MOBILITY 2020GLOBAL MOBILITY TRANSFORMATION 11 March 2013 Ed Hannibal Partner
Today’s Agenda World Economic Forum and Mercer Talent Mobility Research Findings Impact of Mobility Global Mobility Trends Governance
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 New Home-Country Expatriate Moves * From internal Mercer data requests
Where are employers sourcing talent? Top 15 host locations • Shanghai 2) Singapore 3) Hong Kong 4) Bangkok 6) Beijing 7) Tokyo 8) Paris 9) Seoul 10) Dubai 11) Jakarta 12) Taipei 13) São Paulo 14) Kuala Lumpur 5) London 15) Brussels
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 Talent & Skills Gap 13.3 millionunemployed in US 3.3 millionjob vacancies in US There is a clearmismatch between What’sIN DEMAND and What’sAVAILABLE in the global talent pool 205 millionunemployed globally 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
Highlights of talent mobility research findings Participating organizations with selected good practices
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
Describe your working definition of talent mobility, as reflected in existing HR programs and policies How companies define talent mobility today2012 survey results from 700 American/EMEA companies
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 Create lines of sight among talent management, acquisition, learning & development, and global mobility functions Build a comprehensive talent planning process and decision framework to support growth strategy Engage and create sense of urgency with senior management Identify workforce and capability gaps Analyze hard data to track dynamics
Learning and development Leadership development Compensation and benefits Talent management Employee communi-cations Global mobility Intra-company collaborationAlso key to successful talent mobility
A unique set of prioritized choices about people investments that enables the organization to achieve its business strategy and performance goals Defines the performance goals the organization seeks to achieve and sets parameters for the decisions and investments it will make to support those goals Driving talent mobility excellence People strategy must remain aligned with business strategy
Operating and generating revenue within the borders of one country Most revenue in home country, disparate business units Multi-local Domestic Fully global Going global Significant presence in a large number of countries, revenue outside HQ equals or exceeds home-country revenue Rapidly increasingrevenue outside homecountry, geographicmarket expansion 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?
Optimizing talent mobilityFocus on critical talent and roles High Strategicbusiness leadership Emerging, high-potential talent Critical talent androles Development value Career-buildingvolunteers Seasonedtechnical experts Business value Low High
Building an integrated approach to talent mobility strategySuccessful outcomes through clearly linked programs Executed through Administration, Communication, Functional Excellence, Measurement Process, Policy, HR service delivery, Outsourcing
IMPACT OF MOBILITY LOOKING 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 Note: The models on which these results are based control for individual attributes, organizational factors, and external influences.
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 Here, overseas assignments were a ticket out the door, even though it was also a ticket to advancement Note: The models on which these results are based control for individual attributes, organizational factors, and external influences. 23 July 15, 2014
GLOBAL MOBILITY TRENDS
Global mobilityProgram reporting and organization To which department does the global mobility function report?
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?
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
International compensation philosophiesMultiple approaches Pure Home Salary HQ Salary Structure International Salary Structure Pure Host Salary Regional Salary Structure Integration to Host Equalization to Home Balance Sheet Home Plus Net to Net Net to Gross Higher of Home or Host Host Plus
The rise in global tax equalization programsIncreasing scrutiny of the compensation package
GOVERNANCE FUTURE 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 36
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 37
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