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  • 8/12/2019 Us Talent Smartmoves 062410 (1)

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    Talent

    Smart movesA new approach tointernational assignmentsand global mobility

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    ContentsContents

    1 Global mobility for global businesses

    2 Why global mobility? Why now?

    4 A new framework for global mobility

    9 Developing global talent

    10 Business benets of effective global mobility

    11 Compliance and global mobility

    12 Tax and global mobility

    13 Total rewards and global mobility

    14 Technology and global mobility

    15 Taking action

    17 Do your global mobility capabilities measure up?

    18 Smart moves

    20 Contacts

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    Smart moves A new approach to international assignments and global mobility

    Global mobility forglobal businesses

    Companies must adopt a new approachthat makes global mobility a standardoperating practice one that is fast,

    exible, ef cient, and repeatable.

    Globalization and other key business trends are raising thebar on global mobility. As companies do more and morebusiness across national borders, they need the ability tomove their people around quickly and easily. They alsoneed leaders and employees with global experience tohelp manage and run their broad, geographic operations.

    Unfortunately, many companies are discovering thatexisting programs for handling international assignments

    dont address these emerging needs. Such programshave traditionally revolved around offering high-touchservice for a small number of long-term relocations. Buttoday, that narrow view of global mobility just isnt goodenough.

    To address the challenges and achieve their strategicgrowth objectives, we believe companies must adopta new approach that makes global mobility a standardoperating practice one that is fast, exible, efcient, andrepeatable.

    Although an increasing number of companies have begunto recognize the need for improved global mobility,most still have a long way to go. In a recent survey of

    HR executives, 43% said they personally consider globalmobility to be a key business competency; however, only10% said their company currently shares that view. 1

    Its time for companies to make a focused effort toenhance their global mobility capabilities. This bookexamines the growing need for improved global mobilityand presents a practical approach to help make it happen.

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    2 Smart moves A new approach to international assignments and global mobility

    Why global mobility? Why now?

    The new requirements for globalmobility are being driven by four typesof challenges: business environment,internal expectations, complianceenvironment, and talent environment.

    The business world is changing and global mobilityprograms need to maintain pace. Traditionally,international assignments have been managed as ahigh-touch, low-volume activity. Every move receivesspecial handling, and the main focus is on addressing theemployees short-term needs (a relocation that is pleasantand hassle-free) without much thought to long-termemployee development or the strategic needs of thebusiness. In the future, this one-dimensional approach to

    global mobility simply wont do.

    Pressure onglobal

    workforcemobility

    Talent environment Talent shortage Next generation workers Need for global

    leadership

    Compliance environment Rapid regulatory changes Increased scrutiny Different requirements

    for different countries

    Internal expectations Global mobility (GM)

    that ts the needs ofthe business

    GM as a standardbusiness practice

    Return on GMinvestments

    Business environment Globalization New market entry Workplace innovations

    The new requirements for global mobility are being drivenby four types of challenges (Figure 1).

    Business environment. Globalization is driving the needfor global mobility by increasing the number and variety ofinternational assignments. In particular, emerging marketssuch as Brazil, Russia, India, and China are fueling theglobal mobility trend as companies in mature economieslook abroad to achieve their aggressive growth objectives.

    Technology and workplace innovations are also a factor,making it possible for companies to overcome traditionalbarriers of time and space and providing new alternativesto long-term relocation.

    Talent environment. Global talent trends such as babyboomer retirements, aging workforces, and declininginterest in science and technology education are creatinga chronic shortage of critical talent. To survive and thrive,companies must nd ways to tap into the worlds talentwherever it happens to reside and deploy it wherever itsneeded. They also must use international assignments tocultivate leaders with global experience to help run their

    increasingly broad, geographic operations.

    In a recent survey, HR executives said their global mobilitystaff spends most of its time on transaction issues suchas compensation, benets, and cost management. 2

    Meanwhile, the need for talent management is virtuallyignored. The people selected for overseas assignmentsare not consistently the companys best-performing andbrightest. And returning employees often lack a plannedlanding pad to ease their re-entry and harness the newskills and experience they have gained. In fact, many ofthese employees leave the company shortly after theirassignment ends.

