France Expatriate Guide

University of Cincinnati

SPRING2008

THE EX-PATS GUIDE TO FRANCE

Created by: Joy Josephs and Kristin Schaub

The Ex-Pats Guide to France University of Cincinnati Table of Contents: Executive Summary ----------------------------------------------------------------- 3 French Economic History ----------------------------------------------------------- 3 Reasons for Expatriate Assignments ---------------------------------------------- 6 What not to do ------------------------------------------------------------------------ 7 Gert-Hofstede and other Cultural Considerations ---------------------------- 14 Strategies for Success -------------------------------------------------------------- 18

2|Page

The Ex-Pats Guide to France University of Cincinnati Executive Summary: In the emerging globalization present in today’s society, a company’s geographic reach it getting larger and larger. As globalization is ever present and technologies are catching up worldwide, it is becoming increasingly important for company’s to open multiple locations and offices worldwide. This provides a company access to new regions as well as a potentially more cost effective way of doing business. This push for a company to become a multinational company is leading to a new trend known as the expatriate assignment. More and more professionals are looking to further develop and promote their careers by taking on international assignments. The assignments can certainly be beneficial to your career, but it does not come without its own set of obstacles. One must be flexible, willing and adventurous to be successful. However, it is up to the company as well to have solid practices in place to help the expatriate assimilate to their new job as well as new culture. In this paper, we will present what we believe to be some of the most important aspects of an expatriate assignment. We will look at the situation from an American expatriate’s eyes when taking an assignment in France. In order to have the best understanding of France in regards to business and culture, it is important to have and understanding of their economy and how it functions. Then we will go into the reasons for expatriate assignments, followed by reasons contributing to failure. Later, comparisons will be drawn between French and American culture and lastly we will discuss strategies for a successful assignment. We hope that by doing so, an expatriate would have a better idea of what to expect in France, and more importantly what they can do to actively engage in the process.

French Economic History: The progression of French economy can be divided into 3 major periods: Medieval France-18th Century, Modern France and Post War France. All offer distinctive differences and shifts in policies that help explain France today. As we know, a country’s economic practices have great influence in the way they conduct business, both domestically and internationally. For this reason, it is important to understand a country’s background. Now we will discuss the three major periods:

Medieval France (Pre 1500s) During this period, the economy of France was focused on agriculture. However, there was some trade occurring with nearby countries. Trade was primarily geared towards textiles and luxury goods. This was the beginning of the development of international trade centers on French coasts and urban areas. It was also the start of the industrialization of France, which allowed them to develop metals abundant in France. 3|Page

The Ex-Pats Guide to France University of Cincinnati 15th to 17th Century France By the end of the 14th century the French economy began to grow rapidly. This is time that France began focusing on colonization. During the 16th century, the Americas, Africa and Asia were some of the parts of the world where colonization was occurring. This growth was due in large part, to the growing international trade around the world. Due to colonization, the production of products that were traditionally produced in France, such as textiles and luxury goods, became cheaper to import than to produce locally (the premise of international trade). There was a decline in the economy in areas that focused heavily on this textile and luxury good production. During the 17th century, the French aristocracy started to protect the production of these goods in the hopes of boosting French economy. These protectionist economic policies were aimed at protecting the French textile industry from cheaper non-domestic producers. This was the beginning of government intervention in the French manufacturing industry. Most goods produced during the 17th century were still geared towards luxury goods. The government intervened, which revamped and restructured the manufacturing industry. Their objective was to ensure that industry, its investors, and employees were all protected. The government also heavily regulated international trade in order to alleviate some of the pressure from local French industries that found themselves unable to compete with international merchants. In the later part of the 17th century, a series of wars caused a rapid decline in French economy.

18th Century France Through the 18th century, France had experienced economic growth. However, in order to protect domestic agriculture and industry, France continued its protectionist policies for certain products. During this time, international trade was still prevalent, particularly in slave trade. Due to the boom in slave trade, there was a surge in development of French trade ports. However, towards the end of the 18th century, the French Revolution would cause a major setback in the French economy.

Modern France (19th – 20th Century) The end of the French Revolution in the 18th century marked the beginning of a new era in France. Napoleon’s focus on war stimulated the growth of its manufacturing industries. However, shift in priorities and focus on war with other European countries caused a serious decline in the French economy. The ongoing wars severely affected international trade, as France was experiencing deteriorating relationships with the rest of Europe. By the time Napoleon was defeated, France’s economy was in desperate need of reviving. However, there was no real relief in sight. Through the rest of the 19th century and into the 20th century, France was plagued with more wars. The climax of the war period peaked with the first and second World Wars. Recovery of the French economy after these wars proved to be extremely challenging. France had lost many of its capabilities to innovate due to the loss 4|Page

The Ex-Pats Guide to France University of Cincinnati of life in the war and the destruction of infrastructure. However, France did manage to rebuild itself steadily over a period of years.

Post War France (WWII -2000) As alluded to previously, this time allowed the French to rebuild their economy. Growth in the manufacturing industries during the war has helped fuel this growth. There were, however, some remnants of France’s protectionist policies remaining from before the war. French government intervened in the industrial sector which helped quicken its development. However, pre-war French protectionist policies were still prevalent. Although free trade was supported, France was lagging behind other European countries in embracing globalization.

