Failed assignments: Why do so many expats come home early?

Risk is a factor in every business undertaking. When it comes to international assignments and corporate expats, knowing which risks are acceptable and which are not can mean the difference between life and death.

Out of sight, out of mind is no help when it comes to corporate expats, as the responsibilities of the employer only scale with the risks associated with any given international assignment.

Recently, we spoke with Rodger Cook, general manager of global security services at World Travel Protection, about the corporate expat phenomenon: what goes wrong when an assignment is deemed a “failure”, what goes into assessing personal and geopolitical risk, the benefits of working abroad, and the “career expat”.

Failed assignments

A failed assignment is when you send an employee overseas and it becomes clear that they’re not prepared: “I’ve spent the majority of the last 15 [to] 16 years as an expat, and plenty of people have come and gone,” said Mr Cook. “Often they’ll sign up for a two-year to three-year contract, and they’re home in six months.”

Mr Cook is in the business of minimising the risk of an assignment going wrong – a task that requires consideration of a wide range of risk areas.

“We’ll sit down and discuss the nuances of working somewhere like Papua New Guinea. We cover the safety, security, and wellbeing considerations,” he said.

Once an employer has decided on who to send, it’s up to Mr Cook and his team to identify liability areas based on the location (i.e., political, social, or geographic challenges), the nature of the work being undertaken, and the individual risk profile of the assignee.

When asked what tends to go wrong, Mr Cook pointed to three main kinds of stressors. Firstly, there’s the culture shock – either the local culture where the individual has been deployed or it’s the internal culture of the business to which they have been assigned.

“Whether it’s the spouse, the employee, or their family – sometimes, they get there and it wasn’t quite what they signed up for, and they can’t really handle being away from home,” said Mr Cook.

Secondly, there are the broader personal challenges that can arise while on assignment. “We’ve had examples where something has gone wrong – maybe it’s the breakdown of a marriage or some kind of financial loss that’s caused a negative impact on the family,” he explained.

Sometimes, these challenges have nothing to do with the assignment. Other times, the challenges of being in a foreign country can make otherwise manageable problems insurmountable.

Third, and finally, there are the truly unforeseen external circumstances that can throw an assignment into peril. Mr Cook cited a recent example in which a team was sent to South America, and a series of riots saw violence erupt in the city square, over which an assignee was lodging. His wife and children, having witnessed the bloodshed while he was on the job site, demanded they terminate the job early.

“She left, he left. And that’s an expensive activity,” said Mr Cook. Indeed, the costs are not just monetary – though flights, terminated rentals, shipping, and so on are certainly nothing to balk at.

“A recent study claimed that eight to 10 work days are lost when an employee relocates within his country, and up to 20 days for some international relocations,” said the Asian Tigers Group.

“In addition, a disenchanted employee may not fit in back at his origin country and, if so, they are likely to have far lower productivity. There are often issues with low self-esteem, lack of motivation, family problems, and even depression.”

The career expat

While a lot can go wrong, and many failed assignees will feel dejected and disenchanted with the expat lifestyle, others see it as a viable long-term plan.

“I’ve got friends that have been doing it for thirty years,” said Mr Cook. “They might come back, they might take a job in Australia, they might settle the kids for school, but then the first opportunity that comes, they’re usually away again.”

“It does get into your blood a little bit,” he said.

When asked what draws people to the corporate expat lifestyle, Mr Cook answered that, for him, it was “the sense of adventure … I wanted my kids to experience the world. When I [worked] in Zambia, Indonesia, and Madagascar, that was all with my family.”

Coming from a suburban Queensland town, the opportunity of seeing the world and doing it all with his wife and kids in tow was too appealing to pass up. But, he said, there are other benefits, too.

“When I’m hiring someone and I see they’ve got multi-country experience, that tells me something about them. It’s a real positive,” he said.

“Working in a cross-cultural environment, there are always things to learn, and it provides great opportunities to grow as a leader.”

In recent years, with a global pandemic to boot, many expats returned home. In the wake of the lockdowns and travel restrictions, however, Mr Cook said, we’re seeing a “resurgence” in expat workers.

“There are always ebbs and flows among expat populations,” he said. “But we’re still seeing a global skills shortage and, beyond that … there are always people looking for something new.”