mobility 2020 global mobility transformation

MOBILITY 2020GLOBAL MOBILITY TRANSFORMATION11 March 2013

Ed HannibalPartner

MERCER 2April 22, 2023

Today’s Agenda

World Economic Forum and MercerTalent Mobility Research Findings

Impact of Mobility

Governance

Global Mobility Trends


Mobility The Historic View


Global Mobility is in the Midst of MORE Change than EVER …

• People are connected– Over 900,000,000 Facebook members– Over 175,000,000 LinkedIn members in over 200 countries/territories

• There are over 5.6 billion cell phones worldwide (80% of population of 7,040,000,000 as of September 2012)

• Average of 190,100 passengers arriving and departing daily from Heathrow– 69.4 million passengers in 2011

• According to the UK Border Agency, each year over 100 million people arrive at the UK border and 3.5 million apply to visit, live, work and study there.


Where are clients sourcing talent? Current demand for expatriates

* From internal Mercer data requests

New Home-Country Expatriate Moves


Where are employers sourcing talent? Top 15 host locations

1) Shanghai2) Singapore3) Hong Kong

5) London

7) Tokyo8) Paris

15) Brussels

4) Bangkok

6) Beijing

9) Seoul10) Dubai11) Jakarta12) Taipei13) São Paulo14) Kuala Lumpur

WORLD ECONOMIC FORUM AND MERCERTALENT MOBILITY RESEARCH FINDINGS


World Economic Forum (WEF) collaboration Human capital risk, employability and mobility were critical issues at the WEF’s 2012 annual meeting in Davos

“The world is moving from capitalism to

talentism”

~Klaus Schwab, Founder & Executive Chairman of World Economic Forum


World Economic Forum collaboration Why this issue? Why NOW?

Talent Employers

There is a clearmismatch between

What’sIN DEMAND

and

What’sAVAILABLEin the global talent pool

Talent & Skills Gap

13.3 million unemployed in US

205 million unemployed

globally

3.3 millionjob vacancies in US

Globally 34%of employers can’t fill available jobs

Source: U.S. Department of Labor – Bureau of Labor Statistics; 2011 Gallup Employment Survey; Manpower Group’s 2011 Talent Shortage Survey


3M Western Europe47 European Ministers of Higher

EducationABB LtdAbbott LaboratoriesAdecco GroupAmerican AirlinesAtlas CorpsBritish Columbia Hydro & Power

AuthorityChub Group of Insurance CompaniesCiscoCOM DEV InternationalEducation for EmploymentEmma L. Bowen FoundationEuropean Commission, Department

of Employment, Social Affairs & Inclusion

Federal Migration Service (Russia)General Electric Company

George Washington University German Trade Union for Building,

Forestry and the Environment, Polish Trade Union of Agricultural Workers

GLOBIS CorporationGouvernement du QuebecGovernment of TaiwanHCL Technologies LtdICT Association of JordonInfosys LtdINSEADInternational Labour OrganizationINTTRAJA WorldwideJapan International Cooperation

AgencyLVMH Moet Hennessy – Louis VuittonManpowerGroupMarriott International Inc.Marsh Inc.

MercerNational Skill Development

CorporationOliver WymanOrganisation for Economic Co-

operation and DevelopmentPhilippines GovernmentPolish Confederation of Private

Employers LewiatanPwCStandard CharteredTaylor BennettThe Boston Consulting GroupThe United Nations Development

ProgrammeUnited Kingdom Border AgencyU.S. Department of LaborUniversity of the West of EnglandWipro TechnologiesYum! Brands

Highlights of talent mobility research findings Participating organizations with selected good practices


Talent Mobility:The physical movement of workers within or across organizations, industries or countries, and globally,

or the professional movement of workers across occupations or skill sets. Mobility may be temporary or permanent and may also involve moving people from unemployed to

employed, moving jobs to people or allowing for virtual mobility.

