Thread regarding Chevron Corp. layoffs

Expats

How many super highly paid expats with their zillion allowances are out there? Each expat is at least a million dollars in cost. Eliminate 500 expats or move them back to their home base where possible. That is at least 500 million bucks. Could be even more. Will pay 25% of the next dividend obligation. That would be a good smart move for Chevron.

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Post ID: @OP+QKbFeLr

74 replies (most recent on top)

@4voc, the points made by several coherent people on this thread is that most of these cushy expat positions are obtained through the Friends and Family network. Your premise of “if you can’t beat them, join them” makes no sense. Have you been following the thread?

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Post ID: @4tct+QKbFeLr

Expats are not going away. If anything they are increasing! If you can’t beat them, join them. If you can’t join them, cry about it some anonymous web site until you feel better. Or get sacked.

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Post ID: @4voc+QKbFeLr

@QKbFeLr is right. At locations where housing is paid through a housing allowance, you have this added widfall from the excessively liberal allowance. Australia is another example. In these places the GSS (goods and services surplus) is very liberal also. In places like Lagos or Atirau, Chevron provides housing. But those are places where you get a whopping premium. Either way, expats wind up racking up a solid windfall which is tax-protected the significance of which should not be ignored.

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Post ID: @4smn+QKbFeLr

We had some serious deadwood in farnbotough on fgp. Common phrase was slow down your working too hard. You need to milk it like the rest of us. Best secret of this assignment was the $13000 a month housing and expense allowance. It was based upon working in London but farnborough is in the country and good housing 4000 a month. We got to pocket the difference

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Post ID: @4poh+QKbFeLr

First of all, saying someone only takes an expat assignment for the money...well...what is the other reason? Cultural experience? Maybe. It is difficult to uproot the spouse and kids. Take them away from family and friends. There is a lot more to being an expat than money. It isn’t for everyone. My kids have retained zero friends from their school days. Both my wife and I have suffered through sick parents at a distance. Could I make as much money in a domestic job doing the same function? No way. I am about to retire and, while the retirement fund is good, I will end up in a place where I don’t know anyone and with people I have little in common with. Should expat assignments be limited? I see value in that. After a time, take that expat knowledge back home where others can benefit. Personally I think a three year cycle is too short. I find most expats are of limited value in their first year as there is a lot to learn. People, culture (yes it affects business). Language? Maybe or maybe not. Different processes? Most definitely. In the second year, they start to add value. Whether it is a domestic organization or an expat one, management will surround themselves with those they feel comfortable with. That is just human nature. Can the system be abused? Absolutely. Just don’t place all the blame on the expat. I lost a lot of money on house, cars, appliances, expensive groceries, whatever. Three years would make the ROI unattractive. I knowledge gained would be of limited benefit to others. I worked as an expat for a large service company early in my career. They limited an expat assignment in any country because they believed that the personal relationships the expat developed were counterproductive. They preferred to rotate the employee to another expat assignment to transfer the knowledge only and remove any friendship from the equation. They did, however, prefer to keep the employee as an expat because he, and his family, were “known quantities”. Of course if you were an expat and didn’t get divorced as a result, you simply weren’t working hard enough.

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Post ID: @3gte+QKbFeLr

In my last 3 expat assignments of 4 years each in Bangkok, Cabinda, and Balikpapan I have seen many of the so called expert were on a good-old-boy network. They had been going round this musical chair for 4 to 6 overseas assignments. Whereas those qualified engineers with cultural background and language skills are of the lesser consideration to be on the PDC for expatriate assignment.

My Iranian-born colleague who is as qualified (PMP consistently 2+) had told me a great story of how he was passed over for the (now defunct) PNZ project. I am not going to repeat his story here. He eventually left the company and went with one that recognized his contributions.

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Post ID: @2tuh+QKbFeLr

@2zuv is making a good point. If you want to deliver shareholder value especially in these times of cost pressure, look for expat headcount reduction and also reduction in the allowances. Cost savings from reducing one expat can be as much as 3 times the cost savings from letting a home country employee go. To address the issue freeloaders who bilk the gravy train, make sure that only people and positions that deliver value are retained. Do not renew contracts for anyone who is just hanging on just to collect the premiums and allowances. Local management needs to monitor that much more closely to keep the lid on costs.

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Post ID: @2tdr+QKbFeLr

High expact cycle rates are not in the interest of Chevron’s share holders. Cutting expact number might be, but local BU management should be the ones to determine that. Expact assignments as a “treat” to be shared by employees is a very stupid idea. If you want an expact assignment apply for open positions and make the case that you can provide value...full stop!

