global hr conference on world trade and the impact on international assignments
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Global HR Conference on World Trade and the Impact on International Assignments. Mexico City September 22,2008. Presenter : Martha Peña Managing Director Chestnut Global Partners de México. Agenda. About Chestnut Global Partners de México Myths about international assignments - PowerPoint PPT PresentationTRANSCRIPT
Global HR Conference on World Trade and the Impact on International Assignments
Presenter : Martha PeñaManaging Director Chestnut Global Partners de México
Mexico CitySeptember 22,2008
Agenda About Chestnut Global Partners de
México Myths about international
assignments IAP Chestnut Global Partners Outcome data
About Chestnut Global Partners Originally created in 1990
as a division of Chestnut Health Systems Converted into a subsidiary in 2005 as Chestnut
Global Partners, LLC CGP has grown from being a traditional EAP
service provider in the USA to become a lider as an International Employee Assistance Program provider and Proactive International Assistance Programs for expatriates and their family
Chestnut Global Partners de Mexico created in 2006
Expatriate Strategy
Expatriate: a definition
Any employee or family member temporarily living and working outside of their country of origin for the purposes of leadership development and the sharing of knowledge, culture, technical skills.
Chestnut Global Partners refers to these employees as International Service Employees or ISEs.
Expatriate Strategy
Expatriate assignments are important, perhaps critical, to achieving global objectives
But. . . they are expensive and contain some risk
We assume ISEs cost 3+ times that of a home-based employee
Actively managing that risk is essential to obtain a ROI
Some Myths About International Assignments
Most expatriates are selected for assignment because they are high-potential, multicultural employees who perform well during valid selection processes.
Myth #1
A “failed” assignment only occurs when an employee is unable to complete his/her job duties.
Myth #2
A “failed” expatriate assignment may be viewed as . . .
Early repatriation of the employee and/or family
A lack of optimal job performance
Severe family distress
Negative interactions between cultures
Turn-over, even after repatriation
Anything that negatively impacts ROI
Benefits of an Expat AssignmentTh
e E
nter
pris
e
Others: m
arket, comm
unity,
profession, culture
Employees“Impact on our
People”
75% of Multinational companies have a expat recall rate greater than 10%. Harzig, 1995.
22% of U.S. expatriate employees turnover within the first year of repatriation. GMAC GRS – NFTC – SHRM Global, 2003.
50% turn over within 3 years. Black and Gregersen, 1991.
Expatriate recall and turnover
Most failed assignments are due to a lack of job skills, culture shock or inadequate compensation packages.
Myth #3
Why do expatriates fail?
Source: ERC 1993/1996 international Survey of 162 companies 0% 10% 20% 30% 40% 50% 60% 70%
Lack of technical competence
Inability to adapt to changing businesspriorities or organizational realignment
Inability to integrate job expertise withlarger responsibilities of assignment
Personality or emotional maturity
Lacks skills necessary to conductbusiness in host country culture
Other family related problems
Expat's inability to adjust to culturalenvironment
Spouse/family’s inability to adjust to cultural/physical environment
Risk factorsReasons for not accepting an overseas
assignment
Source: Cadden 2006, citing NFTC 1994; GMAC, 2005; Cendant Mobility 2004.
56%
88%
66%
88%
46%
70%66%
70%
0%
25%
50%
75%
100%
Partnerresistance
Familyadjustment
Partnercareer
Children'seducation
1995 2005
Risk factors- China
55% 54%
33%21%
7%
0%
25%
50%
75%
100%
Personal style Poor familyadjustment
Culturaldifferences
Businessconditions
Poor languageskills
Source: Cadden 2006, citing NFTC 1994; GMAC, 2005; Cendant Mobility 2004.
83%
38%
22% 20%10%
0%
25%
50%
75%
100%
Family or personalcircumstances
Spouse careerconcerns
Kids' education Impact on career Perceived culturalchallenges
Assignment failure in China
Assignment refusal to China
1-866-CAT-0565
High potential employees should be able to handle the stresses of moving abroad.
Myth #4
3.2%
12.7%
7.7%
17.5%
50.8%
3.7% 3.4%
0%
10%
20%
30%
40%
50%
Alcohol usedisorders
Depression Adjustmentdisorders
Anxiety
U.S. nationals National Comorbidity Study, 2006Expats, Valk, 2002
Rates of mental health problems
U.S. nationals vs. expatriates
1-866-CAT-0565
Most expats are satisfied with the support they received while on assignment
Myth #5
One half of all expats report their company does not do enough to support their personal needs (National Foreign Trade Council, Cigna, Worldatwork. 2002.)
