The principal reason overseas assignments fail is when the employee posted abroad does not settle well in the new country, according to the latest research from the international benefits experts at Everywhen. This reason was cited by 38% of employers with overseas staff, followed by 36% who stated that the employee suffering feelings of isolation was the main reason for an overseas assignment not to succeed.
Sarah Dennis, head of international at Everywhen, says:
“Failed assignments impact a business in many ways. They’re costly, they can set a business back, and they can stop plans progressing. They can also be very difficult for individuals, impacting their mental and physical health. Support is available for relocating employees, and our research shows it’s crucial that it’s in place. Most of the reasons why overseas assignments fail are very much preventable.”
Main reason for an overseas assignment to not succeed:
| The employee does not settle well in the new country | 38% |
| The employee suffers feelings of isolation | 36% |
| The employee does not feel fully prepared for the experience | 32% |
| The employee does not feel fully supported | 31% |
| The employee does not feel fully compensated | 23% |
| The employee does not have the correct legal documents, e.g. right-to-work visa | 20% |
| The business proposition fails | 12% |
| No specific reason | 9% |
| Don’t know | 3% |
Preparation and support
Employers who provide full and rounded support for their overseas employees are likely to get the most out of their workforce overseas and, therefore, from the assignment. Indeed, the employee not feeling fully prepared for the experience and not feeling fully supported were the next most common reasons given for overseas assignments failing, stated by 32% and 31% of employers respectively.
The common expat territories are no longer just established regions like the Middle East and Singapore. Many companies are now setting up in more challenging areas, such as South America, where schooling and healthcare systems, for example, may be less familiar. Eastern Europe is now becoming a key location for manufacturing, and Africa too is a growing market. In less conventional expat areas, employees can feel more like pioneers than expats, and are likely to need support to settle and then thrive.
Sarah Dennis says:
“Trends are changing globally for overseas posts. The traditional expat territories are expanding into new and more challenging regions. For this reason, preparations before travel are imperative and greater support is often needed in-situ.”
Legal requirements
Preparing employees for working abroad is about so much more than just making sure they have a place to stay and the right visas. Although, the research shows that even this can be a struggle, with one in five (20% of) employers stating that the employee not having the correct legal documents in place, such as right-to-work visas, is the main reason for overseas assignments to fail.
Employees not feeling fully compensated
Nearly a quarter of employers (23%) stated that employees not feeling fully compensated was the main reason for an overseas assignment not to succeed. Employers would be wise to understand the financial situation in the countries they are considering sending staff to, and how this might impact their expectations of remuneration. For example, Switzerland is ranked as the best country for overall wealth – defined as a combination of positive monetary factors including high salaries, high standards of living and good opportunities for career progression. The Middle East fairs well too, with Saudi Arabia offering high standards of living and low costs of living, and the United Arab Emirates offering tax-free income. Employers need to consider the expectations of their employees and ensure they are remunerated in line with industry and regional trends, if they are to avoid issues of employee retention.
