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5 Tips for Managing Successful Overseas Assignments

• Andy Molinsky
• Melissa Hahn

Stay in constant touch and have a plan for their return.

Sending talented employees overseas can be a promising way to leverage the benefits of a global economy. But expatriate assignments can be extremely expensive: up to three times the cost of a person’s typical annual salary, according to some statistics. And despite the investment, many organizations lack the know-how for optimizing the potential benefits, leaving them disappointed with the results. The unfortunate reality is that even companies providing well-crafted relocation packages (including the all-important cultural training) may not have the talent management mechanisms in place to truly leverage the valuable skills expatriate employees gain during their assignments.

• Andy Molinsky is a professor of Organizational Behavior and International Management at Brandeis University and the author of Global Dexterity , Reach , and Forging Bonds in a Global Workforce . Connect with him on LinkedIn and download his free e-booklet of 7 myths about working effectively across cultures .
• Melissa Hahn teaches intercultural communication at American University’s School of International Service. Her new book, Forging Bonds in a Global Workforce (McGraw Hill), helps global professionals build effective relationships across cultures.

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8 Tips for Preparing Expatriates for Foreign Assignments

Preparing expatriates for foreign assignments is a crucial undertaking for either expansion processes or short-term business travel. The challenge here is to ensure that the employees chosen to go work abroad do so successfully. Much of that effort will be produced by them, but even more important is for the wider company to provide support.

When moving and managing assets - in this case, your talented employees - you want to make sure that all that time and effort isn’t for nothing. You want to make sure the move is compliant and that workflows shared by your team and the expatriate employee are streamlined. 

So what do you need to focus on? Here are eight tips for preparing expatriates for foreign assignments in a successful mobility project. 

• Pre-Move Training
• Sourcing Immigration Support
• Ensure Continued Communication
• Provide Support On The Ground
• Undertake Project Alignment Meetings
• Invest in Knowledge Management
• Provide Home and Host Sponsorship
• Take Into Account Domestic Duties

1. Pre-Move Training

Preparation for expatriation is of utmost importance. This training needs to be well-researched, taking into consideration the potential challenges that employees and mobility teams might face. For example, identify:

Your potential challenges : For example, a specific country could require a specific tax set up for expatriates or business travelers. You’ll have to research the requirements that apply to your expatriation.

Strategies that help you deal with these issues: Some global organizations work with Professional Employer Organizations (PEO) in order to maintain compliance and work in line with cultural requirements. This is one potential solution that you might find appealing.

Areas for cultural training : Cultural expectations can be radically different in one country compared to another - while this may seem like the last thing to focus on, it’s worth spending time looking into cultural differences, just so no accidental faux pas are made.

The overarching goals of the assignment : An expatriation depends on all stakeholders having visibility and an understanding of the reasons for it. 

Local language training : Even if the host country has a good rate of use for your language, it’s worth helping your employee get to grips with the basics.

2. Sourcing Immigration Support

Immigration and the requirements therein are obviously crucial. Border controls, regulatory environments and immigration law are therefore all things to contend with. Now, these can be daunting and confusing, but it’s imperative to fully prepare for them, as they’re some of the first barriers to overcoming when expatriating an employee for foreign assignments. 

You need to make sure that you’re expatriation is in line with national and international immigration policy for both your home and host country. Similarly, visas and short-term or permanent residency applications need to be sent off for. Without these, alongside a considered approach towards global immigration , your overseas assignment won’t be able to continue. 

3. Ensure Continued Communication

Without communication, there’s no expansion. Home and host teams need to be on top of carrying out frequent communications, so that data is acted upon and problems can be solved collaboratively.

Assignees need to be proactive in this and so too do home teams. Communication allows organizations to leverage what’s being learned and respond actively to specific events. On top of that, communication needs to be structured so the learnings and updates shared are easily tracked. Monthly meetings and weekly check-ins are good places to start. 

4. Provide Support On The Ground

Alongside frequent communication, on-ground support also needs to be offered. This is a job for HR teams, who can help expats and their families (if applicable) adapt to their new surroundings. This kind of support covers:

• Finding accommodation.
• Creating bank accounts and setting up payroll in line with host-country regulations ( This is another obligation that a PEO can support you with ).
• Providing health insurance.
• Enrolling children in school (if applicable).
• Preparing accurate taxation processes.

Taxation is one thing to be aware of, as getting the process wrong can result in legal ramifications. Again, this is something a PEO can help support , as they can act as local Employers of Record, managing and deducting taxation at source - making sure your expatriate assignment is compliant in terms of taxation. 

5. Undertake Project Alignment Meetings

Once the critical information regarding the expatriate employee’s assignment, residency, taxation and other requirements has been exchanged with the relevant stakeholders and/or authorities, it’s time for a project alignment meeting.

This meeting should be held between the employee, a host manager or host team and home team. In it, you should identify the potential causes of friction for the assignment and work to strategize mitigation techniques. Similarly, go over mutual expectations held by the home and host team so that visibility and transparency are also captured. 

Overall, you’ll want to firmly pin down issues that may affect:

• Data collection.
• Reporting strategies.

6. Invest in Knowledge Management

Any assignment knowledge generated needs to be properly disseminated to the relevant parties, quickly and efficiently. These lessons are not only worthwhile for future expatriates, but for the wider company itself and how it approaches global marketplaces. 

When we ensure that learning is absorbed and spread across the whole enterprise, we help to reduce mistakes and delays in the future.

7. Provide Home and Host Sponsorship

As we’ve briefly discussed, having home and host teams managing the expatriate are important, but let’s cover that more in-depth. 

Communication via email isn’t the best way to manage a remote employee. To make sure the expat doesn’t feel cut off from home office processes, create teams or ‘sponsors’ that oversee the experience and work of the employee. 

Whether they be points of contact or mentors, these individuals (or wider teams) help to anchor an expat employee to the work in the home country, keeping them updated on any new developments. Both sides help to co-manage and resolve problems when they arise.

Sponsor individuals within the home country are best suited if they too have had experiences with expatriation, because a lot of this management is about empathy - not just looking for hitting the next performance goal. Expatriation is a difficult process, especially if the host country is a radically different place.

8. Take Into Account Domestic Duties

Another tip for preparing expatriates for overseas assignments is to make sure their family is supported.

Some expatriate employees have children and spouses, which sometimes do make an overseas assignment a lot more complex. These difficulties are usually hard to spot, as many employees will be reluctant to share them with employees, due to the size of the project and the personal nature of these difficulties.

It can be the case that the people most likely to be able to help are the last to know, so this is another thing that good communication can help with. From the home country team’s point-of-view, they need to inquire regularly about how the domestic side of the project is going. 

It needs to be made clear that any issues in regards to this need to be made known, but also that no judgment will arise from those issues being aired. Expatriation is a tough process for a family and businesses need to be supportive. This kind of transparency will dramatically help the overseas assignment. 

To discover more about overseas assignments and expansion, we’ve created a fantastic foundational guide that will help you when strategizing your next moves, be they domestic or international. 

The Guide to Global Expansion

There’s a lot of different info out there on the web about taking your business abroad - or even just sending an employee overseas. To help cut through the noise, our detailed guide will help your business’ journey to expansion.

Inside, you’ll discover more on expansion methods, the crucial considerations and further information on PEO. Just click the link below to get your copy.

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Tips for a Successful Start as an Expat

Choosing to accept a job offer abroad is the first big decision in starting an expat career. The transition process following that choice however requires different considerations from a standard job relocation. Moving to a new country will have an expat encounter new norms of cultural conduct, business ethics, as well as other possible unexpected hurdles which can be emotionally straining.

Although relocating to a new country provides a new set of challenges, they are certainly not impossible to overcome. For the past five years I have been an expat myself, as well as encountered countless others who have been in the same position. From what I have observed here are some helpful strategies to help guarantee a successful start and transition into life as an expat.

Learn the Local Language

Whether or not you need to be able to speak the language of your new country, learning the local lingo is an invaluable skill which allows an expat to gain back some independence, and helps to form stronger connections with the locals.

Expats sometimes feel frustrated in the beginning of their assignment because they need more help than they are used to with setting up their new home base. This reliance is usually because of language limitations. By being able to speak the local language you will be able to sort out more of his or her daily business and only need to depend on the locals for more complicated matters. This gain of independence can truly help in one feeling confident and correct with their decision to move abroad.

Being able to speak the local language also allows for forming stronger connections with the locals. It is very easy to assume that “well, everyone speaks English!” Although many people do speak fluent English, it does not necessarily mean that it is everyone’s preferred language. Coworkers and other people encountered may want to engage more with someone when he or she can also speak their native language.

