad, because we know that

reintegration is going to be difficult to manage.”

While the executive is away • Communicate. Maintain regular contact with

expatriate executives. Check their progress in adjusting

to the new environment. Encourage them to talk

frankly about any problems they are encountering,

and find out what additional support they or their

families might need. Update them on any changes in

personnel, structure, or strategy at home. In short,

do everything possible to make them feel valued

and in touch. Wolf Kupatt, President Latin America at

Baxter, who has experienced several assignments in

emerging markets, knows first-hand about expatriate

communication challenges. Today, as a leader sending

people abroad, he observes: “Most companies do

not pay enough attention to the executive once the

person and family are out of sight. They know little

about what is going on in the environment and the

challenges the manager faces apart from business.

Each time I go into a country where there is an

expatriate, I take time to talk to the family or at least

catch up on the latest from the home front. Now,

for example, with the massive strikes and protests

creating a very uncomfortable security situation in

Brazil, I stay very close to our ex-pat managers there.

This might seem like overdoing it, but the fact that

someone is interested is very important to them.”

• Plan ahead. Initiate discussion of the move back home

a year in advance with the executive. Begin preparing

the executive, the family and the home environment

to reduce the shock of re-entry for all involved.

Include in those discussions not only the relevant HR

personnel and outside advisors but also the leader and

the team to which the colleague will be returning.

Page 5: The challenge of reintegrating expatriate talent

Heidrick & Struggles 11

When the executive returns• Undertake career planning. Expatriate assignments

can be both personally and professionally

transformative, requiring a fresh look at the

development and career plans of returnees. Explore

with them any changes in motivation and career

objectives they may have undergone. Identify the

leadership and business skills they have acquired.

Reassess their potential and determine what support

they will need to implement their development

plan and realize that potential – and be clear about

where they stand in the succession pipeline.

• Address the issue of an appropriate role. Ideally,

you will have set realistic expectations with executives

before they depart. But, as we have noted, conditions

change, and sufficiently challenging roles may be in

short supply when an expatriate returns. Conversely,

as a result of the expatriate experience, a returning

executive may be ready for a much bigger role than

initially anticipated – a readiness that the exercise in

career planning and development should uncover. If

the organization and the executive have remained

in close contact and the executive has effectively

networked while away, they should be able to identify

or even co-create a suitable role. Further, other highly

desirable international assignments will inevitably

open up in the future, with much greater scope and

responsibility – roles that are likely to be entrusted only

to people who have proven international experience.

• Offer support. Have dedicated professional

teams ready to help the repatriate and the family

relocate, readjust, and navigate often cumbersome

administrative systems inside and outside the

company. Identify a mentor or coach to advise the

returnee, making sure to match the right people and

create a rich network on which the returnee can draw.

Be sure, also, to track the impact of the program at

every stage. Through surveys, debriefings, and ongoing

dialogue with the executives, find out what is working

and not working and continuously improve the process.

In addition, measure the return on investment in

the program by tracking retention rates, conducting

satisfaction surveys, and assessing promotion readiness.

Increasingly positive results will not only help ensure

leadership buy-in but also assure executives that they

can accept expatriate assignments with confidence.

Keeping the Expatriate EngagedExpatriate executives, too, bear a large part of the

responsibility for making repatriation work smoothly.

You should therefore encourage them to:

• Maintain personal and professional networks.

In a wired world with ubiquitous social media

as well as the humble telephone, maintaining

such networks has never been easier. Expatriate

executives can not only remain engaged with their

networks back home, but expand them during and

after expatriation. This will enable them to keep

abreast of trends, maintain industry and market

knowledge, and cultivate the all-important personal

relationships that are essential in any career.

• Communicate with internal stakeholders. In

addition to maintaining informal networks, the

executive should establish regular contact with

the boss, peers, and HR – sharing knowledge and

experience, communicating results, and pinpointing

achievements. During and after expatriation, such

communication can help build the individual’s brand

and maximize his or her value to the organization.

Says Nico Reynders, Vice-President Human Resources,

Asia-Pacific region at UCB Pharma, “I would advise

expatriates to communicate their results regularly

while they are abroad, and to spend 10 to 15 percent

of their time maintaining their internal networks.”

• Share lessons learned. The returning executive

should review with the organization what each

party could have done better to make the

assignment more successful and capture that

knowledge so others can learn from it. Repatriated

executives should also share the new perspectives

they have gained and look for ways to use that

knowledge to improve business performance.

• Proactively pursue development plans.

Having revisited career planning upon returning,

repatriated executives should genuinely own

their action plans. They should regularly review

their progress with HR and their superiors

to ensure support for their goals and, most

importantly, they should actively seek development

opportunities that will accelerate that progress.

Page 6: The challenge of reintegrating expatriate talent

12 Reintegrating Exceptional Expatriate Talent

Heidrick & Struggles is the premier provider of senior-

level Executive Search, Culture Shaping and Leadership

Consulting services. For 60 years, we have focused

on quality service and built strong leadership teams

through our relationships with clients and individuals

worldwide. Today, Heidrick & Struggles’ leadership

experts operate from principal business centers globally.

www.heidrick.com

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3070514

ConclusionIt is relatively easy to quantify the value of achieving

specific business goals during an expatriate assignment

– increasing market share, establishing new production

facilities, gaining a foothold in new markets, and the

like. The value and benefits of consistent successful

repatriation, although more difficult to calculate, are

nonetheless real and substantial. They include:

• Engaged and motivated repatriates

• Reduced turnover of highly skilled executives

• Executives who embrace expatriate assignments

• Improved international connectivity

and knowledge transfer

• An employer brand known for exceptional

professional development

Moreover, in our work assisting leading companies with

all of the elements of a comprehensive program, we

repeatedly encounter the same refrain: with growth

in emerging markets making executive mobility a

strategic necessity, successful repatriation is no longer

a nice-to-have; it is an essential. Those companies

that get it right will not only better execute that

strategy, but also develop and retain a deep bench of

genuinely global talent prepared for the next twists

and turns in the ongoing story of globalization. n