Introduction
The majority of businesses in the world are international and competitive, and more organizations are expanding their operations internationally every day. Based on Reynolds (2017), deploying the appropriate individual to the appropriate position within the organization is the aim of human resource management (HRM). There are three main categories for hiring when a company expands into a global market: expatriates, host-country nationals, and third-country nationals; each has benefits and drawbacks.
Expatriates
An expatriate sometimes known as an expat is someone who moves to another country for a short-term or long-term international employment placement. They support their companies’ international expansion, business growth, and knowledge exchange with their trade deals (Morin & Talbot, 2021). Companies gain from the process by strengthening their fundamental leadership skills and their ability to prosper in a global market.
Advantages
First, including other advantages, hiring foreigners offers organizations access to their international experiences. These individuals usually have years of experience working in a variety of countries, and they might be useful if you want to understand how other countries view the industry you work in. Local employees, who have lived and worked in one country their complete working lives, would not be able to give you this diversity (Morin & Talbot 2021). Second, because they are aware that it would be difficult to locate suitable staff in their location, the majority of would-be business owners never really launch their enterprises. It is helpful to hire expatriate staff with substantial expertise and knowledge in the sector because the foreign country where the organization seeks to grow may offer a different talent pool than the business is looking for.
Disadvantages
The first disadvantage is the difficulty in getting used to the new setting. Expatriates need extra time to adjust to their new life because they are unfamiliar with the surroundings and area (Morin & Talbot 2021). Secondly, even if hiring expats is advantageous to a business, the procedure is costly. Relocating the expat and the rest of the family to a different location can be more costly for the firm than recruiting several local staff (Dias, 2011). Lastly, the expatriates would need to familiarize themselves with the local culture. The expense of preparing an expat for cross-cultural challenges is eliminated by hiring local workers. A major problem for expatriate workers will be finding local employees because they are unfamiliar with the host country’s employment structure.
Host Country Nationals
A host-country national strategy refers to only recruiting members of the country where the business is established. Hiring a host-country national is a wise decision for many multinational corporations because they feel certain that managers with the necessary skills, knowledge, and talents exist in the nations where they do business (Yang & Pak, 2020). Specifically, host country national supervisors work directly with expatriates and enhance their work productivity.
Advantages
Firstly, employing a citizen of the host country has the primary advantage of removing the language barrier. This is because the employee is already familiar with the nation’s language hence communication is easy (Yang & Pak, 2020). Second, it is less expensive as hiring a local individual saves money on training costs as well as relocation fees. Lastly, it gives locals a chance to progress and be promoted, strengthening their dedication and drive.
Disadvantages
First, host country nationals cannot get experience outside of their origin, preventing them from moving to senior levels inside their organizations. This can promote a union of divided national units instead of a single global unit that is fully connected, which would be brought by hiring different internationals (Yang & Pak, 2020). Second, hiring a host-country national restricts an expatriate’s ability to obtain international experience. This leads to internationals from their home country having few possibilities to travel and interact with other cultures.
Third-Country Nationals
These are individuals hired from nations other than their own and the one where they live. The main argument for firms hiring third-country nationals as part of their recruitment approach is the desire of an employee to transmit economic interests and corporate innovations and expertise (Barmeyer et al., 2020). The person who could oversee this the smartest is frequently not in the home country or the host country.
Advantages
The first advantage is that, typically, TCNs are less costly to keep up with and more knowledgeable about their host country’s culture than expatriates. According to Barmeyer et al. (2020), visa fees and other hiring expenses may be less costly for foreign nationals. Secondly, foreign nationals may have a deeper awareness of the host country than expatriates do. As a result, they can find it to be easier to comprehend and collaborate with the culture and norms of the host country.
Disadvantages
One disadvantage is that national hostilities must be taken into account during transfers because, in the end, TCNs may not wish to return after assignment. Research by Barmeyer et al. (2020) shows that locals could favor their residents in managerial roles, which could impact morale or productivity. Another disadvantage is that the immigration policies implemented by the host nation may also have an impact on TCNs, and just like PCNs, they may require some time to adjust to the surroundings.
Question 2: Expatriate Training Topics
Expatriate, or expat, tasks are challenging and full of unique difficulties all through their specified assignments. Companies desire expatriates to succeed in their overseas work and remain in their postings for the predetermined amount of time because they are needed and demand a big investment (Dias, 2011). Before beginning their assignments, foreigners receive training on various subjects, including cultural awareness, adaptability, and open-mindedness.
Cultural Awareness
This is the ability of the expat to understand the community in which they are working overseas and adapt to it. This trait includes adapting to a new environment and society, having a sense of humor, and recognizing that other communities or nations may have better ideas or approaches about something than what was considered ideal in one’s country of origin (Morin & Talbot, 2021). It also includes a desire to learn about foreign cultures. It aims to promote an appreciation of the local culture so that foreigners behave appropriately or, at the very least, learn effective coping mechanisms.
Adaptability
This is the expat’s openness to experimenting with different approaches. It is critical to be motivated to produce results within the designated time frame while being flexible with the system. According to Reynolds (2017), adaptation is essential because every nation and industry has a unique method of operation. This training involves learning the host country’s language for effective interaction. This topic helps expatriates to cope with fundamental shifts in people’s cultural practices.
Conclusion
This is the ability of the expatriate to view their new surroundings with an interest in learning about and understanding it, as well as an openness to perceiving things differently. This helps in learning to be open, try new things, and accept mistakes as a way to grow. There may be no constraints, and you can thrive in any situation if you keep an open mind (Morin & Talbot, 2021). This is more important as the expats learn how to live effectively with the community and the company.
References
Barmeyer, C., Stein, V., & Eberhardt, J. M. (2020). Third-country nationals as intercultural boundary spanners in multinational corporations. Multinational Business Review, 28(4), 521–547. Web.
Dias, L. P. (2011). Ch.14 International HRM. In L. P. Dias (Ed.), Human Resource Management (Version 1.0) (p. 347). FlatWorld Knowledge.
Morin, G., & Talbot, D. (2021). Cultural intelligence of expatriate workers: A systematic review. Management Review Quarterly. Web.
Reynolds, E. L. (2017). CH.16 managing human resource globally. In E. L. Reynolds (Ed.), Human Resource Management Gaining a Competitive Advantage (9th ed., p. 115). SlidePlayer.
Yang, Y., & Pak, Y. S. (2020). Staff localization strategy and host country nationals’ turnover intention. The International Journal of Human Resource Management, 33(9), 1916–1941. Web.