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1 | Page  A Study On Repatriation Process (International Human Resource Management) Submitted To: Submitted By: Prof. Swati Shome Rashika Gupta (M0011 1)

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    A

    Study

    On Repatriation Process

    (International Human Resource

    Management)

    Submitted To: Submitted By:

    Prof. Swati Shome Rashika Gupta (M00111)

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    Table of Content

    1. Process of returning back ................................................................................. 3

    1.1 Introduction of Repatriation ........................................................................... 3

    Repatriation Process ............................................................................................. 3

    The Importance of Repatriates ............................................................................. 3

    1.2 Review of literature: ....................................................................................... 4

    Article no.1 .......................................................................................................... 4

    (Managing employee repatriation) ....................................................................... 4

    Article no.2 .......................................................................................................... 4

    (Repatriate Cultural Adjustment) ......................................................................... 4

    Article no.3 .......................................................................................................... 5

    (Repatriating Families: At Risk of Neglect) ......................................................... 5

    Article no.4 ............................................................................................................ 5

    (Going home successful repatriation of international assignees) ............................ 5

    Article no.5 .......................................................................................................... 8

    (Research Shows Repatriated Employees Often Leave for New Jobs) ................. 8

    1.3 Case Study of Repatriation: - Going Home (U.S.) ........................................ 10

    UAE Labour Law Section 15 - Repatriation of an employee ............................. 11

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    1. Process of returning back

    1.1 Introduction of Repatriation

    Repatriation is a process of returning back from a international assignment to a home country

    after completing the assignment or some other issues. Repatriation is the last step in the

    expatriation cycle and it involves readjustment and re-entry of international managers and

    their families back to their home country. Expatriation and repatriation are not two separated

    processes, rather the former is a beginning and the latter the closure. The term may also refer

    to the process of converting a foreign currency into the currency of one's own country.

    Repatriation Process

    1. Preparation: before 3-4 months of expatriate return

    Developing plans for future and info about new position

    Checklist of items before leaving (closure of bank a/c, bills etc.)

    2. Physical Relocation

    Removal of personal belongings , breaking ties with friends, colleagues before

    returning

    Re-entry training for home country's update, socio-cultural contrast orientation,

    psychological aspects etc.

    3. Transition:

    Finding accommodations, school for children, opening bank A/c etc. for comfortable

    living.

    Relocation consultants used.

    4. Readjustment

    Coping with aspects as company changes , reverse culture shock and career demands

    Example:. Repatriate returning from country where power distance is large as Thailand

    may experience stress on returning to small power distance countries like Denmark.

    The Importance of Repatriates

    The repatriate perspective, here are some of the reasons why repatriated employees are

    important:

    Expatriates can bring new and unusual approaches to cultural environment,

    information gathering, analysis of data, and problem-solving as a result of having work

    cross-culturally in an effective manner.

    Expatriates may have been more flexible, or less rigid, in changing circumstances. In

    that different approaches have been tried in other contexts, they may be able to bring

    insights and innovation to the planning process that may not have been considered

    previously.

    The repatriate who have performed at a high level in a HCN may bring a dimension of

    confidence and competence that will enhance his or her value to the company as it

    competes in a changing world market.

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    1.2 Review of literature:

    Article no.1

    (Managing employee repatriation)

    This article is related with the support practices that HR employees can consider helping

    managers develop realistic expectations about their work and non-work lives before

    repatriation, making the experience more positive and rewarding for all. In this they define

    that there are variety of ways to make contact with them.

    By defining an individual's repatriation job status early, they are less likely to worry about

    their situation and more likely to concentrate on the job in hand. As a result, they can better

    prepare for the repatriation when it eventually occurs.

    In this they also consider the impact on work and personal relationships. The change in

    interpersonal relationships between repatriates, their colleagues and friends must also be a

    significant consideration. Family members and dependants also have a huge impact on the

    success of the repatriation. So the company has to decide it is worth to doing it or not. They

    have to analyse the each factor before taking a decision regarding repatriation.

