Measuring expatriate return on investment in global firms: industry report for participating firms and their expatriates

The study upon which this report is based examines expatriate ROI practices from the perspective of the expatriate employee. Three key questions are explored: 1. How do expatriates define their return on investment to the firm? 2. How do expatriates perceive their return on investment to the firm is measured? 3. What factors influence changes in expatriate return on investment to the firm? This report complements the first report released in January 20073 in which expatriate ROI practices were examined in 51 global firms across 18 industries, with headquarters in six world regions. The first report provides statistical data to explain the challenges associated with defining and measuring expatriate ROI in global firms from the perspective of HR and mobility managers (that is, managers responsible for managing expatriates) This second industry report provides, possibly for the first time, statistical data to capture an alternative (but no less compelling view) of expatriate ROI from the perspective of the expatriate employee. The report examines questions that have rarely been asked of expatriates, such as how they believe expatriate ROI should be defined and measured, and the value that they feel they bring to global firms in their capacity as international assignees. Equally compelling is expatriates’ views about the factors likely to increase their return on investment to their firm, and the issues and problems that would likely make them leave their firm, either during or at the conclusion of an international assignment. The ongoing challenges of employee retention and career management are two key findings