ey human capital conference 2012: building a global mobility policy from the ground up

2012 Human Capital Conference23–26 October

Building a mobility policy f th b ttfrom the bottom up

Disclaimer

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► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP

Building a mobility policy from the bottom up

those of Ernst & Young LLP.

Presenters

► Maureen Potts ► Jane Malecki► GlaxoSmithKline► [email protected]

► Ernst & Young LLP► [email protected]


Session overview

► Understand the steps needed to build a global mobility p g ypolicy.

► Identify the components of effective policy building.y p p y g► Discuss the constituents of global mobility policies and

their role in building those policies.► Learn from the experience of GlaxoSmithKline’s (GSK)

approach to crafting their policies.


Introduction to global mobility policies

How do global mobility programs evolve?

International assignee

►30+ international employees

►Dedicated

programs evolve?

numbers

►10-30 international employees

►Some e pertise

International HR department

►Multi-tier policies ►Outsourcing

►5-10 international employees

►Little expertise►Policy being

►Some expertise►Policy in place

►First few international employees

►No international

y gconsidered

HR expertise►No policy

International HR expertise


International HR expertise

Approach to policy advisory – review

Policy review it i

Strategic alignment: ► Is the policy aligned with business/HR strategy and future expansion plans?► Is the policy aligned with global mobility strategy?► Is the policy aligned with corporate culture?criteria ► Is the policy aligned with corporate culture? ► Is the policy aligned with the talent management process?

Policy alignment: ► Is the policy aligned with other (group) mobility policies?

Compliance: ► Does the policy promote tax compliance?The cost-effectiveness p p y p p► Does the policy promote social security and pension compliance?► Does the policy promote immigration compliance?► Does the policy promote labor law compliance?

Cost effectiveness: ► Are benefits and allowances aligned with leading practice?

criteria includes detailed benchmarking results against major competitors f l b l t l t ► Are the benefits and allowances paid in a tax-effective way?

► Is the company protected against excessive claims/losses?► Is policy administration effort optimized?

Completeness and consistency:

► Are all leading practice items covered?S ti f it li i t l tt l l b fit b h

for global talent.

and consistency: ► Separation of items: policy vs. assignment letters vs. local benefit brochure, etc.

► Are all items covered consistently in terms of level of detail?

Attractiveness to the assignee:

► Is the policy attractive to the assignee and family?

Structure and wording:

► Is the policy built upon a logical structure following assignment process?► Are potential misunderstandings in wording minimized?► Is the wording and layout user-friendly — easy to read and understand for

assignees?► Are additional administration guidelines clear and user-friendly for those

administering the policy?


g p y

GSK’s journey

► Centralized – present:► Global mobility► Global mobility

► Decentralized:► Domestic relocation:

► US► US► UK

► Cross-border – future:► Assignments► Local plus► International permanent relocation► Localizations► Foreign direct hires► Global domestic relocation

► End-to-end process:► Ensures compliance and governance► One point of contact


GSK – Global Mobility Program

► Global assignee population: 500g p pAssignment types

Long-term 194

Top 10 assignment locations

United Kingdom

Short-term 73

GA Zero 62

GA Lite 20

United States

Singapore

BelgiumGA Lite 20

Commuter 78

Graduate 54

Belgium

China

France

BTTCTL 18

PULSE 1

Ireland

Malaysia

Argentina

► Total number of assignment locations: 51

Argentina

Hungary and South Africa are tied


► Total number of assignment locations: 51

Cross-border policy proposal

► Proposed creation of geographically based function with p g g p yindividual roles with the following responsibilities:► 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)

► Own the “end-to-end” process and coordinate each sub-process owner’s activity within geography (i.e., ensuring joiner activities occur such as IT and induction)occur, such as IT and induction)

► For cross-geography activity, serve as the “lead” or “secondary” coordinator as appropriate

► Manage all Comms cell or other tracking/escalating activities► Directly complete required relocation and destination services

tasks


tasks

Stakeholders

► Identify stakeholders:y► Not just the heads of the business► Understand who your transactional partners are► Make sure HR is engaged

► Understand business drivers► Obtain commitment at the top► Ensure communication goes in all directions


Structure

► Reward Center of Excellence (CoE)( )► Centralized global mobility centers► Three regional centers:► Three regional centers:

► UK► US► Singapore

► Host-based:► Advisors responsible for all businesses within a country► Creates country experts


