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MOBILITY 2020 GLOBAL MOBILITY TRANSFORMATION 11 March 2013 Ed Hannibal Partner.

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Presentation on theme: "MOBILITY 2020 GLOBAL MOBILITY TRANSFORMATION 11 March 2013 Ed Hannibal Partner."— Presentation transcript:

1 MOBILITY 2020 GLOBAL MOBILITY TRANSFORMATION 11 March 2013 Ed Hannibal Partner

2 MERCER 1 April 29, 2015 Today’s Agenda World Economic Forum and Mercer Talent Mobility Research Findings Impact of Mobility Governance Global Mobility Trends

3 MERCER 2 April 29, 2015 Mobility The Historic View

4 MERCER 3 April 29, 2015 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 MERCER 4 April 29, 2015 Where are clients sourcing talent? Current demand for expatriates * From internal Mercer data requests New Home-Country Expatriate Moves

6 MERCER 5 April 29, 2015 Where are employers sourcing talent? Top 15 host locations 1) Shanghai 2) Singapore 3) Hong Kong 5) London 7) Tokyo 8) Paris 15) Brussels 4) Bangkok 6) Beijing 9) Seoul 10) Dubai 11) Jakarta 12) Taipei 13) São Paulo 14) Kuala Lumpur

7 WORLD ECONOMIC FORUM AND MERCER TALENT MOBILITY RESEARCH FINDINGS

8 MERCER 7 April 29, 2015 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

9 MERCER 8 April 29, 2015 World Economic Forum collaboration Why this issue? Why NOW? TalentEmployers There is a clear mismatch between What’s IN DEMAND and What’s AVAILABLE in the global talent pool Talent & Skills Gap 13.3 million unemployed in US 205 million unemployed globally 3.3 million job 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

10 MERCER 9 April 29, M 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 Highlights of talent mobility research findings Participating organizations with selected good practices

11 MERCER 10 April 29, 2015 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 locations of an international organization

12 MERCER 11 April 29, 2015 How companies define talent mobility today 2012 survey results from 700 American/EMEA companies Describe your working definition of talent mobility, as reflected in existing HR programs and policies

13 MERCER 12 April 29, 2015 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 MERCER 13 April 29, 2015 Highlights of talent mobility research findings Examples of successful multi-stakeholder collaboration Partners with local governments, educa- tional institutions and 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/BPO skill 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

15 MERCER 14 April 29, 2015 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 MERCER 15 April 29, 2015 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

17 MERCER 16 April 29, 2015 Intra-company collaboration Also key to successful talent mobility Learning and development Leadership development Talent management Employee communi- cations Global mobility Compensation and benefits

18 MERCER 17 April 29, 2015 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

19 MERCER 18 April 29, 2015 Aligning talent mobility good practices with business objectives The 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 increasing revenue outside home country, geographic market expansion Going global Domestic Operating and generating revenue within the borders of one country

20 MERCER 19 April 29, 2015 Optimizing talent mobility Focus on critical talent and roles Critical talent and roles Strategic business leadership Emerging, high-potential talent Seasoned technical experts Career- building volunteers Business value Development value LowHigh

21 MERCER 20 April 29, 2015 Building an integrated approach to talent mobility strategy Successful outcomes through clearly linked programs Executed through Administration, Communication, Functional Excellence, Measurement Process, Policy, HR service delivery, Outsourcing TALENT TOTAL REWARDS 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 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 INVESTMENT

22 IMPACT OF MOBILITY LOOKING INSIDE

23 MERCER 22 April 29, 2015 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 RatingPay LevelPay GrowthTotal 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 Influence2.6% Changed Business line 18% No Influence NA6%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 MERCER 23 April 29, April 29, 2015 Promotion Turnover: Voluntary Turnover: Retirement RatingPay Level Pay Growth Total Pay Masters Vs. Bachelors 11% No 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% Not Applicable 6%-4%0.1%28% Ever did Prog. X (Certification Program) 47%-89% Not Applicable No Influence -4%-0.1% No Influence Ever did Prog. Y (Degree Program) 65% No Influence Not Applicable 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

25 GLOBAL MOBILITY TRENDS

26 MERCER 25 April 29, 2015 Global mobility trends Traditional mobility

27 MERCER 26 April 29, 2015 Global mobility Next gen mobility

28 MERCER 27 April 29, 2015 Global mobility Program reporting and organization To which department does the global mobility function report?

29 MERCER 28 April 29, 2015 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 MERCER 29 April 29, 2015 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 employees16% Global nomads/Career expatriates14%

31 MERCER 30 April 29, 2015 Emerging trends Increasing use of talent-tier policies By assignment type By organizational level By business unit By region

32 MERCER 31 April 29, 2015 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  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  Analysis of intent of benefit  Cost analysis to capture cost savings  Modified Balance Sheet  Local Plus  Modified Balance Sheet  Local Plus

33 MERCER 32 April 29, 2015 Employee profile What percentage of your company’s expatriate population fall into these age bands? or Younger28%22% 36 or Older72%78%

34 MERCER 33 April 29, 2015 International compensation philosophies Multiple approaches Pure Home Salary Pure Home Salary HQ Salary Structure International Salary Structure Regional Salary Structure Pure Host Salary Pure Host Salary Balance Sheet Home Plus Net to Net Net to Gross Net to Net Net to Gross Higher of Home or Host Higher of Home or Host Host Plus Equalization to Home Integration to Host

35 MERCER 34 April 29, 2015 The rise in global tax equalization programs Increasing scrutiny of the compensation package

36 GOVERNANCE FUTURE RISK MANAGEMENT RESPONSIBILITES

37 MERCER 36 April 29, 2015 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 MERCER 37 April 29, 2015 Program administration Compliance 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 MERCER 38 April 29,

40 MERCER 39 April 29, 2015 Looking to the future Planning 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

41 QUESTIONS ED HANNIBAL |

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