Expatriate policy
EXPATRIATE POLICY
Name: Navya Aravinthan
Student id: s3680888
Date: 02.06.19
Expatriate Policy
Purpose
This expatriate policy has the overall purpose of establishing effective expatriate assignments by considering the leading practices, cover selection, pre-departure, during assignments and post assignment issues. The purpose is to send professionals abroad because it has become a competitive necessity and leads to anemic returns.
Scope
The policy applies to the Accounting professionals within the company both from Australia and outside Australia owing to the idea that the company has international partner’s thus high chances of having different expatriate assignments.
Policy Statement
The expatriate policy relies on key principles and standards of expected behavior and compliance among the workers and the employer in context. This policy will also cover different key aspects under headings which offer insights into the acceptable standards of operation and expected behavior among expatriates and accounting professionals in the company. It also ensures the company policy or actions align with the local laws in each country of operation.
The scope of the policy is also intended for the company stakeholders such as the customers and partners to demonstrate their roles in ensuring adherence to the policy or successful expatriate assignments. The policy identifies the roles and responsibilities of each of the stakeholders with the exclusion of the customers since they only receive the services from the organization. The investments on expatriates will allow companies to earn anemic returns that will cater interests of the stakeholders. They have stake in expatriate management process and are also influenced by expatriates. Expatriate performance has significant impact on stakeholders that can be detrimental if not managed appropriately. The temporal perspective stresses on determining the success of expatriate and how it can contribute to organizational success. In the process of accompanying partner they may experience career interruption and acquire valuable international experience. They also provide competitive advantage to the organization by establishing pool of cosmopolitan executives who are competent in responding to the international opportunities and challenges.
Leading Practices
Respect for Diversity-
The companies adopt policies for managing expats in the right manner that will
The key principle that guides this policy involves the respect for diversity owing to the idea that the company operates in different regions and have expatriates from different areas.
The company ensures respect for individual diversity and alignment with the key local laws such as discrimination policies.
The company provides special consideration to the minority groups and women owing to the high level of discrimination they experience in the society.
The company ensures the provision of equal opportunities for all will provide a chance to ensure successful expatriate activities and positive organizational image.
The representation of women and minorities must be high in the expatriate’s team within the organization (Hutchings, Lirio & Metcalfe, 2012).
This policy helps reduce the misconceptions and stereotypes against women and minorities in regards to their ability and willingness to undertake international assignments.
The company will also ensure women expatriates have jobs with high position power (Rehg and Grigorian, 2012).
Creation of a Support Team
This policy recommends the creation of a support team for the expatriates in order to ensure proper understanding of the expected assignment and career aspirations.
The support team will also constantly engage the employees through ensuring regular communication and activities which promotes personal and professional development.
The support team will also have the role of ensuring the expatriates understand their meaningful role in the organization during their assignments locally or abroad (Washington, 2011).
The support team is also based on ensuring the expatriates role responsibilities aligns with their career aspirations and experience as well as acumen.
The company leadership will have the key role of establishing support team for the employees as the basis for supporting their success in expatriate operations.
This aspect is considered critical by researchers such as Salomaa (2015), owing to the idea that it enhances the level of commitment to the organizational roles and responsibilities as well as motivating performance.
Cross-Cultural Training
The company will be involved in ensuring the employees receive the appropriate training in order to enhance their skills level to succeed in expatriate assignments.
The company will ensure the consideration for women and minorities as a priority to ensure they adjust well cross culturally (Tahir, Campus, Ertek and Campus, 2018).
This practice is critical in ensuring successful expatriate assignment since it promotes the level of integration or interaction between the employees and the communities locally and abroad (Ko and Yang, 2011).
Career development
The expatriate policy will also enhance the individual career development as the basis for ensuring the expatriate’s motivation in performing the international assignments.
Mentoring and coaching are part of the expatriate policy because it benefits them and is also linked with the organizational success. Training will familiarize them with the methods of leading in the competitive environment and international markets. International education cannot be provided to the executives in classrooms.
To offer better learning opportunities the organization stresses on appointing trusted manager for parent organization to the foreign operations that ensure greater control.
The organization will ensure support for expatriates by providing career development opportunities after international assignments as well as providing support for the expatriates (Jayasekara and Takahashi, 2013).
Expatriates dissatisfaction and lack of motivation is due to limited growth opportunities provided by the firm. When employees feel that the firm is not offering adequate opportunities of career growth they exhibit low motivation. This include absence of long-term plans for promotions, no appreciation or raises. The orgaznaition will thus focus on offering adequate growth prospects.
