MORE FACTS AND FIGURES
1. The Need For Better Preparation And Understanding
Increases in the use of expatriates for international assignments [1]:
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57% increase for Asia-based companies
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44% increase for North America-based companies
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41% increase for Europe-based companies
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$2.5billion – Estimates of indirect costs for US organizations alone due to poor international performance in terms of lost treaties, contracts, and sales; damaged reputations; unrealized profit expectations; failed mergers, joint ventures, and acquisitions; and attrition of good managers [2]
High failure and return rates for international assignees:
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55% of global managers recalled assignees for an inability to function effectively during their international assignments [3] |
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45% of managers dismissed international assignees in 1998 for inability to function effectively [3] |
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Failure rates range from 68% in Saudi Arabia to 36% in Japan to 27% in Europe to 18% in Great Britain [4] |
Most common factors in failed international assignments are [5]:
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partner dissatisfaction (27%)
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family concerns (26%)
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inability to adapt (21%)
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U.S. executives are under-prepared for global assignments:
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70% of American expatriate managers receive no preparatory training [6]
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only 20% of American assignees without special training do well [7]
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only 5% of US business negotiations with Japan succeed [7]
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Poor retention of international employees by business organizations:
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25% of returning international assignees leave the company within two years [5]
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74% of respondents provide no “reculturalization” training at the end of the assignment [3]
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71% of respondents believe there is more their organization can do to improve readjustment [3]
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Women and minority executives are poorly supported:
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38% of female expatriates cited the inability of corporate headquarters to provide them adequate support in international assignments as a barrier to successful performance [8]
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65% of women of color in management positions report leaving because employers failed to address subtle gender bias [9]
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72% of women of color leaving management positions report their companies did not deal adequately with subtle racism [9]
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2. Training And Preperation Offer Proven Success!
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70% of expatriates participate in preparatory training when it is available[5]
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81% of respondents rate this preparation as having great or high value [5]
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90% success rate by East Asian companies doing extensive preparation for international assignees [10]
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70% of leading U.S. companies have a diversity program to tear down any barriers that might exist for women and minorities [11] |
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"It costs us from
$150,000 to $200,000 a year for us
to keep a family abroad,"
Carl Burke,
manager of Human Resource Global
Services at Guidant Corp
(International Herald Tribune
1/24/04)
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