Family Impact on Becoming an Shanghai Expat

Shanghai is a critical destination for many expat assignments. The business interests of a significant number of businesses of all sizes from all over the world are tied to what they make or sell in Shanghai. Along with the managers of those businesses, come the families of those managers. For some, it’s a family adventure and for some it’s a trial.

It is not easy moving a family to Shanghai for 3 or more years and making it work. Even with a generous expat package, often there are compromises. The company has certain expectations for sending the manager to Shanghai and can be viewed as either a success or a failure. Depending on the company, the home country of the expat, and assignment, and average failure rate for expat assignments worldwide is between 10 and 20%. In some specific cases, it has been as high as 60%. Failure can mean that the expat returns to their home country before the end of their assignment. It can also mean that they were marginally effective at accomplishing company goals. The cost to the company of a failed assignment can be as high as 4 times the pay of the manager.

Compromises for the family

Compromises for the family are many. Families with children have pull out the school in their home country and find suitable, affordable education once they move. The “trailing” spouse has to give up their job, network of friends, and many activities and rebuild them in the new location. Small things, like access to favorite foods can have a large impact on the stress levels of the parents.

In fact, US based research has shown that the primary causes of failure in overseas assignments have to do with adjustment to a new environment, and less with performance or issues that are directly job related. In over 40% of the instances where assignments have failed, lifestyle and family adjustments are at top of the list. This represent a significant risk the company in terms of cost and significant issue for the expat manager in terms of loss of confidence, family stress and issues, and limitation of career prospects.

Spousal support

Spousal support is a key factor. Often, the spouse of the expat manager leaves his/her support network of friends and family, often leaves a job, and is challenged by culture shock and boredom. For the assignment to be successful, these issues need to be addressed and prepared for by both the expat and the HR staff.

Adjustment to life in Shanghai

Adjustment to life in Shanghai is not without its issues. Adjusting to a new language, culture (both in and out of the office), new relationships, and lifestyle all generate stress. However, Shanghai has a very active international expat community and with the right attitude and sense of adventure, the experience of being here has its advantages. There are many opportunities to meet people and get involved with the local scene. Here are a few.

Shanghai is full of networking events and groups. These might be a starting place for building support networks and friendships outside of the work environment. They also can open the door to activities and help for the spouse and family of the relocated manager and allow them to make the most of their adventure in Shanghai.