Talisman Energy s Global Mobility Transformation

Transcription

1 Talisman Energy s Global Mobility Transformation

2 Talisman s Global Mobility Transformation Background Approach & Objectives Progress to date Challenges Always Moving Forward

3 Background

4 Talisman s Global Mobility Population As of January 1, 2009 Talisman had 156 Long Term expat deployments in 9 countries Canada 121 Outbound expats 18 Inbound expats Norway 2 Outbound expats 16 Inbound expats 3048 Employees Globally United Kingdom 34 Outbound expats 21 Inbound expats USA 0 Outbound expat 14 Inbound expats Algeria 0 Outbound expats 1 Inbound expat Vietnam 4 Outbound expats 19 Inbound expats Peru 0 Outbound expat 5 Inbound expats Malaysia 9 Outbound expats 45 Inbound expats Indonesia 0 Outbound expat 13 Inbound expats

5 Talisman s Global Mobility Population January 1, Long Term expat deployments in 9 countries June 1, Long Term expat deployments in 12 countries Canada 145 Outbound expats 26 Inbound expats Norway 6 Outbound expats 9 Inbound expats Poland 0 Outbound expats 3 Inbound expats United Kingdom 43 Outbound expats 8 Inbound expats USA 1 Outbound expat 48 Inbound expats Algeria 0 Outbound expats 1 Inbound expat Vietnam 2 Outbound expats 22 Inbound expats Colombia 0 Outbound expats 7 Inbound expats Peru 1 Outbound expat 6 Inbound expats Malaysia 5 Outbound expats 42 Inbound expats Australia 0 Outbound expats 9 Inbound expats 3235 Employees Globally Indonesia 1 Outbound expat 23 Inbound expats

6 Talisman s Global Mobility Population January 1, Long Term expat deployments in 9 countries June 1, Long Term expat deployments in 12 countries February 28, Long Term expat deployments in 16 countries Canada 168 Outbound expats 30 Inbound expats Luxembourg 0 Outbound expats 3 Inbound expats Norway 4 Outbound expats 4 Inbound expats Poland 0 Outbound expats 3 Inbound expats United Kingdom 52 Outbound expats 9 Inbound expats USA 2 Outbound expat 73 Inbound expats Algeria 0 Outbound expats 1 Inbound expat Vietnam 4 Outbound expats 22 Inbound expats Colombia 3 Outbound expats 8 Inbound expats Peru 1 Outbound expat 3 Inbound expats 3944 Employees Globally Sierra Leone 0 Outbound expats 1 Inbound expat Malaysia 7 Outbound expats 57 Inbound expats Singapore 0 Outbound expats 6 Inbound expats Indonesia 2 Outbound expat 10 Inbound expats PNG 2 Outbound expats 0 Inbound expats Australia 0 Outbound expats 15 Inbound expats

7 Talisman s Home / Host Assignment Combinations Home Location Aberdeen Bogota Brisbane Calgary Ho Chi Minh City Houston Jakarta Kuala Lumpur Lima Pittsburgh PNG Stavanger Host Location Aberdeen Algeria Brisbane Bogota Calgary Erbil Freetown (SL) Ho Chi Minh City Horseheads Houston Jakarta Kuala Lumpur Lima Luxembourg PNG Pittsburgh Singapore Stavanger Sydney Warsaw 47 Different Home/Host Combinations and 274 Assignees as of February, 2013

8 Corporate Structure

9 Why did Talisman undertake a transformation of Global Mobility? Between 2009 and 2013, Talisman entered into 7 new locations, nearly doubled the number of employees on international assignments, and encountered a number of new home-host country combinations for assignments At the same time, initiating a new assignment was more challenging due to the increased number of policies and exceptions as new policies were created for many of the new countries we entered A complex legal structure and corporate veil issues (secondments, LOAs, no standard approach, etc.) Talisman business and HR leaders reported difficulties identifying and mobilizing candidates for international assignments and retaining them while on assignment An internal audit conducted on Global Mobility in Q identified inadequate processes and controls and an annual spend that was feeling like it was out of control Assignees complained that the relocation experience was confusing and that there were too many contacts Some elements of Talisman s long term expatriate policy were above market practice when compared to oil and gas peers In 2011 Global Mobility was identified as a key strategic priority for Talisman

