Challenges Faced by Expatriates in Global HRM: A Case Study of Tesco

This report analyzes the challenges faced by expatriates in global HRM, using Tesco as a case study. It discusses issues such as fitting in, finances, healthcare, and safety, and provides solutions and recommendations to address these challenges. The report also highlights the risks and contingencies associated with the proposed solutions.

global Human Resource
management

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Specific issues that are to be investigated..........................................................................................3
Solution and recommendation...........................................................................................................5
Risk and contingencies associated with key solutions.......................................................................7
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
The concept of global HRM is very wide and covers a range of aspects that are to be dealt with in
a comprehensive manner involving the use of proper strategies and concepts (Pellegrini, Casalino and
Krause, 2016). In the current report, the issues that are faced by the expatriates who are currently
living abroad in order to fulfil the job duties that have been assigned to them will be analysed and
evaluated. Tesco is a multinational company that is operating in several countries at a global level and
therefore, sends employees to work in other countries on its variety of projects throughout the year.
The report will critically identify the issues that the expatriates of Tesco Company are facing by
evaluating different aspects. Further the report will present a set of solutions that can be adopted in
order to solve the issues that have been highlighted and then lastly, the different risks or contingencies
that are related to the solutions that have been developed will be hihglighted and presented
conclusively.
MAIN BODY
Specific issues that are to be investigated
The challenges that an expatriate faces while moving abroad for work related in abroad are
immense along with the vast opportunities that it brings along with it (Diop and et.al., 2018). Leaving
the home country to work in an entirely different country with different culture and language is a very
problematic aspect for the expats who have to move abroad. Tesco has been regularly sending their
employees as expatriates in the other countries so that work duties can be performed and following
are the key issues that have been highlighted:
 Fitting In: The expats of Tesco who have now returned back to the home country often
complain that the major difficulty that they face while moving to a new country is that they
are unable to fit in with the changed culture, the changed languages, social behaviours etc.
(Ali and Yusof, 2018). The expats who are extremely social and outgoing at home often tend
to face the greatest of problems as they are not able to communicate what they want properly
and additionally, there is fear of cultural barriers where the expats might not be accepted due
to the existing cultural differences. Therefore, this is a major challenge that they face.
 Finances and money management: Already majority of the employees find the management
of their taxes and finances complicated even in the home countries but when they have to
shift in another country, the process gets more intimidating and extremely complex (Haak‐
Saheem and Brewster, 2017). It is very difficult to obtain the correct suggestions and
guidelines related to tax management and investments options tat are available in the foreign
country thus making the entire process ambiguous. Bu the expatriate employees of tussock

have also agreed that taking help of a professional helps immensely in addressing these
challenges that have arisen.
 Healthcare: Managing the health related issues and problems that can arise at any time are
another major challenge as he expatriate employees of Tesco have agreed (Sarwar and
Zeeshan, 2019). They have stated that there are major health concerns that can arise and in
such cases if a health insurance does not exists with an expatriate than the expenses that can
be charged from them in the form of health related expenses are too much. Therefore, this is
another major problem that can arise for the expatriates who are going to work abroad and the
issue should be addressed in priority before the actual
 Safety: The safety is another major challenge that the expats tend to face when they are
working in another country as they do not have complete knowledge regarding the different
safety measures that they should adopted for personal as well social protection. There is an
increased risk of their threats as well such as terrorists attacks, bombing etc. and all these
when it happens in a foreign country is more displeasing and troublesome as compared to its
happening in the home country where everyone knows each other (Pellegrini, Casalino and
Krause, 2016).
Therefore, this was also one of the major issues that were faced by the expats who had returned
back to their home country and were working in Tesco UK.
Based on the issues and problems that were identified above which the expatriates are more likely
to face, there are certain theories that can be interlinked so that the importance of such issues that are
being faced gets recognised.
The Three Facets in the Cultural Adjustment Process as described by the Zimmerman and
Sparrow (2017), clearly states that there are basically three aspects that the expats have to experience
while adjusting to the culture of new country. These are psychological adjustment, interaction
adjustment and lastly work adjustment. All the three aspects are interlinked with the issues that expats
face i.e. psychological adjustment indicates the cultural barrier and the barrier of fitting in where the
expats are not able to adjust to the new cultural norms, practices and traditions that are being followed
in new country. Interaction adjustment relates to the communication barrier and socialising barrier
where the lack of easy communication skills isolates them from other people. Work adjustment
problems arise when issues such as cultural biasness, lack of proper work place ethics etc. arise in an
organisation and the expat is not able to function properly (Zimmermann and Sparrow, 2017). This
was just one theory and there are many others like it such as identity perspective and cultural
perspective. These theories collectively highlight that is extremely important to address the issues that
the expatriates are most likely to face as the perform and the ultimate objective with which the expats
were sent to the foreign country can get affected due to this which should be avoided at all costs. If
these are not addressed then the financial and economic losses in which this can result are very high.

