INTERNATIONAL TRAINING AND DEVELOPMENT

Just as in any organization—global in scope or not—training and development are key factors for HR success. For the global firm these activities are just as important, but for incoming expatriates, host-country nationals, and third-country nationals, training and development is crucial. The training needs of a German expatriate assigned to the United States for the first time might be very different than the needs of an employee working for the company as a factory assembler in Mexico, but both need training to be effective. For example, when companies first began to put down roots in Mexico on the U.S./Mexican border, there was little incentive to train employees who were seen simply as a source of cheap labor.

But employee turnover rates ran over 20% a month in many places, and employers found that the gains in labor costs were offset with shoddy quality. Training quickly became an important part of turning the HR catastrophe around. Greatly improved productivity has resulted from programs of continuous training, skills improvement, vocational training, and employees training other employees.

Figure shows three different kinds of training and development activities for global employees. Not all apply to every type of international employee, but all are important.

International Training and Development 

1. PRE-DEPARTURE ORIENTATION AND TRAINING

The orientation and training that expatriates and their families receive before departure have a major impact on the success of the overseas assignment. Three areas affect the cross-cultural adjustment process: (a) work adjustment, (b) interaction adjustment, and (c) general adjustment. Permeating all of those areas is the need for training in foreign language and culture familiarization. Many firms have formal training programs for expatriates and their families, and this training has been found to have a positive effect on cross-cultural adjustment.

Individuals selected to work outside the United States for MNEs need answers to many specific questions about their host countries. Such areas as political and historical forces, geographic and climatic conditions, and general living conditions are topics frequently covered in the orientation and training sessions on the culture of the host country. Expatriates and their families also must receive detailed, country-specific training on customs in the host country. Such knowledge will greatly ease their way in dealing with host-country counterparts. Training in such customs and practices also should be part of the training programs for individuals who will not live outside the home country but will travel to other countries for business purposes.

A related issue is the promotion and transfer of foreign citizens to positions in the United States. As more global organizations start or expand U.S. operations, more cross-cultural training will be necessary for international employees relocated to the United States. For example, many Japanese firms operating in the United States have training programs to prepare Japanese for the food, customs, and other practices of U.S. life. The acceptance of a foreign boss by U.S. workers is another concern. These issues point to the importance of training and development for international adjustment.

Once global employees arrive in the host country, they will need assistance in “settling in.” Arrangements should be made for someone to meet them and assist them. Obtaining housing, establishing bank accounts, obtaining driver’s licenses, arranging for admissions to schools for dependent children, and establishing a medical provider relationship are all basics when relocating to a new city, internationally or not. But differences in culture, language, and laws may complicate these activities in a foreign country. The sooner the expatriates and their families can establish a “normal” life, the better the adjustment will be, and the less likely that expatriate failure will occur.



2. CONTINUING EMPLOYEE TRAINING/DEVELOPMENT

Career planning and continued involvement of expatriates in corporate employee development activities are essential. One of the greatest deterrents to accepting foreign assignments is employees’ concern that they will be “out of sight, out of mind.” If they do not have direct and regular contact with others at the corporate headquarters, many expatriates experience anxiety about their continued career progression. Therefore, the international experiences of expatriates must be seen as beneficial to the employer and to the expatriate’s career.

One way to overcome problems in this area is for firms to invite the expatriates back for regular interaction and development programs with other company managers and professionals. Another useful approach is to establish a mentoring system. In this system, an expatriate is matched with a corporate executive in the headquarters. This executive talks with the expatriate frequently, ensures that the expatriate’s name is submitted during promotion and development discussions at the headquarters, and resolves any headquarters-based problems experienced by the expatriate.

Opportunities for continuing education represent another way for international employees to continue their development. In some of the more developed European countries, foreign executives and professionals may enroll in Master of Business Administration (MBA) programs at well-respected universities. By obtaining an MBA while on the international assignment, the expatriate keeps up with those with similar jobs in the home country who pursue advanced degrees while working full time.


3. REPATRIATION TRAINING AND DEVELOPMENT

The process of bringing expatriates home is called repatriation. Some major difficulties can arise when it is time to bring expatriates home. For example, the special compensation packages often available to expatriates are dropped, which means that the expatriates experience a net decrease in total income, even if they receive promotions and pay increases. In addition to concerns about personal finances, repatriated employees must readjust to a closer working and reporting relationship with other corporate employees. Often, expatriates have a greater degree of flexibility, autonomy, and independent decision making than do their counterparts in the United States.

Expatriates often must also be reacclimatized to U.S. lifestyles, transportation services, and other cultural practices, especially if they have been living in lessdeveloped countries. For example, the wife of a U.S. expatriate was accustomed to bargaining for lower prices when she shopped in the foreign country. During the first week after her return to the United States, she tried to bargain with the checkout cashier at a supermarket before she realized that she was back in a place where this practice was not normal.