Hidden Inequalities of Globally Mobile Workforce: A Cross-Cultural and Trust Perspective

Abstract

International migration has gained increasing importance for organizations as they expand globally. At the organizational level, skilled migrants are considered an important part of the global talent pool, contributing to the competitive advantage of multinational organizations (Guo et al., The International Journal of Human Resource Management 26: 1287–1297, 2015). Despite the importance of international migrants for organizations and host countries, the challenges of inequality, both visible and hidden, that this group of individuals might face could affect their employment and development. Research has examined inequality of working conditions to the benefit of expatriates (in comparison to host country nationals’ working conditions) (Oltra et al., Journal of Business Ethics 115: 291–310, 2013); however, an examination of inequalities faced by expatriates is rarer, with some exceptions (e.g. (Ridgway, Hidden inequalities in the workplace: A guide to the current challenges, issues and business solutions. Cham: Palgrave Macmillan, 2018). This chapter discusses how culture and trust can influence perceptions of inequality as experienced by expatriates. Notions of culture and the nature of exchange relationships are used to explore the potential effects of trust perceptions on expatriates’ attitudes and behaviors. For example, what kind of managerial and organizational practices would expatriates identify as trustworthy in terms of addressing potential social exclusion, cross-cultural discrimination and any other anticipated inequalities at the host country? We posit that the more trustworthy equal opportunities and diversity management policies are in the host country and the more a culture is characterized as inclusive, the more inclined expatriates will be in accepting international work opportunities. We follow Howe-Walsh and Schyns (The International Journal of Human Resource Management 21: 260–273, 2010) in arguing that organizations, in order to appear trustworthy, should evaluate whether equal opportunities and diversity management practices address social exclusion and cultural discrimination in the host country, thus enhancing (or hindering) expatriates’ successful employment. Implications for future research are also discussed.