What are Host Country Nationals?

A host-country national (HCN) refers to a citizen of the country where the company’s branch is located. This can be different from the country where the company is headquartered.

Host-country nationals are often hired by companies as they serve as a more cost-effective alternative to expatriate employees. Some foreign governments also mandate the hiring of HCNs as part of a policy that allows them to operate in the country.

Host-country nationals are mostly hired through:

• Recruiter agencies
• Ad-hoc recruiting

Pros of Hiring Host-country Nationals:

Hiring host-country nationals can often benefit the company in these ways:

• They serve as a cost-effective alternative to expatriate employees.
• They eliminate language barriers, which can be an important element of commercial success.
• They understand the local market better and can play a big part in a business’s local and international success.
• They improve the company’s chances of integrating and accommodating local cultural practices into its operations.
• They make relationship-building easier with local stakeholders.

Challenges of Hiring Host-country Nationals:

A workforce consisting of HCNs can also pose some challenges. These include:

• Navigating labor laws can be challenging.
• The company’s practices can clash with local cultural practices.
• Managerial conflicts can arise if home-country nationals are put in charge of a team predominantly consisting of host-country nationals.

Strategies to Successfully Integrate Host-country Nationals into a Global Workforce:

Companies can do the following to ensure their HCN staffing efforts are a success:

• Ensure comprehensive onboarding and continuous training programs.
• Promote inclusive company policies
• Establish seamless communication between home-country branches and host country subsidiaries.
• Integrate tailored performance management systems that can cater to local industrial contexts
• Uphold international operational standards

Host-country Nationals – FAQs

What are host-country nationals?

Host-country nationals are people who are the citizens of a country in which a company’s branch is located. For example, if a Belgian company has a branch in Indonesia and hires Indonesian staff, then the staff would be known as host-country nationals.

Are host-country nationals the same as third country nationals?

No, host-country nationals are not the same as third-country nationals. Host-country nationals refer to employees who are citizens of a country in which a company’s branch is located. Third-country nationals (TCNs), on the other hand, are employees who are citizens of countries that are neither the host country nor the home country.