SOLVING THE TALENT MOBILITY PUZZLE: IMPLICATIONS FOR GLOBAL MOBILITY MANAGERSMAY 16, 2012

STEVE NURNEYMIKE PIKERCARLOS MESTRE

1MERCER WEBCAST

OUTLINE

TALENT

PLACETIME

COST

How can the global mobility function play both strategic

and tactical roles?

How can the global mobility function play both strategic

and tactical roles?

What are the implications for global mobility programme

design?

What are the implications for global mobility programme

design?

GOAL: Having the right talent in the right places, at the right times, and at reasonable cost

2MERCER WEBCAST

MERCER/WORLD ECONOMIC FORUM COLLABORATION HUMAN CAPITAL RISK, EMPLOYABILITY, MOBILITY ISSUES IN DAVOS

“The world is moving from capitalism to

talentism”~ Klaus Schwab, Founder & Executive Chairman of the

World Economic Forum

3MERCER WEBCAST

Talent Mobility:The physical movement of workers

within or across organizations,

industries or countries, and globally, or the professional

movement of workers across

occupations or skill sets. Mobility may be temporary or

permanent and may also involve

moving people from unemployed to

employed, moving jobs to people, or

allowing for virtual mobility.

MERCER/WEF TALENT MOBILITY RESEARCH EXPANDING THE DEFINITION OF ‘TALENT MOBILITY’

3

Talent Mobility: tal· nt m ·bil·

The movement of workers between organizations or among locationsof an international organization

4MERCER WEBCAST

CHANGING LANDSCAPE OF CORPORATE TALENT MOBILITY USING TALENT MOBILITY TO FUEL CORPORATE GROWTH

TRADITIONAL MOBILITY

CATALYSTSGlobalization

Organizational complexity

Demographic changes

Cost pressures

NEW MOBILITY

TransactionalFocused on costsOne size fits allAn island within HR

Strategic Focused on value creation Segmented by talent typeConnected to human capital and business goals

5MERCER WEBCAST

In your organization, to what extent do the various functions within HR collaborate to support talent management and mobility?

(Please reply in the box to the right of your screen)

POLLING QUESTION

6MERCER WEBCAST

IMPROVING PROGRAM EXECUTION: GREATER INTERNAL COLLABORATION

CHRO

HEAD GLOBAL REWARD COE

HEAD GLOBAL PEOPLE & ORG

DEVELOPMENT COEHEADS OF

REGIONAL HR HR SERVICES

•Global Comp

•Global Benefits

•Global Mobility

•Global Sales Comp

•Executive Comp

•Regional Rewards Leaders

•OD

•Talent Acquisition

•Talent Management

•Learning & Development

MOBILITY(outsourced)

•Regional Business Partnering

All HR Transaction Services, including

Mobility

TAX SERVICES

MOBILITY SERVICES

(usually a Big Four accounting firm)

(usually a large HR BPO)

These two areas, Mobility & Talent Management, are working much closer together

7MERCER WEBCAST

FUTURE STATE:THREE STAGES TO FULL GLOBALIZATION OF TALENT MOBILITY

From this … to this … to this

From anywhere … to anywhere. The right talent, right place, right purpose, right cost, etc.

Energy trader in Houston needed in Alaska to manage an exploration project

Nicaraguan Engineer who knows how to manage Latin American

health & safety compliance, needed in Brazil for 6 months

French attorney needed in Côte d’Ivoire because she knows the local language (French)

8MERCER WEBCAST

Movement of people across skill sets or jobs

CAREER MOBILITYCAREER MOBILITY

Movement of people to where the jobs are located

GEOGRAPHIC MOBILITYGEOGRAPHIC MOBILITY

Movement of jobs to where the right talent is located

JOB MOBILITYJOB MOBILITY

MANAGING THE TALENT GAP: NEW FOCUS ON MOBILITY

88

9MERCER WEBCAST

BUT WE STILL THINK OF MOBILITY TOO NARROWLY

Describe your organization’s working definition of talent mobility, as reflected in your existing HR programs and policies (Americas; multiple responses allowed)

February 2012. Mercer

99

20%

20%

45%

47%

39%

81%

22%

27%

49%

52%

58%

80%

Moving jobs to people (creating/moving jobs wheretalent is in good supply)

Allowing for virtual mobility

Moving workers to different jobs or skill sets

Moving workers to different organizationalunits/functions

Moving workers to different locations domestically

Moving workers to different locations globally/acrossborders

10MERCER WEBCAST

WORKFORCE STRATEGIES MUST GO BEYOND ATTRACTION, RETENTION AND DEVELOPMENT

Talent management

strategy

Moving people within an organization

Moving people within an organization

Moving people into an organization

Moving people into an organization

Moving jobs to peopleMoving jobs to people

Virtual mobilityVirtual mobility

Talent mobility strategy

1010

… focus on new approaches to mobility

11MERCER WEBCAST

POLLING QUESTION

To what extent do other functions and line managers collaborate with HR to support talent management and mobility within your organization?