France Today France’s past history was plagued by economic downturns and wars, resulting in French protectionist views still continuing to pervade their economic policies. However, the rapid growth of globalization has forced the French to rethink their economic policy. “Despite France's reputation for insularity and protectionism, it is the enthusiasm of its companies for globalization that has helped them to increase their local industry’s profits. Their international scope protects them from downturns in some markets. Some French firms now want to curtail production at home and switch to cheaper manufacturing abroad. Michelin (profits up 35%) and ArcelorMittal (up 30%) both plan to close French factories to improve their international competitive positions.”(http://www.economist.com/not so exceptional/pg.1) France is becoming more and more open to the global economy. Moreover, they are realizing its importance if they are to continue to grow. Traditionally, French government has intervened with the industry sector. Prior to the most recent French elections, then president, Nicolas Sarkozy, vehemently promoted his protectionist ideals. “He has been whizzing round the country making protectionist noises. He popped up at the Alstom factory in La Rochelle last month to unveil a new high-speed train and to remind people that its maker is only around today because he bailed it out four years ago.” (http://www.economist.com/not so exceptional/pg.1) The battle between government intervention and privatization continues to be a prominent issue. However, the demands of globalization have fueled a push to continuously adapt to the rest of the world. France is experiencing this push, and is slowly making strides to respond.

Additionally, due to a downturn in the economy of the United States, French companies have decided to capitalize and pursue globalization more aggressively. French companies are experiencing a great amount of growth. “In recent weeks leading companies such as ArcelorMittal, Total, L'Oréal, Suez and PSA Peugeot Citroën have all reported huge profits for 2007 and a cheerful outlook for this year. But what has boosted their profits? Despite France's reputation for insularity and protectionism, it is the 5|Page

The Ex-Pats Guide to France University of Cincinnati enthusiasm of its companies for globalization. Their international scope protects them from downturns in some markets.” (http://www.economist.com/not so exceptional/pg.1) Since this growth is largely due to globalization, it makes it more difficult for the French government to continue to hang on to their protectionist policies. For continued growth, they will need to grow and cooperate on a global scale. Knowing this history explains why it might be hard to enter the French market, as a company, or as an expatriate. France’s history suggests it is a highly proud and independent country, not as welcoming of foreign encroachment as other global players. However, at the same time it is evident they are beginning to realize the importance of global players as part of their economy. As economies become more interdependent and other economies begin to stumble, the French economy will experience more involvement from other countries as well as become more involved in other countries. France is choosing to take many of their companies global and many other companies are beginning to open locations in France. This being the case, we know that more and more ex-pats will end up in France on assignment.

Reasons for Expatriate Assignments For many wanting to move up the corporate ladder, taking an assignment in a foreign country is one of the steps required for advancement. The benefits of international assignments are twofold. First, for the employee, it provides a path for advancement as well as a learning experience. And, for the multinational corporation that they work for, expatriates provide management skills necessary for global and local enterprises. The international assignment is becoming a reality to many working for multinational companies as, “some 44% of multinationals report an increase in the number of international assignments over the past two years.”i Accepting an ex-pat assignment, while furthering your career path, also comes with some adjustment. We will explore the difficulties faced of an ex-pat assignment later. Interestingly enough, the success of the assignment does not solely rest on the employee, as the company that the work for also heavily influences their success. It is important that the multinational corporation also has a plan in place for implementing the global assignment. In other words, the global assignment needs to be a joint effort between the multinational and the employee. Several models have been developed in an effort to obtain the most value from an international assignment. After further review, this model (see below) seemed to be the most effective, in that it involves all parties in the development of the international assignment. When an employee shows interest in an international assignment, it is both comforting as well as ensures the best odds of success when a company has a preconceived, well developed plan in place when re-assigning employees, rather 6|Page

The Ex-Pats Guide to France University of Cincinnati than just sending them off, without understanding the employee's abilities, weaknesses, etc. This model is referred to as the Expatriate Management Model.ii

Stakeholder sastifaction and contribution

Repatriation new assignment

Strategy definition Define objectives

Assignment Planning -Assess processes and capabilties

Assignment Development

International Worker Profile

This is an interesting model, in its attempts to place financial value on an ex-pat assignment. This may be a difficult task. But what is not is determining the intangibles that make an international assignment attractive to both employers as well as employees. One can look at ex-pat assignments in regards to value drivers. The most important value drivers of an ex-pat assignment include, but are not limited to: •

•

•

• •

Professional Development –An international assignment allows an employee the ability to enhance their skill set. Additionally, it creates an opening for an employee to move up the ranks as they have a better understanding of the company as well as a greater understanding of management. Knowledge Transfer –In the case of an international assignment, the knowledge transfer aspect goes both ways. The ex-pat going over, is able to transfer their knowledge and competencies to those they interact with, and the ex-pat, if willing can learn a lot through their interactions in both a new culture and context. Fulfillment of scarce skills –This is an issue that many multinational experience, as often times, skills prevalent in one country may not be so in another. The ex-pat provides a multinational the flexibility of knowing they have someone to fill a skill set at all times, as opposed to having to settle for a less than desirable choice. Control –Ex-pat assignments allow multinationals to maintain control over their global locations Coordination – Many times coordination is needed to lead projects and initiatives globally. 7|Page

The Ex-Pats Guide to France University of Cincinnati When a company seeks to fill an international assignment, these are some of the key value drivers they consider. By doing so, they create an international worker profile and can better target employees that would suit the assignment. Matching the right employee with the right assignment is critical for success.

