Managing impatriate adjustment as a core human resource management challenge.

Although expatriation issues are at the core of international human resource management (HRM) practice and discourse, impatriation (hiring foreign nationals for fixed-term temporary employment) is as yet underresearched. This is true even though several economies, many of them in the Middle East,

rely heavily on impatriates to develop and sustain their economies. This article presents the case of the Kingdom of Saudi Arabia (KSA) as an example of such an economy, and proposes a model of impatriate adjustment, followed by a case study and with specific reference to HRM implications.

Globalisation, and the impact that globalisation has had on the practice and theory of management and of the management of people, has attracted increasing interest among scholars and practitioners alike (Sparrow, et al., 2004; Global Relocation Services, 2004; Frenkel, 2006). Within international HRM scholarship, limited research has evaluated HRM systems and practices within Middle Eastern economies (for an exception see Ali, 1995; 1999). This is a major oversight for a region that is at the core of the world economy, offers unparalleled growth opportunities for foreign investment (Rice, 2004), and contributes significantly to world trade (World Bank, 2003; Wilson, 2001; Kavossi, 2000).

In their quest for rapid and sustainable economic development, many of the region's countries have come to rely heavily on temporary migrant workers: the Gulf economies in particular (Bahrain, Kuwait, Oman, UAE, Saudi Arabia, and Qatar) as well as Libya. This phenomenon is not new. Many Western developed countries have relied for a long time on temporary migrant workers in times of skill shortage or to carry out lowly, menial, and undesired jobs; however, the extent of their deployment in the Middle East is considerably higher. The presence of impatriates in this region has in fact outgrown the indigenous workforce, and typically represents a majority. In most of the Gulf countries, over 60 percent of the working population is foreign (Ruppert, 1998; World Bank, 2003), with the largest number of impatriates in the Kingdom of Saudi Arabia.

By presenting the case of the Kingdom of Saudi-Arabia we draw attention to an important feature of the labour markets in the Middle East. We first outline the characteristics of the labour market in the KSA that have necessitated a national level response to human resource management and labour market reform. We then propose a development model for managing the adjustment of impatriates in heavily dependent economies at the national and corporate level. This, to the best of our knowledge, is the first such proposed model. The research literature often addresses adjustment issues of expatriates (typically, the individual middle-to-senior executive from a developed economy posted to another developed economy as well as to developing or transitional economies for a limited period). This article explores the role of impatriates: foreign employees recruited by local companies at all organisational and skill levels, typically for a particular position, usually over a fixed-term period. We highlight in particular implications for the HR function in organisations in which the majority of employees are temporary migrant workers. We suggest that HR has an important and overlooked role with respect to facilitating the successful cultural and work adjustment of impatriates, including enhancing their productivity and well being. We end with a case study to help us reflect the model against prevalent practice.

Demographics of the Labour Market in the Kingdom of Saudi Arabia

The Saudi Ministry of Labour estimated there were approximately seven million foreign workers in Saudi Arabia in 2003, making up almost one-third of Saudi Arabia's total population of about 23 million. Expatriate labour across all occupations and skill levels constituted around two-thirds of the total workforce in 2003 (Pakkiasamy, 2004).

The large share of impatriates in the Saudi labour force is a consequence of its rapid economic development following the oil boom revenues of the 1970s. The rapid growth of the economy generated an equally rapid increase in employment. Employment trebled between 1970 and 1980, and more than doubled between 1980 and 1995. The rising demand for labour was largely met by attracting impatriates (Madhi & Barrintos, 2003).

The KSA is also one of the most important markets among developing countries, representing $US 25 to 30 billion worth of annual export potential to international exporters (World Bank, 2003; Rice, 2004). The attractive incentives offered to foreign investors have been drawing multinational enterprises from around the world to form subsidiaries and joint ventures in the country, in turn fuelling the demand for skilled labour (Bhuian & Al-Jabri, 1996; Yavas, et al., 1990; Bhuian, 1995).

