2012 Human Capital Conference23–26 October                          Contrast and compare: the                          Gl ...
Disclaimer►   Ernst & Young refers to the global organization of member firms of    Ernst Y    E t & Young Global Li it d ...
Presenters►   Kevin Cornelius    ►    Ernst & Young Ltd, Switzerland    ►    kevin.cornelius@ch.ey.comPage 3              ...
Survey methodology►   Comprehensively capturing the         p            y p     g    current state of global mobility: it...
Ernst & Young 2012 Global MobilityEffectiveness Survey reportIndustry sector-specific reportsMedia releaseAvailable todayP...
A common message from global mobilityprofessionals everywhere  “Operational workload keeps mobility functions away  from s...
Our global mobility effectivness surveysPage 7      Contrast and compare: the Global Mobility Effectiveness Survey
2008 Global Mobility Effectiveness SurveyFirst edition►   Recognition of need for improvement in:        g                ...
2009 Global Mobility Effectiveness SurveyCost and control►   Repatriation key issue: 5% of assignees have left their      ...
2010 Global Mobility Effectiveness SurveyLessons from change                 g►   A new global economic p           g     ...
2011 Global Mobility Effectiveness SurveyCompeting for g   p    g     growth►   Economic turbulence, natural disasters, up...
2012 Global Mobility Effectiveness SurveyDriving business success      g►   Global Mobility today:                  y     ...
Strategy and operations disconnect►   Key issues:      y    ►     Understaffing    ►     Evolving regulations    ►     Tal...
Growing beyond themes                                                            Global mobility is                       ...
Strategy, operations, growth, talent
Global mobility strategy Increasing number of global mobility assignments                Short-term                       ...
Global mobility strategy Global mobility is about today; talent management is about tomorrow. tomorrow ► Top priorities fo...
Global mobility strategyMissing long-term link between global mobility and globaltalent management► Whatlink between globa...
Strategy, operations, growth, talent
Operations Internal barriers are cited as No. 1 cause of inefficiency.                     5%                8%           ...
Operations Sixty-eight percent of companies do not have a formal payroll tax and social security compliance risk control f...
Operations Sixty-five percent of surveyed companies do not have a tracking t ki process for cross-border b i              ...
Strategy, operations, growth, talent
Growth markets countries Inbound assignments in growth markets versus other have increased 48% from 2011 and will increase...
“Assignments premised solely on reward                                                     have higher risk of failure    ...
Growth markets countries   Main issues in growth market countries  Brazil Russia   India  China  Africa             Compli...
Growth market countries Managerial and strategic goals are the top drivers for moves i all growth market countries       i...
Strategy, operations, growth, talent
Talent managementOnly half of companies have a global talent managementagenda.     d►    Distinct differences between comp...
Talent management Ninety-two percent of companies say they do not use social media t communicate with th i assignee t l t ...
Review Global mobility                          y                       Analyze     Assess risks                          ...
Five focus areas for global mobility to drivebusiness success Alignment     Evaluate your    Dynamic                      ...
At the end of the day, it is about getting:►   the right p          g person►   at the right time►   in the right place►  ...
QuestionsPage 34     Contrast and compare: the Global Mobility Effectiveness Survey
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EY Human Capital Conference 2012: Contrast and compare - the Global Mobility Effectiveness Survey

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Highlights of Ernst & Young's Global Mobility Effectiveness Survey from 2007 to 2012, how global mobility impacts strategy, operations, talent management and growth markets, and the five focus areas for global mobility to drive business success.

