mobility 2020 global mobility transformation
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MOBILITY 2020 GLOBAL MOBILITY TRANSFORMATION. 11 March 2013. Ed Hannibal Partner. Today’s Agenda. World Economic Forum and Mercer Talent Mobility Research Findings. Impact of Mobility. Global Mobility Trends. Governance. Mobility The Historic View. - PowerPoint PPT PresentationTRANSCRIPT
MOBILITY 2020GLOBAL MOBILITY TRANSFORMATION11 March 2013
Ed HannibalPartner
MERCER 2April 22, 2023
Today’s Agenda
World Economic Forum and MercerTalent Mobility Research Findings
Impact of Mobility
Governance
Global Mobility Trends
MERCER 3April 22, 2023
Mobility The Historic View
MERCER 4April 22, 2023
Global Mobility is in the Midst of MORE Change than EVER …
• People are connected– Over 900,000,000 Facebook members– Over 175,000,000 LinkedIn members in over 200 countries/territories
• There are over 5.6 billion cell phones worldwide (80% of population of 7,040,000,000 as of September 2012)
• Average of 190,100 passengers arriving and departing daily from Heathrow– 69.4 million passengers in 2011
• According to the UK Border Agency, each year over 100 million people arrive at the UK border and 3.5 million apply to visit, live, work and study there.
MERCER 5April 22, 2023
Where are clients sourcing talent? Current demand for expatriates
* From internal Mercer data requests
New Home-Country Expatriate Moves
MERCER 6April 22, 2023
Where are employers sourcing talent? Top 15 host locations
1) Shanghai2) Singapore3) Hong Kong
5) London
7) Tokyo8) Paris
15) Brussels
4) Bangkok
6) Beijing
9) Seoul10) Dubai11) Jakarta12) Taipei13) São Paulo14) Kuala Lumpur
WORLD ECONOMIC FORUM AND MERCERTALENT MOBILITY RESEARCH FINDINGS
MERCER 8April 22, 2023
World Economic Forum (WEF) collaboration Human capital risk, employability and mobility were critical issues at the WEF’s 2012 annual meeting in Davos
“The world is moving from capitalism to
talentism”
~Klaus Schwab, Founder & Executive Chairman of World Economic Forum
MERCER 9April 22, 2023
World Economic Forum collaboration Why this issue? Why NOW?
Talent Employers
There is a clearmismatch between
What’sIN DEMAND
and
What’sAVAILABLEin the global talent pool
Talent & Skills Gap
13.3 million unemployed in US
205 million unemployed
globally
3.3 millionjob 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 10April 22, 2023
3M Western Europe47 European Ministers of Higher
EducationABB LtdAbbott LaboratoriesAdecco GroupAmerican AirlinesAtlas CorpsBritish Columbia Hydro & Power
AuthorityChub Group of Insurance CompaniesCiscoCOM DEV InternationalEducation for EmploymentEmma L. Bowen FoundationEuropean Commission, Department
of Employment, Social Affairs & Inclusion
Federal Migration Service (Russia)General Electric Company
George Washington University German Trade Union for Building,
Forestry and the Environment, Polish Trade Union of Agricultural Workers
GLOBIS CorporationGouvernement du QuebecGovernment of TaiwanHCL Technologies LtdICT Association of JordonInfosys LtdINSEADInternational Labour OrganizationINTTRAJA WorldwideJapan International Cooperation
AgencyLVMH Moet Hennessy – Louis VuittonManpowerGroupMarriott International Inc.Marsh Inc.
MercerNational Skill Development
CorporationOliver WymanOrganisation for Economic Co-
operation and DevelopmentPhilippines GovernmentPolish Confederation of Private
Employers LewiatanPwCStandard CharteredTaylor BennettThe Boston Consulting GroupThe United Nations Development
ProgrammeUnited Kingdom Border AgencyU.S. Department of LaborUniversity of the West of EnglandWipro TechnologiesYum! Brands
Highlights of talent mobility research findings Participating organizations with selected good practices
MERCER 11April 22, 2023
Talent Mobility:The physical movement of workers within or across organizations, industries or countries, and globally,
or the professional movement of workers across occupations or skill sets. Mobility may be temporary or permanent and may also involve moving people from unemployed to
employed, moving jobs to people or allowing for virtual mobility.
