Managing psychosocial

risks on expatriation in Health

2013
the oil and gas industry
The global oil and gas industry association for environmental and social issues

5th Floor, 209–215 Blackfriars Road, London SE1 8NL, United Kingdom
Telephone: +44 (0)20 7633 2388 Facsimile: +44 (0)20 7633 2389
E-mail: [email protected] Internet: www.ipieca.org

International Association of Oil & Gas Producers

London office
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Telephone: +44 (0)20 7633 0272 Facsimile: +44 (0)20 7633 2350
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OGP Report Number 495

© OGP/IPIECA 2013 All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in

any form or by any means, electronic, mechanical, photocopying, recording or otherwise,
without the prior consent of IPIECA.
Managing psychosocial
risks on expatriation in
the oil and gas industry

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 IPIECA • OGP MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Contents
Executive summary 1 Prevention strategies 14
Individual factors 14
Introduction 3 Physical health 14
Why do we need a guideline for managing 3 Psychological resilience 14
psychosocial risks?
Relationships 15
The business case 4
Cultural factors 15
Informing about new cultural practices 15
Defining psychosocial hazards and risks 5
Improving family integration 15

Who are expatriates? 6 Social conditions and country infrastructure 15

Extreme environmental conditions 16
Definition and characteristics 6
Organizational factors 16
Numbers 7
Adjustment to the new function/role 16
Gender and age 7
Adjustment to the work environment 16
Reasons for expatriation 8
(physical and social aspects)
Business reasons 8
Expatriate reasons 8 Intervention strategies 17
The principles of handling a psychological injury case 17
Potential consequences of expatriation 9
Immediate actions 17
Impact of psychosocial risks on expatriate health 9
Rehabilitation phase 18
Psychological and social health effects 9
Reintegration phase 18
Physiological and physical health effects 10
Follow-up 18
Impact of psychosocial risks on expatriate 10
job performance
Conclusion—managing psychosocial risks 19
Potential triggers of
psychosocial consequences 11 Annex: Case studies 20

Individual factors 11 1. Inability to perform the task due to the 20

challenges of a new environment
Physical health 11
2. Job overload 20
Psychological resilience 11
3. Stress due to misfit 20
Relationships 11
4. The impact of sudden change in the 21
Cultural factors 12
sociocultural environment
Unfamiliar cultural practices 12
5. The risk of expatriation when children 21
Poor family integration 12 are unsupervised
Social conditions and country infrastructure 12
Extreme environmental conditions 12 References and further reading 22
Organizational factors 13
Adjustment to the new function/role 13
Adjustment to the work environment 13
(physical and social aspects)

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Executive summary
Expatriation can present complex psychosocial ● job content;
issues and risks for both employees and ● workload and workplace;
employers in the oil and gas industry. Failure to ● work schedule;
understand and address them can have an ● control;
adverse impact on the effectiveness and well- ● environment and equipment;
being of expatriate employees, their families, ● organizational culture and function;
and the operations and businesses in which they ● interpersonal relationships at work;
work. This report outlines an overarching risk- ● role in organization;
based management strategy that identifies both ● career development; and
potential issues and related risks, and actions for ● home-work interface.
prevention and intervention. However, each
company should implement programmes that The report discusses the consequences relating
meet their specific needs and risks based on to psychosocial risks. These may be related to
geographical, organizational and cultural depression, distress, burnout, cognitive
characteristics. (thinking) decision making and attention. Such
issues are often associated with a state of
To mitigate any psychosocial risks, employers physical, emotional and mental exhaustion. Both
and their employees and accompanying work and non-work circumstances (for example,
families need to be both aware of, and non-work referring to financial strain or work-
prepared for, changes associated with family conflict) can cause, and be significant in,
expatriate work and life. Expatriates tend to the development in such exhaustion, which is
endure higher levels of pressure arising from referred to as ‘burnout’. Exposure to psychosocial
the need to adapt to new working and risks resulting in burnout have been linked to
domestic environments, often in completely unhealthy behaviour, such as excessive drinking
new cultural contexts. and smoking, and also to physical issues such as
heart problems, musculoskeletal disorders,
The report also examines motivations for obesity and headaches. All such health effects
expatriate employment because these may have strain work and home relationships, and hinder
an impact on the success of an assignment. adaptation and performance.
Although usually associated with career
advancement, opportunity and financial gain, or Expatriate performance will often reflect cross-
the desire for travel and exploration, expatriation sociocultural adjustment, i.e. expatriates who
may also be seen as a means to overcome adjust well to a new and foreign environment
negative issues, such as boredom or usually accomplish tasks more efficiently than
unhappiness at home. The reasons for those who adjust poorly. For this reason,
expatriation should therefore be investigated adequate preparation is needed to enable
prior to transfer. effective employee adjustment, and this should
be extended to include accompanying partners
The report outlines broad categories of or children. Adjustments include those relating
psychosocial hazards that expatriates may to cultural practices, work environment, social
encounter in the workplace and beyond, and and environmental conditions and country
provides a range of strategies designed to infrastructure. These factors should be identified
address the issues encountered in these and assessed against international standards
contexts. Areas examined include: prior to expatriation. Providing expatriates and

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 IPIECA • OGP

their families with background information, such ● once reported, any case is handled efficiently
as access to medical provision, schooling and job and quickly (unless any delay is validated),
opportunities for spouses, is recognized to be an and should involve occupational health
important preventive action. expertise;
● human resources or an occupational health
Establishing an adequate intervention strategy is doctor investigates the case to determine the
instrumental in responding professionally in the facts, while supporting the employee and
event of an employee suffering from a their manager(s);
psychological injury. The approach taken to ● case follow-up and monitoring are
manage such a strategy will depend on the appropriate and consistent;
organizational structure of the company or its ● a reintegration-to-work process be in place
culture, but would usually consist of three main before an employee returns to work; and
steps: 1) immediate actions; 2) the rehabilitation ● all personal data is stored and treated with
phase; and 3) the reintegration phase. It is sensitivity and confidentiality.
recommended that:

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Introduction

Why do we need a guideline for

managing psychosocial risks?

