Host Country Nationals - Definition & Meaning
What is Host Country Nationals?
A host-country national (HCN) is an employee who is a citizen of a country in which an organization's branch or plant is located, but the organization is headquartered in another country.
Who Makes Up the Labour Market?
• Host-country nationals
• Expatriates
• Parent-country nationals
• Third-country nationals
When organizations operations are spread globally, their employees are most likely to be from different country i.e. citizens of more than one country. Employees may be from the organizations parent country, or host country, or even a third country
The extent or level to which organizations fix the ratios, which is parent-country, host-country, or third-country nationals varies.
Host-country national –
• employee who is a citizen of the country, other than parent country, in which an organization operates a facility.
• Citizens of the country where they live & work
• They are familiar with the culture and know the language
• They can often do a better job than home-country nationals
• They are less expensive than home-country personnel
• Host-country governments often prefer use of host-country nationals and some require it
• Hiring them is good public relations
• U. S. companies tend to rely heavily on host-country nationals
Recruiting Host-country Nationals
• Should not assume that recruiting approaches that worked in parent company will be effective in recruiting host-country nationals
• Example: Error that many recruiters make while recruiting is assuming and believing that cultures is same or similar in all countries of Europe
Advantages
• No problems with language and culture.
• Reduced hiring costs.
• No work permits required.
• Continuity of management improves since home Country Nationals stay longer in positions.
• Govt. policy may force hiring of Home Country Nationals.
• Promotional opportunities not limited - so higher morale among Home Country Nationals.
Disadvantages
• Headquarter may have less control over operations.
• Home Country Nationals may still have limited career opportunities outside the subsidiary.
• Hiring Home country Nationals limits opportunities for others to gain overseas experience.
• Hiring Home Country Nationals may encourage a federation of disintegrated national units rather than one integrated global unit.
Hence, this concludes the definition of Host Country Nationals along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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