WORKFORCE MOBILITY IN A GLOBAL ECONOMY- EMERGING AND CHALLENGING MARKETS

Presenters:Andrew Pierce, SVP, Global Supplier DevelopmentGraebel Relocation Services Worldwide

Bob Rosing, President and CEODwellworks, LLC

AGENDA

Emerging Markets Due Diligence

Case Studies – Africa, China, Latin America

Challenging Markets Collaboration is key

Case Studies – Canada, Europe

Bringing it all Together

EMERGING MARKETS

THE EMERGING MARKET

New markets pose unique challenges

Mobility professionals need to play a key role Strategic advisors Timing is key – consult prior to entry

DUE DILIGENCE: UNDERSTANDING BUSINESS OBJECTIVES

Type of entity

Business and scope of assistance needs from mobility team

Any prior experience/lessons learned

DUE DILIGENCE: STAFFING REQUIREMENTS AND TALENT ACQUISITION STRATEGIES

Local and non-local hires

Types of assignments or transfers

Review and revise current policies

Determine compensation approach for expats – home or host

Allowances – what is needed to get the right talent

Payroll

DUE DILIGENCE: LOCAL LAWS AND REGULATIONS

Immigration

Taxation

Totalization agreements

Review of current benefits programs

DUE DILIGENCE: GENERAL COUNTRY INFORMATION

Lifestyle Housing Schools Healthcare Recreation

Security

HHG Shipping Special requirements

DUE DILIGENCE: IN COUNTRY VISIT

Objective: to gain real, first hand knowledge

Meet local providers – DSPs, schools, housing options

CA

SE S

TU

DY: A

FR

ICA 

Background:

Construction services

Simultaneous expansion in several countries

Long term commitment to the continent

Preference to hire native Africans who have been educated/ trained abroad

Decision to refine FLH package to suit

Lessons Learned:

Required adjustments to program elements: housing, salary, education

Need for program flexibility based on response to offering

CA

SE S

TU

DY: C

HIN

ABackground:

Financial Services

Well established; looking to expand into Tier 2 city

Variable and inconsistent work permit and local registration processes

Decision to conduct thorough immigration and tax verification in advance 

Lessons Learned:

Comprehensive legal and tax guidance was invaluable

Two week in-country reconnaissance was key to success – first-hand exposure to options for housing, schools and medical facilities

CA

SE S

TU

DY: L

ATA

M

Background:

Market variability in expat/FDI growth

Develop strategy that supports appropriate speed to market

 

Approach and Lessons Learned:

Organic or acquisition?Leverage local expertiseConnect local strengths with greater governance/ compliance

Hub and spoke designIntegrate local approach into global practice

Build on what you have in common, bridge to close any gaps

Ease of Doing Business in LATAM Countries - 2014 (scale of 1-183)

Economy

Ease of Doing

Business Rank

Starting a Business

Getting Electricity

Paying Taxes

Enforcing Contracts

Canada 19 2 30 2 23Peru 42 8 19 6 15Colombia 43 14 22 12 25

Mexico 53 5 28 17 5Panama 55 3 3 30 21Dominica 77 6 16 7 28

Guatemala 79 23 9 8 11Uruguay 88 4 6 23 15Costa Rica 102 18 13 20 22

Belize 106 28 15 3 29Grenada 107 11 18 9 26Paraguay 109 19 14 18 14

Guyana 115 17 31 14 6Brazil 116 20 2 26 19Dominican Republic 117 22 25 13 7El Salvador 118 24 30 28 4

Nicaragua 124 20 23 27 1Argentina 126 27 20 25 2Honduras 127 26 24 21 31

Ecuador 135 29 29 10 12Suriname 161 31 11 4 32Bolivia 162 30 26 31 23

Haiti 177 32 17 19 10Venezuela, RB 181 25 32 32 9

CHALLENGING MARKETS

THE CHALLENGING MARKET

Challenges can come in many circumstances New Locations: open playing field

Emerging Locations: possible governance, compliance and infrastructure challenges

Established Locations: are existing processes relevant to changing client needs?

HOW TO RESPOND

Understand the market and define the risk

Know what you are good at and identify gaps

Leverage your technology and core competencies

Use formal project planning

Provide appropriate and adequate personnel

Expect and embrace local learning

COOPERATION BETWEEN CORPORATE CLIENTS AND SUPPLY CHAIN

Shared Purpose: Design it as a customer experiences it “Take the rocks out of the road”

Clearly Define Roles and Responsibilities: Practice “borderless” communication

Trust Accountability Transparency

Acknowledge Risks and Concerns: Move Forward!

CASE STUDY: REMOTE CANADA

Challenges: Large country with a high urban concentration

Booming service needs in remote locations

Sporadic DS service and limited network resources

Historically a focus on ‘finding the local resource’

Not unique to Canada: New markets regularly develop in established countries

CASE STUDY: REMOTE CANADA

Solution: Set expectations – define a different type of

experience

Focus on quality of information and preparation

Use professional and experienced in-office consultants

Deliver a more reliable, available, and accessible service experience…and deeper information

Unaccompanied does not mean unsupported

CASE STUDY: EUROPE

The Challenge: Out of the box approach vs. traditional

delivery structure

Lack of agility in service caused loss in service value

Breakdown in “trust chain” – loss of communication

CASE STUDY: EUROPE

The Solution: Designed from customer’s perspective

Collaborative design approach

Engaged leadership

On-going communication

Project management approach to all activities

Properly resourced team and skill sets

CASE STUDY : EUROPE

Lessons Learned: Look beyond the scope and process

Focus on business needs and customer experience

Use what you know and be willing to learn

Flexibility adds value

Challenge yourself - the more you give the more you learn!

BRINGING IT ALL TOGETHER

BRINGING IT ALL TOGETHER

“Challenging” markets are the new normal

Positive tension between the known and

unknown is productive

Have a process and keep an open mind

Evaluation is as important as implementation

Questions?