Though learning a new language requires an investment in time, as well as discipline, knowing some of the local phrases and being able to hold basic conversations will help with connecting with the natives on a more personal basis, show respect for their culture, and make the expat feel more like a part of the community.

Be Open and Adaptable

Being placed in a new country is certainly a guarantee to be confronted with new ways of thinking and doing things, which may even result in a bit of culture shock. Although it is easy for the expat to start off with the assumption that they already know how to do their job, it is important to let go of this rigid mindset. Be open and adaptable to the way how things are done and approached in your new country.

Learning to embrace the new culture and customs is what sets expats apart. The ones who take the new ideas from all angles into consideration become more developed and well-rounded thinkers which overall helps them in advancing their personal growth as individuals and in their careers. Be open to new thoughts, new ideas, and new people to create a better and new you.

Develop a Support Network

Building a strong support network is an especially critical aspect for all expats in maintaining a healthy mental well-being. Being in an unfamiliar environment with many new things to learn as well as adapting to all of the changes can be very emotionally taxing on one’s psyche. Having a network of people who understand what you are going through, or at least be able to listen and provide comfort is a necessity.

Moving to a new city may mean that the expat may not immediately have local friends unless they have previously established contacts there. In the beginning phase the expat may need to initially rely primarily on friends and family at home or turn to other online communities.

Once more settled into the new life, branching out from the digital world and connecting with the people around you is important. Have lunch with your coworkers, invite them for a mid-day coffee. They do not have to be your best friends but it is good to connect a bit more on a personal and professional level to make the environment more pleasant.

When working in more solitary professions or if making connections at work is not a viable option, try to explore what is going on in your community. Seek out groups and clubs that meet your interests. Another really great way to build a support group of like-minded people is to look for a local or nearby expat group.

One of the hardest things about being an expat is when things do not always turn out as planned and frustration and impatience takes hold. While some people might be able to jump right into a new culture and immerse themselves from day one, others it takes a bit longer. Not everything is going to come together immediately — finding an apartment, making friends, learning the language, etc. — but be patient with the process and allow things to sort themselves out bit by bit.

Be patient also with yourself. Some days will be good, while others will be bad — accept that truth and try not to dwell too long.

Switching to an expat position is no regular job switch, but like any new experience, after time you will acclimate and before you know it you will adapt to not just the company culture but to the culture as a whole. The invaluable lessons you learn such as new language skills, establishing networks, and intercultural and interpersonal skills are priceless for your career development.

About Gabrielle B

Gabrielle Byko is an international communication professional who has a passion for world travel, writing about life as an expat, and promoting a sustainable lifestyle.

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The Best (and worst) Countries for Expat Job Assignments

Relocating to a new country can be a challenge. It typically means working in a different environment, with new colleagues, settling into a new city and making it home, and needing to establish a new social life. The latest InterNations expatriate survey might make it easier to decide which destination will be best for an international job assignment.

According to global market research agency Finaccord, there were roughly 66.2 million expatriates worldwide in 2017. This number has been growing at a compound annual rate of 5.8% since 2013. By 2021, Finaccord forecasts this figure will reach around 87.5 million .

The 2018 edition of the Expat Insider survey, which has now been published for the fifth time, is one of the biggest and most comprehensive studies on life abroad. Overall, more than 18,000 expatriates from across the globe participated in the survey. These nonnatives represent 178 nationalities who are currently living in 187 countries or territories.

Top or Flop?

From the survey responses InterNations created a ranking which lists the most and least desirable countries for life abroad, focusing on some critical features like quality of life, ease of settling in, working abroad, family life, personal finance, gender equality, career opportunities, digital life, and cost of living.

Remarkably, none of the G7 countries made it into the Top 15 of the survey. The highest ranking of the seven most advanced economies is Canada at position 19. Within the G20 group of nations Mexico achieved the highest scores and ranks in 4th place.

Why Become an Expat? 

Who becomes an expat  6 types of expats.

Not every expatriate moves overseas for a work assignment. Based on the survey respondents’ primary motivation for relocating abroad, the study identifies six different types of expats:

• The Optimizer: Moved for a better quality of life, finances, or political/religious/safety reasons
• The Explorer: Sought an adventure/challenge, general appeal of life abroad
• The Foreign Assignee: Sent to work abroad by their existing employer
• The Go-Getter: Found a job, started a business, or was recruited locally
• The Traveling Spouse: Moved for their partner’s job or education
• The Romantic: Love/Joined their partner in their home country

Which of these categories best describes you? Let us know in the comments below.

➡️ Read more about expat best practices, cultural adjustment, and destination support on our blog:

• The Main Ingredient for a Successful Foreign Work Assignment
• The Table of Elements for Global Business Readiness
• Culture is not shocking – unless you want it to be
• The Secret to Managing Expat Assignments for Modern Families? Start with the Spouse
• The 7 Questions You Want to Ask a Cultural Training Firm

You can download the complete report of the 2018 survey on the InterNations website.

If you are interested in learning more about cultural competence and foreign language skills, we invite you to sign up for our newsletter, The Culture Reflections . As a token of our appreciation you will receive a series of complimentary white papers on cultural competence from us! Go ahead and sign up here now and we will send you the download links to the FREE white papers via email.

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Pros and Cons of International Expat Assignment 

Are you trying to work out if a short-term international assignment is for you you may be considering applying for an opportunity or you may have an offer of an overseas role on the table, either way there’s a lot to think about. making the decision to work overseas, even in the short-term, has the potential to have long-term repercussions for your life and career., what is a short-term international assignment [sia].

A short-term international assignment is the deployment of an employee overseas to complete a task usually within a period of three months to a year.

Short-term international assignments became popular early in the millennium as a means of addressing recruitment gaps, talent shortages and focusing on strategic global projects. Their popularity grew during the financial crises as a less expensive form of global mobility.

In the post-Covid world, SIAs are a means of offering increased flexibility to employees who want to gain some international experience without committing to the traditional three to five years overseas.

Like every decision in life, there are positives and potentially some challenges when it comes to moving abroad for work.

What are the pros of a short-term  international assignment?

Opportunity to work overseas, increased experience of global marketplace, leadership potential, improved network.

Working overseas will enable you to broaden your network. While completing a short-term expat assignment you are likely to work with:

·         Global mobility team

·         Human Resources/People Department

·         Senior Management

·         Colleagues at all levels in your new office

·         A new range of stakeholders

·         Customers in a different market

Opportunity to travel 

Opportunity to learn a new language.

Depending on where your short-term assignment is based it may provide an opportunity to learn a new language. You do not necessarily need to be fluent in a language for it to have positive benefits for your career.

Attempting to speak another language allows you to engage with colleagues in your short-term home in a more meaningful and immediate way. It has also been shown to have cognitive benefits too. People who speak more than one language have improved:

·         Critical thinking skills

·         Problem solving skills   

·         Memory

Spouse can retain their career

Children can stay in their current school, what are the cons of a short-term international assignment.

Of course, any kind of change has potential negative side effects to be aware of too. What these are will depend on your circumstances, but some potential downsides may include:

1. Potential for interrupted career progression

Moving overseas may mean you are ‘out of sight, out of mind’. Depending on your company, not being around every day and difference in time zones may mean the good work you are doing is not as visible to centralised management. This isn’t always a difficulty, but it might be something to be aware of depending on your business. 

2. Pressure to deliver 

As a short-term assignee, you are likely to be under pressure to hit the ground running and achieve a lot in a short period of time. You are unlikely to have the luxury of spending the first few months settling in. There may be pressure on you to make changes quickly before you have had a chance to build relationships or get colleagues at a local level on board.

3. Culture shock

The risk of culture shock is even higher with short-term assignees because you may not have the same time to adjust as your long-term counterparts. Comprehensive pre-departure training is important, so you have as much information as possible about life in your temporary home. 

4. Expat loneliness

If you decide leaving family in your home country is the best option then there is a chance you may suffer from expat loneliness while you are away. Building new and maintaining existing relationships while overseas is really important. If you feel lonely , check whether your international health insurance has an expat assistance programme that provides you with access to a trained professional for assistance. 

5. Maintaining relationships at home

Your relationships with friends and family at home are important. Leaving may prove difficult but technology makes it easier than ever to stay in touch. 

6. Relationship issues

If you decide to take the assignment, your partner may have to remain at home for work or family commitments. This can impact your relationship . While you struggle with a new role in a new country, they are left carrying the emotional load at home and often completing all the tasks you used to help with. 

