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Four Considerations for Expatriate Assignments

Moving people around the world is a necessary part of doing business in a global economy. Many large companies have been doing this for a very long time. Newer companies entering the global marketplace may find it necessary to have an employee on-site, to look after their interests in another country. If your company is considering setting up expatriate assignments, here are four considerations to keep in mind.

It’s Complicated

The world of global compensation, and dealing with the details of payrolls, taxes, retirement, and deferred compensation is highly complex, and can’t be covered in any detail in this blog post. Before heading very far down this road, you’ll need to work with legal and tax specialists to make sure that you are meeting the requirements of all national and international laws that apply. However, we can cover the major considerations for handling an expatriate assignment, which are:

• Selecting the correct employee;
• Understanding the international assignment;
• Deciding which compensation approach to use; and
• Understanding the different tax laws that apply.

Selecting the Correct Employee

According to Brian Friedman, the founder of The Forum for Expatriate Management, in the past, the employees selected for expatriate assignments were typically those who were failing in the home office. It was thought they might have a better chance of success overseas, or maybe it was a case of getting a little distance from the problem. Today, however, that is no longer true. Due to the expense and impact potential of overseas assignments, the “best and the brightest” are being selected.

According to the Society for Human Resource Management (SHRM), employees should be selected according to the goal of the assignment (i.e., if the job is technical in nature, an engineer is needed). However, the job skill set is not the only issue that needs to be considered. As SHRM states, “ Achieving the company’s goals in the host country hinges on that person’s ability to influence individuals, groups and organizations that have a different cultural perspective. ” Thus, selecting for these abilities is as important as any specific technical skill. And while you may think only younger workers are interested in traveling, it’s important to note that there is an increasing number of baby boomers willing to take overseas assignments.

Understanding the Assignment

Friedman et al. and SHRM both emphasize the importance of understanding the assignment. What exactly is the company trying to accomplish? Is this a short-term assignment or a multi-year assignment? Does it make sense to have multiple positions overseas, or would a “global nomad,” someone who is willing to move from country to country, suffice?  Or, can locally-hired individuals do the trick?

Having a goal for the return on investment (ROI) is also important. What are the financial goals? Can the person accomplish an adequate return, given the cost of an assignment, which, depending on the location, can easily top $1 million?

Deciding Which Compensation Approach to Use

There are five approaches to use when compensating expatriate employees, as listed below.

• The Balance Sheet: This approach is used in almost 75% of expatriate employee cases worldwide. The main emphasis of the balance sheet is to pay an overseas employee comparably to incumbent employees in the same or similar positions in the home country. The expatriate should neither gain nor lose, from a monetary perspective. This can be determined for both home-based and office-based scenarios.
• Negotiation: This is the most straightforward approach. The two parties simply find a mutually-agreeable package. However, negotiating every position can become time-consuming and expensive, and may lead to problems of comparability if you have multiple expatriates involved. Negotiation is most often used for special situations, or in organizations with only a few expatriates.
• Localization: Localization involves basing the expatriate’s salary on the host country’s pay scales. This approach provides for cost-of-living allowances, which can be applied to taxes, housing, and dependents. Advantages of localization include ease of administration and providing equal footing with local nationals. Disadvantages include the need for negotiated supplements, and paying on the basis of local economics rather than on the basis of the assignee’s performance and job responsibilities.
• Lump sums: In this method, the expatriate is offered a sum of money, based on the home country’s system for determining a base salary. The employee can then determine how much he or she wants to spend on travel, moving, housing, etc., rather than having the company provide these things. A disadvantage to the lump sum approach is having to calculate the amount, which usually involves a complex and time-consuming analysis. This approach is usually used for one- to three-year assignments.
• Cafeteria: Used for senior-level expatriates, the cafeteria method offers the expatriate a selection of options to choose from. These might include the use of a company car or company-paid tuition for the expatriate’s children. There is, however, a limit to the number of options and amounts to be offered. This approach is similar to the lump sum method.

Understanding Different Tax Laws

It would be nice if the entire world operated under the same tax law, but it does not. Understanding tax laws in the country your employee will be working in is critical. Questions to ask include the following:

• Are there limits on the amount of time the expat can be in the country before local tax laws apply?
• Is the tax rate based on the individual’s country of citizenship or his or her country of residency, or both?
• Are there tax equalization agreements between the two countries?
• What are the standards, if any, for dealing with deferred compensation?
• Do the laws allow for a “tax gross up”?

These are just some of the many considerations you should keep in mind when entering the world of expatriate employment. Take the time to study the complexities of your specific situation, and be sure to seek the help of legal and tax professionals, to ensure the success of your expatriate assignments.

I think every company before planning to relocate their employees overseas must have a ready expatriate policy at hand. This policy should include not only the monetary basics mentioned in the article, but also such thing as medical insurance (the necessity for immunization should be discussed with the employee), also the holidays should be discussed – whether an employee should observe host or native country holiday schedule – there are too many things to be included in the policy and I won’t be able to mention all of them here.

Every company wants their expatriate to improve the state of things and drive their business to success. However, too often, the selection criteria for those who are sent abroad is simply whoever has the necessary business skills or is available or willing to go. These factors are important, but a person’s ability to build relationships across cultures should not be overlooked, because even if the business requirements are a good match for a given candidate it does not mean that this candidate will succeed in a different country.

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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.

Woman on beach resting in hammock and working on laptop

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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What is Expatriate?

Expatriate is a term used to describe an employee who is temporarily or permanently assigned to work in a foreign country. Expatriates may be assigned to work in a foreign country by their company, or they may be sent to work in a foreign country by their government. Expatriates may be assigned to work in a foreign country for a variety of reasons, including to gain experience working in a foreign country, to learn a new language, or to gain knowledge about a foreign culture.

What are the benefits of expatriate assignments?

There are many benefits of expatriate assignments for both the employee and the employer. For the employee, expatriate assignments can offer opportunities for growth and development, as well as new and exciting experiences. They can also provide a chance to learn about a new culture and to improve foreign language skills. Additionally, expatriate assignments can offer a higher salary and a variety of benefits, such as tax breaks and allowances.

For the employer, expatriate assignments offer the chance to send employees to new and challenging assignments, which can help to develop their skills and knowledge. Additionally, expatriate assignments can help to build a global network of contacts, which can be beneficial for the company. Additionally, expatriate assignments can be cost effective, as the employee may be able to claim tax breaks and allowances.

Who uses Expatriate?

Expatriate is used by human resources professionals to describe employees who are temporarily assigned to work in a foreign country. These workers may be sent by their company to work in a new office or to support a project in a foreign country. Expatriates may also be transferred to a new position in a foreign country.

How do you build an expatriate program?

There is no one-size-fits-all answer to this question, as the best way to build an expatriate program will vary depending on the company’s needs and goals. However, some tips on how to build an expatriate program include:

• Establish a clear purpose for the program. Before creating an expatriate program, it is important to establish a clear purpose for it. What are the company’s goals for the program? What do they hope to achieve by sending employees abroad?
• Define the target audience. Who will the program be aimed at? Is it for senior executives only, or will it also include lower-level employees? Defining the target audience will help to determine the specific criteria that employees must meet in order to be eligible for the program.
• Establish eligibility criteria. In order to be eligible for an expatriate program, employees must meet certain criteria. Establishing clear eligibility criteria will help to ensure that only the most qualified employees are chosen for the program.
• Design a comprehensive selection process. The selection process for an expatriate program should be comprehensive and rigorous. It should include a review of the candidates’ skills and experience, as well as their personal and professional goals.
• Create a comprehensive training program. Once employees have been selected for an expatriate program, they need to be properly trained for their new role. The training program should include information on the company’s culture and business practices, as well as on the specific country where the employee will be working.
• Develop a support system. An expatriate program is only successful if there is a strong support system in place. This includes a network of mentors and advisors who can help the employee adjust to their new surroundings.

Why do you need an Expatriate program?

The modern workplace is a global one, and businesses need to be able to operate in multiple countries in order to be successful. In order to do this, they need to have employees who are able to work in different cultures and who have the skills to navigate different business environments. An expatriate program is a way to identify and recruit employees who have the necessary skills and cultural understanding to work in a foreign country. It also provides a way for businesses to support their employees as they move to a new country and help them to adjust to their new surroundings.

Where should you post your expatriate jobs?

There are a few different places to post Expatriate jobs. One popular site is Indeed.com. You can also post directly on company websites or job boards. Another option is to use a staffing agency that specializes in finding candidates for international positions.

Related Terms

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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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Enhancing expatriates’ assignments success: the relationships between cultural intelligence, cross-cultural adaptation and performance

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• Published: 20 July 2020
• Volume 41 , pages 4291–4311, ( 2022 )

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• Ilaria Setti 1 ,
• Valentina Sommovigo   ORCID: orcid.org/0000-0001-9273-5706 1 &
• Piergiorgio Argentero 1  

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Today’s increasingly global marketplace is resulting in more organizations sending employees to work outside their home countries as expatriates. Consequently, identifying factors influencing expatriates’ cross-cultural adjustment at work and performance has become an increasingly important issue for both researchers and firms. Drawing on Kim et al. ( 2008 ), this study examines the critical elements to expatriate success, which are the relationships between cultural intelligence, cross-cultural adjustment at work, and assignment-specific performance. One-hundred and fifty-one expatriates working within the energy sector, who were mainly located in the Middle East completed questionnaires, investigating: cultural intelligence ( Cultural Intelligence Scale ), cross-cultural adjustment ( Expatriate Adjustment Scale ), performance (Expatriate Contextual/Managerial Performance Skills ), cultural distance (Kogut and Singh’ index), length of staying in the host country and international work experience. Findings indicated that the four cultural intelligence components were directly and indirectly (through cross-cultural adjustment at work) associated with performance. The positive relationship between motivational cultural intelligence and cross-cultural adjustment at work was stronger when cultural distance was low, when expatriates were at the beginning of a new international assignment, and when they had lower experience. Organizations can greatly benefit from hiring cross-culturally intelligent expatriates for international assignments, providing their employees with pre-departure training programs aimed at increasing cultural intelligence, and giving them organizational resources and logistical help to support them.

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Introduction

As globalization of trade encourages multinational corporations (MNCs) to operate in different geographic environments (Sambasivan et al. 2013 ), talent mobility has become one of the key channels through which to develop global organizations’ competitive advantages (Tarique and Schuler 2010 ). This requires the presence of a cross-culturally competent workforce that can manage overseas subsidiaries and liaise with foreign affiliates (Froese and Peltokorpi 2011 ). In this context, expatriates are considered as invaluable assets by MNCs (Wu and Ang 2011 ). Consequently, there have been numerous calls in psychology (e.g., Mol et al. 2005 ) for more research aimed at identifying the psychological factors driving expatriates’ cross-cultural adjustment and performance.

In this context, cultural intelligence (CQ) represents an interesting variable since it is a malleable capability which can be developed through cross-cultural experiences (Chao et al. 2017 ) and specific trainings (Leung et al. 2014 ). CQ is defined as “an individual’s competence to function and manage effectively in culturally diverse settings” (Ang and Van Dyne 2008 , p. 3). CQ is conceptualized as a multidimensional construct which includes four main components: metacognitive CQ (i.e., cultural awareness), cognitive CQ (i.e., cultural knowledge), motivational CQ (i.e., motivation and self-efficacy in functioning in diverse cultural settings), and behavioural CQ (i.e., adoption of appropriate behaviours during cross-cultural interactions). Scholars have called for more research on the CQ dimensions (Ang et al. 2011 ) as the four CQ components have been differently associated with specific intercultural effectiveness outcomes (see Rockstuhl and Van Dyne 2018 for a review).

This study responds to this call by analysing the relationships between specific CQ dimensions, cross-cultural adjustment (CCA; i.e., psychological comfort in a foreign country; Black and Gregersen 1999 ) at work and assignment-specific performance. This latter construct, which refers to the ability to accomplish certain assignment specific tasks (e.g., replacement planning; Caligiuri 1997 ), was chosen in this paper as main dependent variable because successfully executing assignment-specific duties is frequently the main constituent of success, which is evaluated by the home office (Earley and Ang 2003 ). Aside from performance, this study focused on work CCA, namely the extent to which expatriates become psychologically comfortable handling assignment duties and meeting performance expectations (Chen et al. 2010 ; Shaffer et al. 2006 ). Work CCA is one of the three dimensions of CCA, together with general (i.e., general living conditions) and interaction (i.e., interactions with locals) components (Black et al. 1991 ). This paper concentrated on work CCA as it is more predictive of performance than the other CCA dimensions (Chew et al. 2019 ).