Expatriation is common practice in the oil and

gas industry as a result of increasing
globalization, changing nature of work and
significant demographic changes within the
industry. In order to be on the forefront in a
competitive market it is imperative for large
multinational organizations to ensure both good
and effective global staffing and expatriate
assignments. In general, expatriation is
recognized as a development opportunity for
both the employee and the organization, and in
many cases provides a positive career experience of stress can cause suboptimal
experience. However, when moving to a foreign performance that may lead to accidents.
country, expatriates and their families are often Psychosocial risks for expatriates include the
faced with a variety of new and challenging cultural differences that may be reflected in
work-related circumstances, some of which may areas such as preferred leadership styles, work
be linked to psychosocial risks, e.g. work-related motivation, willingness to take risk, gender roles
stressors and difficulties associated with cultural and safety-related attitudes.
adjustment for families.
Literature and experience also highlight the high
Psychosocial risks that are linked to the financial cost associated with expatriate
experience of work-related stress have been assignments, particularly if the assignment fails.
reported to be the second most prevalent work- It is generally estimated that the cost associated
related health problem, affecting 22% of workers with international assignments is between three
in the European Union. More than 40 million and five times an assignee’s home salary per
people and almost one in three of Europe’s annum.
workers report that they are affected by stress at
work (EU-OSHA, 2009; WHO, 2010). As such, Given the serious economic and personal costs
there is strong evidence of an association of psychosocial risks and stress, there have been
between exposure to psychosocial risks and an many reports on their causes and outcomes,
array of health outcomes at both the individual especially in terms of the impact of life events on
and organizational levels. From a broader stress levels. Numerous studies suggest that
perspective, psychosocial risks are a major stressful life events can cause physical and
occupational health concern and can have grave psychological illnesses as well as decreased
financial consequences for society and all types employee performance. Several types of work-
of enterprises, including small, medium and related events, such as changes in the balance of
large companies. work/family roles, taking a new job,
discrimination, stereotyping, and social isolation
In the oil and gas industry, psychosocial hazards and job changes, have been studied and
can cause ill health for individuals or groups deemed to be potentially stressful life events. A
exposed to poor working conditions over the life event is considered to be stressful if ‘it causes
longer term. Furthermore, a reduction in changes in, and demands readjustment of, an
physical and psychological health through the average person’s normal routine’ (Kobasa, 1979).

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 IPIECA • OGP

To ensure that all international assignees are attract staff, and the creation of an environment
managed according to best practices, it is for innovation and productivity linked to a
important to prevent work-related stress and ill- positive financial outcome.
health due to psychosocial risks. By promoting
health and well-being for expatriates and their Psychosocial risk management is still a relatively
families, companies can have a positive impact new concept, and data and research are still
on the expatriate’s performance. As such, issues being developed. This document should be
that pertain to expatriates specifically should be regarded as a voice in the discussion of this
addressed through a holistic and comprehensive complex issue; it presents the social,
intervention framework. In recent years, there psychological, organizational, industry-specific
have been a number of initiatives and guidance and political/cultural aspects of relevance,
that focus on the management of psychosocial together with a new way of viewing the health
risks and their impacts on the health and safety concerns associated with expatriation in the oil
of employees. Some examples of this are the and gas industry.
World Health Organization (WHO) ‘Global
Framework for Healthy Workplaces’ and the It is generally recognized that the effective
British Standards Institution (BSI) Guidance on the management of psychosocial risks is key to
management of psychosocial risks in the workplace improving absenteeism, productivity and
(BSI Standard PAS 1010, 2011). organizational effectiveness (EU-OSHA, 2012a);
employee well-being, creativity and innovation
are, in turn, recognized as being crucial for the
The business case effective performance of individuals holding
technical positions in the oil and gas industry.
Besides managing the risks associated with The management of psychosocial risks
expatriation on a personal level, there is a clear associated with expatriation will therefore often
business case for organizations to manage be part of a global human capital programme
psychosocial risks in order to ensure targeting organizational effectiveness, and will
organizational effectiveness; this is characterized have a strong direct link to the strategy of the
by optimal job performance, ability to retain and company.

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Defining psychosocial hazards and risks

Psychosocial risk is the likelihood that ‘those aspects of work design and the
psychosocial factors will have a hazardous organization and management of work, and
influence on employees’ health through their their social and environmental context, that have
perceptions and experience and the severity of the potential for causing psychological, social or
ill health that can be caused by exposure to physical harm’ (Cox & Griffiths, 1995).
them (BSI, 2011).
There is reasonable consensus in the literature
Psychosocial hazards as a concept was on the nature of psychosocial hazards; these can
introduced by the International Labour Office be categorized in ten broad categories as shown
(ILO) in 1986. Psychosocial hazards are defined as in Table 1.

Table 1 Examples of psychosocial hazards

Category Description
Job content • Lack of variety or short work cycles
• Perception of fragmented or meaningless work
• Under-use of skills
• High uncertainty
• Continuous exposure to people through work
Workload and • Work overload or under load
pace of work - Machine pacing
- High levels of time pressure
- Continually subject to deadlines
Work schedule • Shift working:
- Night shifts
- Inflexible work schedules
- Unpredictable, long or unsociable hours
Control • Low participation in decision making
• Lack of control over workload
- Shift working
Environment and • Inadequate equipment availability
equipment • Suitability or maintenance
• Poor environmental conditions such as lack of space, poor lighting, excessive noise
Organizational • Poor communication
culture and function • Low levels of support for problem solving and personal development
• Lack of definition of, or agreement on, organizational objectives
Interpersonal • Social or physical isolation
relationships at work - Lack of social support
• Poor relationships with superiors
- Interpersonal conflict
Role in organization • Role ambiguity
• Role conflict, and responsibility for people
Career development • Career stagnation and uncertainty
Adapted from Leka, Griffiths & Cox, 2003.

