Reference no: EM133305629

Assignment: Jacobs Engineering Group Inc. is an American international technical professional services firm. The company provides technical, professional and construction services, as well as scientific and specialty consulting for a broad range of clients globally, including companies, organizations, and government agencies. Jacobs has expats working in variety of positions, such as field engineers and marketing managers, in over 50 countries. It also has host country nationals working alongside expats at these locations. It is the firm's policy to send employees out for foreign assignments for less than 5 years and then return them to their home countries. Suppose that Jacobs is having some of its field engineers from foreign countries come to work at their headquarters in Dallas, TX for one year. Consider 3 engineers that will be working the same job together at their headquarters (you can assume they are all unmarried, without children): Rose is an engineer from Manila, Philippines and currently earns the equivalent of US$25,000; Pim is an engineer from Bangkok, Thailand and currently earns the equivalent of US$30,000; and Taylor is an engineer from Dallas, TX and currently earns US$60,000 at the headquarters.

1. What method would you recommend Jacobs to use to set the base salary for foreign engineers at their US headquarters? What allowances, incentives, and/or benefits might you offer them?

2. What are the potential strengths and weaknesses of the choices you made in Problem 1?

3. What are some issues that could arise when the foreign engineers return to their home countries and return to their pre-US assignment compensation and benefits ("repatriate")?

4. What are some strategies global companies like Jacobs can use to manage their compensation plans without hurting employee morale.

5. Of the many allowances and enhanced benefits that US companies make for expats, which ones do you think are the most essential for employees? Explain.

6. Allowances and reimbursements for international assignments are costly. Should companies avoid international business activities? Explain. If you answer no, what could companies potentially do to minimize costs?