Establishing firm lines of communication with your expats from the start will foster a feeling of trust as well as leaving little room for misunderstandings. We look at how you can make your internal communications more effective.

Processes run smoother
Budget limitations are respected
Content is critical
Communication programmes
How to communicate with employees
Branding does not have to be big to be effective
No time like the present

Some employers overlook and or undervalue employee communication, which in the grand scheme of things can be a costly mistake. Open communication ensures honest employee relationships, easier administration, and lower expenses.

Clear communication eliminates unpleasant surprises.

Honest communication makes everyone involved aware of what is happening when it happens and, therefore, fosters a feeling of trust between management and the workforce, effectively providing employees with a strong sense of security.

From a practical perspective, an ideal programme ultimately makes life easier for everyone. This point is especially true for expatriates and their families, who often feel left out once they leave the home country and become subject to out-of-sight-out-of-mind syndrome.

Companies with only a handful of international employees often follow an informal expatriate policy, which can exacerbate the existing communication gaps. In these circumstances, management risks making the international assignees perceive that they are not treated fairly, especially if too many special deals are agreed to behind closed doors. When details of these allegedly private negotiations are discovered, they ultimately cost the company both money and time, and may increase the chances of assignment failure.

Open communication also helps to ease the harried job of policy administrators, as well as those involved in HR, compensation, benefits, legal, finance, local management, and senior management.

By providing clear explanations of policy, as well as the procedures that accompany policy (and the ever-present exceptions to policy), a communication plan can lessen the burden for administrative matters, thus minimising comments such as the following:

"I constantly hear the same questions/complaints from my employees."

"Our administrative staff was cut. I don't have time to handle all the questions I get, brief new employees, coordinate with those being reassigned, and so on."

"I spend too much time cleaning up after expatriates because they don't follow procedures for relocation, security, or expenses."

"My administrators don't handle things consistently due to lack of proper documentation or training"

"Management needs some reassurance that our programme and policies are administered appropriately"

"Many expatriate administrative functions are supposed to be handled by field human resources, but they aren't doing their job or don't know how to handle them."

Implementation of an effective communication plan also addresses the organisation's mandatory obligations with regard to financial and legal matters.

For example, employment law often mandates that employees be made aware of their employment rights, benefits, the financial details of those benefits, and so on.

Complications arise when a company is multinational and either sends employees overseas or hires local workers in those locations. With host-country regulations demanding compliance, too, the company must cover all related contingencies and inform employees of what they are required by law to know.

By communicating facts, the company also decreases the risk of litigation by disgruntled employees who did not understand the policy in the first place, or who may feel mistreated if the policy was deliberately vague. Such litigation often has an adverse effect on the particular department involved, thus impacting the smooth operation of team members.

By being intuitive and building an information foundation, management eliminates unpleasant surprises, thereby quelling rumour and negative talk at the water cooler, while at the same time empowering employees by giving them accurate knowledge they can use.

Beyond the need for positive employee morale and operational efficiency, open communication also saves money. After all, when a company is spending money on implementing a policy, it would be foolish not to communicate it clearly to employees.
 
This point hits home when one considers, for example, the high cost of a comprehensive employee benefits programme, which likely would include retirement plans, profit-sharing, and medical coverage.

Expatriate programmes, with traditional incentives to motivate employees to live in a foreign country and allowances to cover assignment-related expenses, are also costly (See sidebar.). If the programme is not understood, expatriates and local managers will not use it effectively, nor will they appreciate all that the company is providing.

 Understanding the 'why' of open communication is only the first step; understanding the 'what' and 'how' comes next. Not communicating, or doing so inefficiently, breeds confusion and negativity. No news often becomes bad news. So what should an employer tell his or her employees?

The obvious starting point for the home-country workforce includes all aspects of pay, benefits, time off, domestic relocation, performance standards, job levels, grievance procedures—in essence, everything that affects 'employee life'.

