MOBILITY 2020
GLOBAL MOBILITY TRANSFORMATION
11 March 2013
Ed Hannibal
Partner
Today’s Agenda
World Economic Forum and Mercer
Talent Mobility Research Findings
Impact of Mobility
Global Mobility Trends
Governance
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Mobility
The Historic View
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Global Mobility is in the Midst of MORE Change than EVER …
• People are connected
– Over 900,000,000 Facebook members
– Over 175,000,000 LinkedIn members in over 200 countries/territories
• There are over 5.6 billion cell phones worldwide (80% of population of
7,040,000,000 as of September 2012)
• Average of 190,100 passengers arriving and departing daily from Heathrow
– 69.4 million passengers in 2011
• According to the UK Border Agency, each year over 100 million people
arrive at the UK border and 3.5 million apply to visit, live, work and study
there.
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Where are clients sourcing talent?
Current demand for expatriates
New Home-Country Expatriate Moves
* From internal Mercer data requests
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Where are employers sourcing talent?
Top 15 host locations
1) Shanghai
2) Singapore
3) Hong Kong
4) Bangkok
5) London
6) Beijing
7) Tokyo
8) Paris
9) Seoul
10) Dubai
11) Jakarta
12) Taipei
13) São Paulo
14) Kuala Lumpur
15) Brussels
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WORLD ECONOMIC FORUM AND MERCER
TALENT MOBILITY RESEARCH FINDINGS
World Economic Forum (WEF) collaboration
Human capital risk, employability and mobility were critical issues
at the WEF’s 2012 annual meeting in Davos
“The world is moving
from capitalism to
talentism”
~Klaus Schwab, Founder & Executive
Chairman of World Economic Forum
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World Economic Forum collaboration
Why this issue? Why NOW?
Talent
Employers
Talent & Skills Gap
13.3 million
unemployed in US
There is a clear
mismatch between
3.3 million
job vacancies in US
What’s
IN DEMAND
205 million
unemployed
globally
and
What’s
AVAILABLE
Globally 34%
of employers can’t
fill available jobs
in the global talent pool
Source: U.S. Department of Labor – Bureau of Labor Statistics; 2011 Gallup Employment Survey; Manpower Group’s 2011 Talent Shortage Survey
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Highlights of talent mobility research findings
Participating organizations with selected good practices
3M Western Europe
47 European Ministers of Higher
Education
ABB Ltd
Abbott Laboratories
Adecco Group
American Airlines
Atlas Corps
British Columbia Hydro & Power
Authority
Chub Group of Insurance Companies
Cisco
COM DEV International
Education for Employment
Emma L. Bowen Foundation
European Commission, Department
of Employment, Social Affairs &
Inclusion
Federal Migration Service (Russia)
General Electric Company
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George Washington University
German Trade Union for Building,
Forestry and the Environment,
Polish Trade Union of Agricultural
Workers
GLOBIS Corporation
Gouvernement du Quebec
Government of Taiwan
HCL Technologies Ltd
ICT Association of Jordon
Infosys Ltd
INSEAD
International Labour Organization
INTTRA
JA Worldwide
Japan International Cooperation
Agency
LVMH Moet Hennessy – Louis Vuitton
ManpowerGroup
Marriott International Inc.
Marsh Inc.
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Mercer
National Skill Development
Corporation
Oliver Wyman
Organisation for Economic Cooperation and Development
Philippines Government
Polish Confederation of Private
Employers Lewiatan
PwC
Standard Chartered
Taylor Bennett
The Boston Consulting Group
The United Nations Development
Programme
United Kingdom Border Agency
U.S. Department of Labor
University of the West of England
Wipro Technologies
Yum! Brands
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Highlights of talent mobility research findings
Definition must expand to fit the new age of talent mobility
Talent Mobility:
tal·ənt mō·bil·ətē
The movement of
workers between
organizations or
among locations
of an international
organization
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Talent Mo
bil
The physic ity:
al
within or a movement of work
ers
cross orga
nizations,
industries
or countrie
s, and glo
or the pro
bally,
fessional
movemen
workers a
t of
cross occ
u
p
ations or s
sets. Mob
ility may b
kill
e tempora
permanen
ry or
t and may
also involv
moving pe
e
ople from
unemploy
employed
ed t
, moving jo
bs to peop o
allowing f
le or
or virtual m
obility.
