Managing the relocation of staff to foreign destinations is one of the most challenging areas facing management and HR personnel today. Huge investments are made by companies to relocate staff abroad. Such investments are not only necessary to cover the logistics of expatriate relocation but also in remuneration packages, healthcare, spouse support and training.
One area of growing importance for expatriate relocation is cross cultural training. The recent publication of the GMAC, National Foreign Trade Council and SHRM Global Forum 2003/2004 'Global Relocation Trends Survey Report' highlights some interesting facts with relation to cross cultural training and expatriate relocation. Many of the findings point to the importance of cross cultural training in maximising the potential of expatriates successfully adapting and performing abroad.
Of the companies surveyed, 60% provided cross cultural training of some sort to expatriates and/or families. 26% of these had it as a mandatory part of the relocation procedure, pointing to the growing feeling within such global companies that cross cultural awareness is having an impact on the success or failure of expatriate placements.
Of the expatriates surveyed, 73% of respondents indicated that cross cultural training was of high value to their relocation, while 21% indicated it as having a medium value. In line with the findings stated above, this highlights the positive impact cross cultural training is having on expatriates.
The survey also indicated that there are certain countries that are 'emerging destinations', meaning more and more expatriates are and will be assigned to positions there. The top five emerging countries were China, the UK, Japan, India and Russia. When reviewing the comments of respondents in terms of the major challenges to expatriates in these locations, all of them cited language and culture as having an impact.
With relation to cross cultural training and expatriate relocation, the survey conclusively illustrates the importance of such training in ensuring the relocation process is successful. Of the companies surveyed, 89% cited that expatriate assignment failure was due to the inability to adapt to the host country and 90% now view cross cultural understanding as one of the major challenges to relocation success.
The message the survey gives to management and HR personnel is clear; cross cultural training is no longer a low priority luxury but a critical part of successful expatriate relocation.
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