industry breakout session - imercer · 2015. 5. 4. · regional hub(s) covering several ... more...
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INDUSTRY BREAKOUTSESSIONFINANCE AND SERVICES
2 3 – 2 4 A P R I L , M A D R I D
A G E N D A
Organisation Models: How the International Mobility function is structuredEmmanuel Rivere, Mercer
The Generali Story: International Mobility @ Generali GroupSamuele Zoccari, Generali
Governance ConsiderationsKate Fitzpatrick, Mercer
M A K E T O M O R R O W , T O D AY
THE ORGANISATIONMODELSHOW THE INTERNATIONALMOBILITY FUNCTION ISSTRUCTURED
Organisation
I N TE RN ATI O N AL M O B I LI TYTHE GLOBAL P ICTURE
OPE
RAT
ION
AL
&ST
RAT
EGIC
CANDIDATE SELECTION
CAREER MANAGEMENT
SUCCESSION PLANS
RETENTION
INTERNATIONAL MOBILITY POLICIES
GLOBAL BENEFITS MANAGEMENT
OPERATIONAL EFFICIENCY
GLOBAL IM COSTS
COMPLIANCE
TAX POLICIES
GOVERNANCE
VENDORS MANAGEMENT
ASSGNT TYPE QUALIFICATION
PACKAGE DESIGN
SOCIAL SET UP
CONTRACT
ROLES & RESPONSIBILITIES
EXPERTISE LOCATION
ADDED VALUE of TASKS
INFO
RM
ATION
SYSTEMS
HR Comp. & Ben / IM manager
Front Office Processes
IMMIGRATION
SOCIAL COVERAGE REGISTRATION
MOVING
RELOCATION
Mid-Office Processes
PAYROLL
HRIS UPDATES
Back Office ProcessesOperational Processes
PRO
VIDER
S(Tax,R
elocation,Payroll..)
C O P Y R I G H T M E R C E R 2 0 1 5
O R G AN I SATI O N M O DE LKEY QUESTION
ORGANISATION MODEL
DECENTRALISATION
CENTRALISATION
SEMI-CENTRALISATION
?What processes canbe decentralised ?
What makes sense tobe centralised ?
Global vs Local
C O P Y R I G H T M E R C E R 2 0 1 5
O R G AN I SATI O N M O DE LINFLUENCING PARAMETERS
COMPANYCULTURE &MATURITY
VOLUME OFEXPATRIATES
NUMBER OFDEDICATEDRESOURCES
LEVEL OFOUTSOURCING
C O P Y R I G H T M E R C E R 2 0 1 5
O R G AN I SATI O N M O DE LINFLUENCING PARAMETERS
Companiesstarting to growabroad
Companiesfast growingabroad
Multinationalcorporations
ContextSending their firstexpatriates,No dedicatedresources normobility skills
ContextHigh volume of expatsDedicated resources /departments, withskilled andexperienced people
ContextHaving alreadysomeexpatriates,Few dedicatedresources,people startingbeing skilled
C O P Y R I G H T M E R C E R 2 0 1 5
O R G AN I SATI O N M O DE LMARKET DATA
50.0%
45.0%
5.0%
Centralised: Totally managed by theglobal mobility administration teamwithin a corporate center
Partly centralized: sharing ofadministrative responsibilities betweenthe global mobility administration teamand the regional/local offices, businessunitsFully decentralized: managedcompletely by home and host officeswithout involving the global mobilityadministration team
How centralised is your international assignment administration ?(Services and Financial sectors)
Source: Worldwide International Assignment Policies and Practices Survey - April 2015
C O P Y R I G H T M E R C E R 2 0 1 5
O R G AN I SATI O N M O DE LMARKET DATA
Which of the following best describes your company’s global mobilityadministration service model ? (Services and Financial sectors)
21.3%
73.8%
5.0%.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
In-house: Mobility servicesprovided by corporate
representatives
Partially outsourced/co-sourced: certain functionsperformed by corporate
representatives with othersperformed by a single ormultiple service providers
Fully outsourced: strategicplanning performed by
corporate representativeswith the majority of thetransactional mobility
functions performed bysingle or multiple service
providers
Source: Worldwide International Assignment Policies and Practices Survey - April 2015
C O P Y R I G H T M E R C E R 2 0 1 5
O R G AN I SATI O N M O DE LINFLUENCING PARAMETERS
COMPANYCULTURE &MATURITY
VOLUME OFEXPATRIATES
NUMBER OFDEDICATEDRESOURCES
LEVEL OFOUTSOURCING
C O P Y R I G H T M E R C E R 2 0 1 5
M AI N D E LI V ERY M O D EL SWO RLDWIDE / CENTRAL HUB
Corporate, coordinationand expertise driven
Central / Worldwide Hub,GEC, Outsourced
Transactional driven
Home and Host countriesMulti-disciplinary skills
