KPMG’s IES – International Assignment Policy Event 2014

International Assignment Policies and Practices SurveySwiss Headquartered Companies

2014

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Key topics from the 2014 Survey

How do I integrate my Talent Management and Mobility functions?

How do I measure the success of an international assignment?

How do I achieve consistent quality in my assignment administration processes?

What is best practice for assignments to emerging markets?

How should I manage my population of international commuters?

Should I be taking any additional cost-saving measures?

Demographics


Demographics

9%

27%

6%14%

14%

7%

14%

8%

Construction/Engineering

Financial services

Food and beverages

Fast-moving consumergoodsHigh Technology

Industrial Products

Pharmaceuticals

Retail and ConsumerProducts

In which industry sector does your companyoperate?

32%

26%

22%

13%

7%

Less than 50

51 to 100

101 to 500

501 to 1000

Over 1000

How many assignees does your organisation haveglobally?

Talent Management


Talent Management

To what extent is your company’s global mobility program linked to its talent management strategy?

29%

57%

14%

Not at all

Somewhatintegrated

In process ofintegrating the two


Talent Management

16% of companies do post-assignment or succession planning prior to or during an international assignment

40% of companies have a formal global process in place to assess assignment performance

21% of companies have a formal process in place for pre-assignment planning and candidate selection

Measuring the Success of an International Assignment Program


Measuring the success of an international assignment program

Can your organization accurately track the costs of an international assignee?

4%10%

21%

64%

No cost tracking is done forinternational assignees

No, but we are currentlyputting a process in place totrack all assignment-relatedcostsYes, costs are tracked on a locallevel

Yes, costs are tracked centrally



Besides cost, which other metrics does your organization use to measure the success of its international assignment programs?

61%18%

6%

15%

No formal process formeasuring assignmentsuccess

Successful repatriationand re-integration intothe home countryorganization

Promotion duringassignment or uponrepatriation

Retention rates followingrepatriation



Approximately what percentage of your international assignees leaves the company within 12 months of completing an international assignment?

29%

36%

10%

3%4%

14%

Less than 1%

Between 1 and 5%

Between 6 and 10%

Between 10% and 20%

Between 20% and 30%

Not Known

Assignment Administration



Which of the following assignment-related processes have you outsourced?

0% 20% 40% 60% 80% 100%

Relocation Services

Expense management and processing

Immigration and work permits

Assignee payroll

Assignment package calculation

Compensation collection and reporting

Assignment cost projections



In your opinion, what is the most important reason for outsourcing?

29%

12%

18%

32%

9%

Lack of in-houseknowledge/expertise

To focus on mobility strategy andlimit involvement in operationaldelivery

To reduce costs and/or headcount

To gain access to specialist skillsand knowledge of externalprovider

To gain higher quality of service



Has your organization off-shored any of its assignment-related processes to lower-cost locations?

21%

78%

YesNo



Staff turnover

Staff training and knowledge

transferAchieving consistency of

service

Establishing robust processes

Recruiting and retaining staff

Increased risk

What are the major challenges you have encountered with the off-shoring process?

Cost Savings


Cost Savings

In the past 12 months, have you taken any new measures to reduce the costs of your international assignment programs?

57%

43% YesNo


Cost Savings

Which new measures have you put in place?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Reduction of assignment-related allowancesand benefits

Reduction in the number of internationalassignees

Using host plus or local to local policies morefrequently than the balance sheet approach

Better assignee selection process

Improvements in cost projection and costtracking process


Cost Savings

If your company has multiple assignment policies, which is the one you use most frequently?

54%

16%

8%

22%

Home based assignment(balance sheet approach)

Host plus based assignment(market terms approach withhousing, education or othersupplements)

Short Term Assignment

Local to Local


Cost Savings

In the past 12 months, have you, or do you plan to, make any reductions to your assignment allowances?

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Other

Mobility premiums, paid at the start of or duringthe assignment

Hardship premiums

Cost of living allowance

Home leave provisions

Housing deduction

Other relocation and settling in benefits, such aslanguage lessons or spousal support


Cost Savings

What is your approach to cost of living allowances when the result is negative?

46%

7%

39%

8%

No amount is deducted from the assignee - the assignee is informed of the additional “benefit” he is receiving

No amount is deducted fromthe assignee - the assignee isnot informed of the benefit

Negative cost of livingallowance is deducted in full

Negative cost of livingallowance is deducted butwith a cap

Assignments to Emerging Markets



7%

... but only 7% of companies have made changes or adapted their policies to suit the needs of assignees to emerging markets

71% of companies have seen an increase in the number of assignees to emerging markets... 71%

7%



What type of allowances and benefits are you providing to assignees to emerging markets which are not provided to assignees in other countries?

Other

Hardship premium

Rest and Recreation Leave

Security (security guards, driver etc)

None

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

International Commuters



Does your company have a policy in place to manage international commuters?

43%

36%

7%

14%Yes – a formal policy is in place

Commuters are managed onan ad hoc basis

No policy is in place, but weare actively working on apolicy

No



Does your company attempt to identify and manage individuals who are commuting for personal reasons as opposed to business reasons?

7%

50%

43%

Yes – these individuals are systematically identified and managed under a policy

These individuals areidentified and managed onan ad hoc basis

No



How are commuters managed from a tax policy perspective?

0% 10% 20% 30% 40% 50% 60% 70% 80%

These individuals are subject to taxequalization or tax protection

These individuals are not equalized,but are provided with some net

benefits

These individuals are not equalizedand are not provided with any

benefits

Personal Commuters

Business Commuters



How are your commuter assignees paid?

61%

34%

5%Through home country payroll

Through host country payroll

Through split payroll(combination of home andhost)



Are benefits such as accommodation, travel and per diems provided to individuals commuting for personal reasons?

40%

60%

Yes

No

Thank you

Judith Mitchell

Partner, International Executive Services

Lausanne

KPMG’s IES – International Assignment Policy Event 2014

Economy & Finance

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