An Expatriate (Expat) is a person who is living outside his native country. Some people choose to leave their native countries due to personal or professional reasons, some others are forced to do so. The following mainly focuses on Expats that will live outside their native country for a mid-term (1-5 years) international assignment, to take care of certain tasks in the host country. These assignments typically come along with certain emotional challenges leading to a high Expat failure rate.
What is Expat failure?
The term Expat Failure not only describes early return, but also underperformance or adjustment problems of an Expat making the assignment unsuccessful.[1]
How high is the Expat failure rate?
Rates of Expat failure vary significantly by both industry and destination. Research from INSEAD showed failure rates could be anywhere from 10% to 50% with destination playing an important role in this.[2] Expats sent to emerging economies are likely to have higher rates of failure than those sent to developed countries with failure rates jumping up to even 70%.
What are the costs of Expat failure?
Several internet sources report that direct costs of a failed assignment (with the Expat returning home within the first year) vary between 250k USD and 1M USD. The annual cost of failures to all US companies is estimated 2 Billion USD per year. In addition, a foreign company can face damaged client relations, problems with the local business and government. The employee upon Repatriation may suffer a loss of self-esteem and professional standing.[3]
Why do Expat assignments typically fail and how can Coaching contribute in mitigating the risk?
Expat assignments can be challenging, and there are several reasons why they may fail. “The Expat Lifecycle” describes the well-being of a person throughout his assignment from Preparation to Expatriation and Repatriation:
In some of those phases Coaching can contribute to mitigate the failure risk as listed in the following.
Preparation Phase:
1. Candidate Selection: As hard as this may sound, sometimes the skills and experience of the candidate just may not align well with the role or the host country's needs. If the company does not have the expertise with international assignments yet, getting an independent opinion from a human resource consultant or an experienced Expat Coach can contribute to the selection process.
2. Pre-Departure Trainings: Inadequate pre-departure trainings can leave Expats unprepared for the challenges they will face. Intercultural- and language trainings can easen up the start. I can tell from my own experience how valuable it was having a one-month intensive language course in Shanghai before moving there.
3. Legal and Visa Issues: Problems with visas and work permits can disrupt an assignment right from the beginning.
Expatriation Phase:
4. Cultural Adjustment: An Expat's failure to understand and respect local customs can lead to misunderstandings and conflicts. An Expat Coach can support in coping with those situations by redirecting the focus away from the problem towards potential solutions helping the Expat avoiding discomfort, isolation and therefore ineffectiveness in his job.
5. Communication Barriers: Language differences and communication challenges can hinder the Expat’s ability to work effectively. A proper pre-departure training (see bullet point 2) can be mission critical.
6. Family Issues: Problems with the Expat’s family in adjusting to the new environment can be a major stressor and main reason for failure. Most of the time accompanying members will make the biggest sacrifices (such as giving up their jobs) and have even a harder time then the Expat himself. An Expat Coach can also support family members in coping with the new environment. Through solution-focused Coaching intercultural encounters can be entangled, conflicts solved, etc. See also bullet point 4.
7. Inadequate Support: A lack of ongoing support from the company can leave Expat’s feeling abandoned in a foreign country. It is essential to assign a Mentor with whom a weekly call can take place. Ideally a Mentor with Expat experience himself, giving valuable recommendations.
One of the most important recommendations I received from my Mentor during my first assignment was as simple as that: “Make sure to spend your lunch break with your partner at least 2 to 3 days a week. This will help to not leave your partner alone from the morning to the evening every single day. Another positive side effect is, that you will be able to chat about certain topics while your energy level is still high. If you leave the chatting to the evening only, you might feel tired from a hard day of work and not capable to listen carefully, while your partner still feels energetic and has the need to recap the day and certain topics”.
Beside having a Mentor, assigning a Coach to the Expat whom he can use as personal sparring partner and source of inspiration to deal with daily challenges will be advantageous.
8. Mismatched Expectations: Misalignment between what the Expat expects upon return and what the company provides can lead to disappointment and frustration. Typically, a person on an international assignment will start thinking many month before the assignment ends about his future, while the company might still does not have this on the agenda. A Coach can support in managing the Expat’s anxiety and help him to refocus on his assignment making sure to stay effective.
9. Others: Health and Safety Concerns, Political or Economic Instability and Global Events (e.g. pandemics) can obviously also have an impact on the success or failure of an Expat.
Repatriation Phase:
10. Return Transition: Depending on how long the Expat was abroad, challenges in reintegrating into the home organization, -environment after the assignment can be an issue. A Coach can accompany the Expat in dealing with his emotions.
11. Career Development: Expats may feel their career development stagnates after the assignment, causing dissatisfaction. A Career Coach can support the Expat in developing his vision, goals and accompany him in boosting his self-confidence and self-esteem.
Summary
Globally, Expat failure rates are consistently high due to the mental, emotional and physical strain placed on employees who relocate abroad. Research has shown that Expat failure rates are higher among employees sent to developing countries and lower among those sent to economically flourishing countries. The monetary and non-monetary costs can be significant. It's important for organizations to consider these factors and provide adequate support and resources to help ensure the success of Expat assignments. From my point of view an Expat Coach can especially help in the above-mentioned bullet points 1. Candidate Selection, 4. Cultural Adjustment, 6. Family Issues, 7. Inadequate Support, 8. Mismatched Expectations, 10. Return Transition and 11. Career Development. Bringing an Expat Coach on board right from the beginning appears to be a meaningful investment compared to the potential costs of an Expat failure.
Sources: [1] https://www.allianzcare.com/en/employers/business-hub/hr-blogs/expat-failure.html [2] https://knowledge.insead.edu/leadership-organisations/are-you-ready-lead-overseas#:~:text=With%20stories%20like%20Antonio%20and,risk%20of%20failure%20then%20those [3] https://www.forum-expat-management.com/posts/11414-international-assignment-failure-and-tracking-methods#:~:text=International%20assignment%20failure%20rates%20will,the%20rate%20jumps%20to%2070%25
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