Measuring expatriate return on investment with an evaluation framework

Measuring the outcomes of any human resource management activity is critical in terms of the acquisition, allocation, development, and compensation of employees. Although international assignments and expatriation are important components of most large companies' activities, few of those firms have developed sound metrics to evaluate the success of these initiatives. In particular, there is a lack of established procedures for measuring expatriate return on investment (ROI). The experiences of a large international software development company in measuring expatriate ROI are used to illustrate the dangers of over-reliance on common HR measurement techniques. Then, a two-phase approach to constructing an evaluation framework for expatriate ROI is presented. Rather than focusing on that which is easily measurable, it is designed to direct attention toward the desired outcomes and make the mobility manager directly accountable for business results.