what is international assignment in hrm

International Assignments: New Roles and Responsibilities for HR

The crucial role of hr in managing international assignments.

The process of managing international assignments can be complicated. HR departments play a crucial role in making sure they run smoothly. Our managing partner, Stefan Remhof , lays out the specific tasks and challenges in this process, including additional complexities like sensitivity to our rapidly changing world and new roles within a company.

The challenge of international assignments for everyone involved

Sending employees abroad is challenging for everyone involved. From the employees and their families to the employer and company, international assignments are a huge change. More than a geographical shift, there are logistical, operational and operational nuances to consider. Financially, committing to international assignments signifies more than a mere allocation of resources; it symbolises a strategic investment in a company’s human capital. Navigating the complexities of international assignments requires a modern approach. Gain additional perspectives on this topic through the collaborative insights found in LinkedIn’s article on Managing International Assignments Effectively , which explores the challenges and strategies in managing these assignments effectively.

International assignments as part of career development

International assignments are designed to give employees’ careers a boost. Traditionally, they focused on knowledge transfer across borders. But this can now occur in a digital environment. Although international assignments remain an attractive asset, how people approach them has changed. Employees want to further their personal and cultural enrichment, as well as enjoyment. They have a desire to learn from foreign cultures, enhance their educational level and professional development. Their quality of life is more important to them than workplace performance. This modern shift places greater emphasis on employer attractiveness and employee retention.

The Growing Importance of HR’s Role in International Assignments

For a successful company attachment, structured collaboration from all stakeholders is vital. This is where the HR department becomes increasingly important. It’s their job to ensure the entire expat management process occurs without issues. HR helps provide solutions to support employees and their families, allowing them to successfully complete their objectives during the assignment. For a comprehensive understanding of how HR managers can ensure a smooth transition for employees, ARC’s detailed guide offers a Guide for HR Managers and Employees .

7 essential HR responsibilities in managing international assignments

• Preparing Employees: HR plays a crucial role in properly preparing employees for their expat assignment. This can include simple things like information about the destination country, its culture, lifestyle and work ethic. And it can also include more detailed intercultural training.
• Visa and Work Permits: This involves the procurement of all necessary visas and work permits, not just for employees but also their families. Here, HR plays a vital role in minimising stress for the employee and ensuring a smooth transition to their international assignment.
• Legal Issues and Compliance: International assignments can involve complex legal issues. But by closely monitoring legal standards and staying up to date, the HR team works to make sure international assignments align with both global regulations and the company’s internal compliance policies.
• Housing and Relocation Support: Relocation is complicated and cause unnecessary stress for employees when trying to adjust to a new environment. Taking an active role in supporting employees in the search for suitable housing makes a huge difference to the entire international assignment experience.
• Health Insurance Support: Ensuring employees and their families receive comprehensive and correct health insurance coverage throughout the entirety of their international assignment relieves the burden of trying to navigate new healthcare systems.
• Payroll and Taxes: Handling payroll processes and taxation in accordance with local regulation to ensure accuracy and compliance at all times.
• Post-Assignment Support: Extending support beyond the international assignment by assisting in the repatriation and reintegration process supports employees and reduces challenges upon return.

Naturally, HR departments may not have enough resources to manage all these responsibilities. External service providers can take over some or all of these tasks, with support and coordination from HR. Companies can choose how to delegate these responsibilities but they are nonetheless highly important and should not be overlooked. In order to support and offer international corporate global mobility, companies must develop the structures to offer security to employees and help contribute to their personal learning and professional development.

Developing a Global Mindset

Companies that operate on a global scale face the challenge of trying to maximise opportunities but minimise risks with global mobility. Strategically planning for staffing needs, especially for highly skilled workers, gives them a competitive edge. H2: The Evolving Role of International HR Management International HR management is constantly changing and adapting. Managing a culturally diverse global workforce across countries and cultures is a significant challenge requiring innovative solutions. Developing a global mindset is essential here, as well as ensuring an understanding of leadership among executives.

Sensitivity to a Changing World is essential for HR strategies

As the world undergoes shifts from globalisation to nationalisation once again, public sentiment is changing. Companies are now re-evaluating their global activities. Transparency is vital as companies relocate more of their operations back to their home countries.

Adapting to Changing Needs in International Assignments

The need for and importance of international assignments is changing for global companies. HR professionals and expat management specialists must integrate into different value systems to create a common work environment that encourages effective communication and common goal achievement.

More than ever, global companies need a deep understanding of local business practices and must understand the needs of local customers and stakeholders. Developing a global mindset among leaders and employees is essential. International HR management must take on a new role with different strategies and solutions in order to guide organisations through the uncharted waters of globalisation. This changing and modern role around the global workforce should also be reflected in university and college curricula.

Visit our content page for more information on expat management, international assignments and HR solutions for the global workforce.

Author: Prof. Dr. Stefan Remhof is a Professor of International Management at IU International University and Managing Partner of the People Mobility Alliance. He has many years of professional and management experience in the fields of education management, politics, the consumer goods industry, and financial services.

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Effective communication strategies for international teams, a one-stop shop solution for global mobility services, global talent mobility trends: key insights from the decoding global talent 2024 report, the keys to effective expatriate selection: adaptability and competence, navigating global leadership: the essence of a global mindset, benefits of language proficiency in global talent acquisition, the transformation from hr tech to people tech, the evolution of the pma, the rise of workation as an employee benefit: key insights from leading german companies, you want to become a partner.

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Gareth Wadley

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International assignments: Key issues to consider

What legal issues do you need to consider when it comes to sending employees overseas?

The number of employees working abroad is increasing. As it becomes more common, some assume this will lead to greater standardisation, with template assignment letters the norm.

However, the legal, tax, pension and other variables involved in international assignments require a more bespoke approach, leaving little room for standard documentation. We outline some key issues to address below.

What is an assignment?

Also referred to as a secondment or transfer, an assignment might be internal (to a different role abroad with the same employer) or to an external employer. A key characteristic of an international assignment is that an employee from one legal entity and country ('home' country) temporarily performs services in another country ('host' country).

Potential assignment structures

There are a number of different ways in which assignments can be structured and documented. Which approach is appropriate will depend on a range of issues including employment law, tax, pension, social security and regulatory implications as well as the expectations of employees. Five frequently used assignment structures are:

• the employee continues to be employed solely by the home employer;
• the contract with the home employer is suspended and the employee enters into a local employment contract with the host employer for the assignment;
• the contract with the home employer is terminated with a promise of re-employment at the end of the assignment. In the meantime, the employee enters into a local employment contract with the host employer;
• the contract with the home employer is suspended and the employee enters into a contract with an international assignment company (IAC) within the employer group; or
• the contract with the home employer is suspended and the employee enters into a contract with both an IAC and the host country employer.

Which is best?

When deciding on the best structure for the circumstances, some questions to consider are:

• Do the host country’s laws require employment by a local entity, ruling out sole employment by the home employer?
• Where there is no contract of employment in place with the host employer, could local laws presume that the host is the de facto employer?
• If the home contract is “suspended”, is the home employer prepared to accept the legal uncertainty, in employment law terms, that this status brings?
• In a dual contract structure, who will bear the greatest risk of being liable for employment claims – host, home (or the IAC)?
• Will the employee accept the termination of his/her home contract?
• What is the impact on pension and benefit schemes, social security and tax?

Are there key terms in the home contract that require special consideration and protection, for example, restrictive covenants and confidentiality?

Which national law applies, when and to what? Which courts would have jurisdiction in the event of a dispute?

Who pays for, and manages, the employee during the assignment and will the employee return to the home country?

Looking forward

It is inevitable that documenting assignments will become a smoother process as employers become more familiar with the issues involved. However, the range of significant personal, legal and financial implications will mean that a degree of tailoring will always be necessary, in order to avoid negative repercussions.

Gareth Wadley is principal associate at Eversheds

Further reading

Paying your way: International tax and benefits

Companies expect to increase international assignments

How HR can improve LGBT+ employees' access to international assignments

How territorial jurisdiction works

How to get the most out of global mobility

Hot topic: Key issues for the new government

Three-quarters of Europeans would consider international roles

Rise of 'global nomads' causes problems for employee benefits strategy, Mercer study shows

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Managing International Assignments: Compensation Approaches

A new international assignment landscape is challenging traditional compensation approaches

For many years, expatriate compensation has been focused on a dilemma: having assignees on expensive home-based expatriate package versus localization - which is about replacing expatriates with locals or at least transition expatriates from an expatriate package to a local salary. Many predicted that the traditional home-based balance sheet approach would gradually disappear. The predictions of the demise of the typical expatriate approach have been greatly exaggerated. We are witnessing the emergence of new compensation challenges instead, due to the complexity of having to manage multiple types of assignments and assignee categories.

The home-based approach still retains its utility for certain kinds of moves (e.g. business-critical assignments or moves to hardship locations). Local strategies are becoming more common but, due to the difficulty of applying them consistently in all transfer destinations, they are used only in some cases (moves between similar countries, developmental moves) and take multiple forms as “purely local” or local-plus approaches. Additional approaches like international compensation structures have emerged to address issues of global nomads.

The challenge for HR managers is, therefore, not so much to find the best approach applicable for all assignments as to deal with individual assignment complexity, envisage greater mobility policy segmentation and, if relevant for the company, map each compensation approach to a particular assignment in a consistent way.

The increasingly complex international assignment landscape: One size does not fit all anymore

Expatriates vs. Locals

One size fits all?

Let's localize assignees as soon as possible!

Expatriates

Rise of the third-country nationals

Need to add a cost efficient category for junior employees/developmental moves?

Traditional expatriates

Global nomads

Permanent transfers

Employee-initiated moves

Local or local plus?

Foreigners hired locally

Commuters (cross-border or regional

Multiple types of short-term/project/rotational assignments

Increasing number of home locations

Reviewing international assignment approaches in three steps:

Step 1: Understand the options available

Approaches linked to the host country (local or local-plus)

While these approaches sound logical and natural (when relocating assignees to a new country, they will be paid according to the local salary structure in that destination country) their practical implementation is often tricky. Few employees accept a salary decrease when moving to a low-paying country. It is often difficult to reintegrate assignees relocated to a high-paying country into their original salary structure due to their inflated base salary.

The host approach was historically not the most common for assignees on long-term assignments. However, we have witnessed a growing interest in recent years in host-based approaches – either a host approach or local-plus approach (host salary plus selected benefits or premiums) – as companies are trying to contain costs and as significant salary increases in many emerging markets make host strategies more attractive.

Approaches linked to the home country ("balance sheets")

Home-based approaches have been traditionally the most commonly used to compensate international assignees. Assignees on a home-based approach retain their home-country salary and receive a suite of allowances and premiums designed to cover the costs linked to expatriation. The equalization logic behind the balance sheet approach (no gain/no loss) encourages mobility by removing obstacles. Retaining the home-country salary facilitates repatriation. The balance sheet approach can, however, be costly. Many companies either look for alternatives or try to reduce the benefits and premiums included for less significant moves.

Other Solutions

Hybrid approaches attempt to combine the advantages of the home and host-based approaches. These often mean running a balance sheet calculation and comparing the results with the host market salary to determine what solution would make sense. A hybrid approach can work well for a small assignee population but it can generate inconsistencies when companies expand globally, and the assignee population grows significantly.

Finally, some companies rely on international compensation structures that do not use the host and the home structures at all. These might utilize the average salary in a selected group of high-paying countries where the companies operate. This approach facilitates mobility for global nomads and highly mobile employees. It is, however, often very expensive and doesn’t solve all assignment-related issues (e.g., currency issues, pension, taxation). It is typically used in specific industry sectors (e.g., energy and engineering) and for a few assignees (top level managers and global nomads.)

Step 2: Assessing assignment patterNs and business objectives

Assignment patterns

Are assignees moving between countries with similar salary levels, which would make the use of local or local plus easier or, on the contrary, are expatriates sent to host countries with different pay and benefits structures (low-paying to high-paying, or high-paying to low-paying country moves)? Are moves for a fixed duration – e.g., assignments lasting one to five years – or will the company rely on permanent transfers with no guarantee of repatriation?

Assignee Population

Are assignees coming mainly from the headquarter countries (typical for early stages of globalization) or is the number of third-country nationals already significant? A growing number of multinational companies report that the number of moves between emerging markets (“lateral moves”) is catching up with or exceeding the number from the headquarters, prompting a review of compensation approaches.

Are some assignees becoming true global nomads who move from country to country without returning home during their career? Employees, and especially the younger generations, are becoming much more mobile, but only a minority would be global nomads. These assignees are usually top-level managers, experts with unique skills, or globally mobile talent sourced from small or emerging countries where the absence of career opportunities perspective would preclude repatriation perspectives.

Company's philosophy and sector

Some industry sectors like services and finances relocate employees between major regional and financial hubs which facilitate the use of local approach, whereas energy and engineering companies transferred employees to hardship locations are a key feature of the business – and requires comprehensive expatriation packages often based on balance sheets and international salary structures.

Step 3: Assess segmentation needs

An increasing number of companies rely on expatriate policy segmentation to reconcile the cost control versus international expansion dilemma – how to have the same number of assignments or more without increasing the budget dedicated to international mobility. Segmentation means reallocating part of the budget to business critical assignees and limits the costs of non-essential moves.

Some of the commonly used assignment categories include strategic moves (business-critical), developmental moves (which benefit both the company and the employee), and self-requested move (requested by the employee but not essential to the business).

