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Introduction
Due to the economic environment's increasing globalization over the past few decades,
multinational companies (MNCs) have become increasingly dependent on deploying staff on
international assignments. As such, sourcing and managing the appropriate employees to
oversee MNCs' overseas operations has become one of their most significant difficulties
today. The need for expatriates who can survive in foreign cultures is increasing as a result of
these challenges, claim Kataria and Sethi (2013). However, because they typically struggle to
fit in, expats frequently wind up performing poorly or leaving international assignments early,
which leads to expatriate failure. Expatriate failure is a serious and ongoing problem, with
rates ranging from 25 to 40 percent in industrialized countries and rising as high as 70 percent
in underdeveloped countries (Allianz Partners, 2022).
Businesses may incur high costs as a result of the failure of an expatriate employee due to
missed investments, low morale, and reputational damage. Burgess (2016) claims that the
direct expenses of an expatriate failure might be anywhere between $250,000 and $1 million,
with the annual failure cost for enterprises in the United States of America reaching roughly
$2 billion. Due to expatriate failure, a foreign firm may also experience issues with the local
government and economy, as well as strained client relationships (Briscoe, Schuler, and
Tarique, 2012). Multinational firms should therefore pay particular attention to the recruiting
and selection processes of expatriates in order to lower the risk of expatriate failure (Burgess,
2016).
The concept of expatriate failure in the recruitment and selection processes of multinational
firms will be examined in this article. The paper will specifically focus on the recruitment and
selection process for expatriates at Royal Dutch Shell to explore the factors that contribute to
expatriate failure, such as cultural barriers, a lack of support, and unsatisfactory jobs, as well
as discuss strategies and practices that the organization can use to reduce the risk of expatriate
failure and increase the possibility of successful global assignments.

Organizational Background
Royal Dutch Shell, also known as Shell remains one of the world’s largest oil and gas
companies. The company which was founded in 1907 and is headquartered in the
Netherlands, has grown to become one of the largest and most prosperous oil and gas
corporations in the world. Over the years, Shell has consistently produced strong financial
results and a strong track record of providing its shareholders with a positive return on
investment. The company, in 2020, reported a revenue of $180 billion and $4.8 billion in
profits (Royal Dutch Shell, 2021). The observed financial success of Shell can be attributed
to its diverse portfolio of businesses, which includes downstream refining and marketing,
chemicals, and upstream exploration and production. In order to lessen its carbon footprint,
the company has also made significant investments in renewable energy sources like wind
and solar energy.
Shell is a multinational corporation with operations in more than 70 nations on seven
continents (Royal Dutch Shell, 2021). The organization's oil and gas exploration and
production efforts are mostly focused on deep-water, shale, and conventional oil and gas. As
a result of its involvement in the oil and gas sector, Shell is dedicated to minimizing its
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environmental impact and promoting a sustainable future through socially responsible

business practices and the creation of numerous social initiatives to benefit the communities
in which it operates (Royal Dutch Shell, 2021). The company invests heavily in low-carbon
technologies and has set ambitious goals to reduce greenhouse gas emissions.
The choice of Royal Dutch Shell as a case study in this study is based on the company's
diverse workforce and sizable presence of expatriates. Around 94,000 employees from more
than 150 different countries and 80 different languages made up Shell's workforce as of 2021
(Royal Dutch Shell, 2021). As a result, the organization employs a sizeable number of
expatriates, with about 10% of its workforce taking on international assignments. Despite
having a comprehensive expatriate program that includes pre-departure training, training in
cultural awareness, and ongoing support throughout the assignment, Shell has continued to
face issues with expatriate failure (Royal Dutch Shell, 2021). According to a PWC study,
Shell had a failure rate for expatriates of 6.3% in 2019, which was lower than the industry
average of 11% but still represents significant costs to the organization (PwC, 2020). This
underscores the importance of exploring the causes of expatriate failure in the organization.

