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7/29/2019 200906 EY Global Mobility Survey
1/48
Global mobility
effectiveness survey
2009
7/29/2019 200906 EY Global Mobility Survey
2/48
7/29/2019 200906 EY Global Mobility Survey
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3Global mobility effectiveness survey Ernst & Young 2009
Contents
Executive summary 4
Global mobility effectiveness survey 6
1. Introduction 6
2. Respondentscompanyprole 6
3. Typesofassignmentsandpolicies 7
3.1. Short-termassignments 7
3.2.Long-termassignments 7
3.3.Driversforassignments 8
3.4. Assignmentpolicies 10
4. Globalmobilityfunction 12
4.1. Organizationalsetup 12
4.2. Meetingexpectationsandreturnoninvestments 15
5. Globalmobilityprocesses 19
5.1. Selection 21
5.2. Preparation 21 5.3. Onassignment 21
5.4. Repatriation/post-repatriation 22
6. Globalmobilityservices 22
6.1. Preparationservices 22
6.2. Ongoingassignmentservices 24
6.3. Technology 27
6.4. Futuretrends 28
7. Riskmanagement 29
8. Globalmobilityeffectiveness 32
9. Costandcontrol 34
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4 Global mobility effectiveness survey Ernst & Young 2009
Executive summary
Theworldisembracedinanunprecedentedeconomicdownturnwhichis
bringingbothchallengesandopportunitiestoglobalmultinationalcom-
panies.Unlikeotherdownturnshowever,HRisbeingchallengedtodoso
muchmore:handleamorecomplex,andinsomecasesstillincreasing,as-
signeepopulation;overseemorediversepoliciesandtypesofassignment;
manageorreducecost;runefcientprocesses;reduceorganizationalrisk.
Allofthisismostlywiththesameorevenlessresourcethanbefore.
OurGlobal mobility effectiveness survey 2009isrunningforitssecond
yearandoffersacomprehensiveandbroadrangeofviewswith155par-
ticipatingglobalmultinationalcompaniesheadquarteredintheAmericas,
Asia-PacicandEurope.Thesurveystaskistoassesstheeffectivenessof
theglobalmobilityfunction,itsprocessesandpolicies,andtooffercom-
parisonwithourrst2008survey.Additionally,thesurveywasexpanded
thisyeartoprovidebenchmarksofkeyobjectivesforinternationalHR
managementinthiscurrenteconomicclimate.
Theresultsofthesurveyaredetailedonthefollowingpagesandshow
comparisonsbygeography,bymarketbestpracticeorexpectations,andour2008survey.Thekeyresultsofthissurveyinclude:
71%ofcompanieshaveaclassiclong-termassignmentpolicy,67%have
short-termpoliciesbutonly22/23%havecommuterorregionalpolicies.
Only18%ofsurveyedcompanieshavedifferentiatedstrategicordevel-
opmentalpolicieswhileafurther10%aregoingthatway.
Companiesloseupto15%oftheirassigneeswithin2yearsofrepatria-
tionbutrepatriationisseenasthemostimportantphaseofanassign-
mentbyonly1%ofrespondents.
Preparation(55%)andselectionofassignee(36%)arethe2mostim-portantphasesoftheassignmentbut61%ofIHRteamsarenotinvolved
inassigneeselection.
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5Global mobility effectiveness survey Ernst & Young 2009
Companiessurveyedwereaskedtorankintermsofurgencyareas
inneedofimprovementwiththetop4beinginorder:1.assignmentad-
ministration;2.costcontrol;3.processes;4.policy.
Thetop4risksweresimilarlyrankedas:1.incometax&reporting;
2.accidentalexpatriates;3.socialsecurity&reporting;4.corporatetax.
Only20%ofcompaniesknowtheirtrueexpatcost,58%haveanapproxi-
matecostonly,81%arelookingtotakemeasurestosavecost.
Ofthekeyareasoffocusformanagingcostthetop5inorderare:
1.globalmobilityprocesses;2.localizations;3.policies;4.vendor
outsourcing;5.strategyapproach.
Wehopethatyouwillndthesurveyofinterestandofuseinallowingyou
insightintootherorganizationviews,geographicaldisparitiesandinto
thefutureobjectivesofoursurveyparticipants.Wealsoencourageyouto
lookatyourowninternationalHRfunctionandchallengeyourcurrentpro-
cessesandapproaches:inthesepastyearsofgrowthmanyopportunities
orissueshavebeenpushedasideandnowisthetimetogobackandlookwhethertheycanunlockvalue,beitinprocessefciency,policycostman-
agementorriskreduction.
Ultimatelythissurveyisabouttakingadifferentlookatthewayweseethe
internationalHRfunction.Welookforwardtoyourfeedbackandyourpar-
ticipationinour2010survey.
Kevin Cornelius Chris Debner
HumanCapitalPartner HumanCapitalSeniorManager
June2009
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6 Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
1. Introduction
TheGlobal mobility effectiveness survey 2009analyzestheef-
fectivenessoftheglobalmobilityfunction,processesandpoli-
ciesofleadingmultinationalcompaniesandofferscomparison
withourrst2008survey.Additionally,thesurveycovered
questionsrelatedtothecurrenteconomicclimatebyanalyzing
costmanagementstrategiesintheinternationalHRenviron-
ment.
Questionnaireswerereceivedfrom155organizationshead-
quarteredacrossEurope,theAmericasandAsia-Pacicfroma
diversityofindustrysectorsprovidingstatisticallysignicant
ndingsacrossthegeographiesandsectors.
2. Respondentscompanyprole
50%oftheparticipantsofourGlobal mobility effectivenesssurvey 2009areheadquarteredinEurope,39%intheAmericas
and11%havetheirheadquartersinAsia-Pacic,demonstrating
theglobaldimensionofthesurveyandprovidingcontrast
acrossthethreegeographicareas.
Where is your Company headquartered?
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Theparticipatingrespondentcompaniesoperateacrossthefull
rangeofindustrysectorswithFinancialServices(15%),Indus-
trialProducts/Manufacturing(13%),Technology(13%)and
Retail&ConsumerProducts(12%)moststronglyrepresented.
To which industry sector does your Company belong to?
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Over50%oftherespondentssurveyedrepresentmultinationals
withmorethan20,000staff,and14%withmorethan100,000
employees.Butalsosmallercompaniesparticipatedinoursur-
veywith44%havinglessthan20,000employees.
How many people are employed in your Company worldwide?
q
q
q
q
q
0WFS
26%
15% 13% 13%12%
7% 7%
4% 3%
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7Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
3. Typesofassignmentsandpolicies
Assignmentsaremostlycoveredanddenedbypolicieswith
themostcommonbeingshort-term(oftenlessthan12of
18monthsinterm)orlong-termassignmentpolicies(often
15yearsinterm).
