KPMG’s IES – International Assignment Policy Event 2013

International

Assignment

Policies and

Practices Survey

Swiss Headquartered Companies

2013

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International.

Agenda

1. Demographics

2. Key Challenges for Global Mobility in

2013

3. Transferring Employees to Emerging

Markets

4. Meeting rapidly changing business

requirements

5. Local to Local transfers

6. Income Tax and Social Security

Compliance

7. Legal Issues

Demographics



International.

Demographics

In which industry sector does your company operate?

12%

29%

6% 6%

6%

12%

12%

6%

12%

Construction/Engineering

Financial Services

Food and beverages

Healthcare and Medicine

High Technology

Manufacturing

Pharmaceuticals

Retail and Consumer Products

Other



International.

Demographics

How many assignees does your organization have globally?

6%

6%

29%

24%

24%

12%

Less than 10

10 to 50

51 to 100

101 to 200

200 to 500

501 to 1000



International.

Demographics

Top Home and Host locations

Switzerland

United States

Singapore

Hong Kong

China

New assignment destinations

added in 2013

•Argentina

•Chile

•Panama

•Uruguay



International.

Key Challenges for Global Mobility in 2013

Key

Challenges

for Mobility

Transferring

Employees to

Emerging Markets

Increased use of Local

to Local transfers

Meeting rapidly

changing business

requirements

Ensuring local

compliance with

global policy

Transferring

Employees to

Emerging Markets



International.

Transferring Employees to Emerging Markets

Which policy do you use to transfer employees to emerging markets?

71%

18%

12%

Balance sheet approach

“Host-Plus” package (host-based with certain benefits provided)

Other



International.


Companies using the Balance Sheet approach LESS than in prior years

69%

44%

19%

2010 2012 2013



International.


Do you ever transfer any employees to BRIC or other developing countries on a

Local to Local basis?

59%

41% Yes

No



International.


If yes, do you pay any benefits in addition to those provided under your

standard Local to Local policy?

41%

35%

35%

35%

29%

29%

6%

6%

Tax return preparation

Home-finding assistance

Temporary accommodation

Full or partial school fees

Lump-sum relocation allowance

Housing support

Location premium/allowance

Nothing in addition

Meeting rapidly

changing business

requirements



International.

Meeting rapidly changing business requirements

Trend away from the balance sheet seems to have slowed - but pressure to control costs remains

Need for greater flexibility in policies – decisions on level of benefits is more frequently left to the business

Business has to be more agile to compete in rapidly evolving markets – Mobility has to ensure it is keeping pace

As transfers to developing countries become more common, so do split-family situations. What is the appropriate level of support to provide?

Challenges for Mobility



International.

Meeting rapidly changing business requirements

62%

38%

Have you made changes to your assignment policy in the past 12 months?

Yes

No

Local to Local Policy



International.

Local to Local transfers

What is your company’s policy in relation to Local to Local moves?

24%

6%

65%

6%

No formal policy – benefits provided to transferring employees are agreed on a case-by-case basis

Formal policy or guidelines are in place for Local to Local moves to Switzerland

Formal policy or guidelines are in place and are applied globally

Other



International.

Local to Local transfers

Which are the standard benefits you provide to all employees transferring under

your company’s Local to Local policy?

71%

71%

65%

59%

35%

24%

12%

6%

Temporary accommodation

Tax return preparation

Home-finding assistance

Lump-sum relocation allowance

Other *

Full or partial school fees

Housing support

Nothing in place

Income Tax and Social

Security Compliance



International.

Income Tax and Social Security Compliance

Do you see the lack of a global overview of how payroll reporting and

compliance issues are handled at the local level as a serious risk for your

company?

71%

29%

Yes

No



International.


Although you may have a global policy in place, how do you ensure that local

payrolls are correctly implementing the policy?

41%

35%

35%

29%

Global compensation collection and reporting process ensures compliance

Compliance is left to each country

Global process in place to ensure compliance

Other *



International.


What is your company’s approach to cross-border workers and short-term

business visitors?

41%

41%

35%

24%

6%

Population not managed or tracked by Mobility

Specific policies have already been developed to deal with this population

Population not tracked centrally and there may be compliance risks

There is generally a good awareness in the company of risks associated with this population

Very limited numbers of short-term business visitors and commuters



International.


What are your major compliance concerns in respect of your globally mobile

employees?

65%

59%

53%

47%

41%

29%

Income tax compliance

Collecting and reporting global compensation

Social Security Compliance

Tracking of assignees

Tracking and reporting equity compensation and host-paid benefits

Legal issues



International.

Legal Issues

Which legal issues are of the greatest concern to you?

65%

47%

41%

18%

12%

Provisions in case of termination of employment

Structuring of assignment contracts

Provisions around sick leave, annual leave, maternity leave etc

Changes to assignment policy

Other

Thank you

Judith Mitchell

Partner, International Executive Services

Lausanne

KPMG’s IES – International Assignment Policy Event 2013

Business

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