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CLOSING CASE Global Mobility At Shell Royal Dutch Shell is a British-Dutch multinational oil relocation, and (5) health issues. The underlying message and gas company, founded in 1907, that is headquartered was that the family is the basic unit of expatriation, not in the Netherlands and incorporated in the United the individual, and Shell needed to do more to recognize Kingdom. The company is one of the world's largest oil this producers with revenues of about $388 billion (profit of To deal with these issues, Shell implemented a number $24 billion) and operations in more than 70 countries. of programs designed to address some of these problems. The company has some 82,000 employees, of which to help with the education of children, Shell built about 7,000 employees are at any one time on expatriate elementary schools for Shell employees where there was a assignments outside their home country. A crucial task heavy concentration of expatriates. As for secondary for Shell is to manage this extensive population of expa- school education, Shell worked with local schools triate workers in order to meet its commercial goals and (e.g., often providing grants) to help them upgrade their transfer valuable technical and managerial knowledge educational offerings. It also offered an education supple- across operations located in different nations. It's no ment to help expatriates send their children to private easy task. schools in the host country, Shell's long-term goal is to develop local talent wher Helping spouses with their careers is a more vexing ever possible, thereby leveraging local employees' net- problem. According to the survey data, half the spouses works, market knowledge, and language skills, while also accompanying Shell staff on assignment were employed minimizing costs. However, there are many cases where until the transfer. When expatriated, only 12 percent were deploying foreign nationals makes the most commercial able to secure employment, while a further 33 percent sense. First, there is often a shortage of skills in certain wished to be employed. Shell set up a spouse employment locations. Shell has found this to be a vital issue in the center to address the problem. The center provides career Middle East and North Africa, where the company often counseling and assistance in locating employment oppor works with local joint-venture partners or third parties. tunities both during and immediately after an interna- Moving Shell employees from other countries to work tional assignment. The company also agreed to reimburse with partners and transfer expertise is often a key part of up to 80 percent of the costs of vocational training, fur the company's strategy. Second, Shell recognizes that the ther education, or reaccreditation skills of staff and senior leadership are improved by sig. Shell set up a global information and advice network nificant exposure to overseas markets. In other words, in known as "The Outpost" to provide support for families a multinational like Shell, high-potential employees need facing the challenges of global mobility. The Outpost to understand what it is like to live and work in other has its headquarters in The Hague with about 50 local countries to get a sense of the conditions on the ground. offices around the world. The center recommends schools Third, in many instances, senior Shell employees need to and medical facilities and provides housing advice and be on the management boards of local subsidiaries in up-to-date information on employment, study, self- order to effectively monitor and control those operations employment, and volunteer work. and keep the head office informed of developments. Finally, there are also important issues with expatriate As Shell has found, however, moving employees to other pay. An expatriate's basic salary and bonus are linked to countries raises a number of important challenges. It's not what they would receive in their home country. Additional always easy to recruit skilled personnel to work in different pay is given to expatriates moving to more expensive loca- locations. A survey of expatriate personnel at Shell found tions so they can maintain their standard of living. Shell that five issues had the greatest impact on the willingness also recognizes that employees often need additional of an employee to accept an international assignment. In financial incentives to persuade them to leave family and order of importance, these were (1) separation from chil friends and location "premiums" to persuade them to dren during their secondary education, (2) harm done to a move to less popular expatriate destinations, such as spouse's career and employment, (3) failure to recognize Kuwait and Iraq. Shell also uses tax equalization as part and involve a spouse in the relocation decision. (4) failure of its expatriate pay approach. Specifically, home country to provide adequate information and assistance regarding taxes are deducted from an expatriate's pay, while the