This practice supports the principle of the employer’s concern on their employee’s needs and preferences.
The organization will establish appropriate opportunities for career development among expatriates in order to shape their performance and achievement of the desired goals/objectives (Varma & Russell, 2016).
This is another significant cause of low productivity that is the result of poor leadership skills. Manager’s inability of supervising the employees and identifying issues faced by them reflects poor management. When employees feel that their feedbacks are of no importance for the managers of organization they develop feelings of dissatisfaction. The organization will engage expatriates in organizational decisions by taking feedbacks. This will increase their motivation and productivity.
Proper Compensation
The Company will adhere to appropriate compensation package which aligns with the international standards for expatriates in order to motivate performance and enhance their effectiveness.
The primary solutions that can be used for improving motivation level and satisfaction is by paying expatriates what they deserve. The firm must pay a competitive salary to the employees that help them to feel valued and builds eager for doing tasks. When they are paid according to their expectations their capability of doing work improves.
The possible solution for enhancing expatriates motivation is to eliminate conditions of stress from the workplace. By dividing work in a fair manner the organization and the manager would be able to remove conditions that create anxiety. This also suggests preventing employees from overwork or excessive burden that undermines their efficiency CITATION Akb12 \l 1033 (Ali, 2012).
By acknowledging work the organization could improve expatriates morale. This will involve reward strategy and appreciating the work of expatriates. Adding value for the expatriates who perform better will enhance their productivity and efficiency. By giving rewards the firm will promote the ideology that better performers are more valued and appreciated. This will encourage other employees to do good for attaining same rewards and appreciation.
The company will ensure proper planning to reduce the possibility of conflict with the local pay packages.
The company will also provide monetary incentives and appropriate disposable income (Lambert D'raven and Pasha-zaidi, 2016).
Selection Process
Selection will be a critical part for the organization and will align with the following key principles and standards.
The company leadership will ensure selection process that address key aspects which affect international business or expatriate assignments in the areas of operation for the organization. This policy will ensure the selection process;
Focus on cultural sensitivity to ensure equal representation and inclusivity in the organization (Lansing & Boonman, 2011).
Consider prior international experience among the candidates
Explore the educational backgrounds and skills or abilities suitability for the position such as language fluency and cross-cultural training.
Screen the candidate’s families and their spouses to understand their cultural sensitivity.
Pre-Departure
The pre-departure process will involve several key aspects which helps in ensuring the expatriates are well prepared for their assignments. The company leadership will ensure proper preparation of the expatriates prior to the actual assignments through different aspects such as;
Briefing on the expatriate assignment by the supervisors and support team
Training such as language fluency or cross-cultural sensitivity
Support services to the expatriates such as psychological support and mentorship services
Tests or screening on individual adaptability, resourcefulness, problem solving and critical thinking skills.
During Assignment
According to this policy, the company will have different roles during the assignment to ensure success for the expatrriates. The support during the assignment helps in maximizing the changes of the employee’s success in international assignments. The company will provide the following services to the expatriates to enhance their effectiveness during the assignment.
Support and mentorship of the expatriates to help the expatriates manage the challenges of their roles (Lee, Yueh-shian, 2011).
Resource allocation and timely provision to help them succeed in the assignments
Supporting the expatriate’s families primarily during relocation to enhance the effectiveness in their assignments (Baker and Ciuk, 2015).
Providing performance management system training.
Providing social support to promote adjustment issues which often cause assignment failures.
Cultural orientation training and counseling services to the expatriates and their families.
Financial, home and educational assistance in different country during the assignment.
Post Assignment Issues
The policy also covers the company perspective on issues relating to women and minorities in order to achieve equal opportunities as well as promote an inclusive organizational culture. As such, the policy will help in establishing accountable and transparent framework which can help in managing the global workforce as well as ensuring the company compliance with the existing laws in its areas of operations (Sharma, Bhatt and Singh, 2014).
The policy also provides the basis for effectively managing the expatriate operations and ensuring mutual benefits between the company and its joint venture investments in the United Kingdom, Turkey and China. Additionally, the policy has a purpose of ensuring the expatriate assignments align with the company’s strategy of providing quality services at competitive prices as well as returns on investments. The policy will also address key post assignment issues which includes;
Adjustment support through the expatriate support team in the organization
Emotional and social support to reduce feelings of stress, dissatisfaction and conflict (Molinsky and Hahn, 2017).
Supporting their career development to promote personal and professional satisfaction
Learning and adapting to the corporate culture as an obligation to the organization
Acknowledge the changes in their assignment abroad and locally
Promote teamwork or integration in the organization through continued communication, well defined plan and discussing future expectations (Holtbrugge and Mohr, 2011).
