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Ryerson University
Human Resources
MHR 523
Rupa Banerjee

Ch 17 Managing Human Resources in a Global Business Key notes to know from Breakout session -Different countries to work -Understanding the factors of sending an employee overseas -Culture -Family Expatriate- Employees who are citizens of the country where the parent company is based, who are sent to work in another country. Globalization of businesses is now the norm. Talent shortage- global phenomenon Working population is aging in both developed and emerging economies. Lower birthrates mean a reduced supply of workers in the coming decades. China and India have no labour shortages, they have major shortages of talent. Relocation specialists are becoming strategic partners in determining the need for an assignment or relocation. Their jobs include identifying who is best suited to go, and making sure that all supports are in place to make that assignment a success. Truly competitive companies must recognize the value of mobility in terms of talent development. Use assignments to strengthen leadership development. Achieving global mobility is vital to achieving a true competitive advantage. Workforce mobility programs have a direct impact on companies profits- 21 century Global Relocation Expatriates doubled in the years 2005 to 2008. Family issues ranks as the number one concern when it comes to employee relocations. Employees need to know the working and living conditions in another country and how it will affect their compensation and benefits. Along with what kind of relocation assistance they will receive. Challenges- techniques used to recruit, select, train, compensate, and provide family support for employees who are based abroad. 1. Candidate identification, assessment and selection. Required business and technical skills. Key traits to be identified are cultural sensitivity, interpersonal skills, and flexibility. 2. Cost projections. The avg. cost of sending an employee and family overseas is between 3 to 5 times the salaries. Quantifying total cost and deciding whether expatriates or local employees will be used are essential to budgeting. 3. Assignment letters. Specific job requirements, vacation, home leave, and repatriation arrangements will have to be documented and formally communicated in an assignment letter. 4. Compensation, benefits and tax programs. Many ways to compensate living abroad, differences in living expenses. Usually deals with home-based pay plus international supplement and destination pay. 5. Relocation assistance. Assisted with maintenance of home and other belongings, shipment and storage of household goods etc. Avg cost of a Canadian employee is between $50000 to $100000 6. Family support. Cultural orientation, educational assistance, emergency provisions are some of the matters to be addressed before the family is moved. Why Expatriate Assignments Fail Expatriate assignment failure- early return of a global assignment. Can cost companies millions of dollars and employees there jobs. Important that the employer understands how unhappy and cut off the spouse can feel in a foreign environment. Employer has to provide realistic job previews of what to expect. Careful screening, improved orientation and improved benefits packages as well as other solutions. Solutions are making the failure rate decline. Some examples are selecting better expatriates, helping spouses get jobs abroad, and providing more on going support to the expatriate and his or her family. “Global Buddy” programs local managers assist new expatriates with advice on things such as office policies, norms of behavior, and where to receive medical assistance. Emotionally stability breeds success. Failures have mainly related to emotional immaturity, inability of manager or spouse to adjust, and an ability to cope with larger overseas responsibilities. The technical skills are usually there. Failure is based on family and personal issues, lack of cultural skills that haven’t bee
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