    Figure 1. Four challenges driving new global mobility requirements

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    Smart moves A new approach to international assignments and global mobility

    Internal expectations. To become a standard tool forcompetitiveness and growth, global mobility programsmust do a better job of meeting the needs of thebusiness; deliveringfast service that can keep pace withthe requirements of a rapidly changing market. Offeringexible options to t a variety of situations. And applyingrepeatable and efcient methods that help deliver apositive result for every assignment.

    Today, most programs revolve around the needs of theemployee not the needs of the business with littleregard for cost (see sidebar entitled A cold, hard exampleabout global mobility). Every assignment is treated as aspecial case that requires signicant manual effort anda long lead time. Meanwhile, the business rationale foran assignment is often not clearly dened, and thereis generally no formal tracking mechanism to evaluatean assignments ROI impact on short-term businessperformance or long-term leadership development.

    Compliance environment. Accounting scandals andother corporate missteps have put businesses under

    greater scrutiny than at any time since the 1930s. Newregulations are being introduced in rapid succession,and there is no relief in sight. Of course, the problem isexponentially worse for companies that operate acrossnational borders and must, therefore, comply with abewildering and often conicting array of local,national, and international regulations. Moreover, the risksrelated to global compliance continue to mount. On astrategic level, companies continue to aggressively pushfor global growth. But on a tactical level, many are notdevoting enough attention and resources to the detailsof local and international compliance. This dichotomyputs global companies and local regulators on a collisioncourse.

    A cold, hard example about global mobilityIn 2006, a global organization with approximately400 international deployments spent nearly U.S.$100 million on global mobility. Traditional long-term assignments accounted for over 60% of thistotal, yet only represented 10% of the deployments.In addition, the organization had very little controlover how deployment decisions were made.

    The vast majority of assignments were to countrieswith large pools of qualied local talent suchas the U.S. and Australia meaning that manyof the moves may not have been necessary. Evenworse, moves were often justied as developmentopportunities, yet fewer than half of the long-term expatriates were considered high-potentialtalent. In short, the organization was spending upto $50 million on global deployments that wereunnecessary or not aligned with longer term talentobjectives.

    These numbers made a strong case for change.

    The good news is that the company has alreadyimplemented a new mobility platform that providesstructured decision-making around this importantand signicant investment. In addition to improvedefciency, exibility, and bottom-line savings, theorganization is seeing a greater return on everydollar it invests in global mobility.

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    4 Smart moves A new approach to international assignments and global mobility

    A new framework forglobal mobility

    Different assignments can have differentvalue for the business, as well as differ-ent value for helping employeesdevelop new skills and capabilities.

    As global mobility grows in importance and complexity,companies need a framework to help them design a fullrange of programs and options and to help the businesschoose the right t for a particular situation. At themoment, many companies still apply a one-dimensionalapproach to every international assignment. And in therare cases where the business is offered a variety ofoptions, it often doesnt have an easy way to choose.

    The global mobility framework is built around two keydimensions: business value and development value (Figure2). It reects the fact that different assignments can havedifferent value for the business, as well as different valuefor helping employees develop new skills and capabilities(something in which the employee and business both havea vested interest). This multi-dimensional approach givescompanies a wider range of options for deploying peopleglobally.

    Assignments that have high business value andhigh development value are considered a strategicopportunity . These assignments have a signicant andlasting impact on the company and should be reservedfor a companys most valuable employees the nextgeneration of leaders. Global mobility programs forthese types of assignments go beyond what is currentlyoffered, not only providing participants with a satisfyinginternational experience, but also actively working tomaximize development and retention.

    At the other end of the spectrum, a commodity job

    is an assignment with both low business value andlow development value. These assignments need to bedone but dont have a lot of upside for the business orthe employee. They are targeted at individuals who areinterested in working abroad for personal reasons, butdont need or expect much in terms of business perksand support.

    Between those two extremes are assignments that havehigh value on one d imension but not on the other.

    A learning experience has high development valuebut relatively low business value. It is most appropriatelysuited for rising stars: employees with long-termpotential who are worth investing in, even if theimmediate pay-off is relatively low. Global mobilityprograms for these types of assignments are a scaled-back version of the current expat model. Althoughassignees are well cared for, they are expected toshoulder part of the burden and costs as a personalinvestment in their own capabilities and value.

