2013 emea expatriate management conference

2013 EMEA EXPATRIATE MANAGEMENT CONFERENCE 11-12 APRIL 2013

DUAL CAREER ISSUES AND FAMILY SUPPORT

11 APRIL 2013

Ellyn Karetnick and Kate Fitzpatrick

Mercer, London

MERCER

Dual Career Issues and Family Support Agenda

• How are we defining dual career and family support?

– Spouse/partner career continuity and development

– Financial impact of assignments on dual income households

– Accompanying family considerations

– Non-accompanying family and carer responsibilities

• Key challenges and trends within each of these four areas

• Practical strategies that can encourage positive experiences and

outcomes for internationally mobile employees and their families

MERCER

SPOUSE/PARTNER CAREER CONTINUITY AND DEVELOPMENT

MERCER

Spouse/Partner Career Continuity and Development Poll Question

Thinking about your global mobility population, how many

assignees have spouses/partners who work in the home

location?

• Less than 50%

• 51-75%

• Over 75%

MERCER

Spouse/Partner Career Continuity and Development Workforce Participation Trends

Country Score Rank Country Score Rank

Mongolia 0.8387 1 Denmark 0.7724 16

Bahamas 0.8359 2 Philippines 0.7719 17

Burundi 0.8322 3 Gambia, The 0.7716 18

Norway 0.8300 4 Kazakhstan 0.7675 19

Malawi 0.8224 5 Latvia 0.7618 20

Lesotho 0.8163 6 Moldova 0.7608 21

Luxembourg 0.8147 7 Australia 0.7593 22

United States 0.8143 8 Benin 0.7591 23

Mozambique 0.7988 9 Netherlands 0.7578 24

Sweden 0.7957 10 Lithuania 0.7551 25

Barbados 0.7905 11 Ghana 0.7543 26

Canada 0.7877 12 Iceland 0.7540 27

Singapore 0.7876 13 Switzerland 0.7518 28

Finland 0.7847 14 Ireland 0.7514 29

New Zealand 0.7822 15 Brunei 0.7403 30

Economic Participation and Opportunity Rankings, 2012

Source: The Global Gender Gap Report, World Economic Forum 2012

MERCER

Spouse/Partner Career Continuity and Development Workforce Participation Trends

Country Score Rank Country Score Rank

Iceland 0.8640 1 Latvia 0.7572 15

Finland 0.8451 2 Luxembourg 0.7439 17

Norway 0.8403 3 United Kingdom 0.7433 18

Sweden 0.8159 4 Austria 0.7391 20

Ireland 0.7839 5 Spain 0.7266 26

Denmark 0.7777 7 Lithuania 0.7191 34

Switzerland 0.7672 10 Slovenia 0.7132 38

Netherlands 0.7659 11 Moldova 0.7101 45

Belgium 0.7652 12 Portugal 0.7071 47

Germany 0.7629 13 Croatia 0.7053 49

Top 20 European Country Rankings

Source: The Global Gender Gap Report, World Economic Forum 2012

MERCER

Spouse/Partner Career Continuity and Development Talent and Skills Gap

Talent Employers

There is a clear mismatch between

What’s

IN DEMAND and

What’s

AVAILABLE in the global talent pool

Talent & Skills Gap

24 million

unemployed in EU

13.3 million unemployed in

US

205 million unemployed

globally

6 million job vacancies in EU

3.3 million

job vacancies in US

Globally 34% of employers can’t fill available jobs

Source: U.S. Department of Labor – Bureau of Labor Statistics; 2011 Gallup Employment Survey; Manpower Group’s 2011 Talent Shortage Survey

MERCER

Spouse/Partner Career Continuity and Development Right to Work

‘Open’ Work Permit ’Simple’ Work Permit

Linked to Employer

‘Complex’ Work Permit

Linked to Employer

Can work for any employer

or be self-employed

Simple process or letter of

consent on offer of employment

No employment market test

Procedure < 4 weeks

Skills or employment market

test and/or quotas

May need to return to home

country

Procedure > 4 weeks

Countries include:

• Europeans in EU/EAA

(excl. Bulgaria, Romania)

• Australia

• Canada

• Hong Kong

• US (L and E visas)

Countries include:

• Japan (PT only)

• Malaysia

• Mexico

• Singapore

Countries include:

• China

• India

• Philippines

• Poland

• Taiwan

Source: The Permits Foundation, 2012

MERCER

FINANCIAL IMPACT OF ASSIGNMENTS ON DUAL INCOME HOUSEHOLDS

MERCER

Financial Impact of Assignments on Dual Income Households Poll Question

To what extent do you believe it is the responsibility of the

assignee’s employer to financially compensate for loss of

spouse/partner income for the duration of an assignment?

