Question: Discuss and critically evaluate different staffing options used by multinational enterprises.

Expert answer

Multinational enterprises (MNEs) often use a variety of staffing options in order to best meet the needs of their businesses. Some common staffing options used by MNEs include using local staff, using expatriates, and using third-party vendors. Each of these options has its own benefits and drawbacks.

Using local staff is often the cheapest and most efficient option for MNEs. Local staff are familiar with the culture and the business environment, and they can often be hired relatively cheaply. However, there can be challenges with using local staff, such as difficulty communicating with them or managing them effectively.

Expatriates can be an effective option for MNEs, as they can provide critical knowledge and skills that local staff may not have. However, expatriates can be expensive to hire and train, and they may not be familiar with the local culture or business environment. Additionally, there can be challenges with integrating expatriates into the local workforce.

Third-party vendors can be a useful option for MNEs, as they can provide specialized skills or services that local staff may not have. However, third-party vendors can be expensive to hire and often require management by the MNE. Additionally, there is always the risk that the quality of work provided by third-party vendors will not meet expectations.

There are a variety of staffing options used by multinational enterprises (MNEs), but the most common are parent country nationals (PCNs) and third country nationals (TCNs). PCNs are employees from the home country of the MNE, while TCNs are employees from other countries.