This presentation examines the most frequently addressed issues for international assignees and looks at local marks of confidence and how to break through barriers in Germany, Russia and China.

1. 2012 Human Capital Conference
23–26 October
Intercultural awareness
The key to successful international cooperation

2. Disclaimer
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► The views expressed by panelists in this session are not necessarily
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Page 2 Intercultural awareness

3. Agenda
► Introduction
► Increasing importance of global mobility in growth markets
► Intercultural awareness: the key to successful
international cooperation
i t ti l ti
Page 3 Intercultural awareness

4. Presenters
► Ulrike Hasbargen
g ► Dr. Fritz Audebert
► Ernst & Young GmbH ► ICUnet.AG
► ulrike.hasbargen@de.ey.com ► fritz.audebert@icunet.ag
Page 4 Intercultural awareness

5. Ernst & Young Global Mobility Effectiveness
Survey 2011
► Global mobility professionals from 350 companies responded to the
survey.
► 45% of the respondents were from companies headquartered in
Europe,
Europe 34% in North America, 14% in Asia Pacific, 5% in South
America Pacific
America and 2% in Africa.
► The participating companies come from a wide range of industry
sectors with energy, chemicals and utilities (
(including mining) ( %)
) (21%);
financial and professional services (20%); retail and consumer
products (12%); and technology (12%) most strongly represented.
► In keeping with previous years, the majority of survey respondents
(54%) represent multinational organizations with more than 20,000
employees.
employees
► The Ernst & Young Global Mobility Effectiveness Survey 2012
will be launched during this conference and confirms the trends.
Page 5 Intercultural awareness

6. What are the most frequently addressed
issues for international assignees?
80%
Findings: 60%
►I
In 2011, f il and
2011 family- d 49% 47%
spouse-related issues
were reported by 49% 40% 36%
of respondents to be 32%
the
th most frequently
tf tl
addressed issue for
international 20%
14%
assignees. 9%
0%
Family-/spouse- Compensation Repatriation Location/cultural Others Position-related
related issues package issues issues (e.g.,
unsatisfactory
position)
For the first time in the last four years, family- and spouse-related issues have overtaken
compensation as the No 1 issue addressed by international assignees
No. assignees.
Page 6 Intercultural awareness

7. Which of the following phases of the international process
is the most important from your experience?
Findings:
Findings
► The importance of the
selection process has
increased from 24% 3%
7%
in 2010 to 44% in
2011.
Selection of the assignees
► Respondents have
22%
reduced recognition of 44%
Preparation (
P ti (pre-departure)
d t )
the importance of the
Assignment
repatriation and post-
repatriation phase, Repatriation
down from 16%
24% Post-repatriation
respondents 7% in
2010.
There has been a shift in views regarding the most important phase of the international
assignment process which is now seen to be the selection of assignees.
process, assignees
Page 7 Intercultural awareness

8. Are there changes in the number of assignees deployed into
growth market countries in comparison to other locations?
Findings: Over the last 12 Expected in next
► 61% of companies
months
th 2-3
2 3 years
reported that they had 4% 3%
seen an increase in
the number of 29%
assignees deployed 35%
into growth market
countries over
the last 12 months
► A further 68% of 61% 68%
companies reported
that they expect to
see an increase in the
number of assignees No change
deployed into growth Yes, we expect to see an increase
markets in the next Yes, we expect to see a decrease
tow to three years.
years
Assignments touching the growth market locations of Brazil, Russia, India, China and
Africa are increasing as companies try to compete in these rapidly growing economies
increasing, economies.
Page 8 Intercultural awareness

9. Growth in the number of inbound assignees into each of
the following growth market countries
90%
80%
80%
75% Brazil
70% 71%
Findings:
Russia
► India is the fastest 60%
growing market for India
inbound assignees, 50%
with an 80% projected 43% China
40%
increase between
2010 and 2014. 30%
Africa
► Africa shows 75% 23%
20%
growth in the same
period, and B il
i d d Brazil
10%
shows 71% growth.
0%
March 2010 March 2011 Projected 2014
India is the fastest growing market for inbound assignees, followed by Africa.
Page 9 Intercultural awareness

10. What are the number of historical and projected inbound
assignees into each of the following growth markets?
30
28
Findings: 27 27
► In 2011, China had the 25
highest number of 22
inbound assignees
i b d i
20
with an average of 18 18
March 2010
27 assignees per 16
company. 15 13
12
► Africa has the highest 10 10 March 2011
projected number of 10
8 8
inbound assignees 7 7
for 2014 with an
5
average of 28 Projected 2014
assignees per
company. 0
Brazil Russia India China Africa
China currently has the highest number of inbound assignees per company; however,
Africa is expected to overtake within the next three years to become the top growth
market destination for inbound assignees.
Page 10 Intercultural awareness

