Home-Country National
Host-Country National
Third-Country National
Advantages
Greater control of organization
Language barrier is eliminated
The third-country national may be better equipped to bring the international perspective to the business
Managers gain experience in local markets
Possible better understanding of local rules and laws
Costs associated with hiring such as visas may be less expensive than with home-country nationals
Possible greater understanding and implementation of business strategy
Hiring costs such as visas are eliminated
Cultural understanding
Morale builder for employees of host country
Disadvantages
Adapting to foreign environment may be difficult for manager and family, and result in less productivity
Host-country manager may not understand business objectives as well without proper training
Must consider traditional national hostilities
Expatriate may not have cultural sensitivity
May create a perception of “us” versus “them”
The host government and/or local business may resent hiring a third-country national
Language barriers
Can affect motivation of local workers
Cost of visa and hiring factors
What is a host country national?
(HCN) In an international firm, an HCN is a person whose nationality is the same as that of the country in which the company is operating: for example, a UK manager working for a UK-based subsidiary of a Japanese company.
What are the four staffing strategies?
This sample International Recruitment Policy template describes the four global staffing approaches: ethnocentric, polycentric geocentric, regiocentric, and it will help you set up your own international staffing strategy.
What is a host country national example?
Also known as host-country nationals, these employees are hired for jobs in their own country. For example, a United Kingdom citizen who is employed at Coca Cola's U.K. subsidiary is a local national.
What is an advantage of using host country staffing recruitment strategy for an overseas vacancy?
Key Takeaways
One advantage of this type of strategy is easier application of business objectives, although an expatriate may not be culturally versed or well accepted by the host-country employees. In a HOST-COUNTRY STRATEGY, workers are employed within that country to manage the operations of the business.