The role of overall CQ as a meaningful antecedent of overall CCA (e.g., Chen et al. 2014 ; Rockstuhl and Van Dyne 2018 ) and job performance (e.g., Malek and Budhwar 2013 ; Ramalu et al. 2012 ) has been identified, whereas the literature on the role of the four CQ facets in facilitating work CCA is less consistent (e.g., Ott and Michailova 2018a , 2018b ). The literature on the effect of CQ on performance indicates an intricate association between the variables, the relevance of the specific CQ dimensions, and the role of work CCA in this association (ibidem). Thus, while some researchers found a direct positive CQ-performance association (e.g., Chen et al. 2011 ; Lee et al. 2013 ), there is also evidence that the impact of CQ on performance may be mediated by work CCA (e.g., Jyoti and Kour 2017a , 2017b ; Lee et al. 2013 ).

Additionally, a closer look to the literature on the boundary conditions under which specific CQ dimensions may enhance work CCA and, in turn, assignment-specific performance reveal numerous gaps. To fil this gap, this study aimed to analyse how and when specific CQ facets were more - or less - likely to facilitate assignment-specific performance. To this end, this paper concentrated on cultural distance (CD, i.e., the extent to which the culture of destination differs from expatriates’ home country on various values; Shenkar 2001 ), length of stay in the host country and work international experience. Indeed, although some studies analysed the moderating role of CD in the relationships between various individual features and outcomes in the expatriation area (e.g., Chen et al. 2010 ; Zhang 2013 ), the research on the effect of CD on the association between CQ dimensions and work CCA remains limited. Moreover, even though some studies demonstrated that the length of residence in the local country influenced both CQ (e.g., Li et al. 2013 ) and CCA (e.g., Ramalu et al. 2010 ), no previous research, to the best of our knowledge, has investigated the enhancing effect of length of stay on the association between specific CQ assets and work CCA. Furthermore, though some investigations showed that work experience played a moderating role in the CQ-CCA relationship (e.g., Lee and Sukoco 2010 ; Jyoti and Kour 2017a , 2017b ), no study, to our knowledge, has considered the moderated mediated effect of the four CQ dimensions and work experience - through work CCA - on assignment-specific performance.

Therefore, our research questions are as follows: do the four CQ dimensions directly and indirectly, through work CCA, impact on assignment-specific performance? And what are the effects of CD, length of stay in the host country and previous international experience with regard to this? In answering these questions, this paper drew on Kim et al. ( 2008 ) which presented, for the first time, propositions that delineated the relationships between CQ, CCA and performance analysing them together, so that scholars and practitioners could reach a better understanding of each of these. The authors proposed that overall CQ – conceptualized as the result of its four components – would be directly and indirectly, through each of the three dimensions of CCA, associated with overall performance. Additionally, the authors suggested that the CQ-CCA relationship would be positively moderated by CD, so that such relationship would be stronger when CD would be greater.

The main contribution of the present work is to extend this model by analysing whether specific dimensions of CQ – rather than overall CQ - were related to assignment-specific performance – rather than overall performance. Moreover, this research moves an important step forward in the expatriate literature as it identifies, beyond CD – as proposed by the model - other understudied boundary conditions for CQ effects (i.e., work experience and length of stay in the host country).

In doing so, the study was undertaken on the relatively under-investigated population of expatriates working within the energy sector in the Middle East for several reasons. First, some Middle East countries, such as the United Arab Emirates (UAE), have experienced unprecedented growth over the past years (Bealer and Bhanugopan 2014 ). Second, such nations remain relevant economic hubs in the Middle Eastern region, that attract numerous expatriates from Western countries (ibidem), especially within the energy sector (Finaccord 2018 ). For instance, in 2017 Saudi Arabia hosted the largest number of expatriates, whereas in the UAE expatriates constituted the 87.8% of the total population (ibidem). Nevertheless, only a few studies have concentrated on this population. Third, since most of our research respondents were from Latin America, the subsequent national cultural dissimilarities were likely to result in significant CCA difficulties. Thereby, we contribute to literature surrounding organizational behaviour and psychology as well as international human resource management.

In the next section, we provide theoretical arguments for the reasons why each of the four CQ dimensions might be uniquely posited to contribute to expatriates’ assignment-specific performance and work CCA. We describe each component in more detail, and we give rationale for the mediating role of work CCA. Subsequently, we present conceptual logic for our proposed effects of CD, length of stay in the host country and international work experience in the association between specific CQ components and work CCA. After that, we present the sample investigated and the methodology adopted. Then, we report the results and discuss our findings. Finally, we present theoretical and managerial implications, limitations, and suggestions for future research as well as conclusion.

The Relationship between CQ Dimensions and Expatriates’ Assignment-Specific Performance

The construct of CQ attracted ever-increasing attention since other existing formulations of intelligence, such as emotional intelligence (EQ) or social intelligence (SI), do not provide a comprehensive explanation in culturally diverse situations (Groves and Feyerherm 2011 ). Indeed, both EQ and SI are culture bound, such that although these two forms of intelligence may enable individuals to better understand social situations, this does not turn automatically into successful CCA (Caputo et al. 2018 ). Thus, individuals who have high EQ and SI in one culture may not easily adapt to cross-cultural interactions due to misinterpretations of culture-specific situational cues. Conversely, CQ is culture free and regards a general array of abilities particularly relevant on settings characterized by cultural diversity.

Drawing on Kim et al. ( 2008 ), CQ is related to expatriates’ performance, such that culturally intelligent expatriates may successfully function across cultural settings. We present below conceptual logic for our proposed relationships for each of the CQ dimensions with performance, describing each component in more detail.

Meta-cognitive CQ refers to an individual’s level of conscious cultural awareness of - and control over - cognitions during cross-cultural interactions. Self-awareness and cognitive flexibility can promote expatriates’ performance by facilitating their understanding of culturally appropriate role expectations (Ang et al. 2007 ). Indeed, individuals high in meta-cognitive CQ are better at adjusting their existing knowledge to meet changing environmental demands (ibidem). Thus, they can compensate for cognitive capability when previously acquired knowledge is unreliable, avoiding potential problems. Additionally, in unpredictable situations, their meta-cognitive skills provide them with a means by which supplement the lack of overt cues (Fernandez-Duque et al. 2000 ). This may stimulate the adoption of effective solutions to perform well (Tobias and Everson 2002 ). Meta-cognitive CQ may also facilitate expatriates’ performance by enhancing intercultural creative collaboration (Chua et al. 2012 ), conflict management (Caputo et al. 2018 ), decision-making and task performance (Ang et al. 2007 ) as well as knowledge transfer from headquarters to subsidiaries (Vlajčić et al. 2019 ). Thus, we expected the following:

Hypothesis 1a: meta-cognitive CQ will be positively related to assignment-specific performance.

Cognitive CQ refers to an individual’s general knowledge of norms, practices, and conventions in foreign countries gained from personal experiences and education (Ang et al. 2007 ). Expatriates high in cognitive CQ possess sophisticated mental maps of culture, which allow them to anticipate similarities and differences across cultures (Brislin et al. 2006 ). As a result, they may perform well in foreign workplaces because their in-depth knowledge about diverse cultures enables them to reach a greater understanding of cultural expectations. Additionally, such knowledge leads them to adopt culturally appropriate behaviours by facilitating decision-making, cultural judgment (Ang et al. 2007 ), intercultural negotiation (Groves et al. 2015 ), conflict management (Caputo et al. 2018 ) and knowledge transfer from headquarters to subsidiaries (Vlajčić et al. 2019 ). Thereby, we expected the following:

Hypothesis 1b: cognitive CQ will be positively related to assignment-specific performance.

Motivational CQ refers to individual’s ability to direct attention to understand cultural diversity and maintain energy concentrated on learning about - and operating in - new cultural settings, even when situations are challenging (Ang et al. 2007 ). Expatriates high in motivational CQ are motivated intrinsically and by their efficient beliefs of adaptive capabilities to interact with colleagues from different backgrounds (Templer et al. 2006 ). As a result, they may direct their energy toward learning role expectations, positively coping with problems, and striving to address challenges. Motivational CQ may also facilitate expatriates’ performance by easing intercultural collaboration and negotiation (Chua et al. 2012 ), communication effectiveness (Presbitero and Quita 2017 ), integrative information behaviours (Imai and Gelfand 2010 ), and conflict management (Caputo et al. 2018 ). Therefore, we formulated the following hypothesis:

Hypothesis 1c: motivational CQ will be positively related to assignment-specific performance.

Behavioural CQ reflects the individual’s ability to communicate in a culturally sensitive way and exhibit culturally appropriate (verbal and non-verbal) behaviours when interacting with people from other cultures (Ang et al. 2007 ). This involves having a wide repertoire of overt behavioural responses which fits to a variety of cross-cultural situations, in addition to using culturally appropriate words, body language and conversation style (ibidem). Expatriates high in behavioural CQ can choose appropriate verbal and physical actions when interacting with locals (Ang and Van Dyne 2008 ). This behavioural flexibility may help them to enact culturally appropriate role-related behaviours and meet assignment-specific expectations (ibidem). This may reduce miscommunications and enhance performance (Ng et al. 2012 ; Rose et al. 2010 ). Accordingly, behavioural flexibility was positively related to task performance within intercultural environments (e.g., Chen et al. 2011 ), conflict management (Caputo et al. 2018 ), and intercultural negotiation effectiveness (Groves et al. 2015 ). Then, we hypothesized the following:

Hypothesis 1d: behavioural CQ will be positively related to assignment-specific performance.

The Relationship between CQ Dimensions and Expatriate Adjustment at Work

In line with Kim et al. ( 2008 ), culturally intelligent individuals are better able to adjust to the host country because they are more likely to gain appropriate emotional and informational support through interactions with locals. Then, CQ represents an important factor driving expatriate CCA which may explain individual dissimilarities in adapting to foreign contexts. We provide below theoretical arguments for the reasons why each of the CQ facets might be uniquely positioned to contribute to work CCA.

To date, relatively little research has been conducted to analyse the relationship between meta-cognitive CQ and work CCA, producing mixed results. Indeed, whereas some investigations have found that meta-cognitive CQ exerts a positive influence on work CCA (e.g., Lin et al. 2012 ; Guðmundsdóttir 2015 ), other studies have revealed a nonsignificant effect (e.g., Jyoti and Kour 2015 ; Jyoti et al. 2015 ). Expatriates high in meta-cognitive CQ tend to reflect on cultural dissimilarities before a cross-cultural interaction and develop action plans for how they will interact with locals. This planning prompts cultural learning, problem-solving and interactions with host colleagues, which may reduce uncertainties related to expatriation and, then, facilitate work CCA (Earley and Ang 2003 ; Earley et al. 2006 ). Thus, we proposed the following hypothesis:

Hypothesis 2a: metacognitive CQ will be positively related to work CCA.

Whereas some studies have identified a positive influence of cognitive CQ on work CCA (e.g., Konanahalli et al. 2014 ), other investigations revealed a non-significant association between the two constructs (e.g., Jyoti and Kour 2015 ). Expatriates high in cognitive CQ have a greater understanding of cross-cultural differences (Brislin et al. 2006 ): they are better able to use their cultural knowledge in making decisions and thinking strategically to overcome transition problems. This, in turn, may improve their ability to adjust to the new workplace (Van Dyne et al. 2012 ). Thus, we expected the following:

Hypothesis 2b: cognitive CQ will be positively related to work CCA.

Expatriates high in motivational CQ are more psychologically prepared to adjust to the work demands expected in culturally diverse workplaces (Chen et al. 2010 ). Thus, they have confidence in their capabilities and intrinsic motivation to adjust to new workplaces (Palthe 2004 ) and display newly learn behaviours (Black et al. 1991 ). This may stimulate their involvement in culturally different modes of working and the accomplishment of their assignment objectives (Lin et al. 2012 ). Accordingly, empirical evidence supported that motivational CQ is positively associated with expatriates’ work CCA (Jyoti and Kour 2015 ; Jyoti et al. 2015 ). Thus, we predicted the following:

Hypothesis 2c: motivational CQ will be positively related to work CCA.

Whereas some studies have revealed that behavioural CQ was non-significantly (e.g., Huff et al. 2014 ; Konanahalli et al. 2014 ) or negatively (e.g., Guðmundsdóttir 2015 ; Malek and Budhwar 2013 ) related to work CCA, other investigations have found a positive association between the two constructs (e.g., Ng et al. 2012 ; Ramalu et al. 2011 ). Expatriates with greater behavioural CQ can use culturally appropriate expressions in communication, in addition to flexibly adapting their behaviour to create comfort zones for the other individual(s) involved in cross-cultural encounters (Earley and Peterson 2004 ). The ability to make such adaptations is likely to result in better work CCA because it facilitates communication with host colleagues, reducing the risk of cross-cultural misunderstandings (Ang et al. 2007 ). Therefore, we hypothesized the following:

Hypothesis 2d: behavioural CQ will be positively related to work CCA.

