Post on 30-Jan-2018
Talisman Energy’s Global Mobility Transformation
Talisman’s Global Mobility Transformation
• Background
• Approach & Objectives
• Progress to date
• Challenges
• Always Moving Forward
Background
Canada 121 Outbound expats 18 Inbound expats
United Kingdom 34 Outbound expats 21 Inbound expats
Indonesia 0 Outbound expat 13 Inbound expats
Malaysia 9 Outbound expats 45 Inbound expats
Norway 2 Outbound expats 16 Inbound expats
USA 0 Outbound expat 14 Inbound expats
Peru 0 Outbound expat 5 Inbound expats
Vietnam 4 Outbound expats 19 Inbound expats
Talisman’s Global Mobility Population - 2009
Algeria 0 Outbound expats 1 Inbound expat
3048 Employees Globally
• As of January 1, 2009 Talisman had 156 Long Term expat deployments in 9 countries
Canada 145 Outbound expats 26 Inbound expats
Australia 0 Outbound expats 9 Inbound expats
Colombia 0 Outbound expats 7 Inbound expats
United Kingdom 43 Outbound expats 8 Inbound expats
Indonesia 1 Outbound expat 23 Inbound expats
Malaysia 5 Outbound expats 42 Inbound expats
Norway 6 Outbound expats 9 Inbound expats
USA 1 Outbound expat 48 Inbound expats
Peru 1 Outbound expat 6 Inbound expats
Poland 0 Outbound expats 3 Inbound expats
Vietnam 2 Outbound expats 22 Inbound expats
Talisman’s Global Mobility Population - 2011 • January 1, 2009 - 156 Long Term expat deployments in 9 countries • June 1, 2011 - 204 Long Term expat deployments in 12 countries
Algeria 0 Outbound expats 1 Inbound expat
3235 Employees Globally
Canada 168 Outbound expats 30 Inbound expats
Australia 0 Outbound expats 15 Inbound expats
Colombia 3 Outbound expats 8 Inbound expats
United Kingdom 52 Outbound expats 9 Inbound expats
Indonesia 2 Outbound expat 10 Inbound expats
Malaysia 7 Outbound expats 57 Inbound expats
Norway 4 Outbound expats 4 Inbound expats
USA 2 Outbound expat 73 Inbound expats
Peru 1 Outbound expat 3 Inbound expats
Poland 0 Outbound expats 3 Inbound expats
Vietnam 4 Outbound expats 22 Inbound expats
Talisman’s Global Mobility Population - 2013 • January 1, 2009 - 156 Long Term expat deployments in 9 countries • June 1, 2011 - 204 Long Term expat deployments in 12 countries • February 28, 2013 - 245 Long Term expat deployments in 16 countries
Algeria 0 Outbound expats 1 Inbound expat
Luxembourg 0 Outbound expats 3 Inbound expats
Singapore 0 Outbound expats 6 Inbound expats
Sierra Leone 0 Outbound expats 1 Inbound expat
PNG 2 Outbound expats 0 Inbound expats
3944 Employees Globally
Talisman’s Home / Host Assignment Combinations
Aberdeen Bogota
Brisbane Calgary
Ho Chi Minh City Houston
Jakarta Kuala Lumpur
Lima Pittsburgh
PNG Stavanger
Aberdeen Algeria Brisbane Bogota Calgary Erbil Freetown (SL) Ho Chi Minh City Horseheads Houston Jakarta Kuala Lumpur Lima Luxembourg PNG Pittsburgh Singapore Stavanger Sydney Warsaw
Home Location Host Location
47 Different Home/Host Combinations and 274 Assignees as of February, 2013
Corporate Structure
Why did Talisman undertake a transformation of Global Mobility?
• Between 2009 and 2013, Talisman entered into 7 new locations, nearly doubled the number of employees on international assignments, and encountered a number of new home-host country combinations for assignments
• At the same time, initiating a new assignment was more challenging due to the increased number of policies and exceptions as new policies were created for many of the new countries we entered
• A complex legal structure and corporate veil issues (secondments, LOAs, no standard approach, etc.)
