ey human capital conference 2012: contrast and compare - the global mobility effectiveness survey

2012 Human Capital Conference23–26 October

Contrast and compare: the Gl b l M bilit Eff tiGlobal Mobility Effectiveness Survey

Disclaimer

► Ernst & Young refers to the global organization of member firms of E t & Y Gl b l Li it d h f hi h i t l l titErnst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US.Thi t ti i © 2012 E t & Y LLP All i ht d N► This presentation is © 2012 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying facsimile transmission recording rekeyingincluding by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or distribution of this form or any of the material herein is prohibited and is d st but o o t s o o a y o t e ate a e e s p o b ted a d sin violation of US and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party.

► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP.

Contrast and compare: the Global Mobility Effectiveness Survey

Presenters

► Kevin Cornelius► Ernst & Young Ltd, Switzerland► [email protected]


Survey methodology

► Comprehensively capturing the p y p gcurrent state of global mobility: its operational effectiveness and issues it is facingissues it is facing

► February to May 2012► 520 multinational companies► 520 multinational companies

surveyed► Six case studies► Ernst & Young analysis and

commentary


Ernst & Young 2012 Global Mobility Effectiveness Survey reportEffectiveness Survey report

Industry sector-specific reports

Media release

Available todayAvailable today


A common message from global mobility professionals everywhereprofessionals everywhere

“Operational workload keeps mobility functions away from strategic thinking ”from strategic thinking.”

— Chris Debner, Human Capital Executive Director, Ernst & Young Ltd

“Many companies will wait until they have a major compliance failure.”

— Jay Sternberg, Global Leader for Short-Term Business Visitor Solutions, Ernst & Young LLP

“Senior leaders require us to be more closely aligned with workforce planning, talent management and

“B i h ld d t d th i t f

p g, gorganizational development.”

— Craig McEvoy, Head of Global Mobility for Brazil-based Vale

“Business should understand the importance of international experience.”

— Janelle Parkinson, Head of Global Mobility, Recognition & Benefits, Group Reward


Our global mobility effectivness surveys


2008 Global Mobility Effectiveness SurveyFirst edition

► Recognition of need for improvement in:g p► Automation of administrative tasks► Development and enhancement of global mobility functions► Processes ► Risk management► Prevention of early repatriation and talent loss► Prevention of early repatriation and talent loss ► Shift to strategic issues and goals to be a stronger business

partner


2009 Global Mobility Effectiveness Survey Cost and control

► Repatriation key issue: 5% of assignees have left their p y % gcompany within two years after repatriation.

► 61% of international human resources (IHR) teams are ( )not involved in the assignee selection process.

► 28% differentiate between strategic and developmental policies.

► Only 20% of companies know their true cost.► 81% of companies say they are planning cost reduction.► There are three key areas of focus for managing cost:

► Global mobility processes► Localizations► Policies


► Policies

2010 Global Mobility Effectiveness Survey Lessons from changeg

► A new global economic picture has emerged.g p g► IHR teams have increased involvement in assignees

selection.► More than half of companies are reviewing their Global

mobility policies within next six months.► 54% of companies report a bigger focus on risk.► 77% of companies are looking for cost savings, but only

9% were able to accurately access cost.► Only 57% actually reduced cost (of these, 74% achieved

less than 10% cost savings).


2011 Global Mobility Effectiveness Survey Competing for growthp g g

► Economic turbulence, natural disasters, uprisings and fli t ff t thconflicts affect growth.

► Long- and short-term assignments are increasing.Th i f IHR t i i i b t t t ffi i t► The size of IHR teams is increasing, but not yet sufficient.

► 60% of companies have reviewed their policies in the last 12 months12 months.

► There has been a significant increase of assignees into growth markets over last three years: India 80% Africagrowth markets over last three years: India 80%, Africa 75%, Brazil 71%, Russia 43%, China 23%.

► 83% of inbound assignees are strategic resources► 83% of inbound assignees are strategic resources inbound.