    Figure 2. Global mobility framework

    D e v e

    l o p m e n

    t v a

    l u e

    Low

    Learning experience Strategic opportunity

    Skilled position(management or technical)

    Target employees: Demonstrated performers

    Deep, specialized skill sets

    GM approach: Short-term or local plus

    Project-based assignments

    Rapid deployment

    Business value HighLow

    High

    Commodity job

    Target employees: Volunteers

    Low-cost talent

    GM approach: Minimal perks and support

    Local transfers

    At risk assignment

    Target employees: Rising stars

    Employees looking for diversity inexperience and personal growth

    GM approach: Expat light

    Focus on development

    Expect participants to bear some ofthe burden

    Target employees: Future leaders superstars

    GM approach: Expat plus

    Focus on development, experienceand retention

    Enhanced future opportunities

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    Smart moves A new approach to international assignments and global mobility

    Option 1: Strategic opportunityGlobal companies need leaders with global experience.Strategic opportunity assignments are a means for peopleto obtain that experience. Global mobility programs thatsupport strategic opportunities are expensive but rightlyso. After all, they focus on delivering high-quality businessvalue and developing a companys most promising talent

    the next generation of leaders.

    The good news is that for most companies their existingglobal mobility infrastructure probably provides a solidfoundation for supporting this new type of assignment.They simply need to increase their emphasis ondevelopment and retention. With a strategic opportunity,the business is making a major long-term investmentto develop its most valuable employees, and it needsto receive a strong return on that investment. Criticalactivities include:

    Dening a clear career path for every high-potentialemployee, with a strong understanding of how aparticular overseas assignment will contribute to thatpersons development

    Setting clear expectations about development goals,the repatriation process, and future jobs

    Monitoring the employees return date and lining up anappropriate position that puts the person back on thecompanys fast track

    The nal type of assignment is the skilled position .These assignments have high business value butrelatively low development value. Ideal candidates aredemonstrated performers with highly specialized skills people who are already performing at or near their fullpotential. The objective should be to ll these positionswith local talent; but until that happens, the companymust bear the burden of keeping these high-impactemployees on assignment.

    This multi-dimensional framework gives businesses afull range of global mobility options and provides a toolto help them choose the right type of assignment for aparticular situation.

    These activities improve development and retention bycreating a positive experience for the employee and byreducing the chances for misunderstandings when theassignment is complete.

    Achieving expected results requires strong collaborationbetween the global mobility function and the talentmanagement function, as well as with corporateheadquarters and the business units. These groups have

    a keen interest in (1) connecting top talent with theright opportunities, (2) helping them get comfortable sothey can have an effective experience, and (3) smoothlybringing them back to a position where their newlydeveloped skills and experience can be used to their andthe companys advantage.

    Keys to achieving expected resultsTarget the best-of-the-best performers. Focus ondevelopment and retention so the company gets a returnon its major investment.

    ExampleA business is expanding its manufacturingoperations in India and needs a general managerto plan and lead the effort. The talent managementfunction collaborates with the global mobilityfunction to identify candidates with the right skillswho are looking for an overseas developmentopportunity. The global mobility group worksclosely with the selected individual to complete themove quickly and efciently in compliance withlocal regulations. It also makes sure the appropriatetalent management infrastructure is in place including goals, development objectives, and a

    repatriation strategy which helps to facilitate apositive experience. Two or three months beforethe assignee returns, the talent managementfunction gets involved to line up an appropriatesenior-level position that puts the individuals newskills and experience to good use.

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    6 Smart moves A new approach to international assignments and global mobility

    Option 2: Learning experienceThese assignments primarily focus on long-term employeedevelopment, not short-term business performance.Employees are given an opportunity to develop newcapabilities and global experience, which helps themincrease their personal value and marketability.

    Ideal candidates are high-potential employees who wantto dramatically improve their skills and qualications and

    are willing to make a personal investment to achievetheir goals. These ready and willing participants shouldexpect fewer relocation benets than with a traditionalforeign assignment or strategic opportunity. The globalmobility function will help with the move, but the servicelevels and terms of the relocation package will be scaleddown.

    A learning experience is a strategic investment for boththe employee and the company. Each is betting that theresulting personal development will signicantly increasethe employees value over the long haul. To help facilitatean acceptable return on this development investment,

    the global mobility function must work closely with thebusiness and the talent management function, particularlyin the areas of performance management and careerdevelopment.