3.1.Short-termassignmentsAlmostthree-quarteroftherespondentsindicatedthatless
than1%oftheirtotalglobalemployeesareexpatriatesonshort-
termassignments.
What % of the total number of employees are assignees?Short-term < 12 months
q
q
q
3.2.Long-termassignmentsIn68%ofthecompaniessurveyed,long-termassigneesrepre-
sent01%oftheirtotalworkforce.
What % of the total number of employees are assignees?Long-term > 12 months
q
q
q
AsageneraltrenditcanbeobservedthatEuropeanheadquar-teredcompaniessendmoreexpatriatesonshort-termassign-
mentsthanAmericanandAsian-Pacicbasedcompanies.15%
oftheEuropeancompaniesindicatethatover2%ofemployees
areshort-termassignees,whereasonly11%oftheAmerican
and8%oftheAsian-Paciccompanieshaveover2%oftheir
employeesonshort-termassignments.Incontrast,thereare
morelong-termassigneessentfromAsian-Pacicheadquar-
teredcompaniesthanfromAmericansorEuropeans:30%of
Asian-Paciccorporationsindicatedthatover2%oftheirem-
ployeesareonlong-termassignmentswhileonly15%ofthe
Americanand18%oftheEuropeancompaniesreportedsucha
gure.
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8 Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
3.3.DriversforassignmentsThesurveyshowedthatmostinternationalassignmentsare
projectbased,followedbymanagerialandstrategicassign-
mentswhichwerecitedasthesecondmostfrequentdriver.The
leastfrequentassignmentsareemployeedriven,besidesother
reasonscited.
What are the main drivers in your Company for sending peopleacross borders?*
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ThegeographicalcomparisonshowsthatinEuropeemployee
drivenassignmentsoccurmorefrequentlythaninAsia-Pacic,
butsubstantiallymorethanintheAmericas.Employeedriven
assignmentsarelessexpensiveforcompaniesduetopossible
savingsintraditionalexpatriateallowances,suchasmobility
premiums.AmongEuropeanheadquarteredcompaniestheuse
ofthistypeofassignmenthasrisennoticeablycomparedtolast
yearsresults.Therefore,companiesintheAmericasmaycon-
siderwhetheremployeedrivenpolicieswouldworkefciently
withintheirHRfunctions.
InAsia-Pacic,managerialandstrategicreasonsarethemost
frequentdriverforinternationalassignments.Butinterestingly
inEuropeanandAmericanheadquarteredcompaniesthere
wasapproximatelyathirdwhoindicatedotherdrivers,which
maybeglobalnomads,technicalskills,etc.,whereasnoneof
theAsia-Paciccompaniesexperiencedsuchdrivers.Thismay
bearesultofthestageofgrowthorcomplexityofanassignment
programorsimplyofdifferentcorporateculturesacrossthe
geographies.
78%
22%
66%
34%
26%
74%
19%
81%
18%
82%
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9Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
Asia-Pacific*
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The Americas*
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Europe*
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*Multipleanswerspossible
80%
20%
83%
17%
69%
31%
24%
76%
31%
69%
86%
14%
100%
86%
14%
31%
69%
100%
0% 0%
81%
19%
74% 73%
43%
22%26% 27%
57%
78%
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10 Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
Themajorityofthesurveyedcompanies(82%)havenotdiffer-
entiatedtheirpolicies,i.e.fordevelopmentalandstrategicas-
signments;however10%ofthoseareconstructingnewpolicies.
Recenttrendshaveshownthatcompaniesaremovingtowards
suchdifferentiatedpoliciestoseekbenetsfromcostsavings,a
betteralignmentoftheirinternationalassignmentswiththeir
globaltalentmanagementprocessesandabettertofthebusi-
nesscasesandtheassignees.Iftheseapproachesdodeliver
value,therearemanysurveyrespondentswhomaywishto
evaluateachangeinpolicyapproachtounlockthesebenets.
Do you have different policies for developmental andstrategic assignments?
/P
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In2009,44%oftherespondentsdevelopedtheirpolicywiththe
useofbenchmarkingand32%usedexternalproviderstodevel-
optheirinternationalassignmentpolicy.Incomparisontoour
2008surveyageneraltrendcanbeseenforengagingexternal
providerstodevelopinternationalassignmentpolicies.
3.4.AssignmentpoliciesWesurveyedthetypesofassignmentpoliciesusedordeployed
byrespondentsandunsurprisinglyfoundthatlong-termpolicies
(71%)andshort-termpolicies(67%)aremostcommonly
used.
Interestingly,forAsian-Pacicheadquarteredcompanies,trans-
ferpolicies,foreignlocalhirepoliciesandregionalpoliciesplaya
moreimportantrolethanintheAmericasandEurope,whereas
manyEuropeancompaniesstillhaveonlyoneglobalpolicy.
Which policies for internationally mobile employees exist inyour Company?*
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*Multipleanswerspossible
71%67%
45%
31%
24% 23% 22%
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11Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
Bytakingacloserlookonthethreegeographicareasofoursur-
vey,itcanbeobservedthatpoliciesaremoreoftenreviewedin
theAmericasandinEuropethaninAsia-Pacic.
How often do you review / benchmark your policy?
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What describes the approach your Company took in developing yourpolicies best?*
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*Multipleanswerspossible
Inconstantlychangingmarketsandbusinessobjectives,compa-
niesareencouragedtoupdatetheirpoliciesregularly.Thisis
especiallytrueinthecurrenteconomicsituationascostaware-
nessandtheneedforraisingefciencyareashighasneverbe-
fore.However,accordingtothesurveyonly29%ofparticipating
companiesrevieworbenchmarktheirpolicyannuallyand23%
doiteverysecondyear.
44%
32%28%
16%
3%
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12 Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
Themajorityoftheparticipatingcompanies(39%)indicated
thatoneinternationalhumanresourceemployeehandleson
averagelessthan25assignees.In25%ofthecompaniesone
dedicatedinternationalhumanresourceemployeehandles
2549assigneesandin36%ofthecompaniesthenumberof
assigneesperIHRemployeeisevenhigher.Thisshowsawide
varianceinthelevelofpotentialinteractionbetweenglobal
mobilityfunctionsandtheirassigneesandallowsconsiderations
ofthebalancebetweencomplexityandefciencyofglobalmo-
bilityfunctions.
How many assignees are handled on average by a dedicatedIHR employee?
q
q
q
q
4. Globalmobilityfunction
Thefollowingquestionslookedatthestafngandgeographical
organizationofacompanysglobalmobilityfunction.
4.1.OrganizationalsetupOutoftheparticipatingcompanies,69%werefoundtohavelessthan6full-timeemployeesdedicatedtotheirinternational
humanresourcemanagement.
