ey human capital conference 2012: global employee mobility - policy trends around the world 2012
DESCRIPTION
A look at the trends affecting employee mobility from a global perspective, in Asia-Pacific, the Americas and Europe.TRANSCRIPT
2012 Human Capital Conference23–26 October
Policy trends around th ldthe world
Disclaimer
► Ernst & Young refers to the global organization of member firms of Ernst & 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.
► This presentation is (c) 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,distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP Any reproduction transmission orpermission from Ernst & Young LLP. Any reproduction, transmission or distribution of this form or any of the material herein is prohibited and is in violation of US and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or itsdisclaims 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
Policy trends around the worldPage 2
those of Ernst & Young LLP.
Presenters
► Chris Debner ► Raffaela Donnelly► Ernst & Young Ltd.► [email protected]
y► Ernst & Young LLP► [email protected]
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Agenda – policy trends around the world
► Global trends: ► Shortening of review cycles/linking talent management to global mobility► Increase in localizations/Generation Y/flexibility and alignment
► Asia-Pacific: ► Increase in the Asia-Pacific outbound assignments► A shift toward global policies versus Asia Pacific/country specific policies► A shift toward global policies versus Asia-Pacific/country-specific policies► Focus on the improvement of mobility function
► Americas: ► Balancing between business and individual needs► Balancing between business and individual needs► Increase in focus on tax and immigration compliance ► Renewed focus by the U.S. Department of Justice (DOJ) on the Foreign Corrupt Practices Act
(FCPA) ► Europe:
► Increase in strategic outbound assignments into emerging markets► Tracking of exceptions and total costs
U i bilit li i t t th ll t i bilit t t
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► Using mobility policies to support the overall sustainability strategy
Global trends
► Shortening of review cycles► Shortening of review cycles► Linking mobility to talent management► Increasing localization of ultra long-term expatriates► Increasing localization of ultra long term expatriates► Aligning policies with the expectations of Generation Y► Ongoing attempts to make mobility programs more► Ongoing attempts to make mobility programs more
flexible and to align them with business needs
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Alignment leads to flexibility
Results
Efficient processes facilitating rapid
deploymentLabor dynamics • • •
Business needs • • •
Strategy
Improved financial results and cost
transparencyEmerging markets • • •
Competition • • •
Strategy
Risk minimization/protecting the brand
g g
Economic environment • • •
Globallymobile
workforceStructureProcess
Alternative mobility models to promote
flexibility and
Legislative developments • • •
Regulatory scrutiny • • •Policy
yagility
Public perception • • •
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Trends in Asia-Pacific
► Increase in the Asia-Pacific outbound assignments:► Increase in the Asia Pacific outbound assignments:► Increase in the number of Chinese nationals inbound assignees
from multinationals globally
► A shift toward global policies:► Move away from Asia-Pacific/country-specific policies
F h i f bili f i► Focus on the improvement of mobility function:► Lack of global mobility for professional talent
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Trends in Americas
► Balancing between business and individual needs:► Aligning policy terms with workforce deployment strategy► Cost effectiveness analysis of policies; introduction of flex programs► Nontraditional assignments such as commuters extended business► Nontraditional assignments such as commuters, extended business
travelers and rotators due to dual career families and assignees juggling children and elderly parents
Increased foc s on compliance dialing for dollars► Increased focus on compliance – dialing for dollars:► Tightening up of language around tax and immigration requirements
and consequences for noncompliance► Renewed focus by the DOJ on the Foreign Corrupt Practices
Act (FCPA):► Review of code of conduct with references to FCPA and the► Review of code of conduct with references to FCPA and the
UK Bribery Act
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Trends in Europe
► Increase in strategic outbound assignments into emerging► Increase in strategic outbound assignments into emerging markets:► Companies are looking for new markets to sustain growth
► Tracking of exceptions and total costs:► Introduction of new reporting processes and tools
► Using mobility policies to support sustainability strategy:► Promoting globally consistent assignment conditions, international
development career opportunities and diversity managementdevelopment, career opportunities and diversity management
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Split of policies – introduction
Full localization/ Host-based policies:
Local plus policies: Assignment light policies:
Assignment policies:Host based policies:
► Employee-initiated permanent transfers
► Cross-border
► Developmental long-term and short-term assignments
► Company-initiated
p
► Developmental long-term and short-term
► Knowledge sharing
► Strategic long-term and short-term assignments
► Commuters (e gcommuters
► Weekly commuters
► Company-initiated permanent transfers
► Foreign local hires► Localizations
► Routine/ technical assignments
► Commuters (e.g., project driven)
► Rotators (hardship locations)
Only compliance-related benefits
Flexible light assignment/transfer benefits Traditional/rich assignment benefits
Host country base:► Host salary structure► Host taxation► Host payroll
Home country base:► Home salary structure, cost of living adjusted► Tax equalized to home country► Often split payrollp y p p y
Developmental Strategic
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Low cost High cost
Case study 1 Split into four business casesp
► Home-based assignments:g► Home based salary► Cost of living allowance/per diems► Tax equalization► Home social security and pension, if possible
Short termBusiness case/ DevelopShort-term projectspackage
defined benefits
Develop-mental Technical Strategic
Core benefits
Home-based assignments
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Case study 2 Split into eight business casesp g
Commuter Short-term Long-term Employee driven
Assignment platformH t h
Transfer platform H t t h
Assignment platform Transfer platform
Home country approach Host country approach
► Home country approach► Tax equalization
H i l it d
p► Host country approach► Host taxation► Host or home social security► Home social security and
pension, if possible► Host or home social security
and pension
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Case study 3Country combination defined assignment packages – maxing out host-based approaches
DE/FR DE/NL FR/DE FR/NL NL/DE NL/FRFrom/ToC it i DE/FR DE/NL FR/DE FR/NL NL/DE NL/FR
Immigration
Base salary
Criteria
Income tax
Social security tax
Company pension planSocial security benefits
Hardship
Cost of living
Final localization option
Local plusLocalization/local package
Localization not possible/home-based assignment policy applies
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Case study 4Policy configurator – future of policies y g p
► Chose policy elements step by stepp y p y p► Exemplary set-up:
► Home/host approachpp► Compliance package► Family package► Hardship package► Upgrade package – Silver► Upgrade package – Gold► Upgrade package – Gold
► Cost calculation by the side► Clear selection/eligibility criteria at each level► Clear selection/eligibility criteria at each level
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Questions
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