What not to do on an Expatriate Assignment Factors that Contribute to Expatriate Failure In today’s global economy, it has become increasingly important to ensure the success of expatriates. Expatriate failure is most usually defined as “premature return.” (Factors that Influence Expatriate Failure: An Interview Study, 2007, pg. 404) However, this definition has proven insufficient, as there are many other factors leading to failure, not limited to leaving the assignment early. An expatriate that is able to stay at their assignment until its completion does not necessarily define expatriate success. Due to the growing number of expatriates in today’s economy, multinational corporations (MNCs) need to more clearly define and consider what success is and develop a strategy to ensure that it happens. “Nearly 80% of midsize and large companies currently send professionals abroad and 45% plan to increase the number they have on assignment.” (The Right Way to Manage Expats, 1999, pg. 53) The increasing number of ex-pat assignments is of particular importance as there are significant cost implications to sending expatriates overseas. “On average, expatriates cost two to three times what they would in an equivalent position back home. A fully loaded expatriate package including benefits and cost of living adjustments costs anywhere from $300,000 to $1 million annually.” (The Right Way to Manage Expats, 1999, pg. 53) Multinational corporations have a vested interest in making sure that failures are kept to a minimum when it concerns sending expatriates on a job assignment. There is a heightened level of uncertainty that naturally comes with working as an expatriate. The inability to deal with those uncertainties, both by the multinational corporation and the expatriates themselves, increases the chances of failure. The consequences of that failure are non-completion of an expatriate’s assignment, and subsequently an expatriate leaving the company upon return. It is the multinational corporation’s duty and goal to prepare expatriates for those uncertainties, in order to avoid very costly consequences. An expatriate’s job assignment overseas can be divided into three phases: Pre-Departure, Duration of the Job Assignment, and Post-Job Assignment Phases. The management of expatriates becomes more effective and efficient when taking into consideration some of the most common failures that happen during these phases.

Pre-Departure Phase This phase involves the planning that ensues before an expatriate leaves for their overseas job assignments. Planning before an expatriate’s departure should involve: Definition of the Goals of the 8|Page

The Ex-Pats Guide to France University of Cincinnati Assignment, Choosing an Expatriate Candidate for an Assignment, and Making Arrangements for Departure from the Home Country.

•

Definition of the Goals of the Assignment: the non-existence of clearly defined goals can be detrimental to an expatriate going overseas. Some expatriates are sent without any knowledge of what needs to be accomplished during their assignment. Often times, managers of multinational corporations are very focused on filling very short-term needs. “Some of these needs are burning business needs, increase market share, open manufacturing facilities, and keep technology up to date and efficient.” (The Right Way to Manage Expats, 1999, pg. 54) Along with the focus on short-term needs is the over emphasis on building technical skills. If expatriate’s goals revolve around gaining the technical knowledge, it doesn’t develop the management skills necessary to be successful in global marketplace. Job assignments for expatriates, at times, are not in step with the multinational corporation’s goals in that particular region of the world. If there is no clear direction on how to develop the region of the world where a multinational corporation wishes to have a presence, then an expatriate’s purpose becomes very unclear as well.

•

Choosing an Expatriate Candidate for an Assignment: in the past, there has been a great emphasis on the technical capabilities of a potential expatriate candidate. It was sufficient for someone to have the proper know-how, but not necessarily other personal relational factors. Firstly, managers of multinational corporations have chosen candidates that cannot effectively deal with the cultural change. An expatriate who takes an overseas assignment has to be able to handle a certain “degree of stress, isolation and alienation” (Expatriate selection: good mgmt or good luck? 2005, pg. 4), which naturally comes with being in a different country and culture. Secondly, candidates that have poor relationship skills are chosen as expatriates. Such individuals do not effectively communicate, empathize, relate, and respect people of another culture. They are not able to adapt to any of the values and norms of the culture they are sent to be a part. Thirdly, some candidates that are chosen as expatriates are unable to be truly accepting of cultural differences. They become judgmental and unwilling to understand the perspective of others. Lastly, there are no tools in place that can effectively allow managers of multinational corporations to choose qualified expatriate candidates. Some corporations have no formal standards or policies in place that can help them identify these candidates. These standards could also serve as a springboard for training candidates effectively, as well.

•

Making Arrangements for the Departure from the Home Country: Managers that are making arrangements for the expatriates to depart from their home countries, have to avoid a few key mistakes. One common mistake is multinational corporations do not have sufficient training 9|Page

