Emerging Trends in Global Policy and Program Design

1

• Emerging Trends in Global Policy and Program
  Design
• Lina Paskevicius
• Manager, Cartus Consulting

2
Todays Discussion

• Emerging Global Policy and Program Trends
• Demand for Flexibility
• Emerging Policy Approaches
• Talent Management and Global Mobility

3
2007 Policy Practices Survey

• Fifth survey in a continuing series aimed at
  capturing prevailing trends, issues and
  challenges in global mobility today
• Questionnaire explored current perspectives on
  how evolving objectives for global mobility
  programs drive new approaches
• 184 respondents HR practitioners
• Based in US, EMEA and APAC
• Co-sponsored by NFTC

4
Major Conclusions

• Significant shifts in three areas
• Assignment length
• Trend toward shorter duration assignments
  continues
• Policy flexibility
• Use of multiple policy approaches increases
  response to variable business, employee, budget
  and geographic needs
• Talent management
• Intensifying focus on recruiting, retaining and
  growing global talent

5
Emerging Global Policy and Program Trends Summary

• Assignment Volume and Destinations
• Assignee profiles remain constant
• Assignment volume has grown and is expected to
  increase
• Activity within all policy types is expected to
  grow
• New locations pose new challenges
• Policy Flexibility and New Policy Approaches
• Policy is not keeping up with changing assignment
  types
• Assignment durations are decreasing
• New short-term policy types are emerging (EBT,
  Commuter and Developmental)
• Interest in core/flex programs on the increase
• Regional policies are being implemented

6
Emerging Global Policy and Program Trends Summary

• Talent Management and Global Mobility
• Intensified focus on recruiting, retaining and
  growing global talent
• Companies looking to establish better links to
  global mobility programs
• New policy types being utilized to promote the
  development of global competencies
• New demographics being moved around the globe for
  training, leadership and retention purposes

7
Global Mobility Policy Definitions

• Long-Term Assignment Relocation from one country
  to another for the length of assignment
  typically 1 year or more
• Short-Term Assignment Relocation from one
  country to another for the length of assignment
  typically up to 1 year
• Localization Integration of employee into
  compensation and benefits system of the host
  country either as a transfer from, or an
  alternative to, an international assignment for a
  temporary or indefinite period
• International Commuting An employee who works in
  the country of assignment and commutes frequently
  to his/her home country
• Extended Business Travel An employee who does
  not relocate, but travels regularly to the
  assignment location
• Developmental Assignment whose major objective
  is experience and career development generally
  short term

8

• ASSIGNMENT VOLUME AND DESTINATIONS

9
Policy Support vs. Expectations

• Shows gaps between assignment growth and policy
  development most have LT and ST but few
  policies for the newer policy types

Policy support vs. assignment increase
10
Assignment Destinations Where Did They Go?

• Singapore disappears. . .Germany emerges

But looking forward . . .
11
Assignment Destinations Where Will They Be
Going?
China takes top spot . . .Germany gives way to
India
12
New Locations Destinations Require New Solutions

• Key challenges included
• Infrastructure / hardship / security
• Living conditions (housing / medical / education)
• Compensation and payroll (high cost)
• Compliance (tax immigration)
• Cultural adaptation language
• Need for policy flexibility
• Recruiting and talent management

13

• POLICY FLEXIBILITY EMERGING POLICY APPROACHES
  AND TYPES

14
Policy Flexibility In Demand

• Flexible policies driven by employee, business,
  and regional needs

15
Policy Flexibility Core/Flex Emerges As a New
Approach

• Almost 40 have or are considering implementing
  for
• Business flexibility 36
• Better cost management 28
• Employee flexibility 28
• HR responsiveness 27
• Regional flexibility 19
• Despite
• Perception of inequality 60
• Lack of global consistency 54
• Administrative complexity 53
• Lack of defensibility 25

16
Policy Flexibility Developmental Policy Gaining
Attention

• Why are they used?
• Leadership/management skill development
• Technical training
• Corporate culture transfer
• Outbound from emerging markets
• What is the duration?
• Less than 12 months 42
• 12 to 18 months 30
• Greater than 18 months 28

• Who is using?
• Over last three years, only 47 respondents
  indicated an increase in developmental assignment
  activity
• Yet over the next two years, 64 of respondents
  anticipate an increase
• Where are they being used?
• EMEA 70
• APAC 45
• Americas 40

17
Policy Flexibility Intra-Regional
18
Policy Flexibility Localization

• Over half (53) have a formal localization policy
  
• Close to half make a distinction between
  localization and permanent move policies

Approach used

• Except in emerging markets and/or hardship
  locations
• Pure local 19
• Transition 21
• Local plus 25

19
Policy Flexibility Commuter and Extended
Business Travel

• Regions that are seeing most frequent use . . .
• International Commuting
• APAC 23
• EMEA 52
• Americas 25
• Extended Business Travel
• APAC 38
• EMEA 33
• Americas 29

20
Short-Term Snapshot Most Are Unaccompanied

• Accompanied or unaccompanied?
• Just under a third (27) allow by exception only
• Just over a third (33) will allow over a certain
  duration
• Typically six months or longer
• 15 will allow at managers discretion and 6 not
  at all
• Where are they being used?
• Europe
• China
• USA
• India

21

• TALENT MANAGMENT

22
Global Mobility Focus on Talent Management

• What is Talent Management?
• Ensuring that, through its people, an
  organization is able to achieve its growth goals
  today and in the future
• Talent management refers to those special
  strategies an organization deploys to recruit,
  retain and develop their talent pool
• International experience is recognized by many
  employees as a path to leadership positions
• Primary driver behind the rise in shorter-term
  and other newer assignment forms
• Over 40 of respondents feel international
  assignments necessary for promotion, although
  fewer acknowledge that they actually are, in
  actual practice, a necessity (22)

23
Business Strategy More Important Than Cost

• 78 said that business strategy is more important
  than cost, suggesting that organizations today
  increasingly acknowledge that international
  assignments are simply a recognized cost of
  competing on a global platform today

24
Creating Solid Links Talent Management Tools

• Articulate the global growth philosophy
• What role does global mobility have in supporting
  the overall talent management process?
• How is global mobility used for career and
  succession planning and as a vehicle for a
  companys global growth?
• Tools focusing on global skill development (not
  just job tasks)
• Selection process support tools
• Objective setting mechanisms
• Repatriation and career planning strategy
• Roles and responsibilities definition and job
  aids
• Cross-cultural training programs and tools
• Assignment related performance evaluation tools
• Repatriation Integration workshops

25
Talent Management Enhanced Mobility Support
Candidate assessment for long-term assignments
Self-assessment workbook
Pre-departure Cross-cultural and Language
Training On-line and face-to-face options
End of Assignment Strategies Repatriation and
Localization
Employee and Family Support Settling-in
Services Spouse/partner Support
Resource Guide for New Policy and Program
Mobility Website
26
Thank You