Concept of Expatriate Failure

There has also been discussion among researchers about how to define expatriate failure in a
systematic way, leading to a considerable debate in the human resources literature about
exactly what the term refers to (Lee, 2007). The premature termination of an international
assignment is the most common definition of expatriate failure. However, Kraimer et al.
(2012) argue that the failure of expatriates cannot only be measured by an early return from
an overseas assignment. Hung-Wen (2007) further posits that success cannot be attributed to
an expatriate who completes their foreign assignment on time but performs poorly, just like
someone who leaves the organization soon after being repatriated. As such, a more accurate
definition would be an expatriate's or repatriate's inability to perform in accordance with the
organization's expectations because it encompasses both inadequate performance while on
assignment and dysfunctional turnover after returning home. As a result, a number of factors,
including job performance, cultural acculturation, and willingness to continue working for the
company, should be taken into account when determining an expatriate's success (Kraimer et.
al., 2012).
Briscoe, Schuler, and Tarique (2012) point out that there are three categories of expatriate
failure - dropout, brownout, and turnover upon return. Dropout refers to the assignment's
early completion. The termination of the assignment does not signify that the employee has
fully left the company; rather, it only refers to the termination of the foreign assignment and
not the entire employment relationship. Brownout refers to an assignee's subpar performance
or inefficiency. This undesirable performance is probably going to result in extra expenses
and damage (business) relationships. On the other hand, an assignee's resignation within a
year of being repatriated is referred to as turnover upon repatriation. According to Briscoe,
Schuler, and Tarique (2012), turnover upon repatriation is regarded as the most expensive for
the company due to the fact that the organization spends a lot of resources on the assignee's
training and development, and turnover causes the loss of both these resources and the
capabilities and knowledge the assignee gained while on assignment. In order to decrease
turnover after repatriation, it is crucial for organizations to have strong repatriation programs
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as well as offer support to expatriates during their assignment and repatriation processes
(Kraimer et. al., 2012).
Expatraite failure can have multi-dimensional negative effects on various stakeholders in the
organizational value chain, including the organization, the expatraite, and his immediate
family. Although estimates of the precise impact vary, the organization first suffers a sizable
loss of revenue. For instance, Varner and Palmer (2002) found that each unsuccessful
expatriate would cost an organization anywhere between $250,000 and $1 million. On the
other hand, McCaughey and Bruning (2005) found that the relocation expenses for a single
executive returning home early would be between US$60,000 and US$250,000. McEvoy
(2011) further points out that expenses are incurred by the expatriate through moving costs,
income tax assistance, visa costs, living expenses, and other perks, with the costs being
anywhere between 1.5 and 3.5 times the salary of the expatriate. In addition to the financial
costs, the project, the organization's reputation, and its relationships with counterparts in the
host country can also suffer from expatriate failure.
When expatriate failure occurs, the expatriates themselves bear heavy losses. These include
psychological and emotional distress, harm to their careers, harm to their relationships, and,
among other things, the possibility of losing their jobs and the ensuing financial strain
(McEvoy, 2011). Along with any psychological or emotional distress they may experience as
a result of returning earlier than expected, these effects can also have an impact on the
expatriate's family, particularly a significant other (Briscoe, Schuler, and Tarique, 2012). To
minimize these potential negative effects, it is essential for businesses to offer sufficient
support and resources to expatriates and their families before, during, and after their
assignments. This can entail getting financial assistance, learning a foreign language, getting
cultural training, and having access to mental health resources (McEvoy, 2011).

Causes of Expatriate Failure

There are several factors to consider while analyzing the reasons why expatriates fail. These
factors can be divided into those that concern the expatriate individually, those that concern
the expatriate's family, and those that concern the organization's policies and procedures with
regard to managing expatriates. Organizations like Royal Dutch Shell may experience
enormous financial losses as well as reputational damage as a result of these circumstances.
Multinational corporations must carefully evaluate and take care of these elements in order to
increase the success rate of expatriate assignments. According to an EY study, factors
contributing to expatriate failure range from unhappy spouses and safety concerns to job
satisfaction and host country satisfaction (EY, 2018). However, one of the main reasons that
cause expatriate failure has been identified as cultural differences, which result in culture
shock.
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Figure 1: Causes of expatriate failure among multinational companies

