Expatriate assignments can be extremely rewarding for both companies and employees, but the road to success is often paved with challenges. Early terminations of expats to China, in particular, are common and can be costly. But why does this happen, and more importantly, how can it be prevented? Let’s explore some of the key reasons for these terminations and what companies can do to avoid them.

The Cost of Early Expat Terminations

When an expat returns early from an assignment, it’s not just a personal setback—it’s a significant financial loss for the company. The cost of recruitment, relocation, housing, and settling an expat can easily exceed hundreds of thousands of dollars. An early return means wasted investment, and often, the company must absorb additional expenses in rehiring or managing disrupted business operations.

Emotional and Career Impact on Expats

For the expat, an early termination can feel like a personal failure. They may struggle with damaged confidence, stalled career progression, and stress. These emotional tolls can bleed into their professional life, affecting their performance even after returning home. Moreover, the dream of an international career can quickly turn into a nightmare if things go wrong in China.

Key Reasons for Early Termination

What are the main reasons for early terminations, then? The biggest challenge is often a cultural or language-related one.

Communication Barriers

Moving to a country like China, where language and cultural norms differ drastically from the West, can create communication issues. Misunderstandings between expats and local teams often arise, leading to frustration and a breakdown in productivity. Without adequate preparation, expats may feel overwhelmed and isolated in a foreign environment.

Misalignment with Local Customs

Beyond language, there are deep-rooted cultural practices that may clash with the expat’s worldview. From the importance of face-saving to understanding hierarchical structures, navigating Chinese business etiquette requires a keen sense of cultural awareness. Many expats find themselves struggling when these expectations are not aligned.

But it is not just the expat themselves who can be the deciding factor for prematurely terminating an assignment. The non-working partner and other family members are often also majorly involved in the decision to repatriate early.

Spousal Adjustment Difficulties

Family dynamics play a massive role in an expat’s ability to stay the course. Often, the “trailing spouse” finds it harder to settle in, which can cause friction. If the non-working spouse cannot find their own sense of purpose or community, the entire family may feel unsettled, pushing the expat to consider returning home early.

Education and Childcare Concerns

If children are involved, the question of whether education and childcare are solved to the family’s satisfaction becomes paramount. Finding international schools, navigating a new education system, or adapting to cultural differences in schools can be overwhelming. Unhappy children can lead to unhappy families, and when family life is out of balance, the likelihood of early termination skyrockets.

Another reason why expats can decide to return to their country of origin before their contract in China ends, can be misalignment with what is expected of them and what they will be offered.

Unrealistic Job Expectations

Sometimes, expats face a mismatch between what they were promised and the reality on the ground. Whether it’s managing a larger team, dealing with a more competitive market, or navigating regulatory red tape, expats may feel unprepared or unsupported. This professional dissatisfaction can contribute to an early return.

Lack of Support from Headquarters

It’s one thing to be far from home, but another to feel abandoned. Expats often experience a lack of communication or support from headquarters. When they encounter obstacles in China, they may not receive the resources or guidance needed to overcome them. This can lead to frustration and the sense that the assignment is destined to fail.

What should MNCs do to prevent early terminations then? There are several strategies that can help you to keep your expats to China on contract until the very last day. Or even have them extend for another stint.

Comprehensive Pre-Departure Training

Training for both your future expats and their spouses can significantly decrease the likelihood of early terminations.

Cultural Sensitivity and Language Skills

One of the best ways to prepare expats is to equip them with the tools they need to succeed in China. Offering cultural sensitivity training and language lessons can help expats build the confidence they need to communicate effectively and navigate unfamiliar social situations. This preparation should go beyond the basics delving deep into Chinese values, business practices, and even social norms can make all the difference.

One possible offer for such training is the Ready for China Workshops China Expat Spouse offers.

Managing Expectations and Setting Goals

Clear communication is key. Before an expat even steps on the plane, both the company and the employee need to have an open dialogue about expectations. What are the goals of the assignment? What challenges should the expat anticipate? Setting clear, realistic expectations can prevent feelings of frustration later on.

Another way to prevent early terminations is to support not just the expat themselves, but their entire family.

Spousal Career Coaching

Companies should not overlook the accompanying spouse. Offering career coaching or transition workshops for the accompanying partner can be a game-changer. Helping them explore new opportunities, whether it’s in their career or personal growth, ensures they feel more fulfilled and invested in the assignment. One source emphasizing the importance of supporting family adjustments and cultural integration is KPMG’s Global Assignment Policies and Practices Survey. Find the 2023 edition here for more information on this topic.

Education and Well-being Support for Children

Support for children is equally important. Companies can provide resources for locating suitable schools, support networks, or even offer subsidized childcare services. When children feel happy and secure in their new environment, the entire family dynamic improves, reducing the likelihood of an early termination.

Another way of helping expats and their families settle into life in China is to strengthen your company’s support of them during the assignment.

Regular Check-ins and Feedback Mechanisms

Continuous communication is essential. Scheduling regular check-ins with expats allows both the company and the employee to address concerns before they escalate. Creating a feedback loop shows that your company is invested in the expat’s success and is willing to make adjustments if needed.

Discussing Professional Development Opportunities

Providing professional development opportunities during the assignment helps expats feel that they are growing and evolving in their careers, which can mitigate feelings of isolation or stagnation. Encouraging participation in local business events or offering mentorship opportunities can foster professional growth.

Another helpful tool for supporting your expats is to actively foster local support networks.

Mentorship from Experienced Expats

A mentorship program that pairs newly arrived expats with experienced ones can offer invaluable guidance and support. Learning from someone who has already been through the highs and lows of expatriate life in China provides a sense of community and belonging. If your company does not (yet) offer its own mentorship program, the China Expat Spouse Ambassador Program could be a useful resource.

Encouraging Social Integration

Companies should also encourage expats to integrate socially. Whether that is through expat communities, local clubs, or business associations, creating social bonds can help ease the loneliness and culture shock often felt by expats. Strong social networks foster resilience. This goes for the working spouse, but probably even more so for the non-working partner. The employee has a strong support network in the form of their Chinese colleagues, whereas the “trailing spouse” can often feel isolated and lonely.

In conclusion:

Preventing early terminations of expats to China requires a multi-faceted approach. Companies must consider both the professional and personal needs of their expats, offering comprehensive support from pre-departure through to the end of the assignment. From training to family support and local networking opportunities, taking proactive steps can ensure both the company and the expat reap the benefits of a successful international assignment.

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Frequently Asked Questions

What are the main reasons expats leave China early?

Cultural adaptation challenges, family issues, and professional misalignment are the top reasons expats terminate their assignments early.

What should be included in pre-departure training for China?

Pre-departure training should include cultural sensitivity, language lessons, and realistic goal-setting to help prepare expats for the challenges they may face.

How can companies support expat families in China?

Companies can offer spousal career coaching, childcare support, and resources for finding suitable schools, which can help stabilize the family dynamic.

How can expats build social networks in China?

Expats can join local clubs, business associations, or expat communities. Companies can also create mentorship programs pairing experienced expats with new arrivals.

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.

What is the financial impact of an early termination for companies?

Early terminations can cost companies hundreds of thousands of dollars due to recruitment, relocation, and operational disruption expenses.

Have any questions?

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