    In this article they talk about that repatriation woes can be overcome or not. Companies

    invest heavily in sending employees for the international assignment when quit within

    months and return they are facing a reverse culture shock and unable to adjust in this

    environment. Before the international placement they have to look after the factors of their

    family.

    So when people returning home after a long stint on an international assignment often find it

    difficult to adjust to the changes back home. Re-entry can bring on a certain amount

    alienation, restlessness, and dissatisfaction akin to an employee's experience when working

    in a foreign land. So at the end the organisations could give positive push to readjust in the

    company

    Article no.2

    (Repatriate Cultural Adjustment)

    This article is related with the cultural adjustment after coming back from the international

    assignment from another country. So this has been one aspect of the expatriate cultural

    adjustment process for a long time among persons working with those outbound to an

    expatriate assignment.

    In working with persons passing through the coming home process identified as repatriation,

    the author identified four stages experienced typically by those persons. Repatriates usually

    expect to come home to things as they were when they departed on an international

    assignment. It usually does not take long for a repatriate to become acutely aware. Cultural

    adjustment to one's home culture at re-entry is often more demanding than adjusting to a host

    culture.

    The employees have experienced inbound cultural adjustment after an expatriate assignment,

    so they comments on the four steps suggested for the repatriation process would be

    welcomed. If you have a corporate responsibility for expatriates and have not shared their

    experience, it is hoped these steps will equip you better for helping meet the needs of those

    employees when they go through the coming home experience in repatriation.

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    Article no.3

    (Repatriating Families: At Risk of Neglect)

    This article is related with the risk of neglect the repatriate and repatriating families. The

    author found that in working with families returning from international assignments that

    large numbers of former expatriates go through experiences when readjusting to their culture

    of origin.

    So this article they said that Repatriation Services is ready to visit with you about how you

    can do at least two things that How you can lessen or eliminate the period of trauma, or

    lessen its intensity, among those of your employee families when going through the

    repatriation experiences and Reduce the risk of forfeiting your considerable investment on

    expatriate employees by conveying to them and their families this vital message as you

    provide them resources for repatriation. 1

    Article no.4

    (Going home successful repatriation of international assignees)

    The need to support assignees as they begin international assignments is on the whole well

    understood and well provided for by the majority of global organisations, however, the topic of

    going home is sometimes overlooked, but the process of repatriation isnt always easy on the

    assignee and can result in costly repatriate attrition when you take into account the investment in an

    overseas assignment and loss of talent. (18 NOVEMBER 2013)

    The good news is that according to the Unigroup Relocation/RES Forum 2012 Global

    Mobility Survey 81 per cent of surveyed organisations have some form of repatriation

    process for long term assignees although only 53 per cent have a formal policy in place.

    Lack of repatriation process

    Some of the major issues arising from a lack of repatriation process can include:

    Reverse culture shock having become used to and engrained in the host location

    culture and way of life many expats will adjust so well that coming home requires

    readjustments.

    Lack of career progression an inability to use new skills, return to a job of similar or

    increased status and a frustration with lack of development can leave many assignees

    dis-satisfied on return home. According to the report the primary reason (64 per cent)

    1 http://www.ukessays.com/essays/international-studies/process-of-returning-back.php#ixzz2w2S7gSnR

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    for assignees leaving their organisation upon repatriation is the lure of a better career

    opportunity available externally.

    Change in salary, benefits, and adjusting to the requirement to handle their own living

    cost expenses again.

    Social re-entry re-integrating into social groups (both personal and business) when

    you dont recognise any changes in yourself or expect them in your peer group at

    home but where inevitably dynamics have shifted.

    Formal repatriation policy

    If organisation is looking at developing a formal repatriation policy here are some top areas

    to consider:

    Communicate the repatriation process at the start of the assignment so that the

    assignee and their family understand what is going to happen and alleviate concerns

    over the end of the assignment.