Please provide the number of dedicated IHR staff in your Company.(Number of FTEs)
q
q
q
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13Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
The Americas
q
q
q
q
Europe
q
q
q
q
Asia-Pacific
q
q
q
q
ThegeographicalcomparisonshowsinEuropethatinternational
HRteamshandlethehighestnumberofassigneesperteam
member.InEurope,onefull-timeIHRemployeeisonaveragere-
sponsiblefor46assignees,inanAmericanheadquarteredcom-
panyanIHRemployeeistypicallyresponsiblefor41assignees
andinAsia-PacictheIHRteammembercoversonaverage
30assignees.Theresultsaremorepronouncedforlargeras-
signeepopulationswhere10%ofEuropeanheadquarteredcom-
paniesnotedthatanIHRteammemberisresponsibleformore
than150assignees,comparedto3%ofAmericanheadquar-
teredcompanies.
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14 Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
How is your staff geographically organized?
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60%oftheparticipantsbelievethatthenumberoftheirdedicat-
edinternationalhumanresourcestaffisjustright,whereas36%
havetheperceptionthattheirIHRisunderstaffed.AlthoughIHR
employeesofEuropeanheadquarteredcompanieshavetohan-
dlemoreassignees,signicantlymorerespondentsofAmerican
basedoperationssaythattheyareunderstaffed.
Do you believe that your IHR is overstaffed / understaffed?
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Themajorityofglobalmobilityteams(34%)arelocatedin
headquartersandregionalcentersand31%aretobefoundonly
inheadquarters,adheringtothegeneraltrendseeninthemar-
kettocentralizetheglobalmobilityfunctionandadministration
oftheassignments.
Overthelastfewyearsagrowingnumberofmultinationals
havesetupaglobaland/orregionalemploymentorganizations.
Reasonsforestablishingaglobalemploymentorganizationare
multipleandrangefromanincreaseintheeffectivenessoftheir
globalmobilityfunctiontopermanentestablishmentriskreduc-tion.ThebenetsderivingfromaGEOarenumerouswhileat
thesametimethecomplexityofdesigningandimplementing
suchastructureshouldnotbeunderestimated.
In2009morecompanies(10%)reportedtohavesuchaglobal
and/orregionalemploymentorganizationsinplacecomparedto
2008(7%),andourexperienceinthemarketshowsthatan
increasingnumberofcompaniesarealsocontemplatingamove
intosuchastructure.
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15Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
What are the most often addressed issues by international assignees,i.e. what did not meet their expectations during an assignment?*
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*Multipleanswerswerepossible
4.2.Meetingexpectationsandreturnoninvestments
Thischapterfocusesonthemostcommonassigneeissuesand
analyzestheissueslinkedtorepatriation.
Itisimportantwhenanalyzingtheresultsofaglobalmobility
functioninmeetingexpectations,tolookatitfromtwosides,
boththecompanyexecutivemanagementsperspectiveand
thatoftheassignee.Iftheassignmentexperiencehasturned
outtobenegativeand/orledtotheterminationoftheem-
ployee,globalmobilityinvestmentsmayhavebeenlost.
Theuseofkeyperformanceindicators(KPIs),whichareclosely
linkedtothecompanysoverallbusinessstrategyfortheglobal
mobilityfunction,hasbecomemorewide-spreadinrecent
years.However,thecomplexityofidentifyingtherightKPIsfor
acompanyandtheavailabilityandcomparabilityofquantitative
andqualitativedataaroundtheassignmentprocessremainsa
challengeformany.
56%oftherespondentsofthissurveyagreedthatthemain
issuewhereassigneeexpectationswerenotalwaysmetisthe
compensationpackage,followedbyfamily-andspouse-related
issues(40%)andrepatriation(28%).
56%
40%
28%
18%16%
8%
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16 Global mobility effectiveness survey Ernst & Young 2009
ThegeographicalcomparisonshowsthatinEuropefamily-and
spouse-relatedissuesaswellastherepatriationphaseofanas-
signmentaremuchmoreoftenaddressedbyassigneesthanin
theAmericasorinAsia-Pacic.Inreturn,compensationpack-
agesseemtobeespeciallyimportantanddifculttohandlein
Asia-Pacic.
The Americas*
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Europe*
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Global mobility effectiveness survey
Asia-Pacific*
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*Multipleanswerswerepossible
Adenedrepatriationprocesslinkedtotheglobaltalentman-
agementsystem,withhomecountrysupportandrecognition,
aresomeoftheprovenwaystomanageassigneeexpectations
andkeepvaluableexperiencesgainedwithintheglobalorgani-
zation.Suchprocesseswillbemoreacutelyneededbyglobal
mobilityfunctionswhereIHRemployeeshavetohandleonaver-
ageahigheramountofassignees,butallIHRwillstilllikelyface
resourceconstraintsinaddressingtheseissuessufciently.
Tomanagefamily-relatedissues,spousalsupportand/orallow-anceisoftenprovided.Itisbecomingincreasinglymoreimpor-
tanttondalternativewaystosupportspousesthansimplythe
paymentofallowanceswhichcanbespentonadiscretionary
basis.Innovativesolutionscanbeconsideredsuchasproviding
morehands-onspousalsupportwithspousebusinessnetworks,
assistanceinjobsearchandinobtainingworkpermits.Another
trendthatcanbeobservedaretheso-calledvirtualcareers:
whilethespouseaccompaniestheinternationalassigneehe/she
continuestoworkonavirtualbasisforhis/heremployerinthe
homecountryalthoughthisthrowsupotherimmigration,tax
andsocialsecurityissues.
54%
41%
28%
13%
21%
15%
48% 48%
35%
25%
17%
2%
100%
17%
8% 8% 8% 0%
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Whenanassigneereturnshomebeforetheplannedendoftheir
assignment,thismayleadtoaconsiderablelossofreturnonin-
vestmentforthecompanyandontheotherhandtodissatisfac-
tionoftheassignee.Thatsaid,81%oftherespondentsindicat-
edthatlessthan5%oftheirassigneesreturnbeforethe
contractualenddate.However,forthe8%ofrespondentsindi-
catingthatmorethan20%oftheirassigneesrepatriatebefore
theendoftheassignment,thereseemstobeworktobedone.
Whereas10%ofassigneesfromEuropeanand9%ofassignees
fromAmericanheadquarteredcompaniesreturnearlierthan
expected,only6%ofassigneesfromAsian-Pacicbasedcorpo-
rationsgobackbeforetheenddateoftheirinternationalassign-
ment.
What is the appropriate % of international assignees who return fromtheir assignment before the contractual end date?
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Theanswerstooursurveyquestionsontherepatriationphase
showthatmostassigneesreturntoanotherposition(38%),
whichisnotastonishingastheirnewlygainedexperiencesand
knowledgeenablethemtotakenewresponsibilities.However,
24%ofassigneesreturntotheirpreviousposition/department.