(Please reply in the box to the right of your screen)

12MERCER WEBCAST

MOBILITY PROGRAM DESIGN: SELECTION CRITERIA & PROCESSENABLING ASSESSMENT, PERFORMANCE, LEADERSHIP DEVELOPMENT

SPECIFICUNIVERSAL

BASELINE ATTRIBUTES

GLOBAL SKILLS & KNOWLEDGE GLOBAL MINDSET

Catalytic learning Catalytic learning capability capability

Sense of adventureSense of adventure

Entrepreneurial spiritEntrepreneurial spirit

Sensitivity and Sensitivity and responsiveness to responsiveness to cultural differencescultural differences

Ability to lead Ability to lead multicultural teamsmulticultural teams

Sophisticated networking Sophisticated networking competencecompetence

Cultural literacyCultural literacy

Comfort with cultural Comfort with cultural complexity and its complexity and its

contradictionscontradictions

Opportunity sensing for Opportunity sensing for uncertainty of global uncertainty of global

marketsmarkets

Systems thinking in Systems thinking in global contextsglobal contexts

Extended time Extended time perspectiveperspective

ContextContext--specific specific leadership leadership capabilitiescapabilities

New Mercer research: competencies for excellence in global leaders

• Attributes to assess among candidates for global leadership roles

13MERCER WEBCAST

TALENT MOBILITY STRATEGYSUCCESS THROUGH CLEARLY LINKED PROGRAMS

INVESTMENT

for the right length of TIME and RESULT …Assignment purpose

Type and length of assignment

Assignment lifecycle management

Transition management

at the right COST …Contract type

Remuneration, benefits, allowances and support

Funding arrangements

Management of other related costs

PLANNING

in the right PLACES and ROLES …Identification of need and locations

Critical roles

Key skill requirements

The right PEOPLE …Talent segmentation

Talent identification

Candidate profiles

Selection criteria

Selection processTOTALREWARDS

TALENT

Executed through Administration, Communication, Functional Excellence, MeasurementProcess, Policy, HR service delivery, Outsourcing

14MERCER WEBCAST

Segmentation by purpose, noting business and talent value• How a business need is met, why people move • How assignments differ in value, helps prioritize relative investment • How different groups need to be managed, rewarded and retained

MOBILITY PROGRAM DESIGN: TALENT SEGMENTATIONDIFFERENTIATION BY BUSINESS AND TALENT PURPOSE

High

Hig

h

Low

Low

Strategic Business Leaders

Fill mission-critical roles and deliver specific, strategic business results.

Emerging/ High Potential Talents

International learning and development to grow the next generation of leaders

Career-Building Volunteers (e.g., Generation Y)

International experience to fulfill personal life objectives (opportunistic,

employee-driven moves)

Seasoned Technical Experts

Providing specialist skill, resource or expertise to fill local gap; complete specific

project or task

Dev

elop

men

t Val

ue

Business Value

Business-led resource planning and deployment

3

4

1

2

Corporate-led career pathways and succession management

15MERCER WEBCAST

IMPROVING PROGRAM EXECUTION: GREATER INTERNAL COLLABORATION

The Talent Mobility Committee sets and drives the Talent Mobility Strategy:• Align global mobility planning with strategic workforce planning• Focus on value not cost; view global talent as an asset to be maximized• Manage the overall talent portfolio, not individual assignments • Have a centralized global talent P&L spend• Use evidence-based approaches to balance cost and return• Establish objective measures to track the return on investments

To get the right people at the right time at the right cost in the right places!

Talent Mobility Committee

Head of Talent Business BusinessCHRO Head Global

People and ODHead Global

Reward

Largest customers from the business

16MERCER WEBCAST

POLLING QUESTION

To what extent do you use workforce analytics or other quantitative methods to measure and model your talent pipelines and forecast potential talent gaps?

