The document discusses reasons for premature return and poor retention of expatriates among multinational corporations. Failed assignments due to expatriates returning early can result in direct costs like salaries and indirect costs like loss of market share. Poor selection that does not consider interpersonal skills can also contribute to failure. Additionally, about 25% of expatriates who complete assignments choose to leave their company upon returning due to issues like reverse culture shock from differences between remembered and actual home culture, as well as changes that occurred during their time abroad. Solutions proposed include improving selection processes, providing support during expatriation and repatriation through programs.

1. Table of Contents
1.0 INTRODUCTION ....................................................................................................................................... 1
2.0 REASONS FOR PREMATURE RETURN AND POOR RETENTION OF EXPATRIATES .................................... 2
2.1 FAILED ASSIGNMENTS DUE TO PREMATURE RETURN OF EXPATRIATES ............................................ 3
2.1.1 ERROR IN SELECTION ....................................................................................................................... 4
2.2 THE RETENTION OF RETURN EXPATRIATES ........................................................................................ 4
2.2.1 CAUSES OF POOR RETENTION OF REPATRIATES.......................................................................... 5
3.0 POSSIBLE SOLUTION TO THESE CRISES ................................................................................................... 7
3.1 PRE-EXPATRIATION ............................................................................................................................. 8
3.1.1 PRE-DEPARTURE BRIEFING .......................................................................................................... 8
3.1.2 AN IN-DEPTH REVIEW .................................................................................................................. 8
3.2 EXPATRIATION..................................................................................................................................... 9
3.2.1 HOLIDAY ....................................................................................................................................... 9
3.2.2 DISCUSSION OF CONCRETE JOB PROSPECTS ............................................................................... 9
3.3 REPATRIATION .................................................................................................................................. 10
3.3.1 ORIENTATION PROGRAM........................................................................................................... 10
3.3.2 SUPPORT .................................................................................................................................... 10
4.0 CONCLUSION AND RECOMMENDATION............................................................................................... 11
5.0 REFERENCES ............................................................................................. Error! Bookmark not defined.
1.0 INTRODUCTION
The world has become a global world, boarders have disappeared, and organisations
have gone global. This has increased the needs for expatriates to handle organisations

2. international assignments abroad which require expert hands (Downes and Thomas,
1999). Expatriates are used by Multi-national corporations (MNCs) in order to get expert
hands into the new market the companies are penetrating or to give training to their
staffs in the new market. Moreover, some of the MNCs prefer their expertises to handle
their managerial positions, in order for them to remain competitive in the market due to
their experts’ competencies in the field (Forster, 2000).
However, Hiltrop (1999) revealed that Human Resource Management (HRM) crises
tend to be compound complex when it comes to the international realm. The study
further established that MNCs success or failure in the international business can be
determined by the management of their international human resources. For MNCs,
inability to communicate, control and organise their activities in the international
business environment can lead the companies into a more complex crisis. Some of the
major crises that are facing MNCs consist of: premature return of expatriates due to
failure in their assignments and the poor retention of returnee expatriates due to poor
repatriation.
2.0 REASONS FOR PREMATURE RETURN AND POOR RETENTION OF
EXPATRIATES
MNCs have been having one problem or the other regarding their international
assignments. Some of the major problems are premature return and poor retention of
expatriates. This report will examine the causes for premature and poor retention of
expatriates and suggest possible solutions to these problems.

3. 2.1 FAILED ASSIGNMENTS DUE TO PREMATURE
RETURN OF EXPATRIATES
In international human resource, failed assignments due to premature return of
expatriates are famous among the MNCs (Riusala, 2000). This issue has become an
international crisis, and a number of studies have recognized the causes of this failure.
In case of premature return of expatriates, Riusala (2000) identified that the causes
could be as a result lack of cross-cultural adjustment by the expatriates, their spouse or
family. Another study by Grant and Heijltjes (2000) added that this problem can result
from poor performance of the expatriates. Furthermore, in a study by Black and
Gregersen (1997), the study established that 10% to 20% of Americans expatriates
overseas come back prematurely as a result of lack of pleasure from their jobs which
arise due to cultural differences. Moreso, the study further stated that one-third of the
expatriates that stayed for longer period did not carry out the job satisfactorily as to the
expectations of their companies.
However, when an international assignment is yet to be completed, MNCs have an
obligatory duty to resend another batch of expatriates to finish the assignment (Pucik
and Saba, 1998), this process required both direct and indirect costs which is at the
expense of the MNCs. The following are some of the costs involved in the process of
resending another batch of expatriates to finish the assignment:
DIRECT COSTS
These include costs such as salary, training costs, travel, and relocation expenses.
These costs are incurred directly by the MNC that sent them for the assignment. All
these costs are at the expense of the MNC and since the assignment is not complete,