23%ofallexpatriatesgoagainonassignmentduringthenext
2yearsfollowingtheirrepatriationand12%resignfromtheir
companyinthefollowing24monthsaftercomingbackfrom
abroadwhatimpliesaconsiderablelossofinvestmentandloss
ofvaluableknowledgeforthecompany.Incomparablestudies
thepercentageofassigneeswholeavetheircompanieswithin
24monthsafterrepatriationisevenhigherandrangesbetween
15%and40%.
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18 Global mobility effectiveness survey Ernst & Young 2009
Whentakingacloserlookonthegeographicsplitsomeconsid-
erabledifferencesofassigneesnextstepsafterrepatriationcan
beobserved:
InEuropeandinAsia-Pacicaround40%ofhome-comingexpa-
triatesreturntoanotherposition.IntheAmericasitisonlyone
thirdoftheassigneesthattakenewresponsibilities.
InAsia-Pacic31%oftheassigneesreturntotheirprevious
positionand/ordepartment.IntheAmericasandinEuropethis
numberisclearlysmaller:slightlyover20%llthesamejob
theyoccupiedbeforetheirassignment.
IntheAmericasandinEuropeonequarterofthereturned
expatriatesgoagainonaninternationalassignmentduringthe
2yearsfollowingtheirinitialassignments.InAsia-Paciconly
12%goagain.
Americanheadquarteredcompanieshavetoacceptthelargest
lossofexpatriatesinthe2yearsaftertheirrepatriationandthereforehavepresumablyissueswiththerepatriationphaseas
15%ofreturnedexpatriatesleavetheircompaniesduringthis
time,whileinEurope10%andinAsia-Paciconly7%resign
fromtheircompanies.
During the first 2 years after repatriation, what percentageof your assignees:
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Global mobility effectiveness survey
38%35%
40%41%
24%22%
24%31%
23%25%
23%12%
12%15%
10%7%
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19Global mobility effectiveness survey Ernst & Young 2009
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Which of the following phases of the international assignment processis the most difficult from your experience?
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Thejuxtapositionofthemostimportantandmostdifcultphas-
esinthegeographicsplitshowssomeinterestinginsightswitha
clearandsurprisinggapindistinctionbetweenwhatisimpor-
tantversusdifcultespeciallyintherepatriationandpost-repa-
triationphases.Intalkingtosomecompaniesabouttheresultsitseemsthatalthoughtheawarenessistherethebusinessde-
mandsgreaterfocusontheearlierstagesoftheassignment
processandhenceobjectives(importance)aresetappropriate-
ly.Agreaterawarenessofthepotentiallossofinvestmentcom-
ingfromtherepatriationstagesmayhelpchangethebusiness
focus.
5. Globalmobilityprocesses
Thefollowingquestionsanalyzetheimportanceandchallenges
ofdifferentglobalmobilityprocesses.
Whenaskedforthemostsignicantphaseoftheinternational
assignmentprocess,themajorityoftheparticipatingcompanies
(55%)consideredthepreparation(pre-departure)phaseas
themostimportantfollowedbytheselectionoftheassignees
(36%).Thisseemstobeespeciallytrueforcompanieswith
headquartersintheAmericasandAsia-Pacic,whichseemto
focusalmostexclusivelyonthesetwophases,whereasinEu-
ropetheassignmentphase,repatriationandpost-repatriation
areweightedwithgreaterimportance.
Which of the following phases of the international assignment processis the most important from your experience?
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Anotherpictureemergeswhenaskingaboutthemost
difcultphaseoftheassignmentprocess.Theparticipating
companiesreportthemostdifcultieswiththepreparationof
theirassignees(37%)andtheirproperrepatriationafterthe
assignment(24%).
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20 Global mobility effectiveness survey Ernst & Young 2009
Asia-Pacific
1PTU
SFQBUSJBUJPO
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Global mobility effectiveness survey
38%
13%
59%
41%
3%
18%
0% 0%
18%
10%
50%
33%
50%
42%
0% 0% 0% 0%8%
17%
31%
21%
51%
29%
14%
6%2%
33%
2%
10%
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21Global mobility effectiveness survey Ernst & Young 2009
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5.2.PreparationFor55%oftheparticipatingcompaniesagoodpreparationofan
assignmentismostimportantandforthemajority(37%)also
themostdifcultpossiblyduetorapidlychangingeconomicand
regulatoryenvironmentsfacedbycompanies,anincreasing
numberofassignmenttypesanddifferentcountrycombinations
involvedandheavierdemandsbythebusinessonanincreasing-
lyresource-scarceIHRfunction.
AmericanandAsian-Pacicbasedcompaniesespeciallyrecog-
nizetheimportanceofthisphase,butatthesametimeseemto
havethemostdifcultiestomanageitproperly.
5.3.OnassignmentOnassignmentchallengeswereconsideredlesscrucial,only8%
oftherespondentsvotedthesemostimportantpointingto-
wardsthedifcultiesrelatingtotheassigneeandfamilyadapt-
ingtothenewcultureandbusinessenvironment.However,this
resultissurprisingasinarecentstrawpollofHRdirectors
aroundtheworldtalentmanagementandsuccessionplanningisakeyobjectivewhichwouldtintothispartoftheassignment
process.
IntheAmericasonly3%ofthesurveyedcompaniesperceive
thisphaseasmostimportant,thoughcomparedtotheother
geographicareastheyfaceatthispointofanassignmentthe
greatestchallengesas18%admittedthatitisthemostdifcult
one.
5.1.SelectionTherightselectionofandbusinesscasefortheassigneeisan
imperativeforasuccessfulassignment.Asexpected,itwas
thereforedeclaredasoneofthemostimportantphasesbythe
participantsofoursurvey.
Itisinterestingtoseethatonly11%oftheglobalmobilitypro-
fessionalssurveyedcouldreportthattheyareactuallyinvolved
intheselectionprocessofassignees,andonly28%reportedto
beinvolvedonacasebycasebasis,thusshowingthevastma-
jorityofglobalmobilityprofessionalsarenotatallinvolvedin
theselectionprocessdespiteperceivingittobeoneofthemost
importantones.Companiesshouldthereforeconsiderincreas-
ingtheinvolvementoftheglobalmobilityfunctionintheselec-
tionprocess,giventhefactthatthisisoftentherstandmost
criticalstageintheoverallsuccessoftheassignment.Global
mobilityprofessionalshavebetterinsightintothecharacteris-
ticsandrequirementsneededforworkingoverseasandshould
partnerwithlinemanagerstohelpselectthebestpossiblecan-
didates.
Is your IHR involved in the selection process of assignees?
/P
$BTFCZDBTF
:FT
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22 Global mobility effectiveness survey Ernst & Young 2009
6. Globalmobilityservices
Thefollowingchapterlooksattheuseofglobalandlocalservice
providersandthesplitofin-houseactivitiesbetweenIHRand
localHRduringthepreparationandduringanassignment.Addi-
tionallyalookwastakenattheuseoftechnologyandfuture
trendsinglobalmobility.
