Mobility Survey 2013 PwC Sweden

Transcription

1 Mobility Survey 2013 PwC Sweden Measuring the trends within global mobility.

2 2013 PricewaterhouseCoopers i Sverige AB. Whole or partial duplication of the contents of this document is forbidden in accordance with the Swedish Act on Copyright in Literary and Artistic Works (1960:729). This prohibition applies to every form of duplication by printing, copying, etc.

3 Foreword In 2009 PwC in Sweden launched its first survey on long-term international assignments. We are now launching our second survey on the subject. The findings give us an understanding of current trends and how companies are addressing the challenges of mobility in a changing world. Over the next decade the global competitive landscape will change dramatically. We are living in a world that is changing at warp speed. For example, the third biggest country by population is today Facebook (if Facebook were a country). The new landscape affects how companies do business and how they compete in this new environment. There are new markets to enter, new demands for new products and new opportunities. Business is driven by companies and the people who work in them. PwC s global research shows that 94 percent of new graduates expect to work across more geographic borders than their parents, reinforcing the trend that international assignments will continue to be a significant but necessary cost to organizations. At first glance there is no mismatch between the new global workplace and the willingness of new generations to work abroad, yet we know that the typical cost for an assignee is four to seven times that of hiring a local professional. There are some questions that we need to ask ourselves: Is the investment needed for every assignee, and is it justified? Does the company always get a good return on its investment? Historically, we have designed and implemented international assignment strategies and policies that align our business objectives to the overall business strategy. We have typically formulated long-term and short-term policies. Our survey shows clearly that in order to justify the cost and get a return on their investment, companies need to get better at integrating talent management in the assignee lifecycle and step up their efforts on repatriation. In addition, we may now have reached the point where it is appropriate to devise a policy framework giving the company flexibility within certain agreed parameters as part of a move towards differentiating the assignment package, career deal and global mobility services offered to the assignees based on the planned value of the assignment. Anders Assarson Partner, PwC, Human Resource Services PwC Sweden Mobility Survey 3

4 International assignment trends Mobility Survey 2013 Background During November and December 2012 PwC in Sweden conducted a comprehensive survey on how companies in the Swedish market manage employees on international assignments. The survey s primary focus was on long-term international assignments (assignments exceeding one year) but it also addressed mobility questions in general. A total of 57 companies participated in the survey and a majority of the largest Swedish companies are represented. The survey, which consisted of 85 questions, was conducted using a web-based tool and through personal interviews. How many Long-Term expatriates does your company (i.e.group of companies) have during the calender year 2012? (Single choice) PwC Sweden Mobility Survey 4

5 Please mark your most important regions for Long-Term expatriates (in- and outbounds). (Multi choice) Western Europe 38 Central/Eastern Europe 10 North America 21 Asia 41 Africa/Middle East 10 Other PwC Sweden Mobility Survey 5

6 Summary The results from the survey show that the importance of working abroad has increased since a similar survey was conducted in 2009, and the participating companies anticipate a continued increase in the coming years. At a majority of the companies international assignments are today a priority or even a crucial issue and international assignments are by most of the participants viewed as important for the employee s career and the development of the company s talent. The survey also shows that the trend in mobility is for traditional long-term assignments to be gradually replaced or complemented with other types of international assignments (e.g. local employment, local plus solutions, short-term or commuting assignments). Furthermore, the survey shows that companies are increasingly introducing policies and guidelines to regulate these new forms of assignments. The increased use of other types of international assignments is justified by cost considerations or a desire for increased flexibility. In addition to your standard Long-Term international assignment policy, does your company also have written separate policies/guidlines which cover any of the following types of international moves or categories? (Multi choice) Short-Term assignments 45 Business trips 28 Commuter assignments 19 Trainees/ Developmental assignments 14 Top Management/ Executives assignments 7 Other PwC Sweden Mobility Survey 6

