Challenges Faced by HR Manager in Relocating a Manager from Australia to France

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International Human Resource Management

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While expanding their operations in international markets, there are various
challenges faced by human resource department of a company which is necessary to be
addressed in order to ensure that the company is able to sustain its growth in the market.
Implementation of effective international human resource management (IHRM) policies
enables companies to address their HR issues while managing an international team
(Brewster, Vernon, Sparrow & Houldsworth, 2016). The objective of this essay is to evaluate
the key challenges faced by the HR manager in Sydney while relocating a manager from
Australia to manage a branch in Paris, France. This essay will evaluate key challenges
relating to HRM and employment relations issues that impact the working life of a manager
in France in 2019. This essay will evaluate key cultural differences which an HR manager has
to take into consideration while relocation a manager in France such as living standards,
language, and minimum wage.
The living standard and values of people in France are considerably different than
compared to people in Australia which impact the effectiveness of management policies. In
comparison, Australia has a better living standard of employees since they receive better
healthcare, insurance and retirement benefits (Hiew, Halford, Van de Vijver & Liu, 2015).
These elements must be taken into consideration by the manager to ensure that he/she
leads the team in Paris while considering these factors. People in France are less friendly
than compared to Australia; therefore, the manager must be prepared for a culture shock.
In order to build positive employee relations, it is important that the manager must earn the
trust of employees in France before implementing changes in the organisation. People in
Paris prefer to keep themselves busy all the time whereas it is not the case with Australia
where people are more spontaneous while making plans (Holmes & Looseley, 2013). The
manager should make sure that he/she pre-planned the meetings with employees and other
business partners to avoid offending them by following local customs.
The manager has to take into consideration the difference between taxation policies
of Australia and France while managing the operations in Paris. In Australia, income taxes
are the most significant taxation which is collected by the federal government. However, in
France, taxes are levied by the government, but, collected by public administrators which
include three institutions: the central government, local governments and the social security
association (ASSO) (Carbonnier, 2013). Non-residents in France usually pay tax on their

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income at a minimum French tax rate of 30 percent; non-residential individuals in France
are only taxed for income which they generate through French sources (Expatica, 2019). On
average, the income tax rate in France in 2017 was 45 percent. In Australia, the tax is
imposed if the income of a person goes above $18,200 whereas, in France, the tax is
imposed on the income above €9,964 (ATO, 2019). In Australia, people have to pay GST at
the rate of 10 percent on goods and services which they consume whereas, in France,
people have to pay the Sales Tax Rate at 20 percent (ATO, 2018). The differences in taxation
policies must be taken into consideration by the HR department; for example, the manager
relocating to Paris should receive the salary from the Australia office to avoid paying higher
tax in France.
The living costs difference between France and Australia should also be taken into
consideration by the manager while dealing with employees. In Australia, the prices for
consumer goods are 1.25 percent lower than compared to France along with restaurant and
groceries prices (Numbeo, 2019). The HR manager has to pay higher for purchasing
consumer goods and groceries while living in Paris, France. However, the rent prices are
substantially low in France than compared to Australia because people pay 36.18 percent
higher rents in Australia. These factors are necessary to be taken into consideration by the
HR manager to address key HR challenges while relocating the manager from Australia to
France. Employees and business partners in France might not prefer to meet at restaurants
to discussed business details which the manager should take into consideration to be
considerate and avoid offending them Bocquier et al., 2015).
Understanding and communicating the message in the right tone is important for
managers in order to ensure that they build a strong relationship with employees. In the
case of Australia, English is the most commonly spoken language in organisations; however,
in France, French is the most common language in the workplace (Yagmur & Van de Vijver,
2012). The manager who is relocating from Australia to France should learn basic French in
order to ensure that he/she is able to interact with employees. The employees might feel
disconnected with the management if they are not able to discuss their issues in their local
language. Many employees might also face challenges while communicating in a foreign
language such as English which will discourage them from sharing their ideas and issues with
the management. The manager can hire an employee as a translator to share his/her ideas