Define expatriation and labour mobility.
In an employment and global context, ‘expatriation’ refers to the non-local deployment of employees by multinational companies (MNCs) (Cretu et al., 2020). The process involves expatriated employees, provisionally or permanently, living and working in a different country. The reasons MNCs do this are manifold. However, a crucial aspect involves globally managing the talent of its workforce to distribute expertise when/where required to further its strategic interests.
Expatriation offers several opportunities for MNCs, such as globally amplifying exposure of products or services and accessing new markets (Cretu et al., 2020). However, if the expatriated employee is not adequately supported, social and financial drawbacks may manifest or contribute to attrition risks. Examples include language or cultural barriers, cost of living through inadequate support systems, and maladaptation to new laws or regulations. HRM can mitigate these risks through preparedness and supportive practices such as cultural awareness training, language orientation, comprehensive legal/regulatory compliance, and adequate rewards (Armstrong & Taylor, 2023).
A related but distinct process, ‘labour mobility’, refers to workers independently choosing to move between different countries for employment (Cretu et al., 2020). This type of movement is facilitated through some international mechanisms, such as work permits, trade agreements, and visas. The ease with which workers can freely move between countries for work purposes can be a source of sustained competitiveness for MNCs. This is partly due to access to a global talent pool of workers with strategically valuable skills and heightened organisational responsiveness to changing global circumstances (Armstrong & Taylor, 2023). Some associated risks involve safeguarding workers from exploitation and clear HRM communication to ensure workers are informed of global projects or assignment opportunities.
References
- Armstrong, M., & Taylor, S. (2023). The basis of international HRM. In Armstrong’s Handbook of Human Resource Management Practice: A Guide to the Theory and Practice of People Management (16th ed., pp. 543-550). Kogan Page.
- Cretu, O., Morrison, C., & Sacchetto, D. (2020). International Migration, Labour Mobility, and HRM. In U. Ayudhya, R. Prouska, & I. Roper (Eds.). Critical Issues in Human Resource Management: Contemporary Perspectives (2nd ed., pp. 65-84). Red Globe Press.
Define offshoring and globalisation.
In an employment and global context, ‘offshoring’ refers to multinational companies (MNCs) outsourcing or subcontracting specific operations and occupations from one country to another (Prouska, 2020). Operations characteristically offshored include manufacturing activities and customer services to third-party organisations or subsidiaries outfitted in different territories.
The reasons why MNCs consider such practices worthwhile vary according to the organisation's strategic objectives. However, commonly cited reasons may involve an advanced understanding of new markets, diversifying strategic risks, and reducing labour expenditure (Armstrong & Taylor, 2023). Shared with expatriation and labour mobility are associated with implementation factors such as cultural or language barriers. Two further factors may extend to redundancies within the home country for now offshored operations and contrary legal/tax/regulatory compliances to navigate internationally. HRM can take a strategic approach to mitigate the impact of offshored employees through related systems of orientating transition (Armstrong & Taylor, 2023).
Overall, such practices are enabled and facilitated by the influence of ‘globalisation’. This refers to the cumulative integration of global labour markets and cultures (Prouska, 2020). The opportunities from such a framework include increased movement of products, services, capital, and labour internationally. As a global trend, ‘globalisation’ has meaningfully contributed to how MNCs operate and fostered the development/growth of new markets. However, the challenge of this framework comes potentially from increased global inequality and redundancy (Prouska, 2020). Efforts to share the benefits of ‘globalisation’ and mitigate detriment is a shared responsibility of policy officials, industry leaders, and HRM professionals.
References
- Armstrong, M., & Taylor, S. (2023). The basis of international HRM. In Armstrong’s Handbook of Human Resource Management Practice: A Guide to the Theory and Practice of People Management (16th ed., pp. 543-550). Kogan Page.
- Prouska, R. (2020). Globalisation, HRM, and the Case of Offshoring. In U. Ayudhya, R. Prouska, & I. Roper (Eds.). Critical Issues in Human Resource Management: Contemporary Perspectives (2nd ed., pp. 121-136). Red Globe Press.
