2016 KPMG Global Mobility Forum October 2016 Eden Roc Miami Beach Resort

Transcription

1 2016 KPMG Global Mobility Forum October 2016 Eden Roc Miami Beach Resort

2 Current events can your program handle it? October 2016

3 Agenda Introductions Session overview and objectives Current events workshop Practical experience and insights Close 3

4 Session description/objectives Global health epidemics. Political unrest. Economic turmoil. Will you be ready when external forces affect your mobility program? Whilst many policies have emergency clauses it can be the downstream impacts of evacuation on other aspects of the expatriate s life, (tax planning, where to move, schooling provision etc..) that prove more challenging. Our objectives: Review both the assignee and program perspectives when current events are affecting globally mobile employees Understand the potential downstream implications of decisions made 4

5 Introductions With you today: Alex Wayne Global Head of Mobility Rio Tinto Marc Burrows Global Head, KPMG Global Mobility Services 5

6 Current events scenario workshop Three current events scenarios. Each event to be introduced via a CNN/BBC breaking news style video clip. Alex will then conduct a short practical security briefing to the group. Each table will then, with a facilitator, discuss and workshop the mobility program and downstream impact of the relevant issue with one table primed to feedback to the wider group for each event. We will supply each table with pre-prepared assignee questions and required program manager response areas and markers. All tables will consider each event. A countdown (think TV series 24) will be set for each segment and projected on screen. In addition to the dramatic effect and keeping the session on schedule, it will emphasise that some current events require quick thinking. 6

7 Current events scenario workshop Health epidemic Long term political instability Immediate political instability Health epidemic (Zika) Outbreak of a virus at a global event (Non evacuation scenario) Long term political instability (Egypt/Libya/Brexit) The outbreak results in high profile political instability over an extended period of time (Non evacuation scenario) Immediate political instability (Turkey) As an alternative the outbreak results in immediate local political instability leading to a military coup requiring an evacuation Timing Breaking news 0.5 minute Breaking news clips Security briefing 1 minutes Alex Table workshop 13 minutes Led by KPMG facilitator with Marc/Alex Group debrief 5.5 minutes One group per topic 7

8 Health epidemic the assignee questions What is the level of risk to me and my family? What medical support will they be providing? If no, what precautions should I take? Will you give me an allowance to buy the required supplies? How is this being reported in the news and in social media? Can I get hold of the required provisions (e.g. mosquito screens, bug spray)? Is there a doctor locally that I can speak to about the risks? Is this funded by my employer? Who should I contact at my employer to understand their view? Do I need to purchase anything to comply and will these costs be expensed? I m pregnant and I m not comfortable staying on assignment. I must be an exception to your non evacuation policy. 8

9 Health epidemic - program manager response Support Discuss the outbreak with local health officials Understand the relevant local (and global) internal stakeholders that need to agree the company response Clarify if an emergency response committee is in existence and whether it has been convened previously Understand if this scenario been road tested previously and the resulting output. Review whether this is still relevant Agree what financial, medical or supply support will be provided to assignees Agree and understand any exceptions criteria Communications Work with corporate communications on messaging and method of communication to assignees. If there is already an existing communication plan that addresses each stakeholder group, then activate plan. Agree triggers for updated communications to be issued. Understand how communications are different to those for local employees Unintended Downstream Consequences Understand the taxability of any financial or medical support provided and agree how this will be funded If it is the employer, calculate the additional mobility costs and clarify if the business has factored these into cost estimates and made the relevant provisions Review if the response was in alignment with your internal and industry culture to understand if there is there any reputational damage to consider 9

10 Long term political instability assignee questions Are we safe? Who will keep me informed as the situation develops? I was being considered for promotion. Has that been cancelled? I m worried about the current climate and want to finish my assignment early. The devaluing currency is impacting my net pay. I need more regular adjustments to my split pay/allowances. I was thinking of localizing but that seems risky now. What is my employer s view on how this will impact the local and global business? I have a foreign passport, will I get deported? What about my family? I m on a host-based package, but still considered on an assignment. I can easily localize, will you support me getting permanent residency? I don t want to take up my assignment in this location anymore. 10