- Under promotion or over promotion

- Poor pay
- Job insecurity
• Low social value to work
Home-work interface • Conflicting demands of work and home
- Low support at home
- Dual career problems

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 IPIECA • OGP

It is essential to note that psychosocial hazards health as well as on social and psychological
do not pose risks solely to psychological health; well-being. Furthermore, significant interactions
both physical and psychosocial hazards have the can occur between hazards, and also between
potential for detrimental affects on physical their effects on health.

Who are expatriates?

Definition and characteristics It is not uncommon for long-term international

assignees to be accompanied by their partners
The term ‘expatriate’ has no universally agreed and children. This is much less common with
definition. In some cases it may be used to refer short-term assignees.
to anyone living outside his or her home
country, including workers (and their families), In the oil and gas sector, rotational work is the
retired people, economic migrants and refugees. norm for the ‘front-line worker’, with workers
In the context of this guide, the term is used to refer travelling to and from the work location. A
to those sent to work abroad for a multinational rotator is defined as a worker who goes on duty
corporation to carry out a required job. at the work location for a defined period of time,
e.g. two weeks or a month, and then goes off
Indeed, to avoid confusion, many companies duty completely for a defined period. Although
deliberately avoid the term ‘expatriate’ and refer work shifts of two weeks duration are usual in
to such individuals as ‘international assignees’. many ‘domestic’ offshore environments, a longer
The term also, though not inevitably, carries the period of four weeks is more common in
suggestion of some duration to the assignment. international locations due to the costs and
An expatriate or international assignee would logistical challenges. In some cases, a more
usually be regarded as being abroad for at least arduous rotation of six weeks on location and
six months (Jones, 2000), and thus be two weeks off may be encountered.
distinguished from a ‘business traveller’ (which
implies frequent business trips of a week or two) While the most straightforward rotation has the
and a ‘short-term assignee’ who works on a worker returning ‘home’ in between work
specific task or project for two or three months. periods, it is important to remember that the off-
However, this latter distinction is somewhat duty period may not be spent at home at all, and
artificial. ‘home’ may not necessarily be the individual’s
country of origin or country of employment. For
example, a US citizen may be paid by a British
company, work in Kazakhstan, but may actually
live in Thailand for most of his or her time off.

The management of occupational health issues,

including psychological support, can therefore
be particularly challenging and require global
alignment of company policies, practices and
standards.

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

A further distinction is that of the self-initiated Table 2 Who are expatriates?

expatriate or locally employed non-national
Category Description
employee. This refers to someone who is already
living in a foreign country and who works locally Traditional expatriate • Hired in home country.
(international assignee) • Works in overseas location for 1–3 years.
for an international company rather than having • Often accompanied by dependant(s).
been sent there by the company. • Usually has ‘home’ contract with benefits.
Rotator • Leaves home country at regular intervals to
An increasing phenomenon in some business work abroad with breaks at home,
e.g. 4 weeks on, 4 weeks off; 6 on, 2 off.
sectors is that of long-distance commuting,
• Usually works a 7-day week.
where the employee travels to and from work,
Short-term assignee Sent from home country for short duration of
e.g. on a weekly or ten-day basis, returning 1–6 months.
home for weekends. This is often referred to as
International commuter Long-distance commuting, where the employee
international commuting. travels to and from work on a weekly or 10-day
basis, returning home for weekends
As mentioned above, this guideline relates to
those professionals who are sent abroad to
undertake a specific job, because it is these The largest jump in expatriate numbers took
individuals who represent the expatriate group place between 1985 and 1990, but the upward
that has the greatest impact on organizational trend has continued steadily, with the economic
effectiveness, strategic impact and costs. downturn and incidents such as the attack on
the World Trade Centre in 2001 having only
minor temporary impacts on this trend
Numbers (Mercer, 2012; GMAC, 2005).

While the definition of ‘expatriate’ is not always

clear cut, the data on actual numbers of expatriate Gender and age
workers are even more vague. The United Nations
has indicated that there were some 200 million Studies from the 1980s indicate that a very low
‘expatriates’ in 2010, but this figure includes all percentage of employed expatriates (about 3%)
those living overseas, including political and were females (Adler, 1984). The emphasis here is
economic refugees (UN 2009). Individual datasets on employed, as women have commonly
are often imprecise or out of date, and tend to accompanied their working male partners in a
refer to non-specialized (‘immigrant’) workers. It non-working role. More recent studies indicate
has been estimated that almost 10% of the that the percentage of working women
population in many developed countries are expatriates is increasing, but that the great
expatriates and migrants (UN, 2011). The highest majority of expatriates (80–90%) remain men.
percentages are found in Middle Eastern countries,
where the percentage of expatriate workers may Selmer and Leung have reviewed published work
outnumber the local indigenous population; for which highlights interesting differences between
example, 70% of the United Arab Emirates’ male and female expatriates, including age,
population are expatriates. Luxembourg and marital status, and the number and duration of
Switzerland have the highest proportion in assignments (Selmer and Leung, 2003). Expatriate
Europe, with 30% and 20% of their populations men tended to be older (averaging 42.8 vs. 37
being expatriates, respectively (Dumont and years for women) and much more likely to be
Lemaitre 2005). The USA has the greatest absolute married (75–90% vs 40–50% for women). Women
number worldwide, with 38 million expatriates. were deemed more likely to be on their first

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 IPIECA • OGP

assignment and to have been abroad for a shorter Some reasons are more likely to lead to a
time compared to men, although these data were successful assignment than others. For example,
incomplete and based on relatively small samples. an expatriate who accepts an assignment
because of boredom or unhappiness at home is
hardly in the best frame of mind to succeed in a
Reasons for expatriation challenging location.