    An active focus on talent management is especiallyimportant near the end of the assignment to effectivelytransition the employees newly acquired skills andexperience in a manner that they arent lost or wasted.Employees returning from a learning experience mightbe expected to take the lead in nding a new position;however, the global mobility function can help byproviding standard processes and tools that enablereturning employees to rebrand and market themselves

    within the company.

    Keys to achieving expected resultsTarget up-and-coming employees who are willing to investin their own careers. Put their new skills and capabilities towork as soon as the assignment is complete.

    ExampleA rising star would like to get a global view ofthe organization and expresses an interest ingoing abroad to work with a variety of divisionsand functions. The global mobility and talent

    management functions work with the businessto nd the right opportunity. At the end of theassignment, the employee returns to lead a largeM&A project.

    An employees earning potential isa direct function of his or her skills,capabilities, and experience andinternational experience is one of themost effective ways for people toincrease their value.

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    Smart moves A new approach to international assignments and global mobility

    Option 3: Skilled positionThis category centers around lling workforce gaps withdeep, specialized talent for a limited period of time similar to the way a company might use contractors totemporarily address gaps in their regular workforce. Thedifference is that these assignments use a companysinternal employees to ll workforce gaps in anothercountry.

    In the past, the global mobility function often didnt havevisibility to these kinds of situations. Assignments werehandled ad hoc within the business with mixed resultsin terms of efciency, effectiveness, and compliance.However, as global businesses become more complexand specialized, these types of assignments are becomingincreasingly common. This provides a signicantopportunity for the global mobility organization toincrease its contribution to the business, providing thecompany with greater exibility to respond to criticalopportunities and threats.

    From the companys perspective, the priorities for global

    mobility are clear: get the specialized talent where itneeds to be quickly and efciently while complyingwith the myriad of rules and regulations associatedwith an international assignment. From the employeesperspective, the priorities are equally clear: execute acomfortable, stress-free move that lets them focus onthe job at hand; then bring them home as quickly andpainlessly as possible.

    Keys to achieving expected resultsCreate a pool of specialists who can be deployed quicklyand easily. Focus on speed, efciency, and compliance.

    ExampleA company needs help establishing a new oilrenery in Saudi Arabia. The global mobility groupnds an employee with deep experience in gettingreneries up and running and relocates her toSaudi Arabia in less than six weeks. The work iscompleted within three months, at which point theemployee returns to her previous position.

    Option 4: Commodity jobSome employees have a strong desire to work abroad(as a matter of personal preference), even if the potentialbusiness value and development value are low. Of course,

    just because an employee wants to move to anothercountry, it doesnt mean there is necessarily an opportunitythat makes sense. It is up to the employee, the employeesmanager, and the talent management function to nd anassignment that ts.

    Relocation benets and support for a commodity jobare generally minimal, with employees expected to handlemost or all of their moving expenses. These assignmentsmay produce ancillary benets for the employee andcompany such as personal development and cross-fertilization of talent but these results are not deliberateor planned. Achieving expected results hinges on theglobal mobility function building the operating processesand infrastructure to drive required efciency whilefacilitating compliance with applicable regulations.

    Keys to achieving expected results

    Employees volunteer for these assignments and receiveminimal benets. Global mobility programs focus oncompliance and efciency.

    ExampleAn employees spouse has received an offer towork in another country. The employee wants tostay with the company but needs to relocate. Theperson applies for a job in the targeted country,interviews with the local hiring manager, receivesan offer, and accepts the position. The globalmobility group is notied and helps coordinate andadminister the move but with no additional perks.The employee is responsible for all moving costs.

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    8 Smart moves A new approach to international assignments and global mobility

    Changing how people think about global mobilityAsk people to name their most valuable asset and they will probably say its their house. But in most cases, a per-sons most valuable asset is actually their future earning potential. For example, a person who can earn $100,000per year is like a $1 million asset that generates a 10% annual return.

    An employees earning potential is a direct function of his or her skills, capabilities, and experience andinternational experience is one of the most effective ways for people to increase their value. Yet most peoplestill view an overseas assignment as a sacrice and expect to be compensated for their trouble. This mentalitymight have made sense in the past, but in todays increasingly global business environment, it just doesnt t.