6.1.PreparationservicesWhenpreparationservicesareperformedinternally,theyare
mostoftensharedbetweenIHRandhostHR.Informationmeet-
ingsandimmigrationareinthemajorityofcasesorganizedby
IHR,whilelook&seetripsarearrangedbyhostHR.Taxexit
meetings,languagecoursesandcross-culturaltrainingsinthe
majorityofcasesarenotdealtwithbyeitherhome,hostHRor
IHR.
5.4.Repatriation/Post-repatriationOnly1%oftherespondingcompaniesseetherepatriationphase
asthemostimportantone,whereas24%declaredrepatriation
asmostchallenging.InparticularEuropeanheadquarteredcom-
paniesseecomplexityinbringinghometheirexpatriatesand
33%declaredthisphaseoftheassignmenttobemostdifcult.
InterestinglyAmericancompaniesdonotperceivetherepatria-
tionphaseasdifcultastheirEuropeancounterparts,although
theyhavethehighestturnoverrateofrepatriates.
Themajorityofthecompaniessurveyedreportedtohavea
standardizedrepatriationprocessinplace(65%)whichhelps
todealwithassigneeretentionandreadjustmenttothehome
countryenvironment.However,35%ofrespondentsindicateda
lackofsuchprocessesintheirorganization,possiblyleadingto
ahigherexpatriateturnoverandsubsequentrelatedcosts.
Do you have a standardized repatriation process?
:FT
/P
Linkingtalentmanagementsystemstoassignmentmanage-mentandpreparingforafuturejobalreadyintheassignment
preparationphaseandalsoinitiatingtherepatriationprocess
withengagingindiscussionswithexpatsuptooneyearbefore
theendoftheassignmenthasproventobeakeyinthelong-
termretentionofreturningassignees.
Global mobility effectiveness survey
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Which activities are performed to prepare staff for internationalassignments?*
Internal
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Wherepreparationservicesareoutsourced,localprovidersare
chargedwithlanguagecoursesandlook&seetrips,whereas
globalprovidersmoreoftentakecareoftaxexitmeetings,infor-
mationmeetings,immigrationandcross-culturaltraining.
Which activities are performed to prepare staff for internationalassignments?*
External
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*Multipleanswerspossible
Whengroupingtheresponsesintothethreegeographicalareas,
itcanbefoundthatmoreglobalprovidersareusedintheAmer-
icasandinAsia-PacicwhileEuropeanheadquartercompanies
stillusemorelocalproviders.
66%
16%13%
6%
35%
17%
28%
20%25%
15%
41%
19%22%
14% 13%
51%
21%
4%
21%
54%
20%
6% 10%
64%
67%
25%
8%
47%
32%
20%
45%50%
5%
42% 44%
14% 14%
82%
3%
14%
82%
33%
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24 Global mobility effectiveness survey Ernst & Young 2009
6.2.OngoingassignmentservicesActivitiesperformedduringassignmentssuchasperformance
management,salaryreviews,crisismanagement,exception
management,costmonitoringandrepatriationarenormally
linkedtostrategicdecisionsandthereforekeptinternally.Thisis
seenasleadingpracticeamongmultinationalsalsoaccordingto
othersurveys.
Exceptionmanagement,repatriationpreparationandcostmoni-
toringaremostlyperformedbyIHR,whereashostHRtakescare
ofperformancemanagementandcrisismanagement.Salary
reviewsareasoftenaddressedbyIHRasbyhostHR.OtherIn-
houseHRfunctionsaremainlyinvolvedinperformanceman-
agement,salaryreviewsandcrisismanagement.
Which activities are performed during international assignments?
Internal
*)3 *OIPVTFOPU*)3
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)PTU)3 OB
Global mobility effectiveness survey
71%
9% 11% 9%
63%
18%
12%7%
52%
22%17%
10%
34% 34%32%
0% 11%
32%
53%
3%
27%26%
33%
14%
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Global mobility effectiveness survey
Wherecompanieshaveoutsourcedtheirongoingassignment
services,almostonlyglobalprovidersareused,withafew
exceptionsinrepatriationpreparationandcrisismanagement
wherealsolocalprovidersmightbeemployed.
Which activities are performed during international assignments?*
External
(MPCBMQSPWJEFS -PDBMQSPWJEFS
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*Norespondentdoesperformancemanagementexternally
61%
8%
31%
55%
3%
36%
0% 0% 0%
31%
16%
42%
64%69%
84%
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26 Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
Policymanagement,compensation&benets,shareplans/
stockoptions,payroll,pension,securityissuesandinsurance
areinmostcasesmanagedinternally.Mostcompaniesreport
thatinternalaswellasexternalservicesaddresssocialsecurity,
laborlawissuesandhousing,whereasglobalhealthcare,school-
ing,immigration,relocation/shippingandtaxcompliancearein
mostofthesurveyedcompanieshandledexternally.
Incomparisontoour2008surveythetrendtowardsoutsourc-
inghasincreasedandmorecompaniesassignactivitiessuchas
immigration,housingandschooling,relocation/shippingandtax
compliancetoexternalproviders.
How does your Company address the following topics?
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Ithasbeenseenthatthemoredecentralizedanorganization
isandthemorestakeholdersareinvolvedinprovidingglobal
mobilityservices,thehighertheriskincompliance,costand
controlissues.Readersofthissurveymaythereforebenchmark
wheretheysitintermsofprovisionofglobalmobilityservices
withtheabovesurveydata.
86%
72% 72%
67%65%
60%
51%
42%
38%
28%
20%
15% 15%
7% 1%1%
13%
1%
27% 26%
2%12%
23%
31%
4%
12%
29%
21%
28%
16%
43%
16%
46%43%
28%
48%
32%
41%44%
46%
40%
67%
26%
59%
40%
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6.3.TechnologyThemajorityoftheparticipatingcompaniesusetechnologyto
manageassigneedatastorage(68%),assignmentcostestima-
tion(53%),balancesheetgeneration(52%)andtaxandso-
cialsecuritycompliance(51%).
In which areas are you using technology to support yourglobal mobility process?*
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Furtherpossibilitiestousetechnologyinthefuturearemainly
seeninassigneecostestimation(54%),assigneedatastorage
(47%)andbalancesheetgeneration(37%).
In which of the following areas do you plan to use technologyin the future?*
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Useoftechnologyisanotherwaytoshiftglobalmobilityprofes-
sionalsfocustostrategicissuesratherthandealingwithtime
consumingadministrativetasksaswellastoreducecostsand
makeefciencysavings.Mostoftheglobaltaxservicesprovid-
ersalsohaveglobaldatabasesavailablefortheadministration
ofassigneedata,taxreturns,costcollectionandestimations
andbalancesheets,whichcansignicantlysaveglobalmobility
timeandcost.
