Deloitte Consulting Strategic Moves Dec 2012
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Deloitte Consulting Strategic Moves Dec 2012 Deloitte Consulting Strategic Moves Dec 2012 Presentation Transcript

  • Strategic Moves 2012 The Global Mobility Island GO A global survey on today’s workforce mobility challenges1
  • ForewordStrategic Moves 2012The Global Mobility IslandForeword Welcome to our annual Strategic Moves Survey.Executive summaryThe business requirements of global mobility The 2012 survey report provides insights into the current and future state requirements of Global Mobility. As the report clearly states, the direction for Global Mobility is clearThe lack of integration – businesses expect strategic value from the investments they are making in global talent and for this reason Global Mobility will have to enhance its capabilities. We hope thatCan global mobility start to close the gap? you find the report insightful and that it gives you meaningful guidance as to what theVisions for the future of globalmobility future for Global Mobility could be.AppendixContacts Strategic Moves 2012 The Global Mobility Island 1B
  • Executive summaryStrategic Moves 2012The Global Mobility Island Global mobility: alive and well, but marooned Proportion of those who Professionals who describeForeword An increasingly globalised world needs a global, identified global mobility their own organisations’ as an important tool global mobility practices mobile workforce. Few business leaders would to address top-three as “World-class”Executive summary disagree in principle. Most are happy to go beyond strategic business issues principle: They readily identify emerging markets 100%The business requirements of global mobility and the need for global mobility as priorities for their own organisations.The lack of integration for emerging But knowledge is not action. In the latest annual survey of almost 200 HR, talent and global geographicalCan global mobility start to close the gap? mobility professionals from companies around markets the world, the same responses that reveal a keen 99%Visions for the future of globalmobility awareness of global mobility issues also show little movement to address those needs. Where 2%Appendix for increasing organisations are taking steps, they appear to be aligning their global mobility strategies with globalisationContacts functional needs, not with key business priorities. And they are not using global mobility to help develop the next leadership generation. 98% for increasing competition 22
  • Strategic Moves 2012The Global Mobility Island It is as if business is sailing on towards a This highlights opportunities for the businessForeword global future, having left global mobility and global mobility teams to deepen ties with strategy behind on an island of its own. each other which may start to be happeningExecutive summary Organisations that fit this description risk finding now. Nearly 40 percent of organisations say they themselves awash with new opportunities are currently reviewing or are about to review 34%The business requirements of global mobility they don’t have the workforces to exploit. This their overall global mobility strategies, including is because business isn’t the only thing going alignment with business issues and goals.The lack of integration global. Talent is as well. We are now operating plan to review in an open talent economy. Today, talent moves In practical terms, alignment requires business leadsCan global mobility start to close the gap? their global easily to and through the boundaries that used to or HR business partners to involve global mobility mobility demark organisations and even nations. People at strategy table discussions where business issuesVisions for the future of globalmobility strategies are the CEOs of their own careers, and long-term are addressed, so global mobility can articulate the in the next employment – even formal employment of any value assignments may bring. It also requires globalAppendix 12 months duration – has less hold on them than ever before. mobility to engage regularly with the business, directly or via HR business partners, to provide The continuing disconnect between thinking and statistics and challenges aligned to top businessContacts action on global mobility shows organisations are issues. Mobility leaders must also keep abreast of still at sea when it comes to embracing the open changing business drivers that may affect the way talent economy. They have a sense of what must they structure their programmes and deliver services. happen but not a plan for making it happen. One particular finding from the survey sheds Can global mobility start to close the gap? insight into why strategists embrace the idea of Organisations recognise global mobility as global mobility even as the organisations they lead a tool to support the most top strategic appear to lag in implementing it. Respondents in business issues, namely emerging geographical different roles were asked whether they felt global markets, increasing globalisation and increasing mobility was a purely administrative function, a competition. However, only a small percentage strategic value-adder, or both. Respondents in are using mobility fully to address those issues. business HR roles were most likely to see it as Global mobility is still behind the curve when it purely strategic (42 percent). But in a mirror-image comes to driving business results. Seventy percent outcome, those tasked with high-level talent of business and HR stakeholders say global and reward responsibilities – the people with the mobility in their organisation is underperforming power to elevate global mobility to the realm of or needs improvement, some of it significantly. grand strategy – were most likely to see it as purely administrative (42 percent). 33
  • Strategic Moves 2012The Global Mobility Island Taking a closer look at this disconnect, of Overall, this indicates a lack of clarity amongstForeword those organisations who rate talent as critically organisations in determining which improvement important, the majority do not rate themselves as initiatives they should use to ensure theirExecutive summary world class in the use of global mobility practices programmes are meeting their strategic objectives. 88% for talent purposes. Echoing the results from the Where companies are undertaking improvementThe business requirements of global mobility 2011 survey, this suggests there is still a large gap activities, the main focus appears to be on between where organisations are now and where policy and process review and redesign. WhenThe lack of integration they want to be in terms of global mobility. asked however about what initiatives should be said that their undertaken in the next 12 months there was no organisations The majority of organisations surveyed are well consistent response or understanding of which do not haveCan global mobility start to close the gap? aware of the current limitations of their global improvement areas should be prioritised. This is either clear mobility programmes from a practical as well as a another symptom of the disconnect between a measures orVisions for the future of globalmobility strategic standpoint, but they are not translating stated desire for strong mobility programmes and measurement that awareness into initiative: Only 2 percent see the failure to make them a reality. basedAppendix themselves as world-class and only 12 percent improvement report that they perform clear assessment of their What is the way forward in the short term? plans, or bothContacts mobility practices and link those assessments In order to align global mobility to business and to improvement efforts .The vast majority talent strategies, companies need to define what of organisations surveyed (88 percent) are they want to achieve, make a regular assessment undertaking only a limited assessment of their of whether they are achieving it, analyse the gap, mobility practices. and make plans to close it. Based on the survey results, it is clear the majority of organisations that This is a surprising result given the amount spent responded to the survey are not doing this. on international assignments each year. Global In summary, organisations need to: mobility and HR leaders should ask themselves: Would other HR areas, such as reward, learning 1)  gree upon the strategic purpose of global A and development, or talent management, receive mobility within their organisation and define similar neglect if they were found wanting? By what great looks like to all key stakeholders. Once failing to assess and measure global mobility this has been established, the appropriate strategy practices in a planned and regular manner, can be agreed upon and improvement roadmaps organisations are missing the chance to fully developed. This may require better integration of understand their difficulties and learn how to various technology systems, processes, polices, overcome them. You cannot strengthen an ability vendor capabilities, and overall use of data if you won’t even measure the ways it’s deficient. analytics amongst other initiatives. 44
  • Strategic Moves 2012The Global Mobility Island 2)  nderstand the value proposition of U What is the way forward in the future?Foreword global deployments: Take time to look at Whilst focusing on these initiatives in the who they are sending on assignments and short term will start to close this gap it alsoExecutive summary why and how this fits in with the individual highlights the longer term challenge that business units growth and talent plans. This global mobility is still missing one key element 70%The business requirements of global mobility will involve the use of appropriate candidate in its scope of services: an overlaying ability to selection, assignment justification, and develop strategic initiatives (or ‘propositions’)The lack of integration assignment approval processes. There may in alignment with specific business priorities. of business HR be alternatives to mobility in many cases These propositions respond to critical long-termCan global mobility start to close the gap? stakeholders such as through talent acquisition and talent strategic organisational capabilities such as M&A say global retention strategies. Likewise, assignment activity, change acceleration, culture change,Visions for the future of globalmobility mobility in their extension, early repatriation, and assignment talent gaps, and growth. Given the business organisation is failure should be investigated to see to it that challenges leading global organisations face thisAppendix underperforming assignment costs are not being wasted. new area of strategic focus should be in the area or needs of global workforce management – the strategic significant 3) Enhance the use of mobility data analytics. management of an organisation’s global supplyContacts improvement Not only report on cost, but look at it and demand of skills and talent. This will require alongside other metrics. If total assignment the creation of new capabilities within global costs go up slightly but all strategic KPIs are mobility to drive global workforce planning being met, then the additional investment is improvements across the entire organisation. likely to be worthwhile to the organisation. Likewise cost reductions should not be made if they will lead to missed KPIs in other areas. 55
