Expat Partner Support HR Newsletter | March 2017 Welcome to the March edition of Global Connection’s quarterly HR Newsletter. The following organisations are mentioned: HSBC, Mercer, AIRINC, Permits Foundation.
ADVANTAGES OF SPECIALISATION IN CONTRACTING Over the years we have had the pleasure of concluding many global spousal support contracts. As a result, we have seen first-hand how this field has benefited from specialisation. Here are some of our observations in this field. Purchasing department Nowadays, the actual contracting is generally performed by Purchasing departments in close cooperation with Global Mobility or HR departments, especially when the anticipated expenditure is large. Even larger contracts (e.g. over €500,000) are, however, ‘small’ for most Purchasing departments. The total expenditure of our corporate clients’ Purchasing departments often amounts to billions of euros on an annual basis.
PUSHING EXPATS OUT OF THEIR COMFORT ZONES When assigned abroad, it’s natural for expats to seek the familiar, to help them feel more at home. But does this hinder their integration into local culture? Familiarity not helpful It turns out that familiarity does more than breed contempt. It can work against the success of an assignment, according to two professors at the University of New Mexico, who aimed to assess the impact that organisational cultural intelligence (OCQ) has on ‘intent to quit’ (ITQ). They believe the more expats are surrounded by things that remind them of home, the harder a company needs to work to keep them from packing up and heading home.
Professional services Previously, many manufacturing companies left the sourcing of professional services to purchasers responsible for production related materials. Once they started with a separate department for professional services and, for example, travel, they often referred to the activity as non-product-related purchasing. However, nowadays most corporate clients have a special department for sourcing professional services, ideally even with purchasers who are specialised in HR-related purchasing. Partnership approach Professional services, especially expat partner support, require quite a different approach than production related materials. The latter are often commodities and often fungible. Lowest price is typically the main decisive factor in the purchasing choice. In the case of partner support, pricing is important but not as important as the total cost of ownership. Numerous qualitative arguments in combination with implementing a proper global coverage are often the overriding factors. Ultimately, it’s a partnership approach. Often we become an extension of the Global Mobility department. Code of Conduct However, the expat partner has no contractual agreement with the assigning organisation. Consequently, in general the Code of Conduct of the organisation is not applicable for the expat partner. This has been an incentive for us to introduce our own Code of Conduct (based on the Codes of Conduct of our clients).
Benefits of local exposure The results might be surprising to some who assumed familiar items would make being away from home more bearable or easier. On the contrary, the paper argues, organisations need to train expats to understand and appreciate the benefits of local exposure. This is no small matter for organisations when expatriate assignments require significant expenditure. What of expat partners? So do expat partners also benefit from being in a less familiar environment? It’s an interesting question to consider. More than ever before, we’re often able to find our favourite foodstuffs on the far side of the world and unwind in the evening while watching the same Netflix shows online that we would watch back home.
Advantages of professional contracting Thanks to the increased specialisation of contracting expat partner support, we are all experiencing a better, more professional, contracting process compared with the past when it was often still a ‘product related’ exercise.
Connections with host culture But as it gets easier and easier to not engage with the local culture, perhaps expat partners need to be mindful that their own assignment will benefit from shunning the familiar and seeking more connections with their host culture.
Jacqueline van Haaften
Source: University of New Mexico
Global Connection | March 2017
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