The Ex-Pats Guide to France University of Cincinnati programs in place for expatriates and their families. Many times, training programs are done more on an informational level and not in-depth immersion. The length of training has been geared more toward providing general information, not the depth of knowledge an ex-pat will need. Most cultural aspects of training programs have been focused on teaching the language of the host country. There has not been equal emphasis on cultural and social aspects of the host country. Second, training programs are more geared towards the expatriates, and not their families. The lack of focus on the families will significantly affect expatriate success as they are typically a crucial factor in determining success. Extensive studies have indicated that “willingness of the spouse to live abroad, adaptive and stable supportive spouses and a stable marriage” (Managing MNC Expatriates through Crises: A Challenge for International Human Resource Management, 2004, pg. 3) are key to the success of expatriates. “A survey conducted by Windham International and the National Foreign Trade Council (1999), revealed that a large number of international assignments are turned down or interrupted because of spouse and family issues. The survey’s respondents cited family adjustment (65%), spousal resistance (53%) and spouse’s career (45%) as the most critical roadblocks to acceptance and success of international assignments. Substantial research specifies that if the expatriate’s spouse and/or family members are having trouble adjusting abroad, the expatriate will have problems as well, including poor job performance, which could result in an early return from the overseas assignment.” (Managing MNC Expatriates through Crises: A Challenge for International Human Resource Management, 2004, pg. 4) Third, at times there are certain ambiguities concerning basic logistics. For example: the length of stay, the role of the expatriate upon arrival to the host country, compensation, and living arrangements. These logistics play a large part in the decisions that an expatriate makes, and the level of trust an expatriate develops with a multinational corporation. Lastly, managers of multinational corporations insufficiently prepare the host corporation for an expatriate’s arrival. The local company has to be informed of the role of the expatriate and the environment in which they should function. The host country may be less apt to accept an expatriate’s presence if there are no tools to help prepare them for their arrival. Duration of the Job Assignment: This phase involves the management of an expatriate while performing the duties of their job assignment overseas. The management of expatriates can be complicated. A multinational corporation has to consider, not only its practices at home, but the practices of the host country as well. The lack of good management, both at home and overseas, can contribute to the failure of expatriates for the duration of their job assignment. Some of the most common factors that contribute to expatriate failure during the job assignment are: ineffective human resource practices both at home and overseas, lack of communication and support from the home corporation, unclear performance indicators, and a vague and unfair compensation structure.

10 | P a g e

The Ex-Pats Guide to France University of Cincinnati •

Ineffective Human Resource Practices: A multinational corporation has to pay close attention to their corporate culture. Often times, human resource practices drive the home culture and not the country in which the expatriate is entering. This makes it exceptionally difficult for the expatriate working overseas to adjust to the foreign environment successfully. Self-focus and superiority driven HR practices can also lead to an “us vs. them” culture between the expatriate and the local staff. It leads to a general distrust and a lack of cooperation between expatriates and locals. “An ethnocentric HR practice that favors the expatriate over local staff, whether intentionally or unintentionally sends a message to local staff that they are less valued than the expatriates, As a result, local staff is less likely to feel friendly or supportive towards expatriates who receive favorable treatment for reasons that may not always seem obvious or acceptable.” (A Local Perspective to Expatriate Success, 2005, pg. 133) Secondly, if human resource departments of multinational corporations are unable to see the importance of the local staff, the sentiment will be imbedded into the expatriate sent overseas. Therefore, the expatriate is unable to contribute knowledge and expertise to the local staff, which are ultimately essential to their success. For example, in China, “they perceive expatriates as being sent to be “watchdogs” for headquarters instead of value-added resources. Clearly, the mistrust and dissatisfaction with the expatriate and the multinational set the whole stage for a whole host of negative consequences for the multinational, such as lowered productivity and effectiveness and higher rates of turnover and absenteeism. When resentment is high, more counterproductive behaviors may also ensue, such as theft and sabotage.” (A Local Perspective to Expatriate Success, 2005, pg. 133-134)

•

Lack of Communication and Support from the Home Corporation: Multinational corporations can, at times, have an “out of sight, out of mind” mentality when it comes to expatriates. Once the expatriate arrives overseas; the individuals at the host country, primarily, manage them, and those where the expatriate come from can forget. As a result, the inflow of information facilitated by communication with the multinational corporation is reduced to a minimum. A lack of information can have serious consequences. First, the expatriate is not in touch with the overall roles, the overarching goals, and job expectations associated with the job assignment. It can render an expatriate ineffective in making daily decisions. Second, expatriates and their families are left to feel like they are fending for themselves. They have no ties to their home country and obtain the support necessary in order to feel grounded in a new environment. The lack of connection with the familiar leaves families feeling isolated. Third, insufficient communication leaves an expatriate detached from the goals, which the multinational corporation would like to achieve. Constant communication about these goals are necessary to make sure that the expatriates job assignment stays consistent with what the multinational corporation is trying to accomplish. “Emotional support helps a person to believe that he or she is cared for, esteemed and valued, and belongs to a network of communication and mutual

11 | P a g e

The Ex-Pats Guide to France University of Cincinnati obligation. It includes the friendships that provide emotional reassurance, or instrumental aid in dealing with stressful situations” (A Local Perspective to Expatriate Success, 20055, pg. 136)

•

Unclear Performance Indicators: while an expatriate is at a job assignment, performance indicators are necessary to track the expatriate’s success. These performance indicators must be in step with the goals that are determined by the multinational corporation. The lack of performance indicators affects the following: the relationship between local staff and the expatriate and poor management of expatriate success. Performance indicators help determine the career path of a manager. The same is true for an expatriate. Not only do performance indicators help map an expatriate’s career path while on a job-assignment, it also determines the path of the job-assignment itself. An unsuccessful expatriate will have a difficult time meeting performance indicators, which is directly related to unmet job-assignment goals. The relationships of expatriates and local staff need to be incorporated into performance indicators as well. An expatriate that cannot gather the support of local staff cannot accomplish the goals of the job. “Those sent to manage local employees quickly lose credibility if they appear to have little local understanding or lack endorsement from other local staff managers. Also, if expatriates do not become part of the social network, decisions may be made without the full input and acceptance of the local employees.” (A Local Perspective to Expatriate Success, 2005, pg. 135)