A consistent policy segmentation approach allows HR teams to present business cases or assignment options to management and provide a clearer understanding of the cost and business implications of relocation for different assignees.

It could also help manage exceptions into a well-defined framework based on a consistent talent management approach, as opposed to ad hoc deals.

Example of segmented compensation approach: the four-box model

Want to learn more about Expatriate Compensation Approaches?

Make sure to download our free guide to understanding compensation strategies

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Related Articles

• Mercer and Crown partner for enhanced relocation data solutions and support
• Host-based compensation approaches revisited
• Why align employee remuneration and global mobility data
• Compensating mobile employees in a new era
• Addressing the impact of exchange rate fluctuations on cost of living allowances
• Managing hardship issues in a pandemic
• Managing cost-of-living issues in a pandemic
• COVID-19 update: foreign exchange volatility and COLA
• Delivering flexibility
• Talent mobility: compensation dilemmas
• Long-term assignments: tips to manage expatriate allowances
• Global Mobility and Changing Reward Priorities
• Local Approaches for Internationally Mobile Employees
• Two Minutes to Understand Local Plus Compensation Approaches
• Four Steps in Revisiting Mobile Talent Compensation
• Practical Mobility Management: Compensation Tips for Long-Term Assignments
• Exploring Alternatives: Local Plus and Permanent Moves
• New Trends Reshaping Expatriate Compensation and Mobility Policies
• Paying Expatriates: Understanding Split Pay
• International Pay Structures: Why Are Companies Considering Them?
• Changes to Cost of Living Allowances: A Closer Look
• What Is the Relationship Between Family Size and Mercer Spendable Income Amounts?
• Cost of Living Housing Exceptions - Policy Flaw or Necessity?
• Home-Host Housing Options: What Makes Sense and Why
• Effective Short-term Assignment Per Diem Calculations
• How Do “Expat Lite” Programs Manage to Cut Costs?
• Localization and Local Plus Packages: An Alternative Deal for Foreign Talent
• Local Plus: Focusing on the Practicalities of an Increasingly Popular Concept

Events and training Throughout the year, Mercer conducts a variety of free webinars and paid training sessions, online and in person, to help you keep pace with the evolution of international talent mobility and global workforce management.

Policy benchmarking Gain insights into your peers' international assignment programs and global mobility policies and practices. Participate in Mercer surveys to access unique benchmarking solutions.

Need help? Whether your organization is looking to create a global mobility program, enhance the one you currently have, or get answers to any issues or concern you're facing, we can help.

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14.3 International HRM Considerations

Learning objectives.

• Be able to explain how the selection process for an expatriate differs from a domestic process.
• Explain possible expatriate training topics and the importance of each.
• Identify the performance review and legal differences for international assignments.
• Explain the logistical considerations for expatriate assignments.

In an international environment, as long as proper research is performed, most HRM concepts can be applied. The important thing to consider is proper research and understanding of cultural, economic, and legal differences between countries. This section will provide an overview of some specific considerations for an international business, keeping in mind that with awareness, any HRM concept can be applied to the international environment. In addition, it is important to mention again that host-country offices should be in constant communication with home-country offices to ensure policies and practices are aligned with the organization.

Recruitment and Selection

As we discussed in Section 14.2 “Staffing Internationally” , understanding which staffing strategy to use is the first aspect of hiring the right person for the overseas assignment. The ideal candidate for an overseas assignment normally has the following characteristics:

• Managerial competence: technical skills, leadership skills, knowledge specific to the company operations.
• Training: The candidate either has or is willing to be trained on the language and culture of the host country.
• Adaptability: The ability to deal with new, uncomfortable, or unfamiliar situations and the ability to adjust to the culture in which the candidate will be assigned.

As we discussed earlier, when selecting an expatriate or a third-country national for the job, assuring that the candidate has the job factors, relational dimensions, motivational state, family situation, and language skills (or can learn) is a key consideration in hiring the right person. Some of the costs associated with failure of an expatriate or third-country national might include the following:

• Damage to host-country relationships
• Motivation of host-country staff
• Costs associated with recruitment and relocation
• Possible loss of that employee once he or she returns
• Missed opportunities to further develop the market

Because success on an overseas assignment has such complex factors, the selection process for this individual should be different from the selection process when hiring domestically. The process should start with the job analysis, as we discussed in Chapter 4 “Recruitment” . The job analysis and job description should be different for the overseas assignment, since we know that certain competencies (besides technical ones) are important for success. Most of those competencies have little to do with the person’s ability to do the job but are related to his or her ability to do the job in a new cultural setting. These additional competencies (besides the skills needed for the job) may be considered:

• Experience working internationally
• Extroverted
• Stress tolerance
• Language skills
• Cultural experiences

Once the key success factors are determined, many of which can be based on previous overseas assignments successes, we can begin to develop a pool of internal candidates who possess the additional competencies needed for a successful overseas assignment.

To develop the pool, career development questions on the performance review can be asked to determine the employee’s interest in an overseas assignment. Interest is an important factor; otherwise, the chance of success is low. If there is interest, this person can be recorded as a possible applicant. An easy way to keep track of interested people is to keep a spreadsheet of interested parties, skills, languages spoken, cultural experiences, abilities, and how the candidates meet the competencies you have already developed.

Once an overseas assignment is open, you can view the pool of interested parties and choose the ones to interview who meet the competencies required for the particular assignment.

Figure 14.3 Sample Selection Process for Overseas Assignments

Much of the training may include cultural components, which were cited by 73 percent of successful expatriates as key ingredients to success (The Economist Intelligence Unit, 2010).

Training isn’t always easy, though. The goal is not to help someone learn a language or cultural traditions but to ensure they are immersed in the sociocultural aspects of the new culture they are living in. Roger N. Blakeney (Blakeney, 2006), an international business researcher, identifies two main pathways to adapting to a new culture. First, people adjust quickly from the psychological perspective but not the social one. Blakeney argues that adjusting solely from the psychological perspective does not make an effective expatriate. Although it may take more time to adjust, he says that to be fully immersed and to fully understand and be productive in a culture, the expatriate must also have sociocultural adaption. In other words, someone who can adjust from a sociocultural perspective ends up performing better because he or she has a deeper level of understanding of the culture. Determining whether your candidate can gain this deeper level would figure in your selection process.

Figure 14.4 Blakeney’s Model of Psychological versus Sociocultural Adaption

Source: Roger Blakeney, “Psychological Adjustment and Sociocultural Adaptation: Coping on International Assignments” (paper, Annual Meeting of Academy of Management, Atlanta, GA, 2006).

One of the key decisions in any global organization is whether training should be performed in-house or an outside company should be hired to provide the training. For example, Communicaid offers online and on-site training on a variety of topics listed. Whether in-house or external training is performed, there are five main components of training someone for an overseas assignment:

• Goal setting
• Managing family and stress
• Repatriation

Training on languages is a basic yet necessary factor to the success of the assignment. Although to many, English is the international business language, we shouldn’t discount the ability to speak the language of the country in which one is living. Consider Japan’s largest online retailer, Rakuten, Inc. It mandated that English will be the standard language by March 2012 (Thregold, 2010). Other employers, such as Nissan and Sony, have made similar mandates or have already implemented an English-only policy. Despite this, a large percentage of your employee’s time will be spent outside work, where mastery of the language is important to enjoy living in another country. In addition, being able to discuss and negotiate in the mother tongue of the country can give your employee greater advantages when working on an overseas assignment. Part of language, as we discussed in Chapter 9, isn’t only about what you say but also includes all the nonverbal aspects of language. Consider the following examples:

• In the United States, we place our palm upward and use one finger to call someone over. In Malaysia, this is only used for calling animals. In much of Europe, calling someone over is done with palm down, making a scratching motion with the fingers (as opposed to one finger in the United States). In Columbia, soft handclaps are used.
• In many business situations in the United States, it is common to cross your legs, pointing the soles of your shoes to someone. In Southeast Asia, this is an insult since the feet are the dirtiest and lowest part of the body.
• Spatial differences are an aspect of nonverbal language as well. In the United States, we tend to stand thirty-six inches (an arm length) from people, but in Chile, for example, the space is much smaller.
• Proper greetings of business colleagues differ from country to country.
• The amount of eye contact varies. For example, in the United States, it is normal to make constant eye contact with the person you are speaking with, but in Japan it would be rude to make constant eye contact with someone with more age or seniority.

The goal of cultural training is to train employees what the “norms” are in a particular culture. Many of these norms come from history, past experience, and values. Cultural training can include any of the following topics:

• Management styles
• Logistics aspects, such as transportation and currency

Cultural training is important. Although cultural implications are not often discussed openly, not understanding the culture can harm the success of a manager when on overseas assignment. For example, when Revlon expanded its business into Brazil, one of the first products it marketed was a Camellia flower scented perfume. What the expatriate managers didn’t realize is that the Camellia flower is used for funerals, so of course, the product failed in that country (Roy, 1998). Cultural implications, such as management style, are not always so obvious. Consider the US manager who went to Mexico to manage a production line. He applied the same management style that worked well in America, asking a lot of questions and opinions of employees. When employees started to quit, he found out later that employees expect managers to be the authority figure, and when the manager asked questions, they assumed he didn’t know what he was doing.

Training on the goals and expectations for the expatriate worker is important. Since most individuals take an overseas assignment to boost their careers, having clear expectations and understanding of what they are expected to accomplish sets the expatriate up for success.

Because moving to a new place, especially a new country, is stressful, it is important to train the employee on managing stress, homesickness, culture shock, and likely a larger workload than the employee may have had at home. Some stress results from insecurity and homesickness. It is important to note that much of this stress occurs on the family as well. The expatriate may be performing and adjusting well, but if the family isn’t, this can cause greater stress on the employee, resulting in a failed assignment. Four stages of expatriate stress identified in the Selyes model, the General Adaption Syndrome, are shown in Figure 14.5 “General Adaption Syndrome to Explain Expatriate Stress” . The success of overseas employees depends greatly on their ability to adjust, and training employees on the stages of adjustment they will feel may help ease this problem.

Cultural Differences

(click to see video)

These two videos discuss practical implications of cultural differences.

Figure 14.5 General Adaption Syndrome to Explain Expatriate Stress

Source: Bala Koteswari and Mousumi Bhattacharya, “Managing Expatriate Stress,” Delhi Business Review 8, no. 1 (2007): 89–98.

Spouses and children of the employee may also experience much of the stress the expatriate feels. Children’s attendance at new schools and lack of social networks, as well as possible sacrifice of a spouse’s career goal, can negatively impact the assignment. Many companies offer training not only for the employee but for the entire family when engaging in an overseas assignment. For example, global technology and manufacturing company Honeywell offers employees and their families a two-day cultural orientation on the region they will be living in (Klaff, 2002). Some of the reasons for lack of adjustment by family members might include the following:

• Language issues
• Social issues
• Medical services

The ability of the organization to meet these family needs makes for a more successful assignment. For example, development of an overseas network to provide social outlets, activities, schooling and housing options, assignment of mentors to the spouse, and other methods can help ease the transition.

Finally, repatriation is the process of helping employees make the transition to their home country. Many employees experience reverse culture shock upon returning home, which is a psychological phenomenon that can lead to feelings of fear, helplessness, irritability, and disorientation. All these factors can cause employees to leave the organization soon after returning from an assignment, and to take their knowledge with them. One problem with repatriation is that the expatriate and family have assumed things stayed the same at home, while in fact friends may have moved, friends changed, or new managers may have been hired along with new employees. Although the manager may be on the same level as other managers when he or she returns, the manager may have less informal authority and clout than managers who have been working in the particular office for a period of time. An effective repatriation program can cost $3,500 to $10,000 per family, but the investment is worth it given the critical skills the managers will have gained and can share with the organization. In fact, many expatriates fill leadership positions within organizations, leveraging the skills they gained overseas. One such example is FedEx president and CEO David Bronczek and executive vice president Michael Drucker. Tom Mullady, the manager of international compensation planning at FedEx, makes the case for a good repatriation program when he says, “As we become more and more global, it shows that experience overseas is leveraged back home” (Klaff, 2002).

Repatriation planning should happen before the employee leaves on assignment and should be a continuous process throughout the assignment and upon return. The process can include the following:

• Training and counseling on overseas assignment before leaving
• Clear understanding of goals before leaving, so the expatriate can have a clear sense as to what new skills and knowledge he or she will bring back home
• Job guarantee upon return (Deloitte and Touche, for example, discusses which job each of the two hundred expats will take after returning, before the person leaves, and offers a written letter of commitment (Klaff, 2002).)
• Assigning the expatriate a mentor, ideally a former expatriate
• Keeping communication from home open, such as company newsletters and announcements
• Free return trips home to stay in touch with friends and family
• Counseling (at Honeywell, employees and families go through a repatriation program within six months of returning (Klaff, 2002).)
• Sponsoring brown bag lunches where the expatriate can discuss what he or she learned while overseas
• Trying to place expatriates in positions where they can conduct business with employees and clients from where they lived

It is also important to note that offering an employee an international assignment can help develop that person’s understanding of the business, management style, and other business-related development. Working overseas can be a crucial component to succession planning. It can also be a morale booster for other employees, who see that the chosen expatriate is further able to develop his or her career within the organization.

While the focus of this section has been on expatriate assignments, the same information on training is true for third-country nationals.