Less than 20% of companies provide any assistance for the personal needs of the
spouse and family (SHRM/Willimatte university study, “Emerging Trends in Global Mobility: An Assignees Perspective. 2004)
The best approach to managing risk in international relocation is. . . Provide competitive compensation packages
Partner with best-in-class relocation vendors
Carefully select expatriates
Provide ample training
Provide supportive programs that address the personal needs of the entire family
Reality
Were we doing enough?
• Relocation
• Policy
• Vendor Mgt.
• Exception Mgt.
• Spousal career support and resume writing – US Domestic only
• Some destination services
• Housing
• Schooling
• Settling- in
• Referrals
•Orientation to local area
• Cultural training
•Language Trg
• Follow up training
• Personal Support
• Assessment, counseling, referrals
• Proactive outreach and support – pre, during and post assignment
Relocation Vendor
Spouse career consultation
Destination services
Training Family Support
Historically, we have not focused heavily on the “softer,” personal side of an ISE assignment. The IAP fills that gap.
Pre-implementation of IAP
Considerable dissatisfaction with kids’ education, emotional state, and social relationships
Frequent consideration of early repatriation due to social, emotional and workplace stressors
Strong dissatisfaction with the level support finding healthcare and the level of personal support received
Trends in expat surveys
About Chestnut Global Partners
U.S.-based EAP since 1983. International since 2000
Joint venture companies in Brazil, China and Mexico
Contracts in place with over 85 providers and organizations in 100 countries
Now serving nearly a 300,000 individuals in over 85 countries
Caterpillar EAP provider since 2002.
Why are traditional EAPs inadequate to serve expatriate populations?
1. Most EAPs are U.S. centric and do not fully account for local and cultural needs.
2. Expatriates & families tend not to use traditional EAPs.
3. Many EAPs are passive
4. Delivering consistent EAP services globally has proven complicated
5. Traditional EAP alone is not sufficient to meet the complex needs at each stage of an expatriate assignment.
Personality Traits- Cultural Empathy- Open-mindedness- Social Initiative- Flexibility- Emotional Stability
Theory of Expatriate and Spousal Adjustment
(adaptation of Caligiuri model)
Family Characteristics- Family Cohesion- Family Adaptability- Family Communication
Work-Life- Expatriate Work Satisfaction- Support from the international company - Other Social Support Networks
Intercultural Adjustment
- Psychological Adjustment- Sociocultural Adjustment
- Work- Family- Culture
Delivery Model Options for Expatriate Support
1. U.S. based telecounseling and online services
2. Home country professional- periodic expat “check ups”
3. Placement of home country professional in host-country
4. Face-to-face with local provider
“ThinkGlobal
ActLocal”
“ThinkLocalAct
Local”
Global PartnershipsMulti-local Approach
Local, in-country providers have an intimate knowledge of the host country
“High touch,” local presence with quick responses
Greater acceptance and integration by local management
Local providers can blend cultural issues with “personal problems”
Argentina Australia Austria Bahamas Bangladesh Barbados Belgium Belize Bermuda Bolivia Brazil Canada Cayman Islands Chile China Costa Rica Curacao
Ivory Coast Jamaica Japan Lesotho Luxembourg Malaysia Martinique Mexico Netherlands Nevis/St. Kitts New Zealand Nicaragua Norway Pakistan Panama Papa New Guinea Paraguay Peru Poland Portugal Puerto Rico
Czech Denmark Dominican Republic Ecuador El Salvador Fiji Finland France Germany Greece Grenada Guadeloupe Guatemala Guiana Haiti Honduras Hong Kong Hungary India Indonesia Ireland Italy
Russia Saudi Arabia Singapore South Africa South Korea Spain Sri Lanka St. Lucia St. Vincent and the Grenadines Sweden Switzerland Taiwan Thailand Trinidad and Tobago Uruguay United Arab Emirates United Kingdom/ Northern Ireland United States Virgin Islands Vanuatu Venezuela
CGP Provider Network
Case examples
1. Spouse - isolated and afraid to leave the house in Brazil
2. Child - not fitting in at school in the U.K.
3. Expat employee - extramarital affair in China
4. Expat employee - drinking excessively in Mexico
International Assistance Program (IAP) The IAP model was created jointly by Caterpillar
and Chestnut Global Partners
Piloted in 2003-2004. Implemented October 2004
Goals Provide confidential, global and culturally relevant
personal support for ISEs and families at no charge
Minimize the risks of family adjustment and personal problems
Enhance the ISE experience for the family and those in the company supporting ISEs
International Assistance Program (IAP)
The IAP is. . .