► Outbound assignees have significantly increased.


g g y

2012 Global Mobility Effectiveness Survey Driving business successg

► Global Mobility today:y y► On the rise► Focused on growth markets► Business critical► Evolving► HQ centralized► HQ centralized


Strategy and operations disconnect

► Key issues:y► Understaffing► Evolving regulations► Talent management agenda► Compliance frameworks► Early repatriations► Early repatriations► Future leaders


Growing beyond themes

Global mobility isTalent management and global mobility areworking along parallel lines

Global mobility is increasingly a key feature in driving business success

Globalization has had a

Global mobilityStrategy

► Directing talent and new investments to growth markets

► Changing business strategies Mobility strategy must better align with business strategy

dramatic effect on business models

StrategyOperations

TalentGrowth markets

► Evolving global mobility strategies► Focus on operational

effectiveness

Global mobility is not yet achieving

Expansion in emerging markets is y g

its full operational potential

g gon the rise, but it is creating compliance challenges


Strategy, operations, growth, talent

Global mobility strategy

Increasing number of global mobility assignments

400Short-term

1 500Long-term

350

400

1 400

1,500

300

350

1 300

1,400

3002012 2013 2014

1,3002012 2013 2014



Global mobility is about today; talent management is about tomorrowtomorrow.► Top priorities for global mobility:

► Business needs for the current year► Business needs for the current year► Successfully moving the assignee► Create an international talent pool for future leadersp



Missing long-term link between global mobility and global talent management► What is the link between Global Mobility and Talent

Management?

talent management► The link between global mobility and talent

management:Management?g► Assignees selected case by case► Assignments designed to form future leaders► Immediate business needs, no long-term planning


Operations

Internal barriers are cited as No. 1 cause of inefficiency.

8%5%

35%16%

External barriers

Business (late decision taking)taking)Assignees (negotiations)

Resources (understaffed IHR)

Internal barriers

36%

IHR)Internal communication

barriers


Operations

Sixty-eight percent of companies do not have a formal payroll tax and social security compliance risk control framework.

C i f i h i i di i l► Companies are focusing their immediate operational needs on:► Processes► Processes► Policy► Communication► Tax compliance


Operations

Sixty-five percent of surveyed companies do not have a t ki f b d b i t ltracking process for cross-border business travelers.► Companies state their main compliance risks as:

► Income tax reporting and withholding► Income tax reporting and withholding► Short-term business travelers► Immigration► Immigration► Social security reporting and withholding


Growth markets countries

Inbound assignments in growth markets versus other have increased 48% from 2011 and will increase 60% in two to three years. y

113%

ChinaAfrica

133%120% 150%

120%135%

113%131%

B il

RussiaIndia

113%175%

133% 167%

Brazil20112012

2015


“Assignments premised solely on reward ”have higher risk of failure”

— Ray Harraway, Ernst & Young (Pty) Ltd, Partner, Human Capital, South Africa


Growth markets countries

Brazil

Main issues in growth market countries

Brazil

Russia

India

ChinaChina

Africa

Compliance Security Compensation Housing Schooling


Growth market countries

Managerial and strategic goals are the top drivers for i ll th k t t imoves in all growth market countries

36%

35%

23%

23%

39%3%

Brazil

36%

23%

23%

39%

37%

4%Russia

India

35%24%

37%

39%

4%

2%China

Project-based work

Developmental

38%23%

35%30%

AfricaStrategic/managerial

Other


Talent management

Only half of companies have a global talent management d

► Distinct differences between companies headquartered in:

agenda.

59%Europe

50%

48%

Africa

North America

41%Asia-Pacific

13%South America


Talent management

Ninety-two percent of companies say they do not use i l di t i t ith th i i t l tsocial media to communicate with their assignee talent.


Review Global mobilityAnalyze

Review yAnalyze

InvolveAssess risksAssess risks

IntegrateTalent management

IntegrateTalent management


Five focus areas for global mobility to drive business successbusiness success

Build robust and global

Evaluate your true operational

Alignment of global

Dynamic management

Integrate talent

compliance frameworks

effectivenessmobility to business strategy

of growth market opportunities

management and global mobility


At the end of the day, it is about getting:

► the right persong p► at the right time► in the right place► in the right place► for the right cost.


Questions


ey human capital conference 2012: contrast and compare - the global mobility effectiveness survey

Business

head of global mobility

global leader

mobility effectivenessglobal

disclaimer ernst young

ernst young ltdmany

ibut t t ffi

new global economic

o o t s o o