If it is decided that host-country nationals will be hired, different training considerations might occur. For example, will they spend some time at your domestic corporate headquarters to learn the business, then apply what they learned when they go home? Or, does it make more sense to send a domestic manager overseas to train the host-country manager and staff? Training will obviously vary based on the type of business and the country, and it may make sense to gain input from host-country managers as opposed to developing training on your own. As we have already discussed in this chapter, an understanding of the cultural components is the first step to developing training that can be utilized in any country.

Compensation and Rewards

There are a few options when choosing compensation for a global business. The first option is to maintain companywide pay scales and policies, so for example, all sales staff are paid the same no matter what country they are in. This can reduce inequalities and simplify recording keeping, but it does not address some key issues. First, this compensation policy does not address that it can be much more expensive to live in one place versus another. A salesperson working in Japan has much higher living expenses than a salesperson working in Peru, for example. As a result, the majority of organizations thus choose to use a pay banding system based on regions, such as South America, Europe, and North America. This is called a localized compensation strategy . Microsoft and Kraft Foods both use this approach. This method provides the best balance of cost-of-living considerations.

However, regional pay banding is not necessarily the ideal solution if the goal is to motivate expatriates to move. For example, if the employee has been asked to move from Japan to Peru and the salary is different, by half, for example, there is little motivation for that employee to want to take an assignment in Peru, thus limiting the potential benefits of mobility for employees and for the company.

One possible option is to pay a similar base salary companywide or regionwide and offer expatriates an allowance based on specific market conditions in each country (Carland, 1993). This is called the balance sheet approach . With this compensation approach, the idea is that the expatriate should have the same standard of living that he or she would have had at home. Four groups of expenses are looked at in this approach:

• Income taxes
• Goods and services
• Base salary
• Overseas premium

The HR professional would estimate these expenses within the home country and costs for the same items in the host country. The employer then pays differences. In addition, the base salary will normally be in the same range as the home-country salary, and an overseas premium might be paid owing to the challenge of an overseas assignment. An overseas premium is an additional bonus for agreeing to take an overseas assignment. There are many companies specializing in cost-of-living data, such as Mercer Reports. It provides cost-of-living information at a cost of $600 per year. Table 14.6 “The Balance Sheet Approach to Compensation” shows a hypothetical example of how the balance sheet approach would work.

Table 14.6 The Balance Sheet Approach to Compensation

Other compensation issues, which will vary greatly from country to country, might include the following:

• The cost of benefits in another country. Many countries offer universal health care (offset by higher taxes), and therefore the employee would have health benefits covered while working and paying taxes in that country. Canada, Finland, and Japan are examples of countries that have this type of coverage. In countries such as Singapore, all residents receive a catastrophic policy from the government, but they need to purchase additional insurance for routine care (Countries with Universal Healthcare, 2011). A number of organizations offer health care for expatriates relocating to another country in which health care is not already provided.
• Legally mandated (or culturally accepted) amount of vacation days. For example, in Australia twenty paid vacation days are required, ten in Canada, thirty in Finland, and five in the Philippines. The average number of US worker vacation days is fifteen, although the number of days is not federally mandated by the government, as with the other examples (Sahadi, 2007).
• Legal requirements of profit sharing. For example, in France, the government heavily regulates profit sharing programs (Wilke, et. al., 2007).
• Pay system that works with the country culture, such as pay systems based on seniority. For example, Chinese culture focuses heavily on seniority, and pay scales should be developed according to seniority. In Figure 14.6 “Hourly World Compensation Comparisons for Manufacturing Jobs” , examples of hourly compensation for manufacturing workers are compared.
• Thirteenth month (bonus) structures and expected (sometimes mandated) annual lump-sum payments. Compensation issues are a major consideration in motivating overseas employees. A systematic system should be in place to ensure fairness in compensation for all expatriates.

Figure 14.6 Hourly World Compensation Comparisons for Manufacturing Jobs

Source: Bureau of Labor Statistics, Division of International Labor Comparisons, International Comparisons of Hourly Compensation costs in Manufacturing, 2009, http://www.bls.gov/news.release/ichcc.toc.htm (accessed September 16, 2011).

Performance Evaluations

The challenge in overseas performance evaluations is determining who should rate the performance of the expatriate. While it might make sense to have the host-country employees and managers rate the expatriate, cultural differences may make this process ineffective. Cultural challenges may make the host country rate the expatriate more harshly, or in some cases, such as Indonesia, harmony is more important than productivity, so it may be likely an Indonesia employee or manager rates the expatriate higher, to keep harmony in the workplace (Whitfield, 2011).

If the home-country manager rates the performance of the expatriate, he or she may not have a clear indication of the performance, since the manager and expatriate do not work together on a day-to-day basis. A study performed by Gregersen, Hite, and Black suggests that a balanced set of raters from host and home countries and more frequent appraisals relate positively to the accuracy of performance evaluations (Gregersen, et. al., 1996). They also suggest that the use of a standardized form relates negatively to perceived accuracy. Carrie Shearer, an international HR expert, concurs by stating that the standardized form, if used, should also include special aspects for the expatriate manager, such as how well the expatriate fits in with the culture and adaptation ability (Shearer, 2004).

Besides determining who should rate the expatriate’s performance, the HR professional should determine the criteria for evaluating the expatriate. Since it is likely the expatriate’s job will be different overseas, the previous criteria used may not be helpful in the evaluation process. The criteria used to rate the performance should be determined ahead of time, before the expatriate leaves on assignment. This is part of the training process we discussed earlier. Having a clear picture of the rating criteria for an overseas assignment makes it both useful for the development of the employee and for the organization as a tool. A performance appraisal also offers a good opportunity for the organization to obtain feedback about how well the assignment is going and to determine whether enough support is being provided to the expatriate.

The International Labor Environment

As we have already alluded to in this chapter, understanding of laws and how they relate to host-country employees and expatriates can vary from country to country. Because of this, individual research on laws in the specific countries is necessary to ensure adherence:

• Worker safety laws
• Worker compensation laws
• Safety requirements
• Working age restrictions
• Maternity/paternity leaves
• Unionization laws
• Vacation time requirements
• Average work week hours
• Privacy laws
• Disability laws
• Multiculturalism and diverse workplace, antidiscrimination law

As you can tell from this list, the considerable HRM factors when doing business overseas should be thoroughly researched.

One important factor worth mentioning here is labor unions. As you remember from Chapter 12 “Working with Labor Unions” , labor unions have declined in membership in the United States. Collective bargaining is the process of developing an employment contract between a union and management within an organization. The process of collective bargaining can range from little government involvement to extreme government involvement as in France, for example, where some of the labor unions are closely tied with political parties in the country.

Some countries, such as Germany, engage in codetermination , mandated by the government. Codetermination is the practice of company shareholders’ and employees’ being represented in equal numbers on the boards of organizations, for organizations with five hundred or more employees. The advantage of this system is the sharing of power throughout all levels of the organization; however, some critics feel it is not the place of government to tell companies how their corporation should be run. The goal of such a mandate is to reduce labor conflict issues and increase bargaining power of workers.

Taxation of expatriates is an important aspect of international HRM. Of course, taxes are different in every country, and it is up to the HR professional to know how taxes will affect the compensation of the expatriate. The United States has income tax treaties with forty-two countries, meaning taxing authorities of treaty countries can share information (such as income and foreign taxes paid) on residents living in other countries. US citizens must file a tax return, even if they have not lived in the United States during the tax year. US taxpayers claim over $90 billion in foreign tax credits on a yearly basis (Internal Revenue Service, 2011). Foreign tax credits allow expatriates working abroad to claim taxes paid overseas on their US tax forms, reducing or eliminating double taxation. Many organizations with expatriate workers choose to enlist the help of tax accountants for their workers to ensure workers are paying the correct amount of taxes both abroad and in the United States.

Table 14.7 Examples of HRM-Related Law Differences between the United States and China

Source: Harris and Moure, pllc, “China Employment Contracts, Ten Things to Consider,” China Law Blog , http://www.chinalawblog.com/2010/04/china_employment_contracts_ten.html (accessed August 13, 2011) and Cindy Zhang, “Employment Law in China,” June 21, 2011, http://www.attorneycz.com/ (accessed August 13, 2011).

Logistics of International Assignments

As you learned earlier, providing training for the expatriate is an important part of a successful assignment. However, many of the day-to-day aspects of living are important, too.

One of the most important logistical aspects is to make sure the employee can legally work in the country where you will be sending him or her, and ensuring his or her family has appropriate documentation as well. A visa is permission from the host country to visit, live, or work in that country. Obtaining visas is normally the job of an HR professional. For example, the US Department of State and the majority of countries require that all US citizens have a valid passport to travel to a foreign country. This is the first step to ensuring your host-country national or third-country national can travel and work in that country.

Next, understanding the different types of visas is a component to this process. For example, the United States offers a Visa Waiver Program (VWP) that allows some nationals of thirty-six participating countries to travel to the United States for stays of less than ninety days. Iceland, Singapore, and France are examples of countries that participate in this program. For most host-national assignments, however, this type of visa may not be long enough, which then requires research of the individual country. It is important to mention that most countries have several types of visas, such as the following:

• Visas for crew members working on ships or airlines
• Tourist visas
• Student visas
• Employment visas for long-term employment at a foreign company
• Business visas

The visa process and time line can vary greatly depending on the country for which the visa is required. For example, obtaining a visa to work in China may take six months or longer. The best place to research this topic is on the country’s embassy website.

Besides ensuring the expatriate can legally work in the country, other considerations are worth mentioning as well:

• Housing. Where will I live is one of the most important questions that an expatriate may ask. The HR professional can help this process by outsourcing a leasing or rental company in the city where the expatriate will live to find a rental that meets the expectations of the expatriate. Choosing a place to live ahead of time can reduce stress (one of the causes of failure for assignments) for the expatriate and his or her family. Allowances may be made for housing costs, as discussed in the compensation section.
• Moving belongings. Determination of how belongings left behind will be stored at home or if those items will be brought to the host country is another logistical consideration. If items will be brought, beyond what can be carried in a suitcase, the HR professional may want to consider hiring a moving logistics company that specializes in expatriate moves to help with this process.
• The possibility of return trips home. As part of the initial discussion, the option of offering return trips home can make repatriation and performance reviews with home-country managers easier. This also gives the expatriate and his or her family the opportunity to visit with family and friends, reducing reverse culture shock upon return.
• Schooling. Some organizations may want to provide information on the schooling system to the expatriate, if he or she has children. Schools begin at different times of the year, and this information can make the registration process for school easier on the family.
• Spousal job. We know already from earlier in this chapter that one of the biggest challenges facing expatriates (and reasons for failure) is unhappiness of the spouse. He or she may have had a career at home and given that up while the spouse takes an assignment. HR professionals might consider offering job search services as part of the allowance discussed earlier in this chapter. Lockheed Martin, for example, offers job search services to spouses moving overseas (Minehan, 2011).

In any situation, support from the HR professional will help make the assignment a success, which shows that HRM practices should be aligned with company goals.

How Would You Handle This?

Your manager has just notified you that one of your marketing managers has taken an assignment in China to work for one year. You tell your manager you will begin the visa process for employment. She disagrees and tells you it will be quicker to just get a tourist visa. You mention this is illegal and could get the employee and company in trouble, but she insists on your getting a tourist visa so the employee can leave within the month. How would you handle this?

Key Takeaways

• Personality traits are a key component to determining whether someone is a good fit for an overseas assignment. Since 73 percent of overseas assignments fail, ensuring the right match up front is important.
• The ideal expatriate is able to deal with change, is flexible, and has the support of his or her family. Ideal expatriates are also organized, take risks, and are good at asking for help.
• The adjustment period an expatriate goes through depends on his or her initial preparation. Blakeney said there are two levels of adjustment: psychological adjustment and sociocultural adjustment. Although the psychological may take less time, it is the sociocultural adjustment that will allow the assignment to be successful.
• Training is a key component in the HRM global plan, whether expatriates or host-country nationals are to be hired. Both will require a different type of training. Training can reduce culture shock and stress.
• Consideration of the expatriate’s family and their ability to adjust can make a more successful overseas assignment
• Compensation is another consideration of a global business. The balance sheet approach pays the expatriate extra allowances, such as living expenses, for taking an international assignment.
• Other considerations such as vacation days, health-care benefits, and profit-sharing programs are important as well.
• Laws of each country should be carefully evaluated from an HRM strategic perspective. Laws relating to disabilities, pregnancy, and safety, for example, should be understood before doing business overseas.
• Labor unions have different levels of involvement in different parts of the world. For example, Germany has codetermination , a policy that requires companies to have employees sit on various boards.
• The United States has treaties with forty-two countries to share information about expatriates. The United States offers foreign tax credits to help expatriates avoid double taxation. However, US citizens must file taxes every year, even if they have not lived in the United States during that year.
• Logistical help can be important to ensuring the success of an overseas assignment. Help with finding a place to live, finding a job for a spouse, and moving can make the difference between a successful assignment and an unsuccessful one.
• The Visa Waiver Program (VWP) is a program in which nationals of thirty-six countries can enter the United States for up to a ninety-day period. This type of visa may not work well for expatriates, so it is important to research the type of visa needed from a particular country by using that country’s embassy website.
• Research the country of your choice. Discuss at least five of the aspects you should know as an HRM professional about doing business in that country.

Blakeney, R., “Psychological Adjustment and Sociocultural Adaptation: Coping on International Assignments” (paper, Annual Meeting of Academy of Management, Atlanta, GA, 2006).

Cartland, J., “Reward Policies in a Global Corporation,” Business Quarterly , Autumn 1993, 93–96.

