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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

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slide1

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

slide2

Agenda

  • About Chestnut Global Partners de México
  • Myths about international assignments
  • IAP Chestnut Global Partners
  • Outcome data
slide3

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
slide4

Expatriate Strategy

Expatriate:a definitionAny 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.

slide5

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
slide7

Myth #1

Most expatriates are selected for assignment because they are high-potential, multicultural employees who perform well during valid selection processes.

slide8

Myth #2

A “failed” assignment only occurs when an employee is unable to complete his/her job duties.

slide9

A “failed” expatriate assignment may be viewed as . . .

Benefits of an

Expat Assignment

  • 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

Others: market, community,

profession, culture

The Enterprise

Employees

“Impact on our People”

slide10

Expatriate recall and turnover

  • 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.
slide11

Myth #3

Most failed assignments are due to a lack of job skills, culture shock or inadequate compensation packages.

slide12

Expat's inability to adjust to cultural

environment

Other family related problems

Lacks skills necessary to conduct

business in host country culture

Personality or emotional maturity

Inability to integrate job expertise with

larger responsibilities of assignment

Inability to adapt to changing business

priorities or organizational realignment

Lack of technical competence

  • 0%
  • 10%
  • 20%
  • 30%
  • 40%
  • 50%
  • 60%
  • 70%

Why do expatriates fail?

Spouse/family’s inability to adjust to cultural/physical environment

Source: ERC 1993/1996 international Survey of 162 companies

slide13

Risk factors

Reasons for not accepting an overseas assignment

Source: Cadden 2006, citing NFTC 1994; GMAC, 2005; Cendant Mobility 2004.

slide14

Risk factors- China

Assignment refusal to China

Assignment failure in China

Source: Cadden 2006, citing NFTC 1994; GMAC, 2005; Cendant Mobility 2004.

slide15

Myth #4

High potential employees should be able to handle the stresses of moving abroad.

1-866-CAT-0565

slide16

Rates of mental health problems

U.S. nationals vs. expatriates

slide17

Myth #5

Most expats are satisfied with the support they received while on assignment

1-866-CAT-0565

slide18

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)
slide19

Reality

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
slide20

Were we doing enough?

Relocation Vendor

Spouse career consultation

Destination services

Training

Family Support

  • 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

Historically, we have not focused heavily on the “softer,” personal side of an ISE assignment. The IAP fills that gap.

slide21

Pre-implementation of IAP

Trends in expat surveys

  • 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
slide22

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.
slide23

Why are traditional EAPs inadequate to serve expatriate populations?

  • Most EAPs are U.S. centric and do not fully account for local and cultural needs.
  • Expatriates & families tend not to use traditional EAPs.
  • Many EAPs are passive
  • Delivering consistent EAP services globally has proven complicated
  • Traditional EAP alone is not sufficient to meet the complex needs at each stage of an expatriate assignment.
slide24

Theory of Expatriate and Spousal Adjustment(adaptation of Caligiuri model)

Personality Traits

  • Cultural Empathy
  • Open-mindedness
  • Social Initiative
  • Flexibility
  • Emotional Stability

Intercultural Adjustment

  • Psychological Adjustment
  • Sociocultural Adjustment
    • Work
    • Family
    • Culture

Family Characteristics

  • Family Cohesion
  • Family Adaptability
  • Family Communication

Work-Life

  • Expatriate Work Satisfaction
  • Support from the international

company

  • Other Social Support Networks
slide25

Delivery Model Options for Expatriate Support

  • U.S. based telecounseling and online services
  • Home country professional- periodic expat “check ups”
  • Placement of home country professional in host-country
  • Face-to-face with local provider
slide26

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”

“Think

Local

Act

Local”

“Think

Global

Act

Local”

slide27

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
  • 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
  • Argentina
  • Australia
  • Austria
  • Bahamas
  • Bangladesh
  • Barbados
  • Belgium
  • Belize
  • Bermuda
  • Bolivia
  • Brazil
  • Canada
  • Cayman Islands
  • Chile
  • China
  • Costa Rica
  • Curacao
  • 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

CGP Provider Network

slide28

Case examples

  • Spouse - isolated and afraid to leave the house in Brazil
  • Child - not fitting in at school in the U.K.
  • Expat employee - extramarital affair in China
  • Expat employee - drinking excessively in Mexico
slide29

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
slide30

International Assistance Program (IAP)

The IAP is. . .

  • Confidential
  • Proactive and strategic
  • Free of charge to the ISEs
  • Ultimately voluntary
slide31

HOME

COUNTRY

HOST

COUNTRY

HOME

COUNTRY

H

I

G

H

Emotion

& Energy

Level

L

O

W

Honeymoon

Burnout

Excitement/anxiety

Adjustment/settling in

Stages repeat

Emotional lifecycle of an expatriate assignment

slide32

Pre-acceptance consultation:

Repatriation outreach and support:

Destination outreach:

.

.

.

.

.

.

On going outreach and clinical services (counseling and referrals:

Pre-departure outreach and counseling

Ongoing outreach and support 1 year post repatriation

IAP Service Delivery

HOME

COUNTRY

HOST

COUNTRY

HOME

COUNTRY

H

I

G

H

Emotion & Energy Level

L

O

W

Adjustment Stages Over time

slide34

Phone call

E-mail

Phone call

11,867 outreach

Contacts in 2006

IAP Service Metrics

slide35

Performance Metrics

Proactive outreach dramatically increases utilization

Pre departure consultations

slide36

Performance Metrics

Clinical Utilization

13% utilization

8.4% utilization

N = 1188

N = 1264

slide38

Where are services being provided?

Host location of ISEs receiving services

CY 2005

slide39

Where are services being provided?

Host location of ISEs receiving services

2005 - 2006

slide41

Survey Data

Percent reporting dissatisfaction with . . .

slide42

Survey Data

Percent reporting dissatisfaction with . . .

slide43

Survey Data

Percent who have considered early repatriation

slide44

Survey Data

“How has your personal life been affected while living abroad?” Percent reporting a “negative” impact.

49% decrease

slide45

Survey Data

Percentage of ISEs reporting more than 4 days absent “due to a personal or emotional problem.”

39% decrease

slide46

Programme d’Assistance InternationalFrench

Werknemer ondersteuningsprogramAfrikaans

Program Bantuan PekerjaMalay

Programa Internacional de AssistenciaPortuguese

medewerkers ondersteunings- programma or reïntegratietrajectHolland/Dutch

Questions?

Thank you.

psykologisk krisehjælpDanish

雇员协助节目 orYuan Gong Fu Zhu Ji Hua Chinese

Programa de Astistencia InternacionalSpanish

Program Wspierania PracownikówPolish

Mitarbeiter-Beratungs-ProgrammGerman

종업원 지원 프로그램 or Jik Won Ji Won ProgramKorean

Programma di Assistenza InternazionaleItalian