Running head: JENKINS GOES ABROAD 1

Jenkins Goes Abroad

Laurie Anderson

Troy University

Compensation and Benefits

HRM 6632

Dr. William Heisler

October 04, 2018

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Jenkins Goes Abroad

Introduction

Cleveland Ohio is the home base for Jenkins Consulting a national firm that advises firms

on all aspects of operations and management so as to help the firms enhance their overall

performance. The firm has 40 offices all over the country and has employed qualified consltants

in each office. A firm based in Hong Kong has recently contracted Jenkins to undertake a major

project that will support the firms restrucring efforts and help reoisition the firm in the ever

changng market. Baiscally, the project will be mainly based in Hong Kong but it will involve a

few trips to Mainland China cities like Beijing and Shanghai. Five full-time consultants will be

appointed to handle this client for a period of two years and due to the length of the project these

consltants will be required to move to Hng Kong and operate from there

Dale Kugar who is in charge of Human resources will determine the ideal project consultants

job and train them within two months so that they are ready for transit. His main source of

conern, is the rate of renumeration the expatriates will receive and whether the perks are

beneficial to the candidates who will undertake this project. Commented [1]: Deleted:he
Commented [2]: Deleted:ing

External Influences and Data

Kugar’s mandate as Jenkin’s HR manager is to identify the external factors that will

come to play once the conslutants relocate to Hong Kong they include the different cultures, the

different ways of doing business, the different tax laws and the different politcal atmosphere

between the two countries.

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The social divide between China and the United States is one of the most significant

factor to be considered by Kugar during training . "Culture distances are much more complicated

if the cultural gap between both the country of origin and the host country is huge." (Laine,

2013) The cultural gap between China and the United States is very high, this is because the

United States is a capitalistic society whereby individual needs are top of the agenda while China

is a totalitarioan society where the government has complete control of the national agenda. It is

also Furthermore, it is worth noting that China does have a high social disparity, meaning that it

is okay with wealth dicrepancies and elitism is the order of the day as compared to the US. Commented [3]: Inserted: ,

("Hofstede’s Insights," 2018) This gives Kugar insights into the best preparation strategy for

ensuring the expatriates are well taken care of.

Various Compensation Approaches

Kuger’s main aim is to alter the compensation so that the first group of expatriates are

compensated properly andenusre that they do not lose any of their current benefits. Kugar can

establish the base pay using are 3 techniques and they; headquarter based techniquess, host

country techniqes and home-country techniques. Expats are remunerated the exact amount that

they would have received if the were working at their home contry if the the home-country base

techniques is applied. Expats are renumareted what workers in the host country earn if the host -

coutry base pay technique is applied. While the headquarter decides the base pay that will be

paid to the expats after factoring in all the variables and this is when the headquarter basepay

technique is used. Additionaly it is cricial to identify the technique used to define the standardof

living against the inflation rate within the host country. (Martocchio, 2017) Kuger must also

decide what compensation every expat should earn according to the working conditions of the
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nation.

Approach to be recommended

The home-based payement technique is the most ideal since the contract period is fairly

limited and it will not have a significant effect on the future financial path goals of the expat and

it will make repatriation easier. It would be ideal if the host nation may be paying its own

employees substantially higher for the same work and therefore that would reduce the cost of

higher salaries for expatriates.Moreover it woud help facilitate the integration of consultants into

their home country because they receive approximately the same pay as they used before they

left.

Additional Compensation to Consider

Furthermoer, some kind of renumeration or benefits need to be dangled by Kugar so

that the expats value the assignment and justify the reason for having their daily life disrupted.

Retention incentives like rewards for foreign service should be provided that are only

redeemable during their current assignment and will be disbrsed once certian objectives made

before the assignment begins are met. He should provide incentive bonuses such as foreign

service premiums with the understanding that these premiums are lasting just as long as the

assignment lasts, and they will be disbursed when expatriates reach performance goals that will

be decided ahead of the assignment.It will also make sure expats recognise the objectives of the Commented [4]: Deleted:,

task and make sure that they are adequately compensated.

In fact, the compensation package should be augmented with other benefits, such as

assitance with relocation, which would address the main costs for expats to move to Hong Kong.

It may be appropriate that each expatriate be paid housing benefits, and also a commodities

stipend. When a few of the expats have kids, education funds for private schools intended for
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English-speaking learners may should be made available. Kuger should also identify the living

costs in Hong Kong.This will induce the consultants picked by Kuger to embrace their foreign

responsiblities and it will support expats enjoy their mission, because it helps them to maintain

the standard of living they have previously enjoyed. Commented [5]: Deleted:,

Repatriation

A Harvard Business Review article points out that Kuger can make 5 solid move that to easen Commented [6]: Inserted: ,

the repatriation and expatriation process. The first thing he should do is to ensure that the ideal

candidates are chosen for the mission. make the expatriation and repatriation easier for the

consultants that are relocating to Hong Kong. Making sure the right people are being picked for

this assignment is the number one thing he can do. The next move should be to designate

mentors from both the home and host country so as to help the assignees undertsand the

experience and integrate with the culture approprtiately. The article also calls for frequent

contact between the mentors and other key personnel regarding the progression of the

assignment and how the collaboartion is adding value to both sides as well as the challenges

being faced. During this period a reintergration plan for repatriation into the home coutnry’s

coprate enviroment should be devised so that both the assignee and the employer have a

common road map moving forward. According to the paper, Kuger will start developing ways to

communicate insights from the perspectives of the expats, either by inspiring them both during

their project to create journals regarding their interactions or to hold workshops on international

assignments. (Molinsky & Hahn, 2016) Repatriation does have its own challenges, however if

carefully managed it might easen interaction process between both the expatriate and the home

office. A mentor from the home contry and from the host contry is a good concept because this

is the first project of this magnitude to be conducted by Jenkins.

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References

Country Comparison. (2018). Retrieved October 04, 2018, from https://www.hofstede-

insights.com/country-comparison/china,the-usa/

Fotsch, B., & Case, J. (2015, August 24). How To Build Incentive Plans That Actually Work.

Forbes. Retrieved from https://www.forbes.com/sites/fotschcase/2015/08/24/incentive-

plans-that-actually-work/#427bc5bc61e6

Laine, R. (2013). Important Factors for Expatriate Success (Bachelor thesis, Turku University of

Applied Sciences). Retrieved from

https://www.theseus.fi/bitstream/handle/10024/56864/TUAS_Thesis_Laine_R.pdf

Martocchio, J. J. (2017). Strategic Compensation: A Human Resource Management Approach (9

ed.). [Yuzu]. Retrieved from https://reader.yuzu.com/#/books/9780134320595/

Molinsky, A., & Hahn, M. (2016, March 16). 5 Tips for Managing Successful Overseas

Assignments. Harvard Business Review. Retrieved from https://hbr.org/2016/03/5-tips-

for-managing-successful-overseas-assignments#comment-section