CASE STUDY: SUCCESS WITH EXPATS AT LANXESS 12 APRIL Stefan Arnoldt LANXESS Deutschland GmbH Leverkusen (Cologne)
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1 CASE STUDY: SUCCESS WITH EXPATS AT LANXESS 12 APRIL 2013 Stefan Arnoldt LANXESS Deutschland GmbH Leverkusen (Cologne)
2 COMPANY PROFILE
3 Employees worldwide 2012 Sales EUR bn 2011 Sales EUR bn Portfolio approx. 17,200 in 31 countries Performance Polymers Advanced Intermediates Performance Chemicals Global scope 48 production sites worldwide LANXESS is one of Germany s most important providers of polymers and chemicals Facts and Figures
4 Broad product range comprising premium chemicals, rubber and polymers High-quality intermediates Active ingredients (custom manufacturing) and intermediates for pharmaceuticals and crop protection products Material protection products Finishing agents for leather Ion exchange resins, especially for water treatment Inorganic pigments for coloring concrete and surface coatings Dyes and inorganic and organic pigments for coloring plastics Plastics additives such as flame retardants and plasticizers Solid rubber and rubber chemicals for the rubber and tire industry Plastics for automotive, electrical appliances, furniture, sports and leisure Perlon wire for technical applications Product Portfolio
5 Global Presence Sites and Offices
6 LANXESS Global Expat Population Long-Term Assignments as of 28 Feb 2013 AMERICAS outbound 43 inbound 33 transfers 76 EMEA outbound 144 inbound 74 transfers 219 WORLD Long-Term Assignmt. TOTAL 205 APAC outbound 18 inbound 98 transfers 116
7 LANXESS International Assignment Policy Review Board Initiative Diversity & Inclusion set up in 2011; inter disciplinary group project D&I focus: Gender / Age, Seniority/ NATIONALITY Define and implement internal conditions to enhance talent development Expatriates identified as a very sensitive target group
8 Expatriates & HR Expat Management establishing network to: Shorten the integration phase Increase feeling of inclusion (esp. for family members, partners) Improve working environment/conditions, motivation Establish platform for discussions and exchanging ideas, knowledge, experiences Initiatives Expat Lunch Global Expat Mailing List Share Expat Portal
9 AGENDA LANXESS International Policy Review NEW: Dual-Career Allowance Diversity & Inclusion International job posting of expat positions XPat Guidance Program LANXESS Mentoring program for Expats Expat Lunch Networking, Events, Information, Inclusion
10 LANXESS International Policy Review NEW: Dual-Career Allowance
11
12 Dual-Career Allowance (DCA) for Accompanying Spouse/Partner Support for married or unmarried couple Spousal Assistance Lump sum payment for training purposes Max. EUR 6,000 net Training & development Application training Dual-Career Allowance Payments for up to 2 years when partner sacrifices job DCA calculation based on 50% of previous annual gross base salary Max. EUR 50,000 p.a. Deduct hypo tax & social security Company provides more service & support to find a new job Internal / external networks Local job market Outplacement provider
13 Dual-Career Allowance: Qualifying Conditions Assignee s spouse/partner has been working for > 12 months as of the date when employee is offered an international assignment Spouse/partner will quit current job and accompany assignee on long-term international assignment
14 Dual-Career Allowance: Terms EUR 6,000 reimbursement of spouse assistance will be entitled when the DCA is provided In general, payment granted for 2 years DCA continues even when spouse/partner gets job in host country within two years after assignment start date The payment stops if, within 2 years: spouse/partner returns to home country or assignee or spouse/partner is repatriated
15 Dual-Career Allowance: Calculation Annual Calculation base refers to annual gross base salary including guaranteed monthly cash allowances Other variable allowances, bonus, LTI, and benefits are not included into the calculation basis DCA will be paid for two years in home or host currency The Annual Calculation base is fixed for the two-year period. No hypothetical merit increase, promotion, or inflation increase of spouse/partner income is considered
16 Diversity & Inclusion International Job Posting of Expat Positions
17
