EY Human Capital Conference 2012: Contrast and compare - the Global Mobility Effectiveness Survey
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Transcript of EY Human Capital Conference 2012: Contrast and compare - the Global Mobility Effectiveness Survey
2012 Human Capital Conference23–26 October
Contrast and compare: the Gl b l M bilit Eff tiGlobal Mobility Effectiveness Survey
Disclaimer
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► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP.
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Presenters
► Kevin Cornelius► Ernst & Young Ltd, Switzerland► [email protected]
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Survey methodology
► Comprehensively capturing the p y p gcurrent state of global mobility: its operational effectiveness and issues it is facingissues it is facing
► February to May 2012► 520 multinational companies► 520 multinational companies
surveyed► Six case studies► Ernst & Young analysis and
commentary
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Ernst & Young 2012 Global Mobility Effectiveness Survey reportEffectiveness Survey report
Industry sector-specific reports
Media release
Available todayAvailable today
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A common message from global mobility professionals everywhereprofessionals everywhere
“Operational workload keeps mobility functions away from strategic thinking ”from strategic thinking.”
— Chris Debner, Human Capital Executive Director, Ernst & Young Ltd
“Many companies will wait until they have a major compliance failure.”
— Jay Sternberg, Global Leader for Short-Term Business Visitor Solutions, Ernst & Young LLP
“Senior leaders require us to be more closely aligned with workforce planning, talent management and
“B i h ld d t d th i t f
p g, gorganizational development.”
— Craig McEvoy, Head of Global Mobility for Brazil-based Vale
“Business should understand the importance of international experience.”
— Janelle Parkinson, Head of Global Mobility, Recognition & Benefits, Group Reward
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Our global mobility effectivness surveys
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2008 Global Mobility Effectiveness SurveyFirst edition
► Recognition of need for improvement in:g p► Automation of administrative tasks► Development and enhancement of global mobility functions► Processes ► Risk management► Prevention of early repatriation and talent loss► Prevention of early repatriation and talent loss ► Shift to strategic issues and goals to be a stronger business
partner
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2009 Global Mobility Effectiveness Survey Cost and control
► Repatriation key issue: 5% of assignees have left their p y % gcompany within two years after repatriation.
► 61% of international human resources (IHR) teams are ( )not involved in the assignee selection process.
► 28% differentiate between strategic and developmental policies.
► Only 20% of companies know their true cost.► 81% of companies say they are planning cost reduction.► There are three key areas of focus for managing cost:
► Global mobility processes► Localizations► Policies
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► Policies
2010 Global Mobility Effectiveness Survey Lessons from changeg
► A new global economic picture has emerged.g p g► IHR teams have increased involvement in assignees
selection.► More than half of companies are reviewing their Global
mobility policies within next six months.► 54% of companies report a bigger focus on risk.► 77% of companies are looking for cost savings, but only
9% were able to accurately access cost.► Only 57% actually reduced cost (of these, 74% achieved
less than 10% cost savings).
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2011 Global Mobility Effectiveness Survey Competing for growthp g g
► Economic turbulence, natural disasters, uprisings and fli t ff t thconflicts affect growth.
► Long- and short-term assignments are increasing.Th i f IHR t i i i b t t t ffi i t► The size of IHR teams is increasing, but not yet sufficient.
► 60% of companies have reviewed their policies in the last 12 months12 months.
► There has been a significant increase of assignees into growth markets over last three years: India 80% Africagrowth markets over last three years: India 80%, Africa 75%, Brazil 71%, Russia 43%, China 23%.
► 83% of inbound assignees are strategic resources► 83% of inbound assignees are strategic resources inbound.
► Outbound assignees have significantly increased.