Employers will have specific business reasons for Most importantly, the cost of an expatriate
setting up expatriate assignments. Employee’s assignment—especially when the assignee is
reasons for working overseas may be much more accompanied by his or her family—will be
variable and, sometimes, less clearly thought out. extremely high. If the same job can be
performed just as well by someone on a local
contract, this option is becoming increasingly
Business reasons
attractive. The risk of failure associated with
Companies may assign expatriate workers for a (high cost) expatriate postings makes them a
variety of reasons, including: high-risk strategy at the best of times. In some
● a lack of local technical competence or business fields, the expectations and demands
experience at the host location; of expatriates have increased, particularly with
● concerns over managerial ability at the host regard to remuneration and benefits. This
location; pressure is increased by the scarcity of some
● a need for cultural/language compatibility at technical specialists who can, to some extent,
the location/headquarters; and demand their own conditions. A downside of
● a desire to develop staff in different work this lack of choice in manpower is that
environments and cultures. companies may be increasingly tempted to
expatriate people who would not necessarily be
their first choice of candidates for such
Expatriate reasons demanding posts.
Reasons why employees may choose to work
overseas include: While the long-term development of local,
● an opportunity to travel and experience a national, employees is beneficial it may, in the
new country; short term, lead to smaller expatriate
● career advancement—overseas experience is communities—with reduced community
often highly valued by the company and may support, fewer family assignments (with workers
offer more interesting/challenging career increasingly separated from partner and
opportunities; children), and increased insecurity for ‘career’
● remuneration—there is usually a substantial expatriates who may have shorter assignments
financial uplift for expatriates, in addition to and less assurance of a follow-up posting.
other fringe benefits (e.g. quality of housing,
free private schooling, health insurance etc.);
● a personal connection with the location (e.g.

through a partner or family); and

● a way to deal with maladjustment to the

current job or environment.

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Potential consequences of expatriation

This section discusses the potential individual Non-work related circumstances, e.g. financial
and organizational consequences of exposure to strain or work-family conflict, can be of
psychosocial risks associated with expatriation, significance in the development of burnout.
when these risks are not optimally managed.
Burnout is a problem that is specific to the work
context; in contrast, depression tends to pervade
Impact of psychosocial risks on every domain of a person’s life.
expatriate health
Psychosocial risks have been found to be
There is substantial scientific evidence to associated with the risk of depression among
indicate a clear relationship between expatriates, resulting in poor health functioning,
psychosocial risks and an expatriates’ physical, anxiety, distress, fatigue and job dissatisfaction.
mental and social health: a range of different
illnesses, such as depression, cardiovascular Psychosocial risks, work-related stress, job strain
diseases and musculoskeletal diseases may and associated depression represent a
result (EU-OSHA, 2012b). substantial, preventable and inequitably
distributed public health problem.
Psychosocial risks can alter the way a person
feels, thinks and behaves, and can also produce Furthermore, post-traumatic stress disorder
changes in their physiological function. Under (PTSD) must be considered as a potential
some circumstances this may translate into poor psychological reaction following a major
performance at work, psychological and social incident. This applies not only to expatriates but
problems and poor physical health. to the entire workforce in the oil and gas
industry, and should be addressed, for example,
There is a close overlap between fatigue, through the provision of critical incident support
depression, anxiety, stress and burnout. Mental and planned processes involving the
health difficulties are now one of the three occupational health, and health and safety
leading causes of disability, along with departments.
cardiovascular disease and musculoskeletal
injuries (ILO, 2000).

Psychological and social health effects

Psychosocial risks can have a detrimental impact
on affective (mood) depression, distress, burnout
and cognitive (thinking) decision making, and
attention.

Although there is no universally accepted

definition of burnout, most researchers define it
as a state of physical, emotional and mental
exhaustion that results from long-lasting
workload exceeding an individual’s capacity.
Burnout is the result of chronic stress (at the
workplace) which has not been successfully
dealt with.

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 IPIECA • OGP

Exposure to psychosocial risks among psychosocial work characteristics are associated

expatriates has been associated with a variety of with lower back pain, upper limb disorder and
unhealthy lifestyle factors such as physical neck pain.
inactivity (overweight), excessive drinking
(alcohol dependence) and smoking, poor diet Psychosocial work stress is recognized to be an
and poor sleep (insomnia). Poor psychosocial independent predictor of type 2 diabetes
working conditions can contribute to an increase (EU-OSHA, 2012b).
in detrimental health behaviours, with a possible
direct or indirect impact on the development or
exacerbation of physical health conditions (e.g. Impact of psychosocial risks on
coronary heart disease) and psychological health expatriate job performance
(e.g. depression).
According to EU-OSHA (2012b), the three most
Expatriates and their family members may common criteria for evaluating expatriate
experience a culture shock when they return success include completion of the foreign
home, as they readjust to life in their home assignment, cross-sociocultural adaptation, and
country while assimilating the things they performance of the foreign assignment. Cross-
enjoyed and learned abroad. This process of sociocultural adjustment refers to the ability of
‘reintegration’ into society can also carry the risk the individual to emotionally manage the shift
of triggering underlying psychological from one culture to another. Expatriate
vulnerabilities. performance is assessed by evaluating technical
performance, organizational commitment,
motivation and managerial performance.
Physiological and physical health effects
Increasing evidence indicates that the most Expatriates who report a greater capacity for
common physical effects related to psychosocial cross-sociocultural adjustment will have less
risk exposure are hypertension, coronary heart desire to terminate their assignments than
diseases, musculoskeletal disorders, gastro- expatriates with a lower capacity for adjustment.
intestinal disorders, peptic ulcers, ulcerative
colitis, thyroid disorders, diabetes, obesity, skin Performance is also dependent on the
diseases, headaches and migraine. expatriate’s capacity for cross-sociocultural
adjustment. Psychosocial workplace strain will
Negative emotional states (e.g. depression, anger have a negative impact on the expatriate’s ability
and hostility, and anxiety), chronic and acute to adjust, both at work and in general.
psychosocial stressors, and social ties including
social support and social conflict, are associated It is therefore likely that expatriates who are
with increased risk of cardiovascular morbidity better adjusted to the foreign environment will
and mortality. Evidence shows that the be able to accomplish their tasks more efficiently.
relationship between work-related psychosocial
factors and the development of ischaemic heart Preparing employees for the cross-sociocultural
disease (IHD) has been increasing. shift is key to managing psychosocial risks, and is
discussed in detail in the section on Prevention
Furthermore, exposure to physical and strategies on pages 14–16. However, the personal
psychosocial hazards in combination has a dispositions of the individual and the unique
greater impact on musculoskeletal disorders environmental circumstances in which they are
than either factor alone. Both physical and placed will also play an important role.