  • Strategic Moves 2012The Global Mobility Island If global mobility is ever to truly meet the needs Positioned appropriately, by adding globalForeword of the business, it needs to move away from workforce management capabilities to their suite traditional, functionally aligned roles to business- of services, global mobility can be the key playerExecutive summary aligned roles that can support the projects and in solving an organisation’s long-term skill supply- programmes that the business is focused on. With and-demand talent gaps. There is tangible valueThe business requirements of global mobility alignment on solutions for business challenges to be realised, but it will likely take a departure like global workforce management, the mobility from the current model and a strong vision ofThe lack of integration teams and centres of expertise can finally close the future in order for organisations to truly align the gap and align with the business by solving mobility and talent with their wider business andCan global mobility start to close the gap? their most critical business issues. This does talent strategies. not mean the end of traditional mobility teamsVisions for the future of globalmobility and centres of expertise, but it does require Talent & Reward Business HR organisations to rethink the way they provide respondents consider respondentsAppendix support for both functional and business focused Global mobility consider Global needs and supplement these functions and Administrative Mobility Strategic roles with new global workforce managementContacts capabilities. This will also require investment both in wider functional capabilities such as global standard reporting and HR technologies, together with the ambition to invest ahead of the talent demand curve to create the required supply 42% 42% of talent. 66
  • Strategic Moves 2012The Global Mobility Island The business requirements of global mobilityForewordExecutive summaryThe business requirements of global mobilityThe lack of integrationCan global mobility start to close the gap?Visions for the future of globalmobilityAppendixContacts 77
  • Strategic Moves 2012The Global Mobility Island The challenge for global mobility An emerging opportunityForeword The world has seen waves of globalisation before. The macro context for companies that wish to do Nineteenth-century European struggles over business in the global marketplace is illustrated inExecutive summary Africa, central Asia, and the Americas were slow- Figure 1. Note the contrasts between developed motion precursors to the moves multinational countries and emerging countries in actual andThe business requirements of global mobility organisations are making today. The new targets forecasted growth. With growth rates of around for growth and profit include the BRIC countries 2 percent in the former and 7 percent in the latter,The lack of integration of Brazil, Russia, India, and China, but extend to there is a clear gap in potential. The opportunities other, so-called “emerging” markets. for growth in emerging countries far outstripCan global mobility start to close the gap? those in mature ones. However, organisations These markets offer high growth, or at a cannot reap these growth opportunities unlessVisions for the future of globalmobility minimum the potential for high growth, to they master the challenge of putting the companies operating in the saturated and necessary skills, leadership, and development in depressed markets of the “developed” world. place, and retaining them.Appendix Multinational organisations are bound to seek out these new opportunities if they wish to Along with the differences in growth rates,Contacts improve their return on equity and enhance the the overall balance of world GDP is changing attractiveness of their shares. Some companies [Figure 2]. By 2018 emerging markets will have have seen their profits eroded as consumer more than half the globe’s GDP. Emerging demand in traditional markets has ebbed over economies already account for more than half the last few years. Even companies that have the world’s steel and oil consumption, car sales, been successful during the recession must now foreign exchange reserves, and other indices – contend with market saturation. In either case, even mobile phone subscriptions. the emerging world beckons as a place to do and grow business. Taken together, these indicators paint the picture of a large-scale shift in the global economy’s centre of mass. 88
  • Strategic Moves 2012The Global Mobility Island Figure 1. Emerging Country and Developed Country GDP Growth (with IMF Forecasts)Foreword GDP Growth 10Executive summary Projected 8The business requirements of global mobility 6 4The lack of integration 2 0Can global mobility start to close the gap? -2Visions for the future of globalmobility -4 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16Appendix Developed Countries Emerging Countries Trend Trend Source: Deloitte: Transforming Mindsets: Effective Business Models for Emerging Markets 2012Contacts Figure 2. Global balance Economies’ share of world GDP, %. At market exchange rates 100 Forecast 90 80 70 60 50 40 30 20 10 0 1990 95 2000 05 10 15 20 Developed Emerging Source: AT Kearney; Bloomberg; BP; dotMobi; Fortune; IMF; UBS; UN; World Bank; World Steel Association; WTO 99
  • Strategic Moves 2012The Global Mobility Island No lack of awareness The second and third-place concerns – still aheadForeword Because of the growth gap and the change in the of concerns such as technology, and regulatory balance of trade, emerging markets have become pressure – were “increasing globalisation” andExecutive summary a top strategic issue for companies everywhere. “increasing competition.” Companies are seeking The survey results show business leaders growth right across this spectrum, from SouthThe business requirements of global mobility appreciate this fact [Figure 3]. Asked to name their America through the former Soviet republics, the organisations’ most pressing strategic business Middle East, Africa and the Asia-Pacific region.The lack of integration issues, they were most likely to name “emerging geographical markets” as the topmost one, andCan global mobility start to close the gap? most likely to rank it among the top three.Visions for the future of globalmobility Figure 3. Top strategic business issues as ranked by respondentsAppendix 73%Contacts 58% 52% 38% 36% 29% 28% 18% 17% 8% 8% 11% 7% 2% Emerging Increasing Increasing Increasing Advances in Mergers and Demographic geographical globalisation competition regulatory technology acquisitions shifts (e.g. ageing markets pressure populations, low birth rates) Top issue* Top three issues combined Top three issues *2% respondents selected “others” as their top issue. 1010
  • Strategic Moves 2012The Global Mobility Island Figure 4. How important is it for global mobility to support the stratgic business issueForeword 80% 80%Executive summary 52% 52% 53%The business requirements of global mobility 46% 42% 42% 43% 46% 39% 34%The lack of integration 20% 20% 19% 18% 7%Can global mobility start to close the gap? 0% 1% 2% 5% Emerging Increasing Increasing Mergers and Advances in Increasing Demographic geographical globalisation competition acquisitions technology regulatory shifts (e.g. ageingVisions for the future of globalmobility markets pressure populations, low birth rates)Appendix Very important Important Not important Top three issuesContacts 1111
  • Strategic Moves 2012The Global Mobility Island Clearly, the surveyed organisations knowForeword emerging markets are a key strategic challenge Spotlight: strategic business issues experienced differently? for them. In fact, 98-100 percent identified Industry variation: Increasing competition, a top-three strategicExecutive summary global mobility as an important tool to support business issue across all survey respondents, does not figure the business in addressing top three strategy within the Financial Services industry. Instead, this sector placesThe business requirements of global mobility issues [Figure 4] – i.e. emerging geographical mergers and acquisitions in the top-three list. markets (100%), increasing globalisation (99%),The lack of integration and increasing competition (98%). Organisations Regional variation: North American companies do not rank recognise global mobility as a fundamental emerging geographical markets or increasing competition as highCan global mobility start to close the gap? support mechanism. What remains to assess is among their challenges as do their counterparts in Europe and what they are doing about it. the rest of the world. On the other hand, Merger & Acquisitions isVisions for the future of globalmobility a top-three issue for North American companies – and increasing Actions versus intentions globalisation is twice as important in North America as it is in the Despite this seemingly strong mandate on the other regions.Appendix global strategy front, business lines do not appear to value global mobility and do not use itContacts effectively to solve organisational challenges. The survey results show global mobility is not currently Even when the question focuses on emerging being used to address all areas where respondents markets, which respondents to the survey clearly acknowledge it can play an important role. For identified as the top strategic issue, the expected example, although 98 percent of respondents follow-on moves do not appear: Fully two-thirds feel mobility should support efforts to address of businesses report mobility is only partially increasing competition, 16 percent of those supporting them in this area. respondents feel it isn’t being used for this purpose On these few statistics alone, the business case [Figure 5]. Only 12 percent say it’s being used fully, for a well-structured global mobility strategy leaving a vast middle ground – almost three- stands in sharp relief. The strategic issues that quarters – who see global mobility being used only companies identify for themselves are ones that partially to address competition for business. could respond positively to an effective mobility This indicates a clear gap and an area for strategic strategy, yet at present those same companies improvement, and indeed, survey respondents aren’t bringing mobility to bear against those see it as well: 98 percent of all respondents say challenges. This appears to be a self-imposed that their organisations’ global mobility practices limitation on the realisation of growth potential. are less than world-class completely, and need improvement. 1212