7. Repatriation

Do not underestimate the challenge of returning home once your assignment is complete . Particularly if you settled well and enjoyed the work. Changes may have happened in your home office that mean:

• You are not returning to the same role you left

• Goals and objectives may have changed since

• You may have to readjust your ways of working once again 

Agreeing to an international assignment is a big decision for a range of professional and personal reasons. We hope this will help you to work out what yours are so you can make the right decision for your circumstances. 

If you do decide to accept an assignment, don’t forget you will need international health insurance to access private healthcare should you need it while you are away.

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Expatriate Management (Best Practice Tips)

Anne morris.

• 11 April 2020

IN THIS SECTION

Managing expatriates is a multi-stage process, where each stage can be crucial to the overall success of an overseas assignment for your business, as well as the individual assignee, on both a personal and professional basis.

The following guide looks at best practice for employers when deploying individuals overseas, including some important practical tips for expatriate management, from preparation through to repatriation.

Preparing expatriates for an overseas assignment

The management of overseas assignments can be a complex process for employers and HR personnel to get right, especially when trying to balance the cost of an assignment within the shifting demands of the global business environment against the individual needs of the expatriate.

By thoroughly preparing in advance of the assignment, and by properly investing in the necessary processes from the outset, you can help to minimise wasted expenditure and unnecessary costs at a later date. This can also help to avoid any loss of revenue, and even the potential loss of top global talent from within your organisation, resulting from a failed assignment.

The level of preparation required in the expatriate management process can vary depending on the nature and length of the overseas assignment, the location of the assignment, the number of assignees involved and the individual personal circumstances of each assignee.

In broad terms, however, your pre-assignment expatriate management process should include the following.

A comprehensive assessment of the nature and length of the overseas assignment needed to meet your business objectives, having regard to the flexibility offered by various different types of assignment, from business trips to permanent relocation. This process should also be carried out in the context of any prospective candidates, their level of experience and their personal circumstances. For the novice expatriate, the option of commuter and short-term assignments may be a sensible starting point.

The provision of an adequate compensation package to adequately incentivise prospective overseas assignees, attracting the best available candidates. This should include a suitable salary that matches or exceeds the typical salary that an employee would get paid in their home country for doing the same job, together with relocation costs and a cost of living allowance to reflect any additional daily expenditure in the host location.

Implement a thorough selection and vetting procedure for prospective assignees, ensuring they are suitably qualified and capable of undertaking the assignment in question. Each assignment will present its own unique challenges and demands, so you will need to match the right person to the job, having regard to the individual needs of the assignee in the context of the specific assignment and host location. This could include formal and informal assessments of their capabilities, career aspirations, physical and mental wellbeing, and whether they are emotionally equipped to withstand any cultural adjustment.

A full assessment of any travel and legal risks prior to deployment tailored to the specific assignment, the host destination and the individual assignee(s), ensuring that you fully research the country and region in which the assignee will be working. You should also keep abreast of any imminent changes that may affect the assignment or assignee prior to their deployment.

A pre-deployment programme of training and education for overseas assignees and their families, where applicable, about the host destination. This could include cross-cultural training and language classes, as well practical information about the region or city in terms of transport, education, recreation, healthcare services, and any safety and security issues. For those travelling to high-risk destinations this should also include security briefings and training on hostile environment awareness.

Supporting expatriates during an overseas assignment

Even with thorough preparation prior to the start of an overseas assignment and through to deployment, the provision of ongoing support for an expatriate during the lifecycle of their assignment can be key to its’ overall success.

A human-centric approach should be taken to expatriate management, where absent the right personal and professional support for your overseas assignees and their families whilst abroad, this could seriously affect the outcome.

The level of support required can again vary depending on the nature and length of the overseas assignment, its’ location t, the number of assignees involved and the personal circumstances of each assignee.

In broad terms, however, your active-assignment expatriate management process should include the following:

The provision of an ongoing benefit and support program to help assignees and their families integrate into their host destination. This could include local support, where you could consider outsourcing this role to a specialist who can help novice expats to settle into their new surroundings and signpost them to different services. You should also provide key HR contacts back home to address any personal or professional problems, or in the event of an emergency.

Ensure a positive employee experience, where psychological wellbeing and happiness while on an overseas assignment is strongly linked to expatriate success. This could include the use of informal introductions, employee-centric activities and social networking events on the assignee’s arrival in the host destination to help them integrate with their new work colleagues and other ex-pat families within your organisation.

Maintaining regular contact with your overseas assignees, ensuring effective coordination between management and HR, as well as any local support team in the host destination. Through clear communication you can help to pre-empt any problems that may lead to job dissatisfaction or difficulties with cultural integration. This can also help assignees to keep abreast of any workplace changes and not feel disconnected or isolated.

The provision of quality healthcare for maintaining the physical and mental health of your employees and their families. You should ensure that you opt for an international health insurance plan that offers the assistance and protection your assignee’s may need, including access to a 24-hour helpline that can be used to answer any medical or security questions, or facilitate the provision of emergency assistance, at a time when an assignee’s usual points of contact would not be available.

Remain fully informed of any risk factors that may impact on the assignment, where even relatively safe destinations can quickly become high-risk regions due to health, safety, security, political or social reasons. You should also be able to effectively communicate any such changes and important information to assignees working remotely, especially in relation to health and safety.

The effective use of technology, including data and analytics tools to make informed management decisions in respect of overseas assignments, from cost control to key performance indicators. Further, by providing overseas assignees with the right equipment and devices to do their job can help to maximise productivity, monitor their progress and even measure the assignee experience. This should include the provision of secure wireless networks, good connectivity and up-to-date software.

Making provision for expatriates following an overseas assignment

Having successfully completed an overseas assignment, this is not the end of the process for either you or the expatriate. The repatriation process, even though this is the last step in the expatriation lifecycle, can be just as challenging as the deployment process. In many cases this will involve a process of practical, mental and emotional readjustment for the assignee, as well as their families.

The level of support required for expatriates following an overseas assignment can vary depending on how long an assignee has spent abroad, the extent of any family ties back home and the nature of any role that they will be returning to.

In broad terms, however, your post-assignment expatriate management process should include the following:

The provision of an adequate repatriation package to adequately incentivise overseas assignees to return home to work for your organisation. This should include the potential for career progression or a suitably senior role to return to home to, ensuring that you retain your top talent and benefit from their overseas experience.

The provision of other initiatives to alleviate the risk of losing key employees, including a suitable relocation package following a long-term overseas assignment to enable an employee to easily move back to the UK. The issue of costs must always be balanced against the need to retain talent to ensure the continuity and success of your business for the future. Given their international experience, expatriates are open to being headhunted by your competitors, so the cost of financial incentives must be weighed against the risk of losing them altogether.

The use of debriefing interviews to capture lessons learned from the overseas assignment, making the most of any invaluable insight and new industry knowledge the assignee has gained from their experience abroad. This will help you to develop your business back in the UK and stay ahead of your competitors. This will also give you the opportunity to explore any career aspirations and potential options available to your assignee, as well as the possibility of any future overseas assignments.

Practical tips for effective expatriate management

Although statistically there can be a high failure rate for overseas assignments, the risk of an unsuccessful assignment can be minimised by applying the following practical tips to the expatriate management process:

• Carefully consider the assignment in the context of your business goals, including the nature of the assignment and number of assignees needed Offer adequate compensation packages to attract the best available candidates, including relocation and costs of living allowances.
• Implement a thorough selection and vetting procedure for prospective assignees, ensuring they are suitably qualified and capable of undertaking the assignment in question in the host destination.
• Thoroughly research the host destination for any travel and security risks, keeping abreast of any imminent changes that may affect the assignment or assignee.
• Thoroughly prepare your assignee for deployment through a programme of pre-deployment training, including their families where applicable Invest in an ongoing benefit and support program to help assignees and their families integrate into their host destination.
• Encourage a positive employee experience through the use of informal introductions with ex-pat families, employee-centric activities and social networking events on the assignee’s arrival in the host destination.
• Maintain regular contact with your overseas assignee to help pre-empt any problems and avoid any feelings of isolation.
• Remain up-to-date with any changes in the host destination that may affect the assignment or assignee.
• Provide adequate healthcare, including access to a 24-hour helpline and the provision of emergency assistance where needed.
• Provide adequate equipment and up-to-date ways of increasing productivity, monitoring performance and staying connected.
• Provide adequate repatriation packages to incentivise assignees to return to work for you, including the potential for career progression or a suitably senior role, as well as any necessary relocation package.
• Utilise debriefing interviews to capture lessons learned from the overseas assignment and explore potential career options available to the expatriate, including the possibility of further overseas assignments.