The Relationship between Expatriates’ Work CCA and Assignment-Specific Performance

When expatriates can successfully adjust to the work domain, they are less stressed and, then, have more personal resources to invest in job duties. In this case, they are likely to feel themselves as culturally competent and build closer relationships with local colleagues (Lee and Sukoco 2010 ; Chen et al. 2010 ). As a result, expatriates who are culturally adjusted to their new workplaces are more likely to perform well on their international assignments than those who are unable to adjust well (Lee and Kartika 2014 ; Wu and Ang 2011 ). Therefore, we expected the following:

Hypothesis 3: work CCA will be positively related to assignment-specific performance.

The Mediating Role of Work CCA

Prior research suggested that CCA might mediate the association between CQ and performance (Kim and Slocum 2008 ; Wang and Takeuchi 2007 ). Despite this development, the empirical evidence on the role played by work CCA in mediating the relationship between specific CQ dimensions and assignment-related tasks has been relatively limited in the expatriate literature, requiring further research (e.g., Jyoti and Kour 2015 ; Lee et al. 2014 ). Kim et al. ( 2008 ) proposed that CQ may work through work CCA to affect expatriate performance as the extent to which expatriates are able to successfully adapt to a new work setting may impact on individual work outcomes. They argued that “a smooth transition across work assignments is critical to an expatriate’s success because the work-role that is executed in the host country may be quite unfamiliar, even though the task is the same as it was in their home country, due to different cultural contexts” (ibidem, p. 76). Therefore, expatriates who have greater CQ are more likely to successfully adjust to their new work setting which, in turn, will enable them to reach high levels of performance. Overall, relevant intercultural skills, such as abilities to revise cultural assumptions (meta-cognitive CQ), elaborate sophisticated metal maps about cultures (cognitive CQ), channel one’s own energies toward functioning (motivational CQ) and exhibit appropriate actions (behavioural CQ) in culturally diverse settings, are all factors which are expected to decrease the misunderstandings in role expectations and facilitate interactions with local colleagues (Ramalu et al. 2012 ). As a result, culturally intelligent expatriates, who are better able to cope with stress related to uncertainties (Sambasivan et al. 2017 ), may more easily feel comfortable in any cultural setting they are working in. Then, work CCA holds the potential to be a proximal intercultural effectiveness outcome which may partially mediate the effects of the four CQ dimensions on more distal effectiveness outcomes, such as assignment specific performance. Hence:

Hypothesis 4: work CCA will mediate the relationship between specific dimensions of CQ (Hp4a: meta-cognitive CQ, Hp4b: cognitive CQ, Hp4c: motivational CQ, Hp4d: behavioural CQ) and assignment-specific performance.

The Moderating Role of Cultural Distance

The individual’s capability to successfully adjust abroad is related to the novelty of the foreign culture. A large difference between the country of origin and the destination requires more transitions, which results in more adjustment difficulties than in a country with a similar culture (Bhaskar-Shrinivas et al. 2005 ). Said differently, adjustment is more challenging when the host country is more culturally distant (Wang and Varma 2019 ). In this context, individual differences may become particularly salient. Indeed, prior investigations revealed that CD moderates the relationship between individual characteristics and various outcomes in the expatriation field, such as effectiveness (Chen et al. 2010 ), adjustment (Zhang 2013 ), and intention to work abroad (Remhof et al. 2013 ). Among individual characteristics, CQ seems to be a variable highly likely to interact with CD on work CCA because of its relevance on settings characterized by cultural diversity. In line with Kim et al. ( 2008 ), “as CD increases, it is expected that CQ would become more, rather than less, critical to expatriates’ adjustment and success” (Kim et al. 2008 , p. 78). Accordingly, CD strengthens the CQ-CCA association since the greater cultural challenges inherent in more culturally distant settings demand more cross-cultural competencies. In this context, those with greater CQ may be better equipped to overcome such challenges and, then, better able to adjust and perform well than those with lower CQ. Thus, we expected the following:

Hypothesis 5: CD will strength the relationship between CQ, in all its dimensions (Hp5a: metacognitive CQ, Hp5b: cognitive CQ, Hp5c: motivational CQ, Hp5d: behavioural CQ), and work CCA, such that the positive effect of CQ dimensions through work CCA on assignment-specific performance will be stronger when the home-host CD will be greater.

The Moderating Role of Length of Residence in the Host Country

Previous investigations on CCA have showed that length of residence in the host country influences CCA (e.g., Li et al. 2013 ; Ramalu et al. 2010 ). According to the U-Curve of CCA framework (Black and Mendenhall 1991 ), the first twelve months in a foreign country are characterized by frustration as the newcomer must deal with living in the host country on a daily basis, overcoming the so-called “cultural shock stage”. CQ may become critical to overcome such highly challenging period because culturally intelligent expatriates can more easily use their cultural knowledge and develop action plans to solve transition problems (meta-cognitive and cognitive CQ; Earley et al. 2006 ). In addition, CQ may be salient because it drives expatriates to establish relationships with local colleagues and vicariously learn about appropriate behaviours (motivational CQ; Mendenhall and Oddou 1985 ). This may lead them to make appropriate behavioural adaptations (behavioural CQ). Thereby, expatriates high in CQ are more likely to learn quickly appropriate behaviours, which may decrease the anxiety related to not knowing how to behave in an unfamiliar environment. As a result, the time required to reach the adjustment stage may be shortened. Additionally, the longer the time spent in the host country, the greater the opportunities to build support systems, reach greater cultural knowledge, and become more efficacious in interacting with locals. This suggests that motivational CQ might be more critical in the initial stages of the adjustment process when individuals have to deal with daily challenges. Thus, we expected the following:

Hypothesis 6: the length of residence in the host country will moderate the relationship between CQ, in all its dimensions (Hp6a: metacognitive CQ, Hp6b: cognitive CQ, Hp6c: motivational CQ, Hp6d: behavioural CQ) and work CCA, such that the positive effect of CQ dimensions through work CCA on assignment-specific performance will be stronger when the length of residence will be lower.

The Moderating Role of International Work Experience

Culturally intelligent expatriates having longer experience of working abroad through vicarious learning can more easily make anticipatory adjustments to the new work setting before they ever experience it (Black et al. 1991 ). In this sense, they may benefit from prior international work experience because they can utilize it as an important source of information which facilitates the formation of realistic work expectations and accurate anticipatory work behavioural adaptations (Church 1982 ). Indeed, expatriates with greater CQ will be more likely to acquire more accurate information from their previous experience as, for instance, they will think critically about cultural knowledge and monitor the quality of that knowledge (Ang et al. 2007 ). This may increase attention and retention processes, leading them to make anticipatory adjustments in behaviours, which would turn out to be appropriate in the host workplace. This means that they will learn lessons from their prior experience and form comprehensive cognitive schemata, which will be useful to predict consequences across a variety of future situations (Takeuchi et al. 2005 ). As a result, prior experience will help expatriates with greater CQ to effectively handle future cross-cultural situations (Lee and Sukoco 2010 ; Shannon and Begley 2008 ). This will decrease the uncertainty and, therefore facilitate, the adjustment process (Black et al. 1991 ), leading to a better performance (Jyoti and Kour 2017a , 2017b ). Conversely, expatriates with lower CQ will be less likely to take advantage from their prior experience as the content of the information will be inaccurate and, then, their actual reproduction of the anticipatorily determined behaviours will prove to be inappropriate in the new workplace (Black et al. 1991 ). Furthermore, although some studies showed that prior experience had an enhancing effect on the CQ-CCA relationship (Lee 2010 ; Lee and Sukoco 2010 ; Jyoti and Kour 2017a , 2017b ), the research has not been consistently supportive (Vlajčić et al. 2019 ). Further to this, research analysing whether prior experience might exert an enhancing effect on the association between the four CQ dimensions and specific domains, such as work CCA, is still limited (Kusumoto 2014 ). Thus, we examined whether prior experience would strengthen the CQ- work CCA relationship, expecting the following:

Hypothesis 7: international work experience will moderate the relationship between CQ, in its dimensions (Hp7a: metacognitive, Hp7b: cognitive, Hp7c: motivational, Hp7d: behavioural), and work CCA, such that the culturally intelligent expatriates with greater experience will adapt more easily to the host workplace and, then, perform more effectively than those with lower experience.

As a conceptual framework, Fig.  1 illustrates our proposed model, incorporating our hypothesized relationships.

Proposed model regarding the relationships between the four components of cultural intelligence (CQ) and assignment-specific performance as well as the moderating role of cultural distance (CD), length of stay in the host country (LoS) and previous international work experience (WEX) in the association between CQ components and cross-cultural adaptation at work (work CCA)

Participants and Procedure

Our research sample consists of employees who were working in a company in the oil and gas industry with an extensive portfolio of projects around the world. Expatriates’ contacts details were gathered from organizational databases. Questionnaires were administrated in English (see Appendix 1 ), the official working language in the company, through a Web-based solution (i.e., mails and online questionnaires). Once respondents voluntarily agreed to participate, we obtained informed consent from them and ensured them the anonymity and confidentiality of their responses. Data were collected in the period between March and May 2018. In total, we contacted four hundred ninety-four expatriates. Of them, one hundred sixty-eight employees completed the survey (34% response rate). We excluded eight participants working in their home country and nine participants because they did not complete at least the 60 % of the survey. The descriptive statistics of the remaining participants ( N  = 151) are reported in Table 1 .

Most of research participants were Latin American expatriates assigned to Middle East countries. The Middle East, especially the Muslim and Arab countries of Sud Arabia, Oman and the UAE, represents a hot spot for international assignments (Raghu and Sartawi 2012 ). For instance, according to the data provided by the World Bank, the UAE’s population in 2020 is 9.89 million of whose the 88.52% is constituted by expatriates and immigrants (GMI 2020 ). Arab countries have practices and habits that contrast with those of the Latin American nations. Since the UAE’s culture is masculine in nature, a Latin American expatriate might have difficulties to adjust to a 100% male environment where there is a dress code for men as well (Konanahalli et al. 2012 ). Additionally, during the holy month of Ramadan the Muslim colleagues observe Ramadan fasting rules, which will require Latin Americans to be respectful of such religious observances (ibidem). According to GLOBE Project’s studies on cultural dimensions (House et al. 2004 ), the Middle East cultural cluster is characterized by high scores on collectivism, average scores on assertiveness, human orientation, institutional collectivism, performance orientation and power distance, while for future-orientation, gender egalitarianism and uncertainty avoidance the scores are low (for a detailed description of each cultural dimension see at the following link: https://globeproject.com/study_2004_2007 ). Although similar for some dimensions, the Middle East cluster differs from the Latin American cluster most significantly on the values of institutional collectivism, performance orientation and gender egalitarianism. These differences might translate in striking contrasts in terms of decision making, negotiation, conflict management, leadership styles and so on (e.g., Caputo et al. 2018 ; Caputo et al. 2019 ). In sum, it is likely that Latin American expatriates working in an Arab country will experience significant national cultural dissimilarities, which might lead them to adjustment difficulties.

CQ was assessed by The Cultural Intelligence Scale (Ang et al. 2007 ) which comprises four sub-scales: meta-cognitive CQ (four items, e.g. “I check the accuracy of my cultural knowledge as I interact with people from different cultures”, α =  .81 ) ; cognitive CQ (six items, e.g., “ I know the rules for expressing non-verbal behaviour in other cultures”, α =  .83); motivational CQ (five items, e.g., “ I enjoy interacting with people from different cultures”, α =  .89 ) ; behavioural CQ (five items, e.g., “ I change my verbal behaviour when a cross-cultural interaction requires it”, α =  .84 ) . This robust and reliable scale has been utilized by previous studies (e.g., Gozzoli and Gazzaroli 2018 ), confirming the existence of four specific CQ dimensions. Participants indicated how much they agreed with each statement concerning their cultural abilities on a seven-point Likert-type scale (1 =  strongly disagree 7 =  strongly agree ), where higher scores indicated higher CQ levels.

Work CCA was measured using three items from the Expatriate Adjustment Scale (Black and Stephens 1989 ). Participants rated their adjustment (e.g., “ How adjusted are you to performance standards and expectations in your job? ”, α =  .89) on a seven-point Likert-type scale (1 =  very unadjusted 7 =  very adjusted ), where greater scores indicated greater work CCA. This measure has been consistently validated by previous studies on expatriates (e.g., Bhaskar-Shrinivas et al. 2005 ) confirming its construct validity among culturally different samples.