Highlights of talent mobility research findings Definition must expand to fit the new age of talent mobility

Talent Mobility: tal·ənt mō·bil·ətē

The movement of workers between organizations or among locationsof an international organization


How companies define talent mobility today2012 survey results from 700 American/EMEA companies

Describe your working definition of talent mobility, as reflected in existing HR programs and policies

20%

20%

45%

47%

39%

81%

22%

27%

49%

52%

58%

80%

Moving jobs to people (creating/moving jobswhere talent is in good supply)

Allowing for virtual mobility

Moving workers to different jobs or skill sets

Moving workers to different organizationalunits/functions

Moving workers to different locationsdomestically

Moving workers to different locationsglobally/across borders

Americas webcastEMEA webcast


Highlights of talent mobility research findings Four primary barriers to talent mobility

Widespread unemployability

Critical skills gap

Information gaps

Public & private constraints

Source: Mercer Analysis


Highlights of talent mobility research findings Examples of successful multi-stakeholder collaboration

• Partners with local governments, educa-tional institutionsand NGOs

• Develops talent in India, Brazil, China and Argentina to support its global growth strategy

• Drives improved local prosperity and global economic growth

• Collaborates with governments and educational institu-tions to create inter-national IT/BPOskill standards

• Results in easier movement of people across geographies, occupations and organizations

• Member nations collaborate to assess workforce competitiveness

• Results being used to plan regional labor market integration

• Goal is to become more attractive to global employers and thereby drive prosperity

• A collaboration among multiple stakeholders for growing/developing local financial services talent and driving sector growth

• Aim is to enhance competitiveness of Toronto region as an international finance center

• Relies on high job mobility to develop talent and future leaders

• Places talent in other allied organ-izations to gain “outside” experi-ence and enhance critical skills to strengthen their team


Highlights of talent mobility research findings Develop a collaborative mindset

• Think broadly about the greater good, rather than focusing only on your own objectives

• Engage “hearts and minds” of workforce• Be comfortable with complexity• Think outside the box to drive innovation• Be sensitive and adaptable to different cultures• Be open to continuous learning and new opportunities• Be able to handle ambiguity and uncertainty• Be good at systems thinking• Take a long-term perspective, but have a

sense of urgency


Driving talent mobility excellence Leading companies optimize their global workforce

Build a comprehensive talent planning process and decision framework to support growth strategy

Identify workforce and capability gaps

Engage and create sense of urgency with senior management

Analyze hard data to track dynamics

Create lines of sight among talent management, acquisition, learning & development, and global mobility functions


Intra-company collaborationAlso key to successful talent mobility

Learning and development

Leadership development

Talent management

Employee communi-

cations

Global mobility

Compensation and benefits


Driving talent mobility excellence People strategy must remain aligned with business strategy

Defines the performance goals the organization seeks to

achieve and sets parameters for the decisions and

investments it will make to support those goals

A unique set of prioritized choices about people

investments that enables the organization to achieve its

business strategy and performance goals


Aligning talent mobility good practices with business objectivesThe discussion each organization needs to have

Where is your organization today? Where will you be in five years?

Fully global

Significant presence in a large number of countries, revenue

outside HQ equals or exceeds home-country

revenue

Multi-local

Most revenue in home country, disparate

business units

Rapidly increasingrevenue outside homecountry, geographicmarket expansion

Going global

Domestic

Operating and generating revenue

within the borders of one country


Optimizing talent mobilityFocus on critical talent and roles

Critical talent and

roles

Strategicbusiness

leadership

Emerging, high-potential

talent

Seasonedtechnical experts

Career-building

volunteers

Business value

Dev

elop

men

t val

ue

Low High

High


Building an integrated approach to talent mobility strategySuccessful outcomes through clearly linked programs

Executed through Administration, Communication, Functional Excellence, MeasurementProcess, Policy, HR service delivery, Outsourcing

TALENT

TOTALREWARDS

The right PEOPLE…Talent segmentation

Talent identification

Candidate profiles

Selection criteria

Selection process

in the right PLACES and ROLES…Identification of need and locations

Critical roles

Key skill requirements

PLANNINGat the right COST…Contract type

Remuneration, benefits, allowances and support

Funding arrangements

Management of other related costs

for the right length of TIME and RESULT…Assignment purpose

Type and length of assignment

Assignment lifecycle management

Transition management

INVESTMENT

IMPACT OF MOBILITYLOOKING INSIDE


ILM analysis® for this financial services firm showed that location changes were destabilizing in the short term; on the other hand, moves across business lines have more positive influences

PromotionTurnover: Voluntary

Turnover: Retirement Rating Pay Level Pay Growth Total Pay

Change work location

No Influence

15.5% NA No Influence -2.5% -.1% -2.9%

Ever change work location

No Influence

No Influence NA No

Influence 2.6% No Influence 2.6%

Changed Business line 18%

No Influence

NA 6% 5% .1% 5.2%

Transfer across OpCO

No Influence

No Influence

NA No Influence 7.5% .1% No Influence

Ever Transfer Across OpCo

No Influence

-35% NANo

Influence4% 1% 8%

Note: The models on which these results are based control for individual attributes, organizational factors, and external influences.