Need assistance?

Seeking expert advice in expatriate management is often money well spent. The cost of sending employees abroad can already be significant, but the risk of losing that investment through either a failed assignment or loss of the assignee altogether from within your organisation should be weighed in the balance.

Getting it right can result in an increase in revenue, the retention of talent and the ability to repeat the process successfully time and time again.

DavidsonMorris are employer solutions lawyers with specialist experience in global mobility and supporting businesses with their international workforce needs. For advice and help with your expat management, speak to us .

Expatriate  management  FAQs

What is expatriate in hrm.

Expatriate in Human Resource Management (HRM), commonly shortened to expat, is someone living in a country different to their own for the purposes of undertaking a short or long-term overseas work assignment. This can include employees sent to manage a new office or set up a new location.

How do you manage an expatriate employee?

Managing an expatriate employee is a multi-stage process, where each stage can be crucial to the overall success of an overseas assignment for both your business and the individual assignee. Effective expatriate management should run throughout the lifecycle of an assignment, from pre-deployment preparation through to repatriation when the employee returns back home.

How do you manage expatriate failure?

In instances where an expatriate is inadequately prepared for a short or long-term overseas assignment, or where the language and cultural differences cannot be overcome, this can often lead to early repatriation. By providing support on a personal and professional level both prior to, during and after the assignment, the risk of expatriate failure can be minimised.

Last updated: 11 April 2020

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.

She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.

Anne is an active public speaker, immigration commentator , and immigration policy contributor and regularly hosts training sessions for employers and HR professionals

• Anne Morris https://www.davidsonmorris.com/author/anne/ UK Visa Fees 2024
• Anne Morris https://www.davidsonmorris.com/author/anne/ British Citizenship Fees 2024
• Anne Morris https://www.davidsonmorris.com/author/anne/ Guide to Travelling to the UK
• Anne Morris https://www.davidsonmorris.com/author/anne/ Explore Commonwealth Visa Options

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility .

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners , we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.

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Who is an Expatriate Employee?

Who are expatriate employees and are you considered one.

We’ve all been hearing this term expat employee or expatriate worker. Living abroad and working on expat assignments are part of being an expatriate employee. Sometimes, the assignments are short, and sometimes it takes more than a year. Other times, expat employees travel from one country to another to complete their job tasks. So what exactly does it mean? In this article, we will explore the definition and what exactly it is to be an expatriate employee .

Definition of Expatriate Employees

A person living/working in a country other than his or her country of citizenship is considered an expat. Expatriate employees are often working in another country temporarily. Expatriated employees are usually sent abroad by a multinational employer (profit or non-profit) on a long-term job assignment over a year. Often, the organization has to send a senior manager to oversee the operation abroad or set up a new branch office. Often, there will be local nationals in the office – which would be the employees who are citizens of the country or have been domiciled there for a long period of time.

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Understanding Expat Employees

When it comes to expat workers, they earn more than they would at home and more than local employees. Furthermore, if you’ve chosen to become an expat employee, your company will also give your expat employee benefits such as relocation assistance and housing allowance. Becoming an expatriate has a lot of benefits, from getting opportunities for career advancement and global business exposure to living abroad and exploring exotic cities and cultures.

On the other hand, it can also be a difficult transition emotionally for some expats as they will have to leave their friends and family back home and adjust to a new culture and work environment. It is also one of the main reasons companies offer higher compensation and benefits to expat workers.

Expat Employees are “Special”

Generally, expatriate employees expect and deserve higher levels of pay, international health insurance , benefits and more from global employers for a variety of reasons:

• Expats are often in high demand, and their positions are more often than not senior management level
• They fulfil essential positions abroad that are critical for your organization’s financial success
• International experience is considered to require additional income
• Expats are moving abroad by themselves, especially with their families making a big financial and emotional commitment. Picking up stakes and moving your life abroad to a new country is also a big deal.
• Expat assignments are expensive. Not only do they often get paid more, but you have to factor in costs such as housing , schools, insurance, travel and much more. A failed expat assignment can cost hundreds of thousands.
• Finding the right expat employee can be very expensive, especially if a “head hunter” is used as their fees often range between ten and twenty percent of the annual wage.

Who are Expatriate Employees?

Expat employees are professional or skilled workers in his or her profession. The employer can become an expat employee by taking job opportunities outside of their home country , either independently or through his or her employer. The employer can be a company, university, government, or even non-governmental organization. A simple example is if you are working in the Silicon Valley office, and your employer sends you to work for a year in its Hong Kong office. In the Hong Kong office, you’re an expatriate employee.

Who is NOT considered as Expatriate Employee?

Business traveller.

Business travellers are those who are still employed and have a payroll with their employers in the home country. They can be sent on short-term global mobility assignments, and their place of employment is still in their home country. For example, someone can go overseas on a business trip for a few days or longer, yet it’ll still be a short-term assignment. Most business traveling employees are going on trips in under six months. Companies should make sure they secure a robust business travel plan for their entire company if sending employees abroad for short-term trips.

Accidental expat

An accidental expat is when a business traveler stays overseas for too long, and sometimes with the host country’s law, the place of employment may shift to the host country. They may work for a year, coming home only on the weekends. In such a scenario, business travel risks becoming an accidental expatriate. In other cases, even global nomads who move from one country to another without returning home become accidental expat. The COVID-19 pandemic has certainly added a lot of accidental expats as employees traveling are now stranded in overseas locations.

Foreign hires

Other than business travelers, another type of false expatriate employee is foreign hire. Multinational companies occasionally recruit candidates from one country to work in another country. For example, contractors in the Middle East recruit laborers from Indonesia, Phillippines, and other developing Asian countries.

Another example is giant tech companies in the USA recruiting graduates from top universities in India for jobs in California. Foreign hires also include US multinational companies hiring American security guards to work in the Middle East . All these employees are considered foreign hires and not expatriate employees because their employer is in just one country. However, one may certainly disagree with this description – you might just call these valued hires ex-pats.

Expat Contractors

Some global mobility managers will not consider contractor employees if the person is sent or hired abroad for a short or long-term assignment. They are not on the company payroll and are often considered contractors or consulting employees. However, if that “contractor” is only working for your company and indeed if the contract is extended beyond a year, is he or she really a contractor? If something goes wrong or if there is a sickness or injury, that expat contractor might be seen as an employee by the courts – local or back in the home country.

Duty of Care for Expatriate Employees

We have written some articles on the global mobility manager’s duty of care. It is a hot topic in global mobility circles these days. Suffice it to say it is critical for managers to ensure that expat employees, local nationals, contractors, and business travelers are protected and well-insured. All too often, we see people sent abroad for short and long-term assignments with inadequate global healthcare coverage, disability, evacuation, and life insurance coverage on a group or individual basis.

Many expat employers do not place adequate kidnap and ransom coverage for employees in high-risk locations. This puts employees and employers at risk – either because global mobility managers are not being well-advised or the employer wants to save money. Many countries, including the USA and Canada , have issued guidelines for meeting the duty of care for overseas employees. This can extend to adequate insurance but also health and safety as well. International employers need to take a proactive stance to insure, prepare, and protect their employees everywhere.

As part of TFG Global Insurance Solutions Ltd, we can discuss your organization’s duty of care from an expat insurance specialist perspective. If your organization would like to have us examine your global benefits plan , please feel free to reach out to us today. If possible, you can send us the details on your global health insurance plans, expat census, and contracts. We have often been able to find holes in current insurance coverage that were putting employees and the company at risk.

Our firm hase been able to secure thousands in savings for clients when our firm has been appointed as broker of record for their existing insurance policy, often keeping them with the existing insurer after conducting an expat benefit plan RFP. It really makes sense to work with an expat insurance specialist firm .

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Expat Employee Benefits: Considerations for Global Employers

In today’s international marketplace, more companies are sending employees on assignment overseas or implementing a global mobility policy that allows employees to work abroad.

In fact, millions of expatriates live and work around the globe, and those numbers are only expected to rise.

As expatriate employment increases, employers must provide comprehensive expat benefits that not only help retain talent and ease the stress of relocation but comply with local labor laws.

Learn the employee benefits to consider providing to expats when sending them abroad and how to ensure compliance with international employment legislation.

Why expat benefits and compensation matter

When a business expands internationally, it often relocates employees to another country to set up a new branch, investigate the local market, or establish a business in the country.

