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EY Human Capital Conference 2012: Building a global mobility policy from the ground up
 

EY Human Capital Conference 2012: Building a global mobility policy from the ground up

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This presentation outlines the steps needed to build a global mobility policy; the components of effective policy building; the constituents of global mobility policies and their role in building ...

This presentation outlines the steps needed to build a global mobility policy; the components of effective policy building; the constituents of global mobility policies and their role in building those policies; and illustrates GlaxoSmithKline’s (GSK) approach to crafting their policies.

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    EY Human Capital Conference 2012: Building a global mobility policy from the ground up EY Human Capital Conference 2012: Building a global mobility policy from the ground up Presentation Transcript

    • 2012 Human Capital Conference23–26 October Building a mobility policy f th b tt from the bottom up
    • Disclaimer► Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US.► This presentation is © 2012 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or LLP reproduction distribution of this form or any of the material herein is prohibited and is in violation of U.S. and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party.► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP LLP.Page 2 Building a mobility policy from the bottom up
    • Presenters► Maureen Potts ► Jane Malecki ► GlaxoSmithKline ► Ernst & Young LLP ► maureen.f.potts@gsk.com ► jane.malecki@ey.comPage 3 Building a mobility policy from the bottom up
    • Session overview► Understand the steps needed to build a g p global mobility y policy.► Identify the components of effective p y p policy building. y g► Discuss the constituents of global mobility policies and their role in building those policies.► Learn from the experience of GlaxoSmithKline’s (GSK) approach to crafting their policies.Page 4 Building a mobility policy from the bottom up
    • Introduction to global mobility policiesHow do global mobilityprograms evolve? International ►30+ international employees assignee ►Dedicated numbers International HR department ►10-30 international ►Multi-tier policies employees ►Outsourcing ►Some e pertise expertise ►5-10 international ►Policy in place employees ►Little expertise ►Policy being y g considered ►First few international employees ►No international HR expertise ►No policy International HR expertisePage 5 Building a mobility policy from the bottom up
    • Approach to policy advisory – review Is the policy aligned with business/HR strategy and future expansion plans? Policy review Strategic alignment: ► ► Is the policy aligned with global mobility strategy? criteria it i ► ► Is the policy aligned with corporate culture? Is the policy aligned with the talent management process? Policy alignment: ► Is the policy aligned with other (group) mobility policies?The cost-effectiveness Compliance: p ► Does the policy p p y promote tax compliance? p ► Does the policy promote social security and pension compliance?criteria includes detailed ► Does the policy promote immigration compliance?benchmarking results ► Does the policy promote labor law compliance?against major competitors Cost effectiveness: ► Are benefits and allowances aligned with leading practice?for l b l talent.f global t l t ► Are the benefits and allowances paid in a tax-effective way? ► Is the company protected against excessive claims/losses? ► Is policy administration effort optimized? Completeness ► Are all leading practice items covered? and consistency: ► Separation of items: policy vs. assignment l tt S ti f it li i t letters vs. l local b l benefit b h fit brochure, etc. ► Are all items covered consistently in terms of level of detail? Attractiveness ► Is the policy attractive to the assignee and family? to the assignee: Structure and ► Is the policy built upon a logical structure following assignment process? wording: ► Are potential misunderstandings in wording minimized? ► Is the wording and layout user-friendly — easy to read and understand for assignees? ► Are additional administration guidelines clear and user-friendly for those administering the p y g policy? Page 6 Building a mobility policy from the bottom up
    • GSK’s journey► Centralized – present: ► Global mobility► Decentralized: ► Domestic relocation: ► US ► UK► Cross-border – future: ► Assignments ► Local plus ► International permanent relocation ► Localizations ► Foreign direct hires ► Global domestic relocation► End-to-end process: ► Ensures compliance and governance ► One point of contactPage 7 Building a mobility policy from the bottom up
    • GSK – Global Mobility Program► Global assignee p p g population: 500 Assignment types Top 10 assignment locations Long-term 194 United Kingdom Short-term 73 United States GA Zero 62 Singapore GA Lite 20 Belgium Commuter 78 China Graduate 54 France BTTCTL 18 Ireland PULSE 1 Malaysia Argentina Hungary and South Africa are tied► Total number of assignment locations: 51Page 8 Building a mobility policy from the bottom up
    • Cross-border policy proposal► Proposed creation of g g p p geographically based function with y individual roles with the following responsibilities: ► Provide first-level counsel to Human Resource Business Leaders (HRBLs), line managers others regarding key considerations on the type of cross-border alternatives (i.e., Global Assignee (GA), localization, Local Plus) ► Own the “end-to-end” process and coordinate each sub-process owner’s activity within geography (i.e., ensuring joiner activities occur, occur such as IT and induction) ► For cross-geography activity, serve as the “lead” or “secondary” coordinator as appropriate ► Manage all Comms cell or other tracking/escalating activities ► Directly complete required relocation and destination services tasksPage 9 Building a mobility policy from the bottom up
