In the new world of a global workforce and firms’ foci on global talent management, multinational firms are tapping more “third-country” nationals for overseas posts. The increase in operations in emerging markets, the high costs of traditional international assignments, and shortages of needed skills in many markets has led to the search for employees from countries other than the parent country of headquarters or the host country of subsidiaries, employees who are referred to as “third-country” nationals (TCNs). These TCNs often win jobs because they speak several languages (particularly English and the host-country language) and know an industry and or foreign country well. The average number of third-country nationals continues to rise from year to year, according to consultants such as Organization Resources Counselors.

Pioneer Hi-Bred International employs 29 TCNs in key jobs abroad, triple the number five years earlier, partly because they accept difficult living conditions in Africa and the Middle East. Raychem has a dozen such foreigners in top European posts, up from eight a few years ago. “The numbers are going to increase” as Europe’s falling trade barriers ease relocation, suggests Edward Keible, a senior vice-president. A Frenchman runs the company’s Italian subsidiary, a Belgian is a sales manager in France, while a Cuban heads the unit in Spain.

Scott Paper, whose ranks of TCN managers has grown from two to 13 within a couple of years, says it will step up its recruitment of young foreigners “willing to move around Europe or around the Pacific,” says Barbara Rice, their HR chief.

1. A brief summary of the case. What is happening?
2. What are the International Human Resource Management challenges facing the business?
3. What solutions are being considered?
4. What additional actions or recommendations would you have if you were the Head of Human Resource?