Assignment-specific performance was evaluated through five items from the Expatriate Contextual/Managerial Performance Skills (Caligiuri 1997 ). Participants were asked to rate their perceived ability in each of the job performance items (e.g., “ Your effectiveness at transferring information across strategic units (e.g., from the host country to headquarters) ”, α =  .73) on a five-point Likert-type scale (1 =  poor 5 =  outstanding ) , where greater scores indicated greater performance.

CD between expatriates’ home country and host country was computed through the index of Kogut and Singh ( 1988 ) in combination with Hofstede’s ( 2001 ) country-specific scores (i.e., power distance, individualism, masculinity, and uncertainty avoidance), consistent with prior studies (e.g., Ng et al. 2019 ).

Length of residence in the host country was measured in months in line with previous researchers (e.g., Chen et al. 2014 ). Participants indicated the period in the current country of destination in months (i.e., How long have you been working in your current country of residence? ).

International work experience was assessed in years, according to previous studies (e.g., Jyoti and Kour 2017a , b ). Respondents indicated how many years they had been working internationally (i.e., How many years had you spent working abroad before this assignment? ).

Control variables . We controlled for marital status (1 = single, 2 = engaged) and education level (1 = high-school, 2 = degree) because previous studies showed that work-family conflict - that is more likely to occur for married expatriates; Kupka and Cathro 2007 - and education level (e.g., Moon et al. 2012 ) may influence CCA; thereby, potentially affecting performance. Furthermore, we controlled for gender (1 = male, 2 = female) and age since prior investigations (e.g., Li et al. 2016 ; Vlajčić et al. 2019 ) have revealed contrasting results about the impact of age and gender on CQ and CCA. Additionally, we recognized that pre-departure cross-cultural training (i.e., Did you have any cross-cultural training before departure? 1 = yes, 2 = no) might be associated with CCA as some studies showed that expatriates who received cross-cultural pre-departure training were more likely to successfully adjust to the host environment (e.g., Evans 2012 ). Since previous studies found that length of stay in the host country and international work experience could affect both CQ (e.g., Wang et al. 2017 ; Moon et al. 2012 ) and CCA (e.g., Ramalu et al. 2010 ; Lee and Kartika 2014 ), we considered the role of these constructs as control variables. Moreover, we acknowledged that CD might impact on CCA, such that the greater the CD, the greater the adjustment difficulties (e.g., Wang and Varma 2019 ). None of the control variables significantly correlated with - or had any significant impact on - the variables of interest within our models, which is why we decided to exclude them from all subsequent analyses and present models without these controls. This is in line with recommended practices (Aguinis and Vandenberg 2014 ).

Descriptive Analyses

We conducted descriptive statistics and correlations among the study variables using SPSS version 20 (Morgan et al. 2012 ). The four CQ dimensions were significantly and positively correlated with each other and with both work CCA and performance (see Table 2 ). The average inter-item correlations between CQ and outcomes was .24, suggesting that items did contain sufficiently unique variance to not be isomorphic with each other (Piedmont 2014 ).

Confirmatory Factor Analyses and Assessment of Common Method Bias

Firstly, using Mplus Version 7 (Muthén and Muthén 1998-2012 ), a confirmatory factor analysis (CFA) with the maximum likelihood method was carried out to examine the factor structure of the study variables. Results from CFA revealed that the six-factor model (i.e., four CQ dimensions, work CCA, performance) outperformed all the alternative models (χ 2 [335] = 782.70, CFI = .78, TLI = .76, RMSEA = .09, SRMR = .10). However, to obtain a satisfactory fit (χ 2 [330] = 221.59, CFI = .90, TLI = .90, RMSEA = .06, SRMR = .07), it was necessary to take into account the high correlation existing among some items (see Table   3 ). The resulting models were built considering the modification indices which were used in this satisfactory model. Moreover, to control for common method bias, an unmeasured latent method factor was added to the hypothesized CFA model and allowed manifest indicators to load on their respective latent constructs as well as on the method factor (Podsakoff et al. 2012 ). Results indicated that the hypothesized six-factor model yielded a better fit to the data after inclusion of the method factor (Δ χ 2 [302] = 480.28, RMSEA = .06, SRMR = .06, CFI = .91, TLI = .90). The method factor explained only 24% of the variance in the items, which is below the average amount of method variance (25%) reported in self-reported research (Podsakoff et al. 2012 ). Accordingly, common method bias does not appear to have a substantial impact on the present study. Finally, a second order CFA was tested, confirming that CQ loaded into its respective four sub-dimensions (χ 2 [327] = 505.460, CFI = .91, TLI = .90, RMSEA = .06, SRMR = .07).

Hypotheses Testing

Given our relatively small sample size, the Partial Least Squares (PLS) method, which is a variance-based structural equation modelling, was considered as particularly appropriate to simultaneously test whether each of the four CQ dimensions were related to performance directly and indirectly, as mediated by work CCA. Partial least squares structural equation modelling (PLS-SEM) represents a multivariate modelling technique suitable for the analysis of multiple dependent and independent latent constructs (Mathwick et al. 2008 ). This technique computes relationships between all variables simultaneously and does not necessitate multivariate normality (Zhou et al. 2012 ). Since CQ includes four components, a hierarchical component model (HCM) was created to assess the mediation model (Lohmoller 1989 ). This allowed us to reduce the number of associations in the model, making the model more parsimonious and resistant to collinearity problems (Hair et al. 2017 ). PLS-SEM methodology, utilizing a HCM, enables to examine each component of CQ independently through a higher-order construct that, by theoretical classification of HCM modelling, is a full mediator (Hair et al. 2017 ) in the process of direct and indirect associations between each component of CQ and performance. Using PLS-SEM, it is possible to evaluate each dimension separately, in addition to providing a diverse theoretical explanation for each dimension (Ott and Michailova 2018a , 2018b ). The repeated indicator approach was utilized in a reflective-formative type of HCM using SmartPLS v. 3.2.6. (Ringle et al. 2017 ) to further confirm the measurement model which was previously tested. This model comprises six reflective constructs and one second-order construct which contains latent variable scores for the four dimensions of CQ (a similar methodological approach was also taken by Vlajčić et al. 2019 ). All the items showed statistically significant and satisfactory loadings values (> 0.7; de Pablo González et al. 2014 ). The composite reliabilities of all seven constructs were acceptable as values were above 0.80 and below 0.95 (Nunnally and Bernstein 1994 ; see Table 2 ). The convergence validity was acceptable as all the average variance extracted (AVE) values were above the recommended value of 0.5 (Hair et al. 2010 ). Discriminant validity of our constructs was further confirmed as correlations between each pair of latent constructs do not exceed the square root of each construct’s AVE (Fornell and Larcker 1981 ), apart from the second-order formative construct (CQ-HCM) and the latent constructs it includes, as anticipated by Hair et al. ( 2017 ). These results further confirmed the discriminant validity of our constructs of interest.

Subsequently, the structural model was evaluated using a bootstrapping procedure (10,000 sub-samples; Hernández-Perlines et al. 2016 ). Structural coefficients presented in the PLS model (see Table 4 ) indicated that the dimensions of meta-cognitive ( β  = .10, t  = 4.13, p  < .001), cognitive ( β  = .12, t  = 3.58, p  < .001), motivational ( β  = .15, t  = 4.12, p  < .001), and behavioural ( β  = .12, t  = 3.68, p  < .001) CQ were directly and positively associated with performance. Thereby, Hypotheses 1a , 1b , 1c and 1d were confirmed. Additionally, the dimensions of meta-cognitive ( β  = .11, t  = 3.39, p  < .001), cognitive ( β  = .13, t  = 4.79, p  < .001), motivational ( β  = .17, t  = 4.30, p  < .001), and behavioural ( β  = .13, t  = 4.18, p  < .001) CQ were directly and positively related to work CCA. Thereby, Hypotheses 2a , 2b , 2c and 2d were confirmed. Work CCA ( β  = .19, t  = 1.96, p  < .05) was positively related to performance (see Fig.  2 ). Thereby, Hypothesis 3 was supported. Results from mediation models indicated that work CCA partially mediated the associations between meta-cognitive ( β  = .02, t  = 1.65, p  < .05), cognitive ( β  = .03, t  = 1.83, p  < .05), motivational ( β  = .03, t  = 1.84, p  < .05), and behavioural ( β  = .02, t  = 1.85, p  < .05) CQ and assignment specific performance. Therefore, Hypotheses 4a , 4b , 4c and 4d were confirmed. Moreover, our analysis of the structural model also includes the R 2 and Q 2 as indexes of model consistency and predictive relevance. The indicators of consistency were appropriate, even if CQ and its dimensions explained a weak amount of variation in the constructs of interest (R 2 (CCA) = .26; R 2 (performance) = .25). The predictive relevance of the indicators (Q 2 (CCA) = .70; Q 2 (performance) = .35) were in the large effect size range (Neter et al. 1990 ).

Results from models analysing the mediating effect of work CCA in the relationships between each of CQ dimension and assignment-specific performance

Further, we tested whether the strength of the relationship between CQ and performance through work CCA was conditional on the value of our expected moderators. To this end, we conducted moderated mediation models for each of the CQ dimensions using Mplus Version 7. CD weakened the relationship between motivational CQ and work CCA (β = −.06, p  < .05), but no significant interaction terms were revealed for the other CQ dimensions. Then, Hypotheses 5a , 5b and 5d were not supported. The moderated mediation effect of the interaction of motivational CQ and CD through work CCA on performance was significant (see Table 5 ). However, contrary to what expected based on Hypothesis 5c , results indicated that CD weakened the positive relationship between motivational CQ and work CCA, such that the relationship was stronger when CD was low and weaker when CD was high (β = .14, p  < .05 for low CD, β = .12, p < .05 for moderate CD, β = .11, p < .05 for high CD).

Length of residence in the host country weakened the positive association between motivational CQ and work CCA (β = −.19, p  < .01). The moderated mediation effect of motivational CQ and time of residence in the host country through work CCA on performance was particularly significant for expatriates who had been working in the host country for a shorter time (β = .44, p  < .05), but, even if it was still significant, the enhancing effect of length of residence in the host region on the motivational CQ-work CCA relationship decreased with the passage of time (β = .37, p < .05 and β = .31, p < .05; for those working in the foreign country for an average and a longer period of time, respectively; see Table 5 ). Thereby, Hypothesis 6c was supported, whereas Hypotheses 6a , 6b and 6d were rejected.

Experience moderated the relationship between motivational CQ and work CCA (β = −.35, p  < .01), but not the associations between the other CQ dimensions. However, contrary to what expected based on Hypothesis 7c , the moderated mediation effect of motivational CQ and experience through work CCA on performance was stronger for expatriates who had lower international work experience (β = .47, p  < .05) than for those who had moderate (β = .36, p < .05) or longer (β = .24, p < .05) experience (see Table 5 ). Therefore, Hypotheses 7a , 7b and 7d were rejected and Hypothesis 7c was not confirmed given that the direction was opposed to what expected.

The validity of the hypothesized models was assessed by comparing each of them (i.e., in terms of BIC and AIC comparative indices) with three competing models, as described in detail in Table 6 . The models with motivational CQ were the better-fitting models compared to those which included other CQ dimensions as antecedents.

Several findings emerged from this research which make a meaningful contribution to the existing literature on expatriates (see Fig.  3 for an overview of the confirmed hypotheses).

Model representing the hypotheses which were confirmed

First, each of the four CQ components were related to assignment-specific performance, both directly and indirectly, as partially mediated by work CCA. Then, culturally intelligent expatriates are likely to minimize cultural blunders and meet role expectations which, in turn, reduces the likelihood of misunderstandings, increasing performance (Moynihan et al. 2006 ). Moreover, they can successfully adjust to the host workplace, which enables them to channel their energies to improve their performance in assignment-specific tasks (Malek and Budhwar 2013 ; Shaffer et al. 2006 ).

Second, contrary to what expected based on Kim et al. ( 2008 ), CD is more likely to attenuate, rather than amplify, the positive effect of motivational CQ on work CCA in less culturally distant settings, such that the culturally intelligent expatriates are more likely to adjust to the host workplace and, then, perform well when CD is low. A plausible explanation is that when expatriates are confronted with more culturally different workplaces, their motivational CQ might not be sufficient to overcome the challenges posed by more complex assignments due to the greater cultural unfamiliarity (Chen et al. 2010 ; Vlajčić et al. 2018 ; Wang and Varma 2019 ).