Highlights of talent mobility research findings Definition must expand to fit the new age of talent mobility
Talent Mobility: tal·ənt mō·bil·ətē
The movement of workers between organizations or among locationsof an international organization
MERCER 12April 22, 2023
How companies define talent mobility today2012 survey results from 700 American/EMEA companies
Describe your working definition of talent mobility, as reflected in existing HR programs and policies
20%
20%
45%
47%
39%
81%
22%
27%
49%
52%
58%
80%
Moving jobs to people (creating/moving jobswhere talent is in good supply)
Allowing for virtual mobility
Moving workers to different jobs or skill sets
Moving workers to different organizationalunits/functions
Moving workers to different locationsdomestically
Moving workers to different locationsglobally/across borders
Americas webcastEMEA webcast
MERCER 13April 22, 2023
Highlights of talent mobility research findings Four primary barriers to talent mobility
Widespread unemployability
Critical skills gap
Information gaps
Public & private constraints
Source: Mercer Analysis
MERCER 14April 22, 2023
Highlights of talent mobility research findings Examples of successful multi-stakeholder collaboration
• Partners with local governments, educa-tional institutionsand NGOs
• Develops talent in India, Brazil, China and Argentina to support its global growth strategy
• Drives improved local prosperity and global economic growth
• Collaborates with governments and educational institu-tions to create inter-national IT/BPOskill standards
• Results in easier movement of people across geographies, occupations and organizations
• Member nations collaborate to assess workforce competitiveness
• Results being used to plan regional labor market integration
• Goal is to become more attractive to global employers and thereby drive prosperity
• A collaboration among multiple stakeholders for growing/developing local financial services talent and driving sector growth
• Aim is to enhance competitiveness of Toronto region as an international finance center
• Relies on high job mobility to develop talent and future leaders
• Places talent in other allied organ-izations to gain “outside” experi-ence and enhance critical skills to strengthen their team
MERCER 15April 22, 2023
Highlights of talent mobility research findings Develop a collaborative mindset
• Think broadly about the greater good, rather than focusing only on your own objectives
• Engage “hearts and minds” of workforce• Be comfortable with complexity• Think outside the box to drive innovation• Be sensitive and adaptable to different cultures• Be open to continuous learning and new opportunities• Be able to handle ambiguity and uncertainty• Be good at systems thinking• Take a long-term perspective, but have a
sense of urgency
MERCER 16April 22, 2023
Driving talent mobility excellence Leading companies optimize their global workforce
Build a comprehensive talent planning process and decision framework to support growth strategy
Identify workforce and capability gaps
Engage and create sense of urgency with senior management
Analyze hard data to track dynamics
Create lines of sight among talent management, acquisition, learning & development, and global mobility functions
MERCER 17April 22, 2023
Intra-company collaborationAlso key to successful talent mobility
Learning and development
Leadership development
Talent management
Employee communi-
cations
Global mobility
Compensation and benefits
MERCER 18April 22, 2023
Driving talent mobility excellence People strategy must remain aligned with business strategy
Defines the performance goals the organization seeks to
achieve and sets parameters for the decisions and
investments it will make to support those goals
A unique set of prioritized choices about people
investments that enables the organization to achieve its
business strategy and performance goals
MERCER 19April 22, 2023
Aligning talent mobility good practices with business objectivesThe discussion each organization needs to have
Where is your organization today? Where will you be in five years?
Fully global
Significant presence in a large number of countries, revenue
outside HQ equals or exceeds home-country
revenue
Multi-local
Most revenue in home country, disparate
business units
Rapidly increasingrevenue outside homecountry, geographicmarket expansion
Going global
Domestic
Operating and generating revenue
within the borders of one country
MERCER 20April 22, 2023
Optimizing talent mobilityFocus on critical talent and roles
Critical talent and
roles
Strategicbusiness
leadership
Emerging, high-potential
talent
Seasonedtechnical experts
Career-building
volunteers
Business value
Dev
elop
men
t val
ue
Low High
High
MERCER 21April 22, 2023
Building an integrated approach to talent mobility strategySuccessful outcomes through clearly linked programs
Executed through Administration, Communication, Functional Excellence, MeasurementProcess, Policy, HR service delivery, Outsourcing
TALENT
TOTALREWARDS
The right PEOPLE…Talent segmentation
Talent identification
Candidate profiles
Selection criteria
Selection process
in the right PLACES and ROLES…Identification of need and locations
Critical roles
Key skill requirements
PLANNINGat the right COST…Contract type
Remuneration, benefits, allowances and support
Funding arrangements
Management of other related costs
for the right length of TIME and RESULT…Assignment purpose
Type and length of assignment
Assignment lifecycle management
Transition management
INVESTMENT
IMPACT OF MOBILITYLOOKING INSIDE
MERCER 23April 22, 2023
ILM analysis® for this financial services firm showed that location changes were destabilizing in the short term; on the other hand, moves across business lines have more positive influences
PromotionTurnover: Voluntary
Turnover: Retirement Rating Pay Level Pay Growth Total Pay
Change work location
No Influence
15.5% NA No Influence -2.5% -.1% -2.9%
Ever change work location
No Influence
No Influence NA No
Influence 2.6% No Influence 2.6%
Changed Business line 18%
No Influence
NA 6% 5% .1% 5.2%
Transfer across OpCO
No Influence
No Influence
NA No Influence 7.5% .1% No Influence
Ever Transfer Across OpCo
No Influence
-35% NANo
Influence4% 1% 8%
Note: The models on which these results are based control for individual attributes, organizational factors, and external influences.
