Immigration and employment of foreign personnel

The workforce shortage in European countries has strongly intensified in recent years due to several demographic, political and economic shifts, emerging as a significant problematic for employers and the European economy as a whole. According to the European Labor Commission in their “Report on labour shortages and surpluses” for 2023, nearly 63% of small and medium-sized enterprises in EU countries struggle to find qualified candidates for a wide range of roles, with at least 42 different occupations facing significant staffing shortages (European Commission, 2024). Currently, this situation stands as one of the most pressing challenges in international labor markets. In response, governments have undertaken various initiatives. However, one of the most enduring strategies to mitigate labor shortages has been the recruitment of skilled professionals from abroad (Astrov et al., 2021). This approach has been reinforced by adjustments made to immigration policies over the past decades and the implementation of new immigration incentives aimed to attract qualified personnel. While labor shortages are one of the most influential factors in international talent mobility, they are not the only determinant. Several studies have demonstrated that the presence of highly skilled immigrants in companies is positively correlated with an increased transfer of knowledge, high levels of innovation, diversity, business expansion, productivity growth, increased trade and activities in international markets (Nathan, 2014), as well as other benefits associated with intercultural competencies, business development, overall growth, expanded opportunities, global networking and prosperity (Solimano, 2006).

Expatriate employee´s experience

Expatriates (in abbreviated form: expats) can be defined as individuals who live and work abroad, either permanently or temporarily. (Van der Knaap, 2017). There are two primary types of expatriation. The first is self-initiated expatriation (SIE), where individuals independently decide to relocate for work purposes to a foreign country. The second type of expatriation refers to company-assigned expatriation (CAE), which occurs when a company relocates an employee to a foreign country for a specific assignment (Li et al., 2023, p.19). Expatriates bring unique perspectives shaped by their own specific background and have different conditions and needs than the local workforce (Harrison et al., 2004). The ability to understand and adapt to the new cultural environment is critical for expatriates to integrate into their new work context. Without cultural adaptation, integration into the workplace is likely to be difficult (Hajro et al., 2018).

The adjustment process experienced by expatriates abroad is a prominent topic in expatriate management literature. Among the theories developed in this field, Black, Mendenhall, and Oddou introduced in 1991 the expatriate adjustment model, which outlines the factors that can either facilitate or hinder an expatriate’s ability to adapt to a new cultural environment. The model is divided into two phases: anticipatory adjustment and in-country adjustment (Ellis et al., 2020). Additionally, Black et al. identified three key dimensions that influence an individual’s adjustment to a new cultural setting: work adjustment, which pertains to how well the individual adapts to the demands of their new role; interaction adjustment, which involves establishing social connections and effectively engaging with local individuals both within and outside the workplace; and general adjustment, which encompasses the broader adaptation to the foreign culture and living conditions (Shaffer et al., 1999). The model highlights the importance of addressing challenges in all three dimensions to promote effective adaptation in expatriates.

Employment lifecycle

Understanding the employment lifecycle is crucial for improving expatriate integration at the workplace since it provides a structured framework for companies to provide targeted support and address the unique needs and challenges expatriates face at each stage of their assignment. The employment lifecycle consists mainly of 6 stages: The first stage of the employment lifecycle involves attracting talent by distinguishing the company from competitors through a strong employer brand (Xiang et al., 2023). The next stage of the employment lifecycle is recruitment. In this step, the organization engages in various practices and activities aimed at searching, selecting and hiring the most suitable candidate for the available position (Connerley, 2014). The third stage is onboarding, which refers to the adaptation and integration of the newly hired employee into the new job position and the new company, providing them with the necessary tools and trainings (Bell, 2021). Subsequently, the fourth stage of the employment lifecycle concentrates on employee development, where companies must focus on creating a supportive work environment and continuously enhancing the skills, competencies, and knowledge of their employees (Xiang et al., 2023). The next stage is employee retention, where the company must implement practices to retain employees and reduce turnover. It focuses on keeping employees satisfied with their work and the company (Das and Baruah, 2013). Eventually, employment relationships will come to an end, which implies the final stage of the employment lifecycle, this phase focuses on the employee’s departure from the organization (Gruber, 2023).

Expatriate Integration at the workplace: A descriptive case study on challenges and strategies

A descriptive case study was conducted to comprehensively examine the challenges expatriates face throughout the employment lifecycle and identify effective support strategies. The qualitative study involved two participant groups: expatriates and employers. To explore the employees’ perspectives on the challenges and strategies for expatriate integration in the workplace, an online focus group was conducted. The session included 18 questions, designed to explore various aspects of expatriate integration throughout the entire employment journey. The sample comprised 10 individuals residing in four European Union countries (Spain, Germany, Sweden, and Portugal), employed by private companies across diverse industries, including tourism, technology, biotechnology, marketing, construction, and textiles. To gather the employers’ perspective, semi-structured in-depth interviews were conducted with each of the company representatives recruited for the study. The interview included 19 questions addressing expatriate integration, guided by the employment lifecycle framework. The sample for this second group included 3 human resources professionals involved in expatriate management tasks. Employed by medium-sized and large global companies, operating in the healthcare, finance, and technology sectors across several European Union countries.

Challenges throughout the employment lifecycle

The results show that expatriate employees encounter numerous challenges throughout their employment journey that could hinder their integration into the workplace. Administrative hurdles, such as navigating complex and time-consuming bureaucratic processes to obtain necessary documents like visas and work permits, often disrupt a smooth transition. From the company’s perspective, such administrative hurdles were also identified as a prominent challenge, particularly when navigating the legal framework of work permits and expatriate employment without solid legal knowledge. These issues highlight significant time and financial resources that companies must invest to assure compliance in this regard.

