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EY Human Capital Conference 2012: A beginners guide to global mobility


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How do you manage employee mobility? This presentation looks at the considerations for employers and employees including risk management, quality and effectiveness, compliance, coordination and communication. It considers relocation, HR aspects, tax, labor law, social security and immigration.

Published in: Business

EY Human Capital Conference 2012: A beginners guide to global mobility

  1. 1. 2012 Human Capital conference23-26 October A beginner’s guide to global bilit mobility
  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 A beginner’s guide to global mobility
  3. 3. Presenters► Pieter Cross ► Thomas Efkemann ► Bayer AG ► Ernst & Young GmbH ► ► thomas.efkemann@de.ey.comPage 3 A beginner’s guide to global mobility
  4. 4. At the beginning of an assignment you maythink about these questions. questions Is my employee allowed How do I consider my y to work abroad? employee for merit increases, bonuses? What happens if my Can I make the decisions employee gets sick about the benefits? Who can? during the assignment? i t? How to track all payments? p y Can my employee work abroad 40 Which service providers exist to hours? support the move?Page 4 A beginner’s guide to global mobility
  5. 5. Your employees may think about thesequestions What happens with What kind of job my investment funds Do l D I lose my will I d after th ill do ft the at home? pension assignment? entitlements? What happens if I lose my job? What happens if my family Are my goods insured gets sick while being during shipment? g p abroad? Do I have to take all my furniture and goods with Will the school certificate of me? my children be accredited in my home country? Can we take our What happens with our pets with us? second income? Can my partner work abroad?Page 5 A beginner’s guide to global mobility
  6. 6. The answers to the questions are in thepieces of the puzzle Relocation HR aspects Tax Labor Social Immigration Law securityPage 6 A beginner’s guide to global mobility
  7. 7. How do you manage mobility?► There are lots of options and the key is finding a model p y g that works for your organization► The focus should always be on compliance: y p ► Tax (primarily corporate tax then personal tax and social security) ► Immigration ► Corporate compliance (across numerous issues): ► Various policies need to be considered ► Vendor selections ► Appropriate sign-offs ► Security matters ► Legal matters L l tt► Then service deliveryPage 7 A beginner’s guide to global mobility
  8. 8. Managing expatsOne size fits … none► Need to reflect on: ► Number of expats ► Company structure ► Primary objective of the assignments ► Skill sets available to manage expats/ full time employees available ► Resources available ► Payroll capabilities ► Previous/existing expat populations ► Future corporate development ► Management expectations M t t ti ► Many other issues► All this before you even think of what type of policyPage 8 A beginner’s guide to global mobility
  9. 9. Policy or policies► You need to choose the right solution for y g your organization: ► Does your organization define all HR activities in policies and frameworks? ► If you have an occasional expat you may not need a policy ► Regular transfers will need at least a framework ► As mobility becomes part and parcel of the business, mobility policies become essential ► An organization with strong talent management should have a policy as an integral piece in the talent management tool box► Do you need a single policy or multiple policies? ► How long is a piece of string?Page 9 A beginner’s guide to global mobility
  10. 10. Amount of policies drive by multiple factors► Regional or g g global p policies► Long-term and short-term policies► Project assignments► Developmental assignments► Junior staff or senior executives► R&R policy► Tax policy► Localization policy► Local-to-local policy► At the end of the day it has to be your policy or policiesPage 10 A beginner’s guide to global mobility
  11. 11. What approach should you take?Two major schools of thought j g► Home-based approach with tax equalization: ► Most common approach by far ► Endeavors to keep an expat “whole” by keeping the home annual base salary with a set of deductions and additions to ensure a similar standard of living in any host country ► Company assumes responsibility for all tax compliance► Host-based approach: ► Still popular and even making a come back perhaps ► Looks t h t th host L k at what the h t would pay f a l ld for local, th compares thi t l then this to the home country net income and endeavors to match/better the net through a collection of incentives to the inbound ► The expat is responsible for all tax liabilities► Best of both is a model that is out there, but it is complexPage 11 A beginner’s guide to global mobility
  12. 12. How do you administer your mobilityprogram?► In HR or not► Under talent management or compensation and benefits► Centrally or regionally► In-house or outsource — all or some of the activities► Use shared services or not► Excel, Human Resources Information System (HRIS) or technology solution gy► What kind of staff do you need? ► Whoever you can find ► Tax people ► Experienced expats or their spousesPage 12 A beginner’s guide to global mobility