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EY Human Capital Conference 2012: Contrast and compare - the Global Mobility Effectiveness Survey

  1. 1. 2012 Human Capital Conference23–26 October Contrast and compare: the Gl b l Mobility Effectiveness Global M bilit Eff ti Survey
  2. 2. Disclaimer► Ernst & Young refers to the global organization of member firms of Ernst Y E t & Young Global Li it d each of which i a separate l Gl b l Limited, h f hi h is t legal entity. l tit Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US.► This Thi presentation i © 2012 E t & Y t ti is Ernst Young LLP All rights reserved. N LLP. i ht d 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, photocopying transmission recording rekeying or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or d st but o o t s o o a y o t e ate a e e s p o b ted and s distribution of this form or any of the material herein is prohibited a d is in violation of US 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.Page 2 Contrast and compare: the Global Mobility Effectiveness Survey
  3. 3. Presenters► Kevin Cornelius ► Ernst & Young Ltd, Switzerland ► kevin.cornelius@ch.ey.comPage 3 Contrast and compare: the Global Mobility Effectiveness Survey
  4. 4. Survey methodology► Comprehensively capturing the p y p g current state of global mobility: its operational effectiveness and issues it is facing► February to May 2012► 520 multinational companies surveyed► Six case studies► Ernst & Young analysis and commentaryPage 4 Contrast and compare: the Global Mobility Effectiveness Survey
  5. 5. Ernst & Young 2012 Global MobilityEffectiveness Survey reportIndustry sector-specific reportsMedia releaseAvailable todayPage 5 Contrast and compare: the Global Mobility Effectiveness Survey
  6. 6. A common message from global mobilityprofessionals everywhere “Operational workload keeps mobility functions away from strategic thinking ” thinking.” — Chris Debner, Human Capital Executive Director, Ernst & Young Ltd “Many companies will wait until they have a major compliance failure.” — Jay Sternberg, Global Leader for Short-Term Business Visitor Solutions, Ernst & Young LLP“Senior leaders require us to be more closely aligned withworkforce planning, talent management and p g, gorganizational development.” — Craig McEvoy, Head of Global Mobility for Brazil-based Vale “Business should understand the importance of “B i h ld d t d th i t f international experience.” — Janelle Parkinson, Head of Global Mobility, Recognition & Benefits, Group RewardPage 6 Contrast and compare: the Global Mobility Effectiveness Survey
  7. 7. Our global mobility effectivness surveysPage 7 Contrast and compare: the Global Mobility Effectiveness Survey
  8. 8. 2008 Global Mobility Effectiveness SurveyFirst edition► Recognition of need for improvement in: g p ► Automation of administrative tasks ► Development and enhancement of global mobility functions ► Processes ► Risk management ► Prevention of early repatriation and talent loss ► Shift to strategic issues and goals to be a stronger business partnerPage 8 Contrast and compare: the Global Mobility Effectiveness Survey
  9. 9. 2009 Global Mobility Effectiveness SurveyCost and control► Repatriation key issue: 5% of assignees have left their p y % g company within two years after repatriation.► 61% of international human resources (IHR) teams are ( ) not involved in the assignee selection process.► 28% differentiate between strategic and developmental policies.► Only 20% of companies know their true cost.► 81% of companies say they are planning cost reduction.► There are three key areas of focus for managing cost: ► Global mobility processes ► Localizations ► PoliciesPage 9 Contrast and compare: the Global Mobility Effectiveness Survey
  10. 10. 2010 Global Mobility Effectiveness SurveyLessons from change g► A new global economic p g picture has emerged. g► IHR teams have increased involvement in assignees selection.► More than half of companies are reviewing their Global mobility policies within next six months.► 54% of companies report a bigger focus on risk.► 77% of companies are looking for cost savings, but only 9% were able to accurately access cost.► Only 57% actually reduced cost (of these, 74% achieved less than 10% cost savings).Page 10 Contrast and compare: the Global Mobility Effectiveness Survey
  11. 11. 2011 Global Mobility Effectiveness SurveyCompeting for g p g growth► Economic turbulence, natural disasters, uprisings and conflicts affect growth. fli t ff t th► Long- and short-term assignments are increasing.► The i Th size of IHR t f teams i i is increasing, b t not yet sufficient. i but t t ffi i t► 60% of companies have reviewed their policies in the last 12 months months.► There has been a significant increase of assignees into growth markets over last three years: India 80% Africa 80%, 75%, Brazil 71%, Russia 43%, China 23%.► 83% of inbound assignees are strategic resources inbound.► Outbound assignees have significantly increased. g g yPage 11 Contrast and compare: the Global Mobility Effectiveness Survey
  12. 12. 2012 Global Mobility Effectiveness SurveyDriving business success g► Global Mobility today: y y ► On the rise ► Focused on growth markets ► Business critical ► Evolving ► HQ centralizedPage 12 Contrast and compare: the Global Mobility Effectiveness Survey
  13. 13. Strategy and operations disconnect► Key issues: y ► Understaffing ► Evolving regulations ► Talent management agenda ► Compliance frameworks ► Early repatriations ► Future leadersPage 13 Contrast and compare: the Global Mobility Effectiveness Survey