4. this is a loss to the company. The company need to incur another cost to make sure the
assignment is done. The company have to rearrange, reselect and resend another
batch of expatriates to complete the assignment.
INDIRECT COSTS
These are costs that are not in monetary form. It includes cost such as loss of market
share, having problem with the host country and demands by the host country that their
nationals should replace parent country nationals (Forster, 2000). Though, these costs
might sound irrelevant but the impact affects the overall profitability performance of the
MNC.
2.1.1 ERROR IN SELECTION
Another major cause of expatriates’ failure is due to selection problem (Harvey and
Noviceivic, 2001). Traditionally, expatriates are been select based on their technical
expertise, whereas other imperative interpersonal factors of the expatriates are been
neglected (Suutari and Brewster, 1998).
For example, according to Clarke and Hammer (1995) stated that interpersonal
competence support in the cultural adaptation of the expatriates and their family also
make them to feel at home which need to be given consideration.
2.2 THE RETENTION OF RETURN EXPATRIATES
Another crises faced by MNCs is their inability to retain expatriates upon their arrival to
their home country (Downes and Thomas, 1999). A number of researches have shown
that 25% of expatriates who complete their foreign assignments prefer to depart their

5. company upon their return (Solomon, 1998; Hammer et al, 1998). Meanwhile, studies
have shown that it cost more than $1.2 million in losing one repatriate employee
(Forster, 2000). However, MNCs that are investing in international career development
policies for the benefit of their expatriates are more likely to have lower rates of
repatriate turnover compared to MNCs without such policies.
Repatriation programs assist in the development of company’s policy and job
description for repatriates together with financial and career development and family
orientation are programs that can assist as part of the overall process of career
development and international human resource management (Hauser, 1999). This
problem needs to be resolved in order to guide against disenchantment and high
repatriates turnover (Haines and Saba, 1999).
2.2.1 CAUSES OF POOR RETENTION OF REPATRIATES
REVERSE CULTURE SHOCK
For a number of years in the host country, most of the expatriates experience what one
repatriate called a “Transforming procedure” as reported by Jan Nelson (employee
benefit News, November, 2005). At first, when expatriates are deployed to different
countries, they absorb different cultures that are different from their home country
culture. They learn these cultures and abide by it to enjoy their stay abroad. Some of
them even forget their own culture to enjoy their stay while abroad. However, this has a
great effect on them when they get back to their home country. To the extent that some
of the repatriates cannot cover the cultural differences between them and the people
they share similar culture with back home.

6. MISLEADING MEMORIES
Another problem why most repatriates find it difficult to stay with their companies is the
issue of memories misleading. While on the assignment abroad, most of the expatriates
miss their home, so much so that, with time their memory develops its natural banal
certainty. Homesick expatriates have in their mind everything concerning the general
environment and the tradition of their home country, not can be equate to what is in their
minds (Andreason and Kinneer, 2004). When they get back home, the pleasant
traditions and sharp memories quickly surrender to the natural facts. The certainty they
have come across is not equivalent to the traditions their mind has experienced. When
their Ideology is defeated by certainty, expatriates can feel miserable and diminished.
CHANGE HAPPENS
Changes are about to happened. People change, so does the society. This is one of the
factors that affect repatriates to stay at the home country office. Since they left for
foreign land a lot of changes have occurred and this might be totally different from how
they left the company. It is not just the new buildings around the offices, newly
constructed roads, the new machines the company just acquired. It is about the people.
The office will be totally strange to the repatriates. Some of their old friends are no
longer working with the same company and the company has replaced them with new
staffs. The repatriates will find the office uncomfortable as the new faces in the office
are strange, so they will prefer to leave for another company than to stay with the formal
employer.

