International businesses bring a lot of positive economic benefits to those countries involved in the business. Companies should not avoid international business to save on reimbursement and costs, but such organizations should maintain international business to earn adequate profits from the assignments. Organizations should analyze their costs before they make decisions whether or not to take upon international assignments. Even though international assignments could incur additional costs to an organization, such activities’ long-term benefits are far better than the incurred costs in such assignments. International assignments enhance new opportunities that enhance growth for organizations.
Organizations can adopt specific measures to reduce the costs spent on international assignments. Before considering going global, organizations should examine their population to determine the amount of expenses incurred before when indulging in international assignments. This step helps in early planning to avoid the expenses that the organization had not budgeted for. Another strategy that can be adopted by organizations to avoid excessive spending is by becoming flexible (Bennett et al., 2000). Organizations should 9introduce lump-sum options for the employees who take up foreign assignments to save on costs. Lump-sum allowances help employees allocate their expenses wisely, reducing the costs associated with foreign assignments. Proactive management of foreign assignments can help in saving on costs. Organizations should establish clear guidelines that outline how the employees in foreign countries would be funded early enough through their internal policies and international assignment agreements (Du Plessis & Beaver, 2008). Coming with workable policies for foreign assignments and implementing such policies could help control the costs associated with foreign assignments. Organizations that use tiered policies in international assignments save on costs because they fund the assignments depending on the assignment’s reason. Organizations should develop unique strategies that ensure the international assignments’ compensation is aligned to the business and is cost-effective.
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References
Bennett, R., Aston, A., & Colquhoun, T. (2000). Cross‐cultural training: A critical step in ensuring the success of international assignments. Human Resource Management , 39 (2‐3), 239-250.
Du Plessis, A. J., & Beaver, B. (2008). The changing role of human resource managers for international assignments. International Review of Business Research Papers , 4 (5), 166-181.