According to Pakkiasamy (2004), only 15 percent of impatriates in Saudi Arabia are engaged in skilled labour industries (oil, healthcare, finance, and trading); the rest are mostly employed in industries with a need for low-skilled labour (e.g., agriculture, food) and services (e.g., restaurants, domestic service). Impatriates from Europe and North America dominate the high-skilled positions; low-skilled workers originate primarily from South and Southeast Asia.

Recent figures indicate that the KSA has between 1 and 1.5 million impatriates each from Bangladesh, India, and Pakistan; and around 900,000 workers from the Philippines (World Bank, 2003). Together, these communities account for around 30 percent of Saudi Arabia's temporary foreign worker population. Migrants from nearby and neighbouring countries, especially Yemen and Egypt, also constitute a large part of Saudi Arabia's impatriate community. Westerners count for some 100,000, and their numbers are on the decrease. Saudi nationals work in the public as well as private sectors, and are overwhelmingly male. In Saudi Arabia women have generally limited opportunity to work (they constitute merely 10 percent of the workforce: Rice, 2004) and most that do work are employed in banking, education, and health. Mainly men--natives and impatriates--comprise the country's manpower in the literal sense.

Typically, impatriates enter Saudi Arabia on a working or labour visa sponsored by a Saudi company or an individual. The company is responsible for the initial processing and thereafter renewal of the visa and the employee's residence permit for one to two years. In other words, no external or impatriate labour is permanent; with few exceptions, foreign workers will get neither nationality nor permanent residency in the KSA.

In spite of high remuneration and outstanding fringe benefits (Bhuian & AbdulMuhmin, 1995), impatriate employee turnover in the KSA has become a major cause for concern (Ben-Bakr, et al., 1994) with significant direct and indirect costs to companies and the national economy (Bhuisan & AbdulMuhmim, 1995; Yavas, et al., 1990).

The Policy of "Saudisation"

The replacement of impatriates with nationals is a key aspect of labour market policy in Middle Eastern economies. In the KSA, the government's wish to increase the participation of Saudi workers in the private sector can be attributed to four key reasons:

1. To tackle the increasing unemployment rate, in particular among young males, ranging from 10 percent to 30 percent of the male working age population according to various estimates (Rice, 2004);

2. To reduce its dependency on impatriates and the unavoidable volatility this brings to the economy and the costs associated with it;

3. To recapture and reinvest income that would have otherwise flowed overseas;

4. To encourage the build-up of know-how and expertise that will remain in the country--The creation of a strong human capital stock is a critical step to development (Romer, 1989).

The Saudi approach and the reasons behind it would hold true for other Middle Eastern economies too. The consequent policies are known as "Saudisation" and include strict impositions on the employment of impatriates in the public sector, the requirement that private firms reduce their foreign labour force by 5 percent annually, and restricting some occupations to Saudi nationals only. On paper Saudisation was included in national development plans since 1985, but implementation efforts only began in the second half of the 1990s (Madhi & Barrintos, 2003; World Bank, 2003). These development plans incorporated women's greater employment participation, but the Sha'ria law dominant in Saudi Arabia places a strong emphasis on traditional gender roles; although women constitute high numbers in university programmes, they are unlikely to be offered employment except in specific industries such as education, health, and banking. The low employment rate among women means that the KSA has a vast reserve of human capital that remains underutilized for cultural reasons.

Pakkiasamy (2004) notes that small and medium-sized business owners, for whom enforcement of Saudisation was not strictly applied until recently, have started to protest that these measures place unfair pressure on them to hire more expensive local workers. At the same time there is a major task at hand to change traditional Saudi attitudes toward manual labour, which is deeply despised (Rice, 2004): "Most Saudis subscribe to the mudir (manager) syndrome, which means that nothing less than a position of authority, status, and respect is honourable" (Rice, 2004, p. 67).

A Model of Impatriate Adjustment

The research literature considers the adjustment or acclimatization of expatriates as a desired means to an end: to facilitate the successful completion of a temporary assignment (typically, a middle-to-senior executive from a developed economy and a mother company posted to a developing economy or subsidiary) and as mitigation against underperformance, an early departure, or lowered satisfaction and well being (Baruch & Altman, 2002; Stroh, et al., 2005). The temporary nature of the assignment means it is configured as a "temporary adjustment" for the duration of the assignment, at most. The term culture shock (Furnham & Bochner, 1986) is at the root of the adjustment problem and expresses this concept well.