(Please reply in the box to the right of your screen)

17MERCER WEBCAST

Improved diagnostics

• Compare workforce patterns and gaps against priorities

• Evidence of internal trends to direct or refine talent mobility

Ongoing mobility monitoring

• Better program governance

• Measuring outcomes from management practices

Assignment Segmentation by Grade LevelHost locations and number of assignees

0

10

20

30

40

50

60

70

80

14 15 16 17 18 19 20 21 22 23 24 25 26 49

# of

Exp

atri

ates

Grade Level

Assignment Purpose

Key Strategic Role and Individual

Experienced Professional

Developmental moves

Volunteer Moves

Specialists Managers Directors DVP/ EVP/ SVP

Current Number of Assignees

1 - 56 - 10

11 - 15

16 - 25

26 - 150

Sample Human Capital Dashboard Sample Internal Talent Market Map

IMPROVING PROGRAM EXECUTION: GAUGING ASSIGNMENT EFFECTIVENESS

18MERCER WEBCAST

IMPROVING PROGRAM EXECUTION: INTERVENTIONS TO IMPROVE DELIVERY

MOBILITY INTRO & BRANDING

Initiate repatriation

steps

Repatriation cost projections confirmed

Returnee & family

preparation

Repatriation agreement finalized

Annual assignee

career discussion

Matching employee to

business needs

Support development in next role

Support host country succession planning

Leverage TMRoutcomes for match to next role

Leverage TMRoutcomes to plan next role

Talent (L&D)

Repatriation role profileCareer path examples

Tools

Provide guidance for planning and readiness; mentoring

Complete return agreement process

Develop repatriation cost estimate

Assess capabilities and preferences fit to potential positions

Identify potential open positions, locations

Mobility and HR

1-2 months before return2-3 months before return3-6 months before return6-9 months before return9-12 months before return Timing

Employee

Home country manager

Host country manager

Sign repatriation agreement; transition work

Approve terms of repatriation agreement

Transition planning; succession, knowledge transfer

Accept next role in home country and repatriation terms

Approve cost projections, role and repatriation

Transition work: prepare for return; reconnect with home

Report assignment experience and accomplishments

Define priorities and preference for return or next move

Initiate welcome home and on-boarding

Match to potential next roles (leverage int’l experience)

Ask assignee about experience gained, preferred next role

Mark assignment conclusion

Validate assignee role, experience and performance

Complete assignee performance management

Support development in next role

Support host country succession planning

Leverage TMRoutcomes for match to next role

Leverage TMRoutcomes to plan next role

Talent (L&D)

Repatriation role profileCareer path examples

Tools

Provide guidance for planning and readiness; mentoring

Complete return agreement process

Develop repatriation cost estimate

Assess capabilities and preferences fit to potential positions

Identify potential open positions, locations

Mobility and HR

1-2 months before return2-3 months before return3-6 months before return6-9 months before return9-12 months before return Timing

Employee

Home country manager

Host country manager

Sign repatriation agreement; transition work

Approve terms of repatriation agreement

Transition planning; succession, knowledge transfer

Accept next role in home country and repatriation terms

Approve cost projections, role and repatriation

Transition work: prepare for return; reconnect with home

Report assignment experience and accomplishments

Define priorities and preference for return or next move

Initiate welcome home and on-boarding

Match to potential next roles (leverage int’l experience)

Ask assignee about experience gained, preferred next role

Mark assignment conclusion

Validate assignee role, experience and performance

Complete assignee performance management

MOBILITY STEPS AND ROLES

(2 ) Experienced P rofessional

Purp

ose Provid in g techn ica l s ki ll /spe ciali zed expe rien ce , a pr oven expe rt to fil l a loca l gap. ( R&D benc h, plant,

e ngin eers, fin an ce , IT)Execu tin g and comp letin g a sp ecific bus iness pro ject o r taskSca rci ty of lo cal tale nt/Trans fe ri ng skil ls, kno wled ge an d cu l

Sele

ctio

n C

riter

ia

- Pro ve n skill s, capa bil it ies - Sen io r and Mid-Le ve l - R eleva nt e xp erien ce - Per for ma nce recor d

Dura

tion Betwe en 1 2-24 Mon ths (p otentia l fo r lon ge r d uration )