    For global mobility to thrive, people need to recognize that international assignments dont just create valuefor the business but for the employees themselves. As such, employees should view a foreign assignment as anopportunity to be embraced, not a hardship that requires compensation. Moreover, the specic assignmentsshould be seen for what they really are: a privilege reserved for a companys most valuable employees and a keyentry point to the fast track.

    Helping employees recognize the benets of working abroad opens up a whole new range of options optionswhere the company and employee share the cost (and benets) of an international assignment.

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    Smart moves A new approach to international assignments and global mobility

    Helping employeesrecognize the bene ts ofworking abroad opens

    up a whole new range ofoptions.

    Achieving the highest development value of aninternational assignment doesnt happen automatically.It requires a deliberate and conscious effort to tailor acompanys talent management programs, strategies, andpractices to the different needs of each participant.

    The key to achieving expected results is taking a holisticapproach that spans the entire assignment lifecycle(Figure 3).

    The starting point is to help employees develop a clearcareer path. This should happen well in advance of anyforeign assignment.

    Once an appropriate assignment has been found, thecompany must help the employee understand theobjectives of the assignment and develop a strong supportsystem if they dont already have one in place. That meanshelping the employee create new connections in thehost organization, while maintaining strong connectionsback home; providing customized mentoring servicesto help the employee be effective while on assignment;making sure the employees family is comfortable in the

    new environment; and, as the end of the assignmentdraws near, helping the employee nd an appropriateposition that takes advantage of newly acquired skills andexperience.

    Candidateselection anddeployment

    On assignment

    Job identicationand evaluation

    Talent assessmentprocess

    Successionplanning andredeployment

    Developing globaltalent

    Figure 3. International assignment lifecycle

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    10 Smart moves A new approach to international assignments and global mobility

    Creating a positive experience for

    assignees and their families while alsore ecting the changing needs of thebusiness can result in a wide range ofbene ts.

    Traditionally, global mobility programs have soughtto create a positive experience for assignees and theirfamilies. This new, more comprehensive approach that weare describing continues to support that goal, while alsoreecting the changing needs of the business. This canresult in a wide range of benets:

    Reduces costs. Delivers the appropriate level ofbenets and support for each assignment. Uses

    methods and tools that are efcient and repeatable.Improves visibility to costs.

    Develops talent. Makes talent development a toppriority. Helps develop leaders with global experience.

    Fits the needs of the business. Offers exibleoptions to address a wide range of needs.

    Business bene ts ofeffective global mobility

    Improves ROI. Places returning employees intopositions that capitalize on their new skills andexperience, improving retention and business value.

    Reduces the risk of non-compliance. Facilitates arigorous and consistent approach to complying withrules and regulations at every level.

    Supports global growth. Gets the right resources in

    place, quickly and efciently. Handles a high volume ofglobal mobility assignments.

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    Smart moves A new approach to international assignments and global mobility

    More and more companies areadopting a zero defect mentalityfor compliance.

    Moving people across national borders raises a vast array ofcompliance issues that can have signicant consequencesfrom bad publicity to monetary penalties to jail terms.

    Compliance issues related to global mobility are not justtheoretical they are very real. In some cases, companieshave been prohibited from importing workers into acountry, effectively crippling their local operations. In othercases, companies in regulated industries such as nancial

    services and pharmaceuticals have found themselvescompletely barred from operating within a particularnations borders.

    In the wake of Sarbanes-Oxley (and similar legislationoutside of the United States), companies are expectedto be whiter than white when it comes to compliance.Compliance requirements are broad and diverse,ranging from individual corporate policies to localemployment laws to regional requirements for dataprivacy and right to work. Audit and control requirementsare also a signicant compliance issue. Even the hint of aproblem in any of these areas can send investors running

    for the exits.

    Compliance andglobal mobility

    That is why more and more companies are adoptinga zero defect mentality for compliance. Of course,achieving the goal of zero defects can be a hugechallenge, particularly for large, global companies thatoperate in hundreds of countries each with its ownlaws and regulatory requirements.

    To overcome these challenges, companies must facethe full spectrum of compliance requirements head on.