•

Vague and Unfair Compensation Structure: expatriate compensation varies between multinational corporations. Because of the absence of guidelines for expatriate compensation, it can be a source of controversy within multinational corporations. The absence of guidelines can cause a multinational corporation to withhold an offer of additional incentives to an employee in order for them to accept an assignment overseas. It can also contribute to an “us vs. them” culture between expatriates and local staff. This is largely due to the disparity between the salaries and benefits of expatriates and the local staff. Traditionally, expatriates have higher compensation for similar jobs than local staff. However, a guideline can create fairness in compensation, and secure the loyalty of the local staff as well. (A Local Perspective to Expatriate Success, 2005, pg. 137)

Post-Job Assignment Phase This phase describes the duties of the multinational corporation upon the expatriate’s return. Some of the factors that cause a multinational corporation to experience high turnover rates involve: poor repatriation procedures, and job stagnation.

12 | P a g e

The Ex-Pats Guide to France University of Cincinnati •

Poor Repatriation Procedures: Often times, multinational corporations do not prepare for the expatriate’s return. This type of preparation involves a considerable amount of care and effort to make sure that the expatriate easily adjusts to life back home. “Several research findings indicate that 25% of employees who complete overseas assignments want to leave their company on their return. It has been determined that the cost of losing a single repatriated employee has been estimated to be as high as $1.2 million” (Managing MNC Expatriates through Crises: A Challenge for International Human Resource Management, 2004, pg. 4) There are a great deal of changes that occur while an expatriate is gone. “Changes in and out of the office can also make homecoming difficult. The company may have reshuffled its top management, reorganized its reporting structure, or even reshaped its culture.” (The Right Way to Manage Expats, 1999, pg. 60) If a multinational corporation doesn’t provide the tools that will enable an expatriate to adjust to these changes, they will potentially leave. Multinational corporations neglect to incorporate procedures that provide counseling, both organizational and cultural, to expatriates and their families. It is imperative to help both the expatriate and their family to reassimilate into their home culture. That, in turn, will help them to re-assimilate into their organizational culture. Preparation involves thinking ahead to ensure that expatriates have a particular direction upon their return. Some multinational corporation’s repatriation procedures also does not include the following: a provision of re-entry training combined with a repatriation program to support the repatriate and help the family readjust back into their home country, relocation benefits (such as arranging pre-repatriation home country ‘house hunting’, school registration and the shipment of personal goods, would further reduce the problems associated with a return home). (Managing MNC Expatriates through Crises: A Challenge for International Human Resource Management, 2004, pg. 6) Although formulating procedures that incorporate all these items can be challenging, it is essential to ensure that an expatriate will remain at the parent firm upon their return.

•

Job Stagnation: Expatriates find themselves unfulfilled, or at times even disappointed, at their job placement upon their return. Numerous studies have found that “their permanent position upon returning home was a demotion from their posting abroad, and 61% said that they lacked the opportunities to pout their foreign experience to work.” (The Right Way to Manage Expats, 1999, 60) There are a couple factors that contribute to an expatriate’s perception of job stagnation. First, expatriates have found themselves questioning whether their expertise and what they’ve learned during their job assignment have any place in the multination corporation. Most of these corporations do not consider the following: repatriation planning at the time of expatriation, provisions of a specified period of the assignment and a return incentive payment, and an assurance of a job that is mutually acceptable (i.e., one equal to or better than the one held before leaving). (Managing MNC Expatriates through Crises: A Challenge for International Human Resource Management, 2004, pg. 6) This causes an expatriate to feel that their accomplishments during their overseas assignment go unrecognized. Second, expatriates find 13 | P a g e

The Ex-Pats Guide to France University of Cincinnati that their compensation is not commensurate to the knowledge that they have gained on their job assignment. Expatriates take on overseas assignments, because they believe that it will advance their careers. More of ten that not, multination corporations imply that overseas assignments ensure career advancement. Therefore, it is often expected that a job promotion along with an increase in pay, is waiting when they return. Once again, it is the perception that they are being recognized for their sacrifice, hard work, and newly obtained skills. If there is someone else that can offer a higher position and pay, then a parent firm’s turnover will be high. “International assignments end badly for several reasons. First, although employers give little thought to their return, expats believe that a successful overseas assignment is an achievement that deserves recognition. They want to put their new skills and knowledge to use and are often disappointed by the blasé attitude at headquarters toward their return and by their new jobs.”(The Right Way to Manage Expats, 1999, pg. 60)

As mentioned above, there are many uncertainties that come with taking on overseas job assignments. A multinational corporation has an obligation to its expatriates to ensure that their assignment is a success. Proper management of expatriates during the three phases mentioned above will help a multinational corporation succeed in its development of expatriates. They can effectively control the cost that comes with managing expatriates, and at the same time, increase the returns through successful assignments and repatriation.

Gert-Hofstede and Other Cultural Considerations So, now that we are more aware of the considerations given when selecting the right person for an international assignment, we will now take a closer look from the perspective of a company getting ready to send one of their employees on an international assignment to France. First, we must familiarize ourselves with French culture as well as business etiquette. French Culture –The Gert- Hofstede Index It is essential for a perspective ex-pat to be aware of the culture in which they are entering. It is very helpful to understand where differences may exist between the cultures. By doing so, future problems can be alleviated in advance. Now let us compare the American culture to French culture in the framework of the Gert-Hofestede Index of Cultural Dimensions. Below, you will see a side by side comparison of French versus American culture.

