Jenkins consulting is a national firm that helps companies improve their performance and effectiveness by advising on all aspect of business management and operations. Companies hires consultants from Jenkins consulting for a variety of projects such as assisting with company-wide cost reduction initiatives or revenue growth initiatives, improving supply-chain management. Jenkins employs consultants in 20 offices across the United States and will soon expand its operations internationally. A company located in the United Kingdom has hired Jenkins for a major project that will be based at the company’s headquarters in London. Jenkins will assist the company with an organization-wide effort to restructure and reposition the company to succeed in a more competitive market. To complete this project, Jenkins will assign five full-time consultants for a period of 2 years. Because of significant time commitment, Jenkins has decided to relocate the selected consultants to the United Kingdom for duration of the project.
Dale Kruger, the human resources director at Jenkins, must prepare to transition the consultants to the new assignment. This is the company’s first exposure that the consultants who more to the United Kingdom for the project are compensated appropriately. His intention is to have the consultants maintain their current benefits, including healthcare insurance, retirement saving, and paid time off. However, he must make a recommendation on any changes to each consultant salary.
Dale has a few concerns as he prepares his recommendation. First, United Kingdom is currently experiencing a high level of inflation. The value of the American dollar compared to the British pound is fairly low. That is, the consultant’s U.S salary will not have the same purchasing power in United Kingdom as it does at home. He is also concerned about the consultants’ interest in taking on the international assignment. Some of the consultants he spoke to about the assignment are concerned about the assignment will have on their career. Since this is Jenkins’s first international experience., the consultant are concerned that being out of the country for 2 years may affect their future career opportunities because they will not have regular interactions with the firm partners who make decisions on promotions. These concerns weigh heavily on Dale’s mind as states to draft this recommendation.
1. How should Dale approach the determination of the consultant’s salaries as expatriates?
2. Should Jenkins offer any incentive compensation or additional benefits to the expatriates? Why or why not?