7. UNWELCOME LIFESTYLE CHANGES
In reality, changing one lifestyle may be necessitated by current situation. Most
expatriates while on foreign assignment with their family were able to live in a semi-
luxury apartment that they cannot afford in their home country. For instance, a repatriate
after seven years of staying abroad, returned back to the United States and make a
confession that, the most difficult thing for her to adjust to after her resettlement back in
the US was the lack of house help. The lifestyle most of the expatriates enjoyed while
abroad is so enormous and they find it difficult to adjust to their normal life when they
return. Their employers are not ready to pay them that kind of money for them to be
able to continue with the luxurious lifestyle
LONELINESS
Finally, even when expatriates decide to stay with their employers when they return
from foreign assignment, they complain about loneliness. This affects their performance
because the motivation is more over there. So they prefer to leave the company for a
new company that perhaps they can start afresh making new friends and get
acclimatize.
3.0 POSSIBLE SOLUTION TO THESE CRISES
Goes the popular saying that for every problem there must be a solution, using critical
thinking to find solution to the entire problems, one can see that the causes of the
problems are straightforward and there solution must be straightforward. MNCs need to
close the gap between probability and certainty. Expatriates are considered to be

8. successful when they return back to their home country, they gain access to a job which
identifies all the recent gained international skills, experiences minimal cross-culture
readjustment difficulties and reports low turnover intentions (Sullivan, 2002). Whereas
MNCs can achieve expatriate that are willing to finish foreign assignments and at same
time prefer to stay after they return from oversea assignment, only if MNCs can
implement just a little plan for the expatriates.
The suggested solutions to the above crises are categories into three stages, which are
pre-expatriation, Expatriation and the Repatriation.
3.1 PRE-EXPATRIATION
3.1.1 PRE-DEPARTURE BRIEFING
MNCs should organize talk and meeting with all the expatriates before they depart for
the assignment. The company should allow the expatriate to bring their family that is
accompanying them on the trip. The meeting should focus more on the issues that are
relating to the expatriate experience while on assignment abroad. The issue of
expatriates returning home without completing the assignment should be seriously
focused on. This talk and meeting will prepare them (expatriates) ahead those
challenges and while they occur the expatriate will know how to handle it.
3.1.2 AN IN-DEPTH REVIEW
A comprehensive examination of the expatriate’s goals and responsibilities irrespective
of where they are deployed to should include establishing written procedures in which
expatriates performance and progress are monitored. Meanwhile, care must be taken

9. not to obstruct assessment functions of the host country office. However, host country
offices do not always have people suitable to manage expatriates and give them job
descriptions and expectations. This guide is supposed to spell out how expatriates will
be evaluated based on their performance and this process will assist expatriates to
maintain cordial relationship and connect with their home country management,
because the evaluation will be sent back to their home country office.
This review will establish communication between expatriates and their home office
management, and the more the communication, the easier for the expatriates to return
to their home country and still mingle.
3.2 EXPATRIATION
This is the second stage plan to find solution to the crises between the MNCs and their
expatriates. Assuming that in the pre-expatriation stage, good plans have already been
laid down. While on the assignment, the activities will be carried out as planned.
3.2.1 HOLIDAY
It has been established that the more contact with home country the better and easier
for expatriate to perform as expected. Therefore, it will be a better idea to allow the
expatriates to visit their home country with their family often. This will make them to still
get use to their home country cultural traditions.
3.2.2 DISCUSSION OF CONCRETE JOB PROSPECTS
Shortly before the expatriates return back to their home country, MNCs should make
arrangement for relevant and a suitable job for the expatriates before they return where

10. their skills will be relevant. This will motivate them and they will like to continue working
with the company.
3.3 REPATRIATION
If the above two stages have been properly established, then there should be no
unpleasant experiences. However, companies must make preparation to welcome them
and re-orientate them. The following are some of the step to be taken that will make
them feel at home:
3.3.1 ORIENTATION PROGRAM
MNCs should make sure that shortly after the arrival of the expatriates; they should be
invited for orientation program together with their family. The program should include
talk on expatriate experience while abroad, their feeling as repatriate, they should be
given permission to share their experience, lecture should be given to them about how
to adapt back to their home country culture and they should be encouraged.
3.3.2 SUPPORT
One of the major complaints of the repatriates are issue concerning the talent and skill
they acquired while on the assignment abroad that is not put into use when they return.
MNCs should give them support to make sure that repatriate feel valued and
opportunities is given to them to discharge their talents and skills.

11. 4.0 CONCLUSION AND RECOMMENDATION
MNCs can overcome these crises if proper planning is set to rectify these problems.
The solutions will save MNCs a lot costs both direct and indirect costs and their
expertises will return back to their company. Those problems occur because there is no
plan to tackle their existence.
This report will conclude that there is no problem without a solution and these problems
can be rectified with little effort planning. MNCs should start from selection of
employees that will go for foreign assignment, proper screening should be carried out to
ensure that not only technical competence is considered, other factors such as year of
experience, how long has the employee stayed offshore before, can the employee
adapt to other people’s culture and so on. These are some of the other factors to be put
into consideration during employee selection for foreign assignment.
Finally, if other suggested solutions can be adhered to there is possibility that these
crises will be totally overcome.