    Keys to achieving this objective include (1) providing theentire company with clear governance and direction oncompliance issues, (2) understanding the data, process,controls, and technology that will be required, and (3)deploying a service delivery model that is specicallydesigned to support effective compliance.

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    12 Smart moves A new approach to international assignments and global mobility

    Effective tax planning forglobal mobility can savea company millions ofdollars a year.

    Tax is typically the single biggest expense associated withinternational assignments. Companies and employeesmay be subject to taxation in several different countries,including the employees host country, home country,and any country the employee travels to for work-relatedactivities. Moreover, these tax obligations often continuelong after an assignment is complete driven by equityawards and other forms of deferred compensation.

    The costs and complexity of international tax can be ahuge impediment to global mobility. The good news isthat while these factors cannot be completely eliminated,they can usually be managed to a point where they arenot deal breakers.

    Effective tax planning for global mobility can save acompany millions of dollars a year. Consider, for example,the tax costs associated with providing housing for anexpatriate family of four in Japan. Annual rent in Tokyocan easily cost as much as $175,000, which wouldnormally produce a tax obligation to the Japanesegovernment of $120,000. However, through a planning

    technique available under Japanese law, it is possible fora company to impose a de minimus legal rent thatwould reduce its tax burden to as little as $9,000 a year,generating an annual tax savings of $111,000 for that oneassignment alone.

    Improved tax planning for global mobility can helpa company strategically relocate its people withoutbeing overly constrained by the cost and complexity ofinternational tax. And from a strategic perspective, thatoperational exibility can be even more valuable than theactual cost savings.

    Tax and globalmobility

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    Smart moves A new approach to international assignments and global mobility

    Companies are discovering that aholistic approach to total rewards andglobal mobility can be both moresatisfying for the employee and morecost-effective for the business.

    Traditional global mobility programs often feature lavishexpatriate compensation and benet plans, coupledwith expensive allowances for things such as housing,schooling, and home visits. Another major expense thatis less visible is the cost of providing retirement benetsfor expatriates working in a variety of countries underdifferent social security regimes and retirement plans. Thetypical response to these challenges is to spend, spend,spendand then deal with consequences later. Of course,

    the net result is that even short-term transfers can beextraordinarily complex and expensive.

    Thankfully, many companies are discovering that a holisticapproach to total rewards and global mobility can be bothmore satisfying for the employee and more cost effectivefor the business. The appropriate approach varies fromcompany to company, depending on the nature andvolume of the required moves, the companys nancialand human resource objectives, and its tolerance for risk.However, there are a number of key principles that applyto almost every situation:

    Avoid a one-dimensional approach tocompensation and benets. Not every cross-border move warrants equal treatment. For example,an unmarried junior engineer going on a short-termassignment to open a new plant has different needsthan a senior executive with a family who is relocatingfor ve years. Applying a variety of approaches is notonly cheaper, it just makes more sense for todaysvarying requirements.

    Total rewards andglobal mobility

    Dont over-compensate. In many situations, aforeign assignment is a win-win for both the companyand the employee. Companies should recognize thepersonal and development value of each assignment,rather than trying to make every employee nanciallywhole.

    Align rewards with talent management. Fairand competitive compensation programs are critical

    to motivation and retention, but they need to alignwith the companys global talent needs and talentmanagement programs.

    Be creative. The usual way of doing things isntconsistently the better way, particularly for somethingas complex as global mobility. For example, it mightbe better to design a special retirement program forglobally mobile employees, rather than bending overbackwards to keep everyone enrolled in their standardprograms back home.

    Surpass expectations. When it comes to total

    rewards and global mobility, there are no secrets.International airport lounges are lled with executivescomplaining or boasting about their relocationpackages. The preferred way to tackle the problem is toset fair and reasonable expectations and then surpassthem.

    In the past, compensation and benets were animportant but extremely expensive part of the globalmobility equation. Today, forward-thinking organizationare adopting a holistic approach to rewards and globalmobility that is more effective and more efcient atmeeting the cross-border needs of a business and itsemployees.

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    14 Smart moves A new approach to international assignments and global mobility

    Technology initiatives to supportglobal mobility are subject to thesame principles as any effective HRsystem deployment.

    Technology can help a company dramatically improve itsglobal mobility capabilities. However, technology shouldnever be the primary focus; it is simply an enabler.