10 Approach & Objectives

11 Phase 1: Assess Phase 1: Assess Program, Redesign & Develop Implementation Plan Phase 2: Construct Future State Program Phase 3: Implement Future State Program Step 1: Current State Assessment Step 2: Design Future State Service Delivery Model Step 3: Design Future Policy and Governance Framework Step 4: Develop Change and Implementation Plan

12 Phase 1: Current State Assessment Key business requirements and design priorities emerged from the program assessment and were used to drive the redesign process. Interviews and workshops were conducted with HR stakeholders representing HR leadership (including the senior HR business partners from each business), the Global Mobility team and other process partner specialists. Additional interviews were conducted with functional stakeholders, external vendors and business representatives. Business Requirements Service Delivery Design Considerations Requirement Business Priority Current Effectiveness Change Impact Process Require clear, streamlined processes for assignee initiation, new country entry and exception management Business Partnering Employee Experience Speed Consistency x x x x = = = = People Vendor Policies Clearly define and communicate responsibilities of Global Mobility COE, HRBPs, functional business leaders and assignees Establish clear service level agreements with external service providers and clearly articulate exception management processes Redesign the suite of policies to meet differing business and assignment type needs, while minimizing the number of policies Controls Scalability & Adaptability Operational Cost x x x = = = Technology Governance Review technology solutions, integrate where possible and seek out opportunities to leverage vendor technologies Develop and implement a clear governance structure which outlines grants of authority for assignment approval, policy management and exception management

13 Phase 1: Outcome of Current State Assessment Objectives were defined : To enable fast, effective global deployment to support Talisman s business objectives, our mobility program must: Be adaptable to business needs and different talent markets Provide a positive employee experience regardless of the home and host countries involved Enable business managers and employees to focus their effort and attention on their core business rather than being distracted by logistics Be cost efficient and competitive with our oil and gas peers

14 Phase 2: Design Phase 1: Assess Program, Redesign & Develop Implementation Plan Phase 2: Construct Future State Program Phase 3: Implement Future State Program Step 1: Resource Requirements Identification Step 2: Service Delivery Model Process Design Step 3: Policy and Terms & Conditions Design Step 4: Develop Implementation and Assignee Transition Plans

15 Phase 2: Our comprehensive assessment led to eight key recommendations focusing on two core areas 1 Key changes Policy changes Consolidated policies from 19 current policies and practices down to 5 (Long term, Short term, Domestic/International Transfer, Commuter, Rotator) Benefits of implementing The policy changes will create more global consistency and equity for all assignees We firmly believe that these changes are fair to our people, competitive with our peers in the oil and gas market, and the right thing to do to progress Global Mobility to meet our current and future business needs Alignment of policy provisions to their true intent (e.g. tax as an equalize rather than incentive) Ability to comply to applicable laws and regulations Implications of not implementing Inconsistency across regions creates inequity among assignees Continued above market provisions Lack of alignment to Oil & Gas peers practices 2 Program administration New global mobility support team and processes New service delivery model Relocation services vendor Proposed program changes will help enhance our assignees mobility experience by improving the processes and support provided throughout their assignments Close linkage between assignment planning and career development Improved speed of deployment Effective technology platform for assignment planning, tracking and providing cost implications of mobility decisions Difficulty mobilizing employees across locations Expected savings not achieved: Approx. $4M per year, once all assignees transitioned Recommendations must support our overarching strategy of putting the right people in the right place...however, it is imperative that the implementation strategy minimizes risk

16 Phase 2: Global Mobility Service Delivery Model Global Mobility Service Delivery Model Implemented in 2012 Business Leader HR BP Global Mobility Center of Expertise (CoE) Regional Global Mobility Specialists Global Mobility Services Reps Relocation Services Vendors Key Responsibilities: Policy, Governance, Controls, Reporting Assignment Planning, Advisory, Policy Administration Policy Administration, Day-to-day support Delivery of relocation services The CoE focuses on governance and program improvement to improve policy and process controls; the centralized CoE also helps to achieve consistency Dedicated Regional Global Mobility Specialist roles partner with the Business to better plan and expedite deployments Mobility Services roles support a positive Employee Experience A global Relocation Services Provider will improve process controls as well as effectiveness and efficiency;