    Give notice of repatriation and plan early this allows you, the assignee and their

    family plenty of time to prepare for successful repatriation. According to the report 27

    per cent of organisations start planning three to six months before a proposed

    repatriation date with 48 per cent planning to two to three months in advance.

    Keep in touch throughout assignment support the assignee in maintaining work

    connections at their home location, helping them keep up to date with whats going on

    at the company, with their colleagues and vice versa. This will help reduce the impact

    of potential lack of business relationships on return.

    Plan for reintegration, including:

    1. Repatriation debriefing - depending on how closely the employee has maintained

    their relationship with their home entity during assignment it may be required to

    formally debrief in planning reintegration. What new skills does the employee

    have, how have their career goals developed? What opportunities will the company

    need to provide to retain talent on return?

    2. Provide career support According to the survey 49 per cent of respondents provide

    career support with a summary of relevant job opportunities available in the home

    country entity for employees to apply for whilst 44 per cent of organisations review

    experience and skills acquired by the employee during the assignment, and create

    relevant role to maximise the return on investment of the assignment.

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    Assist with the repatriation process

    Assist with the repatriation process this could be in terms of one off financial support (76 per

    cent provide an allowance on repatriation. Either a percentage of salary, or a fixed amount)

    or Relocation Services, for example:

    Tax Support 93 per cent of respondents provide tax return support and a majority

    also provides tax briefings

    Accommodation support - the vast majority (84 per cent) state that their organisation

    pays for temporary accommodation (majority up to 1 month) and 25 per cent provide

    house-hunting support to the whole family when required.

    Education support - exactly a quarter of respondents provide school search assistance

    for the family of the assignee if required. Its important to recognise the impact of

    reintegration into the education system on a successful repatriation for assignees

    children, take into consideration potential gaps in curriculums, social issues (such as

    culture or accents) as well as timing of school terms etc

    Cultural training to help long term assignees prepare for reverse culture shock of

    reverting to their previous ways of life, even if they dont think that they have changed

    much many long term assignees will adjust so well to a new culture that it becomes

    second nature, with their home country culture seeming alien on return.

    Shipping / Removals - safely and timely return of an assignees belongings can reduce

    the stress of returning home and allow a family to settle quickly with familiar things

    around them allowing them to feel at home.

    Departure services dont forget things like terminating leases and utility contracts,

    managing check out inventories and the other tasks involved in leaving the host

    country.

    Use the skills of the assignee to improve return on investment what can they share,

    what can the organisation learn, what skills can they add to future roles.

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    Provide on-going support readjustment support/counselling

    Support the spouse/family as well as supporting your assignee in successfully

    repatriating its important to consider the impact on the family and the negative effect

    on an employees satisfaction and performance if the family does not re-integrate so

    well. Weve already discussed education support but also consider some career support

    for working spouses and extending cultural training and on-going support to the whole

    family.2

    Article no.5

    (Research Shows Repatriated Employees Often Leave for New Jobs)

    Workers for big multinational companies who spend time on a foreign assignment have a

    higher than normal turnover rate when they come back home, and a new study suggests

    thats because they dont feel fully appreciated for their global experience.

    Home may not have changed, but it is not the same place because repatriates themselves have changed after having been expatriates, says Maria Kraimer, a professor of management and organizations in the University of Iowas Tippie College of Business who headed the research team.

    Those who take international assignments often feel fundamentally different after returning, yet they may not see their development reflected in their treatment by their firms. That tension goes beyond what could be called culture shock, Kraimer says, and leads

    repatriates to leave at a higher rate. She notes one recent study that shows 38 percent of

    repatriated employees voluntarily quit their firm within the first year of returning to

    their home country.

    The overall turnover rate is only 13 percent, and this difference considerably increases a

    firms costs for recruiting and training the kind of mid- and high-level employees who are most likely to receive international assignments.

