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International Recruitment & Selection

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Transcript of International Recruitment & Selection

International Recruitment & Selection - Review of British Petroleum's (BP) Practices
Definition of Recruitment and Selection
Recruitment: searching for and attracting a large pool of competent, quality applicants who have the capabilities and attitudes needed to assist the organization in accomplishing its goals.

BP at a Glance
Fuel
Energy
Lubricants
Petrochemicals

Selection: the process of choosing individuals from the available applicants, who are most likely to successfully perform the job (Absar, 2012). Hiring and then deploying people to positions where they can perform effectively is a goal of most organizations, whether domestic or international.
What will we talk about today?

- BP at a glance
- Management of expatriates
- BP’s staffing approach
- Reasons for expatriate failure
- Categories of employees (PCNs, HCNs & TCNs)
- Localising
- Expatriate resistance and assistance
- Issues in staff selection.
- Dual career couples
- Female international managers
- Family considerations.


Reconnaissance Visit
Immigration
Relocation Support
Housing
Healthcare


How do BP manage expatriates?

Phases in the management of expatriates

1. Planning expatriation
2. Pre-departure phase
3. Expatriation phase
4. Pre-repatriation phase
5. Repatriation phase
Managing Expatriates

Transportation
Cultural training
Vacation
Travel
BP Employees by Area (BP, 2013)


Internationalising board of directors
Hire new staff internally, complemented by selective external recruitment
Recruit 10400 people annually (excluding retail staff)
They recruit a significant proportion of their graduates from outside the UK and US. 44% of graduates in 2013 were foreign.
BP’s Staffing Approach (BP, 2013)

Ethnocentric Approach
Polycentric Approach
Geocentric Approach
Regiocentric Approach
HRM Staffing Approaches
Loss of market share,
Difficulties with host-government officials,
Demands that PCNs be replaced with HCNs
Local staff’s morale and productivity will suffer
Expatriates lose self-esteem, self-confidence, and prestige among peers
Future performance affected by decreased motivation, lack of promotional opportunities
Expatriate’s family relationships may be threatened
Expatriate failure ctd.
Failure is frequent – 15-80%
Success is dependent on support with the aim of retention of expatriates



Airfares and associated relocation expenses, salary and training expenses
(Dowling, P. J. et. Al. 2013)

Expatriate failure
(Van der Heijden, J. et. Al. 2009)
(Van der Heijden, J. et. Al. 2009)
Indirect costs:
(Dowling, et. Al. 2013)
Direct costs:
Regiocentric approach
(Dowling, et. Al. 2013)

(BP, 2013)
(Dowling, et. al. 2013)
International recruitment also depends upon the organisations staffing approach, and constraints applied by host-governments, which can limit the ability to source the right candidates for the job.
(Dowling, Festing & Engle, 2013).
Categories of Employees in an international firm

1. Host-country nationals (HCNs)
2. Parent-country nationals (PCNs)
3. Third-country nationals (TCNs)

Host-Country Nationals (HCNs)
Recruiting someone local
No language barrier
Reduced hiring costs and no work permit is needed as they are locals
Continuity of management improves because HCN’s will stay longer in their positions
Government policy may require hiring HCNs
Possible increased morale due to better career prospects

HCN’s limited career opportunity outside the subsidiary
Encourage national rather than global unit
Control of Headquarters impeded
Limits opportunities for PCN’s to gain overseas experience

Advantages:
Disadvantages:
Not posted by organisations for international assignments but rather make a choice themselves to live and work abroad.

Free-travelling individuals who were not going to pre-arranged jobs but who all engaged in work during their international overseas experience (Doherty, Richardson & Thorn, 2013).

SIE’s were driven partly by a desire to seek adventure and new experiences, and the result was an increase in SIEs’ self-confidence which provided them with a clearer career focus (Froese & Peltokorpi, 2013).
Self-initiated expatriates (SIEs)

(Dowling, et. al, 2013).

