The psychology of expatriates in China and Hong Kong

Rurick Jutting, a 29-year-old investment banker working at Merrill Lynch in Hong Kong, was accused this week of murdering two Indonesian women, after their bodies were found in his Wan Chan apartment.

The banker, whose lifestyle, work ethics and background are being dug into by media outlets around the world as the story unfolds, is believed to have had his securities trading permit cancelled on October 28, meaning he would have been unable to work in Hong Kong.

The murders were allegedly committed around that date, and Jutting apparently called police to his apartment himself on November 1.

While the details of this case are gruesome and hard to read, the situation brings into question a very real issue - the issue of the psychological state of expatriate workers, and the responsibility of the company they work for to know of or monitor their mental health.

This particular case might have nothing to do with HR - Jutting could have aced every psychological test he's ever done during the recruitment process, and the dates of the alleged murders and losing his trading permit might be purely coincidental. We don't know yet, and I won't surmise on his mental state, despite him coming out to say "I'm not mad".

However, the story raises concern around the general topic of employee mental health, and at the centre of that issue, the largely unspoken problem of expatriate mental health.

Being an expat anywhere isn't easy, but being a Westerner living in countries like China and Hong Kong is harder than many other places. There are very real barriers to being able to lead a full and comfortable life as you know it back home, wherever that may be.

Language skills are a problem. Most employers would prefer a relocated employees to speak Mandarin or Cantonese, but most often, this isn't the deciding factor  - and yet it can hugely impact integration.

Being away from loved ones is also difficult and the feeling of isolation can increase over time. On a wider scale, the culture gap and socio-economic differences are huge, and things like religion, habits, customs and moral values can be a major block for expatriates trying to identify with their host country.

Even the poor pollution has an affect on the psychological health of employees, and in fact deters many Westerners from taking well-paying jobs in China.

One study - and one of the only real in-depth studies on the psychology of expats in China - found there is an innate unwillingness of both individuals and companies to take a long-term approach to help expats adjust to life in China.

And then there's also the very real problem of feeling trapped. I don't have any real evidence to back this up apart from anecdotal, but the truth is a lot of expatriates will stick out a posting longer than they probably should because they're drawn by the money. Personally, I know a handful of people (based in Singapore, however) who earn huge salaries, work at highly respected companies in their field, but they absolutely hate it.

But they stay because they're addicted to the money - and they'll admit it. They don't want to go home, but they feel unhappy where they are.

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So what can be done? And what is HR's responsibility when it comes to taking care of an expat employee's mental health?

This column questions how much legal culpability the company should accept when incidents like this happen. Something like a murder-accused employee no doubt has a negative impact on the company's brand.

Therefore shouldn't efforts to ensure the sound mental health of employees be something HR has a modicum of control over? 

It reads:

"An expat will always have to be cleared by their employer’s HR department, and one cannot help but wonder if a company could or should accept some liability for bringing such employees to China."

The issue here, is where to draw the line. In China and Hong Kong, as well as many other countries, there's no real obligation to do this. Psychiatric assessments might be part of the recruitment process, but whether an employee wants to undergo one is essentially - unless their contract states otherwise - entirely their decision. And perhaps rightfully so.

So what can you do? How can you manage your mobility and ensure the people you are placing overseas are the right people, able to not only do the job but also to integrate and maintain some level or normality in their day-to-day lives?

There are numerous things from hardship allowances and pre-relocation trips to see whether the country would be a fit for the employee, but none of these policies are necessarily long-term.

The reality is that being an expat in Hong Kong or China can be lonely, and it might be time for some sectors to think hard about how they can better manage the mental health of their relocated employees.

Do we need to talk more about the mental health of expats? Please let me know your thoughts in comments below.