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Local companies use expatriates to help start overseas operations
South Florida Business Journal - June 22, 2007

by Julia Neyman

Juan Morales meets clients in airports, restaurants and hotels to pitch them on a concept that sounds glamorous but is becoming more and more common in South Florida's business model: He asks them to expatriate.

The presence of expatriates in Miami-Dade County is well documented and visible. Foreign consulates arrive at cultural functions in chauffeured Lincolns and wealthy foreigners who head the Latin America divisions of multinational corporations are seen hitting South Beach hot spots in Bentleys and Benzes. But, the other side of the coin - local executives who travel overseas to help companies launch initiatives, open new offices and start new projects - is far less visible.

Morales, the leader of Stanton Chase International's Latin America recruiting efforts, said as local companies increase their international presence, more and more local executives are packing their bags and families to relocate to places from Brazil to Japan.

"Companies want someone who can come in, be an initiator, get a business off the ground, identify and train their successor, all at the same time," he said. "Usually, a company will look for a three- to five-year target."

Hiring local talent is cheaper than sending an expatriate, who usually comes with a high salary; an allowance for housing, food and clothing; a car or private chauffeur; and, in some cases, a security guard. But some companies see the benefits of exporting one of their own, especially when the goal is to solve a specific problem or engender the firm's corporate culture in a new location.

"One of the main reasons you decide to send someone outside is because you want to solve a problem," said Alejandro Ceron, director of human resources for Marsh's Latin America division. "You need someone with experience in solving the issues, and you want someone with the style of the company."

'it goes on all the time'

Marsh has more than 100 expatriates operating worldwide, including 10 expatriates distributed between eight offices in Latin America.

In South Florida, the most popular sectors looking to expatriate are financial services, consumer products and global multinationals that have regional headquarters here. Often, companies send their own people overseas, but when they cannot find the right person in-house, they rely on Morales to recruit from the outside - often from a competitor and always in secret.

"It goes on all the time," Morales said. "But it's not something you openly call and say, 'Excuse me, Mr. CEO, I'd like to take your best person and give them to a competitor.'"

Once Morales finds the talent, he faces the challenge of convincing executives - 99 percent of whom have never given relocation a thought - to expatriate. Both Morales and Ceron said the key is to approach individuals who have expressed prior interest in working abroad or who may have foreign roots. Morales recently recruited a Miami executive for an airline based in the Caribbean. He had a Caribbean background and was interested in returning to his home country as an expatriate, Morales said.

Unlike this executive, most local expatriates encounter the challenge of adjusting to a foreign culture and business climate. The culture of a collectivist country like China is different from the individualistic business climate of the United States, said David Timothy, director of the Berlitz cultural consulting program.

The one- to two-day program helps prospective expatriates compare their personal communication and management styles to those of the country they are hoping to relocate to. Timothy said one goal is to ease the culture shock that is often accompanied by an "us versus them" attitude shared by some foreigners working abroad.

Timothy said his program has seen an explosion of interest as companies have increased their forays into Latin America, Europe and Asia.

"Anyone who wants to be productive in international business really needs to look at these components," he said. "Our business is exploding, and it goes back to what's happening internationally and the fact that international business and globalization is the norm today."

Source: http://southflorida.bizjournals.com/southflorida/stories/2007/06/25/story9.html?i=86921&b=1182744000%5E1480256

 

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