    For the study, Kraimer and her team of researchers collected data from 112 repatriated

    employees through surveys that were emailed to them shortly after their return home,

    and then from a follow-up survey sent one year later.

    The employees worked for medium to large multinational corporations based in the United

    States, UK, Germany, and Australia, and were involved in such sectors as manufacturing,

    accounting, technology, finance, and consumer food and beverage.

    Of the 90 subjects who responded to both surveys, 17 of them had left their former employer

    for a new job, for a 19 percent turnover rate.

    2 http://www.relocatemagazine.com/relocation-articles/going-home-successful-repatriation-international-assignees-/1523

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    The researchers found that living and working overseas in a new and different culture

    changes employees in fundamental ways, to the point where many of them create whole new

    identities for themselves. This new identity has a significant international component and

    incorporates new meaning and aspirations in terms of how they approach their careers.

    Kraimer says repatriates believe this new identity makes them a more valuable employee

    than they were before they went overseas. However, the repatriates dont often feel their firms recognize that value, especially when they compare themselves to their co-workers

    with no international experience.

    When a repatriate perceives her job has less responsibility, respect, pay, or opportunities than the jobs of colleagues without global experience, the repatriate may believe that the

    organization does not view her international experience and employee identity in the same

    way that she does, Kraimer says.

    That perceived lack of respect often leads them to find new jobs.

    Kraimer says firms can take steps to reduce repatriate turnover. For instance, firms can use

    repatriates to help train other employees about to go on their first international

    assignment, or involve them more heavily to develop international strategy, both of

    which draw on the employees global experience and shows the organization values that experience.

    Firms could also more closely manage expatriates while theyre on international assignments, linking them with other divisions and maintaining close communications to

    reinforce their identity with the organization.3

    [Kraimers paper, No Place like Home? An Identity Strain Perspective on Repatriate Turnover, was published in the Academy of Management Journal. It was co-authored by Margaret Shaffer and Hong Ren of

    the University of Wisconsin-Milwaukee and David Harrison of the University of Texas]

    3 http://tippie.uiowa.edu/news/story.cfm?id=2904

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    1.3 Case Study of Repatriation: - Going Home (U.S.)

    Back home and yet Katrina had felt more like she had just left. It had been six long years and

    India had proved to be more to her. She prepared herself for the 1st international assignment

    out of the USA.

    A technical trainer by profession and she had worked for a leading medical transcription

    company for 4yrs before the international assignment. The Pre- departure training involved

    personal readings and browsing of India and Indian cultural differences and the Indian

    customs.

    When she back to USA she remembered the first week in Mysore, exploring the city,

    unfamiliar with the local language and figuring out what were appropriate questions one

    could ask in an interview. She found that the Indian team is very helpful and supportive.

    The task was very easy as she assumed. The Indian team was eager to help and assist and

    even do things for her. On the work front the task was challenging, hiring was easy and

    training was tougher and she surprised to discover a whole new dimension in the Indian

    corporate setup. Self learning sessions are replaced with the classrooms and well supervised

    training sessions, with detailed time schedule to ensure that the employees climb the learning

    curve faster.

    A year into the assignment, she married Rob her fianc of 12yrs, her college mate who was

    himself a globe-trotting sales executive for an oil company based out of the UAE. Katrina

    was pregnant and was excited to have a baby in India. Andrew was raised in a Montessori

    school and a English speaking baby sitter take care of him. Katrina had trained a team of 5

    trainers.

    After 3 yrs of stay in India, she was asked to stay for another 3 yrs and train more people.

