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Jenkins Goes Abroad Case (Modified – B)
Jenkins Consulting is a national firm based in Kansas City, Missouri, 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 Hong Kong has asked Jenkins to take on a significant project that will be based in Hong Kong but will require annual trips of about 2 weeks to Beijing and 2-3 days to Wuhan. 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 Hong Kong and assign five full-time management consultants for a term of two years. Jenkins has decided to relocate the consultants selected initially to Hong Kong 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 Boise 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 move to Hong Kong 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 how to ensure that the consultants are not disadvantaged professionally by taking the assignment in Hong Kong. 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 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 assignment in Hong Kong?
What factors must Kugar consider in developing a pay package for the Office Manager’s position in Hong Kong? Propose a detailed salary and benefits package for this position. Explain the rationale for your proposed compensation package.
While these questions should be addressed in your analysis, DO NOT merely respond to the six questions presented above. Your submitted assignment should address these questions in an integrated essay or report format. The title page, headings, citations, and references should follow the APA style guide (7th edition).
This is an individual assignment used for program assessment; no collaboration with others is permitted.
NOTE 1: You will have to supplement course materials with online research to respond to one or more of the questions presented above.
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