17 Phase 2: Our new policy framework simplifies mobility options globally Talisman s current 19 mobility policies and program highlights have been streamlined and realigned into a suite of 5 new Global Policies 19 Policies Expatriate Policy Cross-border Assignment Policy (Pittsburgh / Horseheads only) North American Expatriate Policy (all other locations ) Expatriate Transfers to Australia 5 Global Policies Long Term (1-4 yrs) Short Term International Assignment Short Term (2 mos. 1 yr) New Hire Global Transfer Policy (Tier 2 - Below M2) Employee Relocations New Hire Global Transfer Policy (Tier 1 - M2 and above) Local Plus Transfers to Australia New Hire Global Transfer Policy - Australia (Tier 1 - M2 and above) New Hire Global Transfer Policy - Australia (Tier 2 - Below M2) Domestic New Hire Transfer Policy (Tier 1) Domestic New Hire Transfer Policy (Tier 2) Relocation Program - New Grads Group Move Transfer Policy Domestic Transfer Policy - Australia Temporary Student Transfer Policy Permanent Transfer (One way move) Commuting Assignment Commuter Ongoing Rotational Terms & Conditions Rotator (Up to 3 yrs)

18 Phase 2: The new policies are aligned with consistent global principles These principles were developed to guide policy development and ensure that they meet the needs of our business Guiding Principle Alignment Long Term assignees will be financially aligned to home country, with a reasonable incentive for being on assignment Clarity Provisions are clear, simple to explain and easy for assignees to utilize Adaptability Provisions will be adaptable to local conditions and business needs Market Competitive Terms & Conditions will be competitive with our peers in the market Consistency Assignees will be treated consistently and equitably across all regions

19 Phase 2: Our new framework provides transparency by aligning policy provisions with their true intent Provision Category Core Compensation & Benefits Description Provisions including base remuneration and benefits Decision Owner Total Rewards and Business Adaptability Established by Total Rewards and decided by the business Equalizers Provisions designed to ensure employees are no better and no worse off than if they had not taken an assignment Global Mobility CoE Not Flexible Components are set by Global Mobility COE based on industry methodology and vary by location Enablers Provisions to help the employee relocate and focus on their role Business and Global Mobility Specialist Flexible Dial Up / Dial Down options available and determined by the Business with the Global Mobility Regional Specialist and HRBP Situational Provided as needed for the assignee s specific circumstances Incentives Provisions to incent employees to take an international assignment Global Mobility CoE Not Flexible Components are set by Global Mobility COE based on industry methodology and vary by location Situational Provided as needed for the assignee s specific circumstances

20 Phase 2: Common Transition Approaches Grandfather Current assignees continue to receive reimbursements and allowances as per the legacy policy terms and conditions for the duration of their current assignment. Assignment extensions would follow the new terms and conditions Pros Employee friendly for those who will be negatively impacted by new terms & conditions Assignee support (e.g. allowances & net compensation) remains the same until the current assignment concludes Cons Inconsistencies will be created between old and new policy expatriates High level of administration for ongoing payroll/support services Employee Satisfaction Phase-Out Allows current international assignees to maintain current allowances and support for a defined period of time. Support then decreases over time with a full transition to the new policy after the transition period expires. Buy Out Provides for a one-time lump sum payout to current assignees equal to the difference between the legacy and new terms and conditions for any provisions which negatively impact the assignment package Pros Employee friendly for those who will be negatively impacted by new terms & conditions Any reduction in assignee support is reduced over time to avoid an immediate disruption to assignee experience and quality of living Pros Employee friendly for those who will be negatively impacted by new policy Employee is kept neutral through receipt of a lump sum payment to offset reduction in allowances for the remaining assignment term Not applicable to positively impacted expatriates Cons Inconsistencies will be created between old and new policy expatriates High level of administration for a longer period of time during the phase-out schedule or transition period Cons Moderate levels of administration during short period of time Increases Company costs in the year of transition to the new terms and conditions Increased administrative cost to explain and illustrate that assignees will be equally compensated for reduced assignment support Administration Costs Immediate Transition All existing assignees would transition to the new policy terms and conditions on a specific date with no reimbursement provided to assignees adversely affected by the new terms and conditions Pros Maintains consistency with new expatriates Moderate level of administration during initial transition period More efficient implementation of technology and vendor processes Cons May positively or negatively impact current assignees High risk of attrition of current assignees due to reduction in net compensation Strong probability that this approach may not be legal in some jurisdictions