MERCER 24April 22, 2023 24April 22, 2023

Promotion Turnover: Voluntary

Turnover: Retirement Rating Pay Level Pay

Growth Total Pay

Masters Vs. Bachelors 11% No

InfluenceNo

Influence 3% 5% No Influence 2%

Doctorate Vs Bachelors 55% No

Influence -83% No Influence 10% No

Influence 3%

Ever did Overseas Assignment

49% 41% NotApplicable 6% -4% 0.1% 28%

Ever did Prog. X (Certification Program)

47% -89% NotApplicable

No Influence -4% -0.1% No

Influence

Ever did Prog. Y (Degree Program)

65% NoInfluence

NotApplicable 2% -13% -0.2% -4%

ILM analysis® allowed this large energy company to assess the impact of developmental and education experiences, so as to improve the return on their considerable investments in human capital

Note: The models on which these results are based control for individual attributes, organizational factors, and external influences.

Here, overseas assignments were a ticket out the door, even though it was also a

ticket to advancement

GLOBAL MOBILITYTRENDS


Global mobility trendsTraditional mobility


Global mobilityNext gen mobility


Global mobilityProgram reporting and organization

To which department does the global mobility function report?

59%

14% 14%

0% 0%

14%

HR -Compensation

CorporateCentre of

Excellence

CorporateShared Services

HR - TalentManagement

Relocation Other


Global mobility and talent management

How integrated is your global mobility program and your talent management? How integrated does your management want them to be?


Global mobility Company profile – cross border programs

How do you expect the number of assignments in the following categories to change in the next two years (2012–2013)?

Assignment Types Increase

Short-term assignments 71%

Typical long-term assignments 57%

Developmental/training assignments 48%

Permanent transfers 47%

Locally hired foreigners 45%

Employees on rotational assignments 34%

Commuters 34%

Contract employees 16%

Global nomads/Career expatriates 14%


Emerging trends

Increasing use of talent-tier policies

By assignment typeBy organizational level

By business unitBy region


Segmented best practices

Establish criteria Identify benefits to be eliminated or reduced Compensation philosophy

Early career Developmental vs.

business need Position/level –

typically manager or below

Employee accommodation

Analysis of intent of benefit

Cost analysis to capture cost savings

Modified Balance Sheet

Local Plus


Employee profile

What percentage of your company’s expatriate population fall into these age bands?

2010 201235 or Younger 28% 22%

36 or Older 72% 78%


International compensation philosophiesMultiple approaches

Pure Home

SalaryHQ Salary Structure

International Salary

Structure

Regional Salary

Structure

Pure Host

Salary

Balance Sheet Home PlusNet to Net

Net to Gross

Higher of

Home or HostHost Plus

Equalization to Home Integration to Host


The rise in global tax equalization programsIncreasing scrutiny of the compensation package

GOVERNANCEFUTURE RISK MANAGEMENT RESPONSIBILITES


Program administration Tracking

Tax authorities are increasing their scrutiny of business travelers and short-term assignees

Concerns around shorter-term mobile employees creating “permanent establishment” issues for the corporation

Need to know employee whereabouts from a security, safety and corporate duty of care perspective

37


Program administrationCompliance and governance concerns

One potential control point is combining the per diem data and a calendar tool for short-term assignments, commuters and business travelers Mercer is working with clients and major mobility software

providers to incorporate per diem information into their tools Employers are looking to use calendar tools to pay per diems

only if and when employees fill out their time in country

See the sample Equus Solution

38

MERCER 39April 22, 2023 39


Looking to the futurePlanning for 2020

Regardless of the reporting structure, make your place at the table

Evaluate your Internal Labor Market

Prepare to be the internal mobility management consultant

Will international “roles” dictate your organization’s mobility approach?

Audit, evaluate and evolve your Mobility Tax policy

Implement Global Mobility Risk Management programs

QUESTIONS

ED HANNIBAL | +1 312 917 9297

mobility 2020 global mobility transformation

Documents

mercer us

mercerworld economic

employers sourcing talent

economic cooperation

talent shortage survey

davosthe world

department of employment

uk border agency