• Talisman business and HR leaders reported difficulties identifying and mobilizing candidates for international assignments and retaining them while on assignment
• An internal audit conducted on Global Mobility in Q4 2010 identified inadequate processes and controls and an annual spend that was feeling like it was out of control
• Assignees complained that the relocation experience was confusing and that there were too many contacts
• Some elements of Talisman’s long term expatriate policy were above market practice when compared to oil and gas peers
In 2011 Global Mobility was identified as a key strategic priority for Talisman
Approach & Objectives
Step 1: Current State Assessment
Step 2: Design Future State Service Delivery Model
Step 3: Design Future Policy and Governance Framework
Step 4: Develop Change and Implementation Plan
Phase 1: Assess Program, Redesign & Develop Implementation Plan
Phase 2: Construct Future State Program
Phase 3: Implement Future State Program
Phase 1: Assess
Phase 1: Current State Assessment
Service Delivery Design Considerations
Process Require clear, streamlined processes for assignee initiation, new country entry and exception management
People Clearly define and communicate responsibilities of Global Mobility COE, HRBPs, functional business leaders and assignees
Vendor Establish clear service level agreements with external service providers and clearly articulate exception management processes
Policies Redesign the suite of policies to meet differing business and assignment type needs, while minimizing the number of policies
Technology Review technology solutions, integrate where possible and seek out opportunities to leverage vendor technologies
Governance
Develop and implement a clear governance structure which outlines grants of authority for assignment approval, policy management and exception management
Business Requirements
Requirement Business Priority
Current Effectiveness
Change Impact
Business Partnering
Employee Experience
Speed
Consistency
Controls
Scalability & Adaptability
Operational Cost
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Key business requirements and design priorities emerged from the program assessment and were used to drive the redesign process. Interviews and workshops were conducted with HR stakeholders representing HR leadership (including the senior HR business partners from each business), the Global Mobility team and other process partner specialists. Additional interviews were conducted with functional stakeholders, external vendors and business representatives.
Phase 1: Outcome of Current State Assessment
• Objectives were defined :
– To enable fast, effective global deployment to support Talisman’s business objectives, our mobility program must:
• Be adaptable to business needs and different talent markets
• Provide a positive employee experience regardless of the home and host countries involved
• Enable business managers and employees to focus their effort and attention on their core business rather than being distracted by logistics
• Be cost efficient and competitive with our oil and gas peers
Step 1: Resource Requirements Identification
Step 2: Service Delivery Model Process Design
Step 3: Policy and Terms & Conditions Design
Step 4: Develop Implementation and Assignee Transition Plans
Phase 1: Assess Program, Redesign & Develop Implementation Plan
Phase 2: Construct Future State Program
Phase 3: Implement Future State Program
Phase 2: Design
Phase 1: Assess Program, Redesign & Develop Implementation Plan
Phase 2: Our comprehensive assessment led to eight key recommendations focusing on two core areas
• Proposed program changes will help enhance our assignees’ mobility experience by improving the processes and support provided throughout their assignments
• Close linkage between assignment planning and career development
• Improved speed of deployment • Effective technology platform for assignment planning, tracking
and providing cost implications of mobility decisions
Program administration • New global mobility
support team and processes
• New service delivery model
• Relocation services vendor
Policy changes • Consolidated policies
from 19 current policies and practices down to 5 (Long term, Short term, Domestic/International Transfer, Commuter, Rotator)
• The policy changes will create more global consistency and equity for all assignees
• We firmly believe that these changes are fair to our people, competitive with our peers in the oil and gas market, and the right thing to do to progress Global Mobility to meet our current and future business needs
• Alignment of policy provisions to their true intent (e.g. tax as an equalize rather than incentive)
• Ability to comply to applicable laws and regulations
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Benefits of implementing Key changes
Recommendations must support our overarching strategy of putting the right people in the right place...however, it is imperative that the implementation strategy
minimizes risk
• Inconsistency across regions creates inequity among assignees