Disadvantages:

Promotion opportunities are limited for HCN’s
Adapting to the host country can take a long time
PCN’s may impose inappropriate HQ style
Compensation for PCN’s and HCN’s may differ
limited exposure to the international operations, constraining strategic decision-making and resource allocation.
Advantages:

Organisation control and coordination maintained and facilitated
High potential employees are given international experience
PCN’s may be the best people for the job due to special skills and experience
Assures that subsidiary will comply with company policies and procedures
Otherwise known as expatriates
They are employees working (or candidates that are citizens) within the parent country of the organisation that are sent overseas on international assignments
Parent-country nationals (PCNs)

Ando & Paik (2013)

(Dowling,et.al, 2013).

Disadvantages
Transfers must consider possible national animosities
Host government may resent hiring TCN’s
TCN’s may not want to return to their own countries after assignment

Advantages:
Salary and benefits may be lower than for PCN’s
TCN’s may be better informed than PCN’s about host-country environment
Suitable candidates from other foreign subsidiaries.
a person whose nationality is different from that of the firm, and of the country in which the firm is operating (Heery & Noon, 2008).
Third-country nationals (TCNs)

International Assignments – 2300 in 2009, down from 3400 at the start of 2007. (Hughes, S. 2009.)
BP have actually proposed ‘Culture training’ as a required safety requirement. This reinforces how hard it can be for expatriates to adjust.

BP

Fawaz Bitar, Head of Operations
“I think it is a fantastic experience in terms of technical development, but also in personal development aswell.” (Bitar, F. 2012)
BP
Disruption to children’s education can be a potential reason to decline an overseas posting
Care of aging or invalid parents
Family Considerations

Expatriate selection decisions
Family considerations
Dual career couples
Female International Managers


Issues in Staff Selection

“BP directly employs more than 2,300 people in the Gulf of Mexico and supports tens of thousands of additional jobs in the region.” (BP. 2013)
BP
Set entry standards above that which locals can meet e.g. Qualifications not available in the country
Set pay and benefits at unattractive levels
Require excessively long periods of training
Give undemanding task and then say the employer is not performing
Expat Resist
Research shows that many Americans who are sent overseas by their employer do not succeed their overseas operation. 15 to 80 percent end up returning to their home country early costing an average of $100,000 to their company (Black, S & Mendenhall, M & Oddou, G. 1991).
Expatriate Selection Decisions
Passing on knowledge and capabilities
Encourage training and development
Setting a good example at work
Establish realistic standards with the assistance of headquarters
Expat Assist

When an organisation replaces expatriates with Host country nationals; expatriates have a huge role in achieving a successful localisation, they may hinder or assist in these changes.

Localising
(Black & Mendenhall & Oddou, 1991).
Which ONE factor has most affected your job choices with respect mobility?

Spouse/partner doesn’t have career options in the new location.
Safety/security/quality of life in new location.
Teenagers in pre-university years.
Spouse/partner simply doesn’t want to relocate.
Spouse/partner doesn’t have a “portable” career.
Child-care requirements for small children.
Availability of quality education in new location.
Elderly parents.
From SPE SURVEY
BP currently has over 85,000 employees working in 80 countries across the globe.
It aims to ensure equal opportunity in recruitment, career development, promotion, training and reward for all employees, including women; ethnic, minorities and different nationalities.
It aims for 25% female group leaders and 30% female senior level leaders by 2020.
BP aims to create Women’s International Network and local women’s networks at many of sites around the world.

Female International Managers
How easy is it to manage dual careers in the oil and gas business?
Did you consider leaving your company due to their handling of dual career couples?

SPE SURVEY

What is the most difficult challenge to overcome in managing dual careers?

