Repatriation turnover: The influence of employee expectations

The purpose of the study is to explore the relationship between unmet employee expectations and repatriation turnover.Repatriation Turnover: The Influence of Employee Expectations October 28, 2011 James Brown jameswbrown@prodigy.net Keywords: repatriation, expatriate, expectations, retentionPurpose and Scope of the Research • Purpose: To explore the relationship between unmet employee expectations and repatriation turnover. • Scope: Units of analysis: Multinational Corporations and expatriate employees.Research Questions • Do expectations of returning expatriate employees matter for their retention in the organization? Significance of this Research for Management • Repatriated global managers have a turnover rate that is twice that of domestic managers, an immediate loss of investment for the firm and a long-term loss of knowledge and talent. • The cost to the organization can exceed $1 million per expatriate.Main Literature Themes and Authors Repatriation Cost Black & Gregersen, 1999; Black, Gregersen, & Mendenhall, 1992 Talent Management Lazarova & Caligiuri, 2001 Management of Knowledge Fink, Meierwert, & Rohr, 2005 Expectancy Theory Vroom, 1964 Met Expectations Porter & Steers, 1973; Wanous, Poland, Premack, & Davis, 1992 Mentors/ Sponsors Jassawalla, Connolly, & Slojkowski, 2004; Martin & Anthony, 2006 Repatriation Adjustment Black, 1992; Gregersen & Stroh, 1997 Realistic Job Preview (RJP) Phillips, 1998; Wanous et al., 1992 Themes (continued) Recognition Adler, 1981; Black & Gregersen, 1999 Organizational Support Arman, 2009; Lazarova & Caligiuri, 2001 Turnover/ Retention Gregersen & Stroh, 1997; Lazarova & Caligiuri, 2001; Lazarova & Cerdin, 2007; Stahl, Chua, Caligiuri, Cerdin, & Taniguchi, 2009 Intent to Quit/ Intent to Stay Gregersen & Black, 1990; Stahl et al., 2009 Organizational commitment Gregersen & Black, 1990 Employee Satisfaction Sanchez Vidal, Sanz Valle, & Barba Aragon, 2008; Stahl et al., 2009 Psychological Contract Lazarova & Caligiuri, 2001; Rousseau, 1989 Key Propositions Distilled from the Literature 1. Formal repatriation programs offer a systematic approach to address employee concerns, reduce the level of uncertainty concerning the follow-on assignment, and a process for managing employee expectations. 2. Organizational support throughout the repatriation process helps to reduce uncertainty and stress among employees. 3. The quality and frequency of communication with the employee, in the form of a realistic job preview (RJP), provides a mechanism to align employees’ expectations with realistic career opportunities. 4. Increasing global competition combined with economic uncertainty requires a systematic management approach to managing global talent and knowledge in order to respond to rapidly changing opportunities and threats.Conceptual FrameworkThesis Statement Organizations using a systematic repatriation process are more likely to retain globally experienced managers. Research Approach and Formation of Argument Petticrew and Roberts (2006) provide a framework used in conducting a systematic literature review: Step 1. Clearly define the hypothesis to be tested. Step 2. Determine the types of studies to be used in the review. Step 3. Conduct a comprehensive search to locate relevant studies. Step 4. Using an established criteria for which studies to include, screen the retrieved studies identifying to what degree they meet the inclusion criteria. Step 5. Critically assess the included studies. Step 6. Synthesize the results of the included studies. Step 7. Produce the findings of the review.Findings The results support the central thesis that meeting employee expectations during and after repatriation strengthens the psychological contract between the employee and the organization and improves retention among global managers. The research indicates that organizational support activities are not valued the same among repatriates, and the influences of specific repatriation program activities on employee turnover are not equal.Implications for Management Practice • MNCs would benefit from a strategic human resources perspective that defines expatriate experience as a component of professional development and is essential to harnessing the talent of globally experienced employees. • Because of the long-term costs to the organization of not having a systematic repatriation program, repatriation planning should be a strategic level concern. • Organizations must select among the effective components of a systematic program that will meet the needs of the firm and fit within the specific requirements of the organization’s budget. • Organizations need to continuously experiment with mechanisms to align employee expectations with the reality of the follow-on assignment.Future Research Agendas • Because of the time period of repatriation adjustment, a longitudinal study of its consequences would be necessary. • Advances in communication technology might mitigate the isolation associated with overseas assignments. • An emerging and permanent expatriate class will have significant implications for MNCs. • The overlap between the retention of globally experienced employees and the management of knowledge remains unexplored. • Repatriation program outcomes should be influenced by corporate culture, national culture, and industry