Managing Human Resources in an International Business
The Internationalization of Business How Intercountry Differences Affect HRM Improving International Assignments Through Selection Training and Maintaining International Employees International Labour Relations Safety Abroad Repatriation: Problems and Solutions
After studying this chapter, you should be able to: Explain how to improve international assignments through employee selection. Answer the question, “What sort of special training do overseas candidates need?” Discuss the major considerations in formulating a compensation plan for overseas employees. Describe the main considerations in repatriating employees from abroad.
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Identifying who has the ability to function effectively in a global organization and developing these abilities.2 Dealing with such challenges means that most employers have had to develop HR policies and procedures just for handling global assignments. From a practical point of view, one has to address issues such as:3 1. Candidate identification, assessment, and selection. In addition to the required technical and business skills, key traits to consider for global assignments include, for instance: cultural sensitivity, interpersonal skills, and flexibility. 2. Cost projections. The average cost of sending an employee and family on an overseas assignment is reportedly between three and five times the employee’s pre-departure salary; as a result, quantifying total costs for a global assignment and deciding whether to use an expatriate or a local employee are essential in the budgeting process. 3. Assignment letters. The assignee’s specific job requirements and associated pay will have to be documented and formally communicated in an assignment letter. 4. Compensation, benefits, and tax programs. There are many ways in which to compensate employees who are transferred abroad, given the vast differences in living expenses around the world. 5. Relocation assistance. The assignee will probably have to be assisted with such matters as maintenance of the person’s home and automobiles, shipment and storage of household goods, and so forth. 6. Family support.