18 All expat positions subject to a group-wide posting/ selection process Objectives Introduce global common expat selection process standard Foster best-fit staffing using group-wide resources Integrate expatriation into HR development Foster int l careers, make LANXESS a more attractive employer 3 Scenarios Measures BU Head notifies Global BP of 1. Position needs to be filled with an expat for knowledge transfer 2. Position is a development opportunity for a specific employee 3. Position to be filled with an international candidate so position may become an expat position position to be filled with an Expat and gives reasoning according to the 3 scenarios Postings: Xnet Global (Intranet) International Career: International Career: This measure addresses all existing employees worldwide with a particular interest in having an international career (possibly cross-bu/gf) within LANXESS
19 International Career: Job Posting for Expat Positions Initial situation: Three scenarios BU/GF decides Position needs to be filled by an Expat for knowledge transfer Provide a development opportunity to an employee (career development) or Position can be filled by an international candidate so that the position may either 1. become an expat position or 2. stay a local position placed with an international candidate under local conditions
20 BU/GF Human Resources LXS Process Description I Testing Phase: Posting an expat position Internationally : Activity : Question / Decision : Participant : Milestone : Reference No. Applicants Place expat position on Xnet Global** Head of HR Decide on placement of position Yes Country HR / Expat Mgt. No Senior BU/GF Global Business Partner BU/GF Global Business Partner 2 Verify Expat position 3 Upload Expat position to Global Xnet & inform Country HR Head of BU/GF 1 Create new or replace existing Expat position * Place position locally or continue with placement of desired candidate * For the international posting of Local positions, refer to the process for Local positions. ** Country employee representatives to be informed according to local legal regulations.
21 BU/GF Human Resources LXS Process Description II Testing Phase: Identifying the right candidate : Activity : Question / Decision : Participant : Milestone : Reference No. Applicants 4 Apply for Expat postition Rejection of candidate Fill position with candidate Head of HR Yes Final decision on selected candidate No Country HR / Expat Mgt. 6 Reject application 8 Prepare Expatriation Senior BU/GF Global Business Partner No BU/GF Global Business Partner 5 Check applications Present candidates to BU/GF Head Head of BU/GF Yes 7 Check preselected candidates No Decide if candidate fits the position Yes
22 XPat Guidance Program LANXESS Mentoring Program for Expats
23 XPat Guidance Program The LANXESS Mentoring program for expats Purpose Support with settling-in in host country ( Navigator ) Support in career development ( Career Mentor ) Selection / Matching Selection of Career Mentor by HR together with the BU-/GF-Head Before Start of Mentoring, Career Mentor shall be briefed and trained Mentor and Mentee shall meet and then decide whether to continue Navigator shall be selected by Host HR together with Host line manager Duration Career Mentor: starts with identification of assignee till 6 months after repatriation Navigator: 6 months Meetings Career Mentor at least once per year Navigator on need basis
24 XPat Guidance Program The LANXESS Mentoring program for expats Career Mentor -Home Mentor- Navigator -Host Mentor- Information on changes/developments in home country Support in career matters, career planning Guidance, advice with assignment-related challenges Representation of the assignee in home country Repatriation support Profile: Manager on a higher level than assignee International experience; profound knowledge of LANXESS with good network Settling-in support in the host country culture/company Support in solving intercultural challenges Where-to-find-what Profile: Colleague on same level International experience is helpful; min. requirement: interest in other cultures
25 Expat Lunch Networking, Events, Information, Inclusion
26 Expat Lunch Gathering Expats and Families Expat Lunch: quarterly lunch event for Expatriate Inbounds Presentations (examples): New in the city doctors & hospitals, emergency center, education, language schools, soccer center, ice skating, golf, climbing, cycling, dancing, gyms, etc How to buy a train ticket how to use the ticket machine Tips for driving in Germany how to get a German driver s license, accidents, local points of interest, speed limits, etc Sunday Outdoor Castle Dyck Chinafest Cologne Hockey Game LANXESS arena
27 Thank you for your attention!
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