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Post ID: @2zuv+QKbFeLr

It is a question of doing the right thing for the employees and shareholders. Chevron needs to overhaul the expat system for the sake of running an efficient professional organization that delivers value to shareholders and treats all employees fairly. And that means getting rid of this gravy train. Cut the number of expats. Limit the duration of assignment. Cut the allowances into half. You don't borrow money to keep expat families forever at expensive locations. Pack them off after a three year period. Enough is enough!

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Post ID: @2xpa+QKbFeLr

@QKbFeLr-2rne, You must be mistaken. I don't know about the others posting here but I have been offered ex-pat assignments numerous times in my career and turned them down. Many of my colleagues feel the same way although probably don't read and post here much. I make as much or more working closer to home with much less inconvenience. I am also highly compensated and have traveled extensively world-wide. Nothing more to tell my friends and no need to falsely pretend that I am getting "educated in diverse exotic cultures", you know, the old ruse. Pretty much just an excuse for eating and drinking excessively. Been there, done that. Don't want/need to work or live in Kabinda, Angola, Papua, New Guinea, etc. or even AUS or Singapore,. Thanks for the sentiment, though - LOL!

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Post ID: @2ewv+QKbFeLr

Sounds like a lot of sour grapes from those frustrated they can not land a position on what they think would be the gravity train. Expacts are well compensated but also commonly have personal challenges in being distant from family ...that is the way it has always been. If a BU sees Expacts in general as lower value to cost or so for some reason would prefer high turnover in their expact employees (why that would be good is beyond me), then they should change their practices. That is not something that should be mandated by corporate! If you think it is such a good job assignment start applying! There are likely to be more positions open soon enough with the continued “crew change” and likely recovery in commodity prices. That said you might want to also position your skills so that you have something to offer the international BU to which you might apply! Good luck.

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Post ID: @2rne+QKbFeLr

For the most part, expat assignment = gravy train milking

Chevron needs to reform the Expat system completely. Cut the number of expats. Make the requirements more stringent. Limit the assignment period to strictly 3 years with a "must move back home" after 3 years.

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Post ID: @2mjl+QKbFeLr

-2hfn, You started off your rebuttal seemingly cool and under control. But you couldn’t contain your real temperament with your last word, “snoflake”. Sounds like you measure up as a perfect candidate for one of those Expat positions that you describe. Go apply for one.

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Post ID: @2jvg+QKbFeLr

@1vel, nothing Smart-aleck about it. It's simple, well known and has been acknowledged here and on many other threads and by anyone with even a speck of industry experience. Most Ex-pat workers are bottom feeding do-nothing incompetent overpaid milkers who are raping the system and cannot get a normal job at the home office, and definitely not one that pays as much.

That's not a joke, an exaggeration, nor hyperbole in any form. That's a FACT, snoflake.

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Post ID: @2hfn+QKbFeLr

@1ckc, each person has their likes and dislikes, their no-way and okay. Each one will willingly apply for and accept a foreign assignment if they choose the money over location. Don’t be a smartazz.

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Post ID: @1vel+QKbFeLr

Thailand used to famous for the expats who never left. A lot of them got their comeuppance this downturn.

Service companies never allow this BS. At one where I worked after 4 years in a location you lost expat benefits

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Post ID: @1tmf+QKbFeLr

I am appalled to read about the ABU example that @1nsb has described. How do they allow this? Expats assignments should be treated strictly as 3 year rotational assignments. That expat couple going on for the 10th year in ABU are for sure milking the system dry. I am sure that is just one of 100's of cases out there. How outrageous!

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Post ID: @1pit+QKbFeLr

I have never been as close to burn out as I was as an expat. I was working 50-60 hr weeks and was on call weeks at a time. The money was good but there was no free lunch.

Now back in houston I enjoy my lunch time run and my 9-80 off.

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Post ID: @1qqy+QKbFeLr

Unfortunately with the slashing of costs the glory days for expat jobs are over. Most locations have driven the expat count down to the bare minimum. Anybody who really enjoys working away from home and lands one of these positions should be grateful. Those without one should realize their chances of getting one are quite slim. You need to be a pretty consistent PMP 1 to compete.

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Post ID: @1tfr+QKbFeLr

Frj, should they accept a job in Angola for the love of the game?

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Post ID: @1ckc+QKbFeLr

9 out of 10 Expats seek and accept these international jobs for the money and nothing else.