11. Assignment drivers inbound into growth
markets
markets*
*Multiple answers possible
Findings:
100% 93%
► 83% of companies
report that 83%
79%
assignments into 80%
70%
growth markets are
h k
most often for 60%
strategic/managerial
purposes.
40%
► Other survey findings 30%
showed that 21%
companies were 20% 17%
mainly sending 7%
senior employees
0%
on long-term Strategic/managerial Project based
Project-based Developmental Other
assignments into
growth markets. Most common drivers Least common drivers
A clear trend may be observed toward companies investing significant senior talent in
strategically driven assignments in order to compete in rapidly rising economies
economies.
Page 11 Intercultural awareness

12. How many historical and projected outbound assignees
are from each of the following growth market countries?
40
Findings:
Findings
35
34
32
► In 2011, India has the 30
highest number of 30
outbound assignees 25
with an average of 32
assignees per 20
company. 15
10
► I di
Indiacontinues t
ti to 10
9
7
have the highest 5 5 6 5 5 6 6
5 3 4
projected number of
outbound assignees 0
for
f 2014 with an
ith Brazil Russia China
C Africa
f India
average of 34
assignees per
March 2010 March 2011 Projected 2014
company.
India has significantly higher numbers of outbound assignees than other growth market
locations.
locations
Page 12 Intercultural awareness

13. Assignment drivers outbound from growth
markets
markets*
Findings: *Multiple answers possible
100%
►A i
Assignment
t drivers f
di for
assignments outbound
from growth markets 80% 75%
are most commonly 69% 68% 67%
strategic/managerial
t t i / i l
60%
(69%), project-based
(68%) and
developmental (67%).
40%
33%
► Outbound 31% 32%
assignments from 25%
growth markets more 20%
frequently involve
q y
junior assignees
acquiring 0%
experiences and Strategic/managerial Project based
Project-based Developmental Other
skills to bring back
g Most common drivers Least common drivers
to their countries.
In comparison to assignments inbound into growth markets, outbound assignments are
more often driven by developmental reasons.
reasons
Page 13 Intercultural awareness

14. 2012 Human Capital conference
23-26 October
Breaking the barriers
Cultural specifics in international development of
trust
Dr. Fritz Audebert
ICUnet.AG
Seite 1

15. One crucial challenge for expatriates and their families
work life balance
long working hours,
quality time for family life
much trouble shooting
Darling, how can you
make sure to have
more dinners together
with us?
Page 2

16. Expatriates and spouses –
Why do their time budgets not match ?
available leisure time (typical case)
Start of international End of international
assignment assignment
spouse
assignee
Assignee New projects, new teams consolidation Preparation of return
or next assignment
Spouse Arrangements of (too) much time Start of activities: Preparation of return
private life professional, charity, or next assignment
local communities
Page 3

17. H ow can expatriates prevent their stress stage?
Risk: poor work – life balance
high performance expectations
trouble shooting
change management
culture shock
strong need for family time
Good news:
Expatriates can save time and energy if they develop trust.
For the development of trust, professionalism is crucial.
It must be coupled with openness to host expectations and
curiousity to the personal environments of local stakeholders.
Page 4

18. Criteria for trust are diverse – at different destinations
St Petersburg,
Russia
Munich,
Germany
Guangzhou,
China
Page 5

19. Breaking barriers –
selected trust criteria for incoming expatriates
personal conversations
St. Petersburg event oriented
schedules long-term cooperation
checklists Munich
speed latest technology
separation business vs private
perfect preparation
Guangzhou ambition
attentive to signals care
Page 6

20. Can we identify one single most important mark of
confidence? It depends where you are.
Patterns of trust building which make expatriates more successful…
one selected trust driver – the local
business value mark of confidence
„ sacrifice“ of
Germany efficiency
private time
invitations to
Russia friendship
„ special“ spaces
„ exceptional“
China ambition
favours
…makes the expatriate more successful
…speed up problem solving
…save time and energy
…allow for a better work-life balance – on the long run.
Page 7

21. Thank you very much for your attention!
Dr. Fritz Audebert
fritz.audebert@ icunet.ag
ICUnet.AG
www.icunet.ag
11 offices | 140 employees | 24 business awards | 25 languages
Berlin | Bremen | Cologne | Frankfurt | Fürth | H amburg | Leipzig | Passau | Shanghai | Stuttgart | Vienna

22. Questions
Page 15 Intercultural awareness