Expatriation is the process of sending managers to another country to run a
subsidiary of a multinational organization. Companies spend huge amounts of money
on their expatriates. In a study done by Stelmer (2001), it is estimated that most
companies spend between $300,000 and $1,000,000 annually on an individual on
foreign assignment. On completion of the international assignment, the expatriates
return home and then the process of repatriation begins. However companies
often underestimate the repatriation process because the employees are just ‘coming back home’ so there are supposed to be no difficulties in adjusting to their
own environment (Adler, 1981; Tung, 1998; and Stroh et al., 1998). Because
companies underestimate the repatriation process, there is a tendency that
employees who have been sent to work abroad are more likely to seek new job
opportunities than the ones who have not (Stroh, 1995). Black and Gregersen
(1999) show in their study that 25% of the repatriates left their companies within
one year of repatriation, which is twice as much as the ones who have not
experienced expatriation; and in addition, if the employee leaves the organization
the cost of replacing the employee is almost 29% (non-management) to 46%
(management) of the person’s annual salary.
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