14 | P a g e

The Ex-Pats Guide to France University of Cincinnati French versus United States Comparison of Cultural Dimensionsiii

When looking at the cultures graphically, we can see that there are definitely some differences between the two cultures. First, we will begin with the Power Distance Index, PDI on the chart. This could be a point of potential conflict between the two cultures if not understood fully. France enjoys a fairly high score on the power distance raking when compared to the United States. This is important because it should indicate to the ex-pat that for lack of better terminology, France enjoys substantially less equality between the classes than in the US. In other words, in the US there is greater equality between the classes, which manifests itself through more cooperation and interaction across levels. This implies that when the ex-pat takes his/her assignment, there is a clearer boundary between roles and levels that needs to be recognized. Next, we will compare the Individualism (IDV) scores. The United States has one of the highest individualism scores worldwide. This indicates a culture that is very independent and self reliant. However, this independence may not translate well in France. Although, it is important to note that France too enjoys a fairly high individualism score. While individualism in France is not as high as that in America, the score is higher than that of their European counterparts. This means, although the American ex-pat would need to be knowledgeable of the differences between the cultures, the individualism score would most likely not cause a problem. Countries that exhibit higher individualism scores are characterized by highly valuing their personal time, emotional independence from the company they work at and there is less emphasis on forming personal relationships in the workplace. This moves us the Masculinity (MAS) index. France has a fairly low masculinity score when compared to the US’ much higher score. There are several issues this could present to the ex-pat. The lower masculinity score for France is indicative of a culture that exhibits the following characteristics: more emphasis being placed on the relationship with their manager, a cooperative and friendly atmosphere and employment security. Contrastingly, in the US earnings, recognition and professional advancement are more important. In line with this, as one might guess, the French are willing to take less pay in exchange for more leisure time. As compared to the US work week, “40% of the French work less than 15 | P a g e

The Ex-Pats Guide to France University of Cincinnati thirty-five hours a week.”iv Whereas, in the US, the motivation tends to be a higher salary even if that means working longer hours. And, although the masculinity index encompasses a variety of traits, the last point of comparison for suggestion is that the French are much less achievement motivation than in the United States. This is important for the ex-pat to know, because it would greatly influence their management style. If achievement is not the primary motivation, then the ex-pat manager will need to devise new strategies for motivating their employees. Additionally, it is important to recognize the importance of developing relationships with employees, although not as important in the US it is significant in France. Using the Gert Hofstede Index we will lastly compare the Uncertainty Avoidance (UAI) index. This is the other cultural dimension that France and the United States are significantly different on. France exhibits high uncertainty avoidance and the United States exhibits lower uncertainty avoidance. Characteristics of high UAI countries such as France include: resistance to change, loyalty to the employer, high fear of failure, and that hierarchal structures should be clearly delineated and respected. On the other hand, culture’s with a lower uncertainty avoidance exhibit: less resistance to change, less loyalty to an employer, the hope for success, and the belief that hierarchal structures can be bypassed for practical reasons. Again, understanding how a culture feels about the uncertainty avoidance dimension is important for the ex-pat. An American taking an assignment in France needs to be patient with their employees if change is to be implemented. Additionally, since the fear of failure is high, the manager needs to promote an atmosphere that does not penalize failure. In fact, a manager may want to set up projects or initiatives with a few easy, early wins to ease the anxiety. Other cultural considerations: Dining: When one begins their assignment in France, they should be aware that it is a culture that centers on food and drink. If one is interested in these things and takes the dining experience seriously, then they are already in a good position to succeed. As Julia Child said, “In France, cooking is a serious art form and national sport.”v One needs to know this because this emphasis on the eating experience manifests itself various ways. For instance, lunches and dinners are long so the diner may soak in the experience, enjoy the time with their families and dinner mates and build relationships. If one wants to succeed in business, it must be quickly realized business will not be conducted over dining events. Here, one is supposed to enjoy the company and savor the food. Meeting etiquette: In terms of meeting etiquette, formality is the norm in France. Handshakes are a common form of greeting. It is better to be formal than informal, if one wants to establish a good reputation. Back to the uncertainty avoidance mentioned previously, it is important one establish trust with those they are doing business with. Once trust is established there is a greater likelihood things will get done. It is suggested that even if you are weak in French speaking skills you still attempt it. By doing so, you 16 | P a g e