While not all employees are assigned to work internationally long-term, those who are become expat employees in the new country, often taking their lives and families abroad with them.

Offering the right expatriate benefits and compensation is essential to ensure a smooth transition for both the employee and the company.

When expats receive a thoughtful employee benefits package , they feel valued and supported, which leads to better engagement and productivity at work. Plus, as global hiring becomes more competitive, comprehensive compensation is essential for attracting top talent.

Below are four reasons global companies should administer competitive compensation and supplemental benefits to their expatriate talent.

Employees may need incentivization

While some employees may jump at the opportunity to enjoy global mobility and relocate abroad, others might have reservations—especially if they have dependents and other commitments outside of work. An expat may have to face new challenges working abroad, including the following:

• Understanding a new culture
• Learning a new language
• Navigating foreign expenses
• Acclimating to a new way of life

Providing ample support to your employees throughout their international assignments is important. Benefits that help cover international  employee transfer burdens such as relocation costs, private healthcare, and international schooling for dependents can make the relocation offer more attractive to employees.

Relocation is stressful

Relocating to a new country is challenging and overwhelming—even for employees excited to live and work abroad. An expat may feel stress around the following situations:

• Finding safe and secure housing
• Helping their spouse find new work
• Locating a school for their children
• Performing well on the job assignment

A benefits package that includes perks like relocation assistance, flexible work hours, additional paid time off, and wellness programs may help relieve some of the stress of relocation.

Expat living has hidden costs

In addition to relocation and living costs in a different country, an expat may face additional expenses. These extra costs could include international schooling for their children, language classes, public transportation within the country, and traveling home to see family.

Stipends for public transport and monthly travel funds for visiting friends and family during time off are thoughtful perks that help alleviate the hidden costs of relocation.

Financial assistance for language courses and childcare reimbursements are also supplemental benefits to consider providing relocated employees.

The global hiring landscape is competitive

The global hiring landscape is becoming more competitive as companies look abroad to attract and retain top employees. Talent today has new work demands and is not afraid to look elsewhere when employers don’t meet their needs.

As a result, employers face unprecedented challenges with keeping their workforce intact.

To keep top expat talent, companies must provide competitive, valuable benefits and compensation—or risk losing them to another company willing to meet workforce demands.

Get our guide to learn how to retain top talent with competitive, compliant global benefits that go beyond the minimum requirements:

7 expat employee benefits to consider

To incentivize talent, relieve relocation stress, and compete in today’s hiring market, companies should consider these perks when crafting a benefits package for expatriate employees.

1. Increased salary

While an expat’s salary depends on the industry, role, and level of responsibility, it should at least match, if not exceed, the salary an employee would receive for doing the same job in their home country.

You may also want to add a location premium to their salary that acknowledges the difference in an expat’s lifestyle compared to their home country, including the cost of living, currency exchange rate, and relative hardship of the post.

2. Relocation assistance

Relocation assistance is integral to an expat benefits package for long-term assignments. An expat relocation package could include covering moving and shipping expenses, storage costs, and flights for the expat and their families relocating with them.

The employer should also consider other relocation expenses, such as driving and transport options in-country, travel for home visits during the assignment, and a pre-assignment trip for the expat to familiarize themselves with the new location.

3. Cost of living allowance

Rather than a salary increase, you might consider providing a cost-of-living allowance as a monthly stipend for the expat to use on necessary goods and services.

This type of allowance is beneficial when the cost of living in the expat’s host country is higher than in their home country. It reflects any additional daily expenditure in the host country so the expat can maintain their ideal living standard.

4. Schooling costs

An expatriate package might also provide an education allowance or cover the cost of schooling for an expat’s children. International schools specifically cater to expat communities.

Compared to the host country’s local school options, international schools often follow a different curriculum and offer a higher standard of education, provide fewer language barriers, and ensure the expat’s children can continue with a similar curriculum to their home country.

5. Subsidized housing

A benefits package that provides housing or accommodations while finding somewhere to settle is a critical incentive for expats relocating abroad with their family on a long-term assignment.

Expats desire access to safe and secure housing that is ideally located near other expats, offers a relatively short commute to work, and is close to international schools.

6. Cultural training

An expat benefits package should also include support services that help the expat better integrate into their host destination. Examples include cross-cultural education before deployment and language courses if the expat does not speak the language of the country.

7. Supplemental health insurance

Quality supplemental health insurance is a high-priority benefit for expat employees. While many countries have adequate national healthcare coverage, others, like the United States, don’t provide universal healthcare .

Plus, many national healthcare schemes don’t cover costs for services like dental and vision care or extended maternity leave.

For example, public healthcare in Mexico is relatively inexpensive and accessible for expat employees, but the quality of care often depends on where your talent resides, and it doesn't cover dental care, eye care, elective surgeries, infertility treatments, treatments for self-inflicted injuries, or several preexisting conditions.

It’s the employer’s duty to ensure the health and safety of their employees. A benefits package that offers comprehensive supplemental health coverage is a must-have for expats living in the U.S. and overseas.

Compliance risks when administering benefits abroad

Expat benefits must not only be competitive but should also adhere to local employment laws. Employment law differs greatly from country to country, so employers must ensure the benefits they offer are globally compliant . Some compliance risks include the following:

Varying statutory requirements

Every country has its own legislation that governs and protects employee entitlements. Employers must understand and comply with local statutory requirements to avoid financial and legal penalties. Some statutory benefits that differ around the world include:

• Annual leave and sick leave
• Medical insurance
• Overtime pay

Incorrect payroll contributions

Payroll contributions also vary per country, and employers must correctly calculate contributions to ensure payroll compliance and avoid risks. Some differing payroll contributions that relate to benefits include:

• Social security
• Health insurance
• Workers' compensation
• 13th-month pay

Improper benefits tax reporting

Some jurisdictions require employers to report fringe benefits on official tax forms to the local authorities. They may also need to withhold or pay taxes on certain fringe benefits.

Employers should keep track of taxable fringe benefits provided to expats and correctly report them to the proper tax agencies. Should you fail to correctly file these reports, the local tax agency may levy penalties and even assess interest on past-due taxes.

Simplify compliant benefits administration for expats

Administering tailored benefits for expats in multiple countries is time-consuming and expensive for HR teams. It also requires advanced proficiency in labor law. Avoid the headaches and compliance risks by working with a global benefits partner like Velocity Global instead.

Our Global Benefits solution offers competitively priced benefits packages that accommodate a wide range of expat needs and comply with market-specific regulations. We remove the HR complexities so you can relocate and support talent in more than 185 countries with ease.

Celebrate your expatriate employees with top-shelf benefits that matter. Contact Velocity Global to learn more.

Related resources

Paid Maternity Leave By Country: The Complete Guide for Global HR Teams

Guide to Maternity and Paternity Leave in The Netherlands

8 Countries With the Best Healthcare for Employees

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Family Support: Underestimated, but Essential

In many ways, their needs exceed those of the international staff.  Departing employees may have a whole system working to their benefit, including host country workers, supervisors, and other foreign staff ready to greet them on their first day of work. But the family of the expat? When mom, dad, husband, or wife walks out that door for their first day of work, their family is left behind to fend for themselves.

This is an important but underserved group – the children, spouses, and other dependents of the staff on assignment.  Below, learn about work-family conflict and its consequences for staff, families, and employers.  Then discover the distinct challenges facing employees abroad departing with and without their families and how HR can help them overcome these challenges.

Challenges When Families Accompany the Expat on Assignment

What work-family conflict is and how it affects employees abroad.

Work-family conflict occurs when work and family demands collide.  Some scholars suggest that the family environment is more important to an international assignee’s success than on-the-job skills.  Similarly, expatriates may quit or depart their international assignment early when family members are unhappy in the host country.  Some scholars go so far as to identify this as the leading cause for early termination of an international assignment.

Foreign families on assignment must identify schools for children and work or other activities for a spouse.  Just as the international staff member must adjust to a new culture, so too must the family members.

All of this may lead to stress and in turn work-family conflict.  In addition, let’s not forget that the workplace itself is often a source of very real stress for the employee. As we’ve seen, rates of failure are high as foreign staff struggle to adjust to new job responsibilities.

Much as we might like to draw a sharp line dividing our work and family lives, the reality is that there is a crossover effect.  This means that emotionally we bring our homes into our workplaces, and we take our workplaces back to our homes.

Amidst this conflict, employees may respond by detaching either from their family obligations, their work obligations, or some of both.  As rates of work-family conflict increase, for instance, employees work fewer hours and miss work more often.  They also may shift their focus from work to family issues.  The employee and family members alike may experience reduced well-being, including declining marital satisfaction for the parents.