Reward CoE

HR business leaders HR business leaders

E tE t Business alignedBusiness aligned

HR

sh

ExpertExpert

Specialistconsultants

Business alignedBusiness aligned

Reward business leaders hared servicce

llenc

e

consultants

Business measures/program

Expert global services

Expert global services

Global comp.operations

Global comp.operations ces/em

ployentre

s of

Exc

Executive

p gexcellence

operationsoperationsRegional

operations

Global project

Long Term Incentive (LTI)

programsand services ee services

Cen compensation Global project

implementation

Global process delivery/analysis

Global mobility programs and

services

s

External

Benefitsdelivery/analysis

Global supportCompensation

systems


External

Support infrastructure

► Global HRIS► Payrolls► Talent► Talent► Benefits► Outsourced partners► Outsourced partners

► Tax (including social security)► Data► Immigration► Relocation

Fi► Finance


Global Mobility Centre Responsible for programs and services in the Americasp p g

Director, Global M bilit PMobility Programs

and Services AMERICAS

Global Mobility Global Mobility Global Mobility Advisor

AMERICASUS

Administrator AMERICAS

US

Advisor Technology

USUS US US


Global Mobility Centre Responsible for programs and services into EMEA/APACp p g

Director, Global Mobility Programs

and Services EMEA/APACEMEA/APAC

Global Mobility Advisor

UK


UK


UK

Global MobilityAdvisor

UK

Global Mobility Administrator EMEA/APAC

Global MobilityAdvisor

SiUK UK UK UK UKSingapore


One global end-to-end process is possible

Total reward

ti

Destination services

Leavers sub-

Joiners

actions

Ongoing

process

Joiners sub-

process

Relocation services

Ongoing HR admin.

activity

Foundation: governance (tax immigration data protection etc )

Global Asassignees Host Yes Yes Yes needed No

Foundation: governance (tax, immigration, data protection, etc.)

Localizing New Yes As As As Formeremployees home needed needed needed home

Foreign direct Yes Yes As As As Nohires needed needed needed

International New Yes As As As Former


transfers home needed needed needed home

Tools

► Myriad of worldwide payrolls/Human Resource y p yInformation System (HRIS) systems:► PeopleSoft► SAP► WorkDay

A i t t S t► Assignment management System:► Assignment Pro:

► Demographics► Demographics► Workflows► Interface

► Compensation accumulation


Culture

► Self-service:► Globally

► Assignment administration:g► Somewhere in between:

► Disruption of:► Personal life► Personal life► Work life► Family life

S li i h d il► Success lies in the details


Compliance

► Partner with outsourced providers:p► Tax► Immigration► Data► Relocation

E ti it► Ensure continuity► Insure governance

C id U S F i C t P ti A t► Consider U.S. Foreign Corrupt Practices Act► Consider UK Bribery Act


Cost-effectiveness

► Benchmark of benefits and allowances► Tax impact► Risk management► Risk management► Administrative impact


Attractiveness to the assignee

► Adequate benefits to neutralize cost impactq p► Incentives to offset any potential career disruption► Assistance for dual-career families► Assistance for dual career families


Completeness and consistency

► Leading practices consideredg p► Industry practices evaluated► Easy to understand► Easy to understand► Integration with local policies and benefits


Structure and wording

► Logical flow of written documentsg► Adequate examples to illustrate mechanics► Attractive layout► Attractive layout


Driving continuous improvement – areas of focus and heat mapfocus and heat mapThe 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.

► Deliver effective and efficient processes in the right location

► Currently under review by client► Set up a global framework for policies to support global governance

► Currently under review by client► Use benchmarks to

promote continuous improvement of service

► Structure the Organization to deliver valuable service to the business

► Define appropriate local

improvement of service levels

► Currently under review by client

Process Performance Measurement

Policy

Execution layer

► Define appropriate local, regional, global structures, shared service centers / outsourcing

► Area of challenge for client operation

► Define a system architecture and tools to enable valuable activities

OrganizationOrganization layer

► Define a set of consistent global data standards and common

activities

► Global technology deployed in 2011

► Select the right people resources with

Data TechnologyPeopleResource layer

fields of information

► No pressing issues noted by client

► Select the right people resources with the right skills in the right location

► Survey feedback expressed concerns surrounding HR representatives

Initial focus typically begins on the organization layer and the process component within the execution layer


Initial focus typically begins on the organization layer and the process component within the execution layer.

Questions
