When the Federal government allowed 1700 overseas workers to be employed in Gina Rinehart’s Western Australia mining empire a few years ago, the decision was met with controversy. Around the same time, the local manufacturing sector was shedding jobs and many people questioned why the mining jobs were not offered to Australians. Others wondered what the fuss was about and why a tiny segment of the workforce was generating such publicity.
What the ensuing debate did highlight, was the worldwide shift in the paradigm for expatriate employment trends. Only a decade ago we would have considered ‘typical’ expatriate workers to come predominantly from Western nations, coaxed to outposts in developing countries with the lure of generous packages that included housing allowances, school fees and club memberships. Of course, the labour movement has always comprised far more than this. But, as our perception of the traditional expatriate worker changes, so too must our expectations.
In Australia, we are experiencing far greater levels of foreign direct investment (FDI) than ever before, particularly from developing countries such as China. It is only to be expected that this surge of investment will be accompanied by a flow of the home country’s national staff.
As the Chinese economy continues to surge, it is also developing interests in countries such as Africa and Brazil, too. A BBC documentary on China’s recent involvement in a large Angolan building project noted that hundreds of Chinese workers had been employed, alongside only a handful of Angolan nationals. This classic ethnocentric staffing policy could be compared with the brutal colonialist era. However, as a spokesperson for the African development bank pointed out when interviewed for a story published in the Economist “more Chinese have come to Africa in the past ten years than Europeans in the past 400”.
Those businesses conducting business globally, need to have a flexible view of, and approach to, expatriate workforce arrangements. There is significant investment involved in moving people to take up jobs offshore and there are great benefits to those employees taking up the challenge. So how can business ensure that international working arrangements will be successful? Is it enough to follow the old adage “When in Rome’ …?
There are a number of factors to consider, and prior preparation for both the business and the employees is at the forefront of these. Recruitment must also be paramount. Candidates for overseas roles should be assessed – in tandem with their skills and suitability for the role – for their willingness to accept other cultural norms, ideas and different ways of conducting business. Resilience must also be a key attribute – such dramatic lifestyle change is not for everyone.
It’s important also for both employer and employee to be realistic about transition times. There are many variables in this equation and it is rarely, if ever, instantaneous.
Businesses can also benefit greatly from cross cultural training for expatriates. There is proof that learning programs of this nature can assist individuals to develop their ‘Cultural Intelligence’ which can significantly improve outcomes for expat postings.
When an expat posting goes wrong the impact on a company’s bottom line can be devastating, especially if employee disengagement, demotivation and reduced productivity are the result. However, even more detrimental is reputation risk. PR strategies and brand can be susceptible to cultural misunderstandings or confusion arising from miscommunication, and when trust is eroded, sometimes it is impossible for a company to recover.
Cross cultural training can help to avoid these issues. It can provide business with the confidence that their people are well equipped for doing business internationally.