At the other extreme is a set of objectives around "integration" that are common among immigration countries that wish to see a longer term involvement or even settlement of migrant workers. In the Middle East, the case of Israel vis-a-vis Jewish migrants should be noted as an example of a national system aimed at the "absorption" (as is the official term: klita) of migrants from an early stage of their arrival by providing immersion programmes in language, history, and cultural know-how; and with a dedicated government ministry to devise policy and oversee implementation.

The case of temporary migrant workers as a key national labour policy issue and at the participation rates evidenced in the Gulf states, Libya, and the KSA is hardly addressed in the management and HRM literature (for an exception, see Mellahi & Al-Hinai, 2000).

Adjustment to a foreign environment is usually studied as an individual attitudinal-perceptual-behavioural concern (Dawis & Lofquist, 1984; Furnham & Bochner, 1986; Stewart & Bennett, 1991): a psychological intrapersonal phenomenon (with some interpersonal aspects), and so is conceptualised as a micro issue. Black's (1988) model is the one most commonly cited in the literature for expatriate adjustment. Black and Stephens (1989) list four key adjustment requirements for the effective acclimatization to a foreign environment:

1. Work adjustment: Adjustment to the work itself, the work environment, and to the teams and groups at work. Such an adjustment at times may be crucial to effective productivity.

2. Supportive adjustment: Adjustment with respect to the time to get adjusted to the host culture.

3. Interaction adjustment: Adjustment with respect to interaction with host nationals and their customs, rituals, values, and norms.

4. Nonwork adjustment: Typically constituting leisure, food, healthcare, and the like.

All four adjustment categories roll up into an overall adjustment measure. The vantage point of the model and its focus is the individual expatriate's response to a host country and the work environment, with the limited aim of gaining sufficient understanding, insight, and know-how to make his temporary stay a success. The latest such model by Stroh, et al. (2005, p. 101), presents a similar model.

The requirements for impatriate adjustment may be different. When large numbers of foreigners flock to work in the same host environment, as is the case in the KSA, for example, the perspective for both the individual and the host environment may be qualitatively and quantitatively different from the typical individualistic stand of the lone expatriate, as posited in the research literature.

There is consistent evidence that difficulties in general adjustment to the host country are the key reason for unsuccessful overseas assignments (Tung, 1979; Stone, 1991; Baruch & Altman, 2002; Global Relocation Services, 2004). It may be up to the individual or the organization to deal with that. In our case here, impatriation, we propose that the onus on facilitating adjustment is on the host organisation and indeed the host country, because the accumulated consequences for not doing so would create large-scale inefficiencies as well as injustices. Indeed, in circumstances in which most employees are temporary foreign nationals, we argue, a key role of management and the core role of the HR function would be to manage effectively the adaptation process of this workforce.

Cultural and work adjustment within the Saudi employment context is therefore more complex and potentially more problematic for the management of people than in normal expatriation circumstances. To the vast stream of inflowing manpower add the cultural diversity of nationalities and cultures, comprising highly skilled professionals, semi-skilled technical workers, as well as low-skilled manual workers, and the enormity of the adjustment challenge for the national economy becomes apparent.

Our model's focus is on both the micro and macro levels of the work setting and the broader environment. Taking the lead from Black & Stephens (1989), the proposed model (Exhibit 1) emphasizes work and nonwork issues and their interaction by focusing on two environments: the country (societal) and work (organisational). The model also addresses the impact of cultural adjustment, leading to outcomes of productivity and well-being. In this model the HR function plays a pivotal role as the primary vehicle for facilitating adjustment at the organisational level. By default, HR may also facilitate adjustment at the societal level if no other function engages in this endeavour (as is the case in most Middle East countries).