• Continued above market provisions
• Lack of alignment to Oil & Gas peers practices
• Difficulty mobilizing employees across locations
• Expected savings not achieved:
• Approx. $4M per year, once all assignees transitioned
Implications of not implementing
Phase 2: Global Mobility Service Delivery Model
• The CoE focuses on governance and program improvement to improve policy and process controls; the centralized CoE also helps to achieve consistency
• Dedicated Regional Global Mobility Specialist roles partner with the Business to better plan and expedite deployments
• Mobility Services roles support a positive Employee Experience
• A global Relocation Services Provider will improve process controls as well as effectiveness and efficiency;
Global Mobility Center of Expertise
(CoE)
Regional Global Mobility Specialists
Global Mobility Services Reps
Global Mobility Service Delivery Model – Implemented in 2012
Relocation Services Vendors
Key Responsibilities:
Policy, Governance, Controls, Reporting
Assignment Planning, Advisory, Policy Administration
Policy Administration, Day-to-day support
Delivery of relocation services
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HR BP
Business Leader
Talisman’s current 19 mobility policies and program highlights have been streamlined and realigned into a suite of 5 new Global Policies
Phase 2: Our new policy framework simplifies mobility options globally
• Expatriate Policy • Cross-border Assignment Policy (Pittsburgh / Horseheads only) • North American Expatriate Policy (all other locations ) • Expatriate Transfers to Australia
• Short Term International Assignment
• Commuting Assignment
• Rotational Terms & Conditions
19 Policies
Long Term (1-4 yrs)
Short Term (2 mos. – 1 yr)
Permanent Transfer
(One way move)
Commuter Ongoing
Rotator (Up to 3 yrs)
5 Global Policies
• New Hire Global Transfer Policy (Tier 2 - Below M2) • Employee Relocations • New Hire Global Transfer Policy (Tier 1 - M2 and above) • Local Plus Transfers to Australia • New Hire Global Transfer Policy - Australia (Tier 1 - M2 and above) • New Hire Global Transfer Policy - Australia (Tier 2 - Below M2)
• Domestic New Hire Transfer Policy (Tier 1) • Domestic New Hire Transfer Policy (Tier 2) • Relocation Program - New Grads • Group Move Transfer Policy • Domestic Transfer Policy - Australia • Temporary Student Transfer Policy
Phase 2: The new policies are aligned with consistent global principles
Guiding Principle
Alignment Long Term assignees will be financially aligned to home country, with a reasonable incentive for being on assignment
Clarity Provisions are clear, simple to explain and easy for assignees to utilize
Adaptability Provisions will be adaptable to local conditions and business needs
Market Competitive Terms & Conditions will be competitive with our peers in the market
Consistency Assignees will be treated consistently and equitably across all regions
These principles were developed to guide policy development and ensure that they meet the needs of our business
Phase 2: Our new framework provides transparency by aligning policy provisions with their true intent
Provision Category Description Decision
Owner Adaptability
Core Compensation & Benefits
Provisions including base remuneration and benefits
Total Rewards and Business
Established by Total Rewards and decided by the business
Equalizers Provisions designed to ensure employees are no better and no worse off than if they had not taken an assignment
Global Mobility CoE
Not Flexible • Components are set by Global Mobility COE
based on industry methodology and vary by location
Enablers Provisions to help the employee relocate and focus on their role
Business and Global Mobility Specialist
Flexible • ‘Dial Up’ / ‘Dial Down’ options available and
determined by the Business with the Global Mobility Regional Specialist and HRBP
Situational • Provided as needed for the assignee’s
specific circumstances
Incentives
Provisions to incent employees to take an international assignment
Global Mobility CoE
Not Flexible • Components are set by Global Mobility COE
based on industry methodology and vary by location
Situational • Provided as needed for the assignee’s
specific circumstances
Phase 2: Common Transition Approaches Em
ploy
ee S
atisf
actio
n Adm
inistration Costs
Grandfather Current assignees continue to receive reimbursements and allowances as per the legacy policy terms and conditions for the duration of their current assignment. Assignment extensions would follow the new terms and conditions
Pros • Employee friendly for those who will be
negatively impacted by new terms & conditions
• Assignee support (e.g. allowances & net compensation) remains the same until the current assignment concludes
Cons • Inconsistencies will be created between “old”
and “new” policy expatriates • High level of administration for ongoing
payroll/support services
Phase-Out Allows current international assignees to maintain current allowances and support for a defined period of time. Support then decreases over time with a full transition to the new policy after the “transition period” expires.
