In the realm of global mobility and international assignments, understanding the profound impact of cultural integration cannot be overstated. Recent research conducted by Cartus in collaboration with KPMG sheds light on a critical, yet often overlooked, aspect of global relocations: the high stakes of failed assignments and the undervalued significance of cultural training. Despite its paramount importance, many corporations still regard cultural training as a ‘soft’ topic, not prioritizing it in the planning and execution of international relocations. This perspective, however, overlooks the tangible benefits that a well-rounded cultural training program can offer both to the assignee and the corporation at large.

Failed Assignments: A Costly Oversight

The costs associated with a failed international assignment are substantial, not just financially but also in terms of employee morale and corporate reputation. Cartus and KPMG’s research illuminates how a lack of cultural preparedness can be a primary contributor to these failures. Assignees often face unexpected challenges that stem from cultural misunderstandings, leading to stress, decreased productivity, and even premature return. The repercussions for the corporation involve not just the direct costs of the relocation but also the loss of potential business opportunities and weakening of international partnerships.

Investing in a 360 Solution

Recognizing the multifaceted nature of global assignments is essential. A successful relocation strategy encompasses more than just the logistical aspects—it requires a 360 solution that includes thorough cultural training. This involves preparing the assignee for the nuances of the host country’s culture, from business etiquettes and communication styles to social norms and everyday life. Such training equips assignees with the necessary tools to navigate their new environment effectively, fostering smoother transitions and more successful assignments.

The Imperative of Cultural Training

Making cultural training mandatory is not just about avoiding the pitfalls of cultural misunderstandings; it’s about maximizing the potential of global assignments. It’s about ensuring a constant understanding and alignment between the assignee, the corporation, and the Relocation Management Company (RMC). When assignees feel prepared and supported in their new cultural context, they are more likely to engage positively with their work and surroundings, leading to higher satisfaction levels and better outcomes for both the individual and the corporation.

Why Relocate? The Importance of Purpose and Preparation

The decision to relocate should be driven by clear objectives and a comprehensive understanding of the assignment’s potential challenges and opportunities. This includes a deliberate focus on cultural training as a critical component of the relocation process. By making cultural training mandatory, corporations signal their commitment to the well-being and success of their employees, acknowledging that the ‘soft’ aspects of relocation preparation can have ‘hard’ outcomes for the success of international assignments.

In conclusion, the insights from Cartus and KPMG’s research highlight the indispensable value of cultural training in the global mobility domain. As corporations strive to navigate the complexities of international business, investing in a well-rounded cultural training program is not just beneficial but essential. It’s time for corporates to view cultural training not as a soft topic, but as a strategic imperative that underpins the success of their global assignments.