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#4 Summarise the impact of cross-border mobility on the employee and family
Intro
To summarise the general impact of cross-border mobility we are required to evaluate all
stakeholders. This overview will offer an insight into which factors impact upon one particular
stakeholder (the employee) and their family during the life-cycle of an international assignment.
The complete impact on the assignee and family can only be fully realised once the assignment has
been completed. However, if we review and explore the effects on the assignee and family
throughout different stages of the journey, Pre-Assignment, During Assignment and Repatriation, we
can explore the influencing factors that culminate to determine the overall impact.
Not everybody will be motivated by the idea of international relocation; there is often a different
opinion between the family and employee, usually because it may be more beneficial for one and
not the other. Also, it’s important to remember that the notion of change does not always appeal to
all. The impact the assignment will have on the employee and family is crucial, therefore there are a
number of important things required to be considered when deliberating upon an international
assignment. Some key areas for both the family and assignee to consider would include;
- Financial - Business & Career
- Personal & Lifestyle - Education
In particular within these areas, questions may include;
Will this offer career development for the employee? Are there suitable employment opportunities for the spouse? Will there be sufficient compensation to support the transition? Is there adequate education available for the children? Is the accommodation & transportation suitable? Is there suitable and affordable health care? How will social lives be affected? Are there sufficient religious amenities? Have the cultural and political circumstances of the destination been explored? What impact will this have on the family?
These initial areas of concern should be discussed and highlighted during the pre-assignment
briefing.
Assignments are effected by different elements and therefore, logically, should be treated as case by
case projects. Andrea May’s article in HR Magazine 2015 supports this evaluation and comments
that this is a crucial element that employers need to remember; “What companies also fail to realise
is that one size does not fit all when it comes to relocation packages and support.” (May, 2015). It is
important to understand that the employee is the essential variable, with individual circumstances.
Therefore, we cannot say that impact will always be the same, however we can summarise the
factors involved, which can be assessed throughout the course of the assignment. We can only offer
a generic overview when evaluating what impacts occur from a cross-border move.
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Pre-Assignment
The pre-assignment period is often when the individual employee feels the most optimistic.
However, when considering the employee and family’s combined feelings it is a period mixed with,
positive, negative and neutral outlook on the assignment.
Deloitte’s (2014), Report; ‘Re-focusing on enhancing the employee experience’, reveals that during
the pre-assignment period, 90% employees believe that the assignment will enhance their career.
This suggests that during this period the idea of the assignment has a positive impact as it is
motivational for the employee. It is this belief that most commonly drives the employee to the
assignment in the first place. PricewaterhouseCoopers (2010), in their ‘Talent Mobility 2020’ article
suggest that the era of the millennials has different conceptions to the idea of cross-border mobility
than those of previous years; “The millennials have a mind-set, aspirations, and expectations
markedly different than those of all previous generations.” (PricewaterhouseCoopers, 2010). The
PWC ‘Talent Mobility 2020’ article further describes the willingness of this society, who feels that the
opportunity to relocate internationally and gain experience will positively impact their personal
development; “Millennials are more open to overseas assignments than any previous generation
and see working overseas as an important part of their own personal development.”
(PricewaterhouseCoopers, 2010).
Overall, during the pre-assignment stage, the employee’s feelings are the most positive about
exploring something new, whilst gaining international experience; “Before going on assignment, the
level of excitement and expectation from the assignee is at its peak due to prospects of career
enhancement, gaining global experience, working in a different country/culture” (Deloitte, 2014).
However, when deflecting from the employment perspective, the employee is faced with the issues
surrounding absence from family and friends.
The decision on whether the family should move with the employee is certainly a large factor to be
considered when evaluating the impact on the family and employee together. Crown World Mobility
(2015), in their ‘World Mobility Perspectives, Issue 1’; Label those families that don’t commit to the
relocation overseas as “split-families”. They further explain that a common reason families choose to
be separated during assignment is based on the circumstances of the spouse and/or children; “The
most common drivers are family circumstances: dual-career families, children’s education needs and
extended family responsibilities are typical examples.” (Crown World Mobility, 2015). For families
that are new to this idea, and who have only ever lived and worked in the same destination, the
concept is daunting and therefore impacts negatively on the assignment prospect. This does not
apply in all cases to be sure, and many families ‘buy in’ to the idea. However, if they don’t there is a
greater risk of pressure and disruption to the assignment as the employee is not only out of their
comfort zone, in a new global location, but is also now facing a different domestic circumstance, by
not having their family with them.