• Entirely

• Somewhat

• Not at all

MERCER April 12, 2013

Financial Impact of Assignments on Dual Income Households Current Policy and Practice Trends

Do you have a written policy on spouse support for your typical long term assignees?

World-

wide

North

America

Latin

America

Europe Asia

Pacific

We have a corporate policy that provides

general guidelines on the support or

benefits to be provided to the

accompanying spouse/partner

37.5% 37.6% 23.5% 51.9% 15.6%

We do not have a policy on spouse/partner

support but we are developing one or

planning to develop one

3.1% 2.4% - 3.8% 5.5%

We do not have a policy; spouse support

issues are generally handled case-by-case

11.8% 13.9% 14.7% 9.5% 9.2%

We do not have a policy on spouse/partner

support nor do we address the issue

43.6% 41.7% 61.8% 29.5% 67.9%

Other 4.0% 4.4% - 5.2% 1.8%

Source: Mercer Worldwide Survey of International Assignment Policies and Practices, 2012

MERCER

Financial Impact of Assignments on Dual Income Households Beyond Salary

UK China USA Sweden

Unemployment Benefits

State Retirement Benefits




State Medical Benefits

Maternity/Paternity Benefits










MERCER

Financial Impact of Assignments on Dual Income Households Assignment Costs, Benefits and Transparency

N.B.: Representative

sample only

MERCER

ACCOMPANYING FAMILY CONSIDERATIONS

MERCER

Accompanying Family Considerations Poll Question

How do you define ‘family’ within your international

assignment policies for the purposes of providing benefits?

• Spouse/partner and dependent children

• Spouse/partner, dependent children and other persons living

with and financially supported by the assignee

• Family not defined

MERCER April 12, 2013

Accompanying Family Considerations Current Policy and Practice Trends: Pre-Assignment Support

What types of support do you typically provide to assignees?

World-

wide

North

America

Latin

America

Europe Asia

Pacific

Formal home finding assistance 80.4% 85.9% 73.5% 83.1% 61.3%

Official support / visas provided by the Company 78.0% 80.2% 64.7% 85.5% 61.3%

Formal school-finding assistance 70.9% 76.6% 61.8% 73.9% 53.8%

Formal settling-in assistance 60.1% 69.1% 38.2% 62.3% 37.7%

Support with opening a bank account 59.9% 64.0% 50.0% 67.6% 38.7%

Support with opening utilities account 52.9% 59.8% 26.5% 59.4% 28.3%

Informal local support 42.5% 44.1% 52.9% 44.4% 32.1%

Introduction to other international assignees at

host

16.4% 15.3% 23.5% 15.5% 17.9%

Membership to sports/fitness clubs 6.2% 8.1% 8.8% 4.3% 1.9%

An allowance to cover destination services

(separate from a miscellaneous relocation

allowance)

6.1% 7.5% 8.8% 2.9% 7.5%

Membership to private social club 4.6% 4.8% 8.8% 4.8% 2.8%

None of the above 3.2% 2.1% - 1.4% 10.4%

Other 3.2% 1.8% 8.8% 3.4% 5.7%


MERCER

Do you provide education benefits for children of long term assignees?

World-

wide

North

America

Latin

America

Europe Asia

Pacific

Yes, we always cover education costs 46.6% 39.9% 62.9% 54.2% 49.5%

Yes, but only if local public education is

not considered suitable

36.5% 44.5% 14.3% 32.7% 30.6%

We do not have a defined policy and

handle these matters case-by-case

7.6% 8.3% 2.9% 6.5% 7.2%

No, we never do 4.0% 3.2% 5.7% 1.9% 7.2%

Other 5.3% 4.0% 14.3% 4.7% 5.4%

Accompanying Family Considerations Current Policy and Practice Trends: Education


MERCER

Accompanying Family Considerations Current Policy and Practice Trends: Day Care

Do you pay for day care assistance in the host country?