7 Estimation of costs for an international assignment is often performed but rarely followed up by the companies when an assignment is completed. An awareness of and focus on costs is still important for the mobility of employees. Cost estimates for international assignments are often produced but rarely followed up by the companies upon completion of the assignment. Issues concerning family and accompanying family members remain important. The survey shows that individual circumstances, such as family situation, are relatively often a problem when recruiting a suitable candidate for an international assignment. The survey also shows that only a few companies follow up international assignments over a longer period than one year after the employee s return. A majority of the participating companies believe it is important to have a better link between mobility and talent management. However, the survey shows that there is often a lack of general processes to ensure this link. PwC Sweden Mobility Survey 7

8 70% state that mobility is a prioritized or a vital question for the development of the company 70% state that the importance of mobility has increased slightly or a lot during the last three years 40% state that it is not difficult to find candidates for long term assignments Mobility development Policy benchmark In recent years global mobility has increased significantly and a continued increase is predicted. 70 percent of the participating companies consider mobility to be a priority or crucial issue for the company s continued development 90 percent believe that having been on an international assignment is good for an individual s career development. 70 percent say that the importance of mobility at the company has increased over the past three years. 75 percent of the participating companies have a global policy for handling expatriates on long-term assignments and about 50 percent updated their policies in 2011 or At approximately two out of three companies is employment in the home country a principal rule and among a similar share the principal rule is to remain in the home country s social security system. About 90 percent of the participating companies have a home country pension plan. PwC Sweden Mobility Survey 8

9 Please describe the employment conditions for an expatriate on a Long-Term assignment. (Multi choice) Seconded (i.e. employed by Home Company) 32 Local contract (i.e. employed by Host Company) 21 Dual contracts (i.e. employed by both Home and Host Company) 18 Re-entry guarantee Home Company 29 Other Which of the following approaches most often describes your international remuneration policy? (Single choice) Headquarter based system 9 Home country based system 32 Better of home or host 5 Expatriate local market rate 5 Local market rate 2 Other Which of the following are included in your company s compensation package for Long-Term expatriates? (Multi choice) Salary 57 Bonus 42 Incentive premium for accepting the assignment 25 Cost of living allowance/ adjustment, if any 51 Hard ship allowance/ adjustment, if any 38 Relocation/ repatriation allowance PwC Sweden Mobility Survey 9

10 Costs 80 percent of the participating companies say that cost is an essential factor determining whether the assignment will go ahead or not. 40 percent answer that cost reduction is important. Three out of four participating companies produce a cost estimate before an international assignment, and of these 30 percent follow up the estimate. 75% 70% make an estimate of costs of the international assignment of them who make an estimate of costs do not follow it up Family/Accompanying family The survey shows that long-term assignments where a spouse or other family members remain in the home country have not increased over the past three years. Among the reasons stated is a reluctance to split up the family. Other forms of international assignment are therefore chosen, such as short term- or commuting assignments. Does your company provide the following for Long-Term expatriates accompanying spouses? (Multi choice) Spouse allowance 17 Spouse pension 11 None of the participating companies provide specific benefits to a spouse or other family members remaining in the home country. Work permit assistance Education 5 22 The survey points to a wide range of different benefits provided for accompanying family members. The most common is to offer support on obtaining a work permit (more than 40 percent) and providing a spouse allowance (30 percent). Job search assistance Other PwC Sweden Mobility Survey 10

11 Repatriation/Talent Management Approximately half of the participating companies begin the process of repatriation six months or more prior to the scheduled end of the assignment. 10 percent have a process of repatriation lasting longer than three months after completion of the assignment. 15 percent follow up returning expatriates for more than one year after their return. Almost all participating companies indicate that international assignments are important for the development of the company s talent. 50 percent perform an analysis of performance ratings prior to, during and after the international assignment while 30 percent perform no analysis at all. 50 percent of the responding companies say there is no contact between talent management and the expatriate during the assignment and another 20 percent do not know if any contact takes place. 65 percent find it important to establish a clearer link between mobility and talent management. Half of the participating companies say that talent management is part of the selection process prior to an international assignment. PwC Sweden Mobility Survey 11

