Need to know:
- Employers should be clear about why they are sending employees on assignments and what they need to achieve to keep them motivated.
- A cultural awareness programme for employees and their families is crucial, as is understanding local approaches to motivation and reward.
- Employers need to keep expat employees engaged so that they continue to feel they are part of the organisation, and are visible to senior management for career progression.
Being sent abroad used to be the equivalent of receiving a ‘golden ticket’ for many employees, who lived off their expatriate benefits and saved their salaries.
However, since the global recession and changes in legislation have made overseas placements more expensive, organisations have had to tailor their packages more carefully.
In fact, according to the Expat explorer: broadening perspectives global report, published by HSBC in July 2017, 40% of expatriates do not receive any benefits as part of their employment contract. So, how can employers sustain employee motivation?
Be clear on the deal
The most important factor for motivation and recognition is being clear on the deal from the outset.
Nicola Britovsek, director of HR at Sodexo Engage, says: “The employer needs to establish what they want to get out of the expatriate in the host country in terms of skills and knowledge. If [they] don’t, it can be very difficult for the person to know why [they] want them to move and remain motivated. If expectations are set out and if people want to progress [in] their career, it’s a very good opportunity.”
Knowing what 'good' looks like ahead of the assignment is crucial, adds Clare Hughes, director, UK international mobility effectiveness, PricewaterhouseCoopers (PwC). “[Employers] need to set the objective, whether that’s to create a local successor, turn around a particular operation, or set something up.
“[Employers] need to be clear with the employee about who their line manager is and what is expected of them, and how [they] can use [their] skills and experiences in the next role, which will help motivate them once they’re doing their new job, because they can see how the experience will benefit their career.”
A step up the ladder
An assignment abroad is increasingly seen as recognition in itself, as revealed by Allianz Care's Corporate Insights 2018, published in May 2018, which showed that 70% of organisations believe offering expat assignments increases staff loyalty to the employer. This is an important consideration for HR teams looking at ways to motivate staff.
Mark Sullivan, head of international consulting group, Fidelity Benefits Consulting, says: “Some consumer goods [organisations] expect their staff to move around the global offices as part of a three-year career plan, which helps the employer to spot future executives.”
“It will also help to motivate employees to make sure they know, right from the start, that on their return they will be expected to bring [their] experience back into the [organisation],” adds Hughes.
Focusing on a successful assignment
A motivation and recognition scheme should be focused on the appropriate allowances needed to make an employee's assignment a success, as well as the correct HR support for employees and their families when they need it.
“Making sure the expat is happy, especially if they have a family with them, is very important in terms of [an organisation's] return of investment, because it will affect the length of the assignment," says Sullivan. "If the family isn’t happy, then it won’t be successful. More assignments fail in the first six months than at any other time."
Support to help employees settle into a new role and workplace can be provided online and via apps, but they may also need an expert who can understand the emotional journey and be their point of contact.
“It could also mean putting the expat in contact with a network of people who have worked in the country, or who are currently working in the country, as well putting them in touch with communities if the whole family is moving,” says Hughes.
Competitive rewards
Rewards will differ depending on the reason the employee is being sent abroad, says Hughes. “For example, [some employers] want a bonus plan, because they want their employees to be incentivised. So, not only will they pay them very well, but they will get a bonus on their return.”
However, employers need to understand the local environment when looking at motivation and recognition, says Dean Hunter, founder of HR recruitment consultancy Hunter Adams.
“For example, [employees] may have to live in a compound, and therefore will get more holiday and flights in their package than someone who is going to a safer country," he explains. "They will be getting these additional benefits as compensation and recognition of where they are going and what they are giving up."
It is also important to be sensitive to local issues and perceptions, notes Sullivan. “There used to be a ‘sunshine allowance’ for those who moved from the West Coast of America to the UK, because the weather wasn’t as good. We don’t get these ludicrous benefits any more, but local workers may see the expatriate coming into the [organisation] on a different, more generous pay scheme and may not like it."
Cultural awareness
One of the key aspects underpinning a motivation and recognition scheme is to prepare employees and their families properly, says John Dean, chief commercial officer of Punter Southall Health and Protection.
“Everyone thinks the USA will be easy to adapt to, as it’s culturally familiar, but it has the highest failure rate," he explains. "We watch US TV and films but the reality is completely different to our perceptions, with different working practices and a different education system and many other things.”
The biggest success stories are those where employers have run cultural awareness programmes, so that employees are motivated, mentally prepared, and able to embrace changes in lifestyle. “[Organisations] will invest in advising employees about countries like Dubai, helping them to learn about the culture and language,” says Dean.
Organisations should also be aware of the cultural nuances operating in the workplace when it comes to recognising achievements and motivating staff, says Andrea Piacentini, head of reward, UK and Europe, at Standard Life. Piacentini recommends using an interactive tool to help employees learn about cultural norms and working practices.
“For example, in the USA, recognition is very public," he explains. "There will be lots of high fives. But if [managers] start giving public recognition in China, it will land badly and [they] won’t be leading the way [they] are expected to. A successful meeting in the US means there are lots of actions to take forward. However, a successful meeting in France is where everyone has had a say, it’s more about consensus.”
Maintaining visibility
“The biggest problem for employees working abroad is the feeling they are falling out of senior management's visibility for career progression," warns Hunter. "[Employees] can feel isolated and forgotten abroad, so it’s important that organisations take this into consideration and keep communication and engagement open, so employees feel as if they belong and continue to be motivated."
Making sure the expat is included in regular meetings via telephone or using other technologies is key to sustaining motivation, agrees Piacentini. “Physical and psychological connections are very important. [Employers] have to make sure there are regular check-ins to make sure they feel at home, otherwise they feel psychologically distant, their purpose and direction has gone.”
Recognising and using new skills and experience
Returning home can prove tricky, and this is where many organisations falter, says Hughes. PwC’s research, Reaping the rewards of an agile, global workforce, published in May 2018, shows that nearly a third of organisations lose over 25% of their employees within two years of their return home, because their skills and experience are not recognised or used.
“The employee feels ‘forgotten’," explains Hughes. "They’ll be put back into their old job, and yet they’ve had this amazing experience and learnt lots of new skills, and no one is interested. They often feel it’d be better to update their CV and get a new job. It’s vital to plan purposefully for the next role."
To keep an expat motivated once they have returned, Hughes suggests they might act as a role model, helping to bring an awareness and understanding of different cultures back to the organisation, and contributing to its inclusion and diversity agenda.
“[Employers] need to create value from the experience. It’s a great opportunity to bring all the insight and experience the expat has learnt back into the [organisation],” adds Hughes.
Read more...
David Enser: Flexibility is key to expat motivation and recognition schemes