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Potential triggers of psychosocial consequences

Due to the nature of psychosocial risks it is ability to cope with stressful situations are
important to get an understanding of the potential triggers of negative reactions and
potential triggers. These fall into the following dysfunction in a new environment.
three categories:
1. Individual factors The experiences associated with expatriation,
2. Cultural factors such as moving to a different country, and
3. Organizational factors. changes in climate, culture, job, family structure
and language can, alone or in combination,
constitute a life-changing event—i.e. an event
Individual factors which alters a person’s life or circumstances in a
substantial way. Such events can potentially
Individual factors include both mental and evolve into triggers of underlying mental
physical aspects of the individual, as described vulnerability, e.g. depression or anxiety.
below. However, the risk is difficult to quantify as it
depends on the level of psychological resilience
of the individual.
Physical health
General poor physical health, or untreated
Relationships
chronic diseases or other physical aspects (e.g.
lifestyle-related issues) have the potential to Single expatriates travelling to remote locations
trigger psychological reactions. For example, an are potentially more at risk since they will not
individual with diabetes may find the disease have the same level of support in terms of daily
becomes harder to control after moving to a contact with family members. However, as
new country with different food and eating described above, the individual’s level of
habits. It is also well recognized that the physical psychological resilience plays an important
condition of a person has an impact on the factor here as well. (See also Poor family
psychological state of that individual. integration, overleaf.)

Psychological resilience
The psychological resilience of an individual is
an important factor influencing their
psychological reaction and ability to cope in
difficult situations. Resilience is the ability to
bounce back in difficult situations, and to be
adaptive in times of change, e.g. by
demonstrating flexible behaviour. This does not
mean that the individual does not experience
distress or difficulties; however, individuals with
high levels of resilience have coping strategies
that will decrease the likelihood of experiencing
severe psychological symptoms or being
diagnosed with psychiatric disorders. A higher
level of psychological resilience has a protective
effect on these psychiatric disorders. On the
other hand, low levels of resilience and a lack of

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 IPIECA • OGP

Cultural factors The well-being of an expatriate worker’s partner

will naturally be of high importance to the
A variety of cultural factors relating to the new expatriate and can have an impact on the
environment, either alone or in combination, success of the expatriation. It can be as
can trigger reactions in an individual as challenging for the partner as for the expatriate
described below. to adjust to a new environment and culture,
especially if the new culture differs markedly
from the culture of origin in terms of gender
Unfamiliar cultural practices roles, habits, work culture, etc.
Unfamiliar cultural practices can act as potential
triggers. For example, differences in gender roles An expatriate’s partner may not necessarily have
can be an issue, and it can be difficult to a job in the country of assignment, and may
integrate into a local community which has few therefore have no natural way of integrating into
other international citizens. Language is another the community. This presents a risk for the
important factor, both in the workplace and in ‘travelling spouse’ of feeling isolated or alone. The
society in general. These factors can be stressful psychological impact on the partner will most
and may, for example, activate feelings of likely cascade to the expatriate, and may have a
loneliness, posing a risk of depression. potentially negative impact on the relationship.
Thus the relationship itself, and not just the well-
being of the individuals involved, may suffer from
Poor family integration exposure to the new circumstances.
If the expatriate is accompanied by his or her
family, the family’s ability to integrate into the Returning from an expatriation can also trigger a
new society is a key factor influencing successful potential psychosocial reaction. The process of
expatriation. (See also the paragraph on readjustment to life in their home country, as
Relationships on the previous page.) they reflect on the things they enjoyed and
learned abroad, carries the risk of triggering
Dysfunction within the family is a potential underlying psychological vulnerabilities.
trigger for psychological reactions and is one of
the most common reasons for early return, often Social conditions and country
more than dysfunction in the employee infrastructure
him/herself.
The limited infrastructure in a foreign country,
and the quality of hospitals, schools and housing
facilities together with security concerns and
hardship factors, can all function as potential
triggers of stress.

Extreme environmental conditions

Employees mobilized to locations which have an
extreme or markedly different climate to their
country of origin may find this experience
stressful, particularly in remote or isolated
locations such as the Arctic.

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Organizational factors Adjustment to the work environment

(physical and social aspects)
Organizational factors include poor Both the physical and social aspects of the new
communication, low levels of support for working environment should be considered as
problem solving and personal development, potential triggers. For example, differences in
weak management, and lack of definition of, or dress code, the main language used at work, a
agreement on, organizational objectives. These move to an open office, offshore visits, etc. could
important psychosocial factors pose a risk of all fall into this category.
triggering underlying vulnerabilities within the
individual.

Adjustment to the new function/role

It should not be forgotten that expatriation also
involves the usual challenges associated with job
changes in general, i.e. adapting to a new role,
new tasks, new manager and new colleagues,
and perhaps even a new location. The combined
effect of these challenges with those of moving
to an unfamiliar country and working
environment may increase the potential for
triggering a psychological reaction.

13
 IPIECA • OGP

Prevention strategies
Psychosocial hazards are important in the oil and this document are based on an industry
gas industry and need to be managed effectively. comparison designed to identify good practice
Minimizing these hazards as much as possible is amongst 12 oil and gas companies.
essential to avoid their impact on an individual’s
health, well-being and working capacity, not to The prevention strategies will target the different
mention the considerable personal and financial triggers as described below.
cost involved in an assignment.