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g g y
2012 Global Mobility Effectiveness Survey Driving business successg
► Global Mobility today:y y► On the rise► Focused on growth markets► Business critical► Evolving► HQ centralized► HQ centralized
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Strategy and operations disconnect
► Key issues:y► Understaffing► Evolving regulations► Talent management agenda► Compliance frameworks► Early repatriations► Early repatriations► Future leaders
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Growing beyond themes
Global mobility isTalent management and global mobility areworking along parallel lines
Global mobility is increasingly a key feature in driving business success
Globalization has had a
Global mobilityStrategy
► Directing talent and new investments to growth markets
► Changing business strategies Mobility strategy must better align with business strategy
dramatic effect on business models
StrategyOperations
TalentGrowth markets
► Evolving global mobility strategies► Focus on operational
effectiveness
Global mobility is not yet achieving
Expansion in emerging markets is y g
its full operational potential
g gon the rise, but it is creating compliance challenges
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Strategy, operations, growth, talent
Global mobility strategy
Increasing number of global mobility assignments
400Short-term
1 500Long-term
350
400
1 400
1,500
300
350
1 300
1,400
3002012 2013 2014
1,3002012 2013 2014
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Global mobility strategy
Global mobility is about today; talent management is about tomorrowtomorrow.► Top priorities for global mobility:
► Business needs for the current year► Business needs for the current year► Successfully moving the assignee► Create an international talent pool for future leadersp
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Global mobility strategy
Missing long-term link between global mobility and global talent management► What is the link between Global Mobility and Talent
Management?
talent management► The link between global mobility and talent
management:Management?g► Assignees selected case by case► Assignments designed to form future leaders► Immediate business needs, no long-term planning
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Strategy, operations, growth, talent
Operations
Internal barriers are cited as No. 1 cause of inefficiency.
8%5%
35%16%
External barriers
Business (late decision taking)taking)Assignees (negotiations)
Resources (understaffed IHR)
Internal barriers
36%
IHR)Internal communication
barriers
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Operations
Sixty-eight percent of companies do not have a formal payroll tax and social security compliance risk control framework.
C i f i h i i di i l► Companies are focusing their immediate operational needs on:► Processes► Processes► Policy► Communication► Tax compliance
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Operations
Sixty-five percent of surveyed companies do not have a t ki f b d b i t ltracking process for cross-border business travelers.► Companies state their main compliance risks as:
► Income tax reporting and withholding► Income tax reporting and withholding► Short-term business travelers► Immigration► Immigration► Social security reporting and withholding
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Strategy, operations, growth, talent
Growth markets countries
Inbound assignments in growth markets versus other have increased 48% from 2011 and will increase 60% in two to three years. y
113%
ChinaAfrica
133%120% 150%
120%135%
113%131%
B il
RussiaIndia
113%175%
133% 167%
Brazil20112012
2015
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“Assignments premised solely on reward ”have higher risk of failure”
— Ray Harraway, Ernst & Young (Pty) Ltd, Partner, Human Capital, South Africa
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Growth markets countries
Brazil
Main issues in growth market countries
Brazil
Russia
India
ChinaChina
Africa
Compliance Security Compensation Housing Schooling
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Growth market countries
Managerial and strategic goals are the top drivers for i ll th k t t imoves in all growth market countries
36%
35%
23%
23%
39%3%
Brazil
36%
23%
23%
39%
37%
4%Russia
India
35%24%
37%
39%
4%
2%China
Project-based work
Developmental
38%23%
35%30%
AfricaStrategic/managerial
Other
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Strategy, operations, growth, talent
Talent management
Only half of companies have a global talent management d
► Distinct differences between companies headquartered in:
agenda.
59%Europe
50%
48%
Africa
North America
41%Asia-Pacific
13%South America
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Talent management
Ninety-two percent of companies say they do not use i l di t i t ith th i i t l tsocial media to communicate with their assignee talent.
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Review Global mobilityAnalyze
Review yAnalyze
InvolveAssess risksAssess risks
IntegrateTalent management
IntegrateTalent management
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Five focus areas for global mobility to drive business successbusiness success
Build robust and global
Evaluate your true operational
Alignment of global
Dynamic management
Integrate talent
compliance frameworks
effectivenessmobility to business strategy
of growth market opportunities
management and global mobility
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At the end of the day, it is about getting:
► the right persong p► at the right time► in the right place► in the right place► for the right cost.
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Questions
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