EY Human Capital Conference 2012: Building a global mobility policy from the ground up
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The document summarizes a session from the 2012 Human Capital Conference that took place from October 23-26. The session focused on building an effective global mobility policy from the bottom up. It discussed identifying stakeholders, understanding business needs, obtaining leadership support, and ensuring clear communication. It also provided examples of GSK's approach to developing their global mobility policy and centers.
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EY Human Capital Conference 2012: Building a global mobility policy from the ground up
- 1. 2012 Human Capital Conference 23â26 October Building a mobility policy f th b tt from the bottom up
- 2. Disclaimer âș Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US. âș This presentation is © 2012 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or LLP reproduction distribution of this form or any of the material herein is prohibited and is in violation of U.S. and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party. âș The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP LLP. Page 2 Building a mobility policy from the bottom up
- 3. Presenters âș Maureen Potts âș Jane Malecki âș GlaxoSmithKline âș Ernst & Young LLP âș maureen.f.potts@gsk.com âș jane.malecki@ey.com Page 3 Building a mobility policy from the bottom up
- 4. Session overview âș Understand the steps needed to build a g p global mobility y policy. âș Identify the components of effective p y p policy building. y g âș Discuss the constituents of global mobility policies and their role in building those policies. âș Learn from the experience of GlaxoSmithKlineâs (GSK) approach to crafting their policies. Page 4 Building a mobility policy from the bottom up
- 5. Introduction to global mobility policies How do global mobility programs evolve? International âș30+ international employees assignee âșDedicated numbers International HR department âș10-30 international âșMulti-tier policies employees âșOutsourcing âșSome e pertise expertise âș5-10 international âșPolicy in place employees âșLittle expertise âșPolicy being y g considered âșFirst few international employees âșNo international HR expertise âșNo policy International HR expertise Page 5 Building a mobility policy from the bottom up
- 6. Approach to policy advisory â review Is the policy aligned with business/HR strategy and future expansion plans? Policy review Strategic alignment: âș âș Is the policy aligned with global mobility strategy? criteria it i âș âș Is the policy aligned with corporate culture? Is the policy aligned with the talent management process? Policy alignment: âș Is the policy aligned with other (group) mobility policies? The cost-effectiveness Compliance: p âș Does the policy p p y promote tax compliance? p âș Does the policy promote social security and pension compliance? criteria includes detailed âș Does the policy promote immigration compliance? benchmarking results âș Does the policy promote labor law compliance? against major competitors Cost effectiveness: âș Are benefits and allowances aligned with leading practice? for l b l talent. f global t l t âș Are the benefits and allowances paid in a tax-effective way? âș Is the company protected against excessive claims/losses? âș Is policy administration effort optimized? Completeness âș Are all leading practice items covered? and consistency: âș Separation of items: policy vs. assignment l tt S ti f it li i t letters vs. l local b l benefit b h fit brochure, etc. âș Are all items covered consistently in terms of level of detail? Attractiveness âș Is the policy attractive to the assignee and family? to the assignee: Structure and âș Is the policy built upon a logical structure following assignment process? wording: âș Are potential misunderstandings in wording minimized? âș Is the wording and layout user-friendly â easy to read and understand for assignees? âș Are additional administration guidelines clear and user-friendly for those administering the p y g policy? Page 6 Building a mobility policy from the bottom up
- 7. GSKâs journey âș Centralized â present: âș Global mobility âș Decentralized: âș Domestic relocation: âș US âș UK âș Cross-border â future: âș Assignments âș Local plus âș International permanent relocation âș Localizations âș Foreign direct hires âș Global domestic relocation âș End-to-end process: âș Ensures compliance and governance âș One point of contact Page 7 Building a mobility policy from the bottom up
- 8. GSK â Global Mobility Program âș Global assignee p p g population: 500 Assignment types Top 10 assignment locations Long-term 194 United Kingdom Short-term 73 United States GA Zero 62 Singapore GA Lite 20 Belgium Commuter 78 China Graduate 54 France BTTCTL 18 Ireland PULSE 1 Malaysia Argentina Hungary and South Africa are tied âș Total number of assignment locations: 51 Page 8 Building a mobility policy from the bottom up
- 9. Cross-border policy proposal âș Proposed creation of g g p p geographically based function with y individual roles with the following responsibilities: âș Provide first-level counsel to Human Resource Business Leaders (HRBLs), line managers others regarding key considerations on the type of cross-border alternatives (i.e., Global Assignee (GA), localization, Local Plus) âș Own the âend-to-endâ process and coordinate each sub-process ownerâs activity within geography (i.e., ensuring joiner activities occur, occur such as IT and induction) âș For cross-geography activity, serve as the âleadâ or âsecondaryâ coordinator as appropriate âș Manage all Comms cell or other tracking/escalating activities âș Directly complete required relocation and destination services tasks Page 9 Building a mobility policy from the bottom up