Therefore, it is necessary to address the issues identified and company i.e. Tesco should develop
correct solutions for themselves in order to solve the problem of expatriates
Solution and recommendation
Tesco Company follows the practice to sent employees at different international locations so
that more effective operations can be entertained of company. In case of employee expatriate at other
location various issues employee face. Following points can be summarises as the expected solutions
of such problems that earlier in this file have registered.
Solutions against fit in issues
This is among the key issue employee face when they moved in a different country. As every
geographical location has its own culture, diversity, tradition, social values and ethics and life style.
Employees face problems to get adjust in the new environment. In order to deal with this issue Tesco
Company can take the following steps.
Diversified work force: This is an effective solution against the fit in issue in different locations.
Tesco Company can make the organisation diversified with the support of its employees. Company
can recruit the employees at different geographical locations and also to recruit them in other
international offices not belong to the native place of employees. This will improve diversification in
work place (Ahrens, Oehmichen and Wolff, 2018). Diversified work place comprises with employees
belongs to different cultures and traditions and also comes from different geographical background
which also allows them to share cultural values with their employees in company. The fit in issue
immerge as the employees not able to deal with the new cultural values and environment instantly.
Due to different human natures some employees feel uncomfortable to adjust in such situation. Well
diversified organisation will ensure the cultural diversities in every location of Tesco. This will also
drive employees to understand different cultural values of all religions and geographical locations. As
the employees will already aware about all different cultures and social elements about different
locations they will feel more comfortable in the new location in case of expatriate.
Promotion of cultural differences at work place: Tesco Company can promote cultural differences
at work place. This is also a key solutions that can be channelizes to deal with the culture diversity
issues in case of employees who expatriate (Kostal, Wiernik and Ones, 2017). Employee face fit in
issue as they see different cultures, traditions and values in society which they are not aware about.
This approach of management in Tesco Company will allow employees toward about the new
traditions. Promotion will motivate employees to get the knowledge about different cultures and
tradition which also supported company in improving its growth potentials. This will make employees
more efficient and diversified.

Accommodating strategy: Tesco Company can follow the accommodating strategy in order to deal
with employee fit in issue. This strategy drives company to give the personal space to employees in
respect to following the religious values in the normal working hours. For example if an employee’s
requires to do prayer in numerous times in a day on the basis of the cultural and traditional values
company should allow them in this strategy. This will make work place more employee oriented (van
der Laken and et.al., 2019). This will also put a positive impact over employees belongs to different
cultures and countries to learn new aspect of cultures.
Financial consultancy to employees
Tesco Company can give financial assistance to its work force. This strategy will play a huge
role for dealing with finance and money management issue in case of expatriate employees. In this
strategy company can appoint financial experts in its Human Resource Department who can give
financial suggestions over different financial issues such as taxation issues, investment issues and
other related financial problems. This strategy can be implemented in all offices of Tesco Company
all across the globe. In case of expatriate employees face issue in understanding the new tax regime of
the new country and also the potential investment options available in such new location. Financial
assistance can give the proper advices to employees to deal with this issue (Kokt and Dreyer, 2018).
Company can also suggest different mobile apps to understand the financial requirements of all
employees. The app will brief employees about all financial requirements they are engaged with. This
solution will help the employees who are migrated at other geographical location but also to existing
employees associated with such offices. This strategy will also support the employee well being in
company. All employees will be able to get the clear opinions over the financial management issues.
The concept of financial management is a risky as any investment offers some amount of risk. For
employees who migrated at some other location it is also become difficult to believe over other
employees especially in case of financial assistance. Other employees also feel quite shy for giving
financial advices as it involves risk of losing financial resources. This strategy will also deal with such
problem. The financial assistance will give all advices in the professional capacity.
Solutions for health care and safety issues
In case of expatriate of employees health and safety also becomes huge issues for employees.
As the employees do not aware about the health care and safety perspectives at the new location. In
order to deal with this issue company can entertain employee insurance policy which will cure all
health care expenditure in case of international migration. This is a key solution in case of health care
issues for employees expatriate (Leonard, 2016). In order to ensure the safety Tesco Company follows
the practice of allocating quarters to employees to stay at the safe locations. This is also an effective
solutions ageist the safety issue of employees. Safety is among the primary query employee face in
case of migrating at the new location especially in case of international migration. By allocating

