Transfer from expatriate to local contracts: a multiple case study of an unexpected career transition

ABSTRACT

The transfer of company-assigned expatriate employees from balance sheet expatriate contracts to local contracts is an alternative international assignment compensation strategy increasingly adopted by global corporations. Despite its growing popularity, there is a significant lack of research on the impact (both professional and personal) of transferring employees from expatriate to local contracts. The purpose of this qualitative case study was to investigate this emerging international HR trend, with specific focus on exploring the experiences of career transition of company-assigned long-term expatriates (delayed localization) to local contracts at multinational organizations located in Sweden and America. Eight individual cases were analyzed. Findings revealed that localization was an unexpected career transition, a negative type of career shock, characterized by limited support from employers, mentors, and local colleagues. The findings further indicated that localization was a type of career transition rather different from other previous career transitions experienced by participants; it represented a major career and life transition. Based on the findings, we proposed HRD interventions to assist expatriates during the transition from expatriate to local contracts. Areas for future research are also suggested.

KEYWORDS:

• Localization
• expatriation
• career transition
• career shock

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. The four paths of the model of employee turnover as originally identified by Lee and Mitchell (1994) are: path 1 – Occurrence of a shock; a memory probe resulting in a match, i.e. scripted behaviour to quit a job; individuals do not engage in image evaluation, search for job alternatives, or consideration of job satisfaction; path 2 – Shock to the system, no match, and no specific job alternative – a push decision; path 3 – Shock to the system, no match, and a presence of specific job alternatives – a pull decision; path 4 – No occurrence of a shock; turnover occurs because of routine and random assessment of employee commitment and attachment to the organization.