The approach employed here is an organisational perspective, and is practice driven. We do not address the many and relevant human rights issues implicated in the mass migration (even if temporary) of millions of people to find a livelihood, better their life prospects, and enrich their skills. The assumption we make is that having an "adjusted" impatriate is good for the organisation and the economy.

In this model the environment is segregated into the broad general environment and the specific work environment. Further, in each environment differentiation is made between the micro level and the macro level.

The general macro environment for an impatriate includes:

1. Immigration control and resulting security procedures on entry to the host country and throughout the period of residency. We would envision the HR function to provide information and hands-on help in dealing with the authorities on behalf of, or jointly with, the impatriate.

2. Rights and duties within the politico-legal system of that country relevant to impatriates, including freedom of expression. In the case of Saudi Arabia the laws concerning alcohol consumption, women's dress code, and mixed-sex associations are relevant issues.

3. Essential needs being met based on the consideration that impatriates seldom belong to a homogenous culture, ethnic group, race, religion, or nationality. This inherent diversity may lead to different acclimatisation norms and demands. For example, some groups may find it easier to acclimatise to the weather than others. Some may adjust to the culture effortlessly; others may not.

4. Tolerance. The general attitude of a country, a culture, and a populace to foreigners, particularly when they are present in large numbers, is another key factor in facilitating adjustment. Here, efforts at the national and regional levels would supplement efforts at the organisational level.

General micro environment issues include leisure, food, and healthcare, each making its own micro environmental impact on adjustment. Providing healthcare in their native tongue, familiarizing the culture (e.g., visits, talks, films), and giving useful tips about food and leisure are the kind of interventions that facilitate adjustment.

The work-related macro environment includes:

1. Technology. Technology platforms vary from country to country and so does training. Establishing early on the knowledge and experience gaps will facilitate adjustment.

2. Management style, work style. Adaptation problems with respect to a country's common management style, individual and collective work norms, and work style may not only take a chunk out of the productive working hours, but may also have financial implications because of associated opportunity costs. Familiarizing impatriates with the native approach, while making allowances to accommodate their way of doing things, would ease the adjustment to the work environment.

The work-related micro environment typically includes:

1. Performance standards. Negotiating the expected levels of productivity with respect to benchmarking against industry standards and the host nation's norms (which may conflict with those previously experienced by the impatriates) may help adjustment.

2. Supervisory controls and the standards and types of controls vary from industry to industry and from country to country. Expectations and how they are dealt with will affect adjustment.

3. Job specifications, which may vary even in tightly organised sectors and in mature industries. Expectations and how they are dealt with will affect adjustment.

4. Organisational culture. Organisations form their own cultures, which in turn create unique styles of conduct and may become a source of competitive advantage. Fitting newcomers into a culture is a challenge to any institution, more so for temporary foreigners.

5. Human capital standards. The attention, opportunities, and resources accorded for skills and personal development may enhance the motivation to adjust.

The Role of HR

All these considerations should find their way into informing and formulating HR policies and procedures. In our model they are segmented into proactive provisions and reactive provisions. Proactive indicates policies that are actively pursued, whereas reactive services are those provided upon demand.

HR policies pertaining to training and exposure to cultural aspects of life and work may have to be imparted actively in order to facilitate adjustment.

Training would be an important undertaking for HR, particularly in developing economies where it is seen as a major source of sustainable competitive advantage (Hatch & Dyer, 2004). Often it is narrowly defined, to do with work tasks and procedures as well as on-the-job training. Here, a core task would be to help impatriates gain cultural know-how, and quickly. Given the numbers of foreigners and their visibility, their dependency on the host environment for the provision of services (unless they live and work in segregated communities), facilitating contact with locals would also be a positive early intervention. There is growing evidence that cultural exposure to the local population facilitates adjustment (Kraimer, et al., 2001; Tung, 1998). There is also mounting evidence that early acculturation expedites adjustment (Tung, 1998). The opportunity to socialise with locals is an invaluable source of information about culturally acceptable norms and behaviours: It reduces uncertainties about both work and nonwork issues (Caligiuri & Lazarova, 2002). Acquiring basic language ability is of equal importance. This is shown to have a direct impact on early adjustment (Mendenhall & Oddou, 1985; Culpan & Wright, 2002). The HR function is ideally poised to provide help in these domains.