HR / Finance / Tax / Legal / Payroll
C O P Y R I G H T M E R C E R 2 0 1 5
M AI N D E LI V ERY M O D EL SWORL DWIDE / SEM I -DECENTRALISED
Corporate, coordinationand expertise driven
(Global EmploymentCompany)
Home and Host countriesMulti-disciplinary skills
HR / Finance / Tax / Legal / Payroll
Regional hub(s)covering several
countries / regions
C O P Y R I G H T M E R C E R 2 0 1 5
I N TE RN ATI O N AL M O BI L I TY O R G AN I SATI O NIN ALL CASES…
• Strong governance & communication
• Roles and Responsibilities clearly defined, formalised and shared among the Group
• Ongoing improvement (“Down – top”)
M A K E T O M O R R O W , T O D AY
GENERALIINTERNATIONAL MOBILITY @GENERALI GROUP
Generali Group at a glance
International Mobility facts and figures
IM transformation process in Generali
1
2
3
A G E N D A
A G E N D A
Generali Group at a glance
International Mobility facts and figures
IM transformation process in Generali
1
2
3
• 77,000 employees worldwide
• Present in over 60 Countries
• €500 billion assets under management,a property portfolio worth €28 billion
• Key player in Continental Europe,biggest Life Insurer
• 1st in Italy, 2nd in Germany, 3rd in France
• 65 million customers,sales network of over 82,000 professionals
• One of the world’s 50 largest companies (Fortune 500)
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PG E N E R A L I G R O U P A T A G L A N C E
Assicurazioni Generaliestablished in 1831 in TriesteMore than 500 Companies worldwide
7 Business Countries/Regions: ITALY, GERMANY, FRANCE, EMEA, CEE, AMERICAS, ASIA1 BU: Global Business Lines
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PG E N E R A L I G R O U P A T A G L A N C E
“We cannot simply react to ourcustomers; we need to be pro-active, tellthem what the best solution is, whilealways keeping our customers’ interestsat heart.”
Mario Greco Group CEO
Ø More than two thirds of its revenues are generated outside itshome country, making the Group a truly global organization. TheGenerali Group is the largest European life insurer, with leadingmarket positions in many regions, most notably in Germany, Italy,France and Central-Eastern Europe. Its operations in Latin Americaboast significant market shares and the Group is currently investing toexpand its footprint in Asia.
Ø Moreover, Generali is Europe’s market leader in direct channelsand the world’s market leader in the employee benefits and careservices sectors.
Ø In the early 21st century, the Group expanded to China andseveral other Asian markets and created GPH, (now Generali CEEHolding) the holding company controlling the operations in Central-Eastern Europe. Through GPH, Generali is now one of the leadinginsurers in the region.
Ø In 2013, a new chapter of the Group’s life began, with the launch ofthe new turnaround strategy aimed at reestablishing its position as aleading global insurance group.
Ø With the aim of building a unique identity across the whole Group, in2014 a single logo will be used by all the Group’s Generali-branded companies. The new, single logo is a restored version of theLion of San Marco. The common visual identity will enable tostrengthen the Group’s intangible assets.
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PG E N E R A L I G R O U P A T A G L A N C E
A G E N D A
Generali Group at a glance
International Mobility facts and figures
IM transformation process in Generali
1
2
3
305
113
35%
35
63
International mobility cases worldwide*
Colleagues hosted by Head Office
Women on assignment in 2014
New international assignments started in 2014
Countries involved worldwide
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI N T E R N A T I O N A L M O B I L I T Y F A C T S A N DF I G U R E S
*international hirings in Head Office are not included
305
Is the overallnumber of all
mobility caseswhich impacted
on 2014
The percentage of people in mobility on overallheadcount has increased from 0.28% in 2012 to0.40% in 2014.