Countries with Universal Healthcare (no date), accessed August 11, 2011, http://truecostblog.com/2009/08/09/countries-with-universal-healthcare-by-date/ .

Economist Intelligence Unit, The, Up or Out: Next Moves for the Modern Expatriate , 2010, accessed April 28, 2011, http://graphics.eiu.com/upload/eb/LON_PL_Regus_WEB2.pdf .

Gregersen, H., Julie Hite, and Steward Black, “Expatriate Performance Appraisal in US Multinational Firms,” Journal of International Business Studies 27, no. 4 (1996): 711–38.

Internal Revenue Service, “Foreign Tax Credit,” accessed August 13, 2011, http://www.irs.gov/businesses/article/0,,id=183263,00.html .

Klaff, L. G., “The Right Way to Bring Expats Home,” BNET , July 2002, accessed August 12, 2011, http://findarticles.com/p/articles/mi_m0FXS/is_7_81/ai_89269493/ .

Minehan, M., “Six Job Search Tips for Expatriate Spouses,” n.d., Expatica, accessed August 12, 2011, http://www.expatica.com/nl/essentials_moving_to/essentials/six-job-search-tips-for-expatriate-spouses-327_9125.html .

Roy, S., “Brand Failures: A Consumer Perspective to Formulate a MNC Entry Strategy” (postgraduate diploma, XLRI School of Business and Human Resources, 1998), accessed August 12, 2011, http://sudiptaroy.tripod.com/dissfin.pdf .

Sahadi, J., “Who Gets the Most (and Least) Vacation” CNN Money , June 14, 2007, accessed August 11, 2011, http://money.cnn.com/2007/06/12/pf/vacation_days_worldwide/ .

Shearer, C., “Expat Performance Appraisal: A Two Tier Process?” October 8, 2004, Expatrica.com, accessed August 12, 2011, http://www.expatica.com/hr/story/expat-performance-appraisal-a-two-tier-process-10529.html .

Thredgold, J., “English Is Increasingly the International Language of Business,” Deseret News , December 14, 2010, accessed August 11, 2011, http://www.deseretnews.com/article/700091766/English-is-increasingly-the-international-language-of-business.html .

Whitfield, G., “Do as I Say, Not as I Do: Annual Performance Appraisal and Evaluation in Indonesia” n.d., Living in Indonesia, accessed August 11, 2011, http://www.expat.or.id/business/annualperformanceappraisal.html .

Wilke, Maack, und Partner, “Profit-Sharing,” Country Reports on Financial Participation in Europe, 2007, worker-participation.eu, 2007, accessed August 12, 2011, http://www.worker-participation.eu/National-Industrial-Relations/Across-Europe/Financial-Participation/Profit-sharing .

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Book Title : International HRM and International Assignments

Editors : M. Morley, N. Heraty, D. Collings

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What is International Human Resource Management (IHRM)? Approaches, Dimensions, Activities, Challenges

• Post last modified: 5 August 2024
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• Post category: Human Resource Management / Human Resource

What is International Human Resource Management (IHRM)?

International Human Resource Management (IHRM) is a field of study that focuses on the management of human resources in multinational corporations and other global organizations. It involves the application of HRM principles and practices to managing people in different cultural, institutional, and legal contexts across national borders.

Table of Content

• 1 What is International Human Resource Management (IHRM)?
• 2 International Human Resource Management (IHRM) Definition
• 3.1 Ethnocentric Approach
• 3.2 Poly-centric Approach
• 3.3 Regino-Centric Approach
• 3.4 Geo Centric Approach
• 4 Dimensions of IHRM
• 5.1 Variation in country environment
• 5.2 Perception of HR
• 5.3 Attitudes and Actions of Headquarters towards HR
• 5.4 Resistance to Change
• 5.5 Balance
• 6.1 HR Planning
• 6.2 International Recruitment and Selection Policy
• 6.3 Training and Development
• 6.4 Expatriate Remuneration
• 6.5 Performance Appraisal of an Expatriate
• 6.6 Repatriation
• 7 Cross Cultural Theories
• 8 Role of HR in Maintaining Ethical Policies & Behaviour
• 9 Code to Guide HR Professionals
• 10 Key Terms
• 11 Reference

International businesses are required to recruit, train, motivate, nurture and retain apart from effectively utilizing their services at all levels of functioning be its corporate office, at the foreign production units plants, therefore, the process of procuring, allocating and effectively utilizing human resources in international business is called International Human Resource Management .

International HRM is concerned with identifying and understanding how the MNC’s manage their geographically dispersed worked force in order to leverage their HR resources for obtaining local as well as a global competitive advantage.

International Human Resource Management has a wider concept and scope of operation and working as compared to domestic Human Resource Management. There are different approaches to International Human Resource Management.

International Human Resource Management (IHRM) Definition

International Human Resource Management (IHRM) is the process of procuring, allocating, and effectively utilizing human resources in a multinational corporation, while balancing the integration and differentiation of HR activities in foreign locations. – Dowling, Festing, and Engle (2017)

International Human Resource Management (IHRM) is the process of procuring, allocating, and effectively utilizing human resources in a global organization. – Society for Human Resource Management (SHRM)

IHRM is the process of managing people across international boundaries, and includes the full range of activities involved in the recruitment, selection, development, and retention of employees in a global environment. – International Labour Organization (ILO)

Approaches of IHRM

Fundamentally there have been different approaches to International Human Resource Management .

Approaches of IHRM are:

Ethnocentric Approach

Poly-centric approach.

• Regiono- centric Approach
• Geo-Centric Approach

In Ethnocentric approach , management believes that the approach of the parent company in managing things is the tried and tested practice and it should be followed in all units of the organization in different countries. This leads to the adoption of all systems, procedures, policies of the parent company from the parent country in all other centres of activities.

This may lead to conflicts in certain circumstances. When a company operates in different countries, the expectations and norms may vary from country to country.

Industrial unrest due to this mismatch of expectations and believes is quite common. In India agitations in Maruti, Honda etc in the recent past were examples of this approach.

In ethnocentric approach, most of the major decision making is centralised with the parent company. This is more in the case of management of Human Resources. The top management in host countries is also posted from the parent company so that the culture of the unit remains in line with the parent country.

The approach and practices of the parent country are not necessarily considered the best. There has to be a fit between the management approach and the culture of the host country. Therefore feelings, attitudes, norms, beliefs and societal acceptance of right and wrong of the host country should have an influence on the practices of parent country.

This led to gradual modification in Ethnocentric approach. At present time Ethnocentric organisations are very few and are gradually moving towards Poly-centric or Geo-Centric approach of management.

In Poly-centric approach or philosophy, MNCs realize the importance of the host country and its governing laws. Further, they are aware that the National culture plays an important role in all aspects of management. Hence it is prudent to follow the market needs of the host country and frame a strategy which can give the best results.

To implement such a strategy they need local knowledge and indepth understanding of the way of working in that country. They have to align their management style to suit the local culture and aspirations of the people in that country.

In this approach, organisations have local people are recruited at senior positions. There are very few Parent country nationals. The decision making is highly decentralised and local management takes all decisions. Apart from broad policies which are framed by the corporate at Parent country, all operational policies are decided at a local level.

In case of Management of Human Resources as well, the policies including compensation are decided locally. The guiding principles of culture like Values are driven from the corporate office in the Parent country, generally, all other policies are framed locally keeping in view the practices in that country.

Since in this approach there are very few ex-pacts in local unit or subsidiary, the cost of operation is limited. Such companies are able to compete on cost basis with the local companies as well. Otherwise, most of the companies create their market through a Differentiation strategy rather than cost focussed strategy.

Further these units become highly localised and empowered hence their connect with the corporate becomes loose over the years. At time they come out of the parent company and become purely locally owned subsidiary.

Regino-Centric Approach

In Regino-Centric approach , MNCs believe that though there is a difference in various aspects of culture from country to country yet there are similarities in a particular region.

For example, there may be differences in the cultures of India, Sri Lanka, Japan yet there are lot of similarities hence it may be appropriate that one Region is managed by one regional office. Thus MNCs set up regional offices to manage entire region consisting of all countries in this region.

They may classify Regions according to their business and presence in particular regions. Some companies may have Asia as a region while some other MNC may have the Asia Pacific as one region. There are various MNCs who now prefer to have a Regional Office of the Asia Pacific region or Asia region in India.

Such organisations are strong in innovation and creativity due to diversity in their workforce. Simultaneously such MNCs are able to channelise innovative practices across the globe in a significant manner. Inter region transfers and managing expatriate becomes the quite critical activity of Human Resource Management.

Geo Centric Approach

Geocentric approach of management believes in using the best strength wherever it is available within the organization without any consideration of geographical region or country.

Such organisations are very matured in their management structure, processes and systems. These organisations create a culture that has right proportion of flexibility as well as defining culture and boundaries which make them unique and highly effective.

The decision making processes in such organisations give weightage to local issues and concerns without deviating from the core value system of the organisation. Managing such an organisation need quick decision making and continuous monitoring of all functions across the globe. The IT-enabled integrated systems like ERPs have made it possible to achieve the above-stated objectives in a very smooth manner.

In these companies mobility of talent is frequent. Top positions are manned by people from any country. Professionalism is the diving force and equal opportunity irrespective of race, cast, religion, nationality, gender etc is one of their strong core values.

Geocentric approach is highly professional hence need very competent leaders at the top. Their training and coaching is given high importance by such companies. Generally, such companies believe and follow ‘homegrown talent strategy. They spend huge efforts in developing talent which is Culture fit.

Dimensions of IHRM

Various dimensions of IHRM are best conceptualized by Morgan. He considers International Human Resource Management as an interplay of various dimensions that impact management of Human Resources in international businesses.

These dimensions not only affect International Human Resources Management individually but have interplay and influence IHRM functioning. According to P.V. Morgan, IHRM is the interplay amongst 3 dimensions.

Dimensions of IHRM are:

• HR Activities for recruitment, selection, training, development, compensation, performance management, employee relations etc.
• Types of employees
• Types of Countries
• Parent Country nationals : Employees from the parent headquarters assigned to the venture, usually in the upper management positions.
• Host country nationals : Employees directly recruited and employed by the venture and are nationals of the host country. Generally these employees are employed at lower levels but gradually these employees are given responsibilities and senior management levels.
• Third country nationals : Employees who are nationals of neither the parent country nor the host country.

Challenges in IHRM

There are a number of unique problems that global companies face while trying to implement consistent practices across their global HR networks. These problems act as barriers to effective International Human Resource Management.

Challenges in international human resource management are:

• Variation in-country environment

Perception of HR

• Attitudes and actions of headquarters towards HR
• Resistance to change

Variation in country environment

PESTEL (Political, Economic, Social, Technological, Environmental and Social factors of countries varies. An HR practice which works in one country might not work in the same manner in another country. Fluctuations in currency, government policies and regulations, compensation expectations etc are just a few examples of the local variations s global HR professional faces.

The perceived value of HR is another global challenge in HRM. In one country, HR in a company might be viewed as a true business partner, working with high-level managers on critical assignments. In another country within the same company, the same HR might just be viewed as a transactional personnel department that handles administrative work.

Attitudes and Actions of Headquarters towards HR

the perception sent from the headquarters towards HR also helps determine how HR is viewed locally. The position of the corporate chief HR officer also sends a strong signal to local units on the importance of the HR function.

Resistance to Change

The rate of change is enormous in multinational companies. Hence, a major challenge facing global HR practitioners is that different locations have their own way of doing things and resist to change.

International companies must strive to achieve the appropriate balance between global and local HR systems and practices. It is such firms that put into application the best practices and create a benchmark for others to follow.

Some of the best practices are:

• Establishing common systems in all locations, including accounting, distribution, marketing and management information systems.
• Creating an organizational mission based on inputs from individuals or teams in all locations
• Providing management education in all location about how the company wants to conduct business
• Creating a written manual about how parent organizations will institute and manage unique corporate identity
• Communicating to all locations that the parent organization is attempting to create common corporate culture with a shared mission, values, goals and more.

There is cultural diversity in all countries and this affects the functioning of the organization in that particular country.

IHRM Activities

Hr planning, international recruitment and selection policy, training and development, expatriate remuneration, performance appraisal of an expatriate, repatriation.

Human resource planning is very complex and difficult at the international level. The planning is not confined to one country but extends to various other countries in which the MNC is operating or plan to operate in future. It is very difficult to maintain consistency in the HR planning in all the subsidiaries. The HR planning is influenced by the culture of the host country especially its perception towards the control over future events.

Such differences in perception towards the future will directly impact the HR planning process for e.g. societies that are oriented towards the past will heavily rely on historical data for making a prediction of future HR needs. HR planning is appropriate for the firms operating in a stable environment, but where the environment is highly unstable HR planning is not successful.

The objective of the international HR manager is to make available the right kind of human resource to the organization at the right time. This means after the HR planning recruitment and selection process will start. The international HR manager must hire the candidates not only with the required skills but also with the ability to adapt to the culture of the other country. For example, in the United States, the EB-5 visa  program allows companies to attract foreign talent by offering a path to permanent residency for qualified investors.

International managers can hire candidates from the three countries – parent country, host country and third country depending upon the requirement and suitability.

It is the next step after recruitment and selection. The International HR managers will provide the training and development to the new expatriate going to the host country. They are provided with pre-departure training before they depart for the host country. The expatriate are provided with cultural training, language training and practical training. This will help in reducing expatriate failure.