  • Strategic Moves 2012The Global Mobility IslandForeword Spotlight: global mobility leveraged differently to address business issues?Executive summary Industry variation: Energy & resources and financial services organisations use global mobility to address their strategicThe business requirements of global mobility business needs more than any other sectors. Consumer business and transportation use global mobility the least.The lack of integration Regional variations: North America is the region that makes theCan global mobility start to close the gap? least use of global mobility to completely address its top business issues.Visions for the future of globalmobilityAppendix Figure 5. The requirement fulfillment gap How important is it for global mobility to support To what extent is global mobility currently being used toContacts the strategic business issue address the strategic business issues 16% Increasing 98% 72% competition 12% 9% Increasing 99% 63% Globalisation 28% 3% Emerging Geographic 100% 66% Markets 31% Not at all Partial Complete 1313
  • “t is essential to our Firm’s growth IStrategic Moves 2012The Global Mobility Island and success in supporting client needs,Foreword particularly in priority markets that weExecutive summaryThe business requirements of global mobility effectively plan, execute and maximiseThe lack of integration strategic mobility assignments as anCan global mobility start to close the gap? opportunity to advance our mobilityVisions for the future of globalmobilityAppendix strategy and deploy and develop talent.”Contacts Christina Antoniou Leader Global Mobility and Sourcing, Deloitte China 1414
  • Strategic Moves 2012The Global Mobility Island The importance – and challenge – of the We have seen that emerging and high-growthForeword mobile workforce markets are increasingly being seen as critical to No matter how robust their overall growth business survival and growth. These markets bringExecutive summary strategies, many companies find themselves with them some specific operating challenges, struggling to compete in new markets when it particularly in terms of skills and employability.The business requirements of global mobility comes down to specifics like product, resources, Because of a lag in tertiary education and a lack scale, or sustainability. The practicalities of of business experience and expertise, managersThe lack of integration growing a business at arm’s length are complex. in these markets often contend with a scarcity Fundamental model challenges are only of skills such as leadership, teamwork, problemCan global mobility start to close the gap? the beginning. Additional obstacles include solving, management, and, in many cases, English resourcing, training, brand, expertise, experience, proficiency. The result is an enhanced need forVisions for the future of globalmobility control, compliance, and providers. These factors imported talent – which presents problems of its combine to make a compelling case for workforce own in situations that require an understandingAppendix intervention – whether through recruitment, or experience of a specific culture. As developing assignment, or identification of existing resources. economies invest billions of dollars in healthcare, infrastructure, and other large projects, they needContacts Global mobility and workforce management to import talent, skills, advisors, and experienced can help address these challenges through a personnel. well-thought-out combination of assignments, relocations, local hires, and business trips. In addition to the skills shortage on the ground But moving from theory to practice requires right now, there is clearly a wider issue concerning overcoming two broad problems. First, how development of local talent for future needs. can organisations effectively estimate, identify, Demographic changes mean some countries manage, move, and segment the various parts of stand to pair domestic workforce growth with their mobile workforces? Second, how should the economic expansion, but other markets have management of this mobile population interact lower forecasted workforce growth (such as with the identification and development of China) or lower forecasted growth in jobs (such as talent to address business objectives and remain Greece). competitive? 1515
  • Strategic Moves 2012The Global Mobility Island Clearly, global businesses need mobile workforces Talent & Reward Business HRForeword to address these asymmetrical objectives. Despite respondents consider respondents this clear rationale for global mobility, thereExecutive summary Global mobility consider Global are differing trends in terms of the numbers of Administrative Mobility Strategic assignees or other mobile individuals globally.The business requirements of global mobility More than 60 percent of the organisations surveyed expect the number of assignees (orThe lack of integration mobile employees) to increase or significantlyCan global mobility start to close the gap? increase within the next three to five years. This aligns with the results of the same survey last 42% 42% year, which showed an even greater expectationVisions for the future of globalmobility of future mobility (74 percent). This finding supports the case for mobility as an ongoingAppendix trend amid the global grab for growth. The way forward: What is mobility’s place inContacts organisational thinking? One particular finding sheds insight into why Figure 6. Is the contribution of global mobility considered strategic/value adding strategists embrace the idea of global mobility or administrative? even as the organisations they work for appear to lag in implementing it. 28% 27% 42% Respondents in different roles were asked 30% whether they felt global mobility was a purely 48% 25% administrative function, a strategic value-adder, or both. Respondents in business HR roles 42% were most likely to see it as purely strategic (42 25% 33% percent). But in a mirror-image outcome [Figure Business HR Global Mobility & HR Operations Talent & Reward 6], those tasked with high-level talent and reward responsibilities – the people with the power to Administrative Both Strategic/Value adding draw global mobility to the strategic discussions – were most likely to see it as purely administrative (42 percent). 1616
  • Strategic Moves 2012The Global Mobility IslandForeword Case in point: the global evolution The benefits of a thoughtful approach to globalisation, applied by a large UK retail organisation whose keyExecutive summary business lines were trying to tackle its need to get global quickly, drove an outcome which required redesigning the fundamental building blocks of its existing global mobility operations. HR leadership decided upon an evolutionaryThe business requirements of global mobility approach to globalisation. Attuned to the company’s tolerance for change and to the real business drivers behind the globalisation need, the HR team understood that trying to change too quickly would not create a sustainable model.The lack of integration They recognised from the onset that the driver for globalisation was the need to increase the organisation’s presence in critical emerging markets and, as a result, the primary goal of globalisation needed to focus on providing a globalCan global mobility start to close the gap? view of the organisation’s global talent base through a future workforce planning initiative.Visions for the future of globalmobility As a result of the global workforce planning initiative, HR prioritised its transformation of the global mobility programme to focus on three core elements: (1) implementing a single, global compensation management solution where employee compensation could be delivered reported effectively across borders; (2) standardising theAppendix mobility-related processes and service delivery model that affected the organisation’s ability to identify and deploy global talent and, (3) harmonising and communicating the value proposition of global mobility through segmentedContacts polices and re design of their internal intranet and communications platform. Through these three key initiatives, HR was able to support the need for globalisation and greater global mobility while establishing the foundation for future globalisation efforts. 1717
  • The lack of integrationStrategic Moves 2012The Global Mobility IslandForewordExecutive summaryThe business requirements of global mobilityThe lack of integrationCan global mobility start to close the gap?Visions for the future of globalmobilityAppendixContacts 1818
  • Strategic Moves 2012The Global Mobility Island The survey shows that organisations that spend The earlier finding in Figure 6 reinforces the senseForeword time and resources to address large-scale business of this challenge. Recall that only 25 percent of and talent requirements persist in leaving global global mobility professionals felt their own teamsExecutive summary mobility on an island apart from strategic concerns, were seen as strategically integrated and value- when instead they could profit from integrating adding. These results highlight the need for theThe business requirements of global mobility it with other efforts. When organisations treat global mobility team itself to shift its mindset global mobility solely as an operational matter that and align more strategically to the organisation’sThe lack of integration satisfies specific technical requirements, they tend business and talent functions. The question that to over-engineer or over-specialise it, in keeping remains is whether the mobility team bears theCan global mobility start to close the gap? with that technical mindset. This relegates global responsibility of forcing its way into higher-level mobility to a functional level and leads to silo conversations, or if the business leadership bearsVisions for the future of globalmobility behaviour. As a result, it remains on the periphery the responsibility of embracing mobility more where it cannot effectively support the broader warmly, or both.Appendix business and talent agendas. Asked to name the top three challenges specificContacts to mobility (not, as discussed above, the top three overall business challenges), respondents showed manifest concern for this problem: Two of the top three answers were “actively partnering with the business to effectively use global mobility” (66 percent) and “integration with global talent management practices” (61 percent) – in other words, setting mobility apart from other talent practices and from the business strategy itself. The remaining top-three issue was regulatory compliance and controls (62 percent). 1919
