WEBCAST TECHNOLOGY INNOVATION IN INTERNATIONAL ASSIGNMENT MANAGEMENT 24 April 2013 Vince Cordova, New York Frederic Franchi, London
Today we will: Review the current and future state of international assignment management technology Highlight new and innovative products/solutions Focus on the best way to leverage these technologies in your international assignment program 1
Why do employers need to leverage international assignment technology? Improved business performance Operational efficiency Consistency An engaged workforce Optimum use of assignments A unique source of competitive advantage Measure, optimize, and align assignments The right people in the right places Maximize talent pipeline Assignment strategy linked to business strategy 2
Range of technology tools in use Employers use technologies from simple Excel spreadsheets, wordprocessed templates, and email messages to robust suites of integrated databases, calculators, employee websites, and monitoring tools that can digitize almost any aspect of the expatriate experience. Desktop Applications Assignment Management Systems Others 3
Poll Question 1: Please answer on the right side of your screen What technology do you use to manage international assignments? A. No formal system (Excel spreadsheets, internal file management systems, e-mail) B. A mix of ad-hoc technologies (Excel spreadsheets) and some in-house and vendor technologies (software for immigration, tax compliance, compensation calculation) C. Primarily an application developed in-house D. Primarily outside vendor software E. Outsourced to a vendor who uses a software application 4
Poll Question 2: Please answer on the right side of your screen How effective is your approach in meeting your administration, reporting, and assignment management needs? A. Very effective B. Effective C. Neither effective nor ineffective D. Ineffective E. Very ineffective 5
Poll Question 3: Please answer on the right side of your screen If you use outside vendor software, which one? A. Big Four accounting firm system (PwC Resource; KPMG LINK; EY GEMS; Deloitte Global Advantage) B. Dedicated expatriate management system (Equus AssignmentPro, HRToolbox, Atlas, Polaris) C. Other D. Not applicable don t use outside vendor 6
Poll Question 4: Please answer on the right side of your screen What key gaps would an effective expatriate technology solution need to address? (select all that apply) A. Assignment management B. Compensation administration C. Employee tracking and reporting D. Assignment cost projections E. Employee interfaces and communications 7
International assignment management systems What are employers doing in practice? What tools do you use to track/manage assignments and related costs? We use outside vendor software 18% Other 5% We use an in-house application 13% We use mainly Excel and Word 64% Source: Mercer s 2012 Worldwide Survey of International Assignment Policies and Practices 8
International assignment management systems What are employers doing in practice? Almost two out of three employers surveyed (64%) still rely on Excel and Word to manage their programs down from 71% in Mercer s previous survey cycle (2010). Use of outside vendor software varied significantly by region: 25% in North America 16% in Europe 7% in Asia-Pacific 0% in Latin America Source: Mercer s 2012 Worldwide Survey of International Assignment Policies and Practices 9
International assignment management systems Factors affecting technology use Workforce size Program complexity Experience / Duration HR / Global Mobility staffing levels Attitude toward outsourcing Attitude toward centralization/decentralization Attitude toward communication / employee self-service Level of integration within the business Technology sophistication and ease of use 10
International assignment management systems Factors affecting technology use Need for Reporting, Analytics Cost and Budgeting HR and Business Analytics (ROI, Planning) Costing, Modeling, Analytics Complexity of Program Policies Home and Host Locations Duration / Age of Program Number of Assignments and Transactions Consistency and Efficiency Accumulation of Data for Monitoring and Reporting Need for Technology & Capacity of System 11
International assignment management systems Factors affecting technology use HR / GM Staffing Levels Centralization / Decentralization Outsourcing / In-sourcing / Co-sourcing Need for Technology? Level of Integration Within the Business Employee Communications Assignee / Employee Self-service 12
International assignment management systems Technology and the assignment lifecycle Pre-approval Post-approval On Assignment Repatriation and Post-Repatriation Candidate application Development of assignment package (LOA, Balance Sheet) Compensation, payroll, and reporting Pre-departure / Pre-arrival activities Candidate / Assignee record Assignee acceptance Expense reimbursement Change of status / reintgration processes Cost projection Authorization of services Management of ongoing services and support Closing out assignmentrelated services Assignment approval Informational and process resources and support for assignees Monitoring, reporting, and tracking of assignments Post-repatriation tracking Communications with assignee, internal and external parties 13