International HR managers must pay focused attention while designing the remuneration package of the expatriate. It needs to be considered that there is a difference in the cost of living of the two countries and even the tax structure differs.

In this world of rising globalization expatriates are of immense importance to multinational enterprises. To keep them motivated appropriate and justified performance appraisals should be conducted. Appraising an expatriate is a complex task as there is active involvement of the home country supervisor and the host country supervisor.

Repatriation is the process of taking back the expatriate from the host country. It is the process of re-entry into the home country. It represents the new challenges because the expatriate now has to face the re-entry shock or reverse cultural shock. This process take place when the expatriate has completed his host country assignment and now he has been assigned a new assignment in the home country.

• Cross Cultural Theories
• Hofstede’s Dimension Theory
• Hofstede’s Contribution to International Management
• Trompenaars & Hamden-Turner’s Seven Dimensions of Culture
• Kluckhohn & Strodbeck’s Cultural Demensions

Role of HR in Maintaining Ethical Policies & Behaviour

There is a special role of global managers to ensure that the organization deals fairly and ethically with its employees and the employees deal fairly with one another, the clients and the organization.

Some policies for organizations in this regard are:

• Respecting people and not exploiting them • Not doing any harm • Following truth always • Keeping the promises • Treating people fairly without discrimination • Not depriving people of basic rights, such as right to speak etc.

In organizational terms, fulfilling these duties may translate in to the following:

• Instituting careful health and safety practices, informing employees of potentially hazardous conditions and taking responsibility for occupational disease and stress related illness traceable to working conditions.
• Being truthful in recruiting
• Avoiding the use of invalid and discriminatory selection, appraisal and promotions
• Paying equal pay for work of comparable worth
• Providing ways for employees to voice their concern and not illegally constraining employees to form an union
• Following fair practices with regard to discipline, termination for cause and layoffs

Code to Guide HR Professionals

Keeping these into mind, the Society for Human Resource Management (SHRM) has formulated a code to guide HR professionals as given below:

• Professional Responsibility: HR professionals are responsible for adding value to the organizations they serve and contributing to the ethical success of those organizations. HR professionals are also advocates for the profession by engaging in activities that enhance its credibility and value.
• Professional Development : As professionals we must strive to meet the highest standards of competence and commit to strengthen our competencies on a continuous basis
• Ethical Leadership : HR professionals are expected to exhibit individual leadership as a role model for maintaining the highest standards of ethical conduct.
• Fairness and Justice : As human resource professionals, we are ethically responsible for promoting and fostering fairness and justice for all employees and their organizations.
• Conflicts of Interest : As HR professionals, we must maintain a high level of trust with our stakeholders. We must protect the interests of our stakeholders as well as our professional integrity and should not engage in activities that create actual, apparent, or potential conflicts of interest.
• Use of Information : HR professionals consider and protect the rights of individuals, especially in the acquisition and dissemination of information while ensuring truthful communications and facilitating informed decision-making.
• Ethnocentric Approach : This approach believes that Parent country practices should be followed in all countries in managing Human Resources. They are good enough to manage in-country.
• Poly-centric Approach : This approach of IHRM believes that the host country practices and culture are relevant and IHRM must give blend host country practices in managing Human Resources to make it effective.
• Regiono- centric : This approach gives importance to commonalities of a region and adopts practices of the region. Thus practices vary from region to region.
• Geo-Centric : This approach is much matured and accepts that practices in different geographies have different strength. Thus best practices should be adopted in different countries it may be from any geographies.
• Parent Country National : This term means Parent Country National & connotes to those who belong to the Parent country of the MNC.
• Host Country National : This term means Host Country National & connotes to those who are nationals of the host country where and MNC has establishment or operations or Subsidiary.
• Third Country National : This term means Third Country National & connotes to those who belong to the country which is neither the Parent country of that MNC, not the host country.
• BARNEY, J., 1991. Firm resources and sustained competitive advantage . Journal of management, 17(1), pp. 99.
• GUPTA, S.C. 2012. International Human Resource Management- Text and Cases: MacMillan, New Delhi.
• SCHULER, R.S., DOWLIN G, P.J. and DE CIERI, H., 1993. An integrative framework of strategic international human resource management . Journal of Management, 19(2), pp. 419.

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• Human Resource Management
• What is Executive Development?
• Functions of HRM
• Human Resource Planning
• What is Recruitment ?
• What is Selection ?
• Employee Induction
• Types of Training
• Importance of Training
• Training Process
• Human Resource Accounting
• Methods of Human Resource Accounting
• What is Motivation ?
• Performance Appraisal
• Performance Appraisal Process
• Performance Appraisal Problems
• Management by Objectives
• 360 Degree Performance Appraisal
• What is Compensation ?
• Employee Discipline
• What is Employee Grievance ?
• What is Collective Bargaining ?
• What is HRIS?
• What is HR Audit ?
• What is Human Resource Planning ?
• Human Resource Planning Process
• Human Resource Demand Forecasting
• What is Human Resource Development ?
• Challenges of Human Resource Development
• What is Performance Appraisal?
• What is Succession Planning?
• What is International Human Resource Planning?
• What is Job Analysis ?
• What is Job Design ?
• What is Recruitment?
• Effective Recruiting
• What is Selection?
• What is Employee Induction ?
• What is Career Planning?
• What is Knowledge Management?
• International Human Resource Management
• Dimensions of Culture
• HRM Practices
• Strategic Human Resource Management
• Difference between Global HRM and Domestic HRM
• International Selection Process
• Expatriate Training & Development in IHRM
• Process of Selecting Expatriates
• International Compensation Management
• What is Disciplinary Action?
• What is Competency Based Training?
• Human Resource Development
• Methods of Human Resource Development

Steps for Designing HRD Intervention

• Employee Orientation

Employee Socialization

• Realistic Job Review
• Performance Management System
• 360 Degree Assessment
• Employee Assistance Program
• What is Coaching?
• What is Mentoring ?
• Leadership Development
• Management Development
• Organisational Development
• What is Planned Change?
• What is OD Interventions?
• What is Performance Management ?
• Performance Planning
• Competency Mapping
• What is Performance Appraisal ?
• Employee Performance Monitoring
• Performance Counselling
• Performance Management and Reward
• Ethics in Performance Management
• Role of HR Professionals in Performance Management
• What is Organizational Behavior?
• What is Personality?
• Theories of Personality
• What is Perception?
• What is Learning?
• Theories of Learning
• What is Attitude?
• What is Motivation?
• Motivation Theories

Mcclelland’s Needs Theory of Motivation

• Maslow’s Hierarchy of Needs

Herzberg Two Factor Theory

Vroom’s expectancy theory of motivation.

• What is Assessment Centre?
• Consumer Attitude Formation
• What is Culture?
• Consumer Decision Making Process
• What is Organisational culture?
• What is Leadership?
• What is Leader?
• Organisational Stress
• What is Organisational Culture?
• Trompenaars Model of Organisational Culture
• Organisational Culture Models
• Types of Organisational Culture
• Corporate Culture and Organisational Success
• Creation of Organisational Culture
• Sustaining Organisational Culture
• Managerial Decisions Affected by Culture
• Where Does Organizational Culture Comes From?
• Functions of Organisational Culture
• Ethical Organizational Culture
• What is Culture Assessment?
• Workplace Culture and Practice
• Changing Organisational Culture
• Innovative Culture in Organization
• Leadership in Organization Culture
• Organisational Culture and Business Strategy
• Organizational Culture and Strategic Planning
• ERP Implementation
• Business Process Management
• What is Competency Modeling?
• Kirkpatrick Training Evaluation
• What is Industrial Relations?
• Organisational Change
• What is Sales Budget?
• What is Sales Control?
• What is Sales Analysis?
• What is Sales Quotas?
• What is Sales Territories?
• What is Group ?
• Group Dynamics
• Organisational Culture
• Group Decision Making
• Group Conflict
• Diversity in the Workplace
• Types of Powers
• Factors Affecting Communication in Organisation
• How to Create Training Program

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What is International Human Resource Management?

Everything you need to know about international human resource management.

International human resource management is the process of employing, training and developing and compensating the employees in international and global organizations.

An international company is one which has subsidiaries outside the home-county which rely on the business expertise or manufacturing capabilities of the parent company. Generally, an MNC is considered to have a number of businesses in different countries but managed as a whole from the headquarters, located in one country.

International HRM deals with the typical HRM functions like recruitment, selection, training and development, performance appraisal, etc., at the international level.

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According to Hugh Scullion, International HRM (IHRM) involves the HRM issues and problems arising from the internationalisation of business, and the HRM strategies, policies and practices which firms pursue in response to the internationalisation of business.

International Human Resource Management (IHRM) is “the process of procuring, allocating, and effectively utilizing human resources in a multinational corporation”.

In the words of Edwin B. Flippo, “International or domestic HRM involves the planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and social goals.”

Learn about:-

1. What is International Human Resource Management? 2. Concept of International Human Resource Management 3. Objectives 4. Activities and Cultural Dimensions 5. Selection Process

6. Training and Development 7. Approaches 8. Practices 9. Challenges and Emerging Issues 10. Suggestive Measures.

• What is International Human Resource Management? – An Introduction

Concept of International Human Resource Management

Objectives of international human resource management, activities and cultural dimensions of international human resource management.

• Selection Process of International Human Resource Management
• Training and Development of International Human Resource Management
• Approaches of International Human Resource Management
• International Human Resource Management Practices
• Challenges and Emerging Issues of International Human Resource Management
• Suggestive Measures of International Human Resource Management

What is International Human Resource Management? – Introduction

An organization gains competitive edge when it has an efficient pool of employees. In addition, we know that a large number of organizations conduct their businesses across national boundaries. Therefore, there is an increasing need of managing global employees. The effective management of global employees is a major determinant for the success or failure in international ventures. It has become a challenge to procure, train, and retain employees for global organizations. IHRM plays a very crucial role in terms of managing employees belonging to different geographical locations and countries.

International human resource management is the process of employing, training and developing and compensating the employees in international and global organizations. An international company is one which has subsidiaries outside the home-county which rely on the business expertise or manufacturing capabilities of the parent company. Generally, an MNC is considered to have a number of businesses in different countries but managed as a whole from the headquarters, located in one country.

According to Pigors and Myers, “International or domestic human resource management is a method of developing the potentialities of employees, so that they get maximum out of their work and give best efforts to the business organization”.

Another definition of IHRM is that “it is the systematic planning and co-ordination of the fundamental organizational processes of job and work design, staffing, training and development, appraising, rewarding, and protecting and -representing the human resources in the foreign operations of an organization”.

The concept of HRM as we are familiar with today began to evolve from the early 19th century. But the concept of International HRM is of a recent origin. Increased international trade and widespread globalization over the past few decades have given rise to a contemporary branch of HRM, i.e., international HRM, also known as global HRM.

It deals with the typical HRM functions like recruitment, selection, training and development, performance appraisal, etc., at the international level. According to Hugh Scullion, International HRM (IHRM) involves the HRM issues and problems arising from the internationalisation of business, and the HRM strategies, policies and practices which firms pursue in response to the internationalisation of business.

IHRM is concerned with the management of all the human resource activities in global organizations without regard to geographic boundaries. It is the process of procurement, allocation and effective utilization of human resources in international business. It is the interplay among the three dimensions human resource activities, types of employees and countries of operation.

In other words, the basic human resource processes such as HR planning, procurement, training and development, induction, compensation, performance management and industrial relations are influenced by two other groups of variables. First group of variables consists of types of employees; these may be host country nationals, parent country nationals and third country nationals.

Second group of variables consists of countries involved the host country where a subsidiary may be located, the home country where the company has its headquarters and the other countries that may be the source of finance or labour.

Within present business scenario, there are larger number of organisations conduct business beyond national boundaries. The differences in organisational environment across nations have encouraged to determine and develop international HR staffing and practices. At global scenario, it is needful to study about HR hiring, staffing developing, compensating and appraising HR for better utilisation of people.

International Human Resource Management is the process of managing people in international ventures and involves activities in at least two nations.

It is fact that the success of business and trades are depends on the skills and quality of human resources and how effectively these resources are managed and utilised at international level.

1. It enhances to develop managerial skills, organisational knowledge and technical abilities of HR managers and employees;

2. To develop more and better handle of global business operations;

3. To manage and secure the performance, compensation and career path of employees;

4. To manage and organise cross cultural counselling and language training programme;

5. To develop more feasible understanding of work practices at global levels;

6. To raise and develop better and new performance management of human resources;

7. To get more and more opportunities within global HR scenario;

8. To develop better and competitive HR strategies in global competitive scenario;

9. To reduce the cultural differences as amicable for cultural environment.

Managing human capital is undoubtedly the most challenging task for any manager and for the human resource department. The knowledge-based economy and knowledge workers have meant that a lot is at stake when it comes to managing people. The internationalization puts additional challenges and issues in managing employees.

The complexity is far greater and issues are many times delicate since expatriation often means relocation of the employee’s family as well. The focal areas of priority of HR also changes with the stage of internationalization.

There are three major international HRM activities – Procure, Allocate and Utilize. In effect these three major activities of IHRM covet all the six activities of domestics HRM i.e. HR planning, Employees Hiring, Training and Development, Remuneration, Performance Management and Industrial Relations.

International HRM involves employees of three countries – parent country or the home country (where a company’s headquarters might be located), host country (where company’s subsidiary may be located) and third country (Other countries that may be sources of labour or finance).

