EY Human Capital Conference 2012: Global mobility - getting the most from your assignee data
EY Human Capital Conference 2012: Building a global mobility policy from the ground up
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Transcript of EY Human Capital Conference 2012: Building a global mobility policy from the ground up
2012 Human Capital Conference23–26 October
Building a mobility policy f th b ttfrom the bottom up
Disclaimer
► Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US.
► This presentation is © 2012 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical,distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP Any reproduction transmission orpermission from Ernst & Young LLP. Any reproduction, transmission or distribution of this form or any of the material herein is prohibited and is in violation of U.S. and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or itsdisclaims any liability in connection with use of this presentation or its contents by any third party.
► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP
Building a mobility policy from the bottom upPage 2
those of Ernst & Young LLP.
Presenters
► Maureen Potts ► Jane Malecki► GlaxoSmithKline► [email protected]
► Ernst & Young LLP► [email protected]
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Session overview
► Understand the steps needed to build a global mobility p g ypolicy.
► Identify the components of effective policy building.y p p y g► Discuss the constituents of global mobility policies and
their role in building those policies.► Learn from the experience of GlaxoSmithKline’s (GSK)
approach to crafting their policies.
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Introduction to global mobility policies
How do global mobility programs evolve?
International assignee
►30+ international employees
►Dedicated
programs evolve?
numbers
►10-30 international employees
►Some e pertise
International HR department
►Multi-tier policies ►Outsourcing
►5-10 international employees
►Little expertise►Policy being
►Some expertise►Policy in place
►First few international employees
►No international
y gconsidered
HR expertise►No policy
International HR expertise
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International HR expertise
Approach to policy advisory – review
Policy review it i
Strategic alignment: ► Is the policy aligned with business/HR strategy and future expansion plans?► Is the policy aligned with global mobility strategy?► Is the policy aligned with corporate culture?criteria ► Is the policy aligned with corporate culture? ► Is the policy aligned with the talent management process?
Policy alignment: ► Is the policy aligned with other (group) mobility policies?
Compliance: ► Does the policy promote tax compliance?The cost-effectiveness p p y p p► Does the policy promote social security and pension compliance?► Does the policy promote immigration compliance?► Does the policy promote labor law compliance?
Cost effectiveness: ► Are benefits and allowances aligned with leading practice?
criteria includes detailed benchmarking results against major competitors f l b l t l t ► Are the benefits and allowances paid in a tax-effective way?
► Is the company protected against excessive claims/losses?► Is policy administration effort optimized?
Completeness and consistency:
► Are all leading practice items covered?S ti f it li i t l tt l l b fit b h
for global talent.
and consistency: ► Separation of items: policy vs. assignment letters vs. local benefit brochure, etc.
► Are all items covered consistently in terms of level of detail?
Attractiveness to the assignee:
► Is the policy attractive to the assignee and family?
Structure and wording:
► Is the policy built upon a logical structure following assignment process?► Are potential misunderstandings in wording minimized?► Is the wording and layout user-friendly — easy to read and understand for
assignees?► Are additional administration guidelines clear and user-friendly for those
administering the policy?
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g p y
GSK’s journey
► Centralized – present:► Global mobility► Global mobility
► Decentralized:► Domestic relocation:
► US► US► UK
► Cross-border – future:► Assignments► Local plus► International permanent relocation► Localizations► Foreign direct hires► Global domestic relocation
► End-to-end process:► Ensures compliance and governance► One point of contact
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GSK – Global Mobility Program
► Global assignee population: 500g p pAssignment types
Long-term 194
Top 10 assignment locations
United Kingdom
Short-term 73
GA Zero 62
GA Lite 20
United States
Singapore
BelgiumGA Lite 20
Commuter 78
Graduate 54
Belgium
China
France
BTTCTL 18
PULSE 1
Ireland
Malaysia
Argentina
► Total number of assignment locations: 51
Argentina
Hungary and South Africa are tied
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► Total number of assignment locations: 51
Cross-border policy proposal
► Proposed creation of geographically based function with p g g p yindividual roles with the following responsibilities:► Provide first-level counsel to Human Resource Business Leaders
(HRBLs), line managers others regarding key considerations on the type of cross-border alternatives (i.e., Global Assignee (GA), localization, Local Plus)
► Own the “end-to-end” process and coordinate each sub-process owner’s activity within geography (i.e., ensuring joiner activities occur such as IT and induction)occur, such as IT and induction)
► For cross-geography activity, serve as the “lead” or “secondary” coordinator as appropriate
► Manage all Comms cell or other tracking/escalating activities► Directly complete required relocation and destination services
tasks
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tasks
Stakeholders
► Identify stakeholders:y► Not just the heads of the business► Understand who your transactional partners are► Make sure HR is engaged
► Understand business drivers► Obtain commitment at the top► Ensure communication goes in all directions
