Treatment of employees posted in new territories

The need for expansion and growth is universal. In addition to ordinary humans, even corporations want to grow in life. But when a company wants to expand into a new territory, it has to send people into that region first.

For such people who are sent out to make new discoveries the company must take full responsibility of them in the unexplored region. The employee should be provided some additional benefits like free or subsidized accommodation, company conveyance and few other reimbursable expense allowances depending on his position and responsibilities.

When a company sets its sights on a new region, it has to send one of the trusted seniors to go and settle there for sometime. The cost of the same, along with their safety has to be ensured.

This can be done by doing in depth research of the territory and demographics. Whenever a company wants to expand whether for new market or for acquiring a firm or even making a strategic alliance a lot of research needs to be done. Reading, getting the information from industrial reports and consultants has to be carried out. Getting a local person from that region can give further insights and this will help to lay a basic foundation for expansion.

Based on the information gathered send, one or more members from senior management to that region to do a cross verification of the facts and meeting lots of people from various backgrounds to understand the region, and its culture, better. ‘Eyes’ and ‘ears’ are the basic tools for this and the seniors can prepare a document of their study, return back and present the same to the parent company.

If the venture seems profitable, the organization must move in phases. This can be observed in the current scenario, the systematic approach of various multinationals making their entry into India in phases. Usually, a single person will move in first and stay in the region for about a year or two. During this phase, the firm may even handle the entire costs of living and security of the person. Some firms even move entire families of their representatives taking care of the children’s education, vacations and entertainment.

After gaining a year or two of experience one will get a grip of the new region. Then the company can move into a full operations mode and succeed in that place. It is not about conquering a new territory and a company also has to be socially responsible for the region. The company must make sure they also ‘contribute’ to the new place instead of just making and taking profits from there.