12 Repatriation/Talent Management 90% More than 90% say that having been on an international assignment is good for the career 50% start the repatriation process six months or more before the end of the international assignment 10% have a repatriation process that continues for more than three months after the return home Repatriation/Talent Management Repatriation/Talent Management 15% follow up the expatriates more than one year after the return home, e.g. if they leave the company 95% state that mobility is important for the development of the company s talents, of which 40% think that it is very important 20% state that it is not difficult to find suitable positions for employees returning from international assignments 20% state that it is generally difficult 60% state that it depends on the individual circumstances 50% state that Talent Management is involved in the selection process in connection with international assignments 50% analyze performance ratings before, during and after the international assignment 90% state that regular performance management process is applicable during an international assignment 30% make no analysis at all Repatriation/Talent Management 65% think that it is important to have a better connection between mobility and talent management within the company for future mobility 30% have contact between the expatriate and talent management during the international assignment 50% no such contact 20% of the companies do not know PwC Sweden Mobility Survey 12

13 Future issues Two out of three participating companies believe that mobility in general will increase at the company over the next few years. The region where international assignments are expected to increase the most is Asia. In response to the question what the biggest challenge regarding future mobility is, several companies pointed to legal obstacles and complex regulations on tax, migration, pensions and social security. Other companies said the biggest challenges regarding future mobility are to adapt to and meet existing and future expectations, get more women to go on international assignments and meet additional and more complex business needs. Several companies replied that one major challenge is to find the appropriate talent for the assignment and an appropriate position for the employee when he or she returns to the home country. A few companies mentioned that financial uncertainty affected the number of expatriates while some emphasized that the primary focus was not cost reduction but cost awareness. The survey results also show that the key to success regarding mobility in the future lies in solutions that are more flexible, as regards the form of assignments as well as compensation models and in terms of obtaining the best possible return on an international assignment return on investment. PwC Sweden Mobility Survey 13

14 In which regions, if any, do you anticipate an increase in your Long-Term expatriate population? (Multi choice) Western Europe 13 Central/Eastern Europe 6 North America 9 Asia 32 Africa/Middle East 13 Other In which regions, if any, do you anticipate a decrease in your Long-Term expatriate population? (Multi choice) Western Europe 18 Central/Eastern Europe 5 North America 10 Asia 4 Africa/Middle East 3 Other PwC Sweden Mobility Survey 14

15 What are the biggest challenges with the future mobility of individuals in your company? Some of the answers in the survey "Pension issues especially for expatriates staying in several different locations during their career" To satisfy more and more complex needs of the business Finding the right talent, meeting expectations both during and after the work abroad To make it cost efficient and at the same time attractive for the expat To meet legal requirements, e.g. in BRIC-countries Getting Talent Management involved PwC Sweden Mobility Survey 15

16 If you have any questions regarding this survey or if you want to discuss the matter further with our experts, please contact: Catarina Böös Henrik Lundh Risinggård Anders Assarson Our thanks We would like to thank all of the companies that participated in our Mobility Survey 2013 and welcome you to attend our upcoming surveys. We regularly conduct surveys on mobility in Sweden and internationally in order to measure development and analyze trends. What do other companies do? is one of the most common questions we get, and our surveys enable us to provide answers to what is market and industry practice. PwC Sweden is the market leader within auditing, accounting, tax and advisory services, with 3,800 staff members and 130 offices spread across the country. Using our experience and unique business knowledge, we enhance value for our 66,000 clients, who are comprised of global companies, major Swedish companies and organizations, smaller and medium-sized companies, primarily local, and the public sector. PwC Sweden is a separate and independent legal entity. We are the Swedish member firm of the PwC global network. Close to 180,000 people in 158 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.