- 10. Stakeholders âș Identify stakeholders: y âș Not just the heads of the business âș Understand who your transactional partners are âș Make sure HR is engaged âș Understand business drivers âș Obtain commitment at the top âș Ensure communication goes in all directions Page 10 Building a mobility policy from the bottom up
- 11. Structure âș Reward Center of Excellence (CoE) ( ) âș Centralized global mobility centers âș Three regional centers: âș UK âș US âș Singapore âș Host-based: âș Advisors responsible for all businesses within a country âș Creates country experts Page 11 Building a mobility policy from the bottom up
- 12. Reward CoE HR business leaders HR business leaders Expert E t Business aligned HR sh Specialist Reward business consultants leaders hared servic cellence Expert global Global comp. Business measures/program p g services operations ces/employe services ntres of Exc excellence Long Term Incentive (LTI) Regional programs operations Executive and services Global project Cen ee compensation Global mobility implementation programs and services Global process delivery/analysis s Benefits Compensation systems Global support External Page 12 Building a mobility policy from the bottom up
- 13. Support infrastructure âș Global HRIS âș Payrolls âș Talent âș Benefits âș Outsourced partners âș Tax (including social security) âș Data âș Immigration âș Relocation âș Finance Fi Page 13 Building a mobility policy from the bottom up
- 14. Global Mobility Centre Responsible for p g p programs and services in the Americas Director, Global Mobility Programs M bilit P and Services AMERICAS Global Mobility Global Mobility Global Mobility Advisor Administrator Advisor AMERICAS AMERICAS Technology US US US Page 14 Building a mobility policy from the bottom up
- 15. Global Mobility Centre Responsible for p g p programs and services into EMEA/APAC Director, Global Mobility Programs and Services EMEA/APAC Global Mobility Global Mobility Global Mobility Global Mobility Global Mobility Global Mobility Advisor Advisor Advisor Advisor Administrator Advisor EMEA/APAC UK UK UK UK Singapore Si UK Page 15 Building a mobility policy from the bottom up
- 16. One global end-to-end process is possible Total Destination Leavers reward services sub- actions ti process Joiners Ongoing Relocation HR admin. sub- services activity process Foundation: governance (tax, immigration, data protection, etc.) (tax immigration protection etc ) Global As assignees Host Yes Yes Yes needed No Localizing New Yes As As As Former employees home needed needed needed home Foreign direct Yes Yes As As As No hires needed needed needed International New Yes As As As Former transfers home needed needed needed home Page 16 Building a mobility policy from the bottom up
- 17. Tools âș Myriad of worldwide p y y payrolls/Human Resource Information System (HRIS) systems: âș PeopleSoft âș SAP âș WorkDay âș Assignment management System: A i t tS t âș Assignment Pro: âș Demographics âș Workflows âș Interface âș Compensation accumulation Page 17 Building a mobility policy from the bottom up
- 18. Culture âș Self-service: âș Globally âș Assignment administration: g âș Somewhere in between: âș Disruption of: âș Personal life âș Work life âș Family life âș Success lies i the d il S li in h details Page 18 Building a mobility policy from the bottom up
- 19. Compliance âș Partner with outsourced providers: p âș Tax âș Immigration âș Data âș Relocation âș Ensure continuity E ti it âș Insure governance âș Consider U S F i C C id U.S. Foreign Corrupt P ti t Practices A t Act âș Consider UK Bribery Act Page 19 Building a mobility policy from the bottom up
- 20. Cost-effectiveness âș Benchmark of benefits and allowances âș Tax impact âș Risk management âș Administrative impact Page 20 Building a mobility policy from the bottom up
- 21. Attractiveness to the assignee âș Adequate benefits to neutralize cost impact q p âș Incentives to offset any potential career disruption âș Assistance for dual career families dual-career Page 21 Building a mobility policy from the bottom up
- 22. Completeness and consistency âș Leading p g practices considered âș Industry practices evaluated âș Easy to understand âș Integration with local policies and benefits Page 22 Building a mobility policy from the bottom up
- 23. Structure and wording âș Logical flow of written documents g âș Adequate examples to illustrate mechanics âș Attractive layout Page 23 Building a mobility policy from the bottom up
- 24. Driving continuous improvement â areas of focus and heat map The operating model consists of a set of seven key components over which there are choices that can be made in designing global mobility activity ownership. âș Deliver effective and efficient processes in the right location âș Set up a global framework for âș Currently under review by client policies to support global governance âș Use benchmarks to âș Currently under review by client promote continuous improvement of service Execution layer levels âș Structure the Organization to Policy Process Performance âș Currently under review by Measurement client deliver valuable service to the business âș Define appropriate local local, Organization regional, global structures, layer shared service centers / Organization outsourcing âș Area of challenge for client âș Define a system architecture operation and tools to enable valuable activities Resource layer Data People Technology âș Global technology deployed in 2011 âș Define a set of consistent global data standards and common fields of information âș Select the right people resources with the right skills in the right location âș No pressing issues noted by client âș Survey feedback expressed concerns surrounding HR representatives Initial focus typically begins on the organization layer and the process component within the execution layer layer. Page 24 Building a mobility policy from the bottom up
- 25. Questions Page 25 Building a mobility policy from the bottom up