How do MNEs benefit from superior international HRM especially when filling expatriate positions? What costs do MNEs face when expatriate assignments are unsuccessful?
What will be an ideal response?
The relationship between superior HRM and high productivity, competitive advantage, and value creation confirms the significance of people to performance. The power of this relationship transforms HRM. The financial and personal costs of expatriate failure, no matter how infrequent, are destructive. The average cost per failure can be as high as three times the expat's annual domestic salary plus the cost of relocation. The financial cost can easily reach $1 million when one accounts for the time and money spent in selection, preliminary visits to the location, and the lost productivity as things fall apart. An incalculable cost is the personal implications of professional failure to the formerly high-performing executive's self-confidence and leadership potential. Finally, a potentially greater cost is the hardship imposed on the spouse and family.
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