Which type of international employee is a parent country national who works at a foreign subsidiary?

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PCN vs. HCN vs. TCN

Difference among Parent Country National, Host Country National & Third Country National...
(International Human Resource Management)

Which type of international employee is a parent country national who works at a foreign subsidiary?

Difference among Parent Country National, Host Country National & Third Country National...
(International Human Resource Management)

It is interesting times, as the business world is constantly struggling to find solutions to the VUCA ( Vulnerable, Uncertain, complex and ambiguous ) environment. As a member of a global Recruiter Network, I am plugged in-courtesy my extended network-to some of the best practices, as companies are changing tacts to deal with the scarcity of Top Talent.

And as the HBR article alludes, the three forces "Globalisation, Demographics & Pipelines" are likely to make senior talent ever scarcer in the years to come.

The article "Mastering the art of foreign staffing" based on the research by Sebastian Reiche and Anne-Wil Harzing (of the Instituto de Estudios Superiores de la Empresa at the University of Navarra in Spain.) highlights several influential trends in multinational staffing.

1. PCN (Parent-country nationals) are employees whose nationality is the same as that of the firm headquarters — for example, a German employee of a German company who is working at a Chinese subsidiary.

2. HCN (Host-country nationals) are employees who have the same nationality as the local subsidiary. This could be a Chinese employee working at the Chinese subsidiary of the German company

3. TCN (Third-country nationals) are employees whose nationality is different from that of either the headquarters or the subsidiary office. In the above scenario, this might mean an Indian employee working at the Chinese office of the German company.

Culture eats Strategy for breakfast, it is said! As a person closely working with companies hiring for middle and senior management in India, I have been increasingly noticing that the days of expats being seconded to run operations are passe'.

-Some prefer to hire 'returning Indians' ie people of Indian origin but with international experience in the domain-as they have best of both worlds. The grounding overseas helps empathise with the accepted culture-and the 'roots' perhaps help in looking at the roles for a longer & more effective tenures.

-Some others are pro-actively building the pipeline for 'succession planning', so that the local Indian Managers -can take over in a couple of years, after being closely mentored by the expats deputed-who are seconded from their parent companies.

-Interestingly some companies are increasingly looking at India- not just as a market for consumption, but also as a market place for sourcing global talent- as they groom 'future ready leaders'. -And yes, there are " growing number of “inpatriate” assignments, in which foreign-subsidiary managers are sent to corporate headquarters for a fixed amount of time, reversing the typical expatriate assignment of the past.!!

Harzing also quotes "One future challenge for human-resources departments will be linking international assignments more directly to organisational career paths, capitalising on the experiences and skills developed during transfers."

Well, there is a flipside to it to. With the onus of careers now in the hands of the supply side, I feel every professional now has the world as her/his playground-and make up the mind -of being at the right place at the right time.

I am tempted to start a series of blog posts on the kind of global opportunities that are available across the globe-at the moment. Perhaps -at least in the 29 countries my worldwide network is privy to!! Till next time :)!

Question 9 options:

a) 

Host-country national

b) 

Expatriate

c) 

Inpatriate

d) 

Third-country national

Answer & Explanation

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Which type of international employee is a parent?

Expatriates who are from the country where the company is headquartered are referred to as headquarters expatriates. An expatriate may also be referred to as a parent-country national. Third-country nationals (TCNs). These employees are not from the home country or the host country.

What is a parent country national?

The 'Parent Country National' or 'PCN' is an employee who is working in a different country than his original country of birth. They are also referred to as 'expats' or 'expatriates'.

What are the types of international employees?

There are three types of employees in a multinational firm based on their place of origin — parent country nationals, host country nationals, and third country nationals.

What is the difference between host country national and third country national?

Host Country National – Permanent resident of the country where the operations of the company are located. Third Country National – Permanent Resident of a country other than the parent country and the host country.