What are Parent-country nationals (PCNs)?

Parent-country nationals (PCNs) are employees of a multinational corporation (MNC) who are citizens of the company’s home or parent country. These employees are typically sent to work in the company’s subsidiaries or foreign affiliates in other countries. PCNs may also be referred to as expatriates or “ex-pat” for short, referring to employees who are sent to work abroad for a period of time.

PCNs are usually considered the most senior and experienced employees within a multinational corporation. They are often sent abroad to fill critical positions, such as management roles, where their knowledge and experience can be most valuable.

PCNs are usually well compensated, with pay and benefits packages designed to compensate for the additional costs and challenges of working abroad. These include housing allowances, extra vacation time, and international health insurance.

PCNs can significantly impact the local operations of the subsidiary or affiliate in which they are working. They are often responsible for implementing the company’s global strategy and ensuring that the subsidiary or affiliate is aligned with the parent company. However, PCNs can also face cultural and language barriers and may be viewed as outsiders by their host country colleagues.

Advantages of Parent-country nationals (PCNs):

There are several advantages of using Parent-country nationals (PCNs) in multinational corporations (MNCs)

  1. Knowledge and expertise: PCNs often have a great deal of knowledge and expertise in the company’s products, services, and operations. They can bring this knowledge and expertise to the subsidiary or affiliate where they are working, helping to improve its performance and competitiveness.
  2. Experience: PCNs are typically experienced professionals with a proven track record of success within the company. They can bring a wealth of experience to the subsidiary or affiliate, helping to improve its operations and management.
  3. Alignment with global strategy: PCNs can help to ensure that the subsidiary or affiliate is aligned with the parent company’s global strategy. They can work to implement the company’s global strategy and ensure that the subsidiary or affiliate is integrated into the company’s overall operations.
  4. Cultural sensitivity: PCNs can also be well prepared to work in different environments and less prone to cultural misunderstandings.
  5. Professional development: PCNs may be given opportunities to develop their careers by working in different countries and gaining new experiences.

Disadvantages of Parent-country nationals (PCNs):

While Parent-country nationals (PCNs) can bring many advantages to multinational corporations (MNCs), there are also some potential disadvantages to using them:

  1. Cultural barriers: PCNs may face cultural barriers and may be viewed as outsiders by their host country colleagues. This can make it more difficult for them to build relationships and trust with local employees and customers.
  2. Language barriers: PCNs may also face language barriers, making it more difficult to communicate effectively with local employees and customers.
  3. Resistance to change: PCNs may also encounter resistance from local employees who oppose changes that the PCNs are trying to implement.
  4. Expensive: PCNs are usually well compensated, with pay and benefits packages designed to compensate for the additional costs and challenges of working abroad. This can be expensive for the company.
  5. High turnover rate: PCNs are often sent abroad for a specific period of time and may not be willing to stay for an extended period. This can lead to a high turnover rate of PCNs.