According to (Tye and Chen, 2005 cited in Avril & Magnini,2007), it has been found that researchers generally consider previous international experience to be of advantage because such experience teaches an individual the ability to generate strategies for adaptation in new situations, so the chances of assignment failure are minimized. The staffing policies of multinational companies can be divided into four categories namely: Ethnocentric staffing, Polycentric staffing, Geocentric staffing, Regiocentric staffing. However, the advantages and disadvantages of using expatriate employees over local subsidiaries are as follow:
Ethnocentric Staffing
The advantages of Ethnocentric Staffing Policy are:
i. Home country staff, …show more content…
The home country employees is usually less familiar with the local culture and employment conditions, and the employee and the family may find it difficult to adapt to the new local living and working conditions. iii. They are also sometimes criticized for preventing talented local employees from filling the position held by the expatriate.
Polycentric Staffing
The advantages of Polycentric Staffing Policy are:
i. It is expensive than ethnocentric staffing policy. ii. Relocation costs are usually much lower and a standard compensation package consist with local market is usually sufficient. iii. Local employees are usually more familiar with the local culture and language and may have access to networks and relationships with local stakeholders.
The disadvantages of Polycentric Staffing Policy are:
i. Talent most times is short in host country. ii. Deficiency of familiarity with the home country conditions, culture and language may become a barrier to effective communication with the headquarter staff. iii. Deficiency of familiarity with headquarters operations may make it difficult for the local staff to access needed resources and