Ontheotherhanditissurprisinginsomewaysthattheuseof
technologyisnotmorewidespreadincertainkeyareasof
IHRadministration,especiallycostestimation,assigneedata
storageandbalancesheetgeneration,orinchallengingareasof
globalcorporatecompliancesuchascompensationaccumula-
tionorglobalequity.
68%
53% 52% 51%
39%
30%
12%10% 8%
54%
47%
37% 35%32%
24%21%
10% 9%
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6.4.FuturetrendsMostoftheparticipatingcompanies(47%)donotplantoout-
sourceanyIHRandin-houseactivitiesduringthenext1to2
years.However,thosewhowilloutsourcementionedadministra-
tion,payroll,relocationservices,immigrationandtaxandsocial
securityasareasthatwillbepassedtoexternalproviders.In
comparisonto2008,adecreaseinoutsourcingplanscanbeob-
servedinmostareas.
Which of your IHR and in-house activities are you planning tooutsource during the next 1 to 2 years?
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Asimilarpictureshowswhenlookingattheinsourcinginten-
tionsofthesurveyedcompanies.86%ofparticipantssaidthat
theyhadnoplanstoinsourcecurrentlyoutsourcedactivities.In
theAmericasandinAsia-Pacic,nocompanyreportedanyin-
tentiontoplananyactivitiesduringthenext1to2years.
Again,in2008thepercentageofcompaniesplanningtoin-
sourceanyactivitieswasmuchhigher.
Outsourcingawellasinsourcingmeansabigchangeeffortthat
manycompaniesareapparentlynotwillingtoassumeinthe
currenteconomicsituation,oralternativelytheyhavealready
completedtheirplans.
Which of your IHR and in-house activities are you planning to insourceduring the next 1 to 2 years?
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47%
26%
9%6% 6% 4% 3%
86%
8% 5%
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7. Riskmanagement
ThemostchallengingIHRtopicswereindicatedbythepartici-
patingcompaniestobetaxcompliance(52%),immigration
(39%)andcompensationandbenets(37%).Theimportance
oftaxandimmigrationcomplianceisconsideredoneofthekey
challengesalsobyothersimilarsurveysconductedinthelast
twoyears.Thisislikelyduetoaconstantlychangingregulatory
environment,newtypesofassignmentsandthehighervariance
inassigneenationalities.Infactwithtaxlawsnowchangingin
responsetofallingtaxrevenuesincertaincountries,andin-
creasedimmigrationscrutinyinmanymarketsduetorisingun-
employment,ourviewisthatthesechallengeswillonlyin-
crease.
Companiesseemtohavelessdifcultiesindealingwithsecurity
fortheirassignees,relocation/shippingandinsuranceasthese
topicswerenamedastheleastchallenging.
Whereastaxcomplianceandimmigrationarestillontopofchal-
lengingIHRtopics,thecomparisonwithour2008surveyshows
thatcompaniesreportedmoredifcultieslastyearinpolicy
management,payroll,laborlawissuesandsocialsecurityandit
islikelythattheirprioritieshavechangedratherthandifculties
intheseareasdecreased.
Which of the following IHR topics are the most challenging in yourcompany?*
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52%
31%
18%
39%37%
34% 33% 33% 33%
28% 28%
23%
17%19%
10% 8%
30%32%
35% 36%36%35%
31%
40%
31%
36%
30%
35%35%
30% 31% 31%32% 31% 31%
41%
33%
47%45%
53%55%
58%
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Themainissuesintheglobalmobilityprocesswherecompliance
risksareidentiedbytherespondentsofthissurveyareincome
taxreportingandwithholding(63%),accidentalexpatriates
(53%),socialsecurityreportingandwithholding(45%)and
corporatetax(45%).
Theseglobalmobilityriskscanadverselyaffectbusinessobjec-
tivesand/orresultinpenalties,additionaltaxes,lossofcostcon-
trol,nancialstatementexposure,harmtocompanyreputation
and/orlosttax/costsavingopportunities.Thereforesettingupa
riskmanagementprocesstomonitorandimprovecurrentinter-
nalcontrolshasbecomehigherupintheglobalmobilitymanag-
ersagenda.Manymultinationalshavealreadydevelopedand
benetedfromacommonglobalriskmanagementmethodology
toincludeimprovedresultsintheglobalmobilityfunction,to
avoidanypotentialharmtothecompanysreputation.
What are the main areas in your global mobility process where you seecompliance risks?*
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63%
53%
45% 45%
36%
19%16%
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31Global mobility effectiveness survey Ernst & Young 2009
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IntheAmericas,immigrationissues(43%)arealsoseenasa
signicantcompliancerisk,whereasinEurope,accidentalexpa-
triates(77%)andcorporatetax(60%)seemtobebigchal-
lengesinadditiontoincometaxreportingandwithholding.
The Americas*
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Europe*
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Asia-Pacific*
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65%
57%
43%
30%
43%
14%
22%
60%
77%
49%
60%
30%
23%
7%
60% 60%
40%
20%
30%
20% 20%
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32 Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
8. Globalmobilityeffectiveness
Alargemajorityoftheparticipatingcompanies(71%)stated
thattheirglobalmobilityfunctionisveryeffectiveand25%
indicatedthatitiseffective.
AmericanandEuropeanheadquarteredcompaniesweremore
self-condentintheiranswerstothisquestionthanAsian-Pacif-
icoperationswhichjudgedonly30%oftheirIHRfunctionsas
veryeffectiveand50%aseffective.
How would you rate the effectiveness of your IHR function?
7FSZFGGFDUJWF
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Inordertoachieveexcellenceinglobalmobility,thesurveyed
companiesseeurgentneedofimprovementinthefollowing
areas:assignmentadministration(30%),costcontrol(26%)
andprocesses(26%).
Astheglobalmobilityfunctionthrivesforexcellence,thefollow-
ingthreeareaswereseenasrequiringthemosturgentneedfor
improvement:consistencyofpolicies,processesandstructure
(44%),centralizingglobalmobilityknowledge(31%)andthe
useoftechnologyandHRsystems(13%).
Where do you see the most urgent need of improvement in yourIHR functions? / What are your top priorities for this year?*
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30%
2 6% 2 6%
21%
10%9%
8%7%
5%4%
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33Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
Whencomparingthethreedifferentgeographicalareas,itisin-
terestingtoseethatintheAmericasassignmentadministration
(38%)andprocesses(34%)areprioritiesforimprovement,in
Europepolicies(23%)arethetoppriority,whereasinAsia-Pa-
cicprocesses(50%)andtax/compliance(38%)arethemost
importantareasofimprovement.
