A look at the trends affecting employee mobility from a global perspective, in Asia-Pacific, the Americas and Europe.

1. 2012 Human Capital Conference
23–26 October
Policy trends around
th world
the ld

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Page 2 Policy trends around the world

3. Presenters
► Chris Debner ► Raffaela Donnelly
y
► Ernst & Young Ltd. ► Ernst & Young LLP
► chris.debner@ch.ey.com ► raffaela.donnelly@ey.com
Page 3 Policy trends around the world

4. Agenda – policy trends around the world
► Global trends:
► Shortening of review cycles/linking talent management to global mobility
► Increase in localizations/Generation Y/flexibility and alignment
► Asia-Pacific:
► Increase in the Asia-Pacific outbound assignments
► A shift toward global policies versus Asia Pacific/country specific policies
Asia-Pacific/country-specific
► Focus on the improvement of mobility function
► Americas:
► Balancing between business and individual needs
► Increase in focus on tax and immigration compliance
► Renewed focus by the U.S. Department of Justice (DOJ) on the Foreign Corrupt Practices Act
(FCPA)
► Europe:
► Increase in strategic outbound assignments into emerging markets
► Tracking of exceptions and total costs
► Using
U i mobility policies t support th overall sustainability strategy
bilit li i to t the ll t i bilit t t
Page 4 Policy trends around the world

5. Global trends
► Shortening of review cycles
► Linking mobility to talent management
► Increasing localization of ultra long term expatriates
long-term
► Aligning policies with the expectations of Generation Y
► Ongoing attempts to make mobility programs more
flexible and to align them with business needs
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6. Alignment leads to flexibility
Results
Business needs • • •
Efficient processes
facilitating rapid
Labor dynamics • • • deployment
Strategy
Competition • • •
Improved financial
results and cost
transparency
Emerging markets
g g • • •
Globally
Process mobile Structure
Economic environment • • • workforce Risk minimization/
protecting
the brand
Legislative developments • • •
Policy Alternative mobility
Regulatory scrutiny • • • models to promote
flexibility and
y
agility
Public perception • • •
Page 6 Policy trends around the world

7. Trends in Asia-Pacific
► Increase in the Asia-Pacific outbound assignments:
Asia Pacific
► Increase in the number of Chinese nationals inbound assignees
from multinationals globally
► A shift toward global policies:
► Move away from Asia-Pacific/country-specific policies
► Focus on the improvement of mobility f
F h i f bili function:
i
► Lack of global mobility for professional talent
Page 7 Policy trends around the world

8. Trends in Americas
► Balancing between business and individual needs:
► Aligning policy terms with workforce deployment strategy
► Cost effectiveness analysis of policies; introduction of flex programs
► Nontraditional assignments such as commuters extended business
commuters,
travelers and rotators due to dual career families and assignees juggling
children and elderly parents
► Increased foc s on compliance – dialing for dollars
focus dollars:
► Tightening up of language around tax and immigration requirements
and consequences for noncompliance
► Renewed focus by the DOJ on the Foreign Corrupt Practices
Act (FCPA):
► Review of code of conduct with references to FCPA and the
UK Bribery Act
Page 8 Policy trends around the world

9. Trends in Europe
► Increase in strategic outbound assignments into emerging
markets:
► Companies are looking for new markets to sustain growth
► Tracking of exceptions and total costs:
► Introduction of new reporting processes and tools
► Using mobility policies to support sustainability strategy:
► Promoting globally consistent assignment conditions, international
development,
development career opportunities and diversity management
Page 9 Policy trends around the world

10. Split of policies – introduction
Full localization/ Local plus policies: Assignment light Assignment policies:
Host based
Host-based policies: p
policies:
► Developmental long- ► Strategic long-term
► Employee-initiated ► Developmental long-
term and short-term and short-term
permanent transfers term and short-term
assignments assignments
► Cross-border ► Knowledge sharing
► Company-initiated ► Commuters (e g
(e.g.,
commuters ► Routine/ technical project driven)
permanent transfers
► Weekly commuters assignments
► Foreign local hires ► Rotators (hardship
► Localizations locations)
Only compliance-related Flexible light assignment/transfer benefits Traditional/rich
benefits assignment benefits
Host country base: Home country base:
► Host salary structure ► Home salary structure, cost of living adjusted
► Host taxation ► Tax equalized to home country
► Host payroll
p y ► Often split p y
p payroll
Developmental Strategic
Low cost High cost
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11. Case study 1
Split into four business cases
p
► Home-based assignments:
g
► Home based salary
► Cost of living allowance/per diems
► Tax equalization
► Home social security and pension, if possible
Business case/
Short-term
Short term Develop-
Develop
package Technical Strategic
projects mental
defined benefits
Core Home-based assignments
benefits
Page 11 Policy trends around the world

12. Case study 2
Split into eight business cases
p g
Employee
Commuter Short-term Long-term
driven
Assignment platform Transfer platform
Home country approach
H t h Host
H t country approach
t h
Assignment platform Transfer platform
p
► Home country approach ► Host country approach
► Tax equalization ► Host taxation
► H
Home social security and
i l it d ► Host or home social security
pension, if possible and pension
Page 12 Policy trends around the world

13. Case study 3
Country combination defined assignment packages – maxing out host-based approaches
From/To DE/FR DE/NL FR/DE FR/NL NL/DE NL/FR
Criteria
C it i
Immigration
Base salary
Income tax
Social security tax
Company pension
plan
Social security
benefits
Hardship
Cost of living
Final localization
option
Localization/local package
Local plus
Localization not possible/home-based assignment policy applies
Page 13 Policy trends around the world

14. Case study 4
Policy configurator – future of policies
y g p
► Chose policy elements step by step
p y p y p
► Exemplary set-up:
► Home/host approach
pp
► Compliance package
► Family package
► Hardship package
► Upgrade package – Silver
► Upgrade package – Gold
► Cost calculation by the side
► Clear selection/eligibility criteria at each level
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15. Questions
Page 15 Policy trends around the world