A specific undertaking not commonly addressed by HR departments is services for spouses and families. Significant evidence has shown the adverse affect that spouse and family maladjustment bear on expatriate performance (Shaffer & Harrison, 2001; Bauer, et al., 2001; Takeuchi, et al., 2002; Lachnit & Solomon, 2002; Rushing & Kleiner, 2003; Selmer and Leung, 2003). Given the numbers involved in heavily dependent economies, it would not be unreasonable to expect this to become a regular undertaking, proactively pursued at different levels: organisational, municipal, regional, and even national. At the same time, many impatriates arrive without their families. We do not have any relevant literature to guide us on how that bears on adjustment and performance. The organisation's HR function may be the best poised to inform relevant stakeholders and decision makers on this important aspect of impatriate life.

Alongside proactive interventions, a number of reactive, on-demand services would be desirable. First and foremost legal advice, for an impatriate employee may not have the facility or recourse to any other advice. Consumer services and leisure facilities would again be called for, when particular dietary requirements or leisure preferences cannot be fulfilled or are not easily accessible in the wider community. Interpersonal issues, such as personal counselling, family planning, interpersonal skills training, cultural awareness, and cultural sensitivity training, would be welcome additions for an "enlightened" on-demand HR function.

Adjustment Outcomes

Cultural and work adjustment of impatriates could be measured, as in the case of expatriates, by their direct and indirect effect on productivity and well being; however, the two populations differ significantly. Impatriates are typically hired for the whole range of positions (professional, semiskilled, and mostly lower manual jobs), whereas expatriates concentrate mostly in the professional positions; given the large supply of manpower available in these highly desired jobs (Pakkiasamy, 2004; Rice, 2004), it has not yet been determined what constitutes satisfactory adjustment for impatriates. The person concerned's expectations may be quite different from the expatriate's. For the organisation, a routine manual job may require little in the way of cultural adjustment.

The impatriate versus expatriate context is quite different. Being the odd one out is the common expatriate experience (Altman & Shortland, 2001), whereas the impatriate typically joins a community of compatriots, with the associated benefits of being a member of a large like-minded, culturally homogenous group. Adjustment in these circumstances may take on quite a different tone than we have become familiar with in the expatriate literature.

Case Study

Al-Watania Poultry (AWP), a family business established in 1982, is the largest integrated poultry farm in the KSA and throughout the Middle East region, accounting for more than 30 percent of the total domestic poultry production in the KSA. AWP has also captured a significant market share in the Arabian Gulf countries. Its overall production capacity amounts to about 500,000 chickens per day (fresh, frozen, processed) and some one million eggs per day (Al-Rajhi, 2006). AWP is unique in the integration of its farms, whereby all facilities, services, and auxiliary services are provided internally. Owning its own power stations, water treatment plants, gas stations, residential areas, and telecommunication facilities, the company is almost entirely self-sufficient. AWP ranks number 20 among the top 100 companies in the KSA. AWP adopts the differentiation-competitive strategy, positioning itself as the market leader in producing branded products, supported by branding campaigns, to a wide range of customers.

All executive-level managers and other key managers who are not family members are recruited nationally and internationally. The leadership style and organisational culture are participative; consultations with middle and senior management for most strategic and operational issues are common. The total number of employees at AWP was 4,427 as of September 2006, representing 22 nationalities, including nationals from Saudi Arabia (12%) and the following countries (88% of the workforce): Australia, Bangladesh, Brazil, Congo, Egypt, India, Indonesia, Jordan, Kenya, Lebanon, Nepal, Pakistan, Palestine, Philippines, South Africa, Sri-Lanka, Sudan, Syria, Tanzania, Thailand, and Tunisia. The average duration of stay with AWP varies considerably. From 1985 to 2004, the average turnover in the company for Saudi nationals was 1.1 years, but ranged from 16.3 years for Syrians; 10, 9.4, and 8 years respectively for Pakistani, Bangladeshi, and Egyptian nationals; to 2.6 years for Jordanians.