  • 20 Contacts Appendix Foreword Strategic Moves 2012 Executive summary The Global Mobility Island The lack of integration Visions for the future of globalmobility Can global mobility start to close the gap? The business requirements of global mobility Actively partnering with the business to effectively use global 66% mobility Regulatory compliance and Top three issues controls (tax, immigration, payroll) 62% Integration with global talent 61% management practices Figure 7. Top global mobility challenges Improving the retention of global 56% mobility assignees post-assignment Improving the global mobility 55% experience for assignees Global leadership development 54% and pipeline Improving operational efficiency of global mobility through process 54% and technology improvements Global compensation, benefits and pensions planning and 44% management Managing and tracking global 31% mobility costs Other 1%20
  • Strategic Moves 2012The Global Mobility Island For the mobility team, this change in the mindset As Figure 4 indicated, all respondents recogniseForeword will mean ultimately re-defining the level of global mobility as a tool to support the most support it provides. Mobility leaders will have to top strategic business issues, namely emergingExecutive summary adjust and define roles, responsibilities and touch- geographical markets, increasing globalisation points between stakeholders in order to facilitate and increasing competition. However, only a smallThe business requirements of global mobility smooth interaction between all groups. In some percentage reported they were using mobility instances they will have to re-skill members of the fully to address those issues if at all. GlobalThe lack of integration global mobility team so that instead of being purely mobility is still behind the curve when it comes operational, they can provide advisory support and to driving business results. Seventy percent ofCan global mobility start to close the gap? direction to the business and talent functions and business and HR stakeholders say global mobility take an active role in strategic table discussions. in their organisation is underperforming or needsVisions for the future of globalmobility improvement, some of it significant. In considering this need for better alignment between business and mobility, it helps to This highlights the need for the business andAppendix consider three distinct categories of alignment: global mobility teams to deepen ties with business, talent, and compliance. each other. Survey responses show this mayContacts be happening now. Nearly 40 percent of Business alignment organisations say they are currently reviewing or Whatever their strategic value and ultimate are about to review their overall global mobility return, international assignments carry significant strategies, including alignment with business initial costs. Survey respondents clearly cited issues and goals. this as the main barrier to global mobility, so mobility functions should consider managing the organisation’s human capital assets like an investment portfolio. 2121
  • Strategic Moves 2012The Global Mobility Island In practical terms, alignment requires business This highlights one of the most fundamentalForeword leads or HR business partners to involve global reasons to make talent globally mobile – to help mobility at the strategy table discussions where reduce the talent demand-supply gap. For this toExecutive summary business issues are addressed, so global mobility work, organisations must learn to bring their can articulate the value assignments may bring. talent management and global mobility teamsThe business requirements of global mobility It also requires global mobility to engage regularly together and harness their combined power. with the business, directly or via HR business When asked how important the talent agenda wasThe lack of integration partners, to provide statistics and challenges for global mobility, between 71 and 90 percent of aligned to top business issues. Mobility leaders respondents from all three fields (business, globalCan global mobility start to close the gap? must also keep abreast of changing business mobility and talent) said it was critical or important drivers that may affect the way they structure [Figure 9]. These results also align with theVisions for the future of globalmobility their programmes and deliver services. feedback in the 2011 strategic moves survey that stressed the importance of talent alignment.Appendix A large global company with approximately 550 assignees conducted a review of their global mobility programme in 2009, resulting inContacts the redesign of their programme. This included outsourcing relocation activities globally and restructuring their internal team. The key benefits at the time were cost reductions and synergies as a result of vendor alignment. Three years later, the company encountered new challenges and the model in place was no longer fit for purpose. The requirements of the landscape had changed, including a two-fold increase in the assignee population an explosion in the volume and mix of assignees (including assignee monthly turnover), and movement of the home and host traffic lanes from a stable population predominantly moving between developed markets to the majority of moves to and from developing and emerging markets. Furthermore, the programme and support mechanisms were no longer able to meet the full requirements of the business or the assignee in these new locations, including greater complexity with regards to compliance, exchange controls, compensation management, and the need for more support to relocate and settle assignees and their families. There was now a clear gap between global mobility services offered and business and talent needs, and the current model posed a risk to the businesses ability to attract, retain and mobilise its key talent, which would ultimately affect business agility and productivity. In order to address the gaps and challenges, the company conducted a strategic review of their programme in order to fully understand the key sources of pain and assess the business and talent drivers. This informed the design of the new optimal global mobility service delivery model as well as the level of support most appropriate for the business and assignee. The review was also able to determine immediate stabilisation requirements which could be implemented in the short term as well as larger service delivery changes. By taking a step back and conducting a review, this company was able to adapt its model to meet the business objectives. 2222
  • Strategic Moves 2012The Global Mobility Island Talent alignment Figure 8. Proportion of current international moves basedForeword The survey clearly showed most global mobility on type of need moves are initiated in order to fill specialist skills or 0%Executive summary resource gaps [Figure 8]. 6%The business requirements of global mobility 13% This highlights one of the most fundamentalThe lack of integration reasons to make talent globally mobile – to help reduce the talent demand-supply gap. For this to work, organisations must learn to bring theirCan global mobility start to close the gap? 22% talent management and global mobility teams 59% together and harness their combined power.Visions for the future of globalmobility When asked how important the talent agenda was for global mobility, between 71 andAppendix 90 percent of respondents from all three fields (business, global mobility and talent) said it was To fill specialist skills or key resource gapsContacts critical or important [Figure 9]. These results also Placement of senior level strategic talent to take advantage of business opportunity in host location align with the feedback in the 2011 strategic To augment cross cultural or cross border experience moves survey that stressed the importance of across the organisation talent alignment. On employee’s request Other Figure 9. Importance of talent agenda as a driver for global mobility 68% 55% 49% 27% 29% 22% 22% 18% 10% Business HR Global Mobility Talent & Reward & HR Operations Critically/Very important Important Not important/Becoming more important 2323
  • Strategic Moves 2012The Global Mobility IslandForeword Spotlight: deploying different type talent? Industry variation: The technology, media, and telecommunications industry has the highest percentage ofExecutive summary international moves that fall into the category of specialist skills/key resource gap (75 percent vs. an average of 59 percent). The manufacturing industry has the highest percentage of international moves that fall into theThe business requirements of global mobility placement of senior level talent (31 percent vs. an average of 22 percent).The lack of integration Regional variation: North American organisations have more international assignments within the specialist skills/key resource gap category than organisations in Europe and rest of the world.Can global mobility start to close the gap?Visions for the future of globalmobility Yet intertwining global mobility with talent The data shows talent and reward professionals management is another opportunity many feel significant to radical improvement is neededAppendix organisations are failing to seize. in talent management practices related to global mobility as is evident Figure 10.Contacts Figure 10. State of organisations’ global mobility practices based on type of respondent 100% 80% 60% 40% 20% 0% We are world-class We are world-class We have adequate We are getting by in We are under- in global deployments in some aspects of global deployments global deployments performing in global deployments for our industry but significant global deployments but need to improve but we need improvement and radical in several key areas to improve is needed improvements are needed Business HR Global Mobility & HR Operations Talent & Reward 2424