Responsibilities
Compliance, Monitoring and Review
This policy is critical since it aligns with the existing laws both in Australia and abroad primarily in countries where the company has investment partners. As such, the management is wholly involved in the implementation of the policy, compliance with regulations or laws as well as ensuring appropriate monitoring of the policy and review of its performance (Vance & Paik, 2015). The company leadership has the key role in ensuring the achievement of the three objectives which also helps in determining the effectiveness or success of the policy as well as possible improvements or change.
The organizational management or leadership will have the key role of ensuring the policy aligns with the existing regulations in accounting as well as the laws that define employee and employer relations within the country.
Another key responsibility of the management involves effectively communicating the policy to the stakeholders such as the employees to ensure appropriate implementation.
The management will also be involved in implementing the policy through the help of the Human resource management department since it’s concerned with organizing the expatriate’s assignments abroad.
The company secretary will also have the role of ensuring the policy aligns with key legislation and government policy such as workplace health and safety as well as equal employment policies. This aspect helps in ensuring the marginalized groups have equal opportunities of getting employed in the organization.
The organizational leader also has the responsibility of ensuring continued monitoring and review of the policy to ensure it aligns with the changing policy environment and considers emerging issues (Bashir, 2012).
Through the management support, the company manager will also ensure continued review of the policy to ensure improvement and continued effectiveness in achieving its purpose.
Reporting
Additional reporting is required in order to determine the effectiveness of the expatriate policy or its ability to meet the set objectives. According to Nipawan (2014), reporting is critical in understanding the success of a policy as well as identifying the shortcomings in order to improve and achieve the desired objectives. However, reporting must be aligned with the appropriate standards and procedures to ensure successful outcomes. The reporting will be based on both internal and external stakeholders of the organization in order to get independent review on the policy performance and promote effective decision making.
The employees will have a key role in reporting their needs primarily the expatriates as well as the effectiveness of the policy in context
The customers will also help in reporting the effectiveness of the policy based on the services they receive from the employees. Improved services and better relations translate to effectiveness of the policy while poor services and expatriate roles demonstrate its ineffectiveness (Linder, 2019).
External partners such as investors and shareholders will also help in reporting regarding the policy performance. They help in providing independent review on the policy performance or success level thus ensuring continued improvement and effectiveness (Haynes & Almond, 2015).
Government representatives such as the accounting bodies which help in ensuring the policy comply with the existing laws and standards of practice.
The human resource manager will also help in regular reporting of the policy performance in regard to the emerging issues within the organization or industry.
The Human resource manager will also help in reporting the policy performance to the external regulators in order to demonstrate the level of organizational compliance with the standards of practice and regulations.
Records Management
The organizational leadership will have the role of ensuring maintenance of records relevant to administering or implementation of this policy as recognized in the record keeping system. The records will help in providing a reference point as well as ensuring successful implementation and review as well as continued improvement of the policy.
The staff members will also keep records of their review in regards to the policy performance or effectiveness.
The management will help in ensuring the availability of both online and offline records management approaches in order to help in timely access and ensure reliability.
The accounting department will also ensure effective records in regards to the operational costs of expatriate operations before the policy implementation and after implementation.
The expatriates who are the key stakeholders in this policy can also help in record management to establish the change in their performance prior to policy implementation and after implementation (Boyle, Nicholas and Mitchell, 2016).
The external regulators or oversight organizations such as the accounting bodies and workers unions also have a role in ensuring records management to demonstrate the changes influenced by the policy implementation in the organization.
References
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Bashir, S. 2012,’ Perceived organizational support and the cross-cultural adjustment of expatriates in the UAE,’ Education, Business and Society: Contemporary Middle Eastern Issues, vol.5,no.1, pp63-82.
Boyle, B., Nicholas, S., and Mitchell, R. 2016,’ The Value of International Assignees' Knowledge of Interpersonal Networks: Knowledge of People, Networks and Politics and Knowledge Flows in Multinational Enterprises,’ Management International Review, vol.56, no.3,pp 425-454.
Haynes, R., and Almond, P. 2015,’ Expatriate Functions in the Current Multinational Context: Moving Theory Forward,’ In The Future Of Global Organizing, Vol. 10, pp. 97-123). Emerald Group Publishing Limited.
Holtbrugge, Dirk, and Mohr, Alex T. 2011,’Subsidiary interdependencies and international human resource management practices in German MNCs: A resource-based view.(RESEARCH ARTICLE),’ Management International Review, vol.51,no.1, pp93-115.
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