The benefits of employing expats usually far outweigh the disadvantages. Expat employees typically bring a unique perspective to the workplace thanks to their exposure to best practices from more than one part of the world.
Sending employees abroad to work as expats is also a great way to kickstart your international growth strategy.
There are several reasons why companies may choose to hire expats (expatriates), individuals who are living and working in a country other than their home country. These reasons can vary depending on the specific circumstances and needs of the company.
Diversity, equity and inclusion (DEI) has become an integral part of today’s workplace. DEI is important for companies to consider, especially those employing diverse people from all over the world.
Companies use expatriate employees as part of their global expansion strategy to reap benefits such as business consistency, expertise continuity, and overcoming talent shortages. I discuss the advantages of using expats in this article.
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Related: Insider Tips and Advice from Expats Living in Scandinavia
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Specialized Skills and Expertise
Expats often bring specialized skills, expertise, and experiences that may be difficult to find locally. Certain industries or roles may require specific technical knowledge or experience that is more readily available in other countries.
But when expats move to a new country, it can affect them both professionally and personally. They must deal with issues of finding a home, schools and communicating with healthcare professionals in their new country. Cultural differences and nuances can make this process especially daunting. Therefore, it’s critical to ensure your top talent is armed with the right information to help prepare them for their move.
Consistency
Expatriates bring local office culture and processes to a new international location, helping ensure workplace consistency across markets. Since expats are existing employees, they offer deeper business understanding – a crucial component when establishing a new office in a new country.
Expats also offer greater protection for intellectual property safekeeping; sharing business secrets with new international employees could compromise a business’s competitive edge.
An expat working in a foreign office also maintains communication that is consistent with other markets where the business is located. An open line of communication with an expat in a new market makes it easier for domestic teams to do business with their foreign operation.
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Related: Conquering Challenges as an Expat in Scandinavia
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Global Perspective and Diversity
Expatriates can provide a diverse perspective and enhance cultural diversity within the organization. Their international background and experiences can bring fresh ideas, different approaches to problem-solving, and a broader understanding of global markets.
Solving Talent Shortages
Talent shortages are among the major issues facing companies. According to recent statistics, 75 percent of businesses ranking leader and key talent shortages as their top challenge. With this in mind, it becomes more efficient to relocate top talent rather than spend an extended period searching for the right talent locally.
Knowledge Transfer and Training
Expats can facilitate knowledge transfer by sharing best practices, industry standards, and skills from their home country or previous experiences. They can also train local employees and help in developing the skills of the local workforce.
Bridge Language Gaps
On a more practical level, expat employees can help businesses bridge language gaps, as they are likely to be multilingual. Data has shown that companies that invest in ethnic and cultural diversity are more commercially successful than those who fail to see the benefits of DEI.
Company Expansion and Global Presence
When a company is expanding its operations into new international markets, expatriates with knowledge of the company’s culture, processes, and values can help establish a foothold and ensure consistency in operations across different locations.
How to support diverse expats
Companies seeking to fully reap the benefits of having an expat employee on their staff will, however, need to ensure they provide them with comprehensive support.
Moving to a new country can be a stressful yet exciting experience and to certify that expats settle well into their new home, companies must provide information, pre-departure training, and local as well as ongoing support. It is also essential that those who will be managing expat employees are informed on DEI in each destination and how this may affect the employee’s move.
Another key factor for businesses to consider is the repatriation process, which can sometimes be equally jarring for expats.
The Benefits of Employing Expats, written by Tor Kjolberg
Feature image (on top): © RWE – Remote Work Europe