International Staffing :

Staffing is a challenging function. Finding the right set of people has never been easy. However when it comes to international operations, the complexity of staffing increases many folds. Deciding on the mix of local employees to expats is not an easy decision to make. Several factors may impact the same.

Then cost is another major consideration. Cost of finding an international employee and hiring that person if often very high. Such cost aspects demand even more careful consideration and selection. Errors in selection could be tremendously costly for the firm. Expat compensation and tax laws are huge consideration in international staffing. Tax treaties between certain countries ease income tax obligations of an expat.

Such treaties may make it easier to hire from certain countries, while it may difficult to hire from others since the compensation may not work out in the favour of the expat. Environmental factors may also affect international staffing. Political environment may change with government regimes and may favour or disfavour expat movement.

Cultural Challenge :

Difference in national cultures of expats poses a challenge in hiring and assimilating international staff. A lot of pre-departure training for the expats is focused on cross cultural training. Cultural fitment of the expats plays a important role in the success of the projects and international assignments. Multi-national companies often develop hiring strategy and training interventions to cope up with this cultural challenge.

Geert Hofstede work on cultural dimensions is an authoritative repository on national cultures and how cultures differ across countries. Hofstede defines six cultural dimensions to qualify a national culture (Hofstede, Cultural Dimensions). A comparison across these dimensions also helps distinguish one national culture from the other.

The cultural dimensions according to Hofstede are:

1. Power Distance Index (PDI) – The degree to which the less powerful members of a society accept and expect that power is distributed unequally.

2. Individualism versus Collectivism (IDV) – Preference for a loosely- knit social framework in which individuals are expected to take care of only themselves and their immediate families. The opposite of individualism is collectivism.

3. Masculinity versus Femininity (MAS) – Masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness and material rewards for success, whereas femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life.

4. Uncertainty Avoidance Index (UAI) – The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity.

5. Long-term Orientation versus Short-term Normative Orientation (LTO) – Cultures low on this dimensions, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. Contrastingly, those high on this dimension have a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.

6. Indulgence versus Restraint (IND) – Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Opposite of indulgence is restraint.

The Hofstede center helps to understand how each nation features on these six dimensions and hence can give a very definitive picture of its national culture. It also lets users compare two national cultures.

Hofstede’s work established a major research tradition in cross-cultural psychology and has also been drawn upon by researchers and consultants in many fields relating to international business and communication.

It continues to be a major resource in cross-cultural fields. It has inspired a number of other major cross-cultural studies of values, as well as research on other aspects of culture, such as social beliefs.

Selection Process of Employees in International Human Resource Management

International postings are complex and carry a lot of in-built pressures along with them. It would be erroneous to assume that the job requires the same set of skills in different locations. The local dynamics might be different; the cultural and social pressures might be too complex.

If the spouse and children join the expatriate, there are additional issues to be resolved – from learning a new language to shopping in new environs, to children finding new friends and attending new schools.

For an expat to succeed, therefore, the selection process must be rigorous and must invariably include criteria such as:

1. General and Technical Criteria:

Research findings consistently indicate that MNCs place heavy reliance on relevant technical skills during the expatriate selection process. In addition, the expatriate manager should be a good communicator, and possess management talent, maturity, emotional stability in ample measure.

2. Language Skills:

Most researchers argue that knowledge of the host-country’s language is an important factor affecting the performance of an expatriate. Where the expatriate is expected to communicate with host country subjects frequently, language skills come to occupy the centre-stage.

Tung and Anderson’s study indicated that the respondents (mostly Americans) greatly valued the ability to speak local language, regardless of how different the culture was from their home country.

3. Cross-Cultural Suitability:

Expatriate managers must be able to adapt to change. They must have the ability to translate their technical or managerial skills into meaningful action plans in a foreign environment. They should get along with local people easily without upsetting host country customs, traditions and other cultural niceties.

The expatriate managers should as a rule, have good interpersonal skills and extra-cultural openness — including a variety of outside interests, tolerance for ambiguity and non-judgmental behaviour.

4. Motivation for a Foreign Assignment:

The candidate for foreign assignment must believe in the importance of the job and possess a certain amount of idealism or a sense of mission. Applicants, who are not happy with their current situation at home and are looking to get away, rarely succeed as overseas managers.

5. Family Situation:

Several items including the adaptability of spouse and family, spouse’s positive opinion, willingness of spouse to live abroad, stable marriage comprises this factor. This factor was found to be the most important of the above list, contributing to the expat’s success or failure on a foreign locale.

Selection Process:

The selection process varies widely from country to country. Asian companies use extensive testing procedures and screening techniques. Europeans do not test as much as Asians, but considerably more than Americans. Testing in the US is not favoured because of its negative impact on equal employment and affirmative action efforts. In most global corporations, however, adaptability screening is usually followed.

The screening, carried out by a professional psychologist or psychiatrist, tries to assess the family’s probable success in handling the foreign transfer, and to alert the couple to personal problems (impact on children’s education, etc.) the foreign move may involve. Many companies more or less have realised the importance of preparing managers to work in foreign cultures. In fact, several companies try to give future managers exposure to foreign cultures early in their careers.

American Express Company’s Travel related services unit gives American business-school students summer jobs in which they work outside the United States for up to 10 weeks. Colgate-Palmolive selects 15 recent graduates each year and then offers up to 24 months of training prior to multiple overseas job stints. The overall US selection and training practices, however, continue to lag behind those of Japan and Germany.

In Japan, for example, expatriates are selected a year or more prior to their posting so that they and their families receive extensive cultural and language training. Not surprisingly, the overseas success rate for the Japanese is significantly higher than that for Americans.

Training and Development  in International Human Resource Management

Careful selection is only the first step in ensuring the foreign assignee’s success. The expatriate may then require proper orientation, cross-cultural training, assistance in career planning and development, etc., in order to handle the assigned jobs in a competent way.

A. Orientation:

International positions require an extensive orientation to familiarise the employee with culture, language and other unique aspects of the assignment. Familiarisation trips could also be arranged for the prospective expatriates so that they can actually visit the country of their posting and live like natives there for a while.

The orientation programmes, generally cover areas such as:

1. Pre-Arrival Orientation:

(i) Cultural Briefing- Explaining the traditions, customs, living conditions, clothing and housing requirements, health stipulations, etc.

(ii) Assignment Briefing- Throwing light on length of assignment, vacations, compensation package, tax implications, repatriation policy etc.

(iii) Shipping Requirements- Shipping, packing, storage, housing facility in the new location etc.

(iv) Cross-Cultural Training- Differences in culture, language and laws may make it difficult for the global employees to be on track quickly. In order to lead a normal life, they need cross- cultural as well as language training. The failure to provide such training may create adjustment problems for the expatriate manager and the resultant culture shock (the inability to adjust to a different cultural setting) may compel the expatriate to quit the field altogether.

2. Post-Arrival Orientation:

Once global employees arrive in the host country, they will require further assistance in ‘settling in’. Someone should receive them and help them in obtaining housing accommodation, establishing bank accounts, getting driving licenses, arranging admissions to school for dependent children etc.

Firms can help employees avoid culture shock, of course, by using selection tools to choose the employees with the highest degree of cultural sensitivity. An important part of an expatriate manager’s training, further, should be an overview of the legal and ethical issues that are likely to be encountered on the overseas assignment.

B. Career Development:

The expatriate’s motivation to do well on an international assignment is primarily dependent on the following things:

(i) Whether the present assignment would help the expatriate to learn new things, expand his knowledge, create a unique position for himself in the organisation ladder, and grow vertically within the firm — once the job is successfully completed.

(ii) Whether the expatriate is enjoying continued support from the headquarters or not.

One of the important deterrents to accepting foreign assignments is the expatriates’ concern that they will be ‘out of sight, out of mind’. If they do not have direct and regular contact with their bosses and colleagues at headquarters, they feel isolated and thrown out of the system. To reduce their anxiety levels therefore, global companies must project foreign assignments as stimulating growth opportunities leading to continued career progression.

A monitoring system would certainly solve such issues. In this system, an expatriate is guided by a senior executive in the headquarters. This executive talk with the expatriate regularly, ensures that the expatriate’s name is submitted during promotion and development discussions at headquarters and resolves any headquarters-related problems faced by the expatriate.

Another approach has the expatriate coming back to the home office occasionally to foster a sense of belonging to the organisation. Alternatively, mini-sabbaticals could be offered to the expatriate and his family so that he or she can be in touch with current happenings in the headquarters.

MNCs Approach to International Human Resource Management

MNCs can approach the management of international human resources in a number of ways:

1. Ethnocentric Approach:

Here the MNC simply transfers HR practices and policies used in the home country to subsidiaries in foreign locations. Expatriates from the MNCs home country manage the foreign subsidiaries and the MNCs headquarters maintain tight control over the subsidiaries policies.

2. Polycentric Approach:

In this case, the subsidiaries are basically independent from headquarters. HR policies are developed to meet the circumstances in each foreign location. Local managers in the foreign sites are hired to manage HRM activities.

3. Region-Centric Approach:

This approach represents a regional grouping of subsidiaries. HR policies are coordinated within the region to as much an extent as possible. Subsidiaries may be staffed by manager from any of the countries within the region. Coordination and communication within the region are high, but quite limited between the region and the MNCs headquarters.

4. Geocentric Approach:

In this case, HR policies are developed to meet the goals of the global network of home country locations and foreign subsidiaries. This may include policies which are applied across all subsidiaries, as well as policies adapted to the needs of individual locations depending on what is best to maximize global results.

The firm is viewed as a single international business entity rather than a collection of individual home country and foreign business units. HRM and other activities throughout the MNC are managed by individuals who are most appropriate for the job regardless of their nationally. Thus, one may find a British manager handling HRM activities in the New York office of a Dutch MNC.

Practices of International Human Resource Management

An organization needs to consider the purpose for which it needs to send the employees for international assignments. For example, an organization may send its employees aboard to set up or explore a new market, or prepare them for top management positions. After the purpose of the international assignment is specified, the organization can initiate the process of selecting the best employees for the international project.

The following are the aspects of concern in IHRM:

i. International staffing

ii. Pre-departure training for international assignments

iii. Repatriation

iv. Performance management in international assignments

v. Compensation issues in international assignments.

i. International Staffing :

International staffing refers to the selection of the most appropriate employees for international operations of an MNC.

The selection of the most appropriate employees can be done by using the following three sources:

a. Home Country or Parent Country Nationals (PCNs):

Refer to the citizen of the country in which the headquarters of the MNCs is located. PCNs are not the citizens of the country in which they are working. For instance, an Indian citizen who is posted to an overseas subsidiary of an organization that has its headquarters in India is a PCN. In addition, PCNs are termed as expatriates.

Generally, PCNs are hired to occupy key and top-level management positions because they possess sound knowledge about the operations of parent organization. The knowledge about parent organization helps the PCNs in ensuring proper linkage between foreign subsidiaries and the headquarters. However, hiring PCNs is a costly affair for an organization as it has to bear the relocation cost for them.

b. Host Country Nationals (HCNs):

Refer to the employees of an organization, who are citizens of the country in which the foreign subsidiary is located. An Indian manager working in an Indian subsidiary of a US organization is an HCN. For example, IBM normally hires HCNs. In addition, HCNs generally occupy middle and lower management level positions. The recruitment of HCNs is not a costly affair for an organization because it does not need to incur extra cost in cross-cultural training of employees.

c. Third Country Nationals (TCNs):

Refer to the citizens of a country, other than the country where the organization is headquartered and the country that is hosting the subsidiary. Staffing is done on the basis of ability and not on the basis of nationalism. For example, a British citizen working in the Indian subsidiary of an organization whose headquarters is located in the US, is termed as a TCN. You should note that a TCN has substantial international experience and exposure that is quite advantageous for an organization.

The approach of internal staffing differs from organization to organization.

Some of the popular approaches for international staffing are explained in the following points:

a. Ethnocentric:

Refers to an approach in which all strategic decisions are made at headquarters and foreign subsidiaries are endowed with very little autonomy. PCNs or expatriates occupy key positions at headquarters as well as in subsidiaries. They control all the critical areas of operation, such as finance, production, and quality. McDonald’s is an organization that follows the ethnocentric approach.

b. Polycentric:

Refers to an approach in which MNCs treat each foreign subsidiary as a distinct entity. Therefore, each foreign subsidiary is provided with little autonomy to make its own decisions. The MNCs, which follow polycentric approach recruits HCNs in their foreign subsidiaries. The staff at headquarters comprises PCNs because HCNs are rarely promoted to key positions at the headquarters.

c. Geocentric:

Refers to an approach in which the focus is on staffing the best employee for a particular position. The geocentric approach is based on an integrated global philosophy. The MNCs following the geocentric approach may recruit PCNs, HCNs, or TCNs for any position in the headquarters or subsidiaries. The nationality of the candidate is not the key to staffing because the MNCs focus on the ability of the candidate.

ii. Pre-Departure Training for International Assignments :

There are various cultural differences that exist between countries. No two countries have similar or uniform cultural and societal norms and practices. For instance, the US society does not believe in rituals, ceremonies, or formalities as Indians do. Therefore, employees should gain knowledge and understanding of the country’s culture in which they are going to work.

It is the responsibility of the organization that its employees posted abroad should get proper cross-cultural training. This training should focus on skills that are needed to attain success in the international assignment and understanding cultural differences and socio-political environment of the country. Therefore, cross-cultural training has become very important for MNCs. Organizations, such as Coca-Cola, Procter & Gamble provide intensive training to their employees to prepare them for international assignments. These training sessions are usually conducted in the country where the employees are posted.

