What is Expatriate?

An expatriate, commonly called an ‘expat’ is an employee living and working in foreign countries for a prolonged period of time. They are basically sent by the organizations they are working in for work-related or personal reasons such as skill transfer, subsidiary management, or even better quality of life.

What makes employers choose to expatriate some employees?

To reach a global expansion, expats can be sent abroad for various reasons, including business closures, cuts in profits, or restructuring. In these cases, employers have no choice but to move their employees overseas. Other times, the employee may request a transfer as they feel that working abroad will help them further their career. Sometimes it is a mixture of both parties agreeing that this new change will help improve both parties’ standing within their company.

Why do organizations require expatriate programs?

Having an expatriate program helps organizations maintain business consistency and understanding of new markets as they expand internationally. It allows companies to overcome talent shortages rather than competing for limited local talent. By doing so, expats can share valuable insights from around the globe that would benefit the company.

What are the criteria for selecting expats?

In order to choose an expatriate, rigorous evaluations are undertaken by the organization to make sure potential employees are qualified for overseas assignments. For that reason, employees must possess:

• Strong understanding of the organization’s values and practices
• Necessary technical as well as managerial skills
• Ability to adapt and thrive in a variety of cultural environments
• Ability to interact effectively with local colleagues and stakeholders

Expatriates – FAQs

What are the disadvantages of hiring expats?

Hiring expatriates might have a few drawbacks that organizations must consider:

• The hiring cost of expatriates can be significantly more expensive than hiring local employees
• They often face high levels of stress and burnout due to cultural adjustment and isolation
• Non-compliance to labour laws may result in fines or restrictions on business operations in the host country
• Cultural misunderstandings might affect the team dynamics and local employee morale

How long does an expatriate employee’s term last?

An expatriate employee’s term can last as long as the company requires. While the average time for an expatriate to stay in another country is three years, some employees choose to stay longer than that.

How can HRs assist expatriates?

Since HRs are in contact with employees regularly, they are ideally positioned to provide support and help. This includes helping employees navigate a foreign assignment’s social, economic, and legal aspects.

1. Helping them learn about the local economy, such as the local cost of living.
2. Explaining local laws that affect expatriate employees, such as tax and labor laws.
3. Explaining how to use public transportation to get from place to place.

What additional allowances do expats make?

Below are some of the more common allowances typically offered to expat employees.

• Travel Allowances
• Housing & Educational Allowance
• Hardship Allowance
• Other miscellaneous benefits