The pros and cons of offering overseas postings
Landing an exciting role overseas is high on the agenda of many managers.
It may only be a career move planned once in a lifetime but it can have lasting effects on the manager, as well as the company. And not all of the effects are necessarily positive.
One of the main reasons a company offers overseas postings is to meet a new demand that cannot be met in the local job market. The primary lure for the manager to take such a posting is financial reward. However there are a number of pros and cons that need further examination.
Overseas postings: the pros for managers
The opportunity to go overseas brings the ambitious manager many rewards. Usually there is a large financial incentive attached, which is often compounded by favourable taxation laws.
The experience of an overseas posting can be invaluable. A manager will often be able to broaden his or her skills into job specific areas, as well as gain experience in dealing with different cultures. Upon return, the manager may find greater opportunity for advancement, particularly if the posting was successful and in a challenging environment.
The disadvantages for the manager
While most managers are generally very happy with what they achieve overseas, it’s not all plain sailing. They often spend a lot of their time feeling like a fish out of water. Language and cultural differences are the two main factors contributing to feelings of unease whilst overseas.
While many managers return from overseas postings like conquering heroes, this is not the experience for some. They might find their home company has moved on in their absence, leaving them behind. Prospects for advancement might be less certain. They might even find, to their frustration, that their international experience is either irrelevant or ignored by their employer.
The pros for the company
Clearly the overseas posting can give a company’s managers an opportunity to better themselves in challenging and diverse environments. When locals cannot meet the demand for a quality manager in an overseas office, then a posting is often the fastest way of meeting the need. If astute career planning is in play managers should be able to return home with more skills, meaningful experience and the ability to take on more responsibility.
Disadvantages for the company
The real costs of sending a manager overseas are very significant. To begin with, there is the cost of replacing the person being posted.
Re-location expenses can be exorbitant - up to three or four times the manager’s base salary. Some of these expenses include:
- Airfares and transportation of the manager, partner and family;
- Finding and paying for housing;
- Sourcing a company car;
- Home leave airfares; and
- Relocation bonuses and incentives.
Furthermore, there is the danger in some instances of the overseas postings being too attractive to the manager. What was intended to be a short tenure ends up being a lifetime posting. Some managers on overseas postings find that they are getting paid more, enjoying life more and having a more rewarding career. Quite simply, they don’t want to come home.
HR managers can move to prevent an extended stay happening, by making sure, contractually, that the manager must return after a set time. Generally, the longer the overseas assignment, the more likely it is, that the manager will not want to return.