Pros • Employee friendly for those who will be
negatively impacted by new terms & conditions
• Any reduction in assignee support is reduced over time to avoid an immediate disruption to assignee experience and quality of living
Cons • Inconsistencies will be created between “old”
and “new” policy expatriates • High level of administration for a longer
period of time during the phase-out schedule or transition period
Buy Out Provides for a one-time lump sum payout to current assignees equal to the difference between the legacy and new terms and conditions for any provisions which negatively impact the assignment package
Pros • Employee friendly for those who will be
negatively impacted by new policy • Employee is kept neutral through receipt of a
lump sum payment to offset reduction in allowances for the remaining assignment term
• Not applicable to positively impacted expatriates
Cons • Moderate levels of administration during
short period of time • Increases Company costs in the year of
transition to the new terms and conditions • Increased administrative cost to explain and
illustrate that assignees’ will be equally compensated for reduced assignment support
Immediate Transition All existing assignees would transition to the new policy terms and conditions on a specific date with no reimbursement provided to assignees adversely affected by the new terms and conditions
Pros • Maintains consistency with new expatriates • Moderate level of administration during initial
transition period • More efficient implementation of technology
and vendor processes
Cons • May positively or negatively impact current
assignees • High risk of attrition of current assignees due
to reduction in net compensation • Strong probability that this approach may not
be legal in some jurisdictions
Phase 3: Implementation
Step 1: Implement Change and Communications Plan
Step 2: Finalize Policy and Supporting Documents
Step 3: Transition to Operations
Step 4: Implement Service Delivery Model
Phase 1: Assess Program, Redesign & Develop Implementation Plan
Phase 2: Construct Future State Program
Phase 3: Implement Future State Program
EVPs
Current Expats
Business Unit Leaders
Engage: July-Sept
Go Live Period: Sep-Mar
Persist: Post Go Live
Prepare: May- June
• One-to-ones prior to OpCom meeting
• Key messages and QA’s
• One-to-ones with focus on regional impacts and ways to address
• Participate in select country-level meetings
• One-to-ones with focus on regional roll out progress
• Executive-level handbook
• Key messages and QA’s
• One-to-ones with focus on regional issues
• Communication or FAQ to address concerns
• One-to-ones with GM team to review impact statement
• Road shows with EVP participation
• Feedback touch point via Regional Specialists
• Communication or FAQ to address concerns
• One-to-ones to prepare for go live
• Key messages and QA’s
• Preparedness communications/ calls for Go Live
• One-to-ones during Global Mobility roadshow visits
• Executive-level handbook
• Key messages and QA’s
• One-to-ones with focus on country specific issues
• One-to-ones with focus on country specific impacts
• Key messages and QA’s
All Talisman Employees
• General communication and information on changes
• Potential “lunch and learns” in uniquely affected regions
Phase 3: A Robust Change and Communication Plan was Key
Phase 3: Post Project Evaluation – Lessons Learned
• Once the project was complete we conducted a lessons learned review with representatives of key project stakeholders.
• Summary of findings from this exercise include:
– Dedicated project manager is required due to the scope and size of the effort
– Defining policy principles upfront helps guide the design and communication
– Define & communicate the key business drivers
– Communicate early & often - transparency in communication is key
– Have GM SMEs involved in the change management and communication
– Complete a current state assessment of policy and practice early to adequately prepare for implementation
– Identify system/tool impacts early to allow for adequate time for updating and operationalizing
– Leverage global resources
– Maintain alignment with the business (allow for flexibility)
Progress to Date
Global Mobility Mandate
Talisman recognizes that the effective use of international assignments serves to support both employee development and the organization’s ability to excel within the global marketplace.
The Global Mobility team is accountable for ensuring Global Mobility policies and programs are aligned with Talisman's needs and administered consistently throughout the organization, and provides full lifecycle support for Talisman employees on assignment, transferees or new hires
Global Mobility Policy
Governance and Compliance
Policy design based on industry benchmarking and regional input Policy advisor to Business Leaders, HRBPs and employees
Cost controls for relocation costs Tax compliance in both the Home and Host locations Visa & Immigration compliance Consistent policy application globally
Consistent & Equitable Employee Experience
Efficient & Effective Service
Delivery
Speed of deployment of mobile employees across regions Service delivery that meets regional needs Variable cost model (scalable) Consistent processes, tools and templates
Consistent service levels Consistent & equitable treatment of employees across regions Clear contacts & accountabilities
Data and Metrics Capture, monitor and report on data globally Global metrics and survey capabilities
Global Mobility Program Objectives Talisman’s Global Mobility function is responsible for:
Four policies have been fully implemented.
