Prepare for culture shock working abroad

By MARK STORY

You wouldn't have been offered that attractive overseas assignment if you weren't truly on top of your profession. But June Ranson, managing director with international HR specialist Woburn International, says it's naive to assume the skills that helped you make a name for yourself locally will guarantee your success abroad.

It's also naive, she adds, to assume executives won't experience culture shock just because they're being sent to an English-speaking country. She cites US-based research revealing that 68 per cent of failed overseas assignments are because of a lack of preparation on a human level. This is especially relevant in developing countries, says Ranson, where personal relationships take precedence over formal dealings.

It's not the ability to do the job that usually needs re-engineering, but old-fashioned people skills. What's often overlooked is that personal skills assume greater prominence when executives meet a new culture.

So how can an organisation tell if an executive is "expat-able"? An executive's tolerance to change is a pretty good guide, according to Woburn International's relocation director, Susie Hunt. Around 90 per cent of New Zealand executives have the necessary adaptability to survive working aboard. But she suspects that because of an unwillingness to maximise opportunities, only a third return better people than when they went away.

Ranson claims overseas assignments can start turning sour when subtle cultural differences are misunderstood, or worse, simply ignored. Based on her 14 years of experience helping execs relocate to and from New Zealand, overseas assignments are destined to failure unless executives are prepared to understand and respect the key attributes of the culture they'll be working in.

"Executives often don't realise that the overseas assignment they think is right for them - isn't necessarily right for the location they're being let loose on," says Ranson.

There's more to it than just cultural differences. She says an executive's own "mental baggage" also plays a huge part in how they'll interact within that new culture. Knowing that a failed assignment will cost them dearly - around seven times their annual salary according to Ranson - companies are spending more time minimising culture shock that 99 per cent of executives experience in varying degrees. What preparation should minimise is the anxiety often associated with losing familiar signs and symbols of "social intercourse" while living overseas.

Ranson warns that learning about the culture is different from embracing it. Some executives lack flexibility and open-mindedness, while others are simply too arrogant for the culture they're entering.

"Execs who just try to wing it overseas often underestimate how much patience, tolerance and good listening skills are required, especially within Asian markets."

She says executives who shut themselves away, refusing to mix, and distrusting the locals, have to remind themselves that not even life at home was trouble-free.

"Once they have new people in their lives it becomes much easier. They have to become extroverts and accept every invitation that comes their way," says Ranson. "But they shouldn't get so engrossed in this new culture that they lose contact with people back in New Zealand."

Whether execs are leaving for expat-type assignments of up to five years, stints of up to a year, or on a week-long business trip, the trick is to acquire vital knowledge before leaving.

"You can't assume people will be able or even want to speak with you in English. Learning their language exhibits that you're actually making an effort to fit in."

Ranson says it's critical that executives stop, listen and suspend judgment until they have a grasp on a situation. What's also essential in many Asia countries, especially Japan, is to ensure that "yes" really does mean yes. In Asia they don't like to say "no" and executives need to know phrases locals use to get around using the word.

What's an acceptable and desired behavioural pattern in one country could be the height of rudeness and totally unacceptable in another, says Ranson. Simply referring to someone in Korea, Japan or even the Pacific Islands on a first-name basis can convey a lack of respect, she says.

Beyond the cultural aspects, there's a raft of other considerations associated with overseas assignments. Former expat Jack Stephens, who worked in Dubai, says execs must consider relocation costs, taxation, and whether working offshore stacks up both financially and in the career-stakes.

He believes executives must evaluate an overseas assignment in the same way they would any local promotion by asking: Will I learn new marketable skills, will I be recognised for my accomplishments, will it lead to faster promotions and where will I fit in on return to New Zealand?

Interestingly enough, because of a vast improvement in living conditions over the past 20 years there's a growing interest in assignments at locations once considered hardship destinations. Stephens says that is part of a growing realisation that living in some of the world's leading cities, such as New York, London, and Los Angeles, isn't all beer and skittles.

But with a lot more competition for jobs in what were once considered less desirable locations, the incentives for attracting people there aren't what they used to be.

"As a result, the idea of being an expat for life - stocking away buckets of savings - is becoming the exception to the rule," says Stephens, who is now group manager (international networks) with New Zealand Trade and Enterprise.

As loved ones are often the key element in whether a stint abroad is successful, Stephens recommends spending lots of time examining family issues. As well as concerns over where to educate the kids, a spouse's employability is a much bigger issue now than it was 20 years ago. What can knock the gloss off a plumb offshore posting, says Stephens, is a remuneration package that doesn't compensate for loss of double income. Equally dangerous, he adds, is having a bored spouse and a potential marriage break-up.

Overseas assignments can be considerably harder for a "trailing spouse", says Susie Hunt. "Unlike the working spouse - who has instant replacement of work stimulation - the non-working partner has to rebuild their life from scratch," says Hunt, a one-time "non-working" mum in Japan.

So how should execs negotiate the terms of their overseas assignments? June Ranson says it's important to identify who's paying for what at every point. That means establishing a cost of living differential - including school fees, accommodation costs, utilities, home leave - to ensure salary remains on par with the home market.

She says it's also important not to overlook hidden costs such as connection fees, new appliances, the cost of getting back to New Zealand and the terms of severance should that happen while the executive is overseas.

One of the biggest drawbacks to overseas assignments, says Stewart Speed, director with Relocations International, is having their experience valued once executives return to New Zealand. Speed says companies that undervalue formal briefing sessions - before setting execs loose offshore - are more likely to struggle to find the right slot for them when they return.

There's no truth in the idea that execs can effortlessly transpose themselves into overseas markets, says Speed. . In fact he sees enormous culture shocks for New Zealand execs, even those moving to Australia.

"Preparation is the key," he says. "If people are unable to settle, overseas assignments will fail. The financial package might appear attractive. But if you're leaving with a bottle of beer in your hand and no real assistance from your employer - before or after arriving - you might want to reconsider."

Is working abroad for you?

* Would a move abroad affect your long-term career aspirations?

* An offer to work abroad may be flattering, but is it the right time for you?

* Can you handle being away from family and friends?

* If you own a house, will you sell it or rent it?

* English may not be the first language of the country you are moving to.

* Will your salary be paid into an account in New Zealand or will you have to open an account in your country of temporary residence?

* Things such as diet, climate, housing, media, and customs will be different.

* If you are a woman planning to work overseas, find out everything you can about the culture, customs and role of women in the country in which you will be working. Knowing what to expect will help you prepare.

* Many people who work overseas experience culture shock. Most people experience a period of cultural adjustment. Symptoms include:

* A feeling of anger, frustration and irritability, and loss of sense of humour.

* Withdrawal, spending excessive amounts of time alone, or spending time with other foreigners and avoiding contact with local citizens.

* Negative feelings about the people and culture of the host country.

* Compulsive eating and drinking, and a need for excessive amounts of sleep.

* Boredom, tiredness and an inability to concentrate or work effectively.