A lack of proper support systems exacerbates these difficulties. Insufficient orientation programs and minimal employer involvement can make adjusting to the new environment difficult, contributing to feelings of isolation and confusion. Furthermore, adjustment difficulties, including communication barriers stemming from language differences and cultural nuances, can also pose significant obstacles. Challenges in establishing social networks and adapting to local work practices and cultural norms can impact overall well-being and job satisfaction. Concerns regarding unequal opportunities, such as limited access to career advancement when compared to local workforce and potential biases, further complicate the employee integration experience.

The results also highlight the difficulties companies face in retaining expatriate talent. These challenges often stem from a lack of understanding of the unique and evolving needs of expatriates, making it difficult to provide ongoing support that addresses their specific circumstances. Without a clear understanding of these needs, companies may struggle to implement effective feedback mechanisms or assess the areas in which expatriates require further assistance.

Successful strategies and best practices for company implementation

The results also underline the need for comprehensive support strategies, addressing the specific needs and conditions of expatriates, from the initial stages of talent attraction to their ongoing integration. This requires well-crafted company policies and structured programs designed to ensure the effective adaptation and success of expatriate employees. The following practical guidelines were developed as an integral part of the study’s findings to assist companies in effectively addressing the challenges identified. They are presented in alignment with the stages of the employment lifecycle for a structured approach:

Attraction: The organization can attract expatriate candidates by developing benefit packages that include relocation allowances, language courses, housing assistance, and flexible work options like home office days or remote work from their home country. Promoting diversity, social equity, and inclusion through recruitment platforms, social media, and employer branding materials, with testimonials and success stories from current expatriates, further strengthens its appeal.

Recruitment: To attract international talent, organizations should advertise job postings on global platforms, rather than just regional websites. They should use compelling headlines and clear language to highlight the company’s culture, benefits, and opportunities for expatriates. Partnering with international universities also helps the company to connect to a pool of qualified expatriates and students, while employee referral programs and budget allocation for partnerships with international recruitment agencies can also enhance the hiring process. Offering trial days or job previews allows candidates to experience the company environment firsthand, gaining a better understanding of the day-to-day environment of the company, and clarifying job-related expectations. Transparency in recruitment, with open feedback and inclusive hiring practices, further strengthens the process.

Onboarding: Organizations should offer pre-employment orientation sessions to introduce company culture, discussing initial expectations, and presenting the course of the upcoming onboarding plan, as well as essential information on housing, visas, and local services. Cross-cultural training enhances collaboration by addressing cultural differences and communication styles. A well-structured onboarding program with clear goals, progressive check-ins, and detailed job information ensures a smoother transition. Mentoring or buddy programs pairing expatriates with experienced employees provides guidance and cultural insights. Allocating budget for collaborating with specialized service providers that handle relocation matters, visa applications, work permit renewals, and further documentation helps to address administrative and legal complexities. Centralized company platforms should provide clear instructions and checklists as orientation. Additionally, welcome events foster social connections and a sense of belonging among employees.

Development: Organizations should create feedback channels for expatriates, such as one-on-one meetings, HR check-ups, and surveys to understand their needs. Performance reviews should establish specific career development goals and structured career paths for expatriates, supported by individualized training plans. Tracking promotion rates and career progress compared to local employees ensures fairness, any disparities should be addressed through policy adjustments. Therefore, promotion criteria should focus on skills, experience, and performance. Transparent communication of career opportunities and language courses in collaboration with educational institutions further aid expatriates’ integration and growth.

Employee retention: Companies should train employees and leaders on unconscious bias and the value of diversity while establishing a diversity and inclusion committee to represent expatriate perspectives. Flexible working arrangements tailored to expatriates’ needs, such as remote or distance working, should be promoted and formalized in policies. Collaborations with occupational health institutions provide access to mental health programs, complemented by initiatives like stress management workshops and mental health first aid trainings. Social events and interest-based groups, such as sports teams or language exchanges, strengthen community bonds. If possible, adopting English as the primary language for meetings and communications can enhance inclusivity for international staff.

Separation: To support the employees’ departure, companies should provide clear information about the offboarding process, including relevant matters for expatriates to consider, like notifying immigration authorities. The company should also provide reference letters in a timely matter, including English versions for international use. Conducting exit interviews to gather constructive feedback helps the company to identify areas of improvement. Maintaining positive relationships with former employees also enhances the employer brand and establishes alumni networks for networking, referrals, and potential rehires. For expatriates returning home, offer relocation assistance or career transition counseling to ease repatriation challenges.

Conclusion

In summary, expatriates face unique obstacles and challenges, shaped by various personal, social, professional, and contextual factors. Companies should support expatriates in integrating into the workplace during their entire employment journey as this improves their productivity, job satisfaction and probability of success, it also fosters a diverse and inclusive work environment that enriches their experience and strengthens the organization as a whole.

The text is based on the master’s thesis “Best practices for the integration of expats at the workplace” by María Fernanda Both from 2024.

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Author: María Fernanda Both holds a Bachelor’s in Psychology from Universidad El Bosque in Colombia and a Master of Arts in Human Resource Management from IU Internationale Hochschule. With an international background, her expertise encompasses people management, expatriate integration, employee well-being, psychosocial counseling and mental health.