0
0.2
0.4
0.6
2012 2013 2014
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI N T E R N A T I O N A L M O B I L I T Y F A C T S A N DF I G U R E S
193The number of people who have started anew international assignment has sharplyincreased.The number of new assignments started in2014 is 240% higher than the one in 2012.
47
80
113
2012 2013 2014
+41,5%
+70%
NEW
ASS
IGN
MEN
TSI N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI N T E R N A T I O N A L M O B I L I T Y F A C T S A N DF I G U R E S
Is the numberof new mobiltycases managed
by IM Team
A G E N D A
Generali Group at a glance
International Mobility facts and figures
IM transformation process in Generali
1
2
3
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PO U R S T E P S F O R W A R D
Sharply increase of the numberof assignments from 2013
Increase IM assignments amongsubsidiaries vs. previous Italian-centric IM trend
New assignments in 2014:35% women - gender balance50% ‘under 40’ - age distribution
FOSTER DIVERSITYMANAGEMENT
TOWARDSDECENTRALIZATION
BOOST THEINTERNATIONAL
MOBILITY
400+ assignments by the endof 2020, out of which 80%Talents / Experts
SET IM STRATEGICTARGET
IM as a strategic lever for business and HR:
• Support company internationalisation: skills transfer and successionplanning
• Foster talent management: career development and talent pipeline
• Enhance the Corporate culture and values adherence
• Grant cost effectiveness generating economies of scale/costmonitoring
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PD R I V E R S
• to put the “right” person in the “right” position, satisfyingprofessionally business, organisational and staffing needs
• to hire and retain our talents, offering them internationalopportunities of development and career
• to assure governance and transparency through globalpolicies
• to support the internationalisation of our Group
• to deliver top quality mobility services – a smooth experiencefor assignees
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PG O A L S
28
Business ImpactLow High
Low
High
Pers
onal
Dev
elop
men
t
DEVELOPMENT REASON
- Target Populationà Talents- Target Sourceà Talent Management- Type of Moveà Short / Standard Secondment- Durationà 6-12 Months / 1-3 Years- Economic Impactà Medium / High
STRATEGIC REASON
- Target Populationà Present - Future Leaders- Target Sourceà Talent Management / Business- Type of Moveà Standard Secondment- Durationà 1-3 Years- Economic Impactà High
EXCHANGE OPPORTUNITY REASON- Target Populationà New Junior Hires- Target Sourceà Local HR- Type of Moveà Business Trip- Durationà 3-5 Months- Economic Impact à Low
SKILL SHORTAGE REASON
- Target Populationà Technicians - Specialists- Target SourceàHome Business Lines- Type of Moveà Project Based Secondment- Durationà Project Based ( 6-36 Months)- Economic Impactà Medium / High
VALUE OUR PEOPLEIDENTIFYING & DEVELOPING TALENTS
DELIVER ON THE PROMISEFOCUSING ON STRATEGIC PEOPLE
LIVE THE COMMUNITYGOING THROUGH AN INTERNATIONAL
EXPERIENCE
BE OPENTO RELEVANT PROJECTS/ ORGANIZATIONAL
NEEDS
FACILITATION- Target Populationà Volunteers- Target Sourceà Spontaneous Application- Type of Moveà Permanent Transfer- Durationà Permanent- Economic Impact à Low
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L I G R O U PS T R A T E G I C A P P R O A C H
C&B Integrationand Mobility
Mobility Experts
Italy
France
Germany
GBL
EMEA
CEE
ASIA
AMERICAS
• Push to decentralisation• Set up:
- IM Center of Excellence in Group Reward- Local IM Hubs in HRBP function
• Identify specialised providers
HRBP Function
CoECoE Local HubsLocal Hubs
international moves sourcing International moves activation
• Gathers needs foran internationalmove from thebusiness
• Leads the processin case of activation
• Gathers needs foran internationalmove from thebusiness
• Leads the processin case of activation
• Builds internationalcareer paths
• Pushes thebusiness for movingtalents globally
• Builds internationalcareer paths
• Pushes thebusiness for movingtalents globally
• IM CoE sets globalguidelines andmanagesexceptions
• Local HRBP/IMexpert takes careof implementation
• IM CoE sets globalguidelines andmanagesexceptions
• Local HRBP/IMexpert takes careof implementation
HRBPTalentManagement
