MOBILITY 2020 GLOBAL MOBILITY TRANSFORMATION

1
MOBILITY 2020GLOBAL MOBILITY TRANSFORMATION

• 11 March 2013

Ed Hannibal Partner
2
Todays Agenda
World Economic Forum and Mercer Talent Mobility
Research Findings
Impact of Mobility
Global Mobility Trends
Governance
3
Mobility The Historic View
4
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.

5
Where are clients sourcing talent? Current
demand for expatriates
New Home-Country Expatriate Moves
From internal Mercer data requests
6
Where are employers sourcing talent? Top 15 host
locations
5) London
15) Brussels
7
WORLD ECONOMIC FORUM AND MERCERTALENT MOBILITY
RESEARCH FINDINGS
8
World Economic Forum (WEF) collaboration Human
capital risk, employability and mobility were
critical issues at the WEFs 2012 annual meeting
in Davos
The world is moving from capitalism to
talentism Klaus Schwab, Founder Executive
Chairman of World Economic Forum
9
World Economic Forum collaboration Why this
issue? Why NOW?
Talent
Employers
Talent Skills Gap
13.3 million unemployed in US
3.3 millionjob vacancies in US
There is a clearmismatch between WhatsIN
DEMAND and WhatsAVAILABLE in the global talent
pool
205 million unemployed globally
Globally 34of employers cant fill available
jobs
Source U.S. Department of Labor Bureau of
Labor Statistics 2011 Gallup Employment Survey
Manpower Groups 2011 Talent Shortage Survey
10
Highlights of talent mobility research findings
Participating organizations with selected good
practices
3M Western Europe 47 European Ministers of Higher Education ABB Ltd Abbott Laboratories Adecco Group American Airlines Atlas Corps British Columbia Hydro Power Authority Chub Group of Insurance Companies Cisco COM DEV International Education for Employment Emma L. Bowen Foundation European 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 Corporation Gouvernement du Quebec Government of Taiwan HCL Technologies Ltd ICT Association of Jordon Infosys Ltd INSEAD International Labour Organization INTTRA JA Worldwide Japan International Cooperation Agency LVMH Moet Hennessy Louis Vuitton ManpowerGroup Marriott International Inc. Marsh Inc. Mercer National Skill Development Corporation Oliver Wyman Organisation for Economic Co-operation and Development Philippines Government Polish Confederation of Private Employers Lewiatan PwC Standard Chartered Taylor Bennett The Boston Consulting Group The United Nations Development Programme United Kingdom Border Agency U.S. Department of Labor University of the West of England Wipro Technologies Yum! Brands
11
Highlights of talent mobility research findings
Definition must expand to fit the new age of
talent mobility
12
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

13
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
14
Highlights of talent mobility research findings
Examples of successful multi-stakeholder
collaboration
15
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

16
Driving talent mobility excellence Leading
companies optimize their global workforce
17
Intra-company collaborationAlso key to
successful talent mobility
18
Driving talent mobility excellence People
strategy must remain aligned with business
strategy
19
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?
20
Optimizing talent mobilityFocus on critical
talent and roles
High
Strategicbusiness leadership
Emerging, high-potential talent
Critical talent androles
Development value
Seasonedtechnical experts
Career-buildingvolunteers
Business value
Low
High
21
Building an integrated approach to talent
mobility strategySuccessful outcomes through
clearly linked programs
TALENT 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 PLANNING
TOTALREWARDS at 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 PLANNING
INVESTMENT INVESTMENT
Executed through Administration, Communication,
Functional Excellence, Measurement Process,
Policy, HR service delivery, Outsourcing
22
IMPACT OF MOBILITY LOOKING INSIDE
23
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
Promotion Turnover 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 NA No Influence 4 1 8
Note The models on which these results are based
control for individual attributes, organizational
factors, and external influences.
24
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
Promotion Turnover Voluntary Turnover Retirement Rating Pay Level Pay Growth Total Pay
Masters Vs. Bachelors 11 NoInfluence NoInfluence 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
Here, overseas assignments were a ticket out the
door, even though it was also a ticket to
advancement
Note The models on which these results are based
control for individual attributes, organizational
factors, and external influences.
23
October 5, 2020
25
GLOBAL MOBILITY TRENDS
26
Global mobility trendsTraditional mobility
27
Global mobilityNext gen mobility
28
Global mobilityProgram reporting and organization
To which department does the global mobility
function report?
29
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?
30
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 (20122013)?
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
31
Emerging trends
Increasing use of talent-tier policies
By assignment type By organizational level By business unit By region
32
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

33
Employee profile
What percentage of your companys expatriate population fall into these age bands? What percentage of your companys expatriate population fall into these age bands? What percentage of your companys expatriate population fall into these age bands?
2010 2012
35 or Younger 28 22
36 or Older 72 78
34
International compensation philosophiesMultiple
approaches
Pure Home Salary
HQ Salary Structure
International Salary Structure
Regional Salary Structure
Pure Host Salary
Integration to Host
Equalization to Home
Balance Sheet
Home Plus
Net to Net Net to Gross
Higher of Home or Host
Host Plus
35
The rise in global tax equalization
programsIncreasing scrutiny of the compensation
package
36
GOVERNANCE FUTURE RISK MANAGEMENT RESPONSIBILITES
37
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

36
38
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

37
39
38
40
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
  organizations mobility approach?
• Audit, evaluate and evolve your Mobility Tax
  policy
• Implement Global Mobility Risk Management
  programs

41
QUESTIONS
ED HANNIBAL 1 312 917 9297
42
(No Transcript)