desiree fulton global mobility, tax & immigration policy scotiabank ... · deploying talent on...

Deploying Talent on Short Term Assignments

Desiree Fulton Global Mobility, Tax & Immigration Policy

Scotiabank

Jennifer Connell, SGMS, CRP Manager, Consulting Services

Weichert Relocation Resources Inc.

Agenda

Short Term Assignments

Drivers of Short Term Assignments and Alternative Programs

Example of Short Term Assignment: Scotiabank

Alternative Assignments

CERC Conference 2012


Significantly Increase

Increase

Remain Unchanged

Decrease

Significantly Decrease

6%

40%

43%

0%

9%

5%

27%

54%

7%

10%

2010

2012

Volume Expectations for Short Term Assignments

CERC Survey, Trends and Volumes for 2012

Why Short-Term and Alternative Assignments?

Greater pressure to respond to business unit needs.

The speed of business is accelerating the

increase in alternative assignments

more than cost savings.

– 57% of employers worldwide feel the

talent shortage is preventing them from

growing.

“The Human Age” – A new era where

people are recognized to an unprecedented

level as the key to companies’ success and

economic prosperity. (ManpowerGroup)

Short-term assignments are increasing at a faster rate than traditional

“long-term” assignments, a trend confirmed by numerous surveys.

Expected to increase somewhat or significantly by 14% (CERC)

Expectations for long-term assignments and permanent transfers in 2012 are

consistent with those reported in 2010


Changing employee

demographics

Skills gaps and “critical” labor

shortage

Evolving corporate needs (e.g. growth into new markets)

Cost containment and transparency

Alignment with Talent

Management

Strategic Role of Mobility


6

Key Business Drivers



Short Term Assignment Challenges

• STAs aren’t as easy to manage as anticipated

• Companies may relocate more employees more frequently

on STAs, thus boosting overall program costs

• Unexpected tax consequences if assignments aren’t

executed properly

• If the assignment transitions into long-term, it may change

the assignee’s tax status

• Short-term assignments don’t always result in full cultural

assimilation, which is key to developing global leaders and a

big part of ROI for any international move

Scotiabank

Desiree Fulton Global Mobility, Tax & Immigration Policy

Global Mobility Policy – Short-Term Assignments


Scotiabank Profile

1

77,000 employees, 55 countries, 19 million customers

3 Core business lines, Canadian Banking, International Banking, Global

Banking Markets

2011 Annual Report:

– 5.3 billion profit 2011, up from 4.3 billion 2010

Scotiabank Markets

2 CERC Conference 2012

Scotiabank Culture


Scotiabank Global Mobility Statistics

Total Global Mobility assignments: 239

Total Long-Term Assignments 208

Total Short-Term Assignments 31 (13% of total)

STA structure supports development, projects, training

Typically, Director level or less

Typically, younger demographic, single or married, no children


Scotiabank Configuration

Global Mobility Policy & Administration is centralized

Business line HR assists business line management in selecting candidate

Global Mobility Admin prepares all assignment letter & compensation packages globally

Outsourced: Relocation vendor; Tax & Immigration; Cultural Orientation; Language

Global Mobility is only “approver” of exceptions; exceptions are minimal; tracked by relocation vendor & reported monthly

STA costs usually shared by home & host locations


Scotiabank – STA “Package”

6

Applied to assignments > 6 months < 24 months

Monthly Cost of Living Allowance (COLA) based on host city

Country Allowance, if applicable (% of base)

One bedroom furnished accommodation

Excess baggage to ship personal goods

Family remains in home location principle residence

Frequent home visits

< 10 hrs flight time = every 8 weeks

> 10 hrs flight time = every 12 weeks

Tax equalization – employment income

Tax consulting; annual tax filing preparation home & host

Immigration consulting; work permit issuance / tracking

Global Mobility is only “approver” of exceptions; exceptions are minimal; tracked by relocation vendor & reported monthly

STA costs usually shared by home & host locations


Scotiabank - GM Policy Review

More guidance / definition to assist business line in determining “type” of assignment structure appropriate

Greater involvement with Talent Management group to identify top talent developlment / strategic leadership positions & paths

STA perceived as “cheaper” than long-term assignment package, but often equal to, or greater cost