Some employees fronting cross-border mobility may not have the worry of spousal issues. However
the idea of moving away from family and friends can pose and a major concern. Not only would this
have an impact on their immediate social lifestyle, but specific circumstances may also act as
negative components. An example of this could be, a family member at home with an on-going
illness, needing support; may struggle to maintain their relationship with the assignee due to the
distance in location etc. Should their illness be life threatening, the employee may not want to
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commit to the cross-border move at all. This would therefore be a key topic for consideration to be
made by the employee before committing to the assignment.
Those employees, who are considering relocation as a domestic unit, have to pre-empt the effect
that this will have on their family overall. They should take into account the thoughts and opinions of
their family along with their own concerns regarding how the assignment will impact their family’s
wellbeing. An example is well described in PricewaterhouseCoopers’ (2010) ‘Talent Mobility 2020’
article; “With some cultures and demographic groups more reluctant to work outside of their home
locations, not everyone will be willing to hop on the next plane for these opportunities, regardless of
technological advances. Some employees fear losing their social networks and disrupting their
families, including working spouses who may have difficulty finding suitable employment in a new
region. Caring for elderly parents may also be a key concern—particularly as populations continue to
age in many parts of the world.” (PricewaterhouseCoopers, 2010). There is always a fear from the
assignee that there will be a negative impact on their relationships, both corporate and most
importantly personal. Disagreements between those in favour of the move and those who are not,
can influence all parties negatively. During the pre-assignment period families should be encouraged
to create their own personal risk assessment, initially outside of the presence of an assignment
counsellor. This will enable family/spouse concerning factors, of all proportions, to be considered
and discussed. Most importantly the topic of failure should be explored to anticipate the impact a
failed assignment may have on the family unit if they return home early.
Should the relocating family have children of school age, education will undoubtedly be a major area
of concern. Education not only impacts the family’s well-being but it also has an on-going impact on
the child’s future. Families aim to ensure that their children receive a good level of education in their
new destination. Some families may even have specific educational requirements that need to be
considered; either within a particular form of teaching or institutional academy that are specialists
within certain subjects. Ensuring that the cross-border move will offer either an equivalent or
superior form of education will not only greatly influence the family’s decision to move, but will
possibly also be a deciding factor regarding the duration of the assignment should the provided
education not live up to its expectation or should the child not settle in etc. Ernst & Young’s (2013)
‘Global Mobility Effectiveness Survey’ describes that failed assignments and/or early repatriation is
often the direct result of family and spouse issues that include; dissatisfaction with the standard of
schooling; “Family and spouse issues continue to be the biggest challenges that threaten the success
of international assignments. Sixty-five percent of the respondents cited personal issues such as a
lack of adequate schools, insufficient housing or inadequate work opportunities for a spouse as
reasons for failed assignments or early repatriation.” (Ernst & Young, 2013).
During Assignment
It is during the assignment period that the immediate effects of the relocation comes into play.
Moving home itself can be an extremely stressful time for any individual, therefore when
considering an international move it’s important to remember that there is not only new
accommodation; the location, work address, culture and language has most likely changed as well.
These lifestyle changes can have a great impact on a family, particularly if finding it difficult to adjust;
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“The first few months of the assignment provides the most potential for “issues” to arise e.g.
incorrect first pay, family adjustment to overseas location, embedding his/herself into the new
workplace.” (Deloitte, 2014). The initial period of the assignment can be classed as the adjustment
phase; this is when the employee and family attempt to understand their new lifestyle and become
familiarised with it. For the family, it is in this time-frame that they are also going through their own
personal and social adjustments too, such as; settling in to a new school, social clubs and general
lifestyle difference.