World-

wide

North

America

Latin

America

Europe Asia

Pacific

Yes, we pay for day care costs with no limit 1.4% 1.5% - 1.9% 0.9%

Yes, we pay for day care costs up to a limit 3.6% 1.2% 3.0% 9.1% 0.9%

We handle case-by-case 7.6% 8.3% 6.1% 7.7% 6.5%

Current policy does not address this

situation

10.1% 9.2% 15.2% 11.5% 9.3%

No, we do not pay for day care 77.3% 79.8% 75.8% 69.9% 82.4%

Source: Mercer Survey of International Assignment Worldwide Policies and Practices, 2012


MERCER

Accompanying Family Considerations Current Policy and Practice Trends: Day Care

Source: Mercer Survey of International Assignment Worldwide Policies and Practices, 2012

If you pay for day care costs up to a limit, please specify.

World-

wide

North

America

Latin

America

Europe Asia

Pacific

Fixed amount 8.7% - - 5.6% -

Only as a differential to home country

costs

47.8% - - 44.4% -

Only if partner works 8.7% - - 11.1% -

Other 34.8% - - 38.9% -


MERCER

NON-ACCOMPANYING FAMILY AND CARER RESPONSIBILITIES

MERCER

Non-Accompanying Family and Carer Responsibilities Poll Question

Do your global mobility policies support assignees with non-

accompanying family members and/or carer responsibilities

for family members remaining in the home location?

• Yes, we support non-accompanying immediate family

members (eg. spouse/partner and dependent children)

• Yes, we support non-accompanying dependent family

members (eg. spouse/partner, dependent children, and other

dependent adults such as elderly relatives)

• No support for non-accompanying family members is provided

MERCER

Non-Accompanying Family and Carer Responsibilities Current Policy and Practice Trends Which of the following best describes your definition of ‘family’ (for the purposes of

assignment related allowances?

World-

wide

North

America

Latin

America

Europe Asia

Pacific

Spouse/partner and legal dependant-

aged children

46.9% 50.3% 37.1% 42.0% 45.4%

Spouse/partner and dependent children

at school

12.9% 7.4% 11.4% 20.8% 14.8%

Spouse/partner and dependent children

at school or attending college or

university at the undergraduate level

19.5% 18.6% 25.7% 19.8% 22.2%

Spouse/partner, dependent children, and

other persons living with and supported

by the assignee

9.0% 9.5% 8.6% 11.3% 4.6%

We do not define family 11.7% 14.2% 17.1% 6.1% 13.0%


MERCER

Non-Accompanying Family and Carer Responsibilities Aging Population

MERCER

PRACTICAL STRATEGIES ‘WHERE TO FROM HERE?’

MERCER

Practical Strategies Creativity and Flexibility in Role Structure & Policy Segmentation

• Test your assignment business case

• Consider alternative policy types

• Explore other benefits within existing policies

• Differentiate the level of spouse/partner support provided based

on the assignment business value

MERCER

Segmentation by purpose reflects how assignments differ by business and development value and helps prioritize investment

Talent segmentation by primary business purpose clarifies how the assignment meets a business need, why people are being moved andhow different groups need to be managed, rewarded and retained

High

Hig

h

Low

Lo

w

Strategic Business Leaders

Fill mission-critical roles and deliver

specific, strategic business results.

Emerging/ High Potential Talents

International learning and development to

grow the next generation of leaders

Career-Building Volunteers (e.g., Generation Y)

International experience to fulfill

personal life objectives (opportunistic,

employee-driven moves)

Seasoned Technical Experts

Providing specialist skill, resource or

expertise to fill local gap; complete specific

project or task

Develo

pm

en

t V

alu

e

Business Value

Business-led resource planning and deployment

3

4

1

2

Corporate-led career pathways and succession management

Practical Strategies Creativity and Flexibility in Role Structure & Policy Segmentation

MERCER

Practical Strategies Spouse/Partner Career Continuity and Development

Strategy Cost

Impact

Difficulty of

administration

Encourage spouse/partner to explore options with

their own employer if possible (eg. career breaks,

remote working opportunities, host country transfer)

Low Low

Visa and work permit assistance in host countries

that permit a spouse/partner to be employed Low

Low (if 3rd party used)