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PG L O B A L F R A M E W O R K & G O V E R N A N C E
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI M S O U R C I N G – F R A M E W O R K A N D G U L L I V E RP L A T F O R M
Gulliver platform allows to view in real time all possible opportunities andsource best fitting candidates:
Ø all positions to be possibly occupied by internationalcandidates – from junior to senior roles
Ø all possible candidates for International Mobility:ü database contains cv pool of international talentsü International Mobility moves included in development
plansPlus:
Ø International Mobility sourcing process trackedØ objectives of the assignment inserted in the databaseØ possibility to insert any relevant document
The rightperson inthe “right”position
TALENTMANAGEMENT
IM JOBPOSTING/
REPORTINGTOOL
STRATEGICSOURCINGIM COE
BUSINESS(HRBP)
To launch a project in order to:• define clearly roles & responsibilities for the IM sourcing process• set consistent yearly targets on people in mobility for each country/region/BU• enhance IT platform
FRAMEWORK GULLIVER PLATFORM
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI M A C T I V A T I O N F R A M E W O R K
• Advice• Governance
• Strategy and PolicyOwnership
• Vendor Management• Program Reporting and
Analytics• Support Executive
Moves• Support Talent and
Strategic Sourcing
• Assignment Letters• Cost Estimates
• Vendor Coordination• Allowance updates
• Standard Assignee/ Vendor Queries• Employuee queries
• Activation process ownership• Liaise with business on assignment identification
• Employee meetings & queries• Provide data to Operations team
While the CoE will deal with:• Mobility issues that require subject matter
expertise• Complex mobility scenarios• Advise on policy/alternatives• Specialist services• Value added work
The Operative team will focus on:• Routine admin activities (i.e., assignment
letters, cost estimates, allowance updates,etc.)
• Prepare resource analysis• Maintain data integrity• Work to meet SLAs• Support HR BPs
Strategicactivities
Tacticalactivities
Employeemanagement
Wave 1Wave 2
IM guidelines
Global Providers
Career paths &Talent managementGovernance model
Market dataIT tools KPI for monitoring
2015 2016 2017
To set the ground for achieving our goals
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI M A C T I V A T I O N – H I G H L E V E L P L A N
ü Granted international assignments compliance
ü A more decentralised model is already in place to support the demandfor International moves in all regions
ü Promoted governance and transparency by establishing commonguidelines shared across countries
ü A clearer IM activation process has been released
ü Standardised IM operational templates and processes
ü Established the requirements for the global vendors appointments
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI M A C T I V A T I O N – A C C O M P L I S H M E N T S
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI M A C T I V A T I O N – R E V I S E D I M G U I D E L I N E S
IM guidelines have been revised:
ü different types of international moves are clearly identified and ruled (short orlong term assignment, localisation, international hirings…)
ü allowances are based on market data provided by specialised suppliers andhave been simplified
ü international healthcare plan is provided
ü tax provider new services: from tax return support only to a full servicesprovision on IM (support on tax, payroll, immigration, SSC)
ü relo providers are deeply used for home search, school search and otherservices to assist the assignee in the host country
ü IM costs are calculated at the beginning of the assignment and clearly sharedbetween home and host country
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI M A C T I V A T I O N – P R O C E S S
1
2
3
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67
HRBPs, togetherwith Talent
Management and IMCoE, define the
need forinternational
mobility
HRBPs, with thesupport of TalentManagement and
Sourcing CoE,identify the right
candidate
Home HRBPdecides with HostHRBP and with IM
the mostappropriate
mobility approach
A package isdrafted with thesupport of IMteam, using
related templates
Home HRBP, inagreement with the