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Post ID: @1frj+QKbFeLr

Usually expat assignments are filled by people who cannot cut in at the home office and found that offer was the only way to remain gainfully employed. It's fairly well known in the industry. Not always the sharpest tools in the shed and definitely overpaid gravy train milkers, as many have noted here. I have had to deal with a slew of incompetent expats in my 38 years in O&G. Now if you are lucky enough to land one of those high paying do-nothing sweet gigs to milk your company and co-workers, good for you, I guess. In most cases that's the only way you could have gotten the pay that you did, there's no way you are anywhere near worth that much. Consider it a gift and yourself lucky. You certainly didn't earn it out right.

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Post ID: @1rdo+QKbFeLr

Business units are free to select the best qualified applicants in each PDC. If no local applicants qualify then the best qualified expats get the job. Whiny millenials are typically not the best qualified as they have under 15 years experience. Since expats all cost about the same, regardless of PSG, it normally makes sense to get the most experienced ones. That said, if you are PSG 24 or higher and are not being selected for any job then you may have an issue.

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Post ID: @1ika+QKbFeLr

@1nsb, I know who you are talking about. I wont mention that here. But I wholeheartedly agree with you. Shame on them and shame on Chevron for allowing this to happen.

I dont know if anybody in Chevron management reads this. But it needs to be brought to their attention and Chevron needs to take some action about this dysfunction in the organization, that too in the midst of such cost pressures due to oil price recession.

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Post ID: @1ivr+QKbFeLr

There are two expats in ABU SCM who have been husband and wife milking the expat gravy train for over 10 years. What a waste of money and lack of support for Aussie workers. Getting double living away from home allowances and uplifts for some time. This is where Chevron excels at wasting money! Gravy train for the few! Shame on Chevron for allowing this to continue!

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Post ID: @1nsb+QKbFeLr

This is a good thread. All of you are making excellent points. This whole expat system should be overhauled. As #iadk puts it "after a maximum of 3 years, bring them back to fill US-based jobs and ship out another batch to gain international experience." Yes, after a maximum of 3 years, the expat employee should be made "MUST MOVE BACK TO HOME BASE." Then make them serve in home country for at least 3 years before letting them seek another expat position. This will help the company and shareholders getting fleeced by a few "professional expats" (as #idjd puts it) and make the system more equitable and functional. This will also help the goal of high potential employees needing development through international experience before going on to bigger and better things.

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Post ID: @1iiy+QKbFeLr

There are two sides to this story:

1) US employees are reluctant expats. Mainly due to spouse working or kids schools. Americans have no culture of traveling abroad when younger ( I am comparing to Europeans)

2) on the other side are the "professional expats" jumping from one location to other. These guys have built up formidable resumes not out of any great talent but just being at the right place, right time. They also have a big network due to the many people they meet on expat assignment. On expat assignment you also know their spouses, your kids are friends with their kids, so it's much closer bond.

We all know Chevron functions on who you know and not what you know.

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Post ID: @1djd+QKbFeLr

At the very least, all expat positions should be temporary. Rotate willing and qualified employees into these roles, but after a maximum of 3 years, bring them back to fill US-based jobs and ship out another batch to gain international experience. That is as fair as it should be.

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Post ID: @1adk+QKbFeLr

Expat opportunities are used by a concentrated few to feather their nests. They keep hogging these opportunities endlessly by continually extending their expat assignments or by hopping from one expat assignment to other. So it really enriches a few employees who do exactly the same work as the local employees. The argument about the expats bringing special skills is nothing but a myth and a joke. We do not need thousands of expat employees who are nothing more than money s---ing pests. I have seen plenty of incompetants among them making 3 times the money that excellent US based employees make. OP is correct. The company must take action to bring back 90% of the current expats. Will save a lot of money for the shareholders.

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Post ID: @1ddh+QKbFeLr

I was an Expat for 13 years, it's why I am enjoying retirement now :) Good Luck out there!

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Post ID: @jsf+QKbFeLr

You simple minded fool. Any global organization needs expats / they’re less than 5% of Chevron’s workforce . Some locations do not always have all required expertise / the company is committed to developing staff etc). Instead of complaining, go freaking apply In the Spring PDC. Let’s see how your wife that works quits her job likes it after spending a couple of winters in Atyrau and your teenage kids are complaining missing your cushy McMansion . Or you get sick from Malaria a few times in Lagos.

I guess you also think the CEO should take a pay cut so we can pay the dividends right? Just foolish .

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Post ID: @cbl+QKbFeLr

Defenitely could reduce expats in Houston. Makes no sense,

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Post ID: @azm+QKbFeLr

Life is good for those gravy train riders.

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Post ID: @ntc+QKbFeLr

How about those expat still hanging on in Thailand after 20 years?

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Post ID: @lna+QKbFeLr

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