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Jenkins Goes Abroad Case
Jenkins Consulting is a national firm based in Boston, MA, that helps companies
improve their performance and effectiveness by advising on all aspects of business
management and operations. Companies hire consultants from Jenkins Consulting for
various projects, such as assisting with company-wide cost reduction initiatives,
revenue growth initiatives, improving supply-chain management, and/or improving
individual departments such as information technology. Jenkins employs consultants in
25 offices across the United States.
A company located in Delhi, India has asked Jenkins to take on a significant project that
will be based in Delhi but will require semi-annual trips of about 2 weeks to Mumbai.
Jenkins will assist the company with an organization-wide effort to restructure and
reposition the company to succeed in a market that is becoming highly competitive. To
undertake this project, Jenkins will open an office in Delhi and assign five full-time
management consultants for a term of two years. Jenkins has decided to relocate the
consultants selected initially to Delhi for the project’s duration. Because Jenkins sees
this assignment as an opportunity to expand its operations internationally, Jenkins will
also hire a local national as an Office Manager to answer the phone, prepare
documents, file related paperwork, and be a source of local knowledge to the
consultants.
Dale Kugar, the human resource director at Jenkins, must identify the consultants for
this project and prepare them to transition to this new assignment within the next 60
days. This is the company’s first exposure to expatriate management. Hence, Kugar
intends to select the first wave of consultants from the Boston office to have better
control over Jenkins’ first overseas venture. However, he is concerned about the
consultants’ interest in taking on the international assignment. Some of the consultants
with whom he has had initial conversations are concerned about the impact the
assignment might have on their families and their careers. As one consultant put it, “Out
of sight; out of mind!”
In addition to selecting the right persons for the expatriate positions, Kugar wants to
ensure that the consultants who accept the assignment are compensated appropriately.
The compensation package needs to ensure that the expatriates are not concerned
about financial matters during their assignment but also minimize costs to Jenkins. He
initially thought to maintain their current benefits, including health care insurance, 401(k)
retirement plan, vacation, and related benefits, but to alter the compensation. The two
issues he needs clarification on are how to develop a compensation package that
considers other aspects of pay and ensuring that the consultants are not disadvantaged
professionally by taking the assignment in Delhi. All the potential expatriates Kugar has
talked to thus far are not married, which would likely make the assignment less costly to
the company and less stressful for the consultants selected. However, it is possible that,
in the end, he will have to consider married consultants, as well, to achieve the number
needed for the assignment.
Questions:
- As the HR director for Jenkins, what factors should Kugar consider in his
selection of consultants for the assignment? What external influences and
data should Kugar consider when preparing for these expat assignments? - What are the various compensation approaches that Kugar can consider for
this first wave of Jenkins expatriates? - Of the various compensation approaches available to Kugar, which approach
should he recommend regarding how to compensate these expatriates? What
factors influenced your decision? - Should Kugar provide any additional compensation or benefits to the
expatriates as part of their total compensation package? If yes, what should
he provide? What factors will influence his decision? - What can Kugar do to ensure that these expatriates are not hurt career-wise
by participating in this 2-year expat assignment? - What factors must Kugar consider in developing a pay package for the Office
Manager’s position in Delhi? Propose a detailed salary and benefits package
for this position. Explain the rationale for your proposed compensation
package.
Sample Answer
This is a classic expatriate management scenario, and Dale Kugar has several critical issues to address. Let’s break down each question:
1. Factors for Consultant Selection and External Influences:
- Selection Factors:
- Technical Skills: Consultants must possess the expertise needed for the restructuring and repositioning project.
- Adaptability and Cultural Sensitivity: Essential for navigating a new culture and work environment.
- Communication Skills: Clear and effective communication is crucial for working with the Indian client and local staff.
- Flexibility and Resilience: The ability to handle ambiguity and change is vital for a successful overseas assignment.
- Motivation and Enthusiasm: Consultants should be genuinely interested in the opportunity and committed to its success.
- Past Performance: Review consultants’ track records and performance evaluations.
- Interpersonal Skills: The ability to work well in teams, and with people from other cultures.
- Language Skills: Although English is widely spoken in Indian business, any additional language skills could be an advantage.
- External Influences and Data:
- Cost of Living in Delhi and Mumbai: Research living expenses, including housing, transportation, food, and entertainment.
- Tax Laws in India and the U.S.: Understand the tax implications for both Jenkins and the consultants.
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