Expert Answer:case study questions

  

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Jenkins Consulting is a national firm 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 a variety of projects such as assisting with
company-wide cost reduction initiatives or revenue growth initiatives, improving supplychain management, and/or improving individual departments such as information
technology. Jenkins employs consultants in 200 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 approximately 2 years. Because of the significant time commitment, Jenkins
has decided to relocate the selected consultants to the United Kingdom for the duration of
the project.
Dale Kugar, the human resource director at Jenkins, must prepare to transition the
consultants to the new assignment. This is the company’s first exposure to expatriate
management, and Dale needs to ensure that the consultants who move to the United
Kingdom for the project are compensated appropriately. His intention is to have the
consultants maintain their current benefits, including health care insurance, retirement
savings, and paid time off. However, he must make a recommendation on any changes to
each consultant’s salary.
Dale has a few concerns as he prepares his recommendation. First, the 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 the 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 impact the assignment will have on
their career. Because this is Jenkins’ first international experience, the consultants 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 he starts to
draft his recommendation.
Questions:
1. 13-6. How should Dale approach the determination of the consultant’s salaries as
expatriates?
2. 13-7. Should Jenkins offer any incentive compensation or additional benefits to the
expatriates? Why or why not?

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