International assignment management systems Technology and the assignment lifecycle Pre-approval Candidate Application Candidate Assignee / Records IN-HOUSE / LOW-TECH Management already has opinions about who constitutes a good candidate for assignment. Can be in both paper and electronic form, stored in multiple locations. HIGH-TECH SOLUTION / OUTSOURCE HRIS software that tracks all potential candidates for assignment can provide objective measures and result in more successful moves. Systems can store information in common database to support one-time input and storage of assignment communications. Cost Projection Spreadsheets created for each assignment proposal, limited capability for advanced calculations; change and consistency risks. Consistency and ability to handle more complex scenarios and do batch processing. Assignment Approval Can be contained in various emails and long strings, clear approval may not be apparent. Standardized forms and approval workflow, approval can be embedded in process flow (i.e. approval buttons). 14
International assignment management systems Technology and the assignment lifecycle Post-approval Development of Assignment Package Assignee Acceptance Authorization of Services Support for Assignee IN-HOUSE / LOW TECH Separate, stand-alone programs used to develop LOAs, balance sheets, checklists, etc. Assignee typically receives e-mail with numerous attachments / files to review. Communicate acceptance either verbally or via email. Notification process commonly requires multiple, separate emails sent to various parties, follow-up, and confirmation ad hoc. PDF files and links to various websites typically provided to assignee and family. Assignee may be required to reach out to vendors. HIGH TECH SOLUTION / OUTSOURCE All documents developed via customized workflow that shares data across different templates to generate assignment documents. Assignee able to review and sign off on assignment terms and conditions via website. Automated from assignee acceptance. Notifications and status updates typically tracked centrally. Assignee can access tools and status information in virtual environment. 15
International assignment management Systems Technology and the assignment lifecycle On Assignment Compensation, Payroll, and Reporting Expense Reimbursement Managing Ongoing Services and Support Monitoring, Reporting, Tracking Assignments IN-HOUSE / LOW-TECH Balance sheets and pay instructions done on a one-off or per-assignee basis. Stand-alone systems create inefficiencies and risk of errors. Due to need to report differently for tax purposes, can be a manual process or require overrides to existing company processes. Managing core, peripheral activities and processes relying on organizational and project management abilities or internal teams. Typically ad-hoc reporting of data stored in various locations. Difficult for compliance and to ensure timeliness, accuracy. HIGH-TECH SOLUTION / OUTSOURCE Integrates system used to batch process these items and feed them to assignees, vendors, and other parties as necessary. Process is managed efficiently with reimbursements accurately reflected on assignment compensation statements for home and host tax purposes. Automated reminders ensure all that no steps or key dates are missed guaranteeing consistent treatment of all assignees. Regular, accurate reporting on head count, pipeline, status, cost, etc. can be provided to various groups to help identify critical issues or gaps. 16
International assignment management systems Technology and the assignment lifecycle Repatriation / Post-Repatriation Pre-departure / Pre-arrival Activities Change of Status / Reintgration Processes Closing Out Assignment-related Services Post-repatriation Tracking and Measurement IN HOUSE / LOW TECH Notification process commonly requires multiple, separate emails sent to various parties, follow-up and confirmation done ad hoc. Separate transactions in the home and host locations. Inefficient communication and follow-up with multiple parties and assignees. Notification process requires multiple, separate emails sent to various parties, follow-up and confirmation done ad hoc. Typically done through ad-hoc reporting of data stored in various locations. Can be time-consuming to collect and analyze data. HIGH TECH SOLUTION / OUTSOURCE Even if moving is outsourced, employers can use software to track overall program costs, identify trends, and ensure outsourced providers perform. Coordinating with talent management software can promote more successful moves home. Automated process to ensure services are related, billings are terminated where appropriate (i.e. storage) or extended as necessary (i.e. tax return preparation). Integrating data from multiple systems in a common platform which enables in-depth analysis and reporting in a dashboard or similar format. 17