    • Stakeholders► Identify stakeholders: y ► Not just the heads of the business ► Understand who your transactional partners are ► Make sure HR is engaged► Understand business drivers► Obtain commitment at the top► Ensure communication goes in all directionsPage 10 Building a mobility policy from the bottom up
    • Structure► Reward Center of Excellence (CoE) ( )► Centralized global mobility centers► Three regional centers: ► UK ► US ► Singapore► Host-based: ► Advisors responsible for all businesses within a country ► Creates country expertsPage 11 Building a mobility policy from the bottom up
    • Reward CoE HR business leaders HR business leaders Expert E t Business aligned HR sh Specialist Reward business consultants leaders hared servic cellence Expert global Global comp. Business measures/program p g services operations ces/employe services ntres of Exc excellence Long Term Incentive (LTI) Regional programs operations Executive and services Global projectCen ee compensation Global mobility implementation programs and services Global process delivery/analysis s Benefits Compensation systems Global support ExternalPage 12 Building a mobility policy from the bottom up
    • Support infrastructure► Global HRIS► Payrolls► Talent► Benefits► Outsourced partners ► Tax (including social security) ► Data ► Immigration ► Relocation ► Finance FiPage 13 Building a mobility policy from the bottom up
    • Global Mobility CentreResponsible for p g p programs and services in the Americas Director, Global Mobility Programs M bilit P and Services AMERICAS Global Mobility Global Mobility Global Mobility Advisor Administrator Advisor AMERICAS AMERICAS Technology US US USPage 14 Building a mobility policy from the bottom up
    • Global Mobility CentreResponsible for p g p programs and services into EMEA/APAC Director, Global Mobility Programs and Services EMEA/APAC Global Mobility Global Mobility Global Mobility Global Mobility Global Mobility Global Mobility Advisor Advisor Advisor Advisor Administrator Advisor EMEA/APAC UK UK UK UK Singapore Si UKPage 15 Building a mobility policy from the bottom up
    • One global end-to-end process is possible Total Destination Leavers reward services sub- actions ti process Joiners Ongoing Relocation HR admin. sub- services activity process Foundation: governance (tax, immigration, data protection, etc.) (tax immigration protection etc ) Global As assignees Host Yes Yes Yes needed No Localizing New Yes As As As Former employees home needed needed needed home Foreign direct Yes Yes As As As No hires needed needed needed International New Yes As As As Former transfers home needed needed needed homePage 16 Building a mobility policy from the bottom up
    • Tools► Myriad of worldwide p y y payrolls/Human Resource Information System (HRIS) systems: ► PeopleSoft ► SAP ► WorkDay► Assignment management System: A i t tS t ► Assignment Pro: ► Demographics ► Workflows ► Interface► Compensation accumulationPage 17 Building a mobility policy from the bottom up
    • Culture► Self-service: ► Globally► Assignment administration: g ► Somewhere in between: ► Disruption of: ► Personal life ► Work life ► Family life ► Success lies i the d il S li in h detailsPage 18 Building a mobility policy from the bottom up
    • Compliance► Partner with outsourced providers: p ► Tax ► Immigration ► Data ► Relocation► Ensure continuity E ti it► Insure governance► Consider U S F i C C id U.S. Foreign Corrupt P ti t Practices A t Act► Consider UK Bribery ActPage 19 Building a mobility policy from the bottom up
    • Cost-effectiveness► Benchmark of benefits and allowances► Tax impact► Risk management► Administrative impactPage 20 Building a mobility policy from the bottom up
    • Attractiveness to the assignee► Adequate benefits to neutralize cost impact q p► Incentives to offset any potential career disruption► Assistance for dual career families dual-careerPage 21 Building a mobility policy from the bottom up
    • Completeness and consistency► Leading p g practices considered► Industry practices evaluated► Easy to understand► Integration with local policies and benefitsPage 22 Building a mobility policy from the bottom up
    • Structure and wording► Logical flow of written documents g► Adequate examples to illustrate mechanics► Attractive layoutPage 23 Building a mobility policy from the bottom up
    • Driving continuous improvement – areas offocus and heat mapThe operating model consists of a set of seven key components over which there are choices that can be made indesigning global mobility activity ownership. ► Deliver effective and efficient processes in the right location ► Set up a global framework for ► Currently under review by client policies to support global governance ► Use benchmarks to ► Currently under review by client promote continuous improvement of serviceExecution layer levels ► Structure the Organization to Policy Process Performance ► Currently under review by Measurement client deliver valuable service to the business ► Define appropriate local local,Organization regional, global structures,layer shared service centers / Organization outsourcing ► Area of challenge for client ► Define a system architecture operation and tools to enable valuable activitiesResource layer Data People Technology ► Global technology deployed in 2011 ► Define a set of consistent global data standards and common fields of information ► Select the right people resources with the right skills in the right location ► No pressing issues noted by client ► Survey feedback expressed concerns surrounding HR representatives Initial focus typically begins on the organization layer and the process component within the execution layer layer.Page 24 Building a mobility policy from the bottom up
    • QuestionsPage 25 Building a mobility policy from the bottom up