International HR Executive Development Program

CAHRS – September 30 – October 5, 2001

EXPATRIATES AND BEYOND

Expatriate and Labor: Issues and Policy

William R. Sheridan
Senior Director
National Foreign Trade Council
2 West 45th Street
Suite 1602
New York, NY 10036
T: 212/399-7128
F: 212/399-7144
wsheridan @nftc.org
 Global Markets
Citizenship and Sustainable Development

CENTER FOR HR MANAGEMENT STUDIES

Fairleigh Dickenson University
December 14, 2001

William R. Sheridan
Senior Director
National Foreign Trade Council
2 West 45th Street
Suite 1602
New York, NY 10036
T: 212/399-7128
F: 212/399-7144
wsheridan @nftc.org
 OVERVIEW
• The NFTC and global business issues
• The NFTC and global human resources management
• Sustainability
• Challenge Facing Corporations
• Expatriates: issues and trends
• Expatriate studies and surveys
• Expatriates as an investment
• Experiences and Learnings
• Role model employers
• Current studies
• Global labor: issues and trends
• NGOs vs. MNCs
• Q& A
 The NFTC and Global Business
• Founded in 1915
• Continues as advocate for open market access for cross-border
investment trade
• 500 sponsors – all sectors of the economy
• Member companies are present throughout the world
• Current issues:
 Expansion of the NAFTA
 Trade with China/WTO
 Unilateral trade sanctions
 Tax treaties with Japan and the U.K.
 Bilateral social security totalization agreements
 Foreign service corporations
 Global talent management
 The NFTC and Global Human
Resources Management
• Global presence of member companies
• Relationship with U.S. Department of State and other U.S. and non-U.S. Government
agencies
• Working committees and roundtables
 Expatriate Management
 Global Compensation
 International Benefits
 Asia Pacific
 China
 Latin America
• Global Human Resources Advisory Board
• In-Bound/Out-Bound Business Sponsored Immigration Issues
• Sourcing Global Talent (11E)
• Cost Management
• Coalition of HR Management Associations
 SUSTAINABILITY

“…To meet the needs of the present without

compromising the ability of future
generations to meet their own needs.”

United Nations World Commission on Environment and Development

(The Brundtland Commission), our Common Future, 1987
 CORPORATE SUSTAINABILITY

Company’s ability to achieve its business goals

and increase long-term shareowner value by
integrating economic, environmental and social
opportunities into its business strategies.

From participants of “Symposium on Sustainability – Profiles in

Leadership” that took place in NYC in October
 CHALLENGE FACING CORPORATIONS

“Globalization and open markets are being challenged, climate

change is creating a political transatlantic divide, innovation and
technology are being questioned. All this is placing new demands on
business for transparency and social responsibility. And as we
prepare for the [UN] World Summit [on Sustainable Development] in
2002, it is ever more important for companies to show leadership
and engage in partnerships to more faster toward sustainable
development.” (Remarks on Sept. 5, 2001 by Bjorn Stigson, World Business Council for Sustainable
Development president and International Herald Tribune.)
 Studies and Surveys
• Financial Incentives Survey (1992)
• Dual-Career Couples (1994)
• Expatriate Selection (1994)
• Expatriate Management – Search for Best Practices (with
Towers Perrin) (1994)
• Doing Business in China (with Towers Perrin) (1996)
• Global Managed Care (with Towers Perrin) (1997)
• Maximizing Your Expatriate Investment (with CIGNA
International and World at Work) (2000, 2001)
 Expatriates as an Investment
• Moving focus from Cost Management to Return on Investment
• Understand cost components
• Accounting firm cost accounting/forecasting software
• Six Sigma process management
• Difficulty with measuring “Before/After” impact
• End-to-end process
• Better selection, preparation, mentoring and repatriation
• Need to connect to career planning
• Cost of ineffective planning/utilization
 Expatriates: Issues and Trends
• Expansion into new, “foreign”, markets
• Technology/Knowledge Transfers
• Talent development
• Resistance to relocation
• Diversification of expatriate population/assignments
• Dual-career couples
• Demographic/Geographic challenges
• Cost management
• Process management – use of technology
• Trends – increase in “short-term” assignments
 Experiences and Learnings
• Causes for failed assignments
• Costs of failed assignments (financial, personal, business
opportunity)
• Preventative measures
• Life experience
• Expatriate Management Committee
• Not rocket science
• Communications/expectations setting
• Use of technology
 Role Model Employers
• Armstrong World Industries -- Selection
• ABN-AMRO -- Mentoring
• Abbott Laboratories – Career Planning
• Black & Decker -- Communications
• Chevron -- Intranet
• Chubb & Son -- Repatriation
• Citibank – Dual Careers
• Colgate-Palmolive –Vendor Management
• Ford – Process Management
• GE – Six Sigma
• IBM -- Intranet
• Intel – Intranet/Vendor Management
• JP Morgan/Chase Bank – Cost Management
• Merrill Lynch – Process Management
• Morgan Stanley – Cost/Vendor Management
• Motorola -- Selection
• Nokia – Family Support
• Nortel -- Selection
• PepsiCo – Process Management
• P&G – Use of Technology
• Philip Morris International -- mentoring
• Shell – Family Support
• Solar Turbines (Caterpillar) -- Selection
• 3M -- Repatriation
• Texas Instruments – Crisis Management
• Unilever – Career Management
• Xerox – Process Management
 Current Studies
• Annual Global Relocation Trends
 Impact of economic downturn on number/type of assignments
• Women expatriates – career management issues
• Metrics of success
• Relationship of cross-cultural preparation and
business/assignment success
 Global Labor: Issues and Trends
• Shift of manufacturing to low cost locations
• Rising expectations – global media
• European Works Councils
• Cross-Border HRIS – Data Flow
• Demographics in North America, Western Europe and Japan
• Immigration – Resurgence of labor organization
• Left-Behinds
• “Gray Dawn”
• Corporate Citizenship and the Internet
 NGOs vs. MNCs
• Managing “challenges” across the globe (Coca-Cola and
Greenpeace)
• Use/abuse of Internet
• The costs of being “good” global corporate citizens
• Internet training needs and processes
Questions and Answers