Third, the length of residence in the host country weakens the positive relationship between motivational CQ and work CCA, such that motivational CQ is particularly salient when expatriates are in the initial stages of the adjustment process. Said differently, the greater the initial level of motivational CQ, the shorter the time required to adjust to the host country. Therefore, even if motivational CQ facilitates work CCA at any time, expatriates who are at the beginning of their assignment are likely to benefit more from motivational CQ than those who are in the host region from a longer time (Firth et al. 2014 ). Even if they were confronted with failures in their attempts of reproducing the new behaviours, cross-culturally motivated expatriates would be likely to persist at trying to imitate such behaviours longer than those with lower motivational CQ (Bandura 2002 ). This will increase the chances of receiving feedbacks, which will result in displaying appropriate behaviours; thereby, facilitating their adjustment to the new workplace and, then, their performance.

Fourth, motivational CQ is more salient for expatriates who are on their first assignment than for those who have longer experience in international assignments. Even if they have limited experience, the cross-culturally motivated expatriates tend to be more self-confident about their ability to interact with culturally diverse colleagues. They are also more willing to learn about unfamiliar cultures and experiment themselves in imitating culturally appropriate behaviours. Said differently, motivational CQ may counterbalance expatriates’ lack of experience, enabling them to adjust to the host workplace and, then, perform well.

Theoretical Implications

This research has several key contributions to expatriate literature. Firstly, this study extends Kim et al. ( 2008 ) by investigating whether specific CQ dimensions were associated with performance directly and indirectly, as mediated by work CCA. Additionally, by identifying, beyond CD, length of stay in the host country and work experience as boundary conditions for CQ effects, this research helps explain the mixed findings obtained in prior investigations on CQ.

Secondly, this study provides further evidence for the differential role of CQ dimensions (e.g., Rockstuhl and Van Dyne 2018 ) by testing mediating and moderating mechanisms which explain how and when each CQ facet is more - or less - likely to facilitate work CCA and performance.

Thirdly, our findings add to a growing body of literature on expatriate adjustment (e.g., Chew et al. 2019 ; Bhaskar-Shrinivas et al. 2005 ) by confirming the key role of work CCA, which represents a primary factor of interest to MNCs as it is crucial for assignment-specific performance.

Fourthly, this study deepens our understanding of boundary conditions for CQ effects by showing that, of the four CQ factors, only motivational CQ was qualified by CD, length of stay and experience. On the one hand, this suggests that cognitive, metacognitive, and behavioural CQ dimensions had a positive influence on work CCA and, then, assignment-specific performance, regardless of CD, length of stay and experience. In the absence of moderation from such factors, we can confirm that, even if expatriates are on their first assignment, at the beginning of their assignment or assigned to a highly culturally diverse country, a prediction of their success can be based on cognitive, metacognitive and behavioural CQ dimensions. Such dimensions can be particularly useful in promoting performance, since the demanding work setting entails high degrees of culture-related cognitive processing, cultural awareness, and behavioural flexibility to enable for efficient problem solving (Stahl et al. 2009 ). On the other hand, this allows to consider the boundary conditions that provide insights into when motivational CQ has a stronger influence on work CCA and, then, assignment-specific performance. Even motivational CQ is a relevant skill for expatriates at any time of their assignment, expatriates benefited more from motivational CQ when they were working in the host country for a shorter period or when they had lower experience. Motivational CQ plays a peculiar role which differentiates this dimension from the others. Indeed, culturally motivated expatriates are driven to prove themselves in a large quantity of intercultural work situations (Ng et al. 2019 ), despite the challenges experienced at the beginning of a novel assignment. Furthermore, motivational CQ may compensate the lack of work experience by strengthening use of skills and resilience in the face of cultural difficulties (Bandura 2002 ). However, the positive effect of motivational CQ on CCA is necessary yet not sufficient for overcoming the challenges posed by more culturally distant workplaces, as such environments demand less familiar task requirements from expatriates. This makes the effort arouse by motivational CQ less relevant (Chen et al. 2010 ). Overall, this study adds substantially to our understanding of how motivation-related processes may contribute uniquely to expatriate effectiveness.

Practical Implications

The current study has practical implications for MNCs and international human resource management. Firstly, the finding that all CQ dimensions are related to expatriates’ performance suggests that recruiters should select and hire culturally intelligent candidates for international assignments. By evaluating applicants’ CQ and by emphasizing CQ as a critical credential that candidates – especially those with lower international experience - should have, HR representatives can select the most suitable candidates, assigning more cross-culturally motivated expatriates to foreign assignments, if possible, in less culturally distant countries.

Secondly, organizations should provide expatriates with pre-departure training programs aimed at increasing their CQ. For instance, training can offer several scenarios for work so that expatriates may be adequately prepared to comprehend and master different situations (e.g., cultural habits) when facing problems in the host country (Lin et al. 2012 ). Since our findings suggest that motivational CQ is particularly relevant to work CCA, training programs could include a module on motivational CQ (Earley and Peterson 2004 ). For example, training based on dramaturgical exercises, including role plays and simulations about intercultural interactions could be useful tools to build efficacy regarding cross-cultural challenges (ibidem). Furthermore, managers should consider fostering expatriates’ motivation prior to their assignments by emphasizing benefits related to international assignments (e.g., opportunity to develop global career competencies or monetary incentives; Hajro et al. 2017 ) and by stimulating their curiosity about diverse cultures.

Thirdly, considering the mediating role of work CCA in the relationship between CQ and performance, interventions should be implemented to enable expatriates – especially those who are on their first assignment or at the beginning of a new assignment – to receive organizational social support (i.e., from both home and host-country managers and peers) and logistical help (e.g., housing, schooling) to facilitate reaching the adjustment stage (Bhaskar-Shrinivas et al. 2005 ). For instance, companies could consider arranging informal gatherings to help workers build strong bonds with local colleagues and assigning newcomers to experienced mentors (Chen et al. 2010 ). Moreover, MNCs should develop appropriate performance management systems for expatriates and expatriate-host country nationals interaction mechanisms to facilitate work CCA (Wang and Varma 2019 ).

Limitations and Suggestions for Future Research

This research suffers from some limitations which may give venues for future research.

Some concerns regard the cross-sectional design of our study and the exclusive use of self-reported measures. To decrease the risk of common method bias, we followed Podsakoff et al.’ ( 2012 ) recommendations regarding questionnaire design. Additionally, we used the unmeasured method factor technique, showing that common method variance was not a major issue. Future studies should focus on non-same-source outcomes, collect data from multiple sources (e.g., interviews, observations of actual behaviours, performance ratings from supervisors), adopt a longitudinal design and analyse CQ at the team level (Ott and Michailova 2018a , 2018b ).

Since most of research participants were men, and gender has been previously found to affect the levels of performance among expatriates (e.g., Ramalu et al. 2012 ), this might have partially influenced our findings. However, the gender distribution in our sample is highly representative of expatriate workforce in the analysed sector. Future studies should control for other variables (e.g., openness to experience, having family accompanying in the host country).

A further limitation is related to the fact that possible selection bias due to the voluntary participation into the research cannot be ruled out. It is possible that those who experienced successful CCA experiences were more motivated to respond and, as such, are overrepresented.

Since majority of respondents were from Latin America, and cultural orientation has been revealed to impact differing coping styles, such as conflict management and negotiation styles (e.g., Caputo et al. 2018 ; Caputo et al. 2019 ), this might have partially affected our results. Therefore, more research on larger sample sizes is needed to investigate how the effect of CQ on expatriate performance might vary as a function of individual’s cultural values.

As the nature of global work assignment is expanding beyond the traditional expatriation (e.g., frequent international business travel; Shaffer et al. 2012 ), future studies should investigate the relationships between specific CQ dimensions, work CCA and performance by comparing expatriates employed in different international work arrangements and by collecting data also on international skilled migrants (Hajro et al. 2019 ).

Since CQ, EQ and SI are distinct but overlapping constructs which have been found to positively interact with each other (Crowne 2013 ), future investigations should analyse associations at the subcomponent level of CQ, EQ and SI to identify how specific dimensions of each may affect expatriate performance when the three forms of intelligence are examined together.

Future studies should also analyse conditions under which higher motivational CQ levels might undermine expatriate effectiveness (e.g., through complacency; Chen et al. 2010 ), including situations characterized by ambiguous tasks (e.g., Schmidt and DeShon 2010 ).

Finally, it would be especially important to detect further contextual variables (e.g., group climate, performance management practices; Chen et al. 2010 ; Wang and Varma 2019 ) that may facilitate expatriate performance, either directly or through interactions with specific CQ dimensions.

Even though the current cross-sectional study relied only on self-report measures, it was conducted on the relatively under-investigated population of expatriates working within the energy sector in the Middle East and it addressed some gaps in the literature by disentangling the complex relationship between CQ, CCA and performance. To this end, we tested mediating and moderating mechanisms which explain how and when specific CQ facets were more - or less - likely to facilitate assignment-specific performance. Each CQ dimension had a differential role in contributing to assignment-specific performance, directly and through work CCA. Conversely, of the four CQ factors, only motivational CQ was qualified by CD, length of stay and international work experience. Our findings indicated that motivational CQ was particularly salient in overcoming work CCA difficulties for expatriates who were at the beginning of their international assignment and who had lower experience. Moreover, motivational CQ related more positively to expatriate work CCA in less culturally distant countries. We conclude with the hope that our theoretical contributions will stimulate additional multilevel and longitudinal research on factors influencing work CCA and performance to gather further knowledge about cross-cultural management.

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Appendix 1: Measurements

Demographic items.

Thank you for participating in this study. Please pay close attention to each question provided and answer each question as honestly as possible by placing a mark in the provided space. Please take care in filling out this form.

1. Gender (Please Check One): [] Male [] Female.

2. Age (in years): ______.

3. Marital status (Please Check One): [] Single [] Married.

4. Education status (Please Check One): [] High school [] Degree.

5. Role (Please Check One):

[] 1. Administrative.

[] 2. Technical.

[] 3. Executive.

[] 4. Other.

6. How many years have you spent working abroad before this assignment: ______.

7. How many months have you been working in your current country of assignment? ______.

8. Did you have any cross-cultural training (any training that prepared you for relocation) before departure? (Please Check One): [] Yes [] No.

9. What is your country of origin? ______.

10. In which country are you currently living? ______

Cultural intelligence

Read each statement and select the response that best describes your capabilities.

Select the answer that BEST describes you AS YOU REALLY ARE .

1: Strongly disagree 2: Disagree 3: Somewhat disagree 4: Neither agree nor disagree 5: Somewhat disagree 6: Agree 7: Strongly Agree.

Cross-cultural adjustment at work

Please indicate how well adjusted (how comfortable) you are with each of the following aspects of living in your current city of residence. Use the following scale:

1: Very unadjusted 2: Unadjusted 3: Somewhat unadjusted 4: Neutral 5: Somewhat adjusted 6: Adjusted 7: Very adjusted.

• Assignment-specific performance

Please rate your level of work performance to the factors listed below using the following scale:

1: Poor 2: Below Average 3: Average 4: Above Average 5: Outstanding.

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Setti, I., Sommovigo, V. & Argentero, P. Enhancing expatriates’ assignments success: the relationships between cultural intelligence, cross-cultural adaptation and performance. Curr Psychol 41 , 4291–4311 (2022). https://doi.org/10.1007/s12144-020-00931-w

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International Citizens Group

Resources for International Citizens and Expatriates

• Expatriate Selection: Lessons From the U.S. Peace Corps

“Ask not what your country can do for you, ask what you can do for your country.” – President John F. Kennedy, 1961 Inaugural Address

On March 1, 1961, John F. Kennedy created the US Peace Corps. In August of that year, the first 52 Peace Corps volunteers arrived on the shores of Ghana. Today’s 4,000 or so annual volunteers are a devoted and skilled bunch of mostly early career professionals. Yet those first volunteers were among the nation’s best and brightest, all graduates of Harvard, Yale, or Princeton at the behest of Ghanian President Kwame Nkrumah.

Despite their credentials and commitment, it wasn’t long before issues arose. Perhaps most infamously, an early volunteer to Nigeria wrote a letter home describing the state of living conditions as squalid, horrifying and primitive. Intercepted by the local postal service, it was soon on the front page of major Nigerian newspapers, sparking outrage among the populace.

In my Peace Corps assignment to Central Asia’s Kyrgyz Republic, roughly one-third of the assignees departed prior to the end of their 27-month assignments (including yours truly, who resigned early in favor of a local faculty position in order to research governmental corruption without tainting US-Kyrgyz relations). To help improve the fit between volunteers and host countries, the Peace Corps is among the earliest known organizations to perform psychological assessments on applicants interested in volunteering abroad. The results of this early experiment were reportedly mixed. However, psychological assessments have improved with time and are now a recognized best practice to use in expatriate selection for organizations staffing international offices.

The expatriate selection process can be complicated. At its best, it involves many stakeholders, including managers, HR staff, and host country professionals, each of whom has input on what is relevant to the determination. What are the key questions they should ask, and what steps can organizations take to prepare the employees they choose for international assignments?