Confidential
Proactive and strategic
Free of charge to the ISEs
Ultimately voluntary
Emotional lifecycle of an expatriate assignment
Emotion & Energy Level
HOMECOUNTRY
LOW
HOMECOUNTRY
HOSTCOUNTRY
HIGH
Excitement/anxiety
Honeymoon Burnout Adjustment/settling in
Stages repeat
IAP Service DeliveryHOME
COUNTRYHOME
COUNTRYHOST
COUNTRY
Adjustment Stages Over time
Emotion & Energy Level
LOW
HIGH
Pre-acceptance consultation:Pre-acceptance consultation:
.Pre-departure outreach and counseling
Pre-departure outreach and counseling
.Destination outreach:Destination outreach:
.On going outreach and clinical services (counseling and referrals:
On going outreach and clinical services (counseling and referrals:
.
Repatriation outreach and support:
Repatriation outreach and support:
.Ongoing outreach and support 1 year post repatriation
Ongoing outreach and support 1 year post repatriation
.
IAP metrics
Phone call E-mail Phone call
1238
1014
687
1026
981
1922
974
6 18
821
2027
864
2313
785
1916
1239
1726
1103
1329
1084
1228
1054
1422
1046
27210
200
400
600
800
1000
1200
1400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Outreach Contacts Pre-Departure Consultations Clinical Contacts
11,867 outreach Contacts in 2006 IAP Service Metrics
Performance MetricsProactive outreach dramatically increases
utilization
4%
45%
53%
0%
20%
40%
60%
80%
100%
Predeparturemeetings in 2004
Predeparturemeetings in 2005
Predeparturemeetings 2006
Pre departure consultations
Performance Metrics
100
164
0
50
100
150
200
250
300
Clinical cases 2005 Clinical cases 2006
8.4% utilization
N = 1188
13% utilization
N = 1264
Clinical Utilization
Performance metrics: employee vs. family
57%
53%
31%37%
11%10%
1%00%
20%
40%
60%
80%
100%
Employee Spouses Dependents Elderly parents
Where are services being provided?Host location of ISEs receiving services
CY 2005
2% 2%6% 2% 1% 1%
2%
2%
1%
17%
17%
17%3%3%
2%
16%
4%
United States United Kingdom Switzerland Canada Singapore China
France Belgium South Africa Brazil Japan Puerto Rico
Germany Italy Netherlands U.A.E. Mexico
Where are services being provided?Host location of ISEs receiving services
2005 - 2006
0%
5%
10%
15%
20%
25%
30%
35%
United
States
United
King
dom
Switz
erlan
d
Canad
a
Sing
apor
e
China
Fran
ce
Belgium
Italy
Other
20052006
Performance metrics: Presenting problem
0%
10%
20%
30%20052006
Survey DataPercent reporting dissatisfaction with . . .
Emotional state Socialrelationships
Maritalrelationships
Familyrelationships
Job Kids'educationalexperience
Pre IAP After first year of IAP
Support with policy Overall HR support Support findinghealthcare
Level of personalsupport
Prior to IAP After first year of IAP
Survey DataPercent reporting dissatisfaction with . . .
Considered early repat dueto personal problem
Considered early repat dueto work problem
Family considered earlyrepatriation
Pre IAP
1-yearfollow up
Survey DataPercent who have considered early repatriation
Survey Data“How has your personal life been affected while living abroad?” Percent reporting a “negative” impact.
Pre IAP 1 year follow up
49% decrease
Survey DataPercentage of ISEs reporting more than 4 days absent “due to a personal or emotional problem.”
Pre IAP 1 year follow up
39% decrease
Program Bantuan Pekerja Malay
Program Wspierania Pracowników Polish
Werknemer ondersteuningsprogram Afrikaans
Programa Internacional de Assistencia Portuguese
Programme d’Assistance International French
psykologisk krisehjælp Danish
Programa de Astistencia Internacional Spanish
Mitarbeiter-Beratungs-Programm German
medewerkers ondersteunings- programma or reïntegratietraject Holland/Dutch
雇员协助节目 orYuan Gong Fu Zhu Ji Hua Chinese
종업원 지원 프로그램 or Jik Won Ji Won Program Korean
Questions?Thank you.
Programma di Assistenza Internazionale Italian