The world of international HR management (IHRM) is changing. As companies shift operations abroad, IHRM is moving beyond expatriate programs. Today's IHR managers are charged with scaling and managing overseas HR operations. This shift has not only created new opportunities for IHRM professionals, but also for companies looking to staff operations abroad. In this article, Part I of a two-part series, we speak to Bob Gerst, an international HR consultant with 20 years of experience, about trends in expatriate and international HR management.

For US companies, International HR management has traditionally been the domain of expatriate management. In the past, when companies needed support abroad, they often relied heavily on domestic employees. According to Bob Gerst, IHR managers were primarily concerned with "shifting bodies" abroad. Moving U.S. employees to foreign locales was often the preferred way to disseminate knowledge and expertise to foreign offices; however, this method was also very expensive. The cost of maintaining expats abroad can run in excess of four to five times the employee's base salary. Moreover, retention is often poor. Less then forty-five percent of employees stay beyond two years with the parent company after returning from abroad.

The high cost of expatriate programs has compelled companies to drawn on alternative resources, such as regional staffing programs. Seeking less expensive, more efficient ways to staff their overseas offices, companies are making large investments in offshore operations. A particularly strong trend in the tech sector, companies like AMD, Dell, HP, and Motorola are opening offices and labs around the world, putting local managers and executives in charge. Multinational companies often feel the need to have "local" faces in key positions. As a result, companies often train regional executives in the US and send them back to work in their home regions.

The presence of dedicated regional employees has created new staffing opportunities for US companies. If an engineer is needed in Beijing, a company might transfer an employee from Taipei rather than send an employee from the US. With available, capable employees available in the region, transferring an expatriate is no longer the only option. Although regional transfers are not easy, moving employees in the same region is less expensive and requires far fewer resources than transferring an employee from the United States.

As companies continue to go global, will expatriate programs be eliminated completely? According to Bob Gerst, expatriate programs will not disappear, but are in the process of being redefined. Although we've seen new alternatives rise to replace traditional expatriate roles, there will always be demand for skilled US professionals overseas. According to Gerst, rather than long-term, multi-year assignments, its more likely we will see US employees installed for short-term, multi-month assignments. It is often difficult to "force" a US practice onto another country - given the cultural, business and social differences that exist. But as Bob Gerst states, "It is the differences around the world which make the global business and HR activities vibrant, challenging and filled with opportunities".

In next month's RecruitersWorld in Review, we'll continue our exploration of international HR management. In Part II of this series, we'll look at the challenges associated with setting up an office abroad.

Recruiters World Special Reports is a timely, in-depth news series that explores vital issues and trends affecting the human-capital industry. Published monthly, Recruiters World Special Reports is presented and distributed exclusively through Recruiters World in Review. Visit the Special Reports archive to read previous articles. Watch for new articles as they appear on the Recruiters World home page.