21 Phase 3: Implementation Phase 1: Assess Program, Redesign & Develop Implementation Plan Phase 2: Construct Future State Program Phase 3: Implement Future State Program Step 1: Implement Change and Communications Plan Step 2: Finalize Policy and Supporting Documents Step 3: Transition to Operations Step 4: Implement Service Delivery Model

22 Phase 3: A Robust Change and Communication Plan was Key Prepare: May- June Engage: July-Sept Go Live Period: Sep-Mar Persist: Post Go Live EVPs One-to-ones prior to OpCom meeting Key messages and QA s One-to-ones with focus on regional impacts and ways to address Participate in select country-level meetings One-to-ones with focus on regional roll out progress Executive-level handbook Key messages and QA s One-to-ones with focus on regional issues Business Unit Leaders One-to-ones with focus on country specific impacts Key messages and QA s One-to-ones to prepare for go live Key messages and QA s Preparedness communications/ calls for Go Live One-to-ones during Global Mobility roadshow visits Executive-level handbook Key messages and QA s One-to-ones with focus on country specific issues Current Expats Communication or FAQ to address concerns Communication or FAQ to address concerns One-to-ones with GM team to review impact statement Road shows with EVP participation Feedback touch point via Regional Specialists All Talisman Employees General communication and information on changes Potential lunch and learns in uniquely affected regions

23 Phase 3: Post Project Evaluation Lessons Learned Once the project was complete we conducted a lessons learned review with representatives of key project stakeholders. Summary of findings from this exercise include: Dedicated project manager is required due to the scope and size of the effort Defining policy principles upfront helps guide the design and communication Define & communicate the key business drivers Communicate early & often - transparency in communication is key Have GM SMEs involved in the change management and communication Complete a current state assessment of policy and practice early to adequately prepare for implementation Identify system/tool impacts early to allow for adequate time for updating and operationalizing Leverage global resources Maintain alignment with the business (allow for flexibility)

24 Progress to Date

25 Global Mobility Mandate Talisman recognizes that the effective use of international assignments serves to support both employee development and the organization s ability to excel within the global marketplace. The Global Mobility team is accountable for ensuring Global Mobility policies and programs are aligned with Talisman's needs and administered consistently throughout the organization, and provides full lifecycle support for Talisman employees on assignment, transferees or new hires

26 Global Mobility Program Objectives Talisman s Global Mobility function is responsible for: Global Mobility Policy Policy design based on industry benchmarking and regional input Policy advisor to Business Leaders, HRBPs and employees Governance and Compliance Cost controls for relocation costs Tax compliance in both the Home and Host locations Visa & Immigration compliance Consistent policy application globally Efficient & Effective Service Delivery Speed of deployment of mobile employees across regions Service delivery that meets regional needs Variable cost model (scalable) Consistent processes, tools and templates Consistent & Equitable Employee Experience Consistent service levels Consistent & equitable treatment of employees across regions Clear contacts & accountabilities Data and Metrics Capture, monitor and report on data globally Global metrics and survey capabilities

27 Policy progress to date Four policies have been fully implemented. 19 Policies Expatriate Policy Cross-border Assignment Policy (Pittsburgh / Horseheads only) North American Expatriate Policy (all other locations ) Expatriate Transfers to Australia Short Term International Assignment 5 Global Policies Long Term (1-4 yrs) Short Term (2 mos. 1 yr) Implementation Date April 2012 September 2013 New Hire Global Transfer Policy (Tier 2 - Below M2) Employee Relocations New Hire Global Transfer Policy (Tier 1 - M2 and above) Local Plus Transfers to Australia New Hire Global Transfer Policy - Australia (Tier 1 - M2 and above) New Hire Global Transfer Policy - Australia (Tier 2 - Below M2) Domestic New Hire Transfer Policy (Tier 1) Domestic New Hire Transfer Policy (Tier 2) Relocation Program - New Grads Group Move Transfer Policy Domestic Transfer Policy - Australia Temporary Student Transfer Policy Permanent Transfer (One way move) April 2014 Commuting Assignment Commuter Ongoing Future Rotational Terms & Conditions Rotator (Up to 3 yrs) April 2013