  • Strategic Moves 2012The Global Mobility IslandForewordExecutive summaryThe business requirements of global mobility 70%The lack of integrationCan global mobility start to close the gap? 71%Visions for the future of globalmobilityAppendix Proportion of talent & reward Proportion of talent & reward professionals who consider talent professionals who consider globalContacts agenda to be important or very mobility to be underperforming important for global mobility or need radical improvements Among all respondents, there is a general The impact of global mobility will be the agreement that global mobility needs to highest if it is integrated with an organisation’s improve. Eighty-three percent of talent and talent agenda through initiatives such as global reward stakeholders, 70 percent of business workforce planning and talent demand-supply HR stakeholders, and 54 percent of global mapping, which are also the key drivers for mobility stakeholders feel global mobility in their assignments. Yet global mobility practices are respective organisations needs to improve. This is still being developed in isolation from talent despite the investments organisations are making management practices. Figure 11 gives a in their global mobility programmes. closer look at the views of talent and reward professionals. It highlights that between 63 and 74 percent of them feel significant improvement is required in the way global mobility is used to address talent programmes. 2525
  • Strategic Moves 2012The Global Mobility Island Figure 11. Rating of global mobility practices by Talent & Reward professionalsForeword 74% 66% 67% 63%Executive summaryThe business requirements of global mobility 34% 33% 35% 26%The lack of integration 0% 0% 0% 2% Global mobility is used Cross border Global experience InternationalCan global mobility start to close the gap? proactively to attract resource pools are and exposure are assignments are key external talent used when staffing required as used to develop a roles and positions prerequisite for global mindsetVisions for the future of globalmobility career progression within the organisationAppendix We are world class We are good but need to improve in a few areas Radical/significant improvement is neededContacts 2626
  • “ e have made talent mobility a WStrategic Moves 2012The Global Mobility Island priority for years, but now we have aForeword mix of programmes and initiatives andExecutive summaryThe business requirements of global mobility no long term approach for managingThe lack of integration them in a consistent, integrated, orCan global mobility start to close the gap? global manner. In short, we have a bit ofVisions for the future of globalmobilityAppendix a mess on our hands.”Contacts Chief talent officer, industry-leading global company 2727
  • Strategic Moves 2012The Global Mobility Island There are pockets of progress. Mobility and Executive & Senior Mid-levelForeword talent functions are starting to collaborate and Talent on Assignment Talent on integrate their activities to create assignments AssignmentExecutive summary that go beyond simply filling gaps in local talent pools. They are creating accelerated developmentThe business requirements of global mobility programmes for high potential talent functioningThe lack of integration in a highly competitive international environment. However, where integration is happening, the 45% 44%Can global mobility start to close the gap? efforts may be missing the mark significantly. The survey findings highlight a disproportionateVisions for the future of globalmobility proportion of senior level assignees in global moves – which means these moves do not contribute to the development of a futureAppendix leadership pipeline [Figure 12]. Entry-level assignees are the rarest, which is not surprising.Contacts Yet there are just as many executive and senior Figure 12. Proportion of assignees by level of employees level assignees (45 percent) as mid-level ones (44 percent). Organisations may wish to consider 11% 14% broadening their global mobility programmes to more junior staff in order further integrate global mobility as a truly developmental tool. With assignees like these, mobility assignments may be providing service to the business 31% functions, but they are not fostering career development. 44% Executive talent Senior talent Mid level talent Entry-level talent/graduates 2828
  • Strategic Moves 2012The Global Mobility Island Compliance alignment Regulatory compliance was third out of 10 issuesForeword Of nine strategic business issues, respondents related to global mobility in the 2012 survey – ranked “increasing regulatory pressure” fourth. compared to 2011, when it was the sixth mostExecutive summary Eighty-two percent said that it was “important” pressing issue. Interestingly, when asked to select or “very important” for global mobility to support barriers to global mobility, respondents rankedThe business requirements of global mobility the resolution of this issue. However only 9 “immigration legislation and related regulations” percent said they are currently using the complete third out of six. Global mobility functions canThe lack of integration potential of global mobility to address this benefit from establishing closer ties with their business issue. Achieving regulatory compliance HR, finance, payroll, and legal functions and withCan global mobility start to close the gap? in the context of global mobility is complex and their vendors to overcome this specific barrier to is spread over many different aspects such as increasing effectiveness.Visions for the future of globalmobility immigration, taxation, social security, and payroll. It would be imprudent for global mobility not to The way forward integrate fully with these services across borders. Global mobility is a fusion of many interrelatedAppendix disciplines such as workforce planning, Organisations that meet this challenge effectively recruitment, performance management, learning,Contacts use subject-matter experts they either employ succession planning, diversity, incentives and or retain. However, this does require continuous rewards, and compliance. In order to strengthen interaction with multiple internal teams or vendors. global mobility, all parties must have a mutual As the number of assignees and their destinations understanding about how their programmes can increase, the complexity of regulatory compliance be better supported and fully understand the will increase arithmetically. interdependencies. This will support the definition of overall mobility goals and how to deliver them. 2929
  • Can global mobility start to close the gap?Strategic Moves 2012The Global Mobility IslandForewordExecutive summaryThe business requirements of global mobilityThe lack of integrationCan global mobility start to close the gap?Visions for the future of globalmobilityAppendixContacts 3030
  • Strategic Moves 2012The Global Mobility Island Figure 13. Overall position of organisations’ global mobility practices currently MeasurementForeword 2% The majority of organisations surveyed are well aware of the current limitations of their globalExecutive summary 22% mobility programmes from a practical as well as a strategic standpoint, but they are notThe business requirements of global mobility 33% translating that awareness into improvement and change initiatives: only 2 percent see themselvesThe lack of integration as world-class [Figure 13], yet only 12 percent report that they perform clear assessment of theirCan global mobility start to close the gap? mobility practices and link those assessments to improvement efforts [Figure 15].Visions for the future of globalmobility 44% Taking a closer look at key focus areas such as talent, the overwhelming response was alsoAppendix We are world-class in global deployments negative. Of those organisations who rate talent We are world-class in some aspects of global deployments but need to improve in several key areas as critically important, the majority do not rateContacts We have adequate global deployments for our industry but we need to improve themselves as world class in the use of global We are getting by in global deployments but significant/radical improvement is needed mobility practices for talent purposes [Figure 14]. Many rate themselves only as good. Echoing the results from the 2011 survey, this indicates there Spotlight: The more the merrier? is still a large gap between where organisations The business satisfaction with an organisation’s global mobility are now and where they want to be in terms of practices increases with the number of international assignments. global mobility. This demonstrates economies of scale within global mobility practices. 3131
  • Strategic Moves 2012The Global Mobility Island Figure 14. Use of global mobility for talent management practices and maturity of these practicesForeword 63% 60%Executive summary 50% 36% 38% 32% 32%The business requirements of global mobility 29% 24% 13%The lack of integration 8% 4% 8% 4% 0% 0% 0% 0% 0% 0% International assignments Cross border resource Global experience Global mobility is usedCan global mobility start to close the gap? are used to develop a pools are used when and exposure are proactively to attract key global mindset within staffing roles and positions required as prerequisite external talent the organisation for career progressionVisions for the future of globalmobility We are world class We are good but need to improve in a few areasAppendix We are getting by but significant improvement is needed We are underperforming and radical improvement is neededContacts Not relevant to us Yet in spite of this widespread recognition of the By failing to assess and measure global mobility need to improve, the vast majority of organisations practices in a planned and regular manner, surveyed (88 percent) are undertaking only a organisations are missing the chance to fully limited assessment of their mobility practices. understand their difficulties and learn how to This is a surprising result given the amount spent overcome them. You cannot strengthen an on international assignments each year. Global ability if you won’t even measure the ways mobility and HR leaders should ask themselves: it’s deficient. Would other HR areas, such as reward, learning and development, or talent management, experience similar neglect if they were found wanting? 3232
  • Strategic Moves 2012The Global Mobility Island Figure 15. Extent of measurement of global mobility Even in the areas rated as top mobility challenges,Foreword practices such as integration with global talent management practices, the results suggest few metrics are beingExecutive summary 12% used. Compared to the 61 percent who rated the impact upon talent metrics as a top mobilityThe business requirements of global mobility 35% challenge, only 34 percent of companies are undertaking some kind of measurement of it.The lack of integration 28% Perhaps more surprising, of the “talent hawks”Can global mobility start to close the gap? who identified talent as a critically important driver for mobility within their organisations, onlyVisions for the future of globalmobility 60 percent are measuring the impact of mobility 25% on talent metrics such as employee engagement and leadership pipeline. Only a handful more thanAppendix We have clear metrics that are used to assess performance 50 percent of the “talent hawks” look at service which then leads to continuous improvement initiatives measures such as assignee satisfaction, which canContacts Metrics exist however measurement is not performed in a planned manner also affect assignee retention and performance. Assessed sporadically or in a reactive manner based on It’s true the “hawks” measure talent impact more issues and concerns brought up by the business or assignees frequently than they do any other global mobility There is no formal assessment metric, but given their stated priorities, it’s still surprising they don’t do even more [Figure 16]. 3333
