Tuesday 22 April 2008

Expatriate Assignments


Preparing for living abroad


Initially, the prospects leave little to be desired: “excellent location”, “booming industry”, “responsible position”, “career step”, “bonus & extras”. This is the wording that usually accompanies the proposal of an expatriate assignment in some far-away country. And most of it is certainly true.

Apart from the thrill of doing something out of the ordinary, there is a lot more to going abroad for a pre-defined period of time (usually two to three years) or even forever. Adapting to a new culture and work environment proves to be in most cases more demanding than originally perceived. But on the other hand, going through tough times also brings along interesting experiences, not at last about oneself.

Nowadays, an intercultural training to prepare for the foreignness of the new working and living environment should be a matter of course. The preparation for the “other” culture as well as a consciousness for one’s own action patterns should actually be a mandatory requirement by any manager or executive to his/her employer.

Additionally, there is a number of contractual things that should be taken into consideration before leaving home. While every country has different labour laws, some basic principles should be considered in a separate “expatriate assignment agreement”. They often constitute also the power of negotiation and the final mix should be aligned with the future expatriate’s individual requirements.
  • currency of payment (local – US$ – Euro)
  • mobility bonus hardship incentives (for special conditions)
  • rental payments health insurance (also for family members)
  • social security payments
  • substitute for family allowance
  • flights home (frequency and travel class, including family)
  • tax consultation
  • moving support
  • schooling fees
  • language training (also for the family)
  • return guarantee

In companies that frequently send their employees to work abroad, all of these issues can be expected to be dealt with in a proactive manner. However, should the expatriate assignment be a new field, it is very important to consider the various factors – negligence in this case could mean risking financial or labour disadvantages.

But no matter how tedious the preparations for going abroad turn out to be – when going with an open mind, the experience itself can be expected to be highly gratifying.

And one thing is for sure: it always ends up being a travel to one’s inner self.


Andreas Hauser


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