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How companies define talent mobility today
2012 survey results from 700 American/EMEA companies
Describe your working definition of talent mobility, as reflected in existing HR
programs and policies
80%
81%
Moving workers to different locations
globally/across borders
58%
Moving workers to different locations
domestically
39%
52%
47%
Moving workers to different organizational
units/functions
49%
45%
Moving workers to different jobs or skill sets
27%
20%
Allowing for virtual mobility
EMEA webcast
22%
20%
Moving jobs to people (creating/moving jobs
where talent is in good supply)
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Americas webcast
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Highlights of talent mobility research findings
Four primary barriers to talent mobility
Widespread unemployability
Critical skills gap
Information gaps
Public & private constraints
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Source: Mercer Analysis
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Highlights of talent mobility research findings
Examples of successful multi-stakeholder collaboration
• Partners with local
governments, educational institutions
and NGOs
• Develops talent in
India, Brazil, China
and Argentina to
support its global
growth strategy
• Drives improved
local prosperity and
global economic
growth
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• Collaborates with
governments and
educational institutions to create international IT/BPO
skill standards
• Results in easier
movement of people
across geographies,
occupations and
organizations
• Member nations
collaborate to assess
workforce
competitiveness
• Results being used
to plan regional labor
market integration
• Goal is to become
more attractive to
global employers
and thereby drive
prosperity
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• A collaboration
among multiple
stakeholders for
growing/developing
local financial
services talent and
driving sector growth
• Aim is to enhance
competitiveness of
Toronto region as an
international finance
center
• Relies on high job
mobility to develop
talent and future
leaders
• Places talent in
other allied organizations to gain
“outside” experience and enhance
critical skills to
strengthen their
team
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Highlights of talent mobility research findings
Develop a collaborative mindset
• Think broadly about the greater good, rather than
focusing only on your own objectives
• Engage “hearts and minds” of workforce
• Be comfortable with complexity
• Think outside the box to drive innovation
• Be sensitive and adaptable to different cultures
• Be open to continuous learning and new opportunities
• Be able to handle ambiguity and uncertainty
• Be good at systems thinking
• Take a long-term perspective, but have a
sense of urgency
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Driving talent mobility excellence
Leading companies optimize their global workforce
Build a comprehensive talent planning process and
decision framework to support growth strategy
Identify workforce and capability gaps
Engage and create sense of urgency with senior
management
Analyze hard data to track dynamics
Create lines of sight among talent management,
acquisition, learning & development, and global
mobility functions
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Intra-company collaboration
Also key to successful talent mobility
Learning and
development
Leadership
development
Compensation
and benefits
Talent
management
Employee
communications
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Global
mobility
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Driving talent mobility excellence
People strategy must remain aligned with business strategy
A unique set of prioritized
choices about people
investments that enables the
organization to achieve its
business strategy and
performance goals
Defines the performance goals
the organization seeks to
achieve and sets parameters
for the decisions and
investments it will make to
support those goals
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Aligning talent mobility good practices with business objectives
The discussion each organization needs to have
Operating and
generating revenue
within the borders of
one country
Significant presence
in a large number of
countries, revenue
outside HQ equals or
exceeds home-country
revenue
Most revenue in home
country, disparate
business units
Domestic
Multilocal
Fully
global
Going
global
Rapidly increasing
revenue outside home
country, geographic
market expansion
Where is your organization today?
Where will you be in five years?
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Optimizing talent mobility
Focus on critical talent and roles
Critical
talent and
roles
Development value
High
Emerging,
high-potential
talent
Strategic
business
leadership
Careerbuilding
volunteers
Seasoned
technical
experts
Business value
Low
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High
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Building an integrated approach to talent mobility strategy
Successful outcomes through clearly linked programs
TALENT
The right PEOPLE…
TOTAL
REWARDS
Talent segmentation
in the right PLACES
and ROLES…
Talent identification
Identification of need and locations
Candidate profiles
Critical roles
Selection criteria
Key skill requirements
Selection process
at the right COST…
Contract type
Remuneration, benefits, allowances
and support
Funding arrangements
PLANNING
for the right length of
TIME and RESULT…
Assignment purpose
Type and length of assignment
Assignment lifecycle management
Management of other related costs
Transition management
INVESTMENT
Executed through Administration, Communication, Functional Excellence, Measurement
Process, Policy, HR service delivery, Outsourcing
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IMPACT OF MOBILITY
LOOKING INSIDE
ILM analysis® for this financial services firm showed that location
changes were destabilizing in the short term; on the other hand,
moves across business lines have more positive influences
Promotion
Turnover:
Voluntary
Turnover:
Retirement
Rating
Pay Level
Pay Growth
Total Pay
Change work
location
No
Influence
15.5%
NA
No
Influence
-2.5%
-.1%
-2.9%
Ever change
work location
No
Influence
No
Influence
NA
No
Influence
2.6%
No Influence
2.6%
Changed
Business line
18%
No
Influence
NA
5%
.1%
5.2%
Transfer across
OpCO
No
Influence
No
Influence
NA
No
Influence
7.5%
.1%
No Influence
Ever Transfer
Across OpCo
No
Influence
-35%
NA
No
Influence
4%
1%
8%
6%
Note: The models on which these results are based control for individual attributes, organizational factors, and external influences.