These results are not intended to discourage employees from moving abroad with their families.  This is a problem that, according to one study, affects about one in five expats moving with family.  The rest report either positive or neutral experiences.  However, there are numerous areas in which spouses and their families are regularly dissatisfied.

Let’s look, then, at the ways that HR can support expats and their families.  We’ll begin with the area that may most often contribute to marital strife: children.

Accompanying Children

International schools, often English-speaking, are available in most countries around the world for the children of international employees.  Parents may require support identifying the various school options, choosing the best, and following through with enrollment.  Trailing spouses surveyed by researchers reported widespread concern about the disruption the move had caused to their children’s education, for instance.  Even more were concerned about their children’s loss of social ties and friendships, with just 7% unconcerned by such losses.

Many parents also fret over the cost of international schools. These are private, tuition-charging schools which can be pricey even in otherwise inexpensive countries.  First-time staff on overseas assignment may not realize the extent of these costs.

What can HR professionals do?  Ideally, foreign staff will have their children’s school costs fully subsidized, though not all organizations offer this benefit. Regardless of coverage, however, HR pros can help reduce stress by transparently outlining what will and will not be covered in the overseas assignment compensation package.

In addition, HR can do some of the groundwork on behalf of their employees.  Which schools do parents have to choose from?  What are the pros and cons of each?  And, to help children socialize and integrate, which schools are other international co-workers sending their children to?  These are just some of the answers that expats and their spouses may have – and to which HR can have answers at the ready.

Read Also: Expatriates: Choosing the Best International School

As a final point, it’s worth noting a not-altogether surprising finding: the most stressed staff were those on a foreign assignment with children but without a spouse.  HR should spend additional time addressing challenges with these staff members before departure, during assignment, and on repatriation.

For instance, childcare options may be especially vital for these employees.  Organizing get-togethers between expat families is another great option to consider, as this can help prevent children from feeling socially isolated in their new homes. In addition, these employees may require additional vacation time so that they may accompany their children on flights back home.

Of course, children are not the only source of angst.  Spouses, too, must overcome a set of challenges in their new homes.

Accompanying Spouses and Partners

The scholar Paul van der Laken writes that as “family members experience a disruption of their established social network, they often experience feelings of isolation, loneliness, depression and stress.”  Other research shows that over 90% of all expat partners were concerned about the loss of friendships and their distance from family.

One solution to this issue can be local employment for the trailing spouse.  This not only offers obvious financial benefits but can help them integrate into the local culture.  Yet, studies show that too many spouses must fend for themselves in new countries. As few as 10% received assistance finding work, according to one study.

Without support, many previously employed spouses fail to find work abroad.  Those that do report lower rates of job satisfaction. In one study, only 8% of working spouses expressed complete satisfaction with their work. A mere 2% indicated that the new job worked well with their family life.

Read Also: How to Avoid and Overcome Trailing Spouse Syndrome

This is unfair to the accompanying spouse. It is damaging to the international employee who experiences increased work-life conflict. And it is harmful to the organization.  One staff member on assignment, for instance, described to researchers a “weakened long-term commitment [to the organization] because of [the] heavy price paid by family.”

Research also suggests that many potential expats choose not to volunteer for international assignments due to concerns about the professional impact on their partner.  LGBT employees may also resist international assignments given the broad scope of potential challenges they face – including but not limited to finding work for their spouse in certain LGBT-unfriendly countries.

Organizations can assist in several ways.  They may work with the spouse to find employment befitting their skills and experiences.  They may also hire the spouse themselves.  This is more common in developing countries or in countries with limited opportunities for employment.  For instance, spouses of diplomats in the US Foreign Services are regularly employed within the Embassy.

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Challenges When Family Stays Behind

A family separation.

Not all expatriates travel with their families, of course.  In the US, around 30% go on assignment without the company of their families.  Among East Asian workers on assignment, the number rises to about 50%.

I spoke, for instance, to Chinese employees on multi-year assignment in Kazakhstan.  Due to a combination of company policy and personal preference, all had left their families behind in China.  This, the Chinese expats explained in a series of interviews, was a product of a culture that emphasized not just the nuclear family but the broader family as well.  Many spouses were caring for – even living with – their elderly parents.  Their children would continue bonding not only with siblings but with nieces, nephews, and even more extended family members.

This focus on extended family also justified accepting the international assignment. As one explained, “I work overseas, so I have [a] better salary. When I was young I live in a very poor family. If I earn more, I can [help] my father, mother, and my wife have a better life.”

In addition, finding adequate Chinese language education facilities for their children abroad proved an insurmountable barrier to many of these parents. This is an issue for many non-English speaking foreigners, especially those working outside of major, globally connected cities.

While far from their families, these expatriates still are subject to work-family conflict.  In fact, the very distance between them and their families can be a source of tension.  For these employees, therefore, HR must step in to provide support of a different kind.

Organizational Support for Families Back Home

In the case of the Chinese expat I spoke with, they reported that their organization had responded forcefully to support both them and their families.  To help reduce loneliness, the foreign staff lived in comfortable corporate housing.  They had their own cleaners, a restaurant with free Chinese restaurant-style food, personal security, transportation services, access to sports clubs, and other perks.  This created a camaraderie between them which offered the possibility for deep friendships among their coworkers.

In fact, many described these relationships as the highlight of their international assignment.  One staffer explained that “we are single here.  Our [co-workers] are our family.  We have relationship[s] with them. We go together, shopping, for a walk, things like this.”

This policy may not be exactly replicable for a traditional western organization, in which employees tend to highly value privacy and independence.  It does however offer insight into the types of social practices that organizations can support to ensure employees feel connected to one another at a time when their families are far away.

The employees I spoke with also received generous leave allowances. They worked in 3-month intervals, followed by a full month off for a total of 90 annual vacation days.  Most staff I spoke to rushed home the moment their assignments ended. As one young father explained, “When I have vacation [time], I will spend all my time with my family. If it’s not necessary, I will not go out. Not for the club, not to [socialize] with friends. Only with my daughter and with my parents.”

Expats even reported that their company’s leaders back home would periodically check in on family members. They would ask if the family needed anything and do their best to provide it. The company also assisted family members with medical issues, for instance by finding a good doctor or overseeing emergency room visits.

The result, according to most of those I spoke with, was satisfaction with their work and gratitude towards their employers. Indeed, the lengthy duration of their assignments was noteworthy, extending to seven years in one case.

However, this feeling was not universal.  One explained that he regularly experienced loneliness, “and I have to face it by myself.  [There is] no one [I] can talk to.”  He went on to worry that “for the family, we can do nothing.  Like my daughter, some days ago was ill, and [went] to the hospital.  I [could do] nothing, only be very sad here. But I cannot help.”

This example demonstrates that even with extensive organizational support, HR must remain compassionate to the very real struggles that many of their staff will face.  Providing benefits and tangible support is of course a key element in helping employees on overseas assignment and in reducing sources of work-family conflict.

To that end, organizations should follow the example of this Chinese organization in ensuring that family back home and employees on assignments are cared for.  Ultimately, however, we must not lose sight of the fact that expats and their families are facing immense disruptions to their lives. While many flourish, others need more than just a robust policy – they need a friendly face and a helping hand.

This article has not presented a comprehensive list of challenges that expat families may face – a list that would be long indeed.  But education and employment, as well as issues relating to safety, security, and healthcare, are among the most common challenges faced by these families.  So, if you haven’t already, review your checklist one last time – and make sure that support for your employee’s family is near the top of that list.

Related Articles

• Expatriate Selection: Lessons From the U.S. Peace Corps
• Understanding and Preventing Expat Failure
• The 5 Best Countries to Work in for Expats

About the Author

Dr. Thomas J. Bussen, with a Doctorate of Business Administration, JD, and MBA, is an Assistant Teaching Professor at Miami University’s Farmer School of Business, and a former professor at the African Leadership University and the American University of Central Asia.  He is the author of several books, including  Shaping the Global Leader  and  Compliance Management: A How-to Guide . His latest book,  Enlightened Self-Interest: Individualism, Community and the Common Good , makes the case for a more inclusive and equitable professional mindset and is expected for release in 2023 with Georgetown University Press.

Sources and Further Reading

Anderson, B. A. (2001). Expatriate management: An Australian tri-sector comparative study. Thunderbird International Business Review ,  43 (1), 33-52.

Forster, N. (1997). ‘The persistent myth of high expatriate failure rates’: a reappraisal.  International Journal of Human Resource Management ,  8 (4), 414-433.