The Ex-Pats Guide to France University of Cincinnati demonstrate respect for their culture. Additionally, it is important to be punctual to all business functions. Tardiness is not the norm and will not be well received. If you are going to be late, notice should be given as much in advance as possible. Remembering these facts, will help the ex-pat more quickly assimilate to French culture. Non-Verbal Communication: Every country has its own non verbal communication that needs to be understood to make the most of one’s experience in France. Understanding the etiquette behind eye contact is very important as it is different that in the United States. One does not give another person eye contact unless they know them well. A casual passerby does not illicit eye contact. Interestingly enough, if one makes eye contact with a stranger it is construed as requesting a relationship. So, one needs to be careful and not constantly seek out eye contact as we in the United States. In France, eye contact is a sign of equality therefore only given when one truly means it. Dress also takes on an added importance in France. Business dress is viewed as a direct reflection of both your social status and success. Clothing should be tasteful and stylish. In France, the expatriate is going to have to step up their game. More importantly, they will need to understand that it very much influences the perceptions of the people around them. Consequently, it cannot be ignored. One should dress both formally and conservatively for business situations. Men should usually wear dark suits. Women should dress simply, yet classy. Accessorizing the outfit is a critical component to the whole package. The ex-pat manager is going to have to pay special attention to their dress to ensure the best odds of success on their new assignment. It is also important to recognize that the French are not as territorial as their US counterparts. This feeds into personal space. French culture is typically less personal space oriented, or focused less on a personal space bubble. Because of this, often times people will stand closer to you, not be afraid to touch you and would prefer to stand closer to you to talk than stand apart and shout. Conversations will be more intimate than in the United States. It is important to recognize this so that the ex-pat realizes the closeness of communication is not for another reason. When taking an assignment in a foreign country it is best to know as much as possible before taking the assignment. This means knowing the responsibilities that will come with the job as well as knowing about the culture for which you are entering. One of the best ways to do this is by reading up as much as possible about the country, and learning what the major differences are between your home country and the country you are entering. By doing so, you will be more aware of areas that could present conflict. It is likely you can even avoid conflict, if you know where the differences lie.

17 | P a g e

The Ex-Pats Guide to France University of Cincinnati Strategies for a Successful Expatriate Assignment There are several strategies that can be used to give you the best chance of success on an international assignment. Some strategies are specific to the corporation you work and others are individual. We will discuss them further. Corporate Strategies It is no surprise that corporations that have a developed ex-pat program send ex-pat managers on assignment more adequately prepared than multinational corporations that do not. As a result corporations with some sort of training in place experience greater success rates when sending an expat manager overseas. Often times, corporations with a formal program in place for ex-pat managers have a coaching program in place to prepare them. It is important that both the multinational and the employee recognize the reality of an ex-pat assignment. The reality is that many times the ex-pat manager does not know what to expect with their new job, nor daily living experiences. Even more often, the ex-pat manager does not know the ins and outs of the environment they are entering. They many not have knowledge of the history or organizational culture of the environment they are entering. This results in relentless challenges and difficulties. Because of this it is very important that a company have some sort of coaching/training program in place for those going on international assignments. Many times, the first time an ex-pat manager takes an overseas assignment they have greater difficulty assimilating than those that have previous experience. This being said, if a multinational can get their employee through their first assignment, after that the learning curve should make the next assignment much smoother. Many successful multinationals do this through a coaching program. These programs are designed to minimize the culture shock that many new ex-pat managers face. Ex-pat coaching is geared toward providing supportive and educational coaching that places emphasis on goal attainment and cultural adaptation. In fact, well developed programs, “help managers identify and solve problems quicker, to keep assignees mindful of their work objectives, and to accelerate their productivity.” vi Expatriate coaching is successful because it minimizes the effects of culture shock. This form of coaching is just another form of professional development. The idea behind it is to initiate assessments, goal identification, action planning, obstacle removal, and creating some sort of accountability. With this in place, an ex-pat manager has clear expectations and goals of what they need to achieve, which can help them direct their focus when on assignment. However, the coaching is not just relegated to work related items. A well developed coaching system will also address: cultural values, cross-cultural relationships, international business protocol, management style, leadership style and global team development. Addressing all of these factors through a corporate training program helps the ex-pat to be wellprepared for their assignment. Solid preparation is crucial for success. Additionally, when a multinational has a coaching program in place, it puts the ex-pat’s mind at ease as they know they have someone to go back to if something goes wrong, in other words, they are not being sent away to an island with no communication out. This is crucial for success. 18 | P a g e

The Ex-Pats Guide to France University of Cincinnati Expatriate coaching is important for both the employee and the multinational. It is an expensive endeavor to send an employee overseas as they must be compensated for it; a learning curve takes place, etc. So, it is important for a multinational to put as much time and preparation into getting the employee ready for the assignment. Coaching sets a multinational up for success in many ways. First, it maximizes the return on investment for the ex-pat, as they get up to speed more quickly and the loss of productivity is not as substantial. Additionally, with proper coaching, a manager’s adjustment and performance is accelerated. This is because they are more aware of what to expect as well having established goals to guide them. Also, with goals set prior to engaging in the international assignment, the manager is able to stay true to corporate objectives. With proper preparation in place, a multinational is less likely to face turnovers and resignations that often result from ill-equipped ex-pats placed on assignment. Lastly, coaching prior to taking the assignment is important because it increases profitability and productivity. Coaching greatly enhances the ex-pats assignment experience. It is mutually beneficial to both the multinational and the ex-pat manager.

Individual Strategies for Success Individual strategies for success primarily rest in knowledge of the assignment you are taking and awareness of the culture you are entering. The more knowledge one has of both greatly increases the probability of success. As with most things, preparation is highly correlated to the level of success. Several steps can be taken prior to moving to ease the transition. One great thing to do is to begin to take classes in the local language, in this case French. Knowing how to speak the language can be extremely helpful. Perhaps you may not have a complete knowledge of the language, but if you can at least speak it conversationally, you will be able to get around from place to place. More importantly, in France, most people speak English. So if you at least try to speak a bit of French to show respect and knowledge of the culture, more often than now people will speak English to you if requested. When it comes time to moving, it is better to be aware of the process and well organized when going through the process. First, it is best if you can go overseas to scope out places to live in advance. By doing so, you will be more aware of what you can take and what you cannot. After selecting the place you are going to live you then begin packing. This step involves very well thought out organization. It is important to organize the items by room they should go in. An important tip is to do an inventory of all your goods and their estimated worth, and to write the list in French. This will help the ex-pat get through customs more quickly. It is also important to have all the legal documents necessary for the move to France. These documents include: your Visa, residency permit, passport, marriage license, medical documents, and proof of insurance. It is important to sit down before leaving the country and organizing both the things you need for you move as well as the documentation needed to become a resident in France.

