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Mapping Assignment Policies to Assignment Objectives ECA International.

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Presentation on theme: "Mapping Assignment Policies to Assignment Objectives ECA International."— Presentation transcript:

1 Mapping Assignment Policies to Assignment Objectives ECA International

2 Agenda  Types of assignment policies  Changing workforce demographics  Drivers for assignments  Mapping assignment policies to assignment objectives  Summary Mapping Assignment Policies to Assignment Objectives2

3 Local business unit Group level Employee Types of assignment policies  Historically policies tended to be based on duration Mapping Assignment Policies to Assignment Objectives3 Short-termLong-termPermanent

4 Variety in types of international assignments Mapping Assignment Policies to Assignment Objectives4 Source: ECA’s Managing Variety in International Mobility Survey 2014

5 Increasing diversity of assignee populations Mapping Assignment Policies to Assignment Objectives5

6 Change in age group profile of international assignees 6 Average proportion of assignee workforce Mapping Assignment Policies to Assignment Objectives Source: ECA’s Managing Mobility Survey 2012 & ECA’s Managing Variety in International Mobility Survey 2014

7 Changing workforce demographics Profile:  Children grown up  Property owners  Retirement on the horizon Assignment motivation:  Financial package  Location  Opportunity Mapping Assignment Policies to Assignment Objectives7 Baby Boomers 1946 to 1964 Generation X 1960s to 1980s Generation Y 1980 to 2000 Profile:  School-age children  Property owners  Planning for retirement Assignment motivation:  Career opportunity  Educational opportunities for children Profile:  Single, no children  Rent or living with parents  Retirement not an immediate concern Assignment motivation:  Begin career outside home country  Seek well paid opportunities  Successive assignments

8 Demographic changes from 1970 to 2020 Mapping Assignment Policies to Assignment Objectives8 Source:

9 Business objectives for different assignment types Mapping Assignment Policies to Assignment Objectives9  What is the business reason for the assignment/transfer?  What is the minimum timeframe needed to accomplish this objective?  Can the objectives be modified to accommodate the needs of an employee if flexibility is required to meet the need?  Is the assignment or transfer employee-initiated?  What is the most likely next step for the employee at the end of the assignment/transfer?

10 Remuneration methods Mapping Assignment Policies to Assignment Objectives10 Home equity Balance sheet Hybrid Higher of home/host Host local equity Local Local plus Assignee host equity Expatriate market rate Int’l salary bands Global equity Nomad policies Select Base

11 Progressive policy approaches  An umbrella policy with a suite of tailored provisions beneath it to reflect assignment objectives, business assignment drivers and assignee drivers Mapping Assignment Policies to Assignment Objectives11 Short-term Projects Graduate/development Commuter Rotator Long-term Leadership Skills transfer High potential Permanent Indefinite transfer Self-initiated transfer Global nomads

12 Employee High potential Employee Senior level – top performers Employee Any employee Employee Self-initiated for a permanent move Mapping assignment policies to assignment objectives Mapping Assignment Policies to Assignment Objectives12 Low developmental value High developmental value Low business value High business value Mobility strategy Long-term assignment Full Expat Local Plus Global Nomads Hybrid Mobility strategy Permanent transfer Local/Local Plus Mobility strategy Expat Lite Local Plus Long-term assignment Mobility strategy Expat Lite / Modified Expat Local Plus Long or short-term assignment

13 Strategic opportunity – can you pay a local salary? Junior manager (EUR)Senior manager (EUR) Mapping Assignment Policies to Assignment Objectives13 Local salaries source: Towers Watson Global Grades 2013

14 Local plus Mapping Assignment Policies to Assignment Objectives14 Local salaries source: Towers Watson Global Grades 2013

15 Expat vs. local - Brazil Mapping Assignment Policies to Assignment Objectives15 Local salaries source: Towers Watson Global Grades 2013

16 Expat vs. local - Germany Mapping Assignment Policies to Assignment Objectives16 Local salaries source: Towers Watson Global Grades 2013

17 Employee High potential Employee Senior level – top performers Employee Any employee Employee Self-initiated for a permanent move Mapping assignment policies to assignment objectives Mapping Assignment Policies to Assignment Objectives17 Low developmental value High developmental value Low business value High business value Mobility strategy Long-term assignment Full Expat Local Plus Global Nomads Hybrid Mobility strategy Expat Lite Local Plus Long-term assignment Mobility strategy Expat Lite / Modified Expat Local Plus Long or short-term assignment

18 Development / skills-based assignment: Expat lite – China to Germany Mapping Assignment Policies to Assignment Objectives18 Local salaries source: Towers Watson Global Grades 2013

19 Employee High potential Employee Senior level – top performers Employee Any employee Employee Self-initiated for a permanent move Mapping assignment policies to assignment objectives Mapping Assignment Policies to Assignment Objectives19 Low developmental value High developmental value Low business value High business value Mobility strategy Long-term assignment Full Expat Local Plus Global Nomads Hybrid Mobility strategy Permanent transfer Local/Local Plus Mobility strategy Expat Lite Local Plus Long-term assignment Mobility strategy Expat Lite / Modified Expat Local Plus Long or short-term assignment

20 Local opportunity Local transfer (pure self- initiated) Local transfer plus (part self-initiated, part company-initiated) Tax consultationYear of transfer only Relocation flightProvided ShippingStandard provisionAdditional assistance Language trainingNoneProvided Housing allowanceNoneCompany contribution for a defined period EducationNoneCompany contribution for a defined period Temporary accommodationStandard provisionAdditional assistance Mapping Assignment Policies to Assignment Objectives20

21 Mapping assignment policy to seniority Mapping Assignment Policies to Assignment Objectives21 Local opportunity Development assignment & Skills / Knowledge assignment Strategic opportunity Junior manager Middle managerSenior manager

22 Summary  One policy rarely fits all assignment objectives  Changing assignee demographics and company needs lead to more complex policies  Careful consideration can lead you to select the best fit remuneration approach  Flexibility is key Mapping Assignment Policies to Assignment Objectives22

23 Thank you Antonia Kueßner Account Manager - Client Services ECA International Questions? Mapping Assignment Policies to Assignment Objectives23


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