International assignment management Examples: Mercer supported management systems Global HRMonitor (GHRM) Expatriate Compensation Calculator (including Advanced and Pro versions): Facilitates balance sheet calculation process, allows grossing-up, as well as storage and retrieval AssignmentPro : End-to-end automation for global mobility managers to effectively manage all aspects of international assignment (payroll, vendors, expenses, tracking, reporting, compensation, communication) 18
International assignment management GHRM: Expatriate Compensation Calculator (ECC) Pro 19
International assignment management AssignmentPro: End-to-end automation 20
International assignment management AssignmentPro: System features Online Expense Entry Integration Document Manager Payroll and email systems Merge, email, and store documents Access for assignees, suppliers, HR Web Portals Monitor and manage processes Compensation Accumulation Projections, expenses, compensation Compensation Automation Multi Currency Accounting Workflow & Checklist Automation Calculate and report to payroll Gather information throughout the year Automatically route for approvals 21
International assignment management AssignmentPro 22
International assignment management Success formula Flexible software + Continuous innovation = Happy internal clients 23
International assignment management AssignmentPro implementation project Continuous Innovation Value Value of community-driven, continuously enhanced software vs. custom-built software 24
International assignment management Case study Background: Manufacturing company ~ 150 expats and 100 local transfers annually 23 different countries Assignment management services outsourced Global mobility staff of 2 / shared services for HR locally Drivers for seeking a technology solution: Collecting data consistently for domestic and international moves Tracking assignee moves Financial and compliance-related reporting Global access and reporting assignee data for stakeholders Tools for tax equalization, compensation accumulation, payroll 25
International assignment management Case study Key outcomes Before Assignment management outsourced Tracking scattered, using different platforms Reporting was problematic High level of inefficiency After Increased visibility Assignment management back in-house (group of 4) Consistent, consolidated work processes and data More control, centralization Improved reporting, responsiveness, compliance tracking Increased efficiencies, especially in compensation, tax equalizations, and payroll Building career development and talent management 26
International assignment management Enhancing the assignee interfaces People are connected globally: 1B Facebook users 175M LinkedIn members in over 200 countries Connections happen quickly: There are almost 6 billion cell phones worldwide (85% of population of 7 billion, as of March 2013) Assignees have a critical need for timely and relevant information that can be accessed 24/7 27
International assignment management Enhancing the assignee interfaces examples MercerPassport : Country information necessary for expats and their families to prepare for, navigate, and settle into their assignment location/new home country. CulturalTrainingPassport : Prepares expats and their families for their time abroad. Includes affordable, interactive, country-specific cultural training courses, and a personal cultural profiler. Mercer Belong Global Mobility: A robust web-based application that can serve as a client-customized web portal for a wide range of resources related to mobility for the employer, assignees, and vendors. 28
International assignment management Enhancing the assignee interfaces MercerPassport 29
International assignment management Enhancing the assignee interfaces CulturalTrainingPassport 30
International assignment management Enhancing the assignee interfaces Mercer Belong Global Mobility 31
International assignment management Enhancing the assignee interfaces Mercer Belong Global Mobility 32
In closing, please consider... How many types of expatriates do you have? Are you segmenting expatriate support elements appropriately among types? Are you keeping good track of your expatriates? Are your expatriates happy? What is the ROI of your expatriate program? What is the cost of an error compared to the cost of technology? Would a flexible solution better suit your program? 33
Questions Vince Cordova New York +1 212 345 9807 vince.cordova@mercer.com Frederic Franchi London +44 20 7178 5505 frederic.franchi@mercer.com QUESTIONS Please type your questions in the Q&A section of the toolbar. We will try to 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. To submit a question while in half-screen mode, use the Q&A panel on the bottom right-hand side of your screen. CLICK HERE TO ASK A QUESTION TO ALL PANELISTS FEEDBACK A feedback form will pop up in a new window when our webcast ends. Please fill it out and submit it so we can continue to improve. www.imercer.com/gmwebcasts View past recordings and sign up for upcoming webcasts 34