Job search and networking assistance for paid or

volunteer opportunities at assignment

commencement and repatriation Moderate


Resume/CV writing assistance Low


Explore opportunities to offer employment to a

qualified spouse/partner within your organisation

if possible and appropriate

Low Moderate

MERCER

Practical Strategies Spouse/Partner Career Continuity and Development

Strategy Cost

Impact

Difficulty of

administration

Pre-departure and re-entry job hunting trips and

outplacement support before the move occurs Moderate Moderate

Tuition reimbursement (up to a cap) to allow the

spouse/partner to continue formal or informal

education in their chosen field or acquire new skills

Moderate Moderate

Personal development counseling: Career and

life-planning counseling to help acclimate to the new

situation and consider short and long term goals Moderate


Child care provisions to enable the spouse/partner

to work/volunteer where previously not a cost in the

home location (eg. due to proximity of family)

High

Low (cash/expense option)

MERCER

Practical Strategies Financial Impact of Assignments on Dual Income Households

Strategy Cost

Impact

Difficulty of

administration

Partial cash compensation replacement for

spouse/partner. Alternately can be used to

contribute to maintenance of home country social

security/pension arrangements

High Moderate

Increased employee cash compensation, bonus

and non-cash benefits, where appropriate and

equitable

High Moderate

Tax compliance and planning assistance for the

spouse/partner; and/or tax equalization of

spouse/partner income if moving to a high tax

jurisdiction

High (potential)


Support package: Lump sum amount to be used

for a selection of support programs

Moderate


MERCER

Practical Strategies Financial Impact of Assignments on Dual Income Households

Strategy Cost

Impact

Difficulty of

administration

Financially and/or administratively support

continuity of contribution to state benefits where

possible

High (potential)

Moderate (if 3rd party used)


continuity of pension contributions where

possible

High High


continuity of medical insurance benefits where

possible

Moderate (potential)

Moderate

M

Encourage assignee to rent out any home

country property for additional income opportunity

High (+ for assignee)

Moderate (for assignee)

MERCER

Practical Strategies Accompanying Family Considerations

Strategy Cost

Impact

Difficulty of

administration

Pre-assignment counseling and site visit for

the whole family to ensure all family members are

the right fit for the assignment and host location

Moderate


Couple/family counseling at any point before or

during the assignment, especially if the family

experiences a serious personal situation

Moderate


Cultural training for all family members to

encourage local integration to help adjust to

change and create host location networks

Moderate


Relocation and school search assistance to

help with the administration of settling in and to

network quickly with neighborhood

contacts/expatriate communities

Moderate


MERCER

Practical Strategies Non-Accompanying Family and Carer Responsibilities

Strategy Cost

Impact

Difficulty of

administration

Review definition of family in policies to

accommodate dependent family members other

than children where possible and required

High (potential)

Low

Consider additional home leave trips/leave to

allow assignees (or spouse/partner) to manage

family affairs/carer arrangements

Moderate

Low

MERCER

Spouse/Partner Career Continuity & Development

• Workforce participation rates and wage gaps by

gender are equalizing year-on-year

• Global talent and skills gap issue impacts everyone, including employers of spouses/partners of your prospective assignees

• Right to work for spouses/partners is a critically important immigration issue

Financial Impact on Dual Income Households

• Policy trends show spouse/partner support limited to employment or development enablement activities, but do not directly address the potential loss of household income issue

• Goes beyond net salary – spouse statutory and employer-provided benefits are also impacted

• Assisting assignees to understand the full value and financial impact of an international assignment is key

Accompanying Family Considerations

• Relocation support is prevalent in the market re: orientation, home find and school search services

• Host country education costs are still predominantly met by companies

• Day care is provided by only a very limited number of companies

Non-Accompanying Family and Carer Responsibilities

• Majority of global mobility policies define family as immediate and do not consider other dependent family members for the purposes of benefit provision

• Aging population issues are likely to increase the extended family responsibilities of assignees and their spouse/partners

• This is a sensitive, emotive issue that will continue to impact talent mobility in the years ahead

Practical Strategies Summary

MERCER

“Dual career or spousal assistance is a support

element that, when provided, decreases the attrition

rate in both the short and long term. In times of

economic uncertainly, it may be more difficult for an

employee to ask a spouse/partner to give up a

promising career or necessary pay check …. Support

takes diverse forms but knowing that the company

acknowledges the issue sends an encouraging

message to the expatriate”.

Source: Global Mobility Metrics: Focus on Retaining Key Talent, Mercer 2011

MERCER

QUESTIONS?

2013 emea expatriate management conference

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