International assignments are often seen as a career milestone, offering executives and skilled professionals the opportunity to expand their expertise and drive organizational success on a global scale. However, what many organizations overlook is the complexity of retaining these expatriates after their assignment ends, or even during the assignment itself.
It has been found that 25% of expatriates leave their organizations within the first year of returning from an international assignment, with the figure rising to 26% within two years. This significant turnover is often linked to challenges like lack of clear career progression, underutilized skills, and personal difficulties in readjusting to life back home. Additionally, companies often lack formal strategies to support repatriation, exacerbating retention issues (Aperian)(ScholarWorks). These challenges don’t just come from the repatriation phase; many expatriates experience difficulties during their stay abroad, leading to early resignations or disengagement.
Key Challenges in Expatriate Retention
- Career Uncertainty Post-Assignment One of the most significant reasons expatriates leave their companies is the lack of career development after their return. Many expatriates find themselves without a clear career path upon repatriation, which leads to dissatisfaction and turnover. According to a 2020 study, ensuring career development opportunities both during and after the assignment can significantly improve retention rates (ScholarWorks).
- Lack of Cultural Adaptation and Support Cross-cultural adaptation plays a critical role in the success of expatriates. Cultural intelligence (CQ)—the ability to adapt and perform in a new cultural environment—can enhance job performance and expatriate satisfaction. Research shows that expatriates who receive cross-cultural training and support are far more likely to adapt to their new environments and succeed in their roles (SpringerLink). Without this, frustration, social isolation, and psychological distress often set in, leading to poor performance or early resignation.
- Insufficient Family Support It’s not just the employee who moves; their family’s adjustment to a new country is equally important. Studies highlight that when family members, particularly spouses, struggle to adapt to the new culture, expatriates are more likely to cut assignments short. Organizations that invest in family integration programs and provide social support networks see higher retention rates.
- Compensation and Benefits Misalignment While compensation packages for expatriates are typically generous, misalignment in expectations around bonuses, housing allowances, and benefits can lead to dissatisfaction. Expats who feel undervalued financially—especially after the assignment—may seek opportunities elsewhere where their expertise is better rewarded.
Strategies for Improving Expatriate Retention
- Career Development Programs Providing clear post-assignment career paths is essential. Companies with structured career development programs report higher retention rates of expatriates. Offering mentorship, leadership development, and new career opportunities can keep expats engaged long-term.
- Comprehensive Cultural Training and Support Boosting cultural intelligence through training programs helps expatriates overcome the adaptation challenges of their new environments. Programs that focus on social and professional adaptation ensure expats are equipped to thrive.
- Family Integration Programs Ensuring that the expatriate’s family is supported—through language training, cultural integration, and schooling assistance for children—can ease their transition, reducing the risk of an assignment ending prematurely.
- Recognizing Contributions and Value HR departments should ensure expatriates feel appreciated for their contributions both abroad and upon return. Aligning compensation with the added value of their global experience helps organizations retain top talent long after the assignment ends.
Retaining expatriates requires more than offering a competitive salary and relocation package. Multinational companies need to take a holistic approach by supporting expatriates and their families throughout the entire relocation journey and beyond. Investing in career development, cultural training, and family support will not only improve retention rates but also maximize the return on investment for international assignments.
At Siuma Mobility, we emphasize a full-circle approach to expatriate support. In a recent article from our blog, we discuss the critical role of cultural integration and family support in expatriate success, which directly impacts retention. By offering these services, along with continuous career development, we help ensure expatriates are engaged and satisfied throughout their assignment.
For more detailed insights, read our full article here.