MERCER 24April 22, 2023 24April 22, 2023
Promotion Turnover: Voluntary
Turnover: Retirement Rating Pay Level Pay
Growth Total Pay
Masters Vs. Bachelors 11% No
InfluenceNo
Influence 3% 5% No Influence 2%
Doctorate Vs Bachelors 55% No
Influence -83% No Influence 10% No
Influence 3%
Ever did Overseas Assignment
49% 41% NotApplicable 6% -4% 0.1% 28%
Ever did Prog. X (Certification Program)
47% -89% NotApplicable
No Influence -4% -0.1% No
Influence
Ever did Prog. Y (Degree Program)
65% NoInfluence
NotApplicable 2% -13% -0.2% -4%
ILM analysis® allowed this large energy company to assess the impact of developmental and education experiences, so as to improve the return on their considerable investments in human capital
Note: The models on which these results are based control for individual attributes, organizational factors, and external influences.
Here, overseas assignments were a ticket out the door, even though it was also a
ticket to advancement
GLOBAL MOBILITYTRENDS
MERCER 26April 22, 2023
Global mobility trendsTraditional mobility
MERCER 27April 22, 2023
Global mobilityNext gen mobility
MERCER 28April 22, 2023
Global mobilityProgram reporting and organization
To which department does the global mobility function report?
59%
14% 14%
0% 0%
14%
HR -Compensation
CorporateCentre of
Excellence
CorporateShared Services
HR - TalentManagement
Relocation Other
MERCER 29April 22, 2023
Global mobility and talent management
How integrated is your global mobility program and your talent management? How integrated does your management want them to be?
MERCER 30April 22, 2023
Global mobility Company profile – cross border programs
How do you expect the number of assignments in the following categories to change in the next two years (2012–2013)?
Assignment Types Increase
Short-term assignments 71%
Typical long-term assignments 57%
Developmental/training assignments 48%
Permanent transfers 47%
Locally hired foreigners 45%
Employees on rotational assignments 34%
Commuters 34%
Contract employees 16%
Global nomads/Career expatriates 14%
MERCER 31April 22, 2023
Emerging trends
Increasing use of talent-tier policies
By assignment typeBy organizational level
By business unitBy region
MERCER 32April 22, 2023
Segmented best practices
Establish criteria Identify benefits to be eliminated or reduced Compensation philosophy
Early career Developmental vs.
business need Position/level –
typically manager or below
Employee accommodation
Analysis of intent of benefit
Cost analysis to capture cost savings
Modified Balance Sheet
Local Plus
MERCER 33April 22, 2023
Employee profile
What percentage of your company’s expatriate population fall into these age bands?
2010 201235 or Younger 28% 22%
36 or Older 72% 78%
MERCER 34April 22, 2023
International compensation philosophiesMultiple approaches
Pure Home
SalaryHQ Salary Structure
International Salary
Structure
Regional Salary
Structure
Pure Host
Salary
Balance Sheet Home PlusNet to Net
Net to Gross
Higher of
Home or HostHost Plus
Equalization to Home Integration to Host
MERCER 35April 22, 2023
The rise in global tax equalization programsIncreasing scrutiny of the compensation package
GOVERNANCEFUTURE RISK MANAGEMENT RESPONSIBILITES
MERCER 37April 22, 2023
Program administration Tracking
Tax authorities are increasing their scrutiny of business travelers and short-term assignees
Concerns around shorter-term mobile employees creating “permanent establishment” issues for the corporation
Need to know employee whereabouts from a security, safety and corporate duty of care perspective
37
MERCER 38April 22, 2023
Program administrationCompliance and governance concerns
One potential control point is combining the per diem data and a calendar tool for short-term assignments, commuters and business travelers Mercer is working with clients and major mobility software
providers to incorporate per diem information into their tools Employers are looking to use calendar tools to pay per diems
only if and when employees fill out their time in country
See the sample Equus Solution
38
MERCER 39April 22, 2023 39
MERCER 40April 22, 2023
Looking to the futurePlanning for 2020
Regardless of the reporting structure, make your place at the table
Evaluate your Internal Labor Market
Prepare to be the internal mobility management consultant
Will international “roles” dictate your organization’s mobility approach?
Audit, evaluate and evolve your Mobility Tax policy
Implement Global Mobility Risk Management programs
QUESTIONS
ED HANNIBAL | +1 312 917 9297