Ask the expert: Expats dual dilemma

By MARIE WILSON

Q. Our New Zealand-based company is successful in both the internal and export markets. The overseas operations sometimes require the assignment of a senior manager to an overseas office for a period of two to three years.

Typically, in our 50s with grown children but with ageing parents, our wives have usually returned to the workforce. What is a company's reasonable expectation, and an employee's reasonable expectation, given that overseas assignment will require our wives to relinquish their jobs, deal with an overseas culture and sometimes a foreign language, normally be unable to find employment because of work permit restrictions, and then return some time later only to go back on the job market?

The company seems to operate with an unawareness of any family considerations, and compensation offered for overseas assignments is considerably less than our spouses earn in New Zealand.

A. Expatriate assignments are one of the primary ways companies develop managers who understand the international nature of the business. In the past, companies focused on trying to make sure the managers were prepared for the assignment as well as possible, although they often fell far short even in this arena.

In the past 15 years, the evidence has been mounting that family preparation is probably one of the most critical aspects of making sure an expatriate assignment is successful, and increasingly this has meant trying to accommodate dual-career families.

There are several ways that companies can attempt to support expatriation assignments when two careers are involved. At a minimum, language and culture training should be available pre-move and during the first six months overseas.

Career counselling for the relocated spouse, and career re-entry assistance on return to New Zealand, can be helpful as well. Most international assignments with two careers do involve a step down in combined earning power; this may be offset in part by careful tax and financial planning, which would also be part of good expatriation practice.

While it can be disruptive for your spouse's career, this can also happen with a change of cities or even a major career move to another company. New Zealand-based research has indicated that overseas experience, even without working, may be good career development, particularly if you learn a new language and culture.

Both you and your spouse should try to gain the best possible view of what both the opportunities and obstacles are, and negotiate for how your company can assist in the process. It is expensive for both organisations and employees, and some extra planning and preparation are worthwhile investments.

For your own planning, your discussions with the company should include a formal understanding of the expectations of you while you are overseas, and what you will return to after your expatriation period.

With grown children and ageing parents, you may also want reasonable provision for annual or six-monthly "home visits" for both you and your spouse. This will also allow you to maintain your networks at the company's New Zealand office until your return.

* * *

Email a question for Dr Marie Wilson

Dr Marie Wilson is associate professor of management at the University of Auckland Business School, research director of the ICEHOUSE business accelerator and a veteran of 20 years in corporate management and small business.