HR Policies in Al-Watania Poultry

The HR function was started in the early 1990s, initially undertaking recruitment and salary administration. It now comprises 21 employees, covering all aspects of HR administration, training, and support roles, such as: human resource planning, recruitment, training, performance appraisal, career path planning, succession planning, job rotation and skill enrichment, health and safety. Human Resources at AWP is highly advanced in comparison to HR departments in other poultry companies in the region. Their main activities are:

1. Human Resource Planning. The Human Resource Planning function is responsible for:

a. Design of organization structures, job description, & related jobs: This includes the full development of all aspects related to new jobs in different departments, with comprehensive job specifications.

b. Identifying manpower needs via an annual process.

c. Conducting manpower utilization analysis, a process through which the optimum number of employees for each organizational entity is identified to ensure the best utilization of resources.

d. Manpower turnover analysis. Periodical analyses are performed to identify updated turnover rates and the reasons for leaving the company. The turnover rates are classified according to organizational unit, grade of employee, nationality, length of service, among other criteria.

2. Recruitment and Selection. The Recruitment and Selection function is responsible for:

a. Establishing and implementing a comprehensive recruitment system--a complete set of procedures including pre-screening, studying, and evaluating application forms, administering psychometric tests (there are no specific tests for cultural adjustment), conducting preliminary and in-depth interviews, and exit interviews.

b. Identifying recruitment needs as per the manpower needs.

c. Identifying potential sources for recruitment to meet recruitment needs within the stipulated guidelines given by the Saudi government.

d. Selecting and evaluating internal and external recruitment agencies.

3. Training. The Training function is responsible for:

a. Conducting Training Needs Assessment (TNA), an annual process through which the actual training needs for all employees are determined based on set objectives and identified skill gaps.

b. Establishing and implementing annual training plans, incorporating all training needs identified.

c. Measuring the effectiveness of training, as part of the evaluation of the training function and process.

d. Selecting, monitoring, and evaluating training providers.

e. Developing and implementing induction programs. All new employees, irrespective of whether they are local or foreign, undergo induction training programs. Some of the activities covered in programs for foreign employees include:

* General orientation visits to main locations, entities and service centers.

* Attending an introductory presentation about AWP that provides some general information about the history of AWP in addition to a documentary movie.

* Introductory meetings with key employees from the departments/functions with which the new employee will interact.

* Participation in social events organized by the company to meet and be introduced to other employees.

* Informing of AWP policies and procedures and the provision of an Orientation Book.

4. Performance Management. The Performance Management function is responsible for:

a. Establishing performance appraisal systems & procedures.

b. Implementing periodical performance appraisal for all employees.

c. Analyzing performance appraisal results and communicating them to concerned employees.

d. Arranging with the Training department to establish development programs for performance enhancement and personal development.

e. Conducting employee satisfaction surveys.

5. Cultural and interpersonal skills training. HR operates an "open door" policy for employees wishing to consult about the law of the land, regulations, traditions, and customs in the context of work as well as nonwork issues. Regular training is provided on various issues pertaining to work processes as well as ad-hoc training on specific on-the-job issues, which would invariably include reference to work habits, communications, and customs.

In summary, the HR function in AWP provides the usual HR menu expected of progressive HR in current organisations. Its activities, though not specifically designed to cater to the cultural mix of impatriates, are invariably infused with such an emphasis. Reflected against our proposed model, this particular HR function seems to cover most (though not all) proactive as well as reactive measures facilitating adjustment. Note, however, that adjustment as such is not singled out as a distinctive role for HR; neither is it specifically monitored as an output or performance measure in the organisation.

Summary

In proposing a model of impatriate adjustment we highlight a neglected aspect in the international HRM literature and address a key characteristic of the labour markets in the Middle East. Although the model has been developed in the Middle East context, its application is not limited to this region only. We also summarize the core role of HRM in organisations with high impatriate participation.

