2014 Mercer LLC. MERCER WEBCAST Developmental Moves, Intra-regional Assignments, and Global Nomads 23 SEPTEMBER 2014

Transcription

1 Developmental Moves, Intra-regional Assignments, and Global Nomads 23 SEPTEMBER 2014 Lorraine Jennings, Melbourne James R. O Neill, Chicago

2 What we will cover today 1: Developmental Moves 2: Intra-regional Assignments 3: Global Nomads Latest trends Management and policy Compensation approaches Latest trends Management and policy Compensation approaches Latest trends Management and policy Compensation approaches Questions and Answers 1

3 2013 Alternative Int l Assignments Policies and Practices (AIA) Survey Built on Mercer s 2012 Worldwide Survey of International Assignment Policies and Practices (WIAPP). In-depth policies and practices information for six alternative international assignment types: Local Plus Developmental/training Short-term Commuter Intra-regional Global nomad 322 participants - 43% Americas - 32% Europe - 23% Asia-Pacific - 2% Other Participation remains open: 2

4 Prevalence of assignment types Do you currently have the following assignment types? (Worldwide) 78% have short-term assignments 61% have international assignees on a Local Plus package 57% have intra-regional assignments 50% have developmental/training assignments 45% have commuters 36% have global nomads 3

5 Part One DEVELOPMENTAL MOVES

6 Developmental assignments Definition A developmental assignment is an assignment to another country for either early-career employees or assignments in which the employee s development is a stated objective. Assignees on such assignments may or may not be accompanied by their family. 5

7 Why do companies use developmental assignments? Top reasons (Worldwide) 75% To develop managers careers 70% To transfer skills 67% To complete specific projects 62% To develop non-managers careers 58% To fulfill temporary skill shortages at the host location 6

8 Developmental assignments Trends How did the number of your developmental assignments change in the past two years ( )? How do you expect the number of your developmental assignments to change in the next two years ( )? 8% 6% 8% 7% 5% 2% 11% 6% 38% 43% 58% 45% 34% 35% 34% 34% 54% 52% 62% 64% % Mercer LLC 33% 55% 61% Americas Europe Asia-Pacific Worldwide Increased Remained stable Decreased Americas Europe Asia-Pacific Worldwide Increase Remain stable Decrease 7

9 Developmental assignments What are your main challenges in managing developmental assignments? Managing exceptions Cost containment Controlling assignment length Immigration compliance Ensuring HR department's involvement Lack of central management (being able to coordinate the overall process) 16% 13% Adhering to policies 24% Finding suitable accomodations Tax compliance Tracking informal arrangements 18% 18% 21% 26% 26% 55% 55% Asia-Pacific Worldwide 8

10 Developmental assignments How long is your typical developmental assignment (average in months)? Americas Europe Asia- Pacific Worldwide Minimum Average Maximum

11 Developmental assignments What types of packages would be available options for early career, high potential employees on an international assignment? Worldwide 44% 41% 10% 2%3% Asia-Pacific 57% 31% 8% 5% A modified version of the "full global" or typical long-term assignment package Standard "full global" or typical long-term assignment package, with no modifications Some other package Local approach Short-term policy 10

12 Developmental assignments Do you have a formal developmental/training assignment policy? 46% 51% 28% 26% 26% 23% Yes No, but we are developing or planning to develop one No, we handle case by case Worldwide Asia-Pacific 11

13 Developmental assignments Which elements are the same/reduced/eliminated as compared to a typical long-term or full global expatriate package? (Asia-Pacific) 81% 72% 61% 54% 47% 40% 37% 42% 29% Class of airfare Tax Treatment Shipping Housing allowance Local Transportation Same Reduced Eliminated COL/G&S Hardship Dependent education Mobility Premium 12

14 Part Three INTRA-REGIONAL ASSIGNMENTS

15 Intra-regional assignments Definition An intra-regional assignment is an international assignment between two countries within the same geographical region. 14

16 Why do companies use intra-regional assignments? Top reasons (Worldwide) 67% To complete specific projects 62% To fulfill temporary skill shortages at the host location 61% To transfer skills 43% To promote mobility within a region 15

17 Intra-regional assignments Top common home-host intra-regional country combinations by region of respondents Europe Americas Asia-Pacific United Kingdom to France Germany to France Belgium to France Germany to Switzerland Singapore to China Malaysia to China United States to Canada Canada to United States Singapore to China Hong Kong to China Taiwan to China United Kingdom to Switzerland Singapore to China Australia to Singapore United States to Canada Canada to United States Taiwan to China Singapore to Hong Kong 16