Expatriate Selection: Who Chooses?

At its best, expatriate selection is a collaborative effort. Participants include management, HR professionals, and host-country recipients, each of whom has a particular (if at times overlapping) role to play. Host country staff are primarily responsible for assessing technical skills. They answer the question: can this candidate complete the required tasks?

While this is a crucial question, it is not the only question. Unfortunately, scholars have for decades documented that technical competence regularly overshadows other issues of concern. What other factors should companies consider in selecting expatriates?

Other key elements include whether the expat candidate has the cultural and social skills to succeed in the new assignment. Family questions may also be relevant. HR and host country managers should have an expansive role to better assess these variables.

A significant barrier to expatriate success is cultural distance. This measures how different the host country’s culture is from the home country. A forthcoming article will discuss this in more detail, but for now, know that cultural differences may present themselves in many ways. And for the home country staff, these differences may not be obvious.

Host country staff, however, may shed light on which cultural practices most challenge foreign national workers. These may be language or communication differences, social norms, or business practices. The deeper the differences, the more important it is that the chosen expatriate brings prior international experience to the job. In addition, host country staff may coordinate with HR and home country staff to assist in the expatriate selection and identify which foreign nationals most flourish amidst these cultural differences.

Furthermore, HR staff may spearhead those pre-departure psychological assessments that the US Peace Corps popularized so many years ago. These practices are among the most important – but least understood – of all selection practices.

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Also Read: Resources & Articles for Expats

“Grit: The Power of Passion and Perseverance”

Grit. It’s a topic popularized by Wharton Professor Angela Duckworth in her book Grit: The Power of Passion and Perseverance . Grit is the ability to remain committed to long-term goals despite challenges, sometimes for years at a time. As Duckworth revealed in a series of groundbreaking studies, grit may be the single most important variable for employee success. More so than skills. More so than intelligence.

And for the expat, grit may be even more important than among domestic employees. An individual accepting an international assignment is taking a leap of faith. No matter how much support is received – and later articles review exactly what kind of support expatriates tend to need and want – the expatriate will inevitably face challenges.

These challenges may be from work styles or relationships with co-workers or supervisors, challenges for the family in adjusting, or social setbacks. Consider the ongoing Covid pandemic and the upheaval this caused for expatriates. New concerns sprouted about healthcare, travel restrictions and closing borders, and social isolation in countries where restaurants and other public venues closed en masse .

Selecting for grit – and yes, there are surveys that do just this – is, therefore, one of the key psychological variables that organizations should look at when assessing expatriate candidates. What else?

What Factors Should Companies Consider for Expatriate Selection?

The so-called Big Five Personality traits are openness to experience, conscientiousness, extraversion/introversion, agreeableness, and neuroticism. They are among the most important and best understood of the many personality traits which make up an individual’s character. (An easy trick to remember the Big Five? Take the first letter of each trait. It spells “OCEAN”). Put simply, if you understand where someone falls on each of these traits, you can predict a lot about their attitudes and behaviors in life and work.

Extraversion

Extraversion measures sociability and leads to expat success. Studies show that extroverts are less likely to quit their jobs, while supervisors rate them higher in performance. Extraversion also correlates with ambition, which also leads to higher job performance.

However, don’t take these studies to mean that organizations should exclude introverts from international assignments. After all, they represent around 50% of the population. And as Susan Cain documents in her well-researched book, Quiet , introverts also offer employers valuable skills.

Consequently, this is more about understanding in which positions each can flourish. For instance, extroverts are well-positioned to handle international assignments that require regular contact with the local population. By contrast, introverts do well when given space for their creative and thoughtful juices to flow and when they have quiet workspaces far away from daily chaos. In addition, introverts may require more organizational support in terms of socialization and integration with host country nationals.

Openness to Experience

Another trait predicting expatriate success is openness to experience. These individuals seek out novelty and adventure. They’re more likely to try different foods, listen to new music, and support cultural activities. They are, in turn, primed for positive attitudes when it comes to embracing the changes and opportunities of a new national culture.

Indeed, studies show that expatriates high in openness to experience tend to perform at higher levels. In one study, higher-performing expatriates were more likely to report that they took the international position for the love of travel and the opportunity for new experiences. Furthermore, these individuals tend to gain more value from their interactions with host country nationals – enthusiastically soaking up information and using it to improve their day-to-day performance. Finally, spouses high in openness to experience adjust better, as well.

Neuroticism and Conscientiousness

Organizations may also seek expatriates that are low in neuroticism and high in conscientiousness. Neurotic types tend to struggle with ambiguous and stressful environments, with which, as we know, foreign assignments are rife. Finally, conscientiousness measures dependability and diligence and is related to grit. It predicts higher job performance for both domestic and international workers.

Click here for a survey that measures each of these so-called “Big Five” personality traits. In addition, companies can customize open-ended interview-style questions to assess where expat candidates fall on each of these traits.

Expatriate Preparation: How To Prepare Employees for International Assignment

Your expatriate selection process is complete, now what?

Expatriate research reports that the most important pre-departure expatriate preparation involves a series of in-depth training sessions. There are many types of training for expatriates. The primary categories are area studies, cultural practices, language training, sensitivity training, and field experience.

At the most basic level, expats must understand practical living conditions. Can they drink the water? Where do they go for medical treatment or for groceries? And what are the best neighborhoods to live in?

Expatriate Training

In addition, training for accompanying family members is key. This means including spouses and even children in some training sessions and providing families with information about schooling for children and spousal employment.

Finally, expatriate training should include business-relevant matters, such as local business laws and relationships with local partners. Expatriates should, furthermore, be clear about their job expectations, their performance management systems, and their compensation policies.

In addition to training, the company often undertakes other concrete activities on behalf of the international assignee. This includes visas and other bureaucratic support, which can be a byzantine nightmare for the uninitiated employee.

Studies also show that expatriates are grateful for long lead times before departure. Rushed assignments such as those with two months’ notice or less prove troublesome in terms of selling a house, buying or renting a new one, changing schools, and organizing a move (and to another country, at that).

The US Peace Corps learned some lessons the hard way but responded by putting more effort into their selection policies. In so doing, they – and all organizations following suit – give those selected the best chance of succeeding in even the most challenging environments. When paired with pre-departure and training preparations, your expatriates will arrive in their host countries with every possible advantage.

Related Articles

• Culture Shock: What It Is and How HR Can Help
• 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.

Harris, H., & Brewster, C. (2002). An integrative framework for pre-departure preparation.  International Human Resource Management: A European Perspective ,  224 .

Hung-Wen, L. (2007). Factors that influence expatriate failure: An interview study.  International Journal of Management ,  24 (3), 403.

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.

Mesmer-Magnus, J. R., & Viswesvaran, C. (2007). Expatriate management: A review and directions for research in expatriate selection, training, and repatriation.  Handbook of research in international human resource management , 197-220.

Our Most Famous and Infamous RPCV . Peace Corps Worldwide.

Suutari, V., & Brewster, C. (2001). Expatriate management practices and perceived relevance: Evidence from Finnish expatriates.  Personnel Review .

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. – see page 2213 for an overview of the selection process.

Zeitlin, Arnold (1986). First Group of Peace Corps Volunteers Marking 25th Anniversary. AP News.

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How to Avoid Expatriate Failure

Anne morris.

IN THIS SECTION

Deploying an employee to work overseas on assignment or as a relocation is an investment which can help your organisation take advantage of the global economy. Unfortunately, as is the case with any potentially lucrative investment, international assignments carry a high risk of failure. Expatriate failure can be expensive for your company and an unwelcome experience for the assignee, especially if they are forced to return to the UK prematurely and having not completed their assignment or met their objectives.

An awareness of the common causes of expatriate failure can help your HR department plan a water-tight international relocation strategy, to protect your organisation’s commercial objectives and the employee’s wellbeing and support their ability to perform.

This guide discusses practical steps that HR professionals can take to minimise the chances of expatriate failure, but also to derive the maximum benefit from overseas assignment success. In most cases, international assignments afford the expatriate employee the chance to acquire valuable new skills and experiences, which can be put to good use by the company upon their return.

What do we mean by expatriate failure?

Expatriate failure is a term used to describe any unsatisfactory outcome of sending an employee on an international assignment. This encompasses ‘complete’ failures, which would usually result in the employee returning to the UK without completing the assignment; and ‘partial’ failures, which may include poor performance or failure to achieve specific commercial outcomes.

The cost of expatriate failure

Globally, expatriate failure rates are consistently high due to the mental, emotional and physical strain placed on employees who relocate abroad.

Research has shown that expatriate failure rates are higher among employees sent to developing countries and lower among those sent to economically flourishing countries. In some parts of the world, relocating an employee from the UK carries around a 50% chance of failure.

Successful long-term international assignments typically cost an employer as much as three times the employee’s annual salary.

If the assignment is not a success, your organisation may not see the commercial gains needed to balance the investment and could be forced to spend more money bringing the employee home ahead of schedule.

Beyond the financial cost, there is also the impact of the experience on the employee. They may have been selected for their skills and knowledge, and a premature and unsuccessful return to their home country may impact their confidence and their pride, potentially precipitating a fresh start with a new employer.

Reasons for expatriate failure

There are many factors that can contribute to expatriate failure. Often, failings in the expatriate employee’s support system both at home and abroad are to blame.

In other cases, the assignment was doomed to failure from the outset, as the employer choose the wrong person to send on the overseas project.

If your expatriate employee does not possess the personal qualities necessary to thrive in the new environment, no amount of support provided by the organisation can ensure the assignment is a success. When planning any international relocation, keep the following common causes of expatriate failure in mind.

Poor candidate selection

When there is a lot riding on the success of an overseas project, employers often select their best and brightest employee for the international role with little regard for the other qualities they will need to be successful. While you must choose an employee with the skills and experience necessary to complete the project, personal qualities such as adaptability, open-mindedness and a love of different cultures are arguably more important. To avoid expatriate failure, employers should consider their candidate’s personality, lifestyle, interests and previous experience with foreign cultures. Keep in mind that a ‘love of travel’ will not always translate to expatriate success, especially if the employee in question spends a lot of their travel time in English-speaking areas, around other British people (e.g. at holiday resorts) or in foreign places where they can easily access familiar foods and other items from home.

The following attributes may also minimise the likelihood of expatriate failure:

• The ability to speak a foreign language (even if that language is not spoken in the overseas location, interest in foreign languages suggests interest in other cultures, and a willingness to learn new skills)
• Being single or without children (do not rule out people with dependant families altogether but finding a candidate who could relocate by themselves reduces the chances of expatriate failure being caused by domestic issues)
• Excitement about the project itself (it is not enough simply to find an employee with exceptional skills, they must also be genuinely passionate about the organisation’s goals and feel personally invested in the success of the overseas project)

Inadequate support systems

Comprehensive support structures are essential for international assignment success. Expatriate failure is often caused by lack of practical support in the host country and/or disconnection with the home environment. It is crucial that relocation support does not end as soon as the employee has arrived at their new destination. Your expatriate employee should be assigned a personal mentor in their host country, whose role it is to oversee their adjustment to the new environment and be a first point of contact when they require additional support. You should account for both in-work and personal-life issues when assigning a mentor. Consider that the employee may need assistance with:

• Negotiating the new work environment
• Building social connections outside work
• Organising services like having a phone line installed or making an appointment with a doctor

Just as employers must choose the right employee for an overseas assignment, they must choose the mentor for that employee wisely. If possible, select a mentor with expatriate employee experience so that they can empathise with the relocating employee’s struggles.

Lack of expatriate training

Expatriate failure becomes far more likely in situations where the employee has been given insufficient training prior to the move. Expatriate preparation should not be rushed and must include cultural and language training where applicable, in addition to basic training regarding their role and assignment. Your expatriate employee must be prepared with:

• The language skills necessary to communicate with their colleagues, navigate, purchase provisions and services, and make casual conversation
• Knowledge of cultural and societal norms in their host country (especially any differences which could lead to conflict or cause offence when not acknowledged)
• Basic knowledge of the area in which they will be living and working (e.g. public transport, schools, restaurants and other facilities)

Effective planning is the key to avoiding expatriate failure. Employers must ensure that every aspect of the employee’s new work and living situation has been considered, so that measures can be put in place to prevent problems. International relocation training plans vary in content and structure, depending on location and the duration of time the employee will be abroad. In general, it is wise to allow for at least one month of training time prior to the move. Preferably, this training should be conducted within your employee’s normal working hours.

Poor communication

Employers should develop a plan for structured communication with their overseas employee. Part of your support plan should include keeping the expatriate employee ‘in the loop’ with regular communications from the UK office. Consider assigning a point of contact at home and scheduling weekly or fortnightly update calls or emails. ‘Casual’ communication arrangements are not sufficient as the absence of a structured plan often results in dwindling contact, which may leave the employee feeling isolated.