Despite there being many uncontrollable factors that come into play during an assignment, there are also many that can be managed by the employee and family that result in a positive impact. A great example of this is highlighted in Grosberg and Abrahams (2014) article; ‘A Successful International Assignment Depends on These Factors (Harvard Business Review)’ that describes the way that the spouse can utilise the situation to evolve their own personal or occupational development; “Anecdotally, we’ve found that some of the most successful overseas assignments involve partners who use the move to navigate a transition of their own. Can your partner take advantage of the time abroad to earn an advanced degree, enter a new industry, learn a new skill, or raise young children? If so, this might be the ideal time to accept an international assignment. It could be an adventure and an opportunity for the entire family — not a sacrifice everyone else is making for your career.”(Groysberg and Abrahams, 2014). One of the most common fears for any assignee and family is that they will become disconnected
with their social, corporate and family network. For the assignee and family, the fear of becoming
detached from their network acts as a huge factor during assignment. Social media networking sites
have become a remarkable tool that can be utilised to ensure family and friends remain an active
part of life to those that have relocated overseas; “A major benefit is to ease the ‘soft’ issues by
keeping everyone – assignee and family – connected in the new country as well as to the “people
back home.” (Cadden and Harris, n.d.) These sites have greatly impacted the lifestyle of relocating
individuals as they facilitate frequent communication and updates by means of instant messaging,
photo sharing, etc. Being that an initial fear of families facing cross-border mobility is undoubtedly
the fear of losing contact with friends and family, these technological innovations, bridge the
distances and enable individuals to share their experience with their families and friends. Thus they
are able to feel more positively about their move.
Many employees are fortunate to have a family ‘home visit’ included in their contract whereby the
cost if full covered by the employer. This enables the family to spend time with those left behind;
“Most employers recognize the importance of maintaining and renewing relationships with family,
friends, and business colleagues in your home country and generally will provide for one trip per
year at company expense for you and your family to return home.” (KPMG, 2013). For the employee,
there can also be the concern that they will lose not only social contacts, but professional contact
with their existing business network and colleagues. This can cause strain on their work and can
impact negatively on their return to work after repatriation; “Some employees take advantage of
these trips home to maintain relationships with colleagues, keep abreast of home-office
developments, and network, which ultimately can assist the employee in his or her successful
repatriation back to the home office.” (KPMG, 2013).
Healthcare is an issue that will certainly have an impact on the trailing family should they require any
medical support during the assignments. Poor medical care would have a negative impact on the
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families’ wellbeing. Some health insurance offers global policies, meaning that the cover is still in
place whilst on assignment. Of course this may not be the most suitable plan depending on the
circumstances and length of the assignment. Some locations may require coverage of another plan
such as an expatriate health policy. Finding out about what health insurance is available is an issue
that will affect all parties thus is an important topic for consideration. Not only will the health care
itself have an impact on the family unit, there may also be financial considerations to be made such
as the on-going costs etc.
Repatriation
Repatriation should still be considered as an important part of the assignment phase. “The impact of repatriation can be just as significant for the family as the original move itself.” (Tidey, 2011). A failed assignment will result in early repatriation. This of course would not only greatly impact the family unit (posing as additional stress, lifestyle change and educational disruption etc.) but would also impact upon the employee and employer. The cost of a failed assignment is substantial and would be at the full expense of the employer. Repatriation after the completion of a successful assignment will still greatly impact the employee and family. The employee may have started the assignment with motivation, determination and excitement about the career prospects that were to be gained from the experience. However, upon return home, they often have entirely opposite feelings. The employee may feel complete disconnected with their employer, particularly if they return without a specific job to go back to. They may be unsure as to what lies ahead for their career plan and may question their decision to take the assignment in the first place; “Firstly, they will have a deep sense of insecurity. They may have taken their family away from extended family and friends, interrupted education programmes and careers, and for what? To return home with no job?” (Tidey, 2011). Family members are often faced with the struggle of leaving behind their newly found social
network. Children of school age will be disheartened at the fact of leaving behind their ‘best friends’.
There can also be considerable disruption to the child’s education, particularly if they have been
studying under one curriculum and will be moving to another completely new prospectus as this
may affect their ability to perform academically. Dominic Tidey in ‘Repatriation – The Real Costs’ not
only provides an overview on children repatriating during school age, but also considers adolescents
who may feel that the host location is more home, than home itself. This is often the result of teens
becoming ‘Third Culture Kids’. The repatriation period, may have more of an impact on this age
group. Age is the key factor of this. The teens are not only finding their own identity and coming to
terms with the challenges of the juvenile years; they are now faced with pressures of losing ‘what
they know’. It is in this time frame that the youths can experience the same fears that the spouse
and employee had felt both pre-assignment and during the early stage of the assignment.
