As we were looking for more ways to help our clients make the right start, we came across research studies on the costs of international relocation failure and thought, “This deserves more attention than it gets.” Hence, we’re sharing it with you.
One study says the direct costs per failed assignment range from USD 250,000 to USD 1 million. Another paper’s estimates push that figure as high as USD 2.5 million when you factor in repatriation, lost business opportunities, and the cost of recruiting and deploying a replacement.
It’s costly, yes. The unfortunate part is that the invoice is only part of the story. The costs tied to people, relationships, and trust don’t show up on a spreadsheet, and they can be the most damaging of all.
The Cost to the Assignee
Some think relocation failure means pretermination of the assignment and early repatriation. It’s true, but it’s not the only definition. Some employees stay for the full duration of their assignment and still consider the assignment a failure.
Why? A study says it’s because the entire time they were in the host country, they experienced stress, anxiety, cultural disorientation, and a persistent sense of being unsupported. Consequently, they were distracted and couldn’t perform well on their jobs.
And then comes repatriation. The same research finds that expatriates are not adequately informed about what comes after the assignment, including their next role, remuneration, and the support they can expect during the transition. That uncertainty affects performance in the final stretch of the assignment.
The Cost to the Family
Family maladjustment remains one of the leading drivers of early termination and underperformance. This isn’t surprising when you consider what families experience upon relocation: securing housing, managing gaps in spousal employment, and building a life from scratch in an unfamiliar place.
Even when the family stays home, the cost remains. Research on split expatriate families shows that the spouse left behind ends up carrying more than their fair share in running the household alone, raising the kids without a partner present, and dealing with the strain of a long-distance relationship.
And when a spouse is struggling at home, the expatriate feels distracted and guilty. This results in reduced engagement at work.
The Organisational Cost Beyond the Balance Sheet
The costs of a failed assignment extend beyond the employees and their families. They affect the organisation and shape how future assignments are staffed.
Assignees who have a poor experience rarely volunteer for another international assignment; some even resign within a year of returning, says a study. And when colleagues watch coworkers return stressed and unhappy, it also affects their perception of the company and desire to be sent overseas. Over time, organisations that don’t actively manage the international assignee experience find themselves with a shrinking pool of people willing to go at all.
Also, when experienced repatriates resign, the company loses not only the person but also access to the knowledge they gained while working abroad—insights that are often difficult, if not impossible, to replace.
A Better Way to Measure
None of this is an argument for unlimited spending. It’s an argument for measuring both monetary and non-monetary costs of assignment failure and for recognising that relatively straightforward investments in support can prevent far greater costs.
Full family support, continuous mentoring throughout the assignment, and deliberate repatriation planning may increase expenses but make a big difference in the employee experience. Compared with the full price of failure—the visible and invisible costs combined—they are among the most cost-effective interventions available.
How Personnel Relocations Can Help
Personnel Relocations understands the hidden costs of relocation failure because we’ve lived them ourselves. Every member of our consultant team has moved internationally. We’ve been in your employees’ shoes and know firsthand the challenges of moving from the anxiety, disorientation, and family issues that come with starting over.
That personal experience is what drives us to do what we do. We know that beyond processing relocations, we’re supporting people through a huge life transition.