Guzzo, R. A., Noonan, K. A., & Elron, E. (1994). Expatriate managers and the psychological contract.  Journal of Applied psychology ,  79 (4), 617

Lin, C. Y. Y., Lu, T. C., & Lin, H. W. (2012). A different perspective of expatriate management.  Human Resource Management Review ,  22 (3), 189-207.

Takeuchi, R. (2010). A critical review of expatriate adjustment research through a multiple stakeholder view: Progress, emerging trends, and prospects.  Journal of management ,  36 (4), 1040-1064.

Van der Laken, P. A., Van Engen, M. L., Van Veldhoven, M. J. P. M., & Paauwe, J. (2019). Fostering expatriate success: A meta-analysis of the differential benefits of social support.  Human Resource Management Review ,  29 (4), 100679.

Wang, C. H., & Varma, A. (2019). Cultural distance and expatriate failure rates: the moderating role of expatriate management practices.  The International Journal of Human Resource Management ,  30 (15), 2211-2230.

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Structuring Expatriate Postings

Multinationals inevitably post expatriates abroad. But in setting up expat postings, employers too often either ignore the question of how best to structure the expat assignment or else they struggle with the expat structuring issue. The reflexive or default approach to structuring expat assignments is simply to grab whatever expat assignment package got used for the last expat posting, change the names, make some tweaks and move on. But this approach is dangerous. When posting an expatriate, focus instead on the most ideal structure for the particular assignment.

Expatriate assignments traditionally came about when a multinational tapped an employee and assigned him to go off to work abroad for one of three reasons: to support a foreign affiliate, as a broadening assignment, or to serve as a “foreign correspondent” performing tasks overseas for the benefit of the home-country employer. But multinationals these days increasingly see these traditional expatriate assignments as less effective.

The wider range of expat postings we see today raises ever more questions of expatriate assignment structure. How best to structure a given expatriate assignment requires addressing four topics:

• Who is, and is not, an expatriate?
• Understanding the four expatriate structures.
• Selecting among the four expatriate structures.
• Expatriate agreements.

Who Is, and Is Not, an Expatriate?

It is always dangerous, and almost always needlessly expensive, to structure a nonexpatriate’s employment as if he were an expatriate. Before structuring any expatriate assignment, first verify whether the candidate really is a business expatriate.

Broadly speaking, an “expatriate” is anyone who lives in a foreign (non-native) country. Relevant for our purposes, a business expatriate is an employee originally hired by and working for a multinational in one country whom that employer now reassigns to work temporarily abroad in a new overseas place of employment. A business expatriate always expects to return home—to be “repatriated”—at the end of the assignment. An overseas assignee with no expectation to repatriate is a “permanent transferee,” not a business expatriate.

Watch out for false expats—internationally mobile employees who are not genuine business expats and who should therefore not get structured as expats. For example, some short foreign postings and assignments get staffed by business travelers who, as mere travelers, are not genuine expats. A business traveler remains employed and payrolled by his home-country employer entity, and his place of employment remains his home country. The traveler goes abroad to render services, sometimes on a “posting” or “assignment” of several months that requires a visa or work permit. But his time working abroad is short enough that the host country never becomes his place of employment, not even temporarily.

When a business traveler stays overseas long enough, as a matter of host-country law his place of employment shifts at some point to the host country. He then becomes a so-called “stealth expat” or “accidental expat.” Stealth/accidental expat status is an internal misclassification that triggers legal problems under host-country immigration, payroll and employment laws, as well as “permanent establishment” issues. Multinationals should of course be careful to classify stealth/ accidental expats as actual business expatriates. On the other hand, multinationals should also be careful not to classify mere business travelers as business expatriates.

Another example of a false expatriate is the foreign hire. Multinationals often recruit candidates in one country for jobs in another country. For example, American multinationals recruit security guards and technicians in the United States to work jobs overseas on compounds in the Middle East or oil fields in Africa. And Silicon Valley tech companies recruit graduates from universities in India to come stateside to work jobs in California. These are foreign hires, not business expats—these employees may be emigrants and they may need visas to work in their places of employment, but they are not business expatriates because all their work for the employer is performed at one place of employment in one country. Some foreign hires get to participate in rich company expat benefits plans, but—contrary to a widespread misunderstanding among human resources professionals—eligibility under a company’s expat benefits program does not convert a foreign hire into a business expatriate.

Always clarify internally who is, and is not, a genuine business expatriate. Never structure nonexpats (like business travelers and foreign hires) as expats, even if they get to participate in an expensive expat benefits program.

Understanding the Four Expatriate Structures

Only genuine business expatriates should get structured as expats, but how best to structure an expat assignment? There is no one single best way to structure an intracompany business expatriate posting because there are four viable types of expat structures. Different circumstances point multinationals to select various options among these four. And yet in one way or another, all business expatriates end up falling into one of these four categories: direct foreign posting, secondment, temporary transfer/localized, and dual-/co-/joint-employment.

Direct foreign posting. In a direct foreign posting, a business expatriate remains employed and payrolled by the home-country employer entity but his place of employment shifts to a new foreign host country. The expat renders services directly for the home-country entity, not for a local host-country affiliate. Direct foreign postings are easy and attractive to set up, but compliant ones are rare, because host-country immigration and payroll laws make this a fragile status tough to structure legally.

Secondment. “Secondment” means “employee loan.” Not all secondees (lent-out employees) are expatriates, and not all expatriates are secondees. In an expatriate secondment, the expat remains employed by his home-country employer entity. He moves abroad to a new host-country place of employment and starts rendering services for a new host-country employer entity, usually an affiliate or joint venture partner of his home-country employer. The secondee might be payrolled by either the home or host-country entities, or by both (via a split payroll). Some secondees stay on the home-country payroll while the host-country entity issues a “shadow payroll” to comply with local payroll laws.

Temporary transferee/localized. An expatriate transferee, also called a “localized” expat, moves abroad and gets both hired and payrolled by a new host-country employer, often an affiliate or joint venture partner of the home-country employer. The transferee resigns from his home-country employer and simultaneously signs on with the host-country entity, which usually extends retroactive service/seniority credit. While working in the new host-country place of employment, the transferee renders services exclusively for the new employer without retaining any lingering employment relationship with the old home-country employer, other than perhaps a side-letter or e-mail addressing post-assignment repatriation expectations. Yet an expat transferee’s localization is temporary; he expects some day to repatriate and get relocalized at his original home-country employer location.

Dual-/co-/joint-employee. A dual-/co-/joint-employee expatriate is an expat who simultaneously serves two masters, the home and host-country entities, essentially on a moonlighting basis—one employee simultaneously working two jobs, or working one job actively while retaining status as “on leave” from another employer entity. A dual-/co-/ joint-employee expat may be payrolled by either or both employer entities via a split payroll.

Selecting Among the Four Expatriate Structures

With these four distinct expat structures, the question becomes: Which of the structures is most appropriate for a given expat assignment? Answering this is a lot like selecting among business entity structures—sole proprietorship, closely held company, publicly traded company, limited liability company or partnership. We actively select the best business entity structure each time based on specific needs—not on how we may have structured some other entity at some time in the past.

So with expat assignments, always select the most appropriate of the four expat structures for the particular assignment, without regard for whatever may have been the best selection last time. Your last expat may have gone off to a country where you have an already-operating host-country entity affiliate, whereas this current expat may be off to a place where you have no on-the-ground infrastructure. Or your last expat may have participated in your company expat benefits program, whereas this current expat may be transferring abroad for personal reasons that render him ineligible for a company package. Or your last expat may have gone abroad to serve an overseas affiliate, whereas this current expat may be off to work as a foreign correspondent directly for the home-country entity. In posting a given expat abroad and selecting among the four expat structures, factor in three sets of variables: immigration laws, payroll law compliance and corporate tax presence. How these three variables play out as to any given expat posting will point to the structure most appropriate for the particular expat assignment.

Expatriate Agreements

Having selected the most appropriate of the four types of expatriate structures for a given expat assignment, a multinational next needs to decide how best to memorialize (document) its expat assignment. There are two very different kinds of expat agreements: an expat assignment agreement between the expat and the employer and an inter-affiliate assignment agreement between a home-country employer entity and a host-country affiliate entity, to which the expat is not a party. Document an expat assignment using one or both agreements, as appropriate.

Donald C. Dowling is a partner in the New York office of White & Case.

Republished with permission. © 2013 White & Case. All rights reserved.

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What Is an Expatriate?

Understanding expatriates.

