CULTURAL COMPLIANCE: THE COST OF IGNORING CULTURAL DIFFERENCES WHEN DOING BUSINESS

Patricia Glasel has a rich international background, having lived in several different countries growing up. Her journey began in Gabon, where she was born, and extended across various African nations due to her father's work. Patricia's extensive experience as an expatriate has given her a deep understanding of the joys and challenges of living abroad. She holds M.B.A. an a degree in organizational behavior and cross-cultural training from Northwestern University, which has equipped her to support others in their global mobility journeys. After having lived in 11 countries, Patricia currently resides in France and enjoys sharing her experiences to help others navigate their expatriation adventures. Patricia also serves as a Foreign Trade Advisor for the French Government, providing high-level insights and support for international trade initiatives.

Between rising costs and limited budgets, it’s no surprise that many organizations turn to lump sum payments to control talent mobility spending. But is this approach effective – or can it actually end up costing companies more? In this blog post, we’ll discuss the unexpected costs associated with lump sum payment models, where they can go wrong, their impacts on the employee experience, and why managed moves benefit employees and organizations in the long run.  Perception vs. Reality: Lump Sum Payment Outcomes When organizations offer lump sum payments to their mobile employees, they're often being driven by a few assumptions. They believe that their mobile employees: Possess sufficient financial skills to manage their relocation budget Are savvy enough to procure the right relocation services/providers at the right times Have enough host-country knowledge to navigate area-specific nuances independently Will decrease the need for administrative resources by self-managing their relocations

In a competitive global market, organizations face a myriad of laws, regulations, and ethical standards. And because compliance requirements differ from one country to another, a workforce’s intercultural agility plays a significant part in a company’s ability to ‘be’ compliant in the countries they do business with. Intercultural misunderstandings can be costly, leading to safety issues, lost sales and missed business opportunities, but they can also result in hefty fines, sanctions, and even being barred from operating in key markets. Because the ability to navigate cultural differences is crucial to the success and sustainability of global organizations, cultural compliance should be a part of every organization’s overall compliance strategy. 

“Leaders must acknowledge that increasing demographic diversity does not, by itself, increase effectiveness; what matters is how an organization harnesses diversity, and whether it’s willing to reshape its power structure.” - Harvard Business Review

NetExpat recently interviewed two key members of the Eramet Group Team about their efforts in providing intercultural training for their international workforce through their partnership with NetExpat. The initiative is designed to enhance cultural understanding and collaboration among expatriates and multicultural teams, leading to better teamwork and productivity. The interview offers insights on the implementation, impact on performance, family integration success, and much more.

Employee well-being benefits more than just employees. It also benefits employers and the customers they serve. What many organizations don’t realize is how much intercultural agility impacts employee well-being. Below, we’ll discuss the relationship between the two and why focusing on intercultural agility should always be a part of your global talent mobility strategy. Why Employee Well-being Matters Prioritizing employee well-being makes sense from a duty of care standpoint, but it also benefits businesses. Employees that are happy and well are typically more engaged at work. Employes that are culturally agile enjoy enhanced well-being, as they’re better able to collaborate with their teammates and customers. This results in higher levels of engagement at the individual level – and enhanced collaboration and innovation among teams. Additional outcomes include a stronger company culture, brand reputation, and employee retention rate. Customers also reap the benefits. When well-being is prioritized and employees are given the tools they need to succeed, they’re more likely to provide excellent customer service and care. Businesses benefit from higher customer satisfaction scores and brand loyalty. Conversely, the risks of not investing in employee well-being can be costly:

When organizations support mobile employees during an intercultural assignment, they benefit long after those same individuals repatriate. The trouble is, too many businesses don’t see repatriation as a component of the assignment, which can have negative outcomes for both them and the employees they’ve invested in: Without repatriation support, employees face a myriad of challenges, from reverse culture shock and career uncertainty to feeling diminished. Businesses end up paying the price, from employees being disengaged to losing talent altogether. Both have negative impacts on a company’s ROI.

Explore how cultural differences impact customer experiences and learn strategies for success in global business environments.

In today’s rapidly evolving market, businesses have to adapt quickly to scale and stay competitive. At the heart of this challenge is a crucial function that supports all of that growth and adaptation: global talent mobility. More than just moving people from one point to another, effective relocation programs increase productivity, bolster talent acquisition and retention, drive business development, and result in market expansion and financial gains for an organization. So why do so many leaders still consider talent mobility to be an expense instead of a strategic investment? Below, we’ll discuss the importance of shifting perceptions, the long-term positive impacts relocations have on a business’ bottom line, and how internal mobility and HR/talent management teams can start building a business case for organizational leadership buy-in to invest in global talent mobility. Why Global Talent Mobility is a Strategic Investment Recent research from Localyze, which includes data from 240 European business leaders and managers across 4 countries, has revealed that global talent mobility benefits an organization’s bottom line in 10 areas: access to global talent, business profits, cultural awareness, knowledge sharing, innovation, employee retention, employee satisfaction, employee morale, faster hiring and DE&I. In addition, the expenses associated with relocations are far outweighed by an ROI gain of up to 270% when it comes to impact on productivity, talent retention, and overall profitability. In short, because of their daily exposure to mobile populations and associated relocation processes, talent mobility professionals play an integral role in achieving mobility objectives — but they’re also uniquely positioned to offer data-driven insights that can support and contribute to a company’s overarching goals and success. Talent Mobility: The gift that keeps on giving When it comes to innovation, competitiveness, and growth, a company’s success is directly tied to the development and engagement of its greatest asset: its employees. Global talent mobility accomplishes immediate goals by getting the right talent where a company needs it to be in the moment – but when used strategically, it also contributes to long-term gains. The following inter-related benefits should always be considered when calculating mobility’s true value to an organization: