The Role of International HR in Expatriation
Responsiblities of Human Resources and In-House Benefits
Mar 5, 2009
The role of International Human Resources (HR) is critical in the success of international assignments. Strategic approach should be adopted from the management and control of international employees to proper delegation of duties to international HR staffs.
HR Responsibilities on Expatriation
Surveys concluded that the responsibilities of HR professionals revolved around these areas:
- Headquarter HR managers all over the world mainly function as the ones who monitor costs in relation to long-term assignments. Regional HR, unit-level line managers, and worldwide headquarter line managers also provided input to arrive at the proper amount.
- In short-term assignments, the responsibility for cost monitoring is distributed more equally. The responsibility often rests on the worldwide HR and line managers’ shoulders with the assistance of regional HR managers. Unit-level HR does not provide much help in tracking the cost for such kind of assignment.
- Unit-level line managers are clearly in charge of monitoring costs for both commuters and frequent flyers. International HR does not have much involvement in cost control for frequent flyers at any level.
Several companies revealed that they have not developed a system for monitoring costs for frequent flyers, which incurs some problem for them due to the growing numbers of people sent on frequent flyers assignments. Strategic management though of this group of expatriates requires more information be provided to HR.
Despite problems abroad, companies find it necessary to send their employees to other countries. For organizations, expatriate workforce requires investment of company resources. Employees sent on such assignments often see it as an opportunity but the challenges are immense such culture adjustments and new environment.
Employers must also face the challenges of handling employees’ safety while they are on international assignment. Employers must also consider options that would benefit both the employee and company. An important decision that needs to be made is if handling the expatriate benefits should be in-house or with the help of third party expert.
Benefits extended to expatriates are not decided by one person alone. Finance, human resources and business unit leaders’ opinion must all be taken into consideration. The needs of the expatriate employee must also be considered. Problems may arise in international assignments if program designs are flawed.
A recent study undertaken by CIGNA International Expatriate Benefits, National Foreign Trade Council and WorldatWork involving program designs among 700 expatriate workers all over the world revealed that 40 per cent felt their employers did not have enough preparation for international assignment.
Also, 55 percent of the people surveyed said that information on finding proper health care in their designated places or how to handle medical emergency or security crisis threaten their peace of mind and work performance. However, 74 percent will still accept international assignment if needed.
In-house Benefits
Employers must first determine if the proper expatriate benefits plan can be met in-house. Three in-house scenarios involved:
- Total in-house support where claims are submitted and taken cared of by the company
- Combined solution where employees are taken care of by home-country plan and additional claims from employers
- Hybrid multi-local where employees avail of host-country plan and shortfall claims from the company.
There are a number of options for home or host country plans such as private insurance to insurance coverage by the State. Employer support extended to employees also differs. Employers may avail of whatever coverage without additional coverage. Others provide for supplemental coverage in cases of emergency.
Cash incentives are important tool to encourage individuals to go abroad. Less than a quarter of the companies surveyed do not offer cash incentives to employees. For long-term assignments, premiums are offered by 73 percent of the companies while only 31 percent for short-term assignments. Financial incentives help persuade families to accept international assignments.
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