Prevention strategies aim to avert, or at least Individual factors

reduce, psychosocial risks at different stages of
the expatriation. They provide a framework to Individual factors are naturally the most difficult
develop a preventive policy, from the selection for a company to manage.
of candidates through to the end of expatriation
(i.e. the expatriate’s return to his or her home
Physical health
country, or a move to the next assignment). Such
a policy should cover early identification of A medical fitness assessment prior to
situations where additional review or support expatriation should be considered. This should
may be appropriate, the management of focus on physical and mental health status,
psychological injury cases, and the decision to chronic diseases, drug and alcohol abuse and
terminate the expatriation if this should be other physical aspects (e.g. lifestyle-related
deemed necessary. issues). Following the assessment, a medical
fitness certificate for expatriation can be issued.
In order to establish the right prevention and
intervention strategies, it is important to have an
understanding of the potential triggers
Psychological resilience
described in the previous section. The psychological resilience of an employee is
difficult to quantify. Specific coping strategies
Due to the nature of psychosocial risks, it is not should be offered to all employees, with a
feasible to apply a causal linear response particular focus on at-risk groups (e.g. expatriates)
approach as a basis for establishing the required as applicable. This may involve:
control measures. Instead, a multidimensional ● Completion of a health questionnaire: if an

approach must be applied in order to issue is identified, specialist advice on

comprehend as much as possible the unique psychological or psychiatric issues should be
combination of triggers and circumstances that requested.
may come together in a given case. This ● A clinical interview: specialist advice may

document does not attempt to provide a need to be sought, as necessary.

comprehensive analysis of such an approach, ● Consulting with medical specialists: if there is

but suffice to say that every individual is a possibility of substance misuse (e.g. alcohol
different and each individual’s characteristics or drugs), consult the company doctor,
relating to their personal disposition and contract an independent specialist, and await
behaviour must be properly taken into account. their reports.
● Provision of resilience training: this can help

As the debate on specific prevention strategies to to raise awareness of symptoms and coping
manage psychosocial risks for expatriates is still strategies for dealing with work-related
in its infancy, and formal guidance still somewhat demands.
limited, the prevention strategies described in

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Relationships
Social support is recognized as a preventive
factor for psychological dysfunction and mental
health problems. Social support may be
provided from within the expatriate’s family or
by significant others. However, the level of
support in the workplace can also be important
and should be promoted in locations with large
numbers of expatriates, e.g. through employee
committees, social events, spouse communities,
expatriate-focused employee support
programmes (EAPs), the human resources It should be remembered that an accompanying
department, occupational health services, etc. partner may not necessarily have a job lined up
at the new location, and may therefore have no
natural way of integrating into the community.
Cultural factors These issues should be discussed prior to the
expatriation, so that the partner can be assured
Cultural factors relating to the new environment of help coping with the challenges of integration
must be taken into account when preparing for or with finding a job, if required.
expatriation.
Social conditions and country
Informing about new cultural practices infrastructure
As the infrastructures in certain developing
It is recommended that formal sociocultural
countries are limited, companies should conduct
awareness information be provided to the
assessments of these factors prior to expatriation,
expatriate and his or her family members. This
and judge them against international standards.
should include information on religious practices
and the local culture, in case they differ from
Providing the expatriate and his or her family
those in the country of origin.
with detailed information on the infrastructure,
and social conditions in the country of
Improving family integration assignment is an important preventive action.
This should include information on:
For successful expatriation, it is important to
● health risks, medical coverage, etc.;
include the spouse and children in discussions
● the availability of sports and cultural activities;
prior to the move, and also to ensure that they
● hygiene, food and communication;
will be able to get support at the location if
● schooling issues;
needed. A familiarization visit may be helpful in
● opportunities for the spouse to find a job;
some situations.
● relocation service (to provide help with

accommodation, immigration issues, school

If the family chooses to remain in the home
applications, etc.);
country while the employee goes on
● company support for the expatriate’s contact
assignment, a clear description of the frequency
with his or her home country, e.g. by
of holidays, working hours, etc. should be
providing flights home; and
developed for the expatriate.
● flexible contract types, e.g. rotator schemes

(especially for specific offshore positions).

15
 IPIECA • OGP

employer should ensure (e.g. via the human

resources department) that the expatriate has a
clear understanding of his or her responsibilities
in new job position, together with any
opportunities for career development. On arrival,
the line managers/human resources department
should brief the expatriate on the working
environment and cultural specificities.

Adjustment to the work environment

(physical and social aspects)
Expatriation should not be considered as a
burden, but as a challenging experience in the
Extreme environmental conditions normal career development perspective of
If an employee is considering an assignment in a motivated employees in the oil and gas industry.
location where the environmental conditions are Lack of motivation could become a major cause
extreme, it is vital to ensure that they are of failure.
adequately prepared for such an assignment.
Before mobilizing employees to such locations, it Adjustment to both the physical and social
is essential that they are provided with aspects of the work environment should be
awareness training and comprehensive addressed in the orientation procedure
information on the location and its environment. organized by the employer.
Consideration should also be given to
familiarization visits. In some extreme remote In this context, evaluating the desire for
locations (e.g. the Arctic), special expatriation and investigating past history are
qualifications/competencies and fitness-to-work essential, but not sufficient in all cases. Case-by-
assessments for suitability may be required. case consideration, involving the participation of
the human resources department, company
doctor, line manager, etc., will also be required.
Organizational factors
The desire for expatriation may be assessed
Expatriates often hold positions of strategic and using different methods, for example through
technical importance to the company, and failure informal conversations addressing specific
to complete an assignment is likely to have a concerns from the individual, cross-cultural
huge impact, e.g. on the organizational adaptability, and specific themes associated with
effectiveness of the company. The following the region or culture within the country of
prevention strategies should be considered when expatriation. In some companies expatriation is
developing the company’s expatriation policy. thought of as a ‘stretch assignment’ to develop
people within the company, and is aligned with
the need for technical expertise in certain parts
Adjustment to the new function/role of the business.
Clarity on the specific requirements,
expectations and career development
opportunities associated with the expatriation
plays a key role in individual success. The

