INTERNATIONAL COAL NEWS

Luring the expats home

WITH the concerns about the skilled labour shortage in the industry Crosscut Clyde thinks we shou...

Staff Reporter

As an old colleague of mine once said: “Once an expat, always an expat. Once they are gone, mate, they are gone”. I am not so sure about that.

What drives these folk to consider an offshore posting in the first place has to be the first question. I understand there are a number of reasons and mostly very good ones at that.

This reasons include money, career enhancement, experience, a company transfer, a desire to see the world, being sick of their current situation, their best mate says to come over, their partner wants to go. The list goes on.

However, at some point one would hope the lure of the homeland is strong but, like anything else, there has to be a good reason and it is usually – but not always – financial.

Expats almost certainly make quite a bit more money when offshore. This is not necessarily taxation-related but more about the value offshore companies place in having well-trained people and the potential long-term benefits that can accrue from outlaying the funds to secure such people.

Meanwhile the local companies that may have outlaid the funds in the first place to train these people invariably suffer the consequences. It is a vicious circle but a fact of life.

Now let’s take a diesel mechanic as an example. The remuneration offered in faraway lands for a skilled artisan is mind-boggling.

Firstly there is the base salary to negotiate before the additional benefits, which can be many.

If that person has their head screwed on, the opportunity to swing a couple of home trips in a year as part of the contract is almost a given – and make that business class airfare please.

Then there are lodgings and transport along with an attractive superannuation package.

Add to that an offshore service allowance of say 10% plus a hardship or site severity allowance depending on the location.

This could be upwards of another 30%. Let’s not forget the cost of living adjustment, which is usually weighted on a monthly spend on a similar parcel of groceries in the mother land.

By the way all those extras are tax free. And often workers are paid in US dollars or pounds – which until recently was all part of the attraction.

So there you have it; it’s good for the workers but it is a fair old package offshore companies will part with to get the local talent.

However, there is usually a long-term value equation for local companies – and community – because at some stage the expat usually wishes to return home and settle down.

The upside is pretty good for all concerned as the worker comes back experienced and cashed up.

There is no doubt local companies either re-employing or employing expats afresh have much to gain.

International experience is important in so many ways and can mean so much – even though it is sometimes hard to place a dollar value on it for the pay package.

This old canary calls it being “street-smart and world-wise”.

Expats don’t freeze at a remote country immigration booth when they are asked to travel on the new employer’s behalf.

With any luck they have picked up a new language. They understand international issues and can handle the various cultures people are exposed to when they travel or even in their own offices.

Harping back to how companies may ensure their valued employees, who wish to see the world, do, in fact, return to the coop, I have an anecdote to share.

A company I was once involved with had a simple philosophy – encourage international travel once employees are trained in their respective trade or skill.

Help them to find similar work, preferably within a dealership or agent. Offer to underwrite – with a few contingencies – a return passage in case they cannot make their funds stretch.

Above all, offer them employment on their return.

This basic approach provided the employee a feeling of respect and secured a safety net. And the employees did come back, with newfound skills and abilities.

They get to feed their desire to see the world but at the same time they know there is something to come back to.

I understand this approach may not fit the policies of all industries or companies, however if you are serious about your valued assets being motivated and dedicated employees, and those assets want to wear the tag of an “expat” for a while, then let them go and give it a try.

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