    When used appropriately, global mobility systems canhelp a company stay abreast of the global talent pipeline,identify and address compliance issues, track and gathercost data and other critical information, and efcientlydeliver compensation and benets to employees working

    abroad.

    Technology andglobal mobility

    Global mobility is a service with a well-dened set ofcustomers, roles and responsibilities, and tools. As such,technology initiatives to support global mobility aresubject to the same principles as any effective HR systemdeployment:

    Use globally consistent systems and processes.Whenever possible, use a global HR system, a singleglobal intranet, and well integrated web tools. Tryto avoid customizing standard applications. Off-the-shelf, vanilla systems are much easier to support andmaintain.

    Focus on quality and customer satisfaction.Focusing on service quality is more likely to producerich, employee-facing solutions and high-qualityprocesses.

    Strike a balance between service and self-service. Design and implement a balanced supportmodel that encourages employees to be as self-reliantas possible.

    Follow the crowd. Try to use industry-standardsystems and tools for service delivery wheneverpossible. Sometimes, it just doesnt pay to be different.

    Choose the right metrics. Global mobility systemsshould be measured using a broad set of businessmetrics, including: quality (as measured by defects permillion), costs, employee satisfaction, critical incidents,number of support calls, throughput times, and use ofself-service tools.

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    16 Smart moves A new approach to international assignments and global mobility

    Step 2: TransformEstablish new global mobility capabilities to supportthe visionFor many companies, this new approach to global mobilitywill require new systems, policies, and processes. It mayalso require global mobility staff with d ifferent trainingand experience.

    Here are some ways to achieve the required capabilities:

    Establish standard worldwide policies for globalmobility.

    Develop consistent systems, processes, and tools.

    Create a Center of Excellence for global mobility.

    Outsource non-core activities that can be deliveredmore efciently by a third party to allow the globalmobility staff to focus on the things that really matter.

    Train staff to focus on customer service, not just process

    administration.

    Provide planning tools to help the business understandand manage assignment costs.

    Create reports and analyses to monitor thedevelopment and business value of global mobilityassignments.

    These capabilities provide the critical infrastructure tosupport a companys long-term global mobility strategy.

    Step 3: Rebrand Spread the word about what global mobility can doGlobal mobility programs can only add value to thebusiness if employees and business leaders know aboutthem and put them to use.

    Here are some ways to change how people look at globalmobility.

    Actively communicate the global mobility valueproposition to each customer group. For employees,focus on personal development not lavish benetsand cushy assignments. For the business units andcorporate, reposition global mobility as a exible,business-oriented solution not a narrow approachthat only caters to the needs of the employee.

    Help business leaders understand the interplay betweenthe global mobility function and the HR function sothey can use global mobility services more effectively.

    Make global mobility an integral part of the business

    and HR strategy. Incorporate global mobility into key HRand business initiatives.

    Improving the global mobility brand can help create avirtuous cycle that drives up demand for global mobilityservices while attracting better talent into the program.

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    Smart moves A new approach to international assignments and global mobility

    Heres a quick comparison to help determine where your global mobility capabilities currently stand.

    Old way

    One-size-ts-all approach.

    Low volume of assignments, each requiring specialhandling.

    Process is slow and inefcient, making it hard torespond to new opportunities.

    Emphasizes the employees short-term needs.

    Focuses on relocation administration (transactions,compensation, benets, etc.).

    Selected employees not consistently an effective t.

    Once assigned, employees are on their own. Manyleave shortly after returning from assignment.

    Ad hoc approach to compliance exposes company tosignicant risk.

    New way

    Flexible approach that offers a full range of options,from commodity jobs to strategic opportunities.

    Efcient and repeatable methods and tools that canhandle a high volume of assignments.

    Supports global growth by getting the right resourcesin place fast.

    Addresses the short- and long-term needs of theemployee and business.

    Focuses on talent development. Helps develop leaderswith global experience.

    Different options for different types of employees.Specic opportunities reserved for employees withhigh-quality potential.

    Assignments are managed throughout their lifecycle.Returning employees are placed in positions thatcapitalize on their new skills and experience improving retention and business value.

    Consistent and rigorous approach to compliancereduces risk.

    Do your global mobilitycapabilities measure up?

