As companies progress and expand globally, they relocate their employees to other branches or their foreign offices. They find relocating the existing workers more fulfilling than hiring locals. An expat or expatriate is a person who permanently or temporarily relocates to the foreign countries to work in their new branches or offices.
Hiring local employees can be tricky and difficult at times. The new offices in the foreign countries can face limited local talent pool issue. The chances are that the locals may or may not have the requisite skills and talents the company is looking for. The ones who have these skills and qualities usually demand higher salaries. Hence, organizations prefer hiring expatriates. But, hiring them has both, benefits and challenges. Lets look at the pros and cons of hiring expatriates.
They follow a uniform management system
The head company has better managerial tactics and standards than its other international branches. The expats who have worked in the head company are aware of the rules and regulations, discipline activities, and standards. They can share and help maintain the same standards and rules in their other branches so that a uniform working and management style is followed
They are motivated
The expats who have moved from the head company to a new, host company are surely great at their work. They are already motivated to relocate to other countries and rebuild their lives. Hence, there is no need to motivate them like local employees.
They share information
The expats have spent quite some time in the head company and hence, they have better knowledge and experience about the business. Local employees are unfamiliar with this information. The expats can share the general as well as the technical knowledge to improve the business performance of the host company.
They are the expensive hires
Hiring an expat can be 2-3 times more expensive than hiring a local candidate. They demand a higher salary than the local employees. Their relocation cost, accommodation, taxes, insurance cover, etc. have to be taken care of by the local company. If they have a family, their expenses also have to be taken care of by the company.
Their burnout rate is high
The expats generally perform very demanding and tiring jobs. They can anytime leave their local company due to stress. Their burnout rate can be high due to several reasons. Some major reasons include being away from family and friends, isolation, bad behavior by fellow colleagues, cultural differences, and internal politics.
They can misunderstand (or create misunderstandings)
It may happen that expats may fail to understand the work culture at the local company. It is possible that the rules and regulations, and the working style of the host company could be different from that of the head company. These differences can create misunderstandings and result in tough situations.
If you are still struggling to decide whether to hire an expat or not, discuss it with the best international recruitment firm in India.