16
 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Intervention strategies
Establishing an effective intervention strategy is Immediate actions
instrumental in providing a professional
response in the event of an employee suffering A clear procedure regarding the immediate
from a psychiatric disorder, acute stress, anxiety, actions that need to be taken is important to
etc. Such cases are often referred to as establish clarity for both the employee and the
‘psychological injury cases’. The process of organization.
managing these cases can be led by the human
resources department, occupational health Furthermore, a consolidated policy and
advisers or by management, depending on the accompanying procedures should define the
organizational structure of the company or its minimum requirements and competencies for
culture. However, all parties, including the handling psychological injury cases. In some
employee’s GP and other relevant external countries, such policies will be established and
parties, together with input from the company based on legal requirements.
EAP (if available), should be involved. The
process consists of three main steps: The immediate actions following a psychological
1. Immediate actions injury should focus on:
2. Rehabilitation phase 1. creating clarity around the situation and with
3. Reintegration phase. regard to the current state of the employee;
2. establishing immediate support for the
Whether the process is coordinated by the employee (in some cases including family); if
human resources department or occupational EAP services are available in the company, a
health advisers, it is recommended that the referral should be initiated as soon as possible.
principles described below be followed when
managing a psychological injury case. Clear communication of the process and steps
involved for the expatriate and family is crucial
in creating a safe environment. Furthermore,
The principles of handling a special attention should be placed on
psychological injury case establishing a good dialogue with the employee.

● The case should be handled efficiently, and In remote locations, establishing the necessary
action should be taken involving occupational immediate support may be a challenge due to,
health expertise as soon as the issue has been for example, language difficulties or access to
reported (any delay should have a valid reason). expert psychiatric support. It is important that
● The human resources professionals or
occupational health practitioner should
conduct any necessary investigation to
determine the facts of the case, while
supporting the employee and his or her
manager in managing the situation.
● There should be adequate and consistent
follow-up and monitoring of the situation.
● A reintegration-to-work process should be
developed well in advance of the employee’s
return to work.
● All personal data should be stored and
treated with sensitivity and confidentiality.

17
 IPIECA • OGP

these factors are taken into account in the Reintegration phase

country entry assessment from a medical
perspective. If counselling and expert treatment A plan to reintegrate the individual into his or her
for, e.g. psychotic symptoms suggestive of assigned position of work, or into an alternative
mania, are not present in the country, a position, should be initiated quickly after the
systematic evacuation process should be incident. Such a plan should already have been
established to secure the safety of the expatriate. prepared during the rehabilitation phase.
Research shows that the longer an individual is
Furthermore, the availability of specific tele- away from work, the more difficult, or even the
psychiatric support from the home country will more unlikely, will be their ultimate return to
be useful for expatriates in locations lacking the work. The reintegration-to-work plan should be
appropriate treatment facilities. The company developed with input from occupational health
EAP should also provide expert expatriate department, the company EAP, the employee’s
services for the employee and his or her family, manager, the employee and the human
including advice on cultural differences, cross- resources department. In some countries,
cultural adaptation reactions, etc. predefined fitness-to-work certificates are
available for this purpose.

Rehabilitation phase An assessment should be made about whether

the expatriate will be able to return to the role
The purpose of the rehabilitation phase is to that he or she left as a result of the incident; in
stabilize the employee through treatment, e.g. most cases this will require a graduated
counselling and/or medication. This will, in most approach taking into account specific tasks,
cases, require that the employee be off work, hours and environmental factors. If the incident
either in the home country or in the country of has been due to environmental factors, it is
expatriation, depending on the prognosis and unlikely that the employee will be able to stay in
severity of the case. During the rehabilitation the country of expatriation.
phase, frequent follow-up meetings with the
human resources department, the employee’s
manager and the occupational health Follow-up
practitioner should be scheduled and conducted
to support the employee’s safe return to work as After the employee has been reintegrated into
early as possible. During the rehabilitation his or her former position, or into an alternative
phase, the employee should undergo a position, the case owner (either the occupational
treatment plan which is verified and supported health services or human resources department)
by the occupational health department and/or should monitor any changes to the situation
the employee’s GP. over a period of 3–6 months. Changes in
performance expectations or in the position
In some severe cases, e.g. psychosis, the itself may be necessary as an outcome of the
employee will need to be transferred to the reintegration to work plan.
home country as a precaution against the
potential presence of an underlying risk. Any It must be highlighted that every case is unique,
decision made to transfer the expatriate and the above strategies should be put into the
(including his or her family, as appropriate) to specific context of the situation, taking careful
the home country should be based on a detailed account of the individual’s characteristics and
risk assessment. circumstances.

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 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Conclusion—managing psychosocial risks

Managing psychosocial risks associated with As emphasized in the section on Prevention
expatriation requires a strategy with the ability strategies on pages 14–16, which is based on a
to navigate a high level of complexity. The comparison of 12 oil and gas companies, it is
strategy described in this document is founded clear that different preventive actions are
on a risk-based approach targeting potential applied across the industry to manage the
triggers, and applying prevention and complexity of psychosocial risks. This document
intervention strategies to manage the potential presents an overall approach to managing the
consequences associated with psychosocial risks. described risks. However, each company is
advised to establish a programme which meets
This strategy is visualized in the model below. its own specific needs and risks, based on
Developing a prevention programme should be geographical, organizational and cultural
based on a comprehensive risk assessment of characteristics.
the potential triggers.

