Global Assignment Policy Design Process and Considerations

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Global Assignment Policy Design Process and
Considerations
FEMJune 14, 2011

• Neil B. Krupp, CMC
• Vice PresidentHR Consulting Global
  Compensation Services

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Policy Objectives

• Comprehensive
• Consistent with existing HR programs /
  professionally contemporary
• Proactive and supportive of overall corporate
  philosophies and objectives
• Minimizes assignees financial gains and losses
• Encompasses a support system, which fosters a
  positive international experience and, as
  appropriate, career development
• Responds to employee, family and business needs
• Easily understood and communicated
• Facilitates knowledge transfer upon repatriation

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Nine Phases Distinct Yet Inter-related
Phase 1 - Diagnostic review and data
gathering Phase 2 - Development of IHR
vision Phase 3 - Benchmarking/best practices
analysis Phase 4 - Internal data gathering and
feedback Phase 5 - Data analysis and
presentation Phase 6 - Policy development Phase 7
- Implementation process Phase 8 - Communications
strategy Phase 9 - Rollout
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Phase 1 Diagnostic Review and Data Gathering

• Establishes the tone and knowledge base for
  subsequent actions, recommendations, and
  decisions
• Review of existing policy and program elements -
  what is
• One-on-one task force team interviews to gain
  insights-strengths and or weaknesses of existing
  program, as well as future direction
• Task force collaboration
• Development of project schedule and timeline

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Phase 2 Development of HR Vision

• Development of a collaborative formal IHR vision
  statementthat reflects a Companys overall
  approach to global assignments, while aligning
  with its overall corporate and human resource
  philosophies
• Once agreed upon by stakeholders, it forms the
  framework within which all future aspects of the
  assignment program are developed

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Phase 3 Benchmarking/Best Practices Analysis

• An appropriate and necessary exercise
• Identifying and obtaining reliable metrics in
  vogue in market place
• Identifying which (or type of) organizations to
  be aligned
• Establishes relative competitive position amongst
  peer companies

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Phase 4 Internal Data Gathering/Feedback

• Assignee Surveys are a key indicator in
• Determining effectiveness and receptiveness of
  specific program
• Assignees understanding and acceptance of its
  objectives and processes
• Whether or not it meets a perceived need on their
  part
• Instrument for determining
• How important a particular provision is, or
  procedure/process was, or may be during the term
  of assignment
• If assignees and/or eligible dependents are
  satisfied with the level of benefit or service
  delivery

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Phase 5 Data Analysis and Presentation

• This phase synthesizes the findings of the
  earlier phases
• Data form stakeholders (one-on-one
  interviewing)
• Understanding of the external market
  (benchmarking)
• Feedback from current and former assignees and
  spouses (Assignee Survey)
• Serves as the foundation for Global Assignment
  Policy Development

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Phase 6 Policy Development

• Appropriate application of data by applying its
  positive elements and mitigating the negative
  ones
• Serves as charter throughout Phase 6
• Identify new program elements
• Eliminate gaps in existing program
• Meet desired objectives
• Apply sound tax planning techniques
• Tools which can be employed to facilitate
  business case approval process include
• Policy summary and abbreviated version of policy
  documentation
• Customized Cost Estimates - comparing actual or
  estimated costs associated with current program
  vis-à-vis projected costs under new policy
  provisions. Identifies any potential cost or
  savings of the proposed program provisions.

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Phase 7 Policy Implementation Process

• A critical success factor in addition to policy
  design is the effectiveness of the implementation
  process employed and answers to a complex
  combination of issues
• When to implement?
• Over what period of time?
• Who and how to grandfather?
• How to communicate?
• How to integrate with other corporate departments
  (payroll, legal, finance, tax, etc.)?
• Phase-in considerations and process?
• Buy out considerations, etc.?

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Phase 8 Communications Strategy

• Finally, success of new or revised program is
  significantly affected by how it is
  received/understood by those who are
  administering or affected by its components
• Depending upon an organizations typical approach
  in communicating with its employees, a
  combination of any of the following may be
  appropriate
• Development of written communication literature
• Development of Company intranet communications
• Formal presentations via video conferencing of
  program intent to management and/or employees
• Design and production of employee handbooks

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Phase 9 Rollout

• Commencement of Company rollout of policy,
  communications, implementation process in
  partnership with both internal and external HR
  consulting related resources
• Opportunity for any potential 13th hour policy
  transition adjustments which may be determined to
  be appropriate during Implementation Process
  phase

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Thank You!QA