28 New Ways of Working Global Processes Assignment initiations Assignment approvals Assignment extensions Exceptions management Team Communications Sharepoint Discussion board Monthly calls 1:1 calls amongst Specialists GM Specialists attend HRBP & Business meetings Tools & Templates Exception request template & exception log Business case form LTA cost projection tool (PWC) Assignment Letter Templates Flag sheets of allowances & site specifics (by country)

29 Resources available to support the new policy and programs HR Guidebook Long Term Assignments Employee Handbook Long Term Assignments Global Mobility Selection Guide Global Mobility Services Representative Assignment Cost Estimate Global Mobility Business Case Tool Global Mobility Specialist Assignment Letter Relocation Services Vendor Estimate of Assignment Allowances

30 Challenges

31 Transformation Challenges Change in business strategy with increased focus on regional autonomy Business appetite and understanding of mobility s role (value add) Role clarity GM vs. HR and Host vs. Home Policy implementation took a lot longer than anticipated Systems and data Exception management JVCos (new operating model) High amount of organizational change and impact on home sponsorship Country exits

32 Overlap of responsibilities leads to confusion for both the assignee and Global Mobility Pre-Planning Pre-Assignment On-Assignment Re-Assignment Feed mobility data into talent review cycle Facilitate mobility planning discussions with business leader Confirm employee s interest in relocation HR Business Partner Global Mobility Regional Specialist Coordinate with business on next role and succession plans Complete assignment business case and advise Business Leader and HRBP of applicable assignment types Discuss initial questions / concerns with employee Direct employee support Indirect employee support Develop assignment package and socialize with approving authority Finalize assignee package with employee Contact employee and conduct pre-departure orientation Initiate relocation & vendor services Support visa application process Key Assumptions -Employee support is provided by the Host Global Mobility Regional Specialist Manage escalated exception requests Conduct preassignment tax briefing Maintain employee data record management Coordinate relocation services Generate assignment balance sheets Prepare program metric and strategic reporting analysis Conduct assignee onboarding Global Mobility Services Vendor Network Manage redeployment / reassignment activities six months prior to end date Complete internal accounting and cost allocations Complete annual compliance returns Collection of assignment costs Administer expense reimbursements Transfer knowledge of assignee profiles to new host Global Mobility Regional Specialist for assignees that are redeploying Initiate end of assignment / repatriation activities Conduct postassignment tax briefing

33 Keep Moving Forward

34 The not so distant future vision for Talisman GM: 5 Global Policies Talent Objectives Long Term (1-4 yrs) Short Term (2 mos. 1 yr) Permanent Transfer (One way move) Commuter Ongoing All assignees transferred to new policy terms and conditions (no more grandfathering) Regional talent management strategies for assignee population Management of assignment end dates through integration of career planning and assignment planning Increased focus on deploying assignees for talent development Be adaptable to business needs and different talent markets Provide a positive employee experience regardless of the home and host countries involved Enable business managers and employees to focus their effort and attention on their core business rather than being distracted by logistics Be cost efficient and competitive with our oil and gas peers Rotator (Up to 3 yrs)

35 Relocation Services Management Global Approach (desired future state) Home Location Host Location Aberdeen Bogota Brisbane Calgary Ho Chi Minh City Houston Jakarta Kuala Lumpur Peru PNG Pittsburgh Stavanger Americas Asia Pacific Two ways to manage: 1. Different vendors regionally managed 2. One global vendor regionally located with global oversight Aberdeen Algeria Brisbane Bogota Calgary Erbil Freetown (SL) Ghana Ho Chi Minh City Horseheads Houston Jakarta Kuala Lumpur Lima Luxembourg PNG Pittsburgh Singapore Stavanger Sydney Warsaw

36 Changing the Way we Work New HRMS system implementation helps to bring us full circle Still considering a full expat management software to eliminate the manual tracking we still need to do

37 Questions?