The Americas*
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NBOBHFNFOU
5FDIOPMPHZ
1PMJDZ
1SPDFTTFT
$PTUDPOUSPM
"TTJHONFOU
BENJOJTUSBUJPO
*Multipleanswerspossible
38%
28%
34%
21%
10% 10%7%
14%
7%
3%
21%
15%
21%23%
8% 8%
5%
8%
5% 5%
13%
0%
50%
13%
0% 0%
38%
0% 0% 0%
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34 Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
9. Costandcontrol
58%oftheparticipantsadmitthattheydonotknowtheexact
costsoftheirinternationalassignmentswhile22%statethat
theydonothaveacompleteoverview.Asaresultcompanies
willnotbeinapositiontoprovideexactguresforcostsavings
eitherbutapproximationsonly.
Do you have an overview of the cost of your assignments?
:FTCVUOPUFYBDUDPTUT
/PDPNQMFUFPWFSWJFX
:FTGVMMZ
EspeciallycompaniesfromAsia-Pacichavetoacknowledge
thattheydonothaveacompleteoverviewofthecostoftheir
assignments(36%).
Americancompanies,however,havethebestoverviewoftheir
assignmentcosts.25%afrmthattheyhaveafulloverviewand
withthisresultcomeinrstbeforecompanieswithheadquar-
tersinAsia-Pacic(18%)andinEurope(17%).
The Americas
:FTCVUOPUFYBDUDPTUT
/PDPNQMFUFPWFSWJFX
:FTGVMMZ
Europe
:FTCVUOPUFYBDUDPTUT
/PDPNQMFUFPWFSWJFX
:FTGVMMZ
Asia-Pacific
:FTCVUOPUFYBDUDPTUT
/PDPNQMFUFPWFSWJFX
:FTGVMMZ
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35Global mobility effectiveness survey Ernst & Young 2009
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Anoverwhelmingmajorityof81%ofthesurveyedcompanies
areplanningmeasurestosavecostsinglobalmobility.
Are you planning any measures to save costs in global mobility?
:FT
/P
EspeciallyintheAmericas,companiesintendtosavecostsin
IHR:85%oftheAmericanparticipantsareplanningsuchmea-
sureswhilemostofthecompaniesthatdonothavekeyinitia-tivesforcostsavingsarelocatedinAsia-Pacic(30%).
The Americas
:FT
/P
Europe
:FT
/P
Asia-Pacific
:FT
/P
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36 Global mobility effectiveness survey Ernst & Young 2009
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Asexpected,themajorityofrespondents(45%)declaretaxes
tobethemaincostdriversoftheirinternationalassignment
programs,followedbyhousing,whichwasnamedby26%ofthe
participatingcompanies.Otherresponses(13%)canbe
groupedintoallowances,exceptionstopoliciesandthecostof
assigneeswhoareoverstayingtheirassignments.
What is the main cost driver in your assignment program?
*OUFSOBUJPOBM
TDIPPMJOH
7FOEPST0UIFS)PVTJOH5BYFT
3FTQPOTFTJO
Thecompaniesoutofthethreegeographicareasreporta
signicantdifferencewhenaskedaboutthemaincostdriver
oftheirassignmentprograms.
CompaniesfromtheAmericas(55%)aswellasfromAsia-Pa-
cic(67%)assertwithanabsolutemajoritythattaxesarethe
maincostdrivers,whileonly30%ofthecompaniesfromEurope
canagreewiththisappraisal.InEurope,housingseemstobe
oneofthemaincostdrivers(30%)besidestaxes,followedby
vendors(18%).
The Americas
*OUFSOBUJPOBM
TDIPPMJOH
7FOEPST0UIFS)PVTJOH5BYFT
3FTQPOTFTJO
45%
26%
13%
12%
4%
55%
23%
10% 10%
2%
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37Global mobility effectiveness survey Ernst & Young 2009
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Europe
*OUFSOBUJPOBM
TDIPPMJOH
7FOEPST0UIFS)PVTJOH5BYFT
3FTQPOTFTJO
Asia-Pacific
*OUFSOBUJPOBM
TDIPPMJOH
7FOEPST0UIFS)PVTJOH5BYFT
3FTQPOTFTJO
30% 30%
15%18%
8%
67%
11%
22%
0% 0%
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38 Global mobility effectiveness survey Ernst & Young 2009
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Thefollowingquestionanalyzedwherecompaniesputtheirfo-
cusoncostsavingsintheirglobalmobilityprograms.Essential-
ly,theyseepossibilitiesforcostsavingsthroughimprovements
inglobalmobilityprocesses(52%)aswellasinlocalizations
(52%).Onethirdrespectivelyputtheirfocusonglobalmobility
policies,benetsandincentivizationaswellasonvendorman-
agementandoutsourcing.Whilewehaveseenbeforethattaxes
wereidentiedasthemaincostdriversofassignments,itisin-
terestingtoseethatonly21%focustheircostsavingsinitiatives
towardstaxes.Thisshowsthatmorelimitedsavingsrelatedto
taxesareexpected,orunderstoodyetastaxlawsinresponseto
theglobaleconomiccrisisarejuststartingtochange.
On which areas are you focusing your efforts to achieve cost savings?
4PDJBM4FDVSJUZQMBOOJOH
0UIFS
5BYQMBOOJOH
(MPCBM.PCJJUZ4USBUFHZ$PNQFOTBUJPOBQQSPBDI
7FOEPSNBOBHFNFOU
(MPCBM.PCJMJUZ1PMJDJFT#FOFGJUT*ODFOUJWJTBUJPO
-PDBMJ[BUJPOT
(MPCBM.PCJMJUZ1SPDFTTFT1SPDFTTFGGJDJFODJFT
3FTQPOTFTJO
52%
52%
34%
34%
33%
21%
10%
6%
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39Global mobility effectiveness survey Ernst & Young 2009
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CompanieswithheadquarterslocatedintheAmericasputtheir
prioritytoachievecostsavingsonlocalizations(41%),incon-
trasttoEuropeancompanieswhichexpectpossiblecostsavings
mainlyinglobalmobilityprocessesandincreasingprocessef-
ciencies(30%).
ConspicuouslyfewcompaniesheadquarteredinEuropefocus
ontaxplanningtoachievecostsavings(6%).
