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Strategic Moves 2012                                                               The Global Mobility Island             ...
ForewordStrategic Moves 2012The Global Mobility IslandForeword                                               Welcome to ou...
Executive summaryStrategic Moves 2012The Global Mobility Island                                               Global mobil...
Strategic Moves 2012The Global Mobility Island                                                                It is as if ...
Strategic Moves 2012The Global Mobility Island                                               Taking a closer look at this ...
Strategic Moves 2012The Global Mobility Island                                                                   2)  nders...
Strategic Moves 2012The Global Mobility Island                                               If global mobility is ever to...
Strategic Moves 2012The Global Mobility Island                                               The business requirements of ...
Strategic Moves 2012The Global Mobility Island                                               The challenge for global mobi...
Strategic Moves 2012The Global Mobility Island                                               Figure 1. Emerging Country an...
Strategic Moves 2012The Global Mobility Island                                               No lack of awareness         ...
Strategic Moves 2012The Global Mobility Island                                               Figure 4. How important is it...
Strategic Moves 2012The Global Mobility Island                                               Clearly, the surveyed organis...
Strategic Moves 2012The Global Mobility IslandForeword                                          Spotlight: global mobility...
“t is essential to our Firm’s growth                                                IStrategic Moves 2012The Global Mobili...
Strategic Moves 2012The Global Mobility Island                                               The importance – and challeng...
Strategic Moves 2012The Global Mobility Island                                               Clearly, global businesses ne...
Strategic Moves 2012The Global Mobility IslandForeword                                       Case in point: the global evo...
The lack of integrationStrategic Moves 2012The Global Mobility IslandForewordExecutive summaryThe business requirements of...
Strategic Moves 2012The Global Mobility Island                                               The survey shows that organis...
20                                   Contacts                                              Appendix                       ...
Strategic Moves 2012The Global Mobility Island                                               For the mobility team, this c...
Strategic Moves 2012The Global Mobility Island                                               In practical terms, alignment...
Strategic Moves 2012The Global Mobility Island                                               Talent alignment             ...
Strategic Moves 2012The Global Mobility IslandForeword                                          Spotlight: deploying diffe...
Strategic Moves 2012The Global Mobility IslandForewordExecutive summaryThe business requirements of global mobility       ...
Strategic Moves 2012The Global Mobility Island                                               Figure 11. Rating of global m...
“ e have made talent mobility a                                                WStrategic Moves 2012The Global Mobility Is...
Strategic Moves 2012The Global Mobility Island                                               There are pockets of progress...
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The Global Mobility Island

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The 2012 survey reports provides insights into the current and future state requirements of Global Mobility. As the report clearly states, the direction for global mobility is clear- businesses expect strategic value from the investment they are making in global talent and for this reason Global Mobility will have to enhance its capabilities.

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Transcript of " The Global Mobility Island"

  1. 1. Strategic Moves 2012 The Global Mobility Island GO A global survey on today’s workforce mobility challenges1
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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 MA 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. “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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. “ 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
  29. 29. 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
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