Succ

ess

Mea

sure

s B usiness spec ific output mea sur es : Prod uct/p roces s la unch; pla nt o peningQualitative mea sur es : Demo nstrate sk ill transferen ce; Su cce ssfu lly la unched prod uct/pro cess

“Gold” - Stand ard balanc e sh eet

Estimated 1st-yea r cost: $2 50 k - $50 0k; Poten ti all y up to $7 50k

Core

H ouseh old goo ds shippin g and storag e (s urfac e and a ir) Temp liv ing (30 da ys)Mobi li ty premiu m 10 %H ome ow ner’s assi stan ceD ocumentation (w ork permit/visa)Pre-d eparture tax assistancePre-a ss ign men t/h ouse- hunting trip

Flex

Pre-a ss ign men t cros s cul tu ral tra iningL angu age l essonsD esti nation se rvices (mode rate a ssistance )Famil y (spou sal ) a ss istanceL oss on ca r s ale

Core

C OLA (Me an-Mea n)L ocation p remiu m (hard ship a llo wance)H ost ho using (“mo derate” bud get)H ome h ousing no rmTax e qual izatio nTax p repa rati onEdu cati on al low ance (Internati onal scho oli ng)Bas e sa lary - h omeExpatria te med ica l p lanH ome o r i nte rna tio na l re ti r

Flex

H ome leaveH ome -country sto rag eAutomo bile a llo wanc e, if local poli cySpo usal al lowa nce

Rep

atria

tion

Core

Tra nspo rta ti onShipmen tTemp liv ing (30 da ys) i f nee dedMobi li ty premiu m 10 % (cap $1 0,000)

Yr1 $616,048

Yr2 $477,825

Yr3 $555,272

Yr4 $1,649,145Sa

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ts

(3 ) Developmental

Purp

ose In ternati onal d evelopme nt e xp eriences to bu ild from with in the ne xt gene ration of gl oba l le ade rs (ri sing talen t)

Potentia lly tr anfe rri ng skil ls/know led ge

Sele

ctio

n Cr

iteri

a - Hi gh po ten tial - Le vel (al l) - Geog raph ic h o me (e .g ., ta lent sou rce) - Per for ma nce recor d

Dur

atio

n Betwee n 2 4-3 6 mo nths (po ten tial for lo nge r d uratio n)

Succ

ess

Mea

sure

s Bus ine ss spec ific output me as ures: p roduc t/proc ess laun ch; met fina ncial targ ets ; acquisi tio n in teg ration ; prese rving mar ket sh are;Qualitativ e mea sures : C ultura lly ad justed ; succe ssfu lly na vigate d local business en vi ron me n t

“Silver” - Balan ce sh eet witho ut mo bil ity pre mium s a nd wi th h ousin g differe nti al

Estimated 1st-ye ar co st: $250 k - $5 0 0k; Poten tiall y u p to $ 750 k

Cor

e

Hou seh old go od s shipping (su rface ) Te mp livin g (30 da ys)

Home own er’s assi sta nceDocu mentatio n (work pe rmit/vi sa )

Flex

Pre-a ss ign me nt cro ss cu ltural trainin gLa ngua ge lessonsDestination se rvices (some assi stan ce )Fa mil y (spou sal ) a ssistancePre-a ss ign me nt trip

Core

COL A (Me an- Me an)Lo ca tion p remiu m (ha rdship al low ance)Host ho using (“l ess expe nsive ” b udg et)Home h ousing n ormTa x e qual izati onTa x p re pa rati onEduc ation al low ance (Intern ation al schoo li ng)Base sa lary - homeExpatria te me dica l pla nHome reti remen t

Flex

Home leave (ec ono my) Home -country storag e ( mo der ate )Automo bile a llo wan ce, w hene ver is mand ated lo call y

Rep

atri

atio

n

Cor

e

Tran spo rta ti onShip mentTe mp livin g (30 da ys) if n eede d

Yr1 $524,262

Yr2 $419,003

Yr3 $484,436

Yr4 $1,427,701Sa

mpl

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osts

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(4) Voluntar y

Purp

ose Employee -driven inte rna tiona l movemen t to mee t the ir own persona l l ife ob jec ti ves

Poten tially tranfe rring skil ls/knowledge

Sele

ctio

n C

riter

ia

- Ski lls, capabi liti es - Per for manc e r ecor d

Dur

atio

n Any

Suc

cess

M

easu

res Business specific output m easures : Product/process launch ; p lant open ing