Dual-career couples are becoming increasingly common in BP as one of the oil and gas industry.
Dual Career Couples
Reference List
Ando, N & Paik, Y (2013) Institutional distance, host country and international business experience, and the use of parent country nationals, Human Resource Management JournaI, vol.23(1), pp. 52-71, Blackwell Publishing Ltd, retrieved from http://onlinelibrary.wiley.com.libraryproxy.griffith.edu.au/doi/10.1111/j.1748-8583.2012.00201.x/citedby

Bird, A. Furuya, N. Mendenhall, M. Oddou, G. Stevens, M. (2009). Managing the Learning and Transfer of Global Management Competence: Antecedents and Outcomes of Japanese Repatriation Effectiveness. Journal of International Business Studies, 40(2), 200-215. Retrieved from http://www.jstor.org.libraryproxy.griffith.edu.au/stable/25483371
Bitar, F. ( September 25, 2012). BP people: Working as an Expat.
Black, S; Mendenhall, M; Oddou, G. (1991). Toward a Comprehensive Model of International Adjustment: an Integration of Multiple Theoretical Perspectives. The academy of Management Review, 16(2), 291-317. Retrieved from http://www.jstor.org.libraryproxy.griffith.edu.au/stable/258863?seq=1

BP. (2013) Annual Report and Form 20-F Building a stronger, safer BP: British Petroleum
BP. (2013). Sustainability Review 2012. Retrieved from https://www.bp.com/content/dam/bp/pdf/sustainability/group-reports/BP_Sustainability_Review_2012.pdf
BP. (2014, March 31st). “BP Appoints New Head of Russian Business”, [press release] retrieved from; http://www.bp.com/en/global/corporate/press/press-releases/bp-appoints-new-head-of-russian-business.html

Caligiuri,P, Tarique, I & Jacobs, R. (2009). Selection for international assignments, Human Resource Management Review, vol. 19(3), pp. 251-262, retrieved from;
http://www.sciencedirect.com/science/article/pii/S1053482209000163

Doherty, N, Richardson, J & Thorn, K,. (2013). Self-initiated expatriation and self-initiated expatriates, Academy of Management Review, Career Development International, Vol. 18 (1) pp. 97-112, retrieved from http://search.proquest.com.libraryproxy.griffith.edu.au/docview/1288074188

Dowling, P. J., Festing, M. & Engle Snr, A. D. (2013) International Human Resource Management: Managing People in a Multinational Context, 6th edition. Thomson, Melbourne

Dudley, B. (2014) BP Sustainability Review 2013, retrieved from http://www.bp.com/en/global/corporate/sustainability.html

Froese F.J, & Peltokorpi, V. (2013) Organizational expatriates and self-initiated expatriates: differences in cross-cultural adjustment and job satisfaction, The International Journal of Human Resource Management, vol. 24 (10), pp. 1953-1967, retrieved from;
http://dx.doi.org/10.1080/09585192.2012.725078

Heery, E & Noon, M. (2008) A Dictionary of Human Resource Management, Oxford University Press, retrieved from http://www.oxfordreference.com.libraryproxy.griffith.edu.au/view/10.1093/acref/9780199298761.001.0001/acref-9780199298761

Heijen, J. A., Engen, M. L., & Paauwe,. J. (2009). Expatriate career support: predicting expatriate turnover and performance. International journal of human resource management, vol. 20 (4), pp. 831-845,DOI: 10.1080/09585190902770745

Hughes, S. (2009). Optimizing Expatriate costs in a Down Economy. Retrieved from http://www.globalbusinessnews.net/b4/vsites/22/storydoc/bp_optimizeexpatcosts.pdf

Oltra., V, Bonache, J & Brewster, C (2013) A New Framework for Understanding Inequalities Between Expatriates and Host Country Nationals, Journal of Business Ethics, vol.115, pp. 291-310, Springer Science and Business Media Publishers, retrieved from;
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Vo, A. N. (2009). Career Development for host country nationals: a case of American and Japanese multinational companies Vietnam. International journal of human resource management, vol. 20 (6), pp. 1402-1420, DOI: 10.1080/0985190902909905
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(Oltra, Bonache & Brewster, 2013).
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