quarters at new location company can ensure the security of employees. This will also drive the
employee motivation towards migrating at any international location.
Tesco Company also allows family members of employees to go along with the employees.
This is also an effective practice Tesco Company follow in case of migration at any international
location company allows te close family members of employees to go along with the employees at
new location. In case of expatriation of employees at international location employees feel loneliness
and related issues which opposes employees to migrate. This will drive employees to deal with safety
and other related issues in case of international migration. Company can also instruct employees about
all essentials at the location which will help employees to deal with the health and safety issues.
The potential solutions against the health problem is to not to expatriate such employees who
are facing major health issues or any major disease. Company do not migrate such employees dealing
with major health care issues (Fan and Harzing, 2017). This is also a key policy that support the
health care of employees. Only such employees who are feet enough will get a chance to expatriate at
any international location of business. Company can follow the practice of health check up on a
regular basis to deal with this issue.
The above mentioned solutions are among the key solutions against the all major issues
employee face in case of expatriate. Along with the above mentioned solutions company can also
implement some other solutions like language training to employee, leaves, adjusting office hours and
along with special training to get adjust with the local landscape. These are also the solutions that can
implement along with the above mentioned solutions to deal with different issues associated with the
expatriate of employees. These solutions will drive employees to get adjust in the new location. In
case of international migration employees face issues especially in respect to getting adjust in the
initial stage of the migration and all such solutions will motivate employees in facing all the major
problems in the initial time of the migration. Tesco Company also follows the practice of giving an
effective pay hike in case of international migration which also motivate employees to initiate in the
expatriate.
Risk and contingencies associated with key solutions
As the expatriate also associated with multiple risks. The above mentioned solutions are
considered as the key solutions that are associated with dealing with all the major problems
employees face in case of expatriate. The risk associated with such solutions can be specifies in the
following points.
Risk of off shoring: This is a risk associated with the diversification at work place in Tesco
Company. As the expatriate of employees involves financial investment of company which initiate the
risk related to off shoring at work place.

Risk of racism: This is also a key risk associated with the diversification at work place. As the local
employees might behave inappropriate with the expatriated employees at work place. This is an
effective risk attached to the associated solution (Rui, Zhang and Shipman, 2017). Employees also
might feel less confident in interacting with such other migrated employees which also reduces the
work efficiencies of employees.
Risk of financial loss: This is also a key risk associated with the financial assistance. It is specified in
many researches that all consultancy related to investment are comprises with the risk factors. In case
of finance risk involves loosing the entire investment involved. In case of financial consultancy to
employees related to investment employee might loos their financial resource. In this strategy
employee can suffer huge losses based on the recommendation of financial consultant appointed by
company. These also further causes to employee loosing trust in organisation. Due to financial loss
expatriate also may create extra burden over the employee’s financial stability. Financial loss risk is
among the most significant risk associated with implementing the strategy of appointing financial
consultant at the organisation.
Risk and contingency related to health and safety
Health and safety has been one of the major issue employee faces in case of migration at any
international location. As the expatriate serves growth opportunity along with the risk of health and
safety. Employees need to take this risk to improve the growth potential and employment proficiency.
The health and safety solution such as insurance policy over employee health will assure health care
treatment of employees involved in expatriate but it won’t be able to protect employees from getting
into an health disease (Cheong and et.al., 2019). This involves the risk of employee’s life and the
related family members. Allocation of apartment to employees also can ensure only stay amenity to
employees but it also comprises with risk of any criminal activity. All countries are suffering from
criminal offenses and which is also involved in case of expatriate of employees of company.
Tesco Company follow the practice of delivering training related to language and other
associated training that can improve the convenience of employees in case of international migration.
As the human being takes time to learn new language and to achieve proficiency in getting expertise
in new skill. This also comprises the risk of employees not getting keen with the language and
different social aspects at new location (Yen and Yen, 2016). Expatriate of employees serves effective
growth and development opportunities for employees nut it also associates different risk factors such
as issues like mental health, physical health due to climate change and other issues. Many employees
face loneliness, mental illness and other diseases which can be stated as the life threatening diseases
that can cause the risk related to life of employees. New locations also serve plenty of contingency
which also becomes part of the expatriate of employees. The above mentioned risk is among the key

risk associated with the migration of employees. Along with the above risk plenty of uncertain risk
also associates with the employees in case of expatriate of employees.
CONCLUSION
This report has provided precise information in respect expatriate of employees. In case of
migration of employees at international locations different risk factors also becomes part of the new
opportunity along with the growth potential of employees. Risk like health and safety of employees,
social risk, financial risk and other related risk becomes part of employees. This report has also
projected different solutions which involve providing health care benefits to employees, providing
training and other relatable solutions. Different risk also becomes part of the migration which involves
risk of employee life, risk related to any criminal activity at new location. Other risk like mental or
any physical disease to employees also becomes part of the expatriate.

REFERENCES
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