Source: EY (2018)
When an employee is transferred to another country to work, they might find it difficult to get
used to the new working environment and culture. In the host country, for instance,
communication styles, business procedures, and work ethics may differ, which can lead to
miscommunications and conflicts between the expatriate employee and their coworkers. Due
to these cultural differences, it is crucial for expats to make cross-cultural adjustments, which
include interacting with citizens of the target country and acclimating to the environment both
inside and outside of the workplace (Adler, 2008). Expats may experience culture shock, a
psychological and social process that makes employees feel various negative emotions if the
new culture contrasts with their own. The culture shock cycle is a common way to illustrate
the process of cultural adjustment.
Figure 2: The culture shock cycle
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Source: Adler (2008)

As shown by the top of the curve, expatriates are initially very enthusiastic about their new
job abroad and interested in learning about the host culture. Nevertheless, as the curve slopes
downward, expatriates move into the next stage, frequently characterized by disillusionment.
The graph then reaches a low point, signifying culture shock, a time of confusion and
annoyance brought on by a constant exposure to too many novel situations that cannot yet be
interpreted. After this stage, the curve starts to rise once more, cultural adjustment starts, and
expatriates start to feel happier, work more efficiently and productively. According to Naeem
et al. (2015), some expatriates are stuck at phase two, where they are unable to adjust to the
different culture and are consequently compelled to return home, prematurely ending their
assignments. It is critical to point out that even linguistically and economically similar
nations can cause culture shock to the same extent as more disparate ones.
Family-related problems have additionally been identified as a significant factor in expat
failure at Royal Dutch Shell. When an employee is assigned to a position abroad, their family
might have trouble adjusting to the new setting (Cole, 2011). According to an EY survey, in
71% of the companies surveyed, the unhappy spouse of an expat is the main factor
contributing to expat failure (EY, 2018). The importance of the beneficial effects of family
adjustment is also emphasized by Lazarova, Westman, and Shaffer (2010). The study
conceptualizes how cognitive, affective, and conative factors affect how well expatriates
perform in their roles as partners or employees, as well as how family influences these roles.
Goede and Berg (2018) also observed that successful assignment completion was correlated
with spouse and family adjustment. As a result, a family's inability to adapt to the new
environment is likely to have a negative impact on the expatriate's wellbeing (Fischlmayr and
Puchmüller, 2016). It can also cause stress and anxiety for the expatriate employee, which
may result in a premature return from the assignment (Cole, 2011).
Failure of the expatriate can also result from inadequate company support. Organizational
support was defined by Cao, Hirschi, and Deller (2014) as the level of assistance provided to
expatriates by the organization, including parent and local businesses. Employees sent on
expatriate duties require sufficient support to aid in their acclimatization to the foreign
environment. This includes educating them in their culture and language, helping them find
housing and transportation, and supporting their families (Cao, Hirschi, and Deller, 2014).
Without sufficient assistance, expatriates may find it difficult to adjust to their new
surroundings, which could result in a bad experience and a hasty departure from the
assignment. According to Andresen and Margenfeld (2015), the support offered by
organizations to expatriates may be direct support or indirect support. Direct support comes
from programs sponsored by the organization, while indirect support comes from techniques
and actions that the organization supports (Andresen and Margenfeld, 2015). Moreover, staff
members' commitment to their organization grows along with perceived organizational
support, and as a result, they perform better, are less likely to be absent from work, and are
less likely to switch jobs (Cao, Hirschi, and Deller, 2014).
Communication issues are another factor in expat failure. Language barriers can make it
difficult to communicate when working in a foreign country, which can lead to
misunderstandings and errors. For expats to shape social networks, solve workplace issues,
and develop skills that increase job satisfaction, language skills are a necessity (Rodriguez
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and Yepes, 2018). According to Zsófia (2016), expatriate performance will suffer if they are
unable to communicate in the local tongue. Mehtap (2015) emphasizes that failure for an
expatriate may occur as a result of miscommunication, which is a significant barrier to
performance. These factors individually or cumulatively may lead to the failure of employees
on expatriate duties.

