These 5 Factors Stop Expats from Succeeding in Their International Assignments

Moving abroad to work is a turbulent experience. 

I remember when I went to work in South Korea. I took the wrong bus and ended up in a remote city far from where my new company was supposed to be. And, that was just day one.

Despite the potential rewards of working abroad, many expatriates face significant challenges that can lead to underperformance or failure. 

Expatriates are expensive from the outset, and underperformance or failure only escalates the costs. The financial impact of expatriate failure or underperformance is difficult to measure, extending beyond just the transfer and salary expenses. 

Most executives concur that these losses are significant, affecting up to 40 percent of all expatriate assignments. Direct costs of expatriate failure for American companies were estimated at around $2 billion annually, a figure that has likely risen. 

Studies indicate that 50 percent of expatriates who return early from assignments were operating at low levels of effectiveness. To following 5 points summarise the key factors that stop expats from succeeding in their international assignments.

1. Lack of Comprehensive Support

A major factor in expatriate failure is the lack of comprehensive organizational support. Many companies provide only a patchwork of partial, ad hoc solutions that fail to address the full spectrum of challenges associated with living and working abroad. Effective expatriate programs should include continuous support, covering pre-departure preparation, on-site assistance, and repatriation planning. Without sufficient support, expatriates and their families often struggle to adjust, leading to increased stress and a higher likelihood of assignment failure.

2. Inadequate Cultural Sensitivity

Navigating a different culture and business environment poses significant challenges. Expatriates frequently encounter difficulties in understanding and adapting to new cultural norms and communication styles. Many companies neglect to offer adequate cultural sensitivity training, leaving expatriates unprepared to manage these differences. This lack of cultural awareness can result in misunderstandings, strained relationships, and ineffective leadership, which ultimately contribute to assignment failure.

3. Poor Career Management

For expatriates to remain motivated and succeed, effective career management is essential. However, these efforts are often sidelined as expatriates concentrate on immediate job demands and HR struggles to provide adequate support. Without clear career development plans and regular feedback, expatriates may feel disconnected from their career goals and the organization's broader strategy. This disconnect can lead to decreased motivation and performance, increasing the risk of assignment failure.

4. Family Adjustment Issues

Family concerns play a crucial role in expatriate success. Many candidates decline international assignments due to worries about their families' ability to cope with the move. For those who accept, difficulties in family adjustment can lead to high stress levels and decreased job performance. Companies that do not provide comprehensive support for expatriates' families—including assistance with housing, schooling, and spousal employment—contribute to a higher risk of assignment failure.

5. High Attrition Rates

Retaining expatriates during and after their assignments is a significant challenge. Many expatriates leave their positions prematurely or resign shortly after returning home due to dissatisfaction with the assignment or inadequate repatriation support. High attrition rates not only result in substantial financial losses for the organization but also disrupt business operations and continuity. Effective expatriate programs should incorporate strategies to keep expatriates engaged and supported throughout the entire assignment lifecycle, including thorough repatriation planning.

Conclusion

The high failure rates of expatriate assignments underscore the need for organizations to invest in comprehensive support programs. 

Recognizing and mitigating these five critical factors can lead to more successful international assignments and a stronger global presence for the organization.

Partnering with external consultants can greatly enhance the management of expatriates throughout their journey. This collaboration leads to the development of high-performing leaders and managers who significantly contribute to the company's overall success. 

Interested in learning more? Contact us at: nathan@nathancornwellconsulting.com