Let's Face it.

China isn’t going anywhere, and neither is the need for multinational companies (MNCs) to be present there. For MNCs, having a solid foothold in China means needing boots on the ground, often in the form of expatriates. Sure, companies dream of full localization, but some level of communication with HQ is always necessary, and having expats ensures that the company culture and values are properly shared across borders. However, sending expats isn’t cheap. And replacing them? That’s even worse. It can cost up to $250,000 just for expatriate turnover.

Now, here’s where it gets scary: If your expats leave every two years, your company could spend around $4 million in just 10 years. Ouch! But if you manage to find the right people and they stick around for five years on average, that cost shrinks to just $500,000.

And it’s not just about saving money. Longer-term expats mean greater business continuity. Instead of constantly retraining new arrivals, your team becomes more efficient. Plus, expats who stay longer tend to understand the local market better, speak the language more fluently, and build strong relationships. (And let’s be real, who’s going to learn Chinese if they know they’re packing up in a year or two?) These long-term expats also have deeper connections with local teams and partners, and that trust can make all the difference in business.

Research backs this up: Firms that keep their expats around longer in China often report higher profitability. These seasoned expats just know the market better and are more clued in on the regulatory landscape.

Why Are Expat Assignments Cut Short?

So, why do so many expat assignments fall short? Well, a few reasons keep popping up:

1. Cultural Adjustment Issues

Moving to China is a huge adjustment, and many expats aren't prepared. They step into their new role and suddenly, everything feels... off. When too many things feel wrong, they start thinking about heading home. Fast.

2. Unhappy Partners or Families

Let’s not forget the saying: "Happy spouse, happy house." If an expat’s partner or family isn’t adjusting well, chances are the expat won't either. When the spouse is miserable, the whole situation can quickly unravel. A 2023 KPMG report even found that 40% of expats cut their China assignments short because of family-related issues.

3. Health Concerns

Safety and health worries can also send expats packing. Concerns over food safety, air quality, or dealing with a new healthcare system can make China feel like a risky place to be.

4. Career Stagnation Fears

Finally, many expats worry that spending too much time abroad will hurt their careers when they return home. If their company doesn’t have a clear repatriation program, they might see their time in China as a potential career dead-end.

The Case for Longer-Term Expatriate Assignments

So, what’s the upside to keeping expats in China longer?

1. Knowledge Transfer and Expertise

The longer an expat stays, the more they can share their expertise with local teams. It’s like having a built-in mentor who knows both the company’s culture and the local market inside out.

2. Reduced Costs

Remember that $250,000 turnover cost? When expats stay longer, those expenses drop dramatically. Fewer turnovers mean less training and onboarding, saving time and money.

3. Stronger Relationships

It’s all about trust. While new expats might be welcomed with politeness, a long-term expat becomes a valued team member. This rapport leads to smoother collaboration and happier stakeholders.

How to Extend Expat Assignments

So, how do MNCs encourage their expats to stick around in China longer?

1. Pre-Assignment Preparation

Give expats (and their families!) the tools they need to adjust before they even step foot in China. Comprehensive cultural training can help everyone feel more at home in the new environment. This preparation doesn’t have to be limited to big companies either—smaller firms can benefit from services like China Expat Spouse’s Ready for China Workshops, which get families ready for the transition.

2. Family Support Programs

Supporting the family is crucial. Offer schooling for the kids, language training for the spouse, and help them integrate into the community. Services like 1:1 Transition Coaching or Group Coaching can make all the difference. Keeping the family happy means the expat can focus on work, not personal worries.

Conclusion

At the end of the day, keeping your expats in China longer doesn’t just save money—it leads to stronger teams, deeper market knowledge, and better business outcomes. With the right support and preparation, both the expat and their family can thrive, turning a short-term assignment into a long-term success

Julie has all the attributes of a great coach: empathetic, a good listener and confronting when necessary. Julie helped me a lot during the sessions with developing my business practice by asking powerful questions and by being there for me. Thank you!

Claudia U. Romania

Your Company’s Success in China is Guaranteed

Frequently Asked Questions

1. How long do expat assignments to China usually last?

Most assignments last around two to three years, but companies are aiming for longer-term stays to improve business continuity and cut down on turnover costs.

How can companies prepare expats for life in China?

Offering cultural training and family support programs before the assignment begins can significantly improve the expat's experience and willingness to stay longer.

What is the biggest challenge for expats in China?

Cultural adjustment and family dissatisfaction are the most common reasons for expats cutting their assignments short.

What are the costs associated with expat turnover?

Replacing an expatriate can cost up to $250,000. Over time, these costs add up, especially if expats leave after just two years

How can I contact you?

You can reach us at julie@chinaexpatspouse.com

+86 152 0400 1727. We are always happy to answer your questions.

Can smaller companies offer the same support as larger MNCs?

Yes! Smaller firms can benefit from tailored services like the Ready for China Workshops, which offer comprehensive support to both expats and their families.

Have any questions?

If you have any questions about our services, feel free to contact us.