Exception requests for flexibility on STA home visits

Exception requests for flexibility on STA family accompanying assignee


Draft Model for Differentiating Assignee/Assignment Types

Talent based framework to determine assignment type and drive the mobility package provided to the employee

Two dimensions:

1. Development value and

2. business value/need

Development

Value

Higher

Lower

Lower Higher Business Value/Need

Target Employees: Source Pool (Emerging Leader)

Learning Experience

Target Employees: Top Talent Key Person

Strategic Leadership Opportunity - Key Job at Division

Target Employees: Employee initiated moves

Commodity Job – Non Strategic Roles GM Approach: Expectation of 3-5 yrs. Career management process to obtain next role.

Target Employees: Critical Resource**

Skilled Position (management or technical)

GM Approach: Bank has no plans /expectations for employee to return to existing location

GM Financial Approach: Minimal assistance or support provided by the Bank.

GM Approach: Expectation that employee will be on assignment (2 years or less). Career management process to obtain next role.

GM Financial Approach: Participant will bear some of the costs.

GM Financial Approach: Full assistance no Mobility incentive req’d Accommodation of some exceptions

GM Approach: Expectation of 3-5 yrs. Career management process to obtain next role.

GM Financial Approach: Full assistance Mobility incentive appropriate Accommodation of reasonable exceptions to facilitate

8

Facts - Employees on Assignment Globally

Duration of Current Assignments: 28% Less than 1 year 55% 1 – 5 years 14% 5 – 10 years 3% More than 10 years

Business Line Breakdown: 77% International Banking 10% Global Wealth Management Including GTB 8% Global Banking & Markets (excluding local plus)

5% Corporate Functions

Number of Years of Service: 13% Less than 5 years 33% 5 – 15 years 26% 15 – 25 years 15% 25 - 35 years 13% Over 35 years

Level Breakdown: 5% SVP 26% VP 43% Director

14% level 8 12% level 7

The ratio of men to women on assignment is 3:1


18

Alternative Programs - Volume Expectations


Commuter Assignments

COMMUTER

ASSIGNMENTS

Yes Formal Policy

61%

58%

Assignment involving travel between home and destination

countries for a specified number of days per month, with a

set maximum of return trips home. The employee typically

stays on home country payroll but expected to work in the

host country on a frequent/defined basis.

Benefits provided:

97% Immigration

94% Tax Consultation/Return Preparation

92% Home/Host Travel

75% Tax Equalization

61% Host Transportation Allowance

61% Temporary Living

50% Extra Baggage


Extended Business Travel

EXTENDED

BUSINESS

TRAVEL

72%

32%

Yes Formal Policy

Employee travels regularly to an international location for an

extended period of time (typically up to 1-2 weeks) to work

on key business projects.

Benefits most frequently provided:

•97% Immigration

•69% Home/Host Travel

•66% Temporary Living

•51% Tax Consultation/Return Preparation

•49% Host Transportation Allowance


Rotational Assignments

ROTATIONAL

ASSIGNMENTS

42%

71%

Yes Formal Policy

A series of two or more assignments, typically short in

duration (e.g. 1-3 months) with the employee returning to the

home location for a set period of time, or to a different

location.


•Immigration

•Tax Consultation/Return Preparation

•Host Transportation Allowance

•Home/Host Travel

•Tax Equalization

•Temporary Living (host)

•Extra Baggage

•Housing Allowance

•Hardship/Location Premium


Core-Flex

CORE-FLEX

20%

91%

Yes Formal Policy

A program in which a basic set of fixed (“Core”) and

optional (“Flex”) benefits are provided, resulting in an

assignment/transfer package that is customized to the

employee’s circumstances and needs or the budget/cost

constraints of the business unit.


Core Flex

Immigration Language Training

Tax Consultation/Return

Preparation

Cross-Cultural Training

Medical Exam/Vaccinations Pre-transfer Trip

Miscellaneous Allowance Housing Allowance

Household Goods Settling-in Services


23

Which Programs are Most Effective?

87%

78% 74%

85% 81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commuter EBT Local Plus Rotational Core/Flex


desiree fulton global mobility, tax & immigration policy scotiabank ... · deploying talent on...

Documents