  14. 14. Growing beyond themes Global mobility is increasingly a key Talent management feature in driving and global mobility are business success working along parallel lines► Directing talent and new investments to growth markets Globalization Global mobility► Changing business strategies has had a Strategy Mobility strategy► Evolving global mobility strategies dramatic effect on business Operations must better align► Focus on operational models Talent with business strategy effectiveness Growth markets Global mobility is Expansion in not yet achieving y g emerging markets is g g its full operational on the rise, but it is potential creating compliance challengesPage 14 Contrast and compare: the Global Mobility Effectiveness Survey
  15. 15. Strategy, operations, growth, talent
  16. 16. Global mobility strategy Increasing number of global mobility assignments Short-term Long-term 400 1,500 1 500 350 1,400 1 400 300 1,300 1 300 2012 2013 2014 2012 2013 2014Page 16 Contrast and compare: the Global Mobility Effectiveness Survey
  17. 17. Global mobility strategy Global mobility is about today; talent management is about tomorrow. tomorrow ► Top priorities for global mobility: ► Business needs for the current year ► Successfully moving the assignee ► Create an international talent pool for future leaders pPage 17 Contrast and compare: the Global Mobility Effectiveness Survey
  18. 18. Global mobility strategyMissing long-term link between global mobility and globaltalent management► Whatlink between global mobility and talent Talent► The is the link between Global Mobility and management: g Management? ► Assignees selected case by case ► Assignments designed to form future leaders ► Immediate business needs, no long-term planningPage 18 Contrast and compare: the Global Mobility Effectiveness Survey
  19. 19. Strategy, operations, growth, talent
  20. 20. Operations Internal barriers are cited as No. 1 cause of inefficiency. 5% 8% 35% External barriers 16% Business (late decision taking) Assignees (negotiations) Resources (understaffed Internal IHR) barriers Internal communication 36%Page 20 Contrast and compare: the Global Mobility Effectiveness Survey
  21. 21. Operations Sixty-eight percent of companies do not have a formal payroll tax and social security compliance risk control framework. ► CCompanies are f i focusing their i i h i immediate operational di i l needs on: ► Processes ► Policy ► Communication ► Tax compliancePage 21 Contrast and compare: the Global Mobility Effectiveness Survey
  22. 22. Operations Sixty-five percent of surveyed companies do not have a tracking t ki process for cross-border b i f b d business t travelers. l ► Companies state their main compliance risks as: ► Income tax reporting and withholding ► Short-term business travelers ► Immigration ► Social security reporting and withholdingPage 22 Contrast and compare: the Global Mobility Effectiveness Survey
  23. 23. Strategy, operations, growth, talent
  24. 24. Growth markets countries Inbound assignments in growth markets versus other have increased 48% from 2011 and will increase 60% in two to three years. y 113% 120% 131% 120% 135% Africa 150% China 133% 167% India 175% 113% Russia 2011 Brazil B il 2012 2015Page 24 Contrast and compare: the Global Mobility Effectiveness Survey
  25. 25. “Assignments premised solely on reward have higher risk of failure ” — Ray Harraway, Ernst & Young (Pty) Ltd, Partner, Human Capital, South AfricaPage 25 Contrast and compare: the Global Mobility Effectiveness Survey
  26. 26. Growth markets countries Main issues in growth market countries Brazil Russia India China Africa Compliance Security Compensation Housing SchoolingPage 26 Contrast and compare: the Global Mobility Effectiveness Survey
  27. 27. Growth market countries Managerial and strategic goals are the top drivers for moves i all growth market countries in ll th k t ti 36% 23% Brazil 39% 3% 35% Russia 23% 39% 4% 36% India 23% 37% 4% 35% Project-based work 24% China 39% 2% Developmental 38% 23% Strategic/managerial Africa 35% 30% OtherPage 27 Contrast and compare: the Global Mobility Effectiveness Survey
  28. 28. Strategy, operations, growth, talent
  29. 29. Talent managementOnly half of companies have a global talent managementagenda. d► Distinct differences between companies headquartered in: Europe 59% Africa 50% North America 48% Asia-Pacific 41% South America 13%Page 29 Contrast and compare: the Global Mobility Effectiveness Survey
  30. 30. Talent management Ninety-two percent of companies say they do not use social media t communicate with th i assignee t l t i l di to i t ith their i talent.Page 30 Contrast and compare: the Global Mobility Effectiveness Survey
  31. 31. Review Global mobility y Analyze Assess risks Involve Integrate Talent managementPage 31 Contrast and compare: the Global Mobility Effectiveness Survey
  32. 32. Five focus areas for global mobility to drivebusiness success Alignment Evaluate your Dynamic Integrate Build robust of global true operational management talent and global mobility to effectiveness of growth management compliance business market and global frameworks strategy opportunities mobilityPage 32 Contrast and compare: the Global Mobility Effectiveness Survey
  33. 33. At the end of the day, it is about getting:► the right p g person► at the right time► in the right place► for the right cost.Page 33 Contrast and compare: the Global Mobility Effectiveness Survey
  34. 34. QuestionsPage 34 Contrast and compare: the Global Mobility Effectiveness Survey

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