18 Intra-regional assignments How long is your typical intra-regional assignment (average in months)? Americas Europe Asia- Pacific Worldwide Minimum Average Maximum

19 Intra-regional assignments What are your main challenges in managing intra-regional assignments? Top 10 Adhering to policies Lack of central management (being able to coordinate the overall process) Immigration compliance 10% 20% 23% Lack of formal policies 27% Distinction with typical long-term assignments 7% Cost containment Managing benefits (housing, education) Inequities in compensation/tax/col levels 2014 among countries Mercer LLC within the region 20% Tax compliance 33% 40% 43% Managing exceptions 47% Worldwide Asia-Pacific 18

20 Intra-regional assignments What types of packages would be available for an employee on an international assignment between 2 countries within the same geographical region? Asia-Pacific 55% 25% 20% Worldwide 63% 19% 18% A standard typical long-term assignment package, with no modification A modified version of the typical long-term assignment Some other package 19

21 Intra-regional assignments Do you have a formal intra-regional assignment policy? 55% 50% 41% 33% 12% 9% No, we handle case by case Yes No, but we are developing or planning to develop one Worldwide Asia-Pacific 20

22 Intra-regional assignments Are the following elements the same or reduced/eliminated as compared to a typical long-term or full global expatriate package? (Asia-Pacific) Assignment Incentive/Mobility premium 41% Hardship Housing norm 54% 52% COL / G&S 72% Dependant education 79% Miscellaneous relocation 79% Remained the Same Shipping 72% Local transportation Class of airfare Destination services 79% 83% 93% Housing allowance 83% Tax treatment 86% 21

23 Part Two GLOBAL NOMADS

24 Global nomad assignments Definition A global nomad is an employee, usually at a senior level, that has been on several (usually consecutive) international assignments, and who may or may not have kept a link with a home country of residence. 23

25 Why do companies use global nomads? Top reasons (worldwide) 70% To address local needs for global executive talents 56% To develop global managers 21% To address situations of employees without home country 24

26 Global nomads Trends How did the number of your global nomad assignments change in the last two years ( ) How do you expect the number of your global nomad assignments to change in the next two years ( )? 14% 3% 8% 8% 29% 13% 18% 72% 69% 58% 69% 59% 67% 60% 60% 14% 28% 33% 23% 11% 28% 33% 22% Americas Europe Asia-Pacific Worldwide Americas Europe Asia-Pacific Worldwide Increased Remained stable Decreased Increase Remain stable Decrease September 24,

27 Global nomads What are your main challenges in managing global nomads? Managing retirement 15% Cost containment 54% Managing tax 39% Managing compensation Managing exceptions 31% 31% Tax compliance 46% Immigration compliance 23% Distinction from typical long-term assignments 23% Establishing basis for allowances and benefits 23% Managing health benefits 39% Asia-Pacific Worldwide 26

28 Global nomads How long is your typical global nomad assignment (average in months)? Americas Europe Asia- Pacific Worldwide Minimum ID* 20 Average Maximum ID* 55 *Insufficient data 27

29 Global nomads Do you have a global nomad assignment policy? 67% 69% 25% 19% No, we handle case by case Yes No, but we are developing or planning to develop one Worldwide Asia Pacific 9% 13% 28

30 Global nomads Are the following elements the same or reduced/eliminated as compared to a typical long-term or full global expatriate package? (Asia-Pacific) Assignment Incentive/Mobility premium 54% Housing norm 31% Hardship 50% Local transportation 62% Destination services 77% Shipping 69% Miscellaneous relocation allowance 62% COL / G&S 46% Class of airfare Housing allowance Dependant education 77% 77% 85% Tax treatment 69% Remained the Same September 24,

31 Questions

32 Questions James R. O Neill Chicago james.r.oneill@mercer.com Lorraine Jennings Melbourne lorraine.jennings@mercer.com QUESTIONS Please type your questions in the Q&A section of the toolbar. We will answer as many questions as we have time for. To submit a question while in full-screen mode, use the Q&A button at the top of your screen. CLICK HERE TO ASK A QUESTION TO ALL PANELISTS To submit a question while in half-screen mode, use the Q&A panel on the bottom right-hand side of your screen. FEEDBACK A feedback form will pop up in a new window when the session ends. Please complete it so we can continue to improve. View past recordings and sign up for upcoming mobility webcasts 31

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