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paid while on assignment, they need to
understand that the same level of pay is not likely
to continue when they return. “It’s vital not to
overpromise,” says Festing. “Be honest and
explain that this is valuable experience, but it’s
only an assignment and there are no guarantees.”
By setting expectations in this way, companies
are more likely to select the right person for a
position. As Rooney explains, the ideal candidate
is someone who goes into the assignment for all
the right reasons. “If they’re looking for
something you can’t provide, they’re not right for
the posting.”
Companies should ensure that there is a
strong channel of communication between their
home country office and expatriate. Often, a
formal mentoring relationship can be a good way
of ensuring that managers do not feel cut off
from corporate headquarters. This relationship
should be tracked formally and included as an
element of performance evaluation for both the
mentor and the expatriate.
Finally, there should be a formal process that
prepares for the expatriate’s return. Preparations
should be made well in advance to ensure that the
transition is smooth. “You don’t want to wait until
they are back before you make plans for their next
job or their next assignment,” says Rooney.
Many executives returning from secondment
complain that their new skills and experience are
not sufficiently valued. Companies can avoid this
problem by ensuring that the executive’s new
role makes use of these new capabilities and
experience. It can be a good idea to arrange one
or more seminars or talks where the returning
expatriate can share their experiences and
lessons with others in the company. This not only
spreads knowledge, but also gives the executive
a sense of accomplishment.
The embodiment
International experience is crucial for the drinks
manufacturer Diageo, which owns a range of
globally recognized brands, including Guinness,
Smirnoff and Johnnie Walker. At any one time, it
has around 400 managers in its “expatriate
pool,” who are all gaining overseas experience in
order to develop their skills and build long-term
careers with the company.
This pool includes executives from a wide
range of positions. Some are short-term
pragmatic assignments, such as bringing specific
brewing experience to get a new operation up
and running. But most are long-term
assignments, lasting two or three years, which
tend to be occupied by managers and senior
executives who have been selected especially for
the role.
These assignments have two primary
objectives in mind. “One is that we want these
executives to get the job done,” says Gareth
Williams, Director of Human Resources at
Diageo. “But the second objective is to provide
these executives with valuable experience that
can benefit the company. These are highpotential
individuals in whom we’ve chosen to
invest because we believe in them.”
Executives on secondment at Diageo remain
closely connected with head office via a series of
formal processes. This involves ongoing
discussions about performance in the position,
personal growth, challenges and training
requirements. “Wherever they are, they are still
tracked within our global talent processes,” says
Williams. The company also thinks ahead to
ensure that the expatriate’s next steps are
carefully considered. “Even though the current
assignment might not be over for another 12–18
months, we’re already making plans for the next
one,” says Williams.
But of all the mechanisms that optimize talent
development and minimize attrition rates,
perhaps the most valuable, according to
Williams, is the initial selection process. This
requires detailed up-front conversations about
every aspect of the candidate’s personality,
including their family situation and aspirations.
Plan ahead 12–18 months;
certainly before the current
assignment is over
“You need to get an idea of how they might get
on in a more developing, as opposed to more
developed, country,” says Williams.
Finally, it is also very important to nail down
the particulars. “We have a conversation where
we say: “Here’s your base package. Here’s your
expatriate package. Here’s who you will work for
and report to. Here’s what we’ll take care of for
you and these other areas will be your
responsibility,” says Williams.
More taxing matters
Given current economic conditions, it is not
surprising that host nations are becoming more
aggressive in their pursuit of expatriate tax
revenues. This highlights the importance of
being clear with expatriates about
responsibilities for different aspects of tax
compliance. “Administrations are paying closer
attention to due dates – and they’re tougher
when deadlines are missed,” says Williams.
“We devote a good deal of effort and
discipline to make sure our very considerable
expatriate programs are meeting their tax
obligations.”
An investment in talent
Executives returning from an international
assignment are typically much more valuable
than when they left. Yet despite this, there is a
high risk of them leaving the company. By being
more proactive and, in particular, by applying
formal processes, companies can reduce the rate
of attrition and thereby improve returns on their
investments in human capital.
Effectiveness of the
organization's repatriation
process
Good
Satisfactory
Scope for improvement
Ernst & Young Issue 07 T Magazine 43
49%
20%
31%
Source: Ernst & Young’s Global
Mobility Effectiveness Survey 2011
400
The number of managers
that Diageo keeps within
its “expatriate pool”
at any given time,
as part of its skills and
careers development.