Make sure your expatriate employee knows who to contact if they require additional support beyond scheduled communications. Your training programme should include making the employee aware of potential issues they may experience while settling into the new environment, such as culture shock, social isolation or domestic difficulties (when relocating with a spouse or child). The employee must understand that such difficulties can ultimately lead to expatriate failure and for that reason, they have a responsibility to report problems and seek assistance. Make it clear that you are keen to offer all necessary support but that you can only do so when you are kept informed about problems, as they arise.

Prepare for repatriation 

When planning to avoid expatriate failure, keep in mind that it is not only your employee’s experience abroad that must be considered. Depending on the length of time your employee was overseas, they may need help settling back into the UK work environment. You cannot call the international assignment a success if the employee’s performance or personal wellbeing suffer due to insufficient support when they return home.

Failure to consider the implications of repatriation often results in poor talent management. Consider the fact that the returning employee has likely acquired valuable new skills, knowledge and experience during their time abroad. These are assets to your business that may be wasted by sending the employee back to their previous job role. It may be more appropriate to move the employee to a new role in higher management or an entirely different sector within the company. Ideally, this is something you should consider and discuss with the employee when ironing out your initial plan and the terms of the international relocation. Remember that at every stage of planning, prioritising your employee’s career goals and personal wellbeing is the secret to avoiding costly and disruptive expatriate failure.

Need assistance?

DavidsonMorris’ global mobility specialists work with global employers to support development of high-impact talent mobility strategies and programmes. We understand the challenges pf overseas assignments facing both the employer and the employee and can work with you to provide expertise and insight into effective management of assignments to avoid expatriate failure.

Expatriate failure FAQs

What are the major causes of expatriate failure.

A number of reasons are commonly cited for expatriate failure, including social isolation, culture shock, family pressure and responsibility overload. Ultimately, the employer should develop and follow a robust and extensive candidate selection process and provide ongoing support while the employee is overseas to minimise the risk of assignment failure.

How should you select candidates for overseas assignment?

Beyond technical and organisational knowledge and competencies, assignees should also demonstrate an understanding of what the experience will entail and the ability to cope with the full demands of living overseas such as having a positive mindset, showing adaptability in challenging circumstances, language ability, local cultural knowledge and confirmation of family support for the move.

How can DavidsonMorris help?

DavidsonMorris are experienced global mobility advisers, working with global employers to help improve the impact and return on their global mobility programmes. We can provide guidance and insight into how to select and support overseas assignees to minimise the risk of expatriate failure.

Last updated: 2 May 2023

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 Supporting Documents Checklist 2024
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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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International Assignments: Managing Benefits and Taxes for Expatriate Employees

Written on February 28, 2019

Given the complexity of the U.S. tax code and the myriad regulations related to ERISA plans, managing benefits for domestic employees is a complicated undertaking. But managing benefits for employees who your U.S. company sends to work overseas—known as expatriates, or expats—adds several layers of complexity.

As globalization continues to be a defining characteristic of the economy, many U.S. companies are finding opportunities to grow abroad. But before their employees ever step on foreign soil, employers need to learn about the various taxes other governments may impose on benefits and compensation and think through the various questions that go into developing a sound policy for managing benefits for expatriate employees. Employers also need to help their employees understand what the foreign assignment means to them with respect to taxes and benefits.

Understand the Basics of Expatriate Taxation

For purposes of this article, an expatriate is a U.S. citizen or green card holder who is sent by their U.S. employer to work at a branch or other linked organization in a foreign country. Assignment duration may vary anywhere from six months to several years. Employees must obtain a work visa, and—depending upon the host country—may be eligible for certain benefits offered by that country while working abroad.

U.S. citizens, green card holders, and their employers need to understand that expatriates will still have an income tax liability and income tax return filing obligation at home regardless of where they work globally. The United States is unusual in this regard with respect to taxing their citizens and permanent residents (green card holders) who are living and working abroad; many foreign governments allow their citizens to fall under the host country’s tax code when working abroad and home country taxation is often suspended until the individual returns to their home country.

The United States’ unusual approach, however, doesn’t mean that U.S. expatriates will always face double taxation. The U.S. tax code looks to offset this, at least partially, by allowing certain foreign tax credits and/or the foreign earned income exclusion. Employers take these credits, the foreign earned income exclusion, and the foreign country’s tax policies into consideration when developing the compensation package for the employee.

In addition to understanding how the U.S. will tax the expatriate’s foreign compensation and benefits, employers also need to understand how the host country will tax this income. Almost every country requires some kind of tax to be paid by foreign workers. While taxation of salary and bonuses may be relatively straightforward, things can get quite complicated when it comes to how benefits—such as retirement matching contributions or profit sharing—are taxed.

Consider Your Options for Making Expatriates Whole

Employers need to study foreign countries’ tax laws and be aware of each country’s nuances so a fair, balanced and competitive compensation package is developed. The good news is that employers have flexibility in navigating these issues and developing their policies.

The first option is to do nothing. Sometimes, in this scenario, the expatriate is responsible for the taxes and other costs incurred while working in the host country. A more common strategy is to equalize the tax burden on the employee. This is a tax-neutral policy, often referred to as tax equalization, where the employee is no worse or better off while working abroad. In this case, the goal of the compensation package is to keep employees whole—which means maintaining roughly the same financial standards they would have experienced at home.

Beware Double Taxation of Retirement Benefits

Expatriates are allowed to participate in U.S.-based retirement plans while working abroad. They can contribute pre-tax dollars to their traditional 401(k) plans, and employers can offer a match to the employee deferral. Unfortunately, many foreign countries consider the deferral to be taxable income.

What’s more, the employer contribution may be considered regular income subject to foreign taxes as well. In this case, the employee is double taxed: first by the host country for the “income” sent to the retirement plan, and then by the United States when it’s time for the participant to withdraw assets. (Double taxation may also happen in a Roth situation, where participants pay taxes up front when making the deferral.)

In these situations, employers will need to decide whether expatriates should be excluded from the plan and possibly compensated outside of the benefit to avoid the double taxation—or utilize a tax equalization policy where the expatriate is made whole. The latter approach would be in keeping with the U.S. system, in which qualified retirement plan contributions are only taxed once when the employee takes a distribution from the plan at or after retirement.

Insight: Take a “No Surprises” Approach to Your Expatriate Benefit Policy  The goal of any expatriate compensation package should be to ensure that neither the employee nor the company encounter any surprises. To achieve this, employers need to think through many issues well before sending an employee abroad.

The first issue is to decide whether or how to make employees whole. After that major issue is resolved, employers need to focus on finer points such as evaluating foreign tax policies, reviewing plan documents to determine eligibility and analyzing foreign tax credit structures to maximize value.

It’s also important to have strong communication strategies and resources for employees. A solid two-way communication plan aids expatriates in clearly understanding what they will be receiving and responsible for, and offering them access to experts who can help them feel that they are not alone in navigating the oftentimes complex tax structures in host countries.

Employees working at different companies often compare notes about their employer’s compensation policy for expatriates with other expatriates they meet abroad, so understand that there are competitive reasons for developing a fair, robust approach.

When sending employees abroad, employers have a lot to manage from a benefits perspective, between adequately rewarding employees, understanding individual countries’ tax rules, filing the appropriate forms in the foreign jurisdictions and keeping costs under control.

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Before Taking an Expat Assignment, Make Sure Your Family Is on Board

Getting an expat assignment can be exciting, but it can also be hard on your family. Before accepting a temporary reassignment to another country, think it through with your partner or family. Be sure to frame the decision as a real choice — Should we go or stay? And consider the degree of change: If […]

Getting an expat assignment can be exciting, but it can also be hard on your family. Before accepting a temporary reassignment to another country, think it through with your partner or family. Be sure to frame the decision as a real choice — Should we go or stay? And consider the degree of change: If you live in Amsterdam, relocating to Brussels is very different from moving to Guangzhou, China. Then go through the pros and cons of each alternative, laying out the full implications for your children or extended family, your career — and your partner’s — and your support networks. Try to anticipate and discuss how the change would affect family dynamics — e.g., shifting from a dual-career marriage to one where a spouse stays at home, or replacing a grandmother babysitter with a professional nanny. These discussions will not only shape your decision about the assignment but also help set expectations and prevent resentment later on.

Source: Adapted from “Making Your Expat Assignment Easier on Your Family,” by Katia Vlachos

• JO JM Olejarz is an associate editor at Harvard Business Review.

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• Process of Selecting Expatriates
• Post last modified: 23 March 2023
• Reading time: 26 mins read
• Post category: Human Resource

It is a challenge for those responsible for selecting staff for international assignments to determine appropriate selection criteria.

Table of Content

• 1.1 Technical Ability
• 1.2 Cross-cultural Suitability
• 1.3 Family Requirements
• 1.4 Cross Cultural
• 1.5 MNCs Requirements
• 1.6 Language
• 2 Human Resources Tutorial
• 3 Human Resource Management

The figure illustrates the factors involved in the expatriate selection, both in terms of the individual and the specifics of the context concerned. These factors are interrelated.

Technical Ability

Cross-cultural suitability, family requirements, cross cultural, mncs requirements.

A person’s ability to perform the required tasks is an important consideration and so technical and managerial skills are therefore an essential criterion in selecting expatriates. Indeed, research findings consistently indicate that multinationals place heavy reliance on relevant technical skills during the expatriate selection process.

For example, the Price Waterhouse survey (International Assignments: European Policy and Practice) of 184 European firms( nearly a quarter of which had their worldwide headquarters in the US) reports that the most important selection criterion were job-related skills (99 per cent) and leadership skills ( 76 per cent).

Reinforcing the emphasis on technical skills is the relative ease with which the multinational may assess the candidate’s potential, as technical and managerial competence can be determined on the basis of past performance.

Since expatriates are predominantly internal recruits, personnel evaluation records can be examined and checked with the candidate’s past and present superiors. The dilemma though is that past performance may have little or no bearing on one’s ability to achieve a task in a foreign cultural environment.

The cultural environment in which expatriates operate is an important factor in determining successful performance. Apart from the obvious technical ability and managerial skills, expatriates require cross-cultural abilities that enable the person to operate in a new environment.

An American manager who is considered an excellent communicator by his US colleagues because of his face-to-face and to-the-point style may be a disaster when required to communicate with say, Chinese or Japanese subordinates who value subtle, indirect forms of communication. Hence, the country where the posting is to be and its culture are likely influences in the selection of the candidates.

According to experience and research, there appears to be a consensus that desirable attributes should include cultural empathy, adaptability, diplomacy, language ability, positive attitude, emotional stability and maturity The managerial and technical competence is regarded as primary for an expatriate’s success, but, effectiveness and coping skills are also necessary.

Effectiveness skills is defines as the ability to successfully translate managerial or technical skills in to the foreign environment, whereas coping skills enable a person to become reasonably comfortable or at least survive in the foreign environment. It is not easy to define inter-cultural competence and even more difficult to measure it. What is needed is to measure relational ability of a person, i.e his/her ability to relate with another cultural group, which is also a personality related trait.

The contribution that the family, particularly the spouse, makes to the success of the overseas assignment is now well documented. For example, Black and Stephens (1989) examined the influence of the spouse on an American expatriate’s adjustment. They found that the adjustment of the spouse was highly correlated to the adjustment of the expatriate manager.

Hence, firms interview the spouse as an essential part of the selection process. Answers are sought to questions like, Will you be interrupting a career to accompany your spouse on an international assignment? If a formal interview evokes resistance, then the spouse is contacted informally and attitudes ascertained indirectly thorough friends.

Apart from the accompanying partner’s career, there are family considerations that can cause a potential expatriate to decline the international assignment. Disruption to children’s education is an important consideration, and the selected candidate may reject the offered assignment on the grounds that a move at this particular stage in his or her child’s life is inappropriate. The care of aging or invalid parents is another consideration.

Requirements In some cases, the multinational may wish to use an expatriate and has selected a candidate for the international assignment, but may find that the local Government do not allow it. Many developed countries are changing their legislation to facilitate employment related immigration which will make international transfers somewhat easier –for example the European Union Social Charter allows for free movement of citizens of member countries within the EU. It is important that HR staff keep up-to-date with relevant legislative changes in the countries in which the MNC is involved.

Further, the host country may be an important determinant. Some regions and countries are considered ‘hardship postings’: remote areas away from major cities or modern facilities; or war-torn regions with high physical risk. Accompanying family members may be an additional responsibility that the multinational does not want to bear. There may be a reluctance to select females for certain Middle East or South East Asian regions and in some countries a work permit for a female expatriate will not be issued.

