The Significance of Expatriate Recall:
Expatriate recall is a significant issue that global companies need to contend with on an ongoing basis. In addition to the loss of time and productivity associated with expatriate recall, the financial ramifications associated with relocation can be substantial for firms forced to recall. Another key factor that needs to be taken into account is the impact that relocation and recall has on the families of the executives being recalled. Often children are being educated in the country where their expatriate parent is working. As a result, greater complexities present themselves.
According to research facilitated on expatriate recall rates of US, European, and Japanese firms, it appears that US companies experience a significantly higher recall rate than that experienced by both European and Japanese firms. On average, it appears that nearly 70% of US firms experience recall rates between 10-20%, as opposed to European companies where nearly 60% of firms experience rates that are less than 5% and Japanese firms where over 75% of firms experience rates less than 5%. This issue can be attributed to any number of factors; however, the close proximity of European/Japanese countries to their neighbors creates an environment where cultural diversity is more commonplace making it easier for staff to overcome multi-cultural challenges. Additionally, with travel between European and APAC countries so readily available and easy to facilitate, companies based in Europe and Japan are more likely to execute globalization strategies.
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