Creating the most value from an international assignment October 2013

Transcription

1 Creating the most value from an international assignment October 2013

2 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Ernst & Young LLP is a clientserving member of Ernst & Young Global Limited in the US. This presentation is 2013 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or distribution of this form or any of the material herein is prohibited and is in violation of US and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party. The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP or its professionals. Page 2

3 Objectives Conduct a panel discussion with audience participation discussing key elements and questions that need to be addressed in creating and delivering the most value from an international assignment. Page 3

4 Managing your global talent demand and supply The right person, with the right skills, in the right job, in the right market, doing the right things, adds significant value to the business and individual. Demand side Supply side Workforce and people planning Results in Positional skills and competencies Role prioritization Years of service/tenure Attrition/turnover Key experience Retirement Individual performance Acquisition/divesture Business forecast (e.g., new markets) Education and qualifications Diversity Ever-changing needs Candidate preferences Organization skill shortages Geography the right people with the rights skills in the right position. Page 4

5 EY s point of view integrating talent management and mobility Our POV is very simple. Talent management and mobility help execute business strategy. To effectively globalize, both must be aligned to business strategy and be well integrated. The right person, with the right skills, in the right job, in the right market, doing the right things, adds significant value to the business and individual. Business strategy Operating model Organization structure People plan Workforce strategy and analytics Talent management and mobility integration Employee life cycle Business results/ performance metrics Change management Culture Communications Alignment to business strategy Integration of talent management and mobility 20.5% greater return when companies align their vision, values and strategies with their management of people 21.09% Alignment 20.5% increase 17.50% Integration of global mobility programs into talent management is a key component that drives talent management s ROI. *EY's 2010 Global Talent Management Survey 22.62% Integration 38% increase 16.39% 38% greater return when Integrating the key components of talent management programs to form a coherent whole Page 5

6 To determine the real value of global mobility, all costs and benefits drivers need to be understood and accounted for Potential benefit drivers/measures Attracting talent Attractiveness of program on the labor market; expenditure against peer group Maintain talent Staff retention against internal and external peer group Knowledge transfer Handover period Performance Impact of placement on revenue, sales or cost reduction Global network New projects initiated, longterm benefits Knowledge transfer Handover rate to local resource, subsequent performance Maintain talent Retention rate against peer group Best practice Increase in sanmple country working against peer group Future leaders Career path against peer group, outside hires at top level Preplacement During placement Post-placement Relocation Visa, housing and relocation costs Knowledge transfer Double staffing during handover period Staff costs Staff salary, bonuses, benefits and subsistence against local peer group Maintain talent Staff retention of local staff following placement against peer group Admin. costs Tax and other support costs against local Relocation Relocation costs Potential cost drivers/measures Indirect costs: costs incurred due to unintended harm: Disruption of normal services at placement site due to handover Loss of local talent due to restriction in advancement opportunities Loss of talent due to no suitable role being available on return Costs Indirect costs Benefits Financial benefits Financial benefits: benefits that are directly linked to financial performance: Improved performance at placement sites during and post-placement Improved global performance through global collaboration and best practice Direct costs: financial expenditure directly related to the placement, which include: Relocation costs Staff salary, benefits and subsistence Administration costs Direct costs Non-financial benefits Non-financial benefits: benefits giving a competitive advantage: Ability to attract and maintain talent Ability to build future global leaders within the organization Page 6

7 Global talent analytics Understanding our investment in mobile talent Secondary questions Analysis Person Place Time Cost Inter-geographic unit (GU) vs. intrageographic unit mobility streams: company s assignment travel streams between GU s vs. the travel streams within the same GU Data available EY How are we distributing our international assignees? Career level (job grade) distribution of company s top 3 demand and top 3 supply countries (development centers vs. other) EY Primary question Number of assignees by demand country (taxable vs. non-taxable) EY Do we understand our investment in mobile talent? The impact of assignments on company employee career progression rate: comparison with non-assigned company employees over time Company How are we managing our assignment program? Assignment type (short-term, long-term, local) by job grade The distribution of international assignees that repeat an assignment, and by assignment type EY The relationship between assignment length and the assignee's job grade Page 7

8 Global talent analytics Aligning our investment with strategy Secondary questions How are our assignments being used in emerging markets? Analysis Person Place Time Cost Comparison of demand countries and top company revenue growth countries The connection between length of assignment and market maturity: comparison of average assignment length in emerging markets vs. all other countries Data available Post assignment attrition rate EY Primary question Are we aligning our investment with strategy? How are we managing international assignees during assignment and post-assignment? Company employee post-assignment retention rate: compared to retention rates for non-assignee peers. (effectiveness of repatriation efforts) Terminations by career level (job grade) separated by company s supply and demand countries: detail of all terminations by job grade EY How are we managing performance and the career of international assignees? Expatriate outcome/mobile employee business objective completion: graph depicting the number of mobile employees that are meeting business objectives Assignment type by country: chart evaluating if company is using the right assignment type for the right benefits with the right profile of assignee EY Does our deployment/growth strategy align with business objectives? The number of assignees as a percentage of total country population in company demand countries over time The analysis of demand countries expected growth: Detail and forecasting of 1) future growth in the number of assignments by country and 2) the expected costs Company Page 8

9 Global talent analytics Optimizing our spending on mobile talent Analysis Person Place Time Cost Data available Primary question Do we optimize our spending on mobile talent? Secondary questions How much are we spending on international assignment and what are we spending it on? What is the return on investment of our assignment program? Company global mobility locations and costs breakdown: graph detailing (by company country combination) the breakout of assignment cost by 1) tax and social security, 2) one time costs, 3) one time allowances, 4) other recurring costs, 5) education, 6) housing and car, 7) mobility premiums, 8) cost of living and hardship allowance, 9) variable pay and 10) base salary; also shows equivalent cost of local employee Company global mobility summary of overall assignment costs: graph detailing the breakout of assignment cost by 1) tax and social security, 2) one time costs, 3) one time allowances, 4) other recurring costs, 5) education, 6) housing and car, 7) mobility premiums, 8) cost of living and hardship allowance, 9) variable pay and 10) base salary; also shows equivalent cost of local employee The breakdown of attrition cost based on the former employee s career level (job grade): (# of terminated employees by job grade / total # of assignees ) x total cost of expatriate population for the year EY Company EY Expatriate cost based on assignment type What will we be spending on future international assignments? The breakdown of total and projected expatriate costs per year The breakdown of total and projected expatriate costs per year by demand country Company Page 9

10 Panel discussion and questions Page 10