An organization must take into consideration the employee’s family, lifestyle, number of children, and preferences for the successful relocation of an employee to a foreign country. The organization should provide a pre-departure training to both employees and their families.

The pre-departure training, also known as expatriation, makes it easier for the employee to adjust to a different culture and assume job responsibilities in an effective manner. The pre-departure training covers three main aspects, such as language training, training to manage personal and professional life, and cultural training.

In addition to providing a pre-departure training, the organization helps the employees in relocating and finding transport and housing in the foreign country. It is important that an organization maintains regular contact with the employees posted aboard and keeps them informed about important organizational development and changes.

iii. Repatriation :

Repatriation is the process of bringing expatriates back to the home country after the completion of the international assignments. For expatriates, the return of expatriates to the headquarters of the organization within the parent country is accompanied with certain fears and anxieties pertaining to readjustment in the old position and job responsibilities.

It is important that the organization takes appropriate steps and initiatives to manage these anxieties and make the re-entry of expatriate to parent country easier. For instance, an organization may not have planned the return of the employee; therefore, he/she may have to remain without any position/portfolio in the organization for a while.

In addition, the managers of the parent country fear that a foreign-return employee may get a better position than them. The organization can resolve this issue by entering into a repatriation agreement with the employee that specifies the maximum tenure of the foreign posting, the nature and type of job he/she will be given upon return and the salary to be expected upon return. In addition, the organization should assign a senior manager as a mentor for the employee posted abroad to take care of his/her career interests.

iv. Performance Management in International Assignments :

Performance is the result of a combination of several factors, such as motivation, skills, experience, ability, and working conditions. Therefore, these factors should be taken into consideration to assess the performance of employees whether they are on international assignments and domestic assignments.

Financial compensation offered to the employee must be in accordance with the skills, level of responsibility, and the performance of the employee who is assigned an international project. If the inadequate financial compensation provided to the employees, it may result in loss of motivation.

The standards expected from employees and the tasks assigned to them must be clearly communicated. In addition to cross-cultural, technical training should be provided to employees. If employees fail to understand their roles and responsibilities and cultural differences, it will adversely affect their performance.

A major problem with expatriate performance evaluation emerges due to dual loyalty of the expatriate towards the home country (parent) as well as the host country. If there is a lack of regular communication between the managers of host as well as home country, it becomes difficult to understand and assess the contribution of the employee to the organization.

v. Compensating Expatriates in International Assignments :

One of the most important and complex aspects of IHRM is related to expatriate compensation (compensation given to employees posted abroad). Different norms of compensation are followed by different countries. An organization often adheres to the compensation laws of the country in which the expatriate is posted. Compensation is an important motivational tool for employees.

If the employees are not adequately paid for their services rendered, it may lead to dissatisfaction and loss of employee morale. An organization should make flexible plans that can be changed as per the industry norms and standards prevailing in different countries to accommodate particular needs of employees posted in different locations.

While designing the compensation package of expatriates, their needs and aspirations must be taken into consideration, as different expatriates have different sets of needs. For example, if expatriates live close to the office premises, they would not need a travel allowance, whereas the other one who stays far off may require a travel allowance. An expatriate may feel that money is the sole motivator, whereas another expatriate may feel that non-financial rewards in the form of recognition, challenging tasks, and innovative projects are far more motivating.

Therefore, an organization must identify the needs and aspirations of expatriates and accordingly provide them with appropriate compensation. For instance, Americans value performance-linked pay plans as they feel money is the main motivator. However, Japanese and Indians feel more satisfied and content with non-financial incentives, such as prestige and recognition.

Expatriate compensation must be just, fair, and equitable and in accordance with the international compensation norms. There are numerous factors, such as country’s compensation laws, cost of living, taxation policies, and currency value, which play an important role in determining the compensation packages of an expatriate. In addition, health benefits and insurance can be a part of expatiate compensation. An expatriate can also be compensated for the cost of housing and schooling of children.

Challenges and Emerging Issues in International Human Resource Management

There are certain problems and challenges as arising within the process and methods of global HR scenario.

Some of the challenges and emerging issues in IHRM are:

1. Ethics and corporate social responsibilities

3. Code of conduct for MNCs

1. Ethics and Corporate Social Responsibilities:

Ethics and corporate social responsibilities in the international business environment are always debatable. MNCs have been accused of being indifferent to the problems of host countries as they are more concerned about the profitability of their companies. MNCs have to balance the ethics and moral of their country and host country.

i. Ethical relativist

ii. Ethical absolutist

iii. Ethical universalist

i. Ethical Relativist :

An ethical relativist believes that there is no right or wrong. What is right in a particular situation in one place may not be so in another. Relativism offers flexibility but may prove to be disastrous in the long-run for an MNC.

ii. Ethical Absolutist:

An MNC which believes in this approach is strongly influenced by the practices and policies of its home country. They do not give much importance to the culture and values of the host country. Ethical absolutists have been criticised for their arrogance and for showing little respect to the traditions and culture of the host countries.

iii. Ethical Universalist:

An ethical universalist believes that there are fundamental rules which help us differentiate between right and wrong. These rules need to be adhered to in any country and in any situation. An ethical universalist believes that cultural variations between countries should not lead to any wrongdoing on the part of the MNCs. There is a distinction between practices which are culturally different and ones which are morally wrong. MNCs should understand this difference and work towards achieving high ethical standards.

2. Bribery :

According to a survey conducted by J. Macken, developed countries give around $85 billion to underdeveloped countries in the form of bribes. MNCs from developed countries have been accused of bribing Government officials. Hence, countries should frame laws to prevent corruption. For example, in the US, there is a law called Foreign Corrupt Practices Act (FCPA), which prohibits US- based firms from bribing officials in other countries.

3. Code of Conduct for International Business :

The first step in framing a code of conduct for international business players came in the form of the Caux Roundtable Conference on ‘Principles for Business Conduct’ held in 1994. It was a conference on international business ethics, held at Caux in Switzerland and was attended by the business leaders from all countries.

The focus was to formulate a set of rules and ethical codes which would be used for benchmarking global business practices. Major work on this issue was done at Minnesota centre for corporate responsibility in the US. The main aim of Caux conference as given in the charter is, “to further the twin value of living and working together and human dignity by promoting free trade, environmental and cultural integrity and prevention of bribery and corruption.”

Suggestive Measures in International Human Resource Management

Within global scenario, in order to make a perspective viewpoints about international human resource management, the suggestive viewpoints are as given here:

Measure # 1. Significance of Individualism :

It is necessary to beware of the customs in which the people interact with each other. Some societies encourage individualism. Their belief is that if everybody takes care of himself. Then it would not be necessary to take care of anybody else. There are other societies which are characterised by a tight social framework where in exchange for loyalty, people expect to be taken care of.

The HR managers and organisations must recognise this trait. In America, as another type of example, people shake hands with each other when they meet, while in the Middle East, they embrace each other, and in Japan they bow their heads to each other.

Measure # 2. Overcome the Ethical and Legal Conflicts :

It is required to develop an understanding of how ethical and legal conflicts relate to managerial and organisational effectiveness, as well as how managers can work and manage their ethical and social responsibilities.

Measure # 3. Establish One-to-One Relationship towards Build Trust :

It may seem obvious, but an organisational relationship is built on many one-to-one relationships between members of each organisation. People who will be working together and taking risks together will need to get to know each other and establish trusting relationship. It may be possible by different ways. Some of the managers and employees can meet for informal discussions, recreation events, retreats, social events or other informal gatherings.

Measure # 4. Develop Basic Knowledge :

It is needful to develop a basic knowledge of how different culture work, what makes them unique, and how managers can work successfully across such environment. If culture and cultural differences can play an important role in managerial success in the global arena, it is logical to develop a greater understanding of how cultures differ and how they influence attitudes and behaviours across the globe.

Measure # 5. Involve the Stake Holders :

Within determine and implement the plans, programmes, process and strategies concerning of HR practices, it is needful to involve all the stakeholders. The stakeholders are group leaders, HR managers, staff, employees and other people who can help directly or indirectly the issues of HR scenario.

Measure # 6. Develop a Learning Strategy :

For better growth and career oriented HR practices there is need to develop training programmes, cooperative tendencies, motivational aspects, innovative ideas, new methods of techniques etc.

Measure # 7. Develop Effective Cross-Cultural Communication Skills :

It is often said that communication is the glue that holds organisations and inter-organisational relationships for best HR management together. It is also said that perceptions and patterns of what is being said is in the eye of the beholder. Here we discuss the relationship between language, logic and communication, as well as the challenge of working with colleagues who think and speak in a different language.

Measure # 8. Develop the Geocentric Approach :

At international level, the parent and host organisations must focuses on skills, competencies, abilities and efficiencies of the people who are involved in the working at global assignments. In this approach, the concept of nationality have a little attention within HR staffing.

Measure # 9. Managing the Pre-Departure Training Programmes :

International companies should develop the pre-departure training programme to provide various knowledge and skills for performing the foreign assignments.

Measure # 10. Motivational Compensation Package :

It is required to design motivational compensation packages for employees. By and large some of the important components of this package are cost of living adjustment, incentive benefits, travel allowance, home leave, relocation allowance, currency differential payments and hardship posting allowances etc.

Related Articles:

• Definition of Human Resource Management
• Difference between Personnel Management and Human Resource Management
• Features of Human Resource Management
• Functions of Human Resource Management

• Book a Speaker

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HR Best Practices Can Lead to a Better Expat Experience

Mentoring employees before and during an expat assignment is among the effective preparation strategies for adjusting to a new country

Employees who have accepted international assignments adjust and perform better in the host country when effective HR management practices are implemented, according to a report included in a compilation of research that the SHRM Foundation recently released.

The findings in Crossing Cultures: Unpacking the Expatriate Learning and Adjustment Process over Time are based on responses from 171 expatriates surveyed 30 days before leaving for their assignments and then nine more times over the first nine months of their international assignment. The respondents—nearly three-fourths of whom were men, and most of whom had a spouse and children moving with them—were from three multinational organizations. Their assignments spanned 38 countries in Africa, the Americas, Asia, Australia and Europe.

The study found that the expat’s psychological well-being, language fluency and training before relocation had a positive overall effect on adjusting in the first nine months of the international experience. The findings, the researchers wrote, underscore the importance of HR practitioners understanding the expat’s adjustment process. HR professionals must make sure their organization:

• Addresses the employee's need to develop language fluency in the international assignment.
• Offers psychological screening to assess readiness for an international assignment, including an individual’s openness to having an international experience.
• Provides strong support before and during the assignment, including setting clear expectations about the employee’s role and performance and giving feedback and assistance.
• Provides the employee with a self-assessment tool prior to the international assignment to help set realistic expectations for adjusting to the host country.
• Provides a mentor in the host country. A former, current or more experienced expatriate to offer an insider’s perspective can be especially helpful; a host-country national who is a distinguished organizational leader also would be a good choice.
• Maintains a connection between the expatriate and the home-based organization.

Mentors, Support Team

Cynthia Biro, global co-head of Skills Village at PeopleTicker, an information provider based in the New York City area, found that mentors in the host country helped her when she opened offices in various international locations. In preparation, her employer arranged for expatriates in those countries to contact her about a month before she left the U.S. Once she was in the host country, each expat spent several hours, on different days, introducing Biro to the area, including showing her where to shop for food and taking her on tours of the city to expose her to various areas and to learn the city’s history, she noted in a Society for Human Resource Management (SHRM) discussion on LinkedIn.

“I cannot tell you how much it helped me in my management and expansion efforts whilst [I was] onsite. Everyone was much more approachable in the office, because we had ‘off time’ and ‘warm introductions’ beforehand. I highly suggest this strategy for others. I also had language classes, and they helped, but the introducing of expats prepared me best.”

At defense technology company Raytheon, a support team is assigned to an employee who accepts an international assignment, said Randa G. Newsome, vice president of HR and based in Waltham, Mass. The team includes a sponsor, an in-country supervisor and an HR point of contact and it remains active throughout the employee’s preparation, deployment and repatriation.

“The support team is responsible for understanding the employee’s assignment and career aspirations, and for engaging in regular communication and activities to help the employee fulfill development goals throughout their assignment,” she said in an e-mail to SHRM Online. “Most important, the support team works to place the employee in a meaningful company role upon their return—one that aligns with their career aspirations and benefits from their international experience and acumen.”

Pre-Selection Criteria, Screening

Spell out pre-selection criteria for expat assignments, said Suzanne Garber, CEO of Gauze, a Philadelphia-based global database of hospitals, in an e-mail to SHRM Online. She has been an expat and has managed and helped other expats prepare for their assignments.

“The onus is on the hiring manager to ensure that cultural compatibility is one of the determining factors to awarding an expat assignment. Without fully understanding this component of the expat assignment, it may be doomed to fail,” she noted. “Many rising executives know that obtaining an expat position is one way to propel one’s career into super-stardom. ... However, all who are chosen are not best suited. Why not? Because while the job specs were carefully crafted, the cultural aspects were not. Culture, in an expat position, trumps credentials.”

Not everyone will adapt well to a new country or culture, wrote Vancouver, Canada-based HR consultant Debra Walker in an e-mail to SHRM Online.

“Tests that show adaptability, resourcefulness, problem-solving, thinking on one’s feet, ability to work in grey [areas]—and even introversion vs. extroversion review—are good to incorporate, so that individuals that will not adapt well will have a clearer picture before they even leave home soil.”