    India operations were booming and the Indian BPO was making huge profits, Katrina never

    wanted to miss this huge event. Suddenly she was repatriated to US headquarters. After

    joining the US office Katrina felt out of place and wasn't happy to join back the same team

    and office. She was not given any assignment and no tasks were given, she was not asked

    what she was doing and to tell her what she was expected to do. Even Andrew was not

    feeling good after coming back home, at the day care centre, his friends would laugh at his

    strange accent. This all added up to Katrina's misery. Rob used to call her daily from his busy

    schedule because he was in the middle of a huge oil contract, which was important for his

    promotion.

    Katrina was under a huge stress as she had some issues in office and she could even sense the

    problems of Andrew and even Rob was not there to support her, so she used to cry after

    Andrew went to bed. This will help her to manage the stress. Rob's parents moved in and

    asked Katrina to let Andrew go with them, so that she could focus on her carrier and they can

    take care of Andrew for a while. Rob's father suggest Katrina to look for a new job as the

    skill set she had was a premium one and many company's were looking for such employees

    who had International exposure specially from some developing country. Katrina felt really

    bad in moving away from the company, as she has been with this company from last 10 yrs

    and she felt connected with the company. She never wanted to leave the company and she

    never wanted the hard work of 6 yrs to be a part of files and forgotten. She wanted to make a

    difference.

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    Result: - Readjustment part was missing in relocating Katrina back to US. Readjustment

    involves coping with such aspects as company changes, reverse cultural shock and carrier

    demands. In this case we can see that Katrina got reverse cultural shock because there she

    was not able to adjust in the US when she was back from India. She felt ignored by the

    Company and irrelevant to the team back at the US headquarters. She also had no work to do

    and no work was assign to her and no one ask her what she had done. She did not know who

    to blame.4

    UAE Labour Law Section 15 - Repatriation of an employee

    Full text of Article 15 of the UAE Labour Law Gulf News

    Published: 18:49 July 11, 2013

    REPATRIATION OF EMPLOYEE

    1. Who bears the repatriation expenses?

    At the end of the contract, an employer shall sustain repatriation expenses of the employee to

    the place of recruitment or to any other place which the two parties have agreed upon. If the

    employee served with another employer at the termination of his contract, the new employer

    shall pay the cost of the travel at the end of the service. However, if the employee is

    responsible for terminating the contract, he shall be repatriated at his own expense if he has

    sufficient means.

    2. Does the repatriation of the employee means that the employer has also to pay for

    furniture and family members?

    If the employer had paid for the travelling expenses of the employee, his family and the

    furniture or such provision as stipulated in the contract, the employer then will have to pay

    for the family and the furniture and any expenses incurred therewith. However, if at the time

    when the contract was commenced there was no agreement on payment of family

    repatriation costs or furniture shipment costs and the employer didn't pay for these at the

    commencement of the contract, the employer will not be liable to pay the same, unless the

    rules within the establishment specify otherwise.

    4 http://www.ukessays.com/essays/international-studies/process-of-returning-back.php#ixzz2vvAj1AOJ

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    3. When does the employee have to vacate his accommodation if it was provided to him by

    the employer?

    In cases where the employer provides accommodation to the employee, the employee shall

    be obliged to vacate the premises within a period that does not exceed 30 days from the date

    of termination of his services. The employee may not extend this period for whatever reasons

    provided that the employer actually pays for the following:

    The repatriation expenses as agreed.

    End of service benefits and other entitlements which are provided by the labour contract or

    the regulation of the establishment.

    In case of a dispute between the employer and the employee, the labour office must give the

    recommendation of expenses within a week from the date the complaint is filed, and inform

    the employee of the amount payable. In such a case, the 30 days will commence from the

    date the employee deposits the amount recommended by the labour office with its office as

    deposit. In a situation where the premises were not vacated, the Ministry of Labour will order

    the vacation of the premises with the assistance of the local police in the emirate concerned.

    This of course, is without prejudice to the employee's right to challenge the amount

    recommended by the labour office at the court5

    5 http://gulfnews.com/uaessentials/ask-the-law/uae-labour-law-section-15-repatriation-of-an-employee-1.1208170