These aspects may result in the selection of HCNs rather than expatriates. To overcome this problem, a group of more than 20 large multinationals (including Shell, British Airways, Unilever, Pricewaterhouse Coopers and Siemens) has established an organisation called ‘Permits Foundation’in an attempt to promote the improvement of work permit regulations for spouses of expatriates. It also aims to raise government awareness of the connection between work permits and employee mobility.

Apart from expatriate related factors, there are contextual factors, such as management philosophy and approach of the MNC- whether it is ethnocentric, polycentric, region-centric or geocentric. The status of the MNC-whether it is an international, multi-domestic, transnational or global company-also influences this decision to a great extent. Other situational factors include:

• The mode of operation involved: Selecting staff to work in an international joint venture may involve major input from the local partner and constraints imposed by the JV agreement terms.
• The duration of the assignment: Family members tend not to accompany an expatriate when the assignment is for a short duration, so family may not be a strong factor in the selection.
• The amount of knowledge transfer inherent in the expatriate’s job in foreign operation: If the nature of the job is to train local staff, then the MNC many include training skills as one of the selection criterions.

Language skills are be considered as of critical importance for some expatriate positions, but lesser in others, though some would argue that knowledge of the host country’s language is an important aspect of expatriate performance, regardless of the level of position.

Differences in language are recognised as a major barrier to effective cross-cultural communication. Yet, in terms of the other selection criteria we have examined above, from the multinational’s perspective, language is placed lower down the list of desirable attributes.

In the past, US multinationals have tended to place relatively low importance on foreign language skills. For example, in a 1990 study of US multinationals, Fixman found that foreign language skills were rarely considered an important part of international business success. She comments: ‘Language problems were largely viewed as mechanical and manageable problems that could be solved individually’.

This view is also conûrmed by the consistent and relatively poor performance of young Americans on polls of geographic literacy sponsored by the National Geographic Education Foundation. In the most recent 2006 poll of young American adults between the ages of 18 and 24 the following results were reported:

• 50 per cent of the sample thought it was ‘important but not absolutely necessary’ to know where countries in the news are located.
• 75 per cent did not know that a majority of Indonesia’s population of 245 million is Muslim (making it the largest Muslim country in the world).
• 74 per cent of the sample thought that English was the most commonly spoken language in the world, rather than Mandarin Chinese.

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• Realistic Job Review
• Performance Management System
• 360 Degree Assessment
• Employee Assistance Program
• What is Coaching?
• What is Mentoring ?
• Leadership Development
• Management Development
• Organisational Development
• What is Planned Change
• Types of OD Interventions
• What is Performance Management ?
• Performance Planning
• Competency Mapping
• What is Performance Appraisal ?
• Employee Performance Monitoring
• Performance Counselling
• Performance Management and Reward
• Ethics in Performance Management
• Role of HR Professionals in Performance Management
• What is Group ?
• Group Dynamics
• Organisational Culture
• Group Decision Making
• Group Conflict
• Diversity in the Workplace
• What is Executive Development?
• Functions of HRM
• What is HRIS?
• What is HR Audit ?
• What is Performance Appraisal?
• What is Succession Planning?
• What is International Human Resource Planning?
• What is Recruitment?
• What is Selection?
• What is Career Planning?
• What is Knowledge Management?
• Strategic Human Resource Management

Difference between Global HRM and Domestic HRM

• Expatriate Training & Development in IHRM
• International Compensation Management
• What is Disciplinary Action?
• What is Competency Based Training?
• What is Planned Change?
• What is OD Interventions?
• What is Organizational Behavior?
• What is Personality?

Theories of Personality

• What is Perception?
• What is Learning?
• Theories of Learning
• What is Attitude?
• What is Motivation?
• Motivation Theories

Mcclelland’s Needs Theory of Motivation

• Maslow’s Hierarchy of Needs
• Herzberg Two Factor Theory
• Vroom’s Expectancy Theory of Motivation
• What is Assessment Centre?
• Consumer Attitude Formation
• What is Culture?
• Consumer Decision Making Process
• What is Organisational culture?
• What is Leadership?
• What is Leader?
• Organisational Stress
• What is Organisational Culture?
• Trompenaars Model of Organisational Culture
• Organisational Culture Models
• Types of Organisational Culture
• Corporate Culture and Organisational Success
• Creation of Organisational Culture
• Sustaining Organisational Culture
• Managerial Decisions Affected by Culture
• Where Does Organizational Culture Comes From?
• Functions of Organisational Culture
• Ethical Organizational Culture
• What is Culture Assessment?
• Workplace Culture and Practice
• Changing Organisational Culture
• Innovative Culture in Organization
• Leadership in Organization Culture
• Organisational Culture and Business Strategy
• Organizational Culture and Strategic Planning
• ERP Implementation
• Business Process Management
• What is Competency Modeling?
• Kirkpatrick Training Evaluation
• What is Industrial Relations?
• Organisational Change
• What is Sales Budget?
• What is Sales Control?
• What is Sales Analysis?
• What is Sales Quotas?
• What is Sales Territories?
• Types of Powers
• Factors Affecting Communication in Organisation

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4 Expatriate Structures

This is the second of four in an article series entitled  How to Structure Global Mobility Assignments, Expatriate Postings and Cross-Border Secondments .  It was written by international employment attorney Donald Dowling with Littler Mendelson P.C.

Part I – Who Is and Is Not Expatriate

Once an employer understands which globally mobile employees are and are not actual business expatriates , the next task is to slot each actual expat into the most appropriate expat category. That is, select the most appropriate expat structure . Expatriate structures take different forms at different multinationals, but ultimately all business expats fit into or among four broad categories: foreign correspondent, secondee, temporary transferee/localized and co-/dual-/joint-employee .

Foreign correspondent. A “foreign correspondent” expatriate remains employed and payrolled by the home country employer entity while working abroad, rendering services from afar for the home country entity (not for some local host country affiliate or business partner). Foreign correspondent postings are easy to set up because nothing changes other than the place of employment (and other than that the expat might start receiving expat benefits). The challenge is that foreign correspondent postings risk violating host country immigration and payroll laws. A foreign correspondent may need a visa sponsored by some host country employer, and host country payroll laws may require the employer to make reportings, deductions, withholdings and contributions to host country tax and social security agencies that the home country employer entity is not set up to make without a host country taxpayer identification number (even an outsourced payroll provider needs its customer’s local taxpayer number).

• Shadow payroll . One tool here is “shadow payroll” (also called “ zero payroll ” and “ mirror payroll ”)—some cooperating host country entity reports the foreign correspondent expat’s income to local tax and social security authorities as if it were the payrolling employer, and then that entity and the employer do an inter-company reconciliation each payroll period, behind the scenes, perhaps with the employer paying for the shadow payroll service.

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Secondee.   “ Secondment ” means “employee loan.” A seconded expatriate remains an employee only of the home country employer entity but gets lent out to work for a host country entity, usually an affiliate or business partner of the employer. The secondee might get payrolled by either the home or host country employer (or both, via a “ split payroll ”). Usually the host country employer—which we might call the “beneficial employer”—reimburses wages and payroll costs to the home country “ nominal employer .” Some secondees stay on the home country payroll while the host country entity issues a shadow payroll to comply with local payroll laws. But a true secondee is not a co-/dual-/joint employee, because a true secondee never gets privity of employment contract with the host country employer.

Temporary transferee/localized. An expatriate transferee or “ localized” expat resigns from the home country employer, moves abroad and gets hired and payrolled by a new (host country) employer, often an affiliate or joint venture partner of the original employer but sometimes a host country services company like a local office of Globalization Partners, Adecco, Manpower or Kelly Services (or the expat might even become an independent contractor in the host country). The new host country employer usually extends retroactive service/seniority credit for past service with the home country employer and sometimes also pays some extra expat benefits—a so-called “local-plus” assignment.

While working in the new host country place of employment, a localized transferee expat renders services only for the new host country employer and does not retain privity of employment contract with the home country employer—other than perhaps an informal side letter or email outlining post-assignment repatriation expectations. The home country employer is not a co-/dual-/joint-employer because the expat formally resigned.

Of course, an expat transferee localization is only temporary. (A transferee who does not expect to repatriate is a “permanent transferee,” not a business expatriate. ) A localized expat (as opposed to a permanent transferee) expects someday to repatriate and re-localize back to the original home country location. A side-letter (or email) between the expat and the home country employer entity might memorialize this.

Co-/dual-/joint-employee. A co-/dual-/joint-employee expatriate is an expat simultaneously employed by two masters, the home and host country employer entities, essentially on a moonlighting basis. The employee works for two employers simultaneously, or else works a host country job actively while formally retaining status as “on leave” from the home country employer entity, with the home country employment arrangement suspended or “hibernating”—but not terminated. A co-/dual-/joint-employee expat may be payrolled by either the home or host country employer (or both, on a “split payroll”), or may be on a “shadow payroll” actually paid by the home country employer while the host country employer complies with its jurisdiction’s payroll laws.

• Intended co-/dual-/joint-employment . Ideally every co-/dual-/joint-employee expat arrangement gets structured overtly, with the expat either actively structured as an employee of both home and host country entities or else with the expat expressly on leave from the home country employer, leaving that employment relationship expressly “hibernating” but not severed. Sometimes the home and host country employers decide to use the co-/dual-/joint-employee structure to keep the expat enrolled in home country benefits programs or home country social security (say, under a social security totalization agreement certificate of coverage).
• Unintended co-/dual-/joint-employment . Too many co-/dual-/joint-employment expatriate arrangements get structured accidentally, either when an expat assignment is meant to be a secondment but the expat somehow enters an employment relationship with the host country employer, or else when an expat assignment is meant to be a temporary transfer (localization), but the parties fail to extinguish the home country employment relationship. A dismissed expat who ultimately wins the argument that he had served as an unintended co-/dual-/joint-employee could seek reinstatement or severance pay from the home or host country employer. These situations often get complex and expensive.

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This is just the second in a series of four articles explaining how to structure global mobility assignments, expatriate postings and cross-border secondments.  The next entry will deal specifically with what legal issues need to be considered when selecting the best expatriate structure based on .  Those include:

• Immigration
• Payroll laws
• Permanent establishment

This piece is largely based on an article originally published by Littler Mendelson, P.C., who holds the copyright.  It can be read  here .

Picture courtesy: Stock Photo Secrets

NEXT:  The Pros and Cons of Hiring Locals over Expats

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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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International Long-Term Assignments

International long-term assignments enable companies to expand their global reach, extend their network of resources, and increase in-house experience, while building a diverse and culturally aware workforce. Long-term assignments are generally a minimum of one year and may last 3-5 years total. The benefits offered typically support both the employee as well as their family.

Program Development

Historically, long-term assignment programs were unilateral – one policy applicable to all employees – and used to deploy highly-skilled talent. However, as globalization continually changes business requirements along with the need to grow and retain a strong global talent pool, some of the reasons companies use long-term international assignments have changed. The employee experience has also become a key consideration of talent retention and growth. As such the need for flexibility, scalability, and efficiency through cost containment has changed the long-term assignment program landscape.  With companies taking different approaches to their talent strategies, more are using alternative program configurations, such as tiered policies (often by assignment objective or job level), or structured core/flex programs which provide a set of core benefits to each tier, with flexible options also delineated by tier. For example, in a structured core/flex program, core benefits across all tiers may include compliance items such as tax counseling and immigration assistance as well as basic relocation support such as temporary living, travel to/from the host location, household goods shipment and home leave. A lower-level tier may have only a few flex options available such as language and cultural training or a small miscellaneous expense allowance. A higher tier may include a greater number of flexible options, such as a pre-assignment trip, education assistance, etc. There are many configuration options to support the need for employee flexibility and contain cost, but structure is an essential component of a core/flex program and helps keep exceptions to a minimum.

When developing a long-term assignment program, these initial steps are recommended:

• Consider the overall company culture, mobility philosophy, business objectives of the international long term assignment program, and common assignment  objectives.
• Identify employee job levels and demographics.
• Reflect on the importance of the employee experience as well as how the assignment policy can support DEI  initiatives.
• Determine the potential traffic patterns, if possible, to estimate the anticipated cost of the benefits under consideration. 

These initial steps will, in turn, help the company determine the desired program structure and ultimately, the policy parameters. In addition, having an established, comprehensive program with clearly defined parameters will help the company focus on global compliance with applicable immigration, tax, and employment laws.

A brief description of the components commonly found in international long-term assignment programs follows. It is important to note that not every component has to be included to have a successful program. The business reason for the assignment, regional variances, company culture, employee experience and cost all play a part in a company determining what components are included. It is also important to note that there may be variations on the descriptions included below.

International Long Term Assignment Program Components

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