Policy progress to date
• New Hire Global Transfer Policy (Tier 2 - Below M2) • Employee Relocations • New Hire Global Transfer Policy (Tier 1 - M2 and above) • Local Plus Transfers to Australia • New Hire Global Transfer Policy - Australia (Tier 1 - M2 and above) • New Hire Global Transfer Policy - Australia (Tier 2 - Below M2)
• Domestic New Hire Transfer Policy (Tier 1) • Domestic New Hire Transfer Policy (Tier 2) • Relocation Program - New Grads • Group Move Transfer Policy • Domestic Transfer Policy - Australia • Temporary Student Transfer Policy
• Commuting Assignment
19 Policies
Long Term (1-4 yrs)
Short Term (2 mos. – 1 yr)
Permanent Transfer
(One way move)
Commuter Ongoing
Rotator (Up to 3 yrs)
5 Global Policies
April 2012
Implementation Date
September 2013
April 2014
April 2013
Future
• Expatriate Policy • Cross-border Assignment Policy (Pittsburgh / Horseheads only) • North American Expatriate Policy (all other locations ) • Expatriate Transfers to Australia
• Short Term International Assignment
• Rotational Terms & Conditions
New Ways of Working
• Global Processes – Assignment initiations – Assignment approvals – Assignment extensions – Exceptions management
• Team Communications – Sharepoint – Discussion board – Monthly calls – 1:1 calls amongst Specialists – GM Specialists attend HRBP & Business meetings
• Tools & Templates – Exception request template & exception log – Business case form – LTA cost projection tool (PWC) – Assignment Letter Templates – Flag sheets of allowances & site specifics (by country)
Resources available to support the new policy and programs
Global Mobility Services Representative
Global Mobility Specialist
Global Mobility Selection Guide
Employee Handbook Long Term Assignments
Assignment Letter
Relocation Services Vendor
Business Case Tool Assignment Cost Estimate
Estimate of Assignment Allowances
HR Guidebook Long Term Assignments
Global Mobility
Challenges
Transformation Challenges
• Change in business strategy with increased focus on regional autonomy
• Business’ appetite and understanding of mobility’s role (value add)
• Role clarity – GM vs. HR and Host vs. Home • Policy implementation – took a lot longer than anticipated • Systems and data • Exception management • JVCos (new operating model) • High amount of organizational change and impact on home
sponsorship • Country exits
Pre-Planning Pre-Assignment On-Assignment Re-Assignment
Overlap of responsibilities leads to confusion for both the assignee and Global Mobility
Manage escalated exception requests
Initiate relocation & vendor services
Coordinate with business on next role and succession plans
Prepare program metric and strategic reporting analysis
Contact employee and conduct pre-departure orientation Initiate end of assignment /
repatriation activities
Feed mobility data into talent review cycle
Develop assignment package and socialize with approving authority
Facilitate mobility planning discussions with business leader
Global Mobility Services
Vendor Network
HR Business Partner
Global Mobility Regional Specialist
Maintain employee data record management Complete internal
accounting and cost allocations
Administer expense reimbursements
Support visa application process
Conduct post-assignment tax briefing
Conduct pre-assignment tax briefing
Collection of assignment costs
Coordinate relocation services
Conduct assignee on-boarding
Complete assignment business case and advise Business Leader and HRBP of applicable assignment types
Confirm employee’s interest in relocation
Direct employee support
Indirect employee support
Discuss initial questions / concerns with employee
Finalize assignee package with employee
Manage redeployment / reassignment activities six months prior to end date
Transfer knowledge of assignee profiles to new host Global Mobility Regional Specialist for assignees that are redeploying
Key Assumptions -Employee support is provided by the Host Global Mobility Regional Specialist
Complete annual compliance returns
Generate assignment balance sheets
Keep Moving Forward
The not so distant future vision for Talisman GM:
Long Term (1-4 yrs)
Short Term (2 mos. – 1 yr)
Permanent Transfer
(One way move)
Commuter Ongoing
Rotator (Up to 3 yrs)
5 Global Policies Talent
• All assignees transferred to new policy terms and conditions (no more grandfathering)
• Regional talent management strategies for assignee population
• Management of assignment end dates through integration of career planning and assignment planning
• Increased focus on deploying assignees for talent development
Objectives
• Be adaptable to business needs and different talent markets
• Provide a positive employee experience regardless of the home and host countries involved
• Enable business managers and employees to focus their effort and attention on their core business rather than being distracted by logistics
• Be cost efficient and competitive with our oil and gas peers
Relocation Services Management – Global Approach (desired future state)
Aberdeen Bogota
Brisbane Calgary
Ho Chi Minh City Houston
Jakarta Kuala Lumpur
Peru PNG
Pittsburgh Stavanger
Aberdeen Algeria Brisbane Bogota Calgary Erbil Freetown (SL) Ghana Ho Chi Minh City Horseheads Houston Jakarta Kuala Lumpur Lima Luxembourg PNG Pittsburgh Singapore Stavanger Sydney Warsaw
Host Location Home Location
Two ways to manage: 1. Different vendors – regionally managed 2. One global vendor – regionally located
with global oversight
Americas
Asia Pacific
Changing the Way we Work • New HRMS system implementation helps to
bring us full circle • Still considering a full expat management
software to eliminate the manual tracking we still need to do
Questions?