  • Strategic Moves 2012The Global Mobility Island Figure 16. Measures used to assess global mobility amongst respondents who rated talent as a critically important driver forForeword global mobility 60%Executive summary 52% 52% 48%The business requirements of global mobility 32%The lack of integrationCan global mobility start to close the gap? Critically ImportantVisions for the future of globalmobility Impact on talent metrics such as employee retention, employee engagement, talent-pool/leadership pipeline etc. Impact on business results such as market share, time to market, new services/products/markets, top-line/bottom-line parameters,Appendix customer satisfaction/retention etc. Service measures such as internal customer (assignee/business) satisfaction, proportion of escalations, proportion and number of non-compliance issues, proportion of assignments cancelled due to process issues etc.Contacts Cost measures such as cost per assignment, cost of global mobility service delivery, global mobility team cost, vendor or vendor services costs etc. Operational measures such as end to end cycle times for processes and sub-processes, transaction volume handling capacity, proportion of transactions completed beyond SLA, assignee to global mobility headcount ratio etc. Cost – the most commonly cited barrier to global The deficit may arise for several reasons – ranging mobility – is measured by only 45 percent of the from a lack of understanding of the appropriate organisations surveyed, and is measured in a key performance indicators for the programmes regular, planned manner by fewer than 10 percent. based on strategic goals to more practical aspects such as access to appropriate data sources or data Overall, these results indicate survey respondents analysis capability. lack clarity in determining which metrics they should use to assess whether their programmes In terms of the range of metrics organisations are are meeting strategic objectives. This is another using, those who rate themselves more maturely symptom of the disconnect between a stated in the use of metrics are taking a more holistic desire for strong mobility programs and the failure approach and measuring across a number of to make them a reality. variables, whereas those who take a less mature, more reactive approach to metrics are more likely to measure only cost [Figure 17]. 3434
  • Strategic Moves 2012The Global Mobility Island Figure 17. Number of times different measures are used based on maturity of how such measurement is leveragedForeword 38 34 31 27Executive summary 25 19 19 17 17 15 17 13 8 10 6The business requirements of global mobility Metrics exist however measurement Assessed sporadically or in a reactive We have clear metrics that are used to is not performed in a planned manner manner based on issues and concerns assess performance which then leads toThe lack of integration brought up by the business or assignees continuous improvement initiatives Impact on business results such as market share, time to market, new services/products/markets, top-line/bottom-lineCan global mobility start to close the gap? parameters, customer satisfaction/retention etc. Impact on talent metrics such as employee retention, employee engagement, talent-pool/leadership pipeline etc.Visions for the future of globalmobility Service measures such as internal customer (assignee/business) satisfaction, proportion of escalations, proportion and number of non-compliance issues, proportion of assignments cancelled due to process issues etc. Cost measures such as cost per assignment, cost of global mobility service delivery, global mobility team cost, vendor or vendorAppendix services costs etc. Operational measures such as end to end cycle times for processes and sub-processes, transaction volume handling capacity,Contacts proportion of transactions completed beyond SLA, assignee to global mobility headcount ratio etc. This should ring alarm bells. To measure It keeps the organisation from considering why programme costs in isolation from operational, it’s using global mobility in the first place and service, talent and business outcomes makes thinking more creatively about alternative options it impossible to assess each global mobility that may achieve the same end goal. If cost is the assignment as an investment with a return. The only thing you measure, cost pressure will be the returns are harder to measure, but they are there, only factor that drives high-level decisions. and should count. Viewing mobility through this narrow aperture can create a constant pressure to reduce costs without considering the wider impact of reduced mobility services or assignment benefits – for both assignees and the business. 3535
  • Strategic Moves 2012The Global Mobility IslandForeword Spotlight: strategic measuring global mobility differently? Industry variation: Financial services organisations are most likely to use clear metrics to assess global mobilityExecutive summary practices. Life sciences, and health care organisations are the least likely to use them.The business requirements of global mobility Regional variations: North American organisations are the most likely to have no formal assessment of global mobility practices.The lack of integrationCan global mobility start to close the gap? Self improvement (Although) (Fewer than) (Only) 54% 10% 29% Given the low incidence of regular and plannedVisions for the future of globalmobility reporting that leads to continuous improvements, it’s not surprising to find many of the respondentAppendix organisations also appear not to be undertaking appropriate improvement activities. AlthoughContacts 54 percent of respondents cited improving operational efficiency as a top mobility challenge, fewer than 10 percent are using operational metrics that lead to continuous improvement, and only 29 percent are looking at operational metrics in any way at all. cited improving are using are looking at operational operational operational efficiency as metrics for metrics in a top mobility continuous anyway at all challenge improvement 3636
  • Strategic Moves 2012The Global Mobility Island Figure 18. Popularity of different type of improvement initiatives currently underwayForeword 60% 55%Executive summary 38%The business requirements of global mobility 33% 32% 32% 30% 26%The lack of integration 1%Can global mobility start to close the gap? Policy Process Mobility Training and Operating Vendors Technology Leverage Other review design/ strategy development model or review improvement sharedVisions for the future of globalmobility or redesign optimisation review of global structure services mobility staff designAppendix Where companies are undertaking improvement Once again, even the organisations that put effort activities, the main focus appears to be on policy into honing global mobility capabilities seem notContacts and process review and redesign. However, it’s to be applying their efforts where they will do the worthwhile to consider the correlation between most good. current mobility challenges and improvement activities underway. There is an appropriate That isn’t to say policy changes can’t reduce cost. correlation between policy improvement activities The more significant portion of total assignment and those organisations that have challenges costs resides within the assignment package in the areas of leadership, talent and business and tax costs, rather than operational alignment, but policy improvement is also the programme costs. most common activity for organisations that have issues with tracking and managing costs. However, companies will achieve very little if a short-term focus on cost overrides the main Conversely, activities such as process purpose of the assignment, which according to optimisation and operating model redesign, the survey results is resourcing specialist skills gaps vendor review, and use of shared services or for strategic business purposes. centres – which can help to improve programme operational efficiency and reduce operating costs – are aligned to challenges such as business alignment and leadership development. 3737
  • Strategic Moves 2012The Global Mobility IslandForeword Case Study: Over the past 18 months a UK based FMCG Company has been undertaking a transformation of its global mobility operating model in order to improve alignment between its strategic mobility goals and global mobilityExecutive summary practices. The key goal of the transformation activities is to improve the assignee experience of mobility and determine it is consistent regardless of nationality or home country, after a wide-scale assignee survey revealed issues with the clarity,The business requirements of global mobility transparency and equality of the assignment package, and the number of stakeholders and vendors involved in the end to end assignment process. Transformation activities have included the introduction of an innovative international salaryThe lack of integration structure for its executive cadre and the increasing number of ‘global nomads’ on consecutive assignments, as well as a new host based assignment policy for first time assignees. These new policies aim to make the assignment packagesCan global mobility start to close the gap? easier to understand, and create equity between assignees and with host country peers, and amongst the global leadership.Visions for the future of globalmobility To further enhance the assignee experience, the company has changed the way it delivers services to assignees. First time assignees are now handled by a dedicated global mobility service centre, whilst global leaders and globalAppendix nomads are provided with a personalised concierge service, to remove the hassle of dealing with multiple vendor contacts. These changes recognise the importance of international assignees to realising the company’s global businessContacts plans, and the need to provide them with ample company support in order that they can add value in their new role from day one. Additionally, the company has implemented a new global mobility technology system, which does not just act as a workflow tool, but also captures assignee performance data, assignment cost and payroll data. Over time, this new technology will allow them to more accurately capture total assignment costs, assess the extent of their investment in international assignments and confirm that it is being spent on the right individuals. The company has been both ambitious and creative in its endeavours to bridge the gap between the strategic goals of global mobility and the achievement of these goals in practice. Whilst it is currently too early to assess the full impact of the operational changes, they show how global mobility can transform itself to become a strategic business partner through self-assessment and usage of appropriate transformation activities. 3838