Host HRBP,presents the
proposal to theEmployee
Home HRPB givesback the signedproposal to IM
team andcontracts are
prepared
Secondmentassistance isgranted to theEmployee anddocuments are
signed
8
Secondment isofficially
activated. Payrolland cost recharge
are properlymanaged
We have recently launched three tenders to identify:
ü a global partner on value-added services (tax, immigration, contracts,payroll compliance)
ü a global relo company to provide assistance services
ü a robust IT platform to for cost simulations, data storage and processmanagement
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI M A C T I V A T I O N – T H E N E X T C H A L L E N G E S
1. Policy &guidelines
2. Governancemodel
3. Processes &IT tool
4. Markettrends & data
5. Tax & SocialSecurity
6. Assistanceservices
• Space for improvements in all pillars• 100% compliance as a must• Client satisfaction as main goal• Networking for sharing best practices and fostering expertise
• Space for improvements in all pillars• 100% compliance as a must• Client satisfaction as main goal• Networking for sharing best practices and fostering expertise
I N T E R N A T I O N A L M O B I L I T Y @ G E N E R A L IG R O U PI M P I L L A R S & C O N C L U S I O N
M A K E T O M O R R O W , T O D AY
GOVERNANCECONSIDERATIONS
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R I S K M A N A G E M E N T A N D C O M P L I A N C EG O V E R N A N C E I S S U E S T O C O N S I D E R
Short TermBusiness VisitorsTax compliance focus
PE risk
Duty of care
ImmigrationVisa processing times
Assignee / familynationalities
Tracking and monitoring
Non-compliance risk highlysignificant for employee and
company
SecurityEmergency evacuation plans
/ cover
Tracking and monitoring
Tax ComplianceIncreased focus by andcollaboration between
authorities
Non-compliance impacts cost,assignee and potentiallycompany corporate risk
Payroll ReportingHome / host / split / shadowpayroll requirements and
reporting cycles
Pensions / SocialSecurity
Contribution continuity andimpact of break
Host location requirements
International plans
Employee InsurancesLife, disability, illness
insurance cover
Eligibility issues andinternational plans
Medical InsuranceCoverage / exemptions
Pre-existing conditions
Eligibility / Requirements athome and host
Talent ManagementEffective candidate selection, performance management, redeployment and ROI processes and outcomes
Policy, Process and Data ManagementClear policy principles and documentation; prescribed processes and procedures; exception management; defined roles and responsibilities;
rigorous data management and reporting
C H A L L E N G E S A N D T R E N D SI N T E R N A T I O N A L H E A L T H C A R E
40
C h a l l e n g e sf a c e d b y
e m p l o y e r s
I m p r o v i n gS a t i s f a c t i o n
Supporting employee servicerequirements and exceeding
employer objectives
D o u b l e - D i g i tC o s t I n c r e a s e s
Impact of inflation and fixedadministration charges on
funding
C o m p l i a n c ew i t h R e g u l a t i o nHome and host country
implications of legislativecompliance
B e n e f i tD e s i g n
Employee perception versuspremium costs
I N T E R N A T I O N A L H E A L T H C A R E F I N A N C I N GM E D I C A L I N F L A T I O N P R E S S U R E
C o u n t r y
2 0 1 3G e n e r a l
I n f l a t i o n 1
2 0 1 3M e d i c a l
I n f l a t i o n 2
E x p e c t e dC h a n g e i nP r e m i u m s
Australia 1.0% 6-7% 5.5-6.5%
China 3.1% 5-7% 10-12%Colombia 2.3% 4.3% 4.5%-6%
France 1%-2% 1%-2% 3%-6%Germany 1.6% 1.5% 1.7%
Hong Kong 4.0% 4-5% 10%
India 9.3% 18% 16-22%Indonesia 4.5% 12-13% 10-12%
Malaysia 2.4% 10-15% 10%Mexico 3.4% 4% 5%-7%
Pakistan 8.5-9.5% 12-14% 15-17%
Philippines 3.9% 8-10% 10-15%Singapore 4.9% 3-4% 4-8%
South Korea 3.0% 2% 7%
Taiwan 1.3% 2-3% 4-6%Thailand 1.9% 18-22% 15-20%
Vietnam 5.6% 20-25% 15-20%UK 2.7% 8%-10% 8%-10%
• Medical inflation is far higherthan general inflation….andthe gap is widening!
• Insurers have consistentlyincreased their ‘book’ ratedportfolio rates between 9.5%and 12% for the last threeyears.
Projected IMF estimates, World Economic OutlookDatabase, Oct 2012Extracted from Mercer’s Inflation Summary subject tochanges due to updates
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