• Retiring Abroad

Foreign Earned Income Exclusion

Foreign tax credit, expatriation tax.

• Pros and Cons of an Expatriate

The Bottom Line

• Taxpayer Types

Expatriate (Expat): Definition, With Pros/Cons of Living Abroad

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Lea Uradu, J.D. is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer.

Investopedia / Julie Bang

An expatriate, or expat, is an individual living and/or working in a country other than their country of citizenship, often temporarily and for work reasons. An expatriate can also be an individual who has relinquished citizenship in their home country to become a citizen of another.

Key Takeaways

• An expatriate is somebody who has left their country of origin in order to reside in another country.
• Expats may leave home for work reasons and seek more lucrative employment in a different country.
• Expatriates may live for a while overseas or completely renounce their citizenship of one country in favor of another.
• Retiring abroad has become an increasingly popular option.
• The IRS may impose an expatriation tax on individuals who renounce their citizenship, usually based on the value of a taxpayer's property or income in the United States.

An expatriate is a migrant worker who is a professional or skilled worker in their profession. The worker takes a position outside of their home country, either independently or as a work assignment scheduled by the employer, which can be a company, university, government, or non-governmental organization.

If your employer sends you from your job in its Silicon Valley office to work for an extended period in its Toronto office, you would be considered an expatriate or "expat" after you arrive in Toronto.

Expats usually earn more than they would at home, and more than local employees. In addition to salary, businesses sometimes give their expatriate employees benefits such as relocation assistance and housing allowance. The expat will need to open a local bank account that will allow them to function in their new home.

Living as an expatriate can be exciting and present an excellent opportunity for career advancement and global business exposure, but it can also be an emotionally difficult transition that involves separation from friends and family while adjusting to an unfamiliar culture and work environment. Hence, the reason behind the higher compensation offered to these migrant workers.

Special Considerations: Retiring Abroad

Much expatriation occurs during retirement. While most Americans spend their retirement in the U.S., a growing number are opting to retire overseas . People are motivated to relocate abroad at an older age for several reasons , including lower cost of living, better climate, access to beaches, or some combination of those and other reasons. However, it can also be tricky to navigate taxes, long-stay visas, and the language and cultural differences experienced when settling down in other countries.

Popular retirement destinations include countries in Central and South America, the Mediterranean, and parts of Europe.

A common choice presented to a retiree expat is between permanent residency and dual citizenship. Note that neither dual citizenship nor residency gets you out of filing a U.S. tax return every year. It is both surprising and burdensome, but Americans still have to pay income taxes wherever they live, and they owe it no matter where their income was earned.

You may also have to file an income tax return in your country of residence, although most deduct the amount American residents pay to the U.S. via treaties that minimize double taxation.

If you're a retiree or near-retiree who's on the fence, you face a tough decision that will require some soul searching and research—and maybe a trip abroad (or several) to test the waters before you make any decisions.

For Americans working abroad as expatriates, complying with United States income tax regulations is an added challenge and financial burden because the U.S. taxes its citizens on income earned abroad. To avoid double taxation , the U.S. tax code contains provisions that help to reduce tax liability . Taxes paid in a foreign country can be used as a tax credit in the U.S., which when applied against the expat’s tax bill, reduces it.

The Foreign Earned Income Exclusion (FEIE) , for example, allows expats to exclude from their tax returns a certain amount of their foreign income, which is indexed to inflation. For 2023, this amount is $120,000. For 2024, it is $126,500. An expat that earns, say $180,000 in 2023 from their job in a foreign country that is tax-free will only need to pay U.S. federal income tax on $180,000 - $120,00 = $60,000.

The FEIE does not apply to rental income or investment income. Therefore, any income made from interest or capital gains from investments will have to be reported to the IRS. The Foreign Tax Credit (FTC) is a provision that ensures expats are not double-taxed on their capital gains.

For example, assume an expat falls in the 35% income tax bracket in the U.S. This means their long-term capital gain on any investment is taxed at 15%.

Since the FTC provides a dollar-for-dollar credit against taxes paid to a foreign country if the expat paid 10% tax to the country where they work, they'd only have to pay 5% tax to the U.S. Likewise, if they pay no tax to the foreign country, they’ll owe the full 15% tax to the U.S. government.

If the income tax paid to a foreign government far exceeds the amount of the credit (because the foreign tax rate far exceeded the U.S. rate), the expat will forfeit that amount. The credit, however, can be carried into the future.

An individual who has renounced their citizenship in their home country and moves to another is also referred to as an expatriate for tax purposes and is subject to an exit tax known as expatriation tax .

According to the Internal Revenue Service (IRS), the expatriation tax provisions apply to U.S. citizens who have renounced their citizenship and long-term residents who have ended their U.S. residency for tax purposes, if one of the principal purposes of the action is the avoidance of U.S. taxes .

This emigration tax applies to individuals who:

• Have a net worth of at least $2 million on the date of expatriation or termination of residency
• Have an average annual net income tax liability that is more than $190,000 if the expatriation date was in 2023 ($201,000 if the expatriation date is in 2024) over the five years ending before the date of expatriation or termination of residency
• Do not (or cannot) certify five years of U.S. tax compliance for the five years preceding the date of their expatriation or termination of residency

Advantages and Disadvantages of Becoming an Expatriate

Living and working in another country for an extended period of time can have its benefits. These can range from new experiences and adventure to more practical considerations like a lower cost of living or being closer to extended family abroad. Depending on where you settle, you may also get government perks like free healthcare and education and more favorable taxation.

There are also some potential drawbacks. Regarding taxation, unless you fully relinquish your American citizenship, you will still need to file tax returns each year and may need to pay taxes to Uncle Sam, even on income earned in your new country.

You'll also be a long way from home, potentially. This can make seeing friends and family more difficult, and time zone differences can also interfere with finding a good time to link up by phone or video chat. Learning a new language and customs can also be difficult for some, and certain items or products that you like may not be available where you live. And remember that not all countries enjoy the same level of political and economic stability that the U.S. does.

New experiences and maybe a better climate

Potentially lower cost of living

Potential access to affordable healthcare

Potential for double taxation

Long way away from friends and family

Language, cultural, political, and economic barriers

Potential challenges securing the proper visa

What Does It Mean to Become an Expatriate?

An expatriate or "expat" is somebody who leaves their country of origin and settles abroad for an extended period of time, often permanently.

What Is Expat Taxation?

Americans living overseas still have to file U.S. tax returns unless they relinquish their American citizenship. Several international tax treaties exist to help minimize double taxation.

What Is an Expat Community?

When people relocate to a foreign country, they often find comfort in seeking out other foreigners, especially from their home country. Expat communities are enclaves of people from a similar national origin, often with their own school and shopping options. In many countries, English-speaking enclaves are called "Anglo" communities.

Expats typically have to navigate a complex web of tax rules and regulations, which can be challenging to understand and comply with. Though retiring abroad to a lower cost of living, there are retirement considerations to comply with. In addition, expat U.S. Federal taxes are complicated, though they may rely on tax credits and income exclusions to receive favorable U.S. tax treatment.

Bonache, Jaime, and et al. " The Interaction of Expatriate Pay Differential and Expatriate Inputs on Host Country Nationals' Pay Unfairness ." The International Journal of Human Resource Management , vol. 20, no. 10, October 2009, pp. 2137.

The Wall Street Journal. " Americans are Saving Money by Retiring Overseas ," Slide 2.

International Living. " The World’s Best Places to Retire in 2023 ."

World Economic Forum. " The World's Best Retirement Destinations Might Surprise You ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 3.

Internal Revenue Service. " Tax Treaties ."

Internal Revenue Service. " IRS Provides Tax Inflation Adjustments for Tax Year 2024 ."

Internal Revenue Service. " Foreign Earned Income Exclusion ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 15-16.

Internal Revenue Service. " Foreign Tax Credit ."

Internal Revenue Service. " Topic No. 409, Capital Gains and Losses ."

Internal Revenue Service. " Foreign Taxes that Qualify for the Foreign Tax Credit ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 24.

Internal Revenue Service. " Publication 519, U.S. Tax Guide for Aliens ," Pages 23-24.

Internal Revenue Service. " Expatriation Tax ."

Internal Revenue Service. " 26 CFR 601.602: Tax Forms and Instructions; Rev. Proc. 2023-34 ," Page 21.

Internal Revenue Service. " 26 CFR 601.602: Tax Forms and Instructions: Rev. Proc. 2022-38 ," Page 19.

Internal Revenue Service. " Publication 519, U.S. Tax Guide for Aliens ," Page 24.

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