  • Strategic Moves 2012The Global Mobility Island What is the way forward? 2)  nderstand the value proposition of UForeword In order to align global mobility to business and global deployments: Take time to look at talent strategies, companies need to define what who they are sending on assignments andExecutive summary they want to achieve, make a regular assessment why and how this fits in with the individual of whether they are achieving it, analyse the gap, business units growth and talent plans. ThisThe business requirements of global mobility and make plans to close it. Based on the survey will involve the use of appropriate candidate results, it is clear the majority of organisations selection, assignment justification, andThe lack of integration that responded to the survey are not doing this. assignment approval processes. There may In summary, organisations need to: be alternatives to mobility in many casesCan global mobility start to close the gap? such as through talent acquisition and talent 1)  gree upon the strategic purpose of global A retention strategies. Likewise, assignmentVisions for the future of globalmobility mobility within their organisation and define extension, early repatriation, and assignment what great looks like to all key stakeholders. failure should be investigated to see to it that Once this has been established, the appropriate assignment costs are not being wasted.Appendix strategy can be agreed upon and improvement roadmaps developed. This may require better 3)  nhance the use of mobility data analytics. EContacts integration of various technology systems, Not only report on cost, but look at it alongside processes, polices, vendor capabilities, and other metrics. If total assignment costs go up overall use of data analytics amongst other slightly but all strategic KPIs are being met, initiatives. then the additional investment is likely to be worthwhile to the organisation. Likewise cost reductions should not be made if they will lead to missed KPIs in other areas. 3939
  • Visions for the future of global mobilityStrategic Moves 2012The Global Mobility IslandForewordExecutive summaryThe business requirements of global mobilityThe lack of integrationCan global mobility start to close the gap?Visions for the future of globalmobilityAppendixContacts 4040
  • Strategic Moves 2012The Global Mobility Island Visions for the future Most global mobility or talent leaders can pointForeword Business leaders say they want their organisations to at least one innovative service they developed to realise the demonstrated benefits of to solve a critical business challenge. Their storiesExecutive summary transforming global mobility. Yet business have a familiar theme: the work required a lot executives and HR leaders alike continue to voice of cooperation, goodwill, and effort. Talent andThe business requirements of global mobility frustration with global mobility’s ability to deliver mobility people stepped up to the challenge to value. With no shortage of talented people doing get something important done. The examplesThe lack of integration great work, what is the problem? All signs point are hard to replicate because they required huge to the need to rethink how organisations deliver commitments of time and energy. Similarly, manyCan global mobility start to close the gap? global mobility with the intent of supporting the organisations have gone through internally led business and talent strategy. global mobility transformation programmes. ByVisions for the future of globalmobility design, these programmes come to an end point The business wants more – not less – from at which the transformation of current mobility global mobility services (or the development of new mobilityAppendix Most business leaders today fully understand the services) stops. There is rarely a structure in place value of people. They can clearly articulate their to sustain the cycle of continuous performanceContacts top people priorities by either role or geography improvement. These two scenarios illustrate a and are more than willing to invest to get what fundamental dilemma. they need. At the same time, HR leaders know they have to deliver what the business needs On one hand, most business leaders understand and wants. As a result, when business and HR the value of deploying people across borders, and leaders sit down to work together with mobility they are willing to invest in these moves more and talent, they are often met with a focus on than ever before to meet their business objectives. the “now and how” and less on what needs Yet on the other hand, they are not prepared to to be done over the next three to five years. take advantage of this opportunity by making Predictably, business leaders want better, faster, ahead-of-the-curve investments in their current and more compliant mobility services at a lower talent mobility frameworks, strategy, roles, and cost. They want a mobility and talent function processes without the comfort that they will solve that can be flexible and nimble to support their their longer term skill supply-and-demand talent ever-changing business strategies and solve their gaps. Business and HR leaders understand this global workforce skill supply and demand gaps dilemma and want a solution to this problem. both today and in the future. Unfortunately, many organisations continue to struggle to meet these objectives. 4141
  • Strategic Moves 2012The Global Mobility Island Looking ahead the strategic management of an organisation’sForeword The solutions to this problem lie in the fact that global supply and demand of skills and talent. many organisations struggle to understand This will require the creation of new capabilitiesExecutive summary the way today’s mobility business partners and (figure 19) within global mobility to drive global centres of expertise should interact with their workforce planning improvements across theThe business requirements of global mobility mobility operation and talent teams to contribute entire organisation. to such business challenges. In particular, theThe lack of integration way that both mobility and talent functions are Figure 20 shows how global mobility’s capability structured and positioned can be a fundamental requirements are a function of two parameters:Can global mobility start to close the gap? challenge to achieving true business alignment. firstly, the functional maturity of the organisation Organisations understand the value in bringing in terms of the adoption and investment in GlobalVisions for the future of globalmobility together mobility business partners and centres MIS technology to provide HR transactional of expertise with mobility operations and talent delivery, and the ability to report on key employee teams to operate like a business-focused internal metrics. Secondly, against an organisationsAppendix global mobility consultancy on specific projects strategic talent investment. That is to say an and initiatives. In this model, mobility business organisation’s ambition and ability to investContacts partners and centres of expertise form the vertical ahead of the talent demand curve to grow the ”go-to-market” account management teams, with required supply of talent to fuel business growth the mobility and talent operations forming the in their priority markets. When both these horizontal specialist teams. requirements are high, organisations should supplement their target capabilities of both New capabilities required global mobility management and global mobility This model highlights the longer term challenge business partnering with that of global workforce that global mobility is still missing one key management. element in its scope of services: an overlaying ability to develop strategic initiatives (or Conversely, organisations that either do not yet ‘propositions’) in alignment with specific business have the functional maturity of a supporting HR priorities. These propositions respond to critical infrastructure or the ambition to invest ahead of long-term strategic organisational capabilities the talent demand curve will need to either invest such as M&A activity, change acceleration, culture in such capabilities or face the reality that their change, talent gaps, and growth. Given the future business growth in their priority markets business challenges leading global organisations will be constrained by their lack of ability to face this new area of strategic focus should be source, recruit, or deploy the required talent to in the area of global workforce management – such markets. 4242
  • Strategic Moves 2012The Global Mobility IslandForeword Figure 19. Global workforce management capabilitiesExecutive summary We believe that by developing such capabilities in global workforce management it will expand the scope of global mobility to include the following:The business requirements of global mobility Capabilities ScopeThe lack of integrationCan global mobility start to close the gap? 1 New markets • Rapid expansion 2 Workforce efficiency • Workforce analytics • Design, development, and  implementation of new Global workforce management services • Talent acquisition • CultureVisions for the future of globalmobility • Development and implementation of  • Global mobility • Scheduling business-focused Workforce metricsAppendix • Development • Delivering reliable workforce data  with corresponding workforceContacts reporting and analytics • Project management, including  3 M&A • Onboarding 4 MIS & Technology • HR technology building capabilities for Mobility and talent to manage projects, such as Six Sigma in HR • Integration • Talent technology • Development and implementation  of an integrated mobility and talent •  rganisational O •  lobal mobility G technology strategy to support design technology the business workforce planning •  hange C objectives management 4343
  • Strategic Moves 2012The Global Mobility Island Figure 20. Global mobility target capability requirementsForeword HighExecutive summaryThe business requirements of global mobilityThe lack of integrationCan global mobility start to close the gap? Global workforce management capabilitiesVisions for the future of globalmobilityAppendix Organisation’s ambitionsContacts and ability to Global Mobility invest ahead Business partnering of the global talent demand curve Global mobility operations Low Basic HR Talent and Mobility Functional Maturity Advanced (People, processs, technology, governance, vendors)44 44
