Reflection Exercise
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While a company set up its operation in a new country, often they want to hire a local employee which can be trained with the culture and the way the company operate. In such a situation, a foreign company always looks for the pros and cons of hiring between a local, host or third country national in a country.
The Nigeria facility is a start-up for the Victoria Oilfield which requires an experienced, educated manager for the facility. While hiring different nationality of employee Victoria Oilfield will face different pros and cons give the current situation in the country:
Hiring a local employee
One of the key reasons for hiring a local employee is often based on the deep knowledge of the local culture and business practices with in the country. This can be very advantageous in the case of Victoria, as they intent to set a new facility.
Local managers will be fluent in the local language and adept at managing people accordingly to local uses. Which is of a great benefit in the current situation where the company limited experience.
Local employees will have cost much less than expats, which can serve in savings for the Victoria.
Hiring a local employee will encourages diversity within its global ranks in the company
Within the Nigeria where the government shifts periodically, it will a key responsibility for new manager. Hiring them should be a sign of good public relation and can facilitate in maintenance of good relationship with the local government, central government authorities, labor and other operating unions.
There may be limited pool of people that has the necessary job skills. Company would want to have someone with immense experience, high skills and with leadership qualities.
Local employees are less likely to understand the company’s values and common practices. It can take time, and much more efforts to train a local employee to live up to employees’ culture, mission, vision and objectives
Hiring a Home country employee
Pros:
Expats will be able to uphold the same home country standards of business operations in a foreign country.
Be able to share technical and commercial knowledge with other operators
Can gain more knowledge and better understanding of the foreign markets.
Cons:
Hiring an expat cost the company almost 2-3 times more than hiring a local employee.
With the current political situation in Nigeria, there can be high safety concerns for a foreign employee of a company
It will not be easy for an expat to understand the local culture quickly and build relations with the stakeholders locally.
Hiring a third country national:
Pros:
Third country hiring can easily fill up the shortage of skilled labor in the country
Hiring a third country employee can be little les expensive than home country and will help in cost savings for the company
The level of company’s expertise, culture, values will be a key in hiring. The employee can bring the international perspective to the organization, and at the same time can help the local organization
Often such employees come with high adaptability and show versatility in getting mixed with the local situations.
Cons:
Absence or lack of lingua franca i.e. the common language
Situations can arise where the manager shows negligence towards the local public and local talents
Also faces political risks from the current situation in Nigeria
Although third country national comes with high adaptability, while can face acceptance issues from the local employees