Qualitative m easures : D emonstrate ski ll tr ansfe rence ; Successful ly launched product/pr oces s

“Bronze” - Loca l p lus package - One -time al lowances

Estima ted 1st-yea r cost: $150k - $200k

Cor

e

Ho usehold goods shipping (su rface) Tempora ry l iving (0- 30 days)

Do cumen tation (w ork pe rmit/visa)

Flex

Pre-assignment trip*

Core

Loca tion All owance (if necessa ry fo r tax/housing subsidy)

Tax p repa ration

Base s ala ry – hostHo st country medical planLoca l pension

Flex

Rep

atria

tion

Core

TransportationShipmen t

Yr1 $319,236

Yr2 $266,559

Yr3 $255,264

Yr4 $841,058Sam

ple

Cost

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(1) Key Strategic

Pur

pose D eployin g ‘mos t valu able player s’ (cu rren t/future le ade rs) to me et s tra teg ic bu sin ess n ee ds.

Fil lin g mission criti ca l roles with high p erformin g and s eason ed e xe cutive s

Sel

ectio

n C

riter

ia

- Ke y ta len t - Se nio r Leve l - Pe rfo rman ce recor d

Dura

tion Be tw een 2 4-36 Mo nths

Succ

ess

Mea

sure

s B us ines s spec ific output me a sures : met fi nanc ial ta rg ets; su sta ina ble busines s e nviron ment; app rop riate in co un tr y tale nt m ana geme ntQua lita tive mea sur es : D emon str ate skill tra nsferenc e; Su ccessful ly la unche d pro du ct/pro ce ss

“Diamond” - Ba lan ce she et w ith hig he r premiums - HQ-b ase d s tr ucture may ap ply

Estima te d 1st-yea r co st: $75 0k+

Cor

e

H ouseh o ld goo ds shipping a nd storag e (surface a nd a ir) Temp li vin g (3 0 da ys)Mob il ity pre miu m 1 5%H omeo wne r’s assista nceD ocume ntation (w ork pe rmit/vi sa)Pre- dep arture tax assista ncePre- assign men t/h ouse- hun ting trip

Flex

Pre- assign men t cros s cu ltural trainingL ang uag e le ss onsD estina tion se rvicesFami ly (spou sal ) a ss istan ceL oss on car sa le

Core

C OL A (C onve nience)L ocatio n pre mium (ha rd ship al low ance )H ost ho u sing (“mo derate to exp ens ive” bu dget)H ome ho using no rm (wa ive d)Tax equ ali zatio nTax prep ara tio nEd ucatio n al low ance (Intern atio nal sch ool ing )Ba se salary - h omeExpa triate med ica l p la nH om

Flex

H ome le aveH ome-co untry sto rag eAu to mo b ile al lo wanc eSp ousa l all owa nce

Rep

atria

tion

Cor

e

Tran sportationSh ipme ntTemp li vin g (3 0 da ys) if n eed edMob il ity pre miu m 15% (cap $15 ,0 00)

Yr1 $715,675

Yr2 $563,935

Yr3 $655,155

Yr4 $1,934,765Sa

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POLICY OVERVIEW AT A GLANCE

ASSIGNMENT PLANNING

ONLINE MULTI-RATER ASSESSMENT TOOL

Multi-Rater Assessment and

Feedback

ManagerManager

SelfSelf

Others(e.g., Internal Customers)

Others(e.g., Internal Customers)

PeersPeers

DirectReportsDirect

Reports

19MERCER WEBCAST

SUMMARY

• Talent Mobility is here; concept is becoming widely acknowledged by large multinational organizations as a collaborative effort between many stakeholders to achieve business results.

• Much closer alignment of Talent and Mobility functions.• Global Mobility is evolving to address many Talent objectives.• The business value vs. development value

proposition is/should be a key determinant of the structure of employee mobility programs. One approach may no longer fit all.

• Multi-layered (tiered) policies are becoming common.

• Knowledge (information) is king.

20MERCER WEBCAST

QUESTIONS

Steve Nurneysteven.nurney@mercer.com+1 203 229 6103

Mike Pikermike.piker@mercer.com

+1 212 345 2138

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Carlos Mestrecarlos.mestre@mercer.com

+41 22 869 30 90

21MERCER WEBCAST