Expat Staffing
Outsourcing to other countries is a great idea if you can get quality labor for less than it costs on the mainland. However, in most cases small and medium businesses become extremely dissatisfied very quickly when they realize that you get what you pay for. So how does an enterprise save on costs while keeping quality high?
One of the ways is to hire directly from expat communities located in most mid to large centers around the globe. Whether it is Athens, Budapest, Morocco or Delhi, there are plenty of highly skilled and corporate cultured expats living abroad. Some of the biggest expat populations are from America, Canada, the UK, Australia and New Zealand. And if you are a business savvy, you can easily network and make connections with these expats.
Expats are always Looking for Opportunities
It should be known that many expats often visit a new city or country for school and end up staying due to friends and spouses they meet or cultural opportunities that are not available stateside. While many expats have excellent credentials and a Western work ethic, the only thing usually missing is opportunity. This is where a business looking to outsource projects can really benefit. Many businesses can hire high quality, educated expats for about half the cost stateside. Keep in mind, you will not get $2 per day labor , but you will save significant amount of money and still keep an extremely high level of quality. With today's Internet tools and communication devices, it is easier than ever to communicate and collaborate- even if you are on the other side of the world.
How to Connect with Expats
You might think that expats are strident individualists constantly on the road traveling from place to place. While this may be true for some, many quickly settle down for se veral years at a time and become part of the expat community. In fact, in any mid to large center around the world, you can easily find expats. Expat communities can be easily reached by expat websites, English newspapers, special expat business fairs, foreign universities and through the local US, Canadian or UK embassy.
What to Expect from Expats
For the most part expect the expat labor pool to mimic the labor pool in any large or medium city except on a smaller scale. It's true that many expats are entrepreneurial in nature; however circumstances usually force this situation. It should be noted that many businesses view this entrepreneurial attitude as a definite advantage making it easier for enterprises to reduce the amount of structure they need overseas.
Regarding costs, most expats will work for a good wage in relation to the host country's income. This means, as stated above that while they will not work for dirt cheap wage s, any wage that is respectable with the cost of living in their host country will usually be more than welcomed. For instance, many businesses can expect 30% to 70% off of tota l labor costs (considering that most businesses compensate stateside employees not only in salary, but also medical benefits, pensions, etc.). For instance, a business that pays 45K per year in the states for an accounting professional, can easily find quality, skilled labor for about 40% less (28K per year).
Articles on Expat Staffing
Cost and Planning - The Pitfalls of Expatriate Staffing Policies
Over the past ten years, the way multinational companies deal with their expatriate staff has seen a considerable shift. Not just in terms of compensation packages, but also in the way that management is chosen. Certainly multinational companies can no longer afford to be haphazard about key management planning. Planning must align with the overall company business plan and specify exactly what role management planners, recruiters, compensation specialists, and line and staff managers will play in the process of selecting employees to send abroad. The role that each of these departments play are inter linked, so individuals must work together and be aware of the strategic requirements of the business plan. HR professionals must also be more assertive in the selection process and realise the importance of their role for the global growth of their company.
Buying Expatriate Relocation Services: Real vs. Perceived Costs
From the Phoenicians to the East India Company to today's integrated, multinational corporations, sending an employee to work in another country (a "global assignment" in HR terms) has carried considerable costs while opening the potential for yet greater financial returns for the employer. However, companies that are contemplating increased expatriate placements, within their home countries (inbound) or overseas in host countries, run the risk of pennywise and pound-foolish decisions unless they are able to weigh perceived costs against real costs.
Perceived costs are easier to identify and therefore receive the most critical attention. Real costs are the sum of all direct and indirect expenses associated with the transfer. Compounding this challenge is the current state of many corporate finance systems, which are not designed to track relocation or assignment management cost data. Relocation cuts across many areas, including travel, transportation, human resources and payroll.
With tax equalisation, housing allowance, cost-of-living adjustment and other benefits, the typical expatriate compensation package is two to three times the home-country base salary. For example, an expatriate with a $100,000 annual salary will cost the employer $200,000-300,000 per year.
Shorter term assignments have lower costs, especially when they avoid taxation thresholds, so the recent trend has been more short-term assignments and extended business trips. The savings pendulum will swing the other way, however, if expatriate employees are not given enough time to accomplish their assignment's specified business objectives, whereby the position becomes a "revolving desk" lacking in continuity or operational momentum.
Additionally, if these companies with newly global ambitions have historically moved their employees domestically) using several decentralised relocation departments, they may face serious financial and regulatory risks unless they refit or re-educate organisation structures for cross-national transfers.
Informative PowerPoint Presentation on resourcing International projects.
Work-life challenges for expat managers
Whether on long or short term assignments, or extended business travel, Robin Pascoe reports that expatriate managers want more assistance from their employers in balancing home and office.
Expat Staffing Associations
ECA International is the world's largest membership organization for international human resources, serving a global network of over 4000 HR professionals in 35 countries.
The leading provider of online data, software solutions and advice for more than 1500 international companies, ECA's innovative approach has been providing cost-effective solutions to international HR management since 1971.
ECA's expertise offers all the information and support required to manage international assignments with maximum efficiency - from country briefing reports to detailed data for salary calculations to developing an expatriate policy.
ECA assists Fortune 500 companies and governments as well as expanding companies sending an employee abroad for the first time. Fast, focused and flexible, ECA's data is designed for the busy professional.
Training Courses in Expat Staffing
International Human Resource Management
Australian National University course MGMT 3025: International Human Resource Management.
This course provides an understanding of the role of human resource management (HRM) in international contexts. The course is divided into three areas of study: the context of international HRM, strategic and functional HRM in international contexts, and comparative international contexts. Specific topics include globalisation, work and labour regulation; strategic HRM issues in international contexts; issues related to host, home and third country nationals; recruitment, selection, training, development and compensation in international contexts, expatriation and repatriation. Studies of the HR context of selected countries are also included.