Introduction
Telgrid Inc. is seeing an increase in demand for its office equipment. However, its Chilean factory has experienced an unexpected increase in the number of defective goods. Telgrid plans to deploy a team from its research and development department to the Chilean facility to investigate and address this issue.
This paper examines the crucial steps in the recruitment and selection of expatriates, the individuals involved, the necessary training for international assignees (IAs), the compensation plan that takes into account the differences between the United States and Chile, and the performance metrics that are appropriate for the job.
Recruitment and Selection of Expatriates for Chile
Finding suitable team members who have the necessary technical knowledge and are willing to work abroad is the first step in the selection process. According to Baird and Parayitam (2019), the selection process should focus on evaluations of “interpersonal skills/works well with others; critical thinking/problem-solving skills; listening skills; oral/speech communication skills; professionalism; and personal motivation” (p. 622). Cultural competence is essential for foreign assignments; therefore, the chosen candidates should possess the readiness and capacity to adapt to new cultures.
Key People Involved in the Recruiting and Selection Process
Counterintuitively, research suggests that involving directors in the hiring process may be counterproductive, as “directors who are part of the hiring process tend to have an overly rosy view of the person selected” (Zorn et al., 2020, p. 308). Instead, the international human resource management team and representatives from the Chilean manufacturing site should all be involved in the hiring and selection process. By including these parties, it is ensured that the chosen candidates meet the particular needs of the Chilean facility.
Training Program for the International Assignees
To prepare the selected individuals for the role in Chile, they will need specialized training. In their study, Shadiev et al. (2018) put a special emphasis on the importance of “cross-cultural learning” (p. 191). Specifically, IAs require technical training on production procedures, language competency, and cross-cultural training to facilitate easier understanding and integration into the country’s workplace culture.
Expatriate Compensation for Chile
Given the stark contrasts between the US and Chile, it is advisable to pay expats according to a balance sheet approach, a variation of the home country model.
Advantages
First, the balance sheet ensures that expatriates maintain their quality of life while working abroad. Second, it protects against wage differences that can compromise the cohesiveness of the local Chilean team. Finally, as Absah et al. (2020) point out, “the balance sheet approach is the most common approach for making expatriate payments” (p. 25).
Disadvantages
Due to changing exchange rates, the payroll administration procedure may become challenging. If not managed appropriately, this could result in complaints, low morale, or even legal disputes. Furthermore, Kim et al. (2018) argue that “to attract high-skilled expatriates, HR managers should consider using more nonfinancial rewards in addition to financial rewards” (p. 89).
Measuring Success
The primary performance metrics for this assignment should be the time required to develop and implement solutions, the defect rate of the new desk line, and the level of collaboration with the local team in Chile. Meanwhile, David et al. (2022) also point to “friendliness, helpfulness, and promotion of high team morale” as metrics that should also be taken into account (p. 49).
Conclusion
This case study utilized Telgrid Inc.’s circumstances as a model to examine key aspects of preparing a team for an international assignment. Careful selection, suitable training, and a just remuneration structure that takes into account the cost disparities between the home and host countries are all necessary for the plan’s implementation to be effective. A clear and precise set of measurements should be used to assess the allocated team’s performance. Although this strategy seems thorough and logical, the success of the solution will depend on how successfully these plans are carried out and modified to address current issues in the global context.
References
Absah, Y., Sembiring, B. K. F., & Francisco, Y. (2020). Analysis of expatriate compensation policy in multinational companies. International Journal of Business and Economy, 2(1), 25-30.
Baird, A. M., & Parayitam, S. (2019). Employers’ ratings of importance of skills and competencies college graduates need to get hired: Evidence from the New England region of USA. Education+ Training, 61(5), 622-634.
David, J., Gowan, M., DeMarr, B. J. (2022). Human resource management: Managing employees for competitive advantage. SAGE Publications.
Kim, K., Halliday, C. S., Zhao, Y., Wang, C., & Von Glinow, M. A. (2018). Rewarding self‐initiated expatriates: A skills‐based approach. Thunderbird International Business Review, 60(1), 89-104.
Shadiev, R., Wu, T. T., Sun, A., & Huang, Y. M. (2018). Applications of speech-to-text recognition and computer-aided translation for facilitating cross-cultural learning through a learning activity: Issues and their solutions. Educational Technology Research and Development, 66, 191-214.
Zorn, M. L., DeGhetto, K., Ketchen Jr, D. J., & Combs, J. G. (2020). The impact of hiring directors’ choice‐supportive bias and escalation of commitment on CEO compensation and dismissal following poor performance: A multimethod study. Strategic Management Journal, 41(2), 308-339.