For the family as a whole, it important to remember that repatriating can sometimes be as hard as
the cross-border move; “When expats go abroad, they expect everything to be new, different,
exciting, but when returning home, they expect everything to be just as they left it, when in reality
the place has changed, their friends have changed, and they have changed.” (Habachi, 2015). For the
spouse (and employee) who have dedicated their spare time to building these new relationships, it
can certainly be a stressful task. There is often a culture shock on the return home which leads to
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settling-in issues. “The challenges that are faced in trying to reintegrate into a social and familial
network are akin to having to start again.” (Tidey, 2011).
Statistics reveal that the employer/employee relationship is strained during the repatriation period. Returning to the home country itself has its own issues, but returning to work when you either have no specific position, or have no advancement in comparison to before the assignment poses an entirely new strain on the business relationship. There are many statistics to support the hypothesis, that it is after repatriation that the dissatisfaction with the employment is manifested and causes the employee to leave the organisation; “Our survey finds that, on average, 16% of assignees left the company within the first two years after repatriation, with a further 41% simply returning to their pre-assignment position.” (Ernst & Young, 2013). After repatriation, the family members may be able to utilise their knowledge and experience gained during assignment to support their personal development back home. An example of this could be utilising the language skills and cultural awareness they have gained to advance them in a new career back home. For children who have grown up or have been educated internationally, it seems that the global experience offers them a strong grounding for academic achievement; “While growing up as third culture kids may sound challenging, these children often benefit from their multicultural background. In general, they often reach excellent academic results. About 90 percent of them have a university degree, while 40 percent pursue a postgraduate or doctoral degree. They usually benefit from their intercultural experience which helps them to grow into successful academics and professionals.” (Internations. n.d.). Further to the academic results, there are also many skills that the family will have developed during their assignment experience. Internations, in their article ‘Third Culture Kids’, highlight the life skills that can be developed as a result of the global experience; “Excellent communication and diplomatic skills are what many third culture kids get out of their experience abroad. These skills help them thrive later on, during their academic studies as well as their career.” (Internations. n.d.). These life skills are achieved when a family has been provided with sufficient languages and/or cross-cultural training throughout the assignment, which enable them to become accustomed to, and thrive in, their new host location; “Assignees reported that the assignment was a success and they had a positive experience when:
1. They adapted well to the culture 2.There was a clear career progression plan on return to their home country 3.Their family felt settled 4.They were able to speak the host country language.” (Deloitte, 2014).
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Summary
The way that an assignment impacts a family and employee varies throughout different stages of the
assignment period. We have explored the pre-assignment anxieties and fears, the reverse ‘culture
shock’ experience that can be faced when returning home, as well as many other personal
influencing factors. An international assignment will either have a positive or negative impact on the
family and employee, the extent and type of impact can only be assessed and evaluated on a case-
by-case basis. It’s clear that individual circumstances act as the differentiating element in each case.
It is evident, that in the era of millennials, there is already a progressive belief that a cross-border
move would be advantageous, thus the idea of an assignment is a focus of interest rather than
concern. Despite this era being more acceptable to international relocation, we cannot say that the
impact would always be the same; however we can conclude that the experiences gained from an
assignment can contribute to personal development providing both assignee and family with
advanced life skills; “While the cultural and educational opportunities of living in another country
have a positive impact on the quality of life of the assignee, the international assignment may also
negatively impact the assignee’s quality of life due to reduced contact with family, friends, and
colleagues. Assignees are well aware of the promising opportunities of an international assignment
and view the global assignment as a moderately helpful or very helpful way to improve their cultural,
adaptability, and flexibility skills. However, they are also aware that it may diminish their personal
relationships. Stronger family relationships rate less favorably when the assignment is an alternative
type. On the other hand, assignees on long-term expatriation assignments perceive their experience
as one of the most helpful ways to create stronger family relationships, as some families grow closer
in a new host country.” (Cendant Mobility, 2004).
Despite the concerns that distance will have a negative impact on the family’s external relationships,
advancements in technology enable fluid communication, thus reducing the feeling of detachment
from their previous life. Hi-tech developments throughout the millennial era are contributing factors
to the modern perception of mobility.
To conclude the impact that cross-border mobility has on any participating individual will differ yet it
is fair to say that with the right support and knowledge the transition and experience, if completed
in full, can have a beneficial and advantageous impact for those involved.
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