international mobility strategy & policy segmentation at l’oreal · 2017-03-07 ·...
TRANSCRIPT
INTERNATIONAL MOBILITY STRATEGY & POLICY SEGMENTATION AT L’OREAL MANAGING A HOST BASED COMPENSATION APPROACH EEPF, MARCH 2017
AGENDA
2
1 INTERNATIONAL MOBILITY STRATEGY
2 KEY FIGURES
3 POLICY SEGMENTATION 4 EXPATRIATE COMPENSATION
VISION & STRATEGY 1
NEW INTERNATIONAL MOBILITY VISION 2013
4
Experts
Group Universalisation strategy
Expertise
Performance
Selective international assignments
Development of regional/local talents
Future leaders
REASONS FOR AN INTL ASSIGNMENT
5
Experts
Culture, values, ethical principes Potential
Performance
Add value
Motivation
Expertise
Young talents Hub Talents
Experts Future leaders
L’OREAL KEY FIGURES 2
INT’L MOBILITY KEY FIGURES DECEMBER 2016
GENDER SPLIT
INT’L MOBILITY KEY FIGURES DECEMBER 2016
POLICY SEGMENTATION 3
OLD SEGMENTATION
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World Pass > 7 years of experience
Explorer Pass < 7 years of experience
Local Int’l Specific request
Based on seniority (+/- 7 years of experience)
+
Short Term
Nordics
Asia N.America
+ Regional segmentation
Hubs + intra-zone moves
Euro
A NEW PHILOSOPHY Greater fairness between Expatriates / Local employees
Align with level of responsibility and career progression
Reinforce our Rewards Culture Provide competitive packages
New policy segmentation Based on level of
responsibility Closer link to Host market
WHY?
HOW?
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NEW POLICY SEGMENTATION
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Manager 1
Group Executive
Top Executive
Senior Executive
Manager 2
Team Leader
Individual Contributor
Professional P
IC
TL
M1
M2
SE
TE
GE
MOBILITY PASS 1
Job Mapping of future position in the Host Country
Job Mapping determined by Rewards Manager
MOBILITY PASS 2
MOBILITY PASS 3
OLD vs NEW SEGMENTATION
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Mobility Pass 1 Top Executives
Mobility Pass 2 Middle Management
Mobility Pass 3 Juniors
Local Int’l Specific request
+
Based on position (Job Mapping Level in Host Country)
NEW (Oct 2014)
Short Term
World Pass > 7 years of experience
Explorer Pass < 7 years of experience
Local Int’l Specific request
Based on seniority and region
(+/- 7 years of experience)
+
Short Term
Region Hubs + intra-zone moves
TYPES OF INTERNATIONAL MOVE
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LOCAL CONTRACT INTERNATIONAL CONTRACT(Expatriates)
Long term long term (> 9 mths) long term (> 9 mths) short term (3 -9 mths)
compensation
SHORT TERM ASSIGNMENT POLICY
social coverage
assignment benefits
compensation
LONG TERM ASSIGNMENT POLICIES
social coverage
assignment benefits
compensation
LOCAL INTERNATIONAL POLICY
(for personal reasons only)
optional assignment benefits
social coverage
compensation
LOCAL MOVE
relocation assistance (optional)
employee decision L’Oréal decision L’Oréal decision employee decision
EXPATRIATE COMPENSATION 4
PACKAGE CALCULATION
16
2 APPROACHES
BASE COUNTRY
Net calculation
BASE COUNTRY
APPROACH
HOST COUNTRY
APPROACH
Gross calculation
WHICH APPROACH FOR WHICH POLICY?
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HOST COUNTRY APPROACH
Gross calculation
BASE COUNTRY APPROACH
Net calculation
Local Int’l Specific request
Mobility Pass 1 Top executives
Mobility Pass 2 / Better offer Middle Management
Mobility Pass 3 Juniors
Short Term
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NEW POLICY : KEY CHANGES
All compensation guaranteed & managed gross
Gross bonus target % set in line with Host Country practices 1
Expat premiums isolated from base salary (e.g. hardship premium, French WPS compensation)
Fixed for length of mission Paid gross once a year Same exchange rate protection for all policies 40% of gross base salary 100% of gross bonus 100% of gross premiums
No change for Short Term and Local International
01 02 03
IN PRACTICE: MOBILITY PASS 1
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4
BASE COUNTRY
Net salary
Gross reference salary
COLA
TOTAL NET SALARY
BASE COUNTRY APPROACH
Net calculation
HOST COUNTRY Gross Guaranteed Assignment Salary
Social + income taxes
Gross / net bonus target %
Grossed-up Premiums
Premiums
P IC TL M1 M2 SE TE GE
IN PRACTICE: MOBILITY PASS 3
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HOST COUNTRY Gross market salary
NET SALARY
Host bonus target %
TOTAL NET CASH
HOST COUNTRY APPROACH
Gross calculation
P IC TL M1 M2 SE TE GE
IN PRACTICE: MOBILITY PASS 2
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4
P IC TL M1 M2 SE TE GE
HOST COUNTRY Gross market salary
TOTAL NET SALARY
BASE COUNTRY
Net salary
Base Gross reference salary
COLA
TOTAL NET SALARY
Host bonus target % Host bonus target %
Premiums
TOTAL NET CASH TOTAL NET CASH best offer
retained
BASE COUNTRY APPROACH
Net calculation
HOST COUNTRY APPROACH
Gross calculation
Grossed up
Grossed up
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TO SUM-UP…
Strong link to
REWARDS
FAIRNESS between Expats / Locals
guaranteed & managed gross
Aligned with local rewards practices where possible
COMPENSATION
CONCLUSION 4
WHAT RESULTS 2 YRS LATER?
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Complicated package construction process
Increased dependency on host country
Increasingly complex cases
Need to simplify processes despite an oral corporate culture
Clear policy segmentation
Rewards culture
Competitive packages
Easier management of expatriate compensation
THANK YOU