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ILM analysis® allowed this large energy company to assess the impact of
developmental and education experiences, so as to improve the return on
their considerable investments in human capital
Promotion
Turnover:
Voluntary
Turnover:
Retirement
Rating
Pay Level
Pay
Growth
Total Pay
Masters Vs.
Bachelors
11%
No
Influence
No
Influence
3%
5%
No
Influence
2%
Doctorate Vs
Bachelors
55%
No
Influence
-83%
10%
No
Influence
3%
Ever did
Overseas
Assignment
49%
41%
Not
Applicable
-4%
0.1%
28%
47%
-89%
Not
Applicable
-4%
-0.1%
No
Influence
65%
No
Influence
Not
Applicable
-13%
-0.2%
-4%
Ever did Prog. X
(Certification
Program)
Ever did Prog. Y
(Degree Program)
No
Influence
6%
No
Influence
2%
Here, overseas assignments were a ticket
out the door, even though it was also a
ticket to advancement
Note: The models on which these results are based control for individual attributes, organizational factors, and external influences.
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GLOBAL MOBILITY
TRENDS
Global mobility trends
Traditional mobility
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Global mobility
Next gen mobility
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Global mobility
Program reporting and organization
To which department does the global mobility function report?
59%
14%
HR Compensation
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Corporate
Centre of
Excellence
14%
14%
Corporate
Shared Services
0%
0%
HR - Talent
Management
Relocation
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Other
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Global mobility and talent management
How integrated is your global mobility program and your talent management?
How integrated does your management want them to be?
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Global mobility
Company profile – cross border programs
How do you expect the number of assignments in the following categories
to change in the next two years (2012–2013)?
Increase
Assignment Types
Short-term assignments
71%
Typical long-term assignments
57%
Developmental/training assignments
48%
Permanent transfers
47%
Locally hired foreigners
45%
Employees on rotational assignments
34%
Commuters
Contract employees
34%
Global nomads/Career expatriates
14%
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16%
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Emerging trends
Increasing use
of talent-tier policies
By assignment type
By organizational level
By business unit
By region
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Segmented best practices
Establish criteria
 Early career
 Developmental vs.
business need
 Position/level –
typically manager
or below
Identify benefits to be
eliminated or reduced
Compensation philosophy
 Analysis of intent of
benefit
 Modified Balance
Sheet
 Cost analysis to
capture cost savings
 Local Plus
 Employee
accommodation
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Employee profile
What percentage of your company’s expatriate population fall into these age
bands?
2010
2012
35 or Younger
28%
22%
36 or Older
72%
78%
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International compensation philosophies
Multiple approaches
Pure Home
Salary
HQ Salary
Structure
International
Salary
Structure
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Home Plus
Pure Host
Salary
Integration to Host
Equalization to Home
Balance Sheet
Regional
Salary
Structure
Net to Net
Higher of
Net to Gross
Home or Host
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Host Plus
33
The rise in global tax equalization programs
Increasing scrutiny of the compensation package
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GOVERNANCE
FUTURE RISK MANAGEMENT RESPONSIBILITES
Program administration
Tracking
 Tax authorities are increasing their scrutiny of business travelers
and short-term assignees
 Concerns around shorter-term mobile employees creating
“permanent establishment” issues for the corporation
 Need to know employee whereabouts from a security, safety and
corporate duty of care perspective
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Program administration
Compliance and governance concerns
 One potential control point is combining the per diem data and a
calendar tool for short-term assignments, commuters and
business travelers
 Mercer is working with clients and major mobility software
providers to incorporate per diem information into their tools
 Employers are looking to use calendar tools to pay per diems
only if and when employees fill out their time in country
 See the sample Equus Solution
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Looking to the future
Planning for 2020
 Regardless of the reporting structure, make your place at the table
 Evaluate your Internal Labor Market
 Prepare to be the internal mobility management consultant
 Will international “roles” dictate your organization’s mobility approach?
 Audit, evaluate and evolve your Mobility Tax policy
 Implement Global Mobility Risk Management programs
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QUESTIONS
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