Most multinational firms do not have a standard screening process to identify traits—such as resourcefulness and a high tolerance for ambiguity—that make for a successful expat, said James P. Johnson, Ph.D., professor of international business at Rollins College Crummer Graduate School of Business in Orlando, Fla.

“These qualities cannot be taught in a brief pre-departure cross-cultural training program. Instead, efforts should be made to identify candidates that have these traits, and to train them in the technical aspects of the international assignment, rather than select the person who has the technical skills and assume that he or she can acquire the necessary soft skills that are essential to international success,” he said in an e-mail to SHRM Online.

Language, Cross-Cultural Training

Learning the host country’s language is important, said Johnson, who has worked in Finland, Great Britain, Mexico, Spain and the former Yugoslavia.

“It can go a long way in developing relations with employees, colleagues, customers and neighbors,” he said, but advised being realistic in one’s expectations. “Traditional language training is time-intensive and crash courses can be expensive. In addition, many firms that offer language training require the employee to do it in his or her free time or take vacation days to attend a crash course.”

He also thinks cross-cultural training should be a mandatory component of an international assignment.

“Less than 50 percent of firms require it, although many are getting better in realizing that training is not only essential for the employee, but for spouses [or significant others] and family members” accompanying the employee, he noted in an e-mail. Family members should have access to training as well for help securing a driver’s license, for example, and locating babysitters, schools and English-speaking medical providers.

And Gauze’s Garber stressed that additional cultural training is a must, even if the assignee has visited, worked in or previously lived in the host country.

“It is imperative to get a briefing on what’s going on in the country now. This includes an update from a political, gastronomical, religious and security perspective.”

Richard Phillips, managing director at Britam, a risk management and training consultancy in London, has employed more than 1,000 staff members in expatriate roles over the last 11 years—most commonly in "quite challenging environments," he said in an e-mail to SHRM Online.

“The single most important part of their preparation is making absolutely sure they understand the living and working environment they are about to enter—warts and all! To avoid wasting time and money, do this first and check as part of your quality process. It is human nature to look at the positives of a role and skip the bits you don’t know much about.

“Make sure your candidates are fully appraised of the challenges, issues and differences to their previous experience to avoid them wanting to return five minutes after arrival.”

Kathy Gurchiek is the associate editor at HR News. Follow her @SHRMwriter. Join the SHRM LinkedIn discussion on preparing expats for their assignments.

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International Triathletes Train for Big Moments with Garmin Products

Global triathlon stars trust garmin smartwatches, cycling computers and more to get a leg up on the competition. learn how our products can help you elevate your triathlon training..

What do Dorian Coninx, Anne Haug and Taylor Knibb have in common? For starters, all three are among the world’s top professional triathletes. Second, the trio takes their training to the next level with Garmin multisport and triathlon products , enabling them to train with confidence year-round and crush PR after PR on race day.

Why Garmin? It’s simple, really. These internationally ranked athletes understand that Garmin products have their back. From top-notch multisport smartwatches and bike computers loaded with triathlon features to heart rate monitors , power meter pedals and indoor trainers , the Garmin product ecosystem is purpose-built and designed to elevate tri training to the highest of levels.

Still not convinced? Let’s hear from our sponsored triathletes about how — and why — they are using our products. And then we’ll explore the benefits and features of the products trusted by top triathletes worldwide.

Pro Spotlight: Anne Haug

Anne Haug, a decorated professional triathlete from Germany, relies heavily on key data points she receives directly on her wrist and cycling computers 1 . An owner of both Garmin Edge 840 Solar and the more compact Edge 130 Plus , Haug can’t help but rave about the amount of features she has at her disposal while training and competing.

“I use the Garmin Forerunner 965 for every single training session and wear it 24/7 to collect all possible data. I love that the Forerunner can be used for all three disciplines, which in my opinion, is a big advantage,” she said. “To collect all possible data on one device makes it very easy for me to share with my coach. In terms of recovery and my physical well-being, I love the morning report because it gives me inside information about my body and allows me to make the right decisions during the day in terms of training intensity, prevention of sickness, recovery status and so forth.”

Haug, who claimed gold at the 2019 Ironman World Championship in Hawaii, isn’t alone in her opinion that the data her Garmin devices produce is a big part of her training and racing regimen.

Pro Spotlight: Taylor Knibb

Having secured the 2022 and 2023 Women’s 70.3 World Triathlon championships, Taylor Knibb is well-versed in sustaining success at the highest level.

“I’m a huge fan of having data for the training I do, both in the moment of the session and for my coach for analysis,” Knibb said. “I appreciate the ease of use, all of the data and the data screen options. I also appreciate that my Forerunner 965 tracks my resting heart rate and sleep. My coach likes to see my HRV every day.”

An American who trains with Edge 530 and a variety of other Garmin cycling products, Knibb became the youngest woman to capture gold at the Ironman 70.3 World Championship in 2022. Knibb took fourth place in her first full Ironman at the 2023 Ironman Championships in Hawaii.

Pro Spotlight: Dorian Coninx

Hailing from France, Coninx earned his first world championship at the 2023 Men’s 70.3 World Triathlon Championship in Spain. He also sports the popular Forerunner 965 and digests the loads of trackable data. What’s more, Coninx trains with the Edge 840 Solar , the Rally RS200 power meter pedals and HRM-Pro Plus monitor to get the edge he needs.

“These are products that allow me to be precise in my training and are easy to use,” he said. “They’re efficient, essential and adapted to the needs of someone who practices several sports with a high-performance objective.”

Garmin Multisport and Triathlon Smartwatches

From training to race day, Coninx, Haug and Knibb choose Garmin to make the most of their workouts by tapping into advanced data captured by their smartwatches. Take the Forerunner 965 and fēnix 7 Pro watches for example. Enjoy tri-focused features like multisport activity profiles, multisport auto transition — which automatically records your splits while adjusting between swim, bike and run — and 24/7 health and fitness tracking features to help you understand your body.

All so you can optimize your training and recovery.

Edge Cycling Computers

With most Garmin Edge products, you can collect real-time stamina insights and performance data. On top of that vital data, the latest and greatest Garmin Edge device, the Edge 1050 , provides a refreshed design, enhanced GroupRide features, a built-in speaker and more — all of which appear on a 3.5” vibrant, touchscreen display as you come into proximity.

The Edge 1050 delivers superior navigation, performance tracking, cycling awareness and smart connectivity to a bright screen — with up to 20 hours of battery life in the most demanding use cases and up to 60 hours in battery saver mode.

It’s no wonder the best of the best trust their Edge device.

Heart Rate Monitors

Many Garmin-sponsored triathletes, including Coninx and Knibb, use the HRM-Pro Plus or HRM-Fit heart rate monitors — in or out of the water — to help monitor their efforts. The HRM-Pro Plus, a comfortable lightweight strap, transmits real-time heart rate data to compatible devices.

“The accuracy of the data around my heart rate and its zones is crucial,” Coninx said. “I use the belt and the watch to monitor my HRV, particularly when I’m on training courses at altitude, to assess how fit I am when I wake up and how much energy I have.”

Meanwhile, the HRM-Fit heart rate monitor is designed for women and seamlessly clips onto medium- and high-support sports bras. Made to move with you, the HRM-Fit monitor provides accurate heart rate data sent directly to your wrist or cycling computer.

Rally Power Meter Pedals

Need power meter pedals for your unique bike ride? Then get a pair of Garmin Rally power meter pedals that can be swapped easily from bike to bike for reliable power data on every ride.

Roll with any of our dual-sensing power meters within our Rally 200 series . In addition to receiving accurate power measurements, choose from a variety of power meters that are easy to transfer from one bike to the next. And depending on your cleat of choice, our various power meters can accommodate you. From the Shimano bike cleat ( RS200 ) to LOOK KEO ( RK200 ) and SPD ( XC200 ), these power meters are designed to comfortably fit your needs — and feet.

So go ahead, crush it on the road, gravel or singletrack.

Tacx Indoor Smart Trainers

Never to be forgotten in a cyclist or triathlete’s training regimen, indoor bike trainers can be a key piece of the triathlon training puzzle, especially when unpredictable weather makes it difficult to get outside.

With that, let’s check in with the Garmin Tacx NEO 3M . This comfortable smart trainer provides a more realistic ride with built-in multidirectional movement, our broadest range of power accuracy and a preinstalled 11-speed cassette. Want to simulate a descent or experience a real road feel? With the Tacx NEO 3M smart trainer, you’ve got it.

Varia Rearview Radar and Tail Light

Enhance peace of mind while training on the road. How? Own a Garmin Varia rearview radar and tail light — don’t forget the Varia RCT715 radar camera and tail light — so you can know what’s coming while you focus on what lies ahead.

Trust us when we say that once you ride with Varia, you won’t want to roll without it.

So, when you’re watching your favorite triathlete compete on the big stage, pay close attention. You may just see a Garmin smartwatch or bike computer in action. Be like the pros — train and race with Garmin.

Photo courtesy of Puurfilm

1 See Garmin.com/ataccuracy

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Triple L Global, LLC, Complainant v. SLI, Inc. d/b/a Sealink International, Respondent; Notice of Filing of Complaint and Assignment

A Notice by the Federal Maritime Commission on 08/16/2024

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• Document Details Published Content - Document Details Agency Federal Maritime Commission Agency/Docket Number Docket No. 24-26 Document Citation 89 FR 66721 Document Number 2024-18392 Document Type Notice Page 66721 (1 page) Publication Date 08/16/2024 Published Content - Document Details
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Federal Maritime Commission

• [Docket No. 24-26]

Notice is given that a complaint has been filed with the Federal Maritime Commission (the “Commission”) by Triple L Global, LLC (the “Complainant”) against SLI, Inc. d/b/a Sealink International (the “Respondent”). Complainant states that the Commission has subject matter jurisdiction over the complaint pursuant to the Shipping Act of 1984, as amended, 46 U.S.C. 40101 et seq. and personal jurisdiction over the Respondent as an ocean transportation intermediary, ocean freight forwarder, and a non-vessel-operating common carrier, as these terms are defined in 46 U.S.C. 40102 .

Complainant is a corporation organized and existing under the laws of California with its principal place of business in San Leandro, California.

Complainant identifies Respondent as a corporation organized and existing under the laws of Texas with its principal place of business in Allen, Texas.

Complainant alleges that Respondent violated 46 U.S.C. 41102(c) and 41103 , and 46 CFR 515.31 and 515.32 . Complainant alleges these violations arose from conversion of cargo ownership, withholding of information, unauthorized alteration of a bill of lading, unlawful disclosure of information related to cargo, and other acts or omissions of Respondent.

An answer to the complaint must be filed with the Commission within 25 days after the date of service.

The full text of the complaint can be found in the Commission's electronic Reading Room at https://www2.fmc.gov/​readingroom/​proceeding/​24-26/​ . This proceeding has been assigned to the Office of Administrative Law Judges. The initial decision of the presiding judge shall be issued by August 7, 2025, and the final decision of the Commission shall be issued by February 23, 2026.

[ FR Doc. 2024-18392 Filed 8-15-24; 8:45 am]

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The Long Run

A Vice Presidential Learning Curve: How Kamala Harris Picked Her Shots

As President Biden’s understudy, Ms. Harris did not often get to lead on signature issues. But she found roles to play on abortion rights, gun safety and a Supreme Court appointment.

Credit... Erin Schaff/The New York Times

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By Peter Baker and Zolan Kanno-Youngs

Peter Baker and Zolan Kanno-Youngs are White House reporters who have covered Kamala Harris for nearly four years and traveled with her to Europe, Asia, Africa and across the United States.

• Aug. 18, 2024

When a draft of a blockbuster Supreme Court decision overturning Roe v. Wade leaked in 2022 , Vice President Kamala Harris met with Ron Klain, then the White House chief of staff, in her West Wing office. He had an idea: She should lead a new task force on abortion rights.

She seemed uncertain. “Why?” she asked.

“We need a real leader, and you’re the leader,” Mr. Klain responded.

Ms. Harris asked for time to think about it. She did not want to just give a speech without substance. And she had spent much of the previous year and a half trying to avoid being typecast as the first female vice president. But as the White House began mapping out executive actions to defend access to abortion, she began to see the possibilities and accepted the role.

It was a moment that captured the essence of the Harris vice presidency. Deliberate and disciplined, cautious and at times risk averse, she saw trapdoors around her and wanted to avoid them. She considered herself a team player, but could not always be sure the team had her best interests at heart. She gravitated to issues on which she thought she could make a difference without upstaging President Biden, but was rarely promoted as a critical player in the administration.

The court’s Dobbs v. Jackson Women’s Health Organization decision eliminating a constitutional right to abortion proved to be an issue on which Ms. Harris could take the lead, one that Mr. Biden, a churchgoing Catholic, did not feel as comfortable addressing. She found her voice as the administration’s champion of abortion rights , changing some minds among Democrats who had harbored doubts about her. And she paved the way to the moment when she will accept her party’s nomination for president this week.

Ms. Harris’s record as vice president is complex, as described in interviews with dozens of current and former administration officials and allies, some of whom spoke on the condition of anonymity to avoid alienating her or the president. She has done the dutiful things she has been asked to do. She led a labor task force and a gun safety office. She traveled to places the president had no time to visit. She has been sent to deliver private messages to the leaders of Poland and Germany and to break key tie votes in the Senate.

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