Expatriate Recruitment and Selection at Royal Dutch Shell

Royal Dutch Shell, an international oil and gas company with operations in over 70 nations,
employs a sizable number of expatriates in its operations outside of their home countries,
prompting it to put in place a variety of measures to lower the risk of expatriate failure, such
as choosing the best employees for the international assignment, offering adequate training
and support, and providing a generous compensation package (Royal Dutch Shell, 2021). In
order to find and hire the best talent for these positions, the company created and
implemented a structured recruitment and selection process for expatriates that includes a
thorough assessment process, in-depth training, and ongoing support for expatriates and their
families (Royal Dutch Shell, 2015).
Finding a need for an expat is the first step in Shell's expatriate recruitment process. The
company's Global Mobility Department manages this and collaborates with regional Human
Resources departments to identify the skill sets needed for each position (Royal Dutch Shell,
2015). Once a need has been identified, the company posts job advertisements both internally
and externally, inviting both internal candidates and those outside the company to submit
applications.
This is followed by the selection procedure which entails a number of evaluations to establish
the suitability of the applicants. This involves a thorough assessment process which involves
numerous assessments such as personality tests, cognitive ability tests, and tests of situational
judgment (Royal Dutch Shell, 2015). According to Royal Dutch Shell (2021), these
assessments aid in determining a candidate's aptitude for working with individuals from
various cultural backgrounds, overcoming the difficulties of working and living abroad, and
adjusting to novel situations.
Following the selection of the candidates, they undergo extensive training to prepare them for
their positions (Royal Dutch Shell, 2021). This involves training in the local language and
culture to aid in their integration, as well as teaching in the organization's regulations and
procedures (Royal Dutch Shell, 2015). The training program's goal is to help foreign
nationals comprehend local customs, business procedures, and interpersonal dynamics with
clients and coworkers (Royal Dutch Shell, 2021).
After the candidates are selected, they receive comprehensive training to get them ready for
their jobs (Royal Dutch Shell, 2021). This often involve culture awareness sessions to
introduce the candidate to the organization’s rules and processes as well as the local language
and culture to facilitate their assimilation. These sessions are aimed at aiding foreign
nationals in understanding regional traditions, business practices, and social dynamics with
clients and coworkers (Royal Dutch Shell, 2021).
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Additionally, Shell offers assistance to expatriates and their families both before and after
their deployment. This includes support with the costs of housing, medical care, and
children's education as well as assistance with the procedures for obtaining visas, work
permits, and immigration (Royal Dutch Shell, 2015). To assist expats in adjusting to their
new roles and surroundings, the company offers a variety of additional services, including
language instruction, cultural training, and access to expat networks (Royal Dutch Shell,
2021). These programs, which show how committed the firm is to the welfare and assistance
of its expatriates, are proof of its dedication to building a diverse and inclusive workforce,
which is crucial to its success in a fast changing global business climate.
Recommendations for Reducing Expatriate Failure at Royal Dutch Shell (800)
Failure of an expatriate can result in significant financial costs and the loss of valuable talent,
which makes it a major concern for businesses that operate internationally (Albrecht, Ones
and Sinangil, 2018). Royal Dutch Shell is no different, so it is crucial for the business to take
action to lower expatriate failure. In this section, we will go over a number of suggestions
Shell could implement to lower the failure rate of its expatriates.
Developing appropriate selection criteria is one of the most important steps in reducing
expatriate failure. Shell ought to give careful thought to how employees are chosen for
expatriate duties. The company should employ strict selection criteria that are centered on the
candidate's abilities, background, and cultural fit (Guttormsen, Francesco and Chapman,
2018). The selection process will be more streamlined if the purpose and objectives of an
international assignment are known. The candidate's and their family's capacity for adjusting
to a new environment and culture should both be evaluated as part of the selection process
(Goede and Berg, 2018). Shell will decrease the possibility of expatriate failure and make
sure the expatriate is a good fit for the assignment by carefully choosing the candidates for
the position (Albrecht, Ones and Sinangil, 2018).
Offering thorough and specialized training programs that assist expatriates and their families
in getting ready for their assignment should be another crucial aspect of Shell's effort to lower
the failure rate of expatriate workers (Cole and Nesbeth, 2014). This includes instruction in
the local business climate, customs, and traditions, as well as training in the language and
culture. Information on the nation's laws and regulations, security issues, and healthcare
systems should also be covered in the training (Abugre and Debrah, 2019). Through this
preparation, expatriates and their families will be better able to adapt to their new
environment and understand what to expect (Albana, 2014).
Shell should continue to assist expatriates and their families while they are on assignment.
According to Albrecht, Ones, and Sinangil (2018), this includes assistance with housing,
healthcare, and education as well as access to local support networks for expats. The business
should also hold frequent communication and feedback meetings to ensure that expatriates
are adjusting to their new responsibilities and environments (Cole and Nesbeth, 2014).
Expatriates will feel valued and supported with this support, enabling them to focus on their
work without being distracted by personal or family matters.
Families of expatriates should also get support to help them adjust to a new setting and
culture (Guttormsen, Francesco, and Chapman, 2018). Albrecht, Ones, and Sinangil (2018)
contend that Shell is required to give partners and kids complete assistance, including access
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to community services and teaching in the spouses' and kids' respective languages and
cultures. As these are crucial for children's wellness and academic achievement, the company
should also make sure that they have access to high-quality healthcare and education (Albana,
2014). By assisting their families, Shell will help to reduce the stress and worry that might
make expatriates fail.
The expectations and requirements of the expatriate role should be stated by Shell in a clear
and transparent manner (Albana, 2014). This covers the duration of the task, the duties of the
position, and the performance standards. Additionally, the company must give clear
instructions on how expatriates and their families will be supported while on assignment.
Shell will assist expatriates in being better prepared and feeling more at ease with the
assignment by establishing clear expectations and providing transparent information
(Guttormsen, Francesco and Chapman, 2018).
Expatriates should receive assistance from Shell when they return home after their
assignment. Reverse culture shock can be just as difficult as adjusting to a new culture
(Hamze, 2020). The business should offer assistance to expatriates and their families in
readjusting to life at home, including training and support. This includes assistance with
locating suitable housing, institutions of higher learning, and medical care, as well as
assistance with reintegrating into the workforce (Albrecht, Ones and Sinangil, 2018). Shell
will help expatriates feel valued and supported and lessen the likelihood that they will leave
the company by offering support for reverse culture shock (Albana, 2014).

