Welcoming the Value That Inpatriates Bring

Description

The temporary inpatriation of foreign subsidiary managers to HQ is on the rise: it´s cheaper than expatriating staff, it´s often the best way to gain local knowledge fast, it wins over local workforces and it expands the prospects for staff development and promotion. However, the author´s various studies of subsidiary staff relocated to the headquarters of multinationals reveal that for inpatriation to work, both the individual inpatriate and the multinational need to understand the key factors that make or break these special arrangements. If the inpatriate is able to build good social capital, is mentored by HQ staff and can speak the language of the HQ country, then both sides stand to reap mutual benefits from the exchange. If there is an ethnocentric attitude among HQ staff, a large distance between the inpatriate´s home culture and the HQ country culture, and no real thought given to what happens to the inpatriate when the assignment is done, then the transfer is bound to fall flat. The author recommends that multinationals carefully manage inpatriation at every stage of the process - from selection and preparation, to relocation and reintegration - in order to minimize turnover tendencies and capitalize on the real value that these younger managers bring. Managing this process well can help MNCs to develop strong leaders who can effectively bridge different units and understand both global strategic concerns as well as local market requirements, which is so vital today.

Keywords

culture ethnocentric exchange expatriation inpatriation social capital subsidiary turnover