19 | P a g e

The Ex-Pats Guide to France University of Cincinnati Next after arriving, unpacking and beginning to settle in, it is important to be aware of the potential for culture shock to set in. Culture shock is the result of the fact that, “our own behavior is culturally bound and not individually initiated.”vii The point is that culture is learned gradually over time, from infancy. One cannot enter a new culture and expect to quickly assimilate; it is a gradual process learned over time. Once the newness of the experience fades away, it becomes clear to the ex-pat that things are much different from that of the native country. What is interesting about culture shock is that once one progresses through the process the result is a cultural awareness many will not have. If aware of the process of culture shock, one will be able more quickly move through the phases. Culture shock lasts from six months to one year and typically includes some variety of the following phases: •

The Honeymoon Phase –This is the beginning of your stay in another country. This is when everything is new and novel, things are exciting because of their newness. At this point you are excited and really enjoy the things that make the country unique. In the case of France, it might be the food, the street side florists, and the architecture of the buildings. Essentially there is a romanticness about everything that makes the new situation unique.

•

The Negotiation Phase –This occurs slightly longer in the adaptation phase; typically a few days to a month or two in. At this point you start to really notice the difference between your native culture and the culture you are now a part of. You resolve these differences. However, it is at this point you begin to wish for things to be like they were in your native country. For example, in regards to France, one may wish dinners were shorter, more abbreviated than the traditional drawn out long French dinner.

•

The Everything is Okay Phase –This occurs after the negotiation phase when the ex-pat is able to successfully develop a routine. It is at this point the ex-pat is able to travel freely around, feel comfortable where they are. It is at this point the person becomes so assimilated into the culture, they no longer look at the culture as different. As alluded to before, it is at this point a person is able to develop a cultural awareness.

•

Reverse Culture Shock –It would be neglectful to forget to mention this. This phase is what occurs when your ex-pat assignment is over and you return to your native country. After being away, one actually has to re-assimilate into one’s native culture.

In an effort to combat culture shock when entering a new country, strategies need to be developed for a successful assignment. The first strategy is to be aware of common experiences faced by ex-pats. That is the importance of knowing the phases of culture shock. Here are some more strategies for successful ex-pat assignments:

20 | P a g e

The Ex-Pats Guide to France University of Cincinnati •

Learn everything you can about the area you are located. It is by gathering this information that your new location will seem less threatening. Some simple ways to do this include signing up for a local class, perhaps a yoga class or a painting class, even getting out and travelling as much as you can locally. As your awareness about your new area increases, the less anxiety and apprehension you will experience.

•

Continue to think positively. As you learn more about the culture and become immersed in it, there will be temptation to find its negatives. Although both easy and tempting, doing so serves no purpose, as it will only make a stressful situation worse. It is important to be open to new experiences and regard them favorably, especially early in you stay. As a piggy back to this, it is essential to keep your sense of humor. One shouldn’t be afraid to enjoy things and laugh when something is funny. It is easy to get very uptight in what is a very stressful situation. However, keeping a sense of humor will help to keep things in perspective.

•

It is always good to find a friend in your new home country. A new friend can help you to learn about the new culture you are in more quickly. Additionally, you will learn more about the culture more quickly as well as learning about things to do and see.

It is important to know as much as one can about another culture when taking an international assignment. When noticing the differences between cultures, it is important to frame them in the right context. This means mot judging them as right or wrong, but instead seeing them as different. This will enable you to remain open and flexible to your new culture and allow you to make the most of your experience. Also, it is important to be aware of the effect the new environment will have on your family. They too need to be considered. Essentially, what a successful assignment boils down to is being both patient and flexible. One must be patient; it will take time to really feel comfortable in a new country. While this is happening, one cannot grow frustrated with themselves. Instead, they need to look at it as a growth experience. Secondly, taking an international assignment invites a tremendous amount of change into your life. Because of this, one needs to be flexible. Things are likely to be dramatically different between your native culture and your new environment. It is important to be flexible and willing to be open to the new experience. By doing so, one is inviting success.

i

‘International assignments on the rise’ http://www.managementissues.com/display_page.asp?section=research&id=3254 ii Measuring the Value of Expatriates Assignments http://www.som.cranfield.ac.uk/som/research/centres/cbp/Creme.htm?source=Moveandstay.com iii http://www.geert-hofstede.com/hofstede_united_states.shtml iv http://www.frenchentree.com/france-employment-work-jobs/DisplayArticle.asp?ID=34089

21 | P a g e

The Ex-Pats Guide to France University of Cincinnati v

http://chatna.com/theme/france.htm http://www.coacha.com/en/casestudies_v01.html vii http://www.americansintoulouse.com/content/view/13/47/ vi

22 | P a g e