Conclusion
The firm is committed to selecting the best individuals for expatriate roles and providing
significant assistance to expatriates and their families while they are on assignment,
according to an analysis of Royal Dutch Shell's expatriate management. The company has a
thorough and organized hiring and selection procedure for foreign workers, which includes a
rigorous evaluation procedure, in-depth training, and ongoing assistance for foreign workers
and their families. In order to assess the need for expatriates and ensure that the best
applicants are selected for these jobs, the company's Global Mobility Division works closely
with regional Human Resources departments.
The organization nevertheless reports a significant failure rate for expatriates at 6.3%, despite
its stringent procedures. As a result, the paper recommends that Shell reevaluate its hiring
practices to find the best candidates for expat positions, offer thorough support throughout the
assignment, and make sure that expats and their families are well-prepared for the difficulties
of adjusting to a new culture (Albrecht, Ones and Sinangil, 2018). Additionally, Shell needs
to be aware of regional cultural and linguistic variations and offer training to assist
expatriates in adjusting to their new surroundings. These measures will enable international
workers to focus on their work without being distracted by personal or family issues and help
them feel valued and supported (Albana, 2014).
When put into practice, these suggestions will help Royal Dutch Shell's Human Resources
function carefully craft tailored and organized recruitment and selection criteria for potential
expatriates in an effort to decrease the incidences of failed foreign assignments, which are
typically expensive for the company.
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