The Americas
4PDJBM4FDVSJUZQMBOOJOH
0UIFS
5BYQMBOOJOH
(MPCBM.PCJJUZ4USBUFHZ$PNQFOTBUJPOBQQSPBDI
7FOEPSNBOBHFNFOU
(MPCBM.PCJMJUZ1PMJDJFT#FOFGJUT*ODFOUJWJTBUJPO
-PDBMJ[BUJPOT
(MPCBM.PCJMJUZ1SPDFTTFT1SPDFTTFGGJDJFODJFT
3FTQPOTFTJO
32%
41%
20%
20%
20%
21%
7%
2%
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40 Global mobility effectiveness survey Ernst & Young 2009
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Europe
4PDJBM4FDVSJUZQMBOOJOH
0UIFS
5BYQMBOOJOH
(MPCBM.PCJJUZ4USBUFHZ$PNQFOTBUJPOBQQSPBDI
7FOEPSNBOBHFNFOU
(MPCBM.PCJMJUZ1PMJDJFT#FOFGJUT*ODFOUJWJTBUJPO
-PDBMJ[BUJPOT
(MPCBM.PCJMJUZ1SPDFTTFT1SPDFTTFGGJDJFODJFT
3FTQPOTFTJO
Asia-Pacific
4PDJBM4FDVSJUZQMBOOJOH
0UIFS
5BYQMBOOJOH
(MPCBM.PCJJUZ4USBUFHZ$PNQFOTBUJPOBQQSPBDI
7FOEPSNBOBHFNFOU
(MPCBM.PCJMJUZ1PMJDJFT#FOFGJUT*ODFOUJWJTBUJPO
-PDBMJ[BUJPOT
(MPCBM.PCJMJUZ1SPDFTTFT1SPDFTTFGGJDJFODJFT
3FTQPOTFTJO
30%
28%
25%
22%
17%
6%
7%
4%
43%
43%
36%
36%
36%
21%
0%
7%
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41Global mobility effectiveness survey Ernst & Young 2009
Global mobility effectiveness survey
Onaverage,95%oftheparticipatingcompaniesareexpectedto
reducetotalassignmentcostsby12%.Themajorityconsiders
5%to10%ofcostsavingsasrealistic.Onlyfew(5%)expectto
save30%andmoreoftheirassignmentcosts.
By what percentage are you expected to reduce total assignment costs?
qqq
3FTQPOTFTJO
Averyvaryingpictureisshowingwhenlookingattheexpected
reductionoftotalassignmentcostsinthethreegeographicar-
easofoursurvey.
Asian-Paciccompaniesexpectthehighestcostreductions
(100%expecttoreduceonaverage16%oftheircosts),fol-
lowedbyAmericancompanies(91%expecttoreduceonaver-
age13%oftheircosts)while97%oftheEuropeancompanies
onlyexpecttoreduceonaverage10%oftheirtotalassignment
costs.
The Americas
qqq
3FTQPOTFTJO
29%
42%
16%
9%
9%
12%
48%
15% 15%
9%
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42 Global mobility effectiveness survey Ernst & Young 2009
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Europe
qqq
3FTQPOTFTJO
Asia-Pacific
qqq
3FTQPOTFTJO
Themajority(57%)isstillnotforcedbycostpressuretoreduce
thetotalnumberofassignees,while43%saythattheyareplan-
ningtoreducethenumberoftheirassignees.
Are you forced by cost pressure to reduce the total number ofassignees?
/P
:FT
44%
32%
18%
3% 3%
38% 38%
13% 13%
0%
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43Global mobility effectiveness survey Ernst & Young 2009
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Itisstrikingthat53%ofcompaniesheadquarteredintheAmeri-
casareforcedbycostpressuretosendpresumablylessassign-
eeswhileonly39%ofEuropeanand27%ofAsian-Paciccom-
panieshavetotakethismeasure.
The Americas
/P
:FT
Europe
/P
:FT
Asia-Pacific
/P
:FT
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44 Global mobility effectiveness survey Ernst & Young 2009
28%oftheparticipantsexpectthattheheadcountoftheirglobal
mobilityteamwillbereducedduetothecurrenteconomic
situation.Itisinterestingtoseethisresult,whenitisunder-
stoodthat35%believethattheirIHRisalreadyunderstaffed
and61%feelthatthenumberoftheirdedicatedstaffisjust
right.
Do you expect that the headcount of your global mobility team will bereduced by the current economic situation?
/P
:FT
EspeciallyAmericanheadquarteredcompaniesexpectthatthe
headcountoftheirglobalmobilityteamwillbereducedbythe
currenteconomicsituation(34%),whereasonly27%ofthe
Europeancompaniesand18%oftheAsian-Paciccountries
presumeareductionoftheirdedicatedstaff.
The Americas
/P
:FT
Europe
/P
:FT
Asia-Pacific
/P
:FT
Global mobility effectiveness survey
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45Global mobility effectiveness survey Ernst & Young 2009
Theanswerstothefollowingquestionshowthatcostpressureis
responsibleforhaltedinitiativesandprojectsinglobalmobility.
Mostprojectsandinitiativesinglobalmobilityaretraditionally
aimingtoincreasetheefciencyandcomplianceofinternation-
alassignmentprogramsandthereforegeneratingcostsavings
inthemid-andlong-term.Thefactthatathirdoftherespond-
entswillstopprojectsandinitiativesissurprisingandmaylead
toareevaluationonhowprojectsarepositionedwithintheor-
ganization.
Did you have to stop any initiatives and projects due to the currenteconomic situation?
/P
:FT
Inallthreegeographicareasthecurrenteconomicsituationis
responsibleforhaltedprojectsinglobalmobility.Slightlymore
companiesfromAsia-Pacicreportedthattheyhadtostopinitia-
tives(36%)thanfromtheAmericas(33%)orEurope(33%).
The Americas
/P
:FT
Europe
/P
:FT
Asia-Pacific
/P
:FT
Global mobility effectiveness survey
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46 Global mobility effectiveness survey Ernst & Young 2009
Whilerecentsurveysshowedthattheawarenessforriskinglob-
almobilityisalreadyhigh,ourresultshowsthatwhile71%state
thattheirawarenesshasnotchanged,almost30%havenowan
evenbiggerfocusonrisks.
Has your awareness of risks in global mobility (compliance, financial,reputation) changed in the current economic situation?
/PPVSBXBSFOFTT
IBTOPUDIBOHFE
:FTUIFSFJTBCJHHFS
GPDVTPOSJTLT
:FTUIFSFJTMFTT
GPDVTPOSJTLT
EspeciallycompaniesfromtheAmericas(33%)andfromAsia-
Pacic(36%)reportthattheirawarenessofrisksinglobalmo-
bilityhasincreasedduetothecurrenteconomicsituation.
The Americas
/PPVSBXBSFOFTT
IBTOPUDIBOHFE
:FTUIFSFJTBCJHHFS
GPDVTPOSJTLT
:FTUIFSFJTMFTT
GPDVTPOSJTLT
Europe
/PPVSBXBSFOFTT
IBTOPUDIBOHFE
:FTUIFSFJTBCJHHFS
GPDVTPOSJTLT
Asia-Pacific
/PPVSBXBSFOFTT
IBTOPUDIBOHFE
:FTUIFSFJTBCJHHFS
GPDVTPOSJTLT
Global mobility effectiveness survey
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47Global mobility effectiveness survey Ernst & Young 2009
Contacts
Global mobility effectiveness survey 2009
KevinCornelius
Partner,HumanCapital
Phone+41582865678
Fax+41582865660
ChrisDebner
SeniorManager,HumanCapital
Phone+41582863228
Fax+41582863190
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