What do they expect, and what do we need to offer? A classification of repatriation strategies from the MNC perspective

Abstract

Despite considerable research on the topic today, repatriation remains a struggle for MNCs. Difficulties thereby frequently revolve around the matter of repatriate careers. Upon return from international assignments, employees tend to expect a promotion as reward for their efforts overseas. Performance decreases and turnovers are otherwise likely. For the firm, this entails the risk of a withdrawal of the potentially valuable human capital repatriates gained abroad. Yet, providing every returnee with a more attractive position in consequence of an international assignment is no solution to the problem, as this would require extensive corporate resources. Differences between assignments must thus be taken into account to be able to decide for which employees the experience should serve as career steppingstone, and how to handle the return of those for which it should not. This study draws on the resource-based view and psychological contract theory to develop a set of repatriation strategies that integrates organizational and individual interests to provide MNCs with diverse approaches to managing returnees. We then derive organizational prerequisites for the successful implementation of those strategies. We thereby offer a concrete approach to solving the MNCs’ career-related struggle upon repatriation.