  13. 13. How does Bayer do it?► Clearly defined p y philosophy behind mobility p y y► Textbook Dave Ulrich model: ► Human Resource Business Partners (HRBPs) ( ) ► Experts ► Shared services► Leverage HRIS to support the model and the service delivery (quality data is key)► Strong support from the top: St tf th t ► CEO values mobility ► Head of HR is passionate about mobility► Established policies and infrastructure all in placePage 13 A beginner’s guide to global mobility
  14. 14. The Philosophy provides the direction –Rationale of international assignmentsAs an attractive employer Bayer offers opportunities for international careers. employer, careers• Development: Through international assignments it enables employees to gain experience and develop their potential to prepare them for possible career advancement in the future – often pre- requisite when developing towards Senior Management positions.• Project: Bayer transfers employees between countries to provide locally needed specialist knowledge/ expertise (e.g. in project management, global/ regional functions)• Job: Bayer makes use of international assignments to fill governance positions (e.g. SBR, F&A Heads, Regional CDH functions). To achieve these goals it is important g p  To define the criteria and select the right employees for such assignments  tot take care of sufficient tracking and future career development  to provide attractive conditions and professional support and  to further develop employees after such assignments in their Home countries Page 14
  15. 15. Bayer Expat CommunityNorth America Europe Europe / MiddleEast 258 Inbounds, Germany Main countries: 186 Inbounds, Switzerland, France Main countries: USA, China Eastern Europe Asia Pacific APAC 365 Inbounds,Americas / Africa Main countries: 334 Inbounds Inbounds, China, SingaporeMain countries: USA, Mexico Latin America, L ti A i Africa, Middl E t Af i Middle East Page 15
  16. 16. Expat Overview – Country View Inbound View Outbound View Expat PopulationChina 215 Germany 705 Overall Result 1.183Germany 186 USA 84USA 186 France 45Switzerland 65 China 38Singapore 60 Brazil 29France 48 Spain 23Mexico 40 India 19Brazil 34 Argentina 17Belgium 28 Great Britain G t B it i 17Japan 19 Switzerland 17Hong Kong 15 Belgium 16Australia 14 Japan 14Russia 14 Colombia 12India 14 Australia 12Page 16
  17. 17. The International Mobility Organization HR//direct Home Center of International Manager Expertise E ti Mobility Team HR Business Global Relo Partners Vendor Global Local Host Regional Mobility Country C t Experts Manager ExpatriatePage 17
  18. 18. Center of Expertise (CoE) • Global Process Owner of Mobility • Global Policy Development / Maintenance Center of Expertise E i • Benchmarks, Trends • Escalation contact for HR//direct in exception management • Implements Executive Board Initiatives relating to Expatriates g p• Supports country organizations in their responsibilities in development / maintenance of Country Profiles• Maintains strong mobility Network and Community with regular meetings and communications• Monitors liaisons with Third Party Vendors Page 18
  19. 19. HR//direct Mobility TeamSingle point of contact with regard to• Initiation process (global basis) HR//direct• Salary calculation (approval) process for Initiation Mobility Team and on assignment• Global Relo Vendor (Initiation and exception mgmt) • HR//direct Mobility acts as a coordinator between the sending country and the receiving country Coordinates process between countries • Mobility calculates compensation packages involved Calculates • HR//direct Mobility coordinates approvals for the compensation compensation details with involved management in packages home and host country Global Relo Vendor • Mobility acts as a single point of contact for exception mgmt the initiation of G f Global Relo Vendor and requests f for exceptions Page 19
  20. 20. HR Business Partners & Home Manager /Host Manager• Selection of suitable employees • professional competence, previous achievements, potential engagement and aspiration, readiness to adapt to different living conditions• Tracking and future career development. g p • pro-active career planning process prior to the assignment, specific personal development objectives agreed between Home / Host Manager & employee, support regular meetings (minimum annually) to take place with the Home / Host Manager Important to guide Expat th I t tt id E t throughout duration of assignment h t d ti f i tHome Manager & Home HR  Career aspects of employee • Maintenance of ExecuTrack and Potential Lists • Create visibility within POCs HR B i Business Home • Promotion • Merit Review Partners Manager • Merit communication • Definition and Planning upon repatriationHost Manager & Host HR  Assignment aspects of employee Global Local Host • Local HR processes (payroll, vacation, one-time payments) Regional Mobility • PMP Country Contacts Manager • STI communication Page 20
  21. 21. Global Relo VendorGl b l R l V d Global Relo Vendor coordinates all relocation activities executed by Global Relo various service provider being Vendor Single Point of Contact (SPoC) for the Expatriate• Transfer organization• Housing, registration, schooling, temporary housing GRV• Visa, work permit (application, extension)• Household goods move, storage• Transfer related trainings (language cultural) (language,• Payment of related allowances according to Global Directive• Expense reimbursement according to Global Directive• Exception h dli i relocation matters E ti handling in l ti ttPage 21
  22. 22. QuestionsPage 22 A beginner’s guide to global mobility