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Structure
► Reward Center of Excellence (CoE)( )► Centralized global mobility centers► Three regional centers:► Three regional centers:
► UK► US► Singapore
► Host-based:► Advisors responsible for all businesses within a country► Creates country experts
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Reward CoE
HR business leaders HR business leaders
E tE t Business alignedBusiness aligned
HR
sh
ExpertExpert
Specialistconsultants
Business alignedBusiness aligned
Reward business leaders hared servicce
llenc
e
consultants
Business measures/program
Expert global services
Expert global services
Global comp.operations
Global comp.operations ces/em
ployentre
s of
Exc
Executive
p gexcellence
operationsoperationsRegional
operations
Global project
Long Term Incentive (LTI)
programsand services ee services
Cen compensation Global project
implementation
Global process delivery/analysis
Global mobility programs and
services
s
External
Benefitsdelivery/analysis
Global supportCompensation
systems
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External
Support infrastructure
► Global HRIS► Payrolls► Talent► Talent► Benefits► Outsourced partners► Outsourced partners
► Tax (including social security)► Data► Immigration► Relocation
Fi► Finance
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Global Mobility Centre Responsible for programs and services in the Americasp p g
Director, Global M bilit PMobility Programs
and Services AMERICAS
Global Mobility Global Mobility Global Mobility Advisor
AMERICASUS
Administrator AMERICAS
US
Advisor Technology
USUS US US
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Global Mobility Centre Responsible for programs and services into EMEA/APACp p g
Director, Global Mobility Programs
and Services EMEA/APACEMEA/APAC
Global Mobility Advisor
UK
Global Mobility Advisor
UK
Global Mobility Advisor
UK
Global MobilityAdvisor
UK
Global Mobility Administrator EMEA/APAC
Global MobilityAdvisor
SiUK UK UK UK UKSingapore
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One global end-to-end process is possible
Total reward
ti
Destination services
Leavers sub-
Joiners
actions
Ongoing
process
Joiners sub-
process
Relocation services
Ongoing HR admin.
activity
Foundation: governance (tax immigration data protection etc )
Global Asassignees Host Yes Yes Yes needed No
Foundation: governance (tax, immigration, data protection, etc.)
Localizing New Yes As As As Formeremployees home needed needed needed home
Foreign direct Yes Yes As As As Nohires needed needed needed
International New Yes As As As Former
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transfers home needed needed needed home
Tools
► Myriad of worldwide payrolls/Human Resource y p yInformation System (HRIS) systems:► PeopleSoft► SAP► WorkDay
A i t t S t► Assignment management System:► Assignment Pro:
► Demographics► Demographics► Workflows► Interface
► Compensation accumulation
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Culture
► Self-service:► Globally
► Assignment administration:g► Somewhere in between:
► Disruption of:► Personal life► Personal life► Work life► Family life
S li i h d il► Success lies in the details
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Compliance
► Partner with outsourced providers:p► Tax► Immigration► Data► Relocation
E ti it► Ensure continuity► Insure governance
C id U S F i C t P ti A t► Consider U.S. Foreign Corrupt Practices Act► Consider UK Bribery Act
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Cost-effectiveness
► Benchmark of benefits and allowances► Tax impact► Risk management► Risk management► Administrative impact
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Attractiveness to the assignee
► Adequate benefits to neutralize cost impactq p► Incentives to offset any potential career disruption► Assistance for dual-career families► Assistance for dual career families
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Completeness and consistency
► Leading practices consideredg p► Industry practices evaluated► Easy to understand► Easy to understand► Integration with local policies and benefits
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Structure and wording
► Logical flow of written documentsg► Adequate examples to illustrate mechanics► Attractive layout► Attractive layout
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Driving continuous improvement – areas of focus and heat mapfocus and heat mapThe operating model consists of a set of seven key components over which there are choices that can be made in designing global mobility activity ownership.
► Deliver effective and efficient processes in the right location
► Currently under review by client► Set up a global framework for policies to support global governance
► Currently under review by client► Use benchmarks to
promote continuous improvement of service
► Structure the Organization to deliver valuable service to the business
► Define appropriate local
improvement of service levels
► Currently under review by client
Process Performance Measurement
Policy
Execution layer
► Define appropriate local, regional, global structures, shared service centers / outsourcing
► Area of challenge for client operation
► Define a system architecture and tools to enable valuable activities
OrganizationOrganization layer
► Define a set of consistent global data standards and common
activities
► Global technology deployed in 2011
► Select the right people resources with
Data TechnologyPeopleResource layer
fields of information
► No pressing issues noted by client
► Select the right people resources with the right skills in the right location
► Survey feedback expressed concerns surrounding HR representatives
Initial focus typically begins on the organization layer and the process component within the execution layer
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Initial focus typically begins on the organization layer and the process component within the execution layer.
Questions
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