Other issues come up as the company evolves: Is there a change in our business direction? Are we being sold? Will we have layoffs? Are we acquiring another company?

While all this information is essential for expatriates, too, this particular category of the workforce requires much more. For example:

Pre-departure information about moving logistics, temporary accommodations, cultural laws, and taboos for daily life and work situations. When expatriates have reliable data, they can make informed choices about school selection and neighbourhoods, and address business needs in their assignment location appropriately and with grace.

Existing policy and procedures. If everyone knows who is responsible for what and when their responsibilities need to be met, things get done.

Policy amendments, the reason behind them, and management initiatives that affect policy. This knowledge avoids employee backlash and phones ringing off the hook, particularly when employees feel their income has been affected adversely.

Up-to-the-minute security concerns and practical advice. This information is critical, particularly in these dangerous times in certain world regions.

Programme philosophy and data methodology. By detailing whether pay is under the balance sheet approach or other alternative philosophy, and how pay is calculated, HR stands a good chance of convincing expatriates that compensation is fair and based on real data.

Changes in differentials, currency devaluation, inflation, and fluctuating exchange rates. Providing clear explanations through appropriate vehicles every time pay changes keeps employees satisfied that the changes are appropriate for current economic conditions.

Immigration and local registration requirements, acquired rights, local labour code, and union activity. This information keeps the employee in compliance and the employer out of legal trouble.

Tax obligations. Although the employer may subsidise any extra liability, employees need to know the effect on their tax returns, as well as understand their own obligations.

Organisational and reporting structure. Clearly identifying the reporting relationships encourages optimum feedback on employee performance.

Repatriation protocol. When aware of the timing of repatriation and what will happen at the other end, employers can maximise the chance of retaining assignees and optimising their overseas experience.

Communicate what's going on: both good and bad.

Faced with the immense task of creating the most effective communication programme, employers sometimes forget these key points:

• Do not communicate only bad news, and when you do, provide an explanation. However, bad news is sometimes better than no news. When you have bad news to report, provide an explanation to support it.

• Do not insult your employees by talking down to them. Put the hard facts out there and respect their ability to respond to the truth and deal with it

• Do not make promises you can't keep just to keep the "natives from getting restless." Unreliability will affect your credibility adversely.

• Do not be afraid to be open and honest and say, if necessary, "we're working on it. We're trying to make it better. We want to help you so let us know how we can. Please do your part by using the resources provided and let us know if they don't do the job."

On the other hand, some positive actions that an employer should consider include the following:

• Identify communication goals and stick to the plan; in other words, be accountable.

• Create a consistent identity, whether designing a newsletter, or a company intranet. A uniform look allows employees to immediately recognise the vehicle and the source (See sidebar.).

• If you ask for feedback, let employees know that you are really listening to them.

Although people usually think of branding an employer's identity as a huge, costly effort that includes a professionally designed logo, a full-colour palette, and a 50-page style guide, companies can create an effective brand just by being consistent.

Simple measures such as consistent use of terminology, distribution through one media type, conventions for subject lines in e-mails, and font colour, constitute a brand. They allow the user to immediately identify the source and know what the message is about, thereby increasing the effectiveness of the communication effort.

For those employers who have not yet implemented a formal communication programme but need a way to communicate regularly with their employees-particularly expatriates-the time has come.

Anticipating employee needs is clearly the best route. If you want an effective communication programme, the choice is simple: pay now in time, money, and effort, or pay later in unhappy employees, turnover, and possibly even lawsuits.

August 2005

Joseph Crumly (joe.crumly@orc-dallas.com) is a senior consultant for ORC Worldwide's international compensation practice, based in Dallas, TX. He can be reached at.  Dea McKenzie (deamckenzie@yahoo.com) is a communication consultant based in New York, NY.

Reprinted with permission of Worldwide ERC®, from the July 2005 issue of MOBILITY.

Subject: Communicating with your expats, internal communications, Expatriate communications programmes