  • Strategic Moves 2012The Global Mobility Island Developing global workforce management This will also require investment both in widerForeword capabilities functional capabilities such as global standard In terms of developing the capabilities required reporting and HR technologies, together with theExecutive summary to manage global workforces we believe that ambition to invest ahead of the talent demand broadly speaking this will require fusing together curve to create the required supply of talent.The business requirements of global mobility the disciplines, of talent, mobility, workforce planning and HR technology to solve the critical What does this mean for global mobility andThe lack of integration business issues (such as growth, M&A, new talent as a whole? market entry) relating to global skill supply/ The skills make the difference. For mobilityCan global mobility start to close the gap? demand talent gaps. and talent to ever be considered true strategic business partners, they require additionalVisions for the future of globalmobility What does this mean for mobility teams, capabilities delivered through focused global mobility business partners, and centres of workforce management skills. This would expertise? allow them to operate at senior levels of theAppendix Alignment to business challenges. If global organisation to orchestrate solutions designed mobility is ever to truly meet the objectives of the to solve organisational global talent skill supply-Contacts business, it needs to move away from traditional, and-demand priorities. To achieve this, it is critical functionally aligned roles to business-aligned roles that the organisation recognise global workforce that can support the projects and programmes management as a business critical capability. that the business is focused on. With alignment Only when the global mobility can initiate a on solutions for business challenges like global strategic conversation with business leaders, workforce management, the mobility teams armed with potential global workforce and centres of expertise can finally close the management solutions to solve their most gap and align with the business by solving their pressing talent supply-and-demand gaps, will he critical business issues. This does not mean the or she and global mobility as a whole be thought end of traditional mobility teams and centres of of as a strategic player. expertise, but it does require organisations to rethink the way they provide support for both functional and business focused objectives and supplement these functions and roles with new global workforce management capabilities. 4545
  • “ hey always say time changes things, TStrategic Moves 2012The Global Mobility Island but you actually have to changeForeword them yourself.”Executive summary Andy WarholThe business requirements of global mobilityThe lack of integrationCan global mobility start to close the gap?Visions for the future of globalmobilityAppendixContacts 4646
  • Strategic Moves 2012The Global Mobility Island What will it take to create global workforce Vesting this responsibility in newly minted globalForeword management capabilities? workforce management capabilities is a big Get the basics in place first. Global workforce change that will neither permit nor reward anExecutive summary management cannot be fully functional, or incremental approach. You cannot phase global credible, without the provision of reliable HR mobility into this role over time. You cannot pilotThe business requirements of global mobility transactional delivery and underlying foundations it. These new capability requirements will require such as standardised reporting, technology, and a depth of conviction from CHROs who knowThe lack of integration policies. they are not yet delivering the services that the business needs. But the effort is worthwhile.Can global mobility start to close the gap? Prepare the line manager. Facilitate the mindset change of the line manager, who may not be Positioned appropriately, global workforceVisions for the future of globalmobility initially willing or ready to team with a newly management can be the key to solving an defined mobility and talent role. organisation’s long-term skill supply-and-demand talent gaps. There is tangible value to be realised,Appendix Be clear about the capabilities. Clearly describe but it will likely take a departure from the current the types of business outcomes global workforce model and a strong vision of the future in orderContacts management should focus on delivering. for organisations to truly align mobility and talent with their wider business and talent strategies. Match the person to the role. Focus on the skills and experience it takes to be credible and trusted as a global workforce manager. Focus on the business requirement. Keep the desired business outcome visible as you go. It takes time: Focus on quick wins first, but don’t bite off too much too soon. 4747
  • AppendixStrategic Moves 2012The Global Mobility IslandForewordExecutive summaryThe business requirements of global mobilityThe lack of integrationCan global mobility start to close the gap?Visions for the future of globalmobilityAppendixContacts 4848
  • Strategic Moves 2012The Global Mobility Island About the survey Participants were requested to classify their rolesForeword Survey Demographic Information into the provided categories. These were then The Strategic Moves survey was conducted by subsequently grouped into three different roleExecutive summary Deloitte in the UK in collaboration with Deloitte types. These roles are global mobility and HR member firms worldwide. Data was collected in operations (50 percent), business HR (25 percent),The business requirements of global mobility the form of an online survey as well as various and talent and reward (25 percent). follow-up interviews. Most of the data wasThe lack of integration collected between May to September 2012. A broad variety of industries are represented, with a large representation in manufacturingCan global mobility start to close the gap? The focus of the survey in 2012 was to (22 percent), financial services (19 percent), and understand how organisations are integrating technology, media, and telecommunicationsVisions for the future of globalmobility their talent mobility practices with their (18 percent). wider business and talent strategies. The target audience for the survey was senior HR More than a quarter of the organisations surveyedAppendix professionals – heads of HR, talent, reward/C&B have annual turnover of more than US$10 billion. or mobility and senior HR business partners. Similarly more than a quarter of the organisationsContacts have more than 500 international assignees. The research included 195 participants worldwide. Participants represent all major regions across the world with Europe (44%) and North America (35%) as main contributors whilst the remaining has been grouped into one group termed as ‘rest of the world’ (21%). 4949
  • More than a quarter of theStrategic Moves 2012The Global Mobility Island organisations surveyed have annualForeword turnover of more than US$10 billion.Executive summaryThe business requirements of global mobility Similarly more than a quarterThe lack of integration of the organisations have moreCan global mobility start to close the gap? than 500 international assignees.Visions for the future of globalmobilityAppendixContacts 5050
  • Strategic Moves 2012The Global Mobility Island Comparison with the 2011 Strategic Moves The other important factor is that theForeword survey participating organisations from the 2012 survey The number of participants has increased from are larger. They therefore have higher revenueExecutive summary 141 to 195, mainly due to an increase in the and more international assignments. number of respondents from Europe and NorthThe business requirements of global mobility America. As a proportion, the group ‘rest of the world’ is less represented compared to the 2011The lack of integration Strategic Moves survey (46% in 2011 vs. 21% in 2012).Can global mobility start to close the gap? Figure 21. Proportion of participating organisations by region Figure 22. Proportion of respondents by their roleVisions for the future of globalmobilityAppendix 21% 25% 26%Contacts 44% 35% 49% Europe North America Rest of World Business HR Global Mobility & HR Operations Talent & Reward 5151
  • Strategic Moves 2012The Global Mobility Island Figure 23. Proportion of participating organisations by type of industry Figure 24. Proportion of participating organisations by their revenueForeword 5% 7% 5% 15% 4%Executive summary 5% 18% 8%The business requirements of global mobility 13% 37%The lack of integration 21%Can global mobility start to close the gap? 22% 19%Visions for the future of globalmobility 8% 13%Appendix Consumer Business & Transportation Energy & Resources Less than $125m $125m to $250m $250m to $500m Financial Services Life Science & Health Care $500m to $1bn $1bn to $5bn $5bn to $10bn Manufacturing Technology, Media & Telecomms More than $10bn Not sure/prefer not to sayContacts Others Figure 25. Proportion of participating organisations by employee population Figure 26. Proportion of participating organisations by number of international assignees 3% 1% 13% 18% 16% 8% 33% 15% 16% 47% 15% 15% 500 or less 501 – 1,000 1,001 – 5,000 Less than 50 50-100 101-200 5,001 – 10,000 10,001 – 100,000 More than 100,000 201-500 501-1000 Over 1000 5252
  • ContactsStrategic Moves 2012The Global Mobility Island Authors of the reportForeword Robert Hodkinson William Gosling Andrew Robb Siobhan Cummins +44 20 7007 1832 +44 20 7007 8132 +44 20 7303 3237 +44 20 7007 2285Executive summary rhodkinson@deloitte.co.uk wgosling@deloitte.co.uk anrobb@deloitte.co.uk scummins@deloitte.co.ukThe business requirements of global mobility Jonathan Pearce +1 212 436 3268 jrpearce@deloitte.comThe lack of integrationCan global mobility start to close the gap? Global Employer Services Leaders Europe, Middle EastVisions for the future of globalmobility Global Americas Asia Pacific & Africa Nichola Holt Lou Mitas Bruce Stewart Tom DeclercqAppendix +1 212 436 2288 +1 212 436 2602 +1 214 840 7586 +32 2 600 68 51 nicholt@deloitte.com lomitas@deloitte.com brustewart@deloitte.com tdeclercq@deloitte.beContacts Human Capital Leaders Europe, Middle East Global Americas Asia Pacific & Africa Brett Walsh Jaime Valenzuela Richard Kleinert Ardie Van Berkel +44 20 7007 2985 +56 27298016 +20 35632523 +31 882881834 bcwalsh@deloitte.co.uk jvalenzuela@deloitte.com rakleinert@deloitte.co.nz avanberkel@deloitte.nl 5353
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