11 Long term political instability program manager Security & Safety Clarify if the safety of your employees is at risk and if any specific groups are being targeted in light of the current environment Communications A more regular and long term communication strategy will be required. Agree triggers for any updated communications Policy Agree the FX change required to trigger a net pay review Clarify if any additional immigration support will be provided and whether this will differ for different levels of seniority Tax & Payroll Review if there are restrictions around currencies/payroll/data that require duties be kept in country or whether it can be outsourced elsewhere Staffing Management Review if host operations are at risk Agree if any new assignments should be undertaken to the host location Clarify if existing assignees will be supported with localisation options Review if key duties performed in territory can be moved elsewhere Consult internally to validate who is lobbying industry/government regarding your needs and requirements Unintended Downstream Consequences Clarify if talent sourcing has been impacted and whether now more reliance on local labour Understand if any reputational impact internally and externally with government Consider impact on future projects in territory Try to understand the economic impact and what this may mean for your budgets and delivery model 11

12 Immediate political instability 3 hour evacuation - assignee questions How is this being reported in the news and in social media? Is there an interim safe house? Where are we being evacuated to? How can we contact friends and family to let them know that we are safe? How do I contact my employer to understand their view? It is too dangerous to go outside, is there a security team that can help get us to the airport? What about the medicines that my family need? Do we get an allowance for clothes and extra costs etc.? Do we need to evacuate? Is it all of us or just my family? We don t have our passports? Can we still leave the country? My youngest child is 3 months old. How do we get diapers, sterilization equipment etc..? When do we get to go back home? My children are at school? Are they safe? What luggage/possessions can we bring? What about my possessions that have been left behind? What about schooling for my children? 12

13 Immediate political instability program manager response Security & Safety Contact global and local security for guidance and/or emergency response committee if one exists Understand if you have an evacuation contract with a 3rd party vendor Communications Emergency response committee to activate emergency communication plans Understand how this is cascaded to assignees and their family Consider immigration relationships in the country you are evacuating to in order to navigate any immigration issues Process Consider provision of temporary accommodation for evacuees and family Consider provision of cash, communications ability, clothes, medicine and infant child support. Review whether emergency counselling support is required Staffing Management Consult with wider business to understand where the replacement hub should be based Consider impact on the local work force in the host country Review the impact of any evacuation on ongoing local operations Schedule call with HR, Talent, Recruiting and businesses on staffing Public & Labour Relations (Diversity) Consider the impact of any expat only evacuation on your in-country reputation Consider impact on any domestic unions 13

14 Immediate political instability program manager response Policy Agree if assignees continue to be paid the same Review when your COLA payments will change if assignees moved to another location Understand if you need to carry on paying host country housing costs if evacuated Agree whether in-country security/moving will pack up any household goods left in location. Understand whether the goods will be shipped to an interim third country location or brought to the home country Retain suitable accommodations for assignees and families in evacuation destination. Review country and accommodation rules for pets Agree if a one time lump-sum allowance or monthly evacuation allowance will be provided to help purchase required goods Technology Understand what hardware is required for assignees to perform in new location and what hardware remained in the evacuated location Tax & Payroll Understand if any ongoing tax payments are required whilst individuals are not back in their host location Review if any host-based salary portion needs to be moved to another payroll Clarify if assignee can access the funds in the temporary location 14

15 Immediate political instability program manager response Tax & Payroll Clarify if any payments made in the temporary location can be considered as fringe benefits or as corporate business expenses Update each assignee residency and cost projection Review if any payments are being processed outside of payroll and capture if required Understand if any monthly tax filings required during the period of evacuation Unintended Downstream Circumstances Schedule call with HR, Talent, Recruiting and businesses on staffing Consider impact of evacuation on ongoing commercial contracts Consider if assignees are required in the location or whether roles can be filled by local talent or outsourced If operations and assignees are continuing, consider adding hardship, danger, and other premiums Review whether future assignments are made unaccompanied Review any potential reputational damage to mobility team from how the evacuation was handled 15

16 Practical experience and insights Group discussion Alex Wayne to lead discussion on how to set up policies and processes to effectively deal with such events. Key themes to include: Personal experiences - Establishing key relationships and communication channels before such events is key so that agreed plans can be put into place quickly - Consider wider implications i.e. increased economic turmoil may result in decreased mobility budgets and headcount reductions. Who then does the work? Close Marc Burrows to close and to highlight takeaways 16

17 Key takeaways Plan for the un-planable! Know where your people are and how to produce the most accurate headcount. Respect the employee s emotional response. Remember locals are people too! Do not look at global mobility in a vacuum. Communicate, Communicate, Communicate!!! 17

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