Comprehensive Global Assignment Policy Design Process: Phases and Considerations
This document outlines the comprehensive nine-phase design process for global assignment policies, as presented by Neil B. Krupp, Vice President of HR Consulting and Global Compensation Services. Key objectives include creating consistent, proactive policies that minimize financial uncertainties for assignees while enhancing their international experience. The phases include diagnostic reviews, policy development, benchmarking, implementation, and communications strategies, ensuring alignment with corporate goals and employee needs. The approach fosters a supportive environment and facilitates knowledge transfer upon repatriation.
Comprehensive Global Assignment Policy Design Process: Phases and Considerations
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Global Assignment Policy Design Process and Considerations Neil B. Krupp, CMC Vice PresidentHR Consulting & Global Compensation Services FEMJune 14, 2011
Policy Objectives • Comprehensive • Consistent with existing HR programs / professionally contemporary • Proactive and supportive of overall corporate philosophies and objectives • Minimizes assignees’ financial gains and losses • Encompasses a support system, which fosters a positive international experience and, as appropriate, career development • Responds to employee, family and business needs • Easily understood and communicated • Facilitates knowledge transfer upon repatriation
Nine Phases | Distinct Yet Inter-related Phase 1 - Diagnostic review and data gathering Phase 2 - Development of IHR vision Phase 3 - Benchmarking/best practices analysis Phase 4 - Internal data gathering and feedback Phase 5 - Data analysis and presentation Phase 6 - Policy development Phase 7 - Implementation process Phase 8 - Communications strategy Phase 9 - Rollout
Phase 1 | Diagnostic Review and Data Gathering • Establishes the tone and knowledge base for subsequent actions, recommendations, and decisions • Review of existing policy and program elements - “what is” • One-on-one task force team interviews to gain insights-strengths and or weaknesses of existing program, as well as future direction • Task force collaboration • Development of project schedule and timeline
Phase 2 | Development of HR Vision • Development of a collaborative formal IHR vision statementthat reflects a Company’s overall approach to global assignments, while aligning with its overall corporate and human resource philosophies • Once agreed upon by “stakeholders”, it forms the framework within which all future aspects of the assignment program are developed
Phase 3 | Benchmarking/Best Practices Analysis • An appropriate and necessary exercise • Identifying and obtaining reliable metrics in vogue in market place • Identifying which (or type of) organizations to be aligned • Establishes relative competitive position amongst peer companies
Phase 4 | Internal Data Gathering/Feedback • Assignee Surveys are a key indicator in: • Determining effectiveness and receptiveness of specific program • Assignee’s understanding and acceptance of its objectives and processes • Whether or not it meets a perceived need on their part • Instrument for determining: • How important a particular provision is, or procedure/process was, or may be during the term of assignment • If assignees and/or eligible dependents are satisfied with the level of “benefit” or service delivery
Phase 5 | Data Analysis and Presentation • This phase synthesizes the findings of the earlier phases: • “Data” form stakeholders (one-on-one interviewing) • Understanding of the external market (benchmarking) • Feedback from current and former assignees and spouses (Assignee Survey) • Serves as the foundation for Global Assignment Policy Development
Phase 6 | Policy Development • Appropriate application of “data” by applying its positive elements and mitigating the negative ones • Serves as charter throughout Phase 6 • Identify new program elements • Eliminate gaps in existing program • Meet desired objectives • Apply sound tax planning techniques • Tools which can be employed to facilitate business case approval process include: • Policy summary and abbreviated version of policy documentation • Customized Cost Estimates - comparing actual or estimated costs associated with current program vis-à-vis projected costs under new policy provisions. Identifies any potential cost or savings of the proposed program provisions.
Phase 7 | Policy Implementation Process • A critical success factor in addition to policy design is the effectiveness of the implementation process employed and answers to a complex combination of issues: • When to implement? • Over what period of time? • Who and how to “grandfather”? • How to communicate? • How to integrate with other corporate departments (payroll, legal, finance, tax, etc.)? • Phase-in considerations and process? • “Buy out” considerations, etc.?
Phase 8 | Communications Strategy • Finally, success of new or revised program is significantly affected by how it is received/understood by those who are administering or affected by its components • Depending upon an organization’s typical approach in communicating with its employees, a combination of any of the following may be appropriate: • Development of written communication literature • Development of Company intranet communications • Formal presentations via video conferencing of program intent to management and/or employees • Design and production of employee handbooks
Phase 9 | Rollout • Commencement of Company rollout of policy, communications, implementation process in partnership with both internal and external HR consulting related resources • Opportunity for any potential 13th hour policy transition adjustments which may be determined to be appropriate during “Implementation Process” phase
