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
 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 homebased employee
 Actively managing that risk is essential to obtain a
ROI
Some Myths About
International Assignments
Myth #1
Most expatriates are selected for
assignment because they are highpotential, multicultural employees who
perform well during valid selection
processes.
Myth #2
A “failed” assignment only occurs
when an employee is unable to
complete his/her job duties.
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 Assignment
Employees
“Impact on our
People”
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.
Myth #3
Most failed assignments are due to
a lack of job skills, culture shock or
inadequate compensation
packages.
Why do expatriates fail?
Spouse/family’s inability to adjust to
cultural/physical environment
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
Source: ERC 1993/1996 international Survey of 162 companies
0%
10%
20%
30%
40%
50%
60%
70%
Risk factors
Reasons for not accepting an overseas assignment
100%
88%
88%
75%
70%
66%
66%
50%
70%
56%
46%
25%
0%
Partner
resistance
Family
adjustment
Partner
career
1995
Source: Cadden 2006, citing NFTC 1994; GMAC, 2005; Cendant Mobility
2004.
2005
Children's
education
Risk factors- China
100%
Assignment refusal to China
83%
75%
38%
50%
22%
20%
25%
10%
0%
Family or personal
circumstances
Spouse career
concerns
Kids' education
100%
Impact on career
Perceived cultural
challenges
Assignment failure in China
75%
55%
54%
50%
33%
21%
25%
7%
0%
Personal style
Poor family
adjustment
Cultural
differences
Business
conditions
Source: Cadden 2006, citing NFTC 1994; GMAC, 2005; Cendant Mobility 2004.
Poor language
skills
Myth #4
High potential employees
should be able to handle the
stresses of moving abroad.
1-866-CAT-0565
Rates of mental health
problems
U.S. nationals vs. expatriates
50%
50.8%
40%
30%
17.5%
20%
10%
12.7%
7.7%
3.7% 3.4%
3.2%
0%
Alcohol use
disorders
Depression
Adjustment
disorders
Anxiety
U.S. nationals National Comorbidity Study, 2006
Expats, Valk, 2002
Myth #5
Most expats are satisfied with the
support they received while on
assignment
1-866-CAT-0565
 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)
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
Were we doing enough?
Relocation
Vendor
• Relocation
• Policy
• Vendor Mgt.
• Exception
Mgt.
Spouse career
consultation
Destination
services
• Spousal
career support
and resume
writing – US
Domestic only
• Housing
• Some
destination
services
•Orientation to
local area
• Schooling
• Settling- in
• Referrals
Training
• Cultural
training
Family
Support
• Personal
Support
•Language Trg • Assessment,
• Follow up
counseling,
training
referrals
Historically, we have not focused heavily on the
“softer,” personal side of an ISE assignment. The
IAP fills that gap.
• Proactive
outreach and
support – pre,
during and post
assignment
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
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.
Theory of Expatriate and Spousal Adjustment
(adaptation of Caligiuri model)
Personality Traits
- Cultural Empathy
- Open-mindedness
- Social Initiative
- Flexibility
- Emotional Stability
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
Global Partnerships
Multi-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”
CGP Provider Network
 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
 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
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
H
I
G
H
HOME
COUNTRY
HOST
COUNTRY
HOME
COUNTRY
Emotion
& Energy
Level
L
O
W
Excitement/ Honeymoon Burnout Adjustment/
anxiety
settling in
Stages
repeat
IAP Service Delivery
Pre-acceptance
consultation: HOME
COUNTRY
.
. .
H
I
G
H
Emotion
& Energy
Level
L
O
W
Pre-departure
outreach and
counseling
HOST
COUNTRY
Destination
outreach:
HOME
Repatriation
COUNTRY
outreach and
support:
.
.
.
On going outreach
and clinical services
(counseling and
referrals:
Adjustment Stages Over time
Ongoing outreach
and support 1 year
post repatriation
IAP metrics
IAP Service Metrics
10
46
10
54
78
5
68
7
800
86
4
82
1
1000
97
4
98
1
11
03
1200
10
84
12
38
1400
12
39
11,867 outreach
Contacts in 2006
600
2
217
14
22
Jul
12
28
Jun
13
29
19
16
23
13
20
27
18
6
19
22
10
26
10
14
200
17
26
400
0
Jan
Feb
Mar
Apr
May
Outreach Contacts
Phone call
Aug
Sep
Pre-Departure Consultations
E-mail
Oct
Nov
Dec
Clinical Contacts
Phone call
Performance Metrics
Proactive outreach dramatically increases utilization
100%
Pre departure consultations
80%
53%
60%
45%
40%
20%
4%
0%
Predeparture
meetings in 2004
Predeparture
meetings in 2005
Predeparture
meetings 2006
Performance Metrics
300
Clinical Utilization
250
200
164
150
100
100
50
8.4%
utilization
13%
utilization
0
Clinical cases 2005
N = 1188
Clinical cases 2006
N = 1264
Performance metrics: employee vs. family
100%
80%
57%
60%
53%
31%
40%
37%
11%
20%
10%
1%
0
0%
Employee
Spouses
Dependents
Elderly parents
Where are services being provided?
Host location of ISEs receiving services
CY 2005
2%
2%
2%
2%
6%
1%
1%
17%
2%
1%
4%
17%
16%
2%
3%
17%
3%
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
35%
2005
2006
30%
25%
20%
15%
10%
5%
U
U
th
er
O
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ly
Be
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o
an
ad
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d
St
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ni
es
te
d
Ki
ng
do
m
Sw
itz
er
la
nd
0%
Performance metrics: Presenting problem
2005
2006
30%
20%
10%
0%
e
ar
/o
er
m
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ov
p
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r
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Survey Data
Percent reporting dissatisfaction with .
..
Emotional state
Social
relationships
Marital
relationships
Pre IAP
Family
relationships
Job
After first year of IAP
Kids'
educational
experience
Survey Data
Percent reporting dissatisfaction with . .
.
Prior to IAP
Support with policy
Overall HR support
Support finding
healthcare
After first year of IA
Level of personal
support
Survey Data
Percent who have considered early repatriation
Pre IAP
1-year
follow up
Considered early repat due Considered early repat due
to personal problem
to work problem
Family considered early
repatriation
Survey Data
“How has your personal life been affected
while living abroad?” Percent reporting a
“negative” impact.
49% decrease
Pre IAP
1 year follow up
Survey Data
Percentage of ISEs reporting more than 4
days absent “due to a personal or
emotional problem.”
39% decrease
Pre IAP
1 year follow up
Programme
d’Assistance
International
Werknemer
ondersteuningsprogram
Program Bantuan
Afrikaans
Pekerja Malay
Programa
Internacional de
Assistencia Portuguese
Questions?
Thank you.
psykologisk krisehjælp Danish
Programa de Astistencia
Internacional Spanish
French
medewerkers
ondersteuningsprogramma or
reïntegratietraject
Holland/Dutch
雇员协助节目 orYuan
Gong Fu Zhu Ji Hua
Chinese
Program Wspierania
Mitarbeiter-Beratungs-Programm
Pracowników Polish
German
종업원 지원 프로그
Programma di Assistenza
램 or Jik Won Ji Won
Internazionale Italian
Program Korean
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