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    18 Smart moves A new approach to international assignments and global mobility

    Now is the time for action.

    In todays increasingly global marketplace, companiescant afford to treat global mobility as a niche activitythat requires special handling. They need to developstandard global mobility capabilities that are fast, cost-

    efcient, effective, and repeatable. They also need to useinternational assignments as a way to develop their nextgeneration of leaders.

    The traditional one-size-ts-all approach to global mobilityis no longer good enough. Global businesses need a fullrange of options to address a variety of situations, fromstrategic assignments to commodity jobs and everythingin between.

    Smart moves

    An effective global mobility program must offer servicesand options that t the needs of the business and itsemployees, delivering high value at a low cost. At thesame time, it must address critical issues such as regulatorycompliance and tax, which can prevent a business fromusing global mobility to its advantage.

    Going forward, global business will be the primarysource of growth for many companies. Organizations will

    source talent from all over the world. And internationalassignments will be business as usual.

    To achieve desired results in this new environment,companies will need to dramatically improve their globalmobility capabilities. Now is the time for action.

    Endnotes1 Global Mobility: A Pivotal Talent and Bottom-Line Issue for Growing

    Companies, Deloitte, 2007.

    2 Ibid.

    3 Ibid.

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    Smart moves A new approach to international assignments and global mobility

    Contacts

    Jeff SchwartzPrincipal, Human CapitalGlobal and U.S. LeaderTalent ServicesDeloitte Consulting LLP+1 703 251 1501

    [email protected]

    Brett C. Walsh

    Principal, Human CapitalEMEA Practice LeaderHuman CapitalDeloitte MCS Limited+ 44 20 7007 [email protected]

    Richard KleinertPrincipal, Human CapitalAsia Pacic Practice LeaderDeloitte Consulting LLP+64-9-3030766 [email protected]

    Richard WildtPrincipal, Human CapitalDeloitte Consulting LLP+1 [email protected]

    Michael GretczkoSenior Manager, Human CapitalDeloitte Consulting LLP+1 212 618 [email protected]

    Gardiner HempelPartner, Global Employer ServicesGlobal Mobility Transformation LeaderDeloitte Tax LLP+1 212 436 [email protected]

    Robert HodkinsonPartner, Global Employer Services

    Global Mobility Transformation Leader EMEADeloitte MCS Limited+44 20 7007 [email protected]

    Bruce StewartPartner, Global Leader, Global Employer ServicesAsia Pacic Tax Practice LeaderDeloitte Touche Tohmatsu+852 2852 [email protected]

    Sarah Cuthill

    Principal, Global Employer ServicesDeloitte Tax LLP+1 612 397 [email protected]

    Jonathan PearceSenior Manager, Global Employer ServicesDeloitte Tax LLP+1 212 436 3268

    [email protected]

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    Global Mobility and Talent seriesNew business and workforce challenges are making talent and people issues morevisible and important than ever. Smart Moves was originally published as part of ourCHRO Strategist and Steward series and provided groundbreaking perspectives onnew approaches to international assignments and global mobility. Our latest publication,

    Smarter Moves , takes the original Smart Moves to the next level and rounds outour global mobility series. As part of this new launch, we are re-issuing

    Smart Moves, originally published in 2008. For more information, please visitDeloitte.com/smartermoves.

    Item # 100077

    About DeloitteDeloitte provides audit, tax, consulting, and nancial advisory services to public and private clients spanning multiple industries. With aglobally connected network of member rms in 140 countries, Deloitte brings world-class capabilities and deep local expertise to helpclients succeed wherever they operate. Deloittes 150,000 professionals are committed to becoming the standard of excellence.

    Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member rms, each of which is a legallyseparate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte ToucheTohmatsu and its member rms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP andits subsidiaries.

    Copyright 2010 Deloitte Development LLC All rights reserved

    This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not,

    by means of this publication, rendering business, nancial, investment, or other professional advice or services. This publication is not asubstitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business.Before making any decision or taking any action that may affect your business, you should consult a qualied professional advisor. Deloitte,its afliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

    As used in this document, Deloitte means Deloitte & Touche LLP, Deloitte Tax LLP, Deloitte Consulting LLP, and Deloitte Financial AdvisoryServices LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legalstructure of Deloitte LLP and its subsidi aries.