University Business - October 2012 - (Page 24)

HUMAN RESOURCES On Foreign Soil HR lessons on expanding abroad By Carol Patton n 2008, Sunil Khambaswadkar came on board as the assistant vice chancellor of HR at the Abu Dhabi campus of New York University, which now supports 450 students and is growing strong. “It was a great opportunity for HR and me, personally, to be part of the campus right from the beginning, participating in the planning process, being able to determine what would be required from an HR perspective,” he says. His is just one of many institutions that have opened international campuses, and all must, of course, consider HR practices in decision-making. The Nelson A. Rockefeller Institute of Government, SUNY’s public policy think tank, tracks this trend. At last count, says Jason E. Lane, director of educational studies and a senior fellow, there were 64 U.S. institutions with 81 branch campuses in 34 countries. And when the American Council on Education conducted its 2011 survey on the internationalization of U.S. campuses, 56 percent of 1,041 institutions surveyed reported that the level of internationalization at their school has been “high” or “moderate” in recent years. Some institutions, which may have held off on international expansion during the recession, are dusting off their plans. Setting up shop in different countries is a complex process. Is the HR department ready to cross borders? Consider cultural idiosyncrasies. Partnerships. Time-zone challenges. Foreign laws. Not to mention building a compensation and benefits plan to attract job candidates worldwide whose work ethic and styles may not be exactly compatible with their peers. Take The Lead Eric Abrahamson, the Hughie E. Milles Professor of Business at Columbia Busi24 | October 2012 I Will local recruiting firms apply the same ethical and moral standards used in the United States? ness School, says one of HR’s challenges is sourcing professors who understand the local culture and fit into an Americanstyle school. The American classroom, for example, has grown to be more interactive. “I grew up in France, where the professor is all knowing. [Students] don’t even ask questions,” he says. A good place to start the search process may be within the institution’s own student ranks. More foreign students are obtaining a Ph.D. in the U.S., then returning home, Abrahamson says. These graduates, he feels, will also be accustomed to the American system of “publish or peril,” which is not as fiercely observed in countries such as France. Then there are taxes to consider, adds Bob Lammey, senior director of higher education at High Street Partners in Boston, which specializes in helping higher ed institutions establish learning programs abroad. He points to tax equalizing, or ensuring that U.S. employees who move to a country with a higher tax rate still take home the same amount of pay. Next is recruitment. Will local recruiting firms apply the same ethical and moral standards used in the U.S.? In some countries, such as Nigeria, nepotism runs rampant, says Lammey, recalling several clients who discovered a recruiting firm in Nigeria had hired family members and friends who were not qualified for their jobs. That’s why very specific hiring policies and processes must be developed. Requiring job descriptions or key hires to be approved by HR in the U.S. is one idea. Still, among the biggest issues he sees is hiring independent contractors who really qualify as employees. When a school opens a new campus overseas, Lammey says, it’s tempting to hire people as independent contractors before the school’s administrative infrastructure is fully in place. However, independent contractors have sued some of his clients. Not only were they awarded six- to seven-figure settlements, but the government also sought damages from the university. He advises being very proactive as the planning process is happening to ensure HR issues and needs are addressed upfront. “[HR] usually arrives late to the party. … Don’t wait for the invitation. Don’t wait for issues to start happening.” FirST-haNd experieNCeS No doubt, there are many lessons to be learned when establishing an overseas campus. Consider the experiences of the following institutions that have achieved some success in the global market. • New York University’s Abu Dhabi campus Khambaswadkar recalls the numerous tasks his department was involved with early on: registering the school with the Ministry of Labor and Immigration universitybusiness.com http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - October 2012

University Business - October 2012
Contents
Editor's Note
College Index
Ad Index
Behind the News
Viewpoint
Human Resources
Venue 365
Not Your Parents’ Campus Bookstore
CRM Grows Up
Where the Workers Are
The Payment Plan
Education Innovators
Money Matters
What's New
End Note

University Business - October 2012