Rewarding Self‐Initiated Expatriates: A Skills‐Based Approach

Abstract

AbstractExpatriate compensation is considered one of the most difficult issues in expatriate policy, yet it is an important area of international HRM since it can attract and retain high‐skilled employees, increasing satisfaction and reducing turnover. Most of the literature on expatriate compensation has focused on traditional organizational expatriates (OEs). This article uses insights from the OE compensation literature to discuss the compensation of an overlooked group of expatriates known as self‐initiated expatriates (SIEs). We first define SIEs, discuss their motivations to pursue an expatriate experience, and categorize them into three different groups based on their skill level. Then we focus the discussion on rewarding high‐skilled SIEs, a valuable group of expatriates that are receiving increased attention by MNEs. We argue that to attract high‐skilled SIEs, HR managers should consider using more nonfinancial rewards in addition to financial rewards. This article has implications for both academic research and organizational practice. © 2016 Wiley Periodicals, Inc.