Impatriates differ from expatriates in a number of significant ways:

1. Whereas expatriates are commonly middle-to-senior executives of MNCs based in developed economies and sent out for a fixed-term assignment to developing countries and/or subsidiaries of the mother company (Baruch & Altman, 2002), impatriates are temporary hired labour, more often than not from developing economies, employed in semiskilled and usually more menial tasks. For expatriates, being assigned to the Middle East may have its disadvantages, especially given the current political climate. For impatriates, emanating from developing economies and sometimes failing regimes, the attraction to work in Middle Eastern countries remains high. Their expectations, accordingly, may be vastly different. The potential for their exploitation may also be greater. As Sklair (2002) has argued, MNCs are more likely to adopt local working and management practices rather than implement costly innovative measures. Our study of the KSA suggests that this strategy may need revising if labour cost and productivity gains are to be realized.

2. The discourse on expatriate adjustment is typically construed as an individual theme, configured to be a short-to-medium-term temporary adjustment, sufficient to equip one with the linguistic skills and cultural know-how to support an ad-hoc assignment (Stroh, et al., 2005). Much of the business and management literature takes an organisational perspective, but only because of the high costs of expatriate failure to the organisation (e.g., Takeuchi, et al., 2002; Global Relocation Services, 2004). Impatriation failure, on the other hand, may not be as costly to the organisation compared to expatriation, as most engaged foreigners are relatively low paid. Given the numbers involved, impatriate failure has the potential to be a major problem at all levels of the economy, for all stakeholders concerned: the organisation, the industry, and even the national economy. Indeed, the policy of Saudisation discussed before emerged in part in response to the endemic inefficiencies presented by underproductive impatriate labour.

3. Impatriates, unlike expatriates, do not have a "mother company" or "mother country" to look after their interests. They are often at the mercy of the host organisation, and, by extension, the host country. The role of the host organisation and its HR department is pivotal in helping the adjustment process of the newcomers. This should become a delivery and output measure for HR in economies heavily dependent on impatriates, with job satisfaction a key indicator alongside productivity--as would be the case with expatriates (McCanghey & Bruning, 2005).

Future research should address a range of evidence, such as:

1. Best practice case studies;

2. Quantitative information on adjustment effects on productivity and well being;

3. Qualitative data on "well adjusted" and "poorly adjusted" impatriate work communities.

With the spread of globalisation and growing economic interdependencies and the migration of labour (Frenkel, 2006), the incidence of impatriate-dependent economies is increasing worldwide. The HR community should take notice.

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Ibrahim Al-Rajhi, Al-Watania Poultry; Yochanan Altman, European Business School, Paris; Beverly Metcalfe, University of Hull; Josse Roussel, European Business School, Paris

BIOGRAPHICAL SKETCHES

Ibrahim Al-Rajhi graduated from King Fahad University as an industrial engineer in 1993. He holds a Master of Science in management from the Arthur D. Little School of Management (1996). The same year he joined Al-Watania Poultry as deputy general manager, promoted to project general manager in 2002, the position he currently holds. Since 2002 he has been a Ph.D. candidate with London Metropolitan University in human resource management.

Yochanan Altman holds professorial positions in HRM in London and Paris and in 2006-2007 is a visiting research professor with ESADE, Barcelona, and a research associate at the European Business School, Paris. He specializes in international HRM & comparative management. A prolific writer, he has authored, co-authored, and edited 10 books and over 80 papers in academic and professional journals and chapters in research books. He sits on the Executive of the European HR Forum (a sister organization of HRPS) and serves as international editor of HRP.

Beverly Metcalfe is senior lecturer in HRM at the University of Hull, and research associate, Centre for Diversity and Work Psychology, Manchester Business School, University of Manchester. She is a specialist in IHRD and gender management. Within these she has gained considerable experience in recent years working with women in the Arab gulf region.

Josse Roussel holds a Ph.D. in management from the University of Paris-Dauphine and a Masters in economics and political science from the University of Paris-I Sorbonne. He is a research associate at the European Business School, Paris. Recently he published a book on the digital revolution in organizations (Vers l'entreprise numerique, Gualino Editeur, 2005). His main research areas are human capital and e-management.