Figure 1 Example of a typical model for managing psychosocial risks

Triggers Consequences

Triggers Individual consequences

¥ Physical health ¥ Psychological health
¥ Psychological resilience problems
I
¥ Relationships ¥ Physical and
P N
physiological health
R T
problems
Psychosocial factors E E
¥ Inadequate job
¥ New cultural practices V R performance
¥ Poor family integration E Expatriate failure V ¥ Family problems
¥ Social conditions and N due to E
country infrastructures T psychosocial risks N
¥ Extreme environmental I T Organizational
conditions consequences
O I
¥ Organizational factors ¥ Financial loss
N O
¥ Poor adjustment to new ¥ Organizational
N
function/role ineffectiveness
¥ Poor adjustment to ¥ Reputational damage
work environment ¥ Legal implications

19
 IPIECA • OGP

Annex: Case studies

Case study 1: Inability to perform the task due to the challenges of a new environment
‘Philip’ was Chief of Department in an Africa business unit. One year after he started his expatriate
assignment, he showed difficulty in managing people and company partners in the new cultural
context. He sought help from his company, which tried its best to diminish his scope of work and to
reassure him. He developed a depressive condition and ultimately decided to return to his home
country (early termination of expatriation). Upon return to his country, he wanted to rid himself of
all of his past: he sold his apartment and was divorced from his wife.

Case study 2: Job overload

‘Bruce’ was a highly valued manager who had accepted a position overseas, accompanied by his
spouse and their three young children. Prior to his expatriation he had been declared anxious
(borderline depressive) on the occasion of a stress observatory test at his annual checkup. He had
previously been successfully expatriated for three years in an English-speaking country.
After two months in his new position, he had difficulties managing his 20-strong team, and he
avoided meetings due to communication problems (declaring himself unable to speak English). He
decided to take some days off with his family, but upon his return to work he noticed no change in
his mental condition and behaviour. He then decided to speak to the company doctor by telephone
and the decision was taken to terminate his expatriation. Bruce was then referred to a psychiatrist
who prescribed depression therapy and one month’s sick live.
He is today being followed up by a psychiatrist and monitored by a company coach to help him
to manage his work-life balance and avoid work overload.
During his rehabilitation period, he was offered an intermediate job position and gradually took
on more responsibility.

Case study 3: Stress due to misfit

‘Michael’ was expatriated for the first time to a strategic job position as an engineer. From the
beginning of the assignment, he recognized that the job was highly demanding and he felt the
need for help. The company did not respond significantly due to overload of work in the business
unit. Michael developed symptoms of anxiety. He made several visits to the local clinic to discuss
his symptoms with the expatriate doctor, and although generally smiling, he was obviously anxious.
A severe symptom was nail-biting. The situation worsened and the employee began to experience
somatic problems as well as psychological strain. Michael was given anxiolytic therapy. The
situation deteriorated and had a negative impact on his wife who developed psychosomatic
troubles. Expatriation was terminated after one year.

20
 MANAGING PSYCHOSOCIAL RISKS ON EXPATRIATION IN THE OIL AND GAS INDUSTRY

Case study 4: The impact of sudden change in the sociocultural environment

‘Charles’ was an electrical technician, recruited for three years expatriation in Africa with his wife
and two children aged 13 and 14 years. Family adaptation looked excellent. Charles, a highly
communicative person, integrated quickly into a cosmopolitan expatriate community, mainly
consisting of engineers with whom he developed active social relationships after office hours—
something that would have been untypical in his previous life. His family was fascinated by such
social ascension, and Charles became more and more appreciated by the expatriate community.
Originally, the assignment was scheduled to last for three years. However, the expatriation was
extended for a further three years.
After expatriation, the family returned to their previous life at home, and to their previous ‘social
rank’. This return to reality had a rapidly devastating effect: Charles became addicted to alcohol, his
wife divorced him, and his daughter (18 years old at that time) became anorexic and died a few
months later. His son was able to manage the situation and is now perfectly adapted to his own
professional life.

Case study 5: The risk of expatriation when children are unsupervised

‘John’, aged 15 years, had previously travelled with his family on an expatriate assignment to Asia.
He returned with them for a second assignment some years later. His father was highly successful
during his assignment and was promoted to managing director of the business unit. Both parents
were infatuated with the expatriate lifestyle, abusing marijuana. Unfortunately, they did not realize
that John was in great danger.
Several months later, John started using cocaine. This eventually turned into an addiction, and
he became totally unable to follow any schooling. He was described by his psychiatrist as a ‘son of’,
referring to the destructive dominance of his father.

21
 IPIECA • OGP

References and further reading

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management. Organizational Dynamics, 13, 66-79.

Antoniou, A., Davidson, M. and Cooper, C. (2003). Occupational stress, job satisfaction and health state
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BSI (2011). Guidance on the management of psychosocial risks in their workplace. Publicly Available
Specification (PAS) 1010; a BSI Standard.
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Cox, T. and Griffiths, A. (1995). The assessment of psychosocial hazards at work. In M.J. Schabracq,
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Cox, T. and Griffiths, A. (2005). The nature and measurement of work-related stress: Theory and
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Dumont, J-C. and Lemaître, G. (2005). Counting Immigrants and Expatriates in OECD Countries: A New
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Group Meeting on International Migration and Development, Population Division, Department of
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EU-OSHA (2007). Expert forecast on emerging psychosocial risks related to occupational safety and health.
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EU-OSHA (2009). OSH in figures: stress at work—facts and figures. European Agency for Safety and
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EU-OSHA (2012b). Management of psychosocial risks at work: an analysis of the findings of the European
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23
IPIECA is the global oil and gas industry association for environmental and social issues. It develops,
shares and promotes good practices and knowledge to help the industry improve its environmental and
social performance, and is the industry’s principal channel of communication with the United Nations.
Through its member-led working groups and executive leadership, IPIECA brings together the collective
expertise of oil and gas companies and associations. Its unique position within the industry enables its
members to respond effectively to key environmental and social issues.

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