global mobility technology academy - pwc · technology academy global mobility. pwc 13:30 welcome...
TRANSCRIPT
1 October 2019
Technology Academy
Global Mobility
PwC
13:30 Welcome & registration
14:00 Introduction
14:10 Session 1: Assignment Management
15:05 Session 2: Global Compensation and Payroll Services
16:00 Break
16:15 Session 3: Short Term Business Visitors
17:10 Session 4: Global Mobility Technology of the future
18:00 Networking Cocktail
Agenda
PwCE-volve Module 4 March 21 2019
4
PwC5
Desirability
FeasibilityViability
e X perience
T echnology B usiness
Our philosophy: BXT
The sweet spot ofinnovation
PwC
B X T
PwC
Setting the scene
PwC
How do we see global mobility evolving?
PwC
Which of the following best describes your Global Mobility function?
Which of the following best describes your Global Mobility function?
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No standardization/automation
Low standardization/ automation
Somewhat standardized/automated
High standardization/automation
Very high standardization/automation
Fully standardized/automated
3
6
11
0
0
4
PwC
Assignment Management
PwC
Our vision to modern Mobility Management
PwC
Delivering a “one stop shop” for your mobile employees
Pre-move support Ongoing support End of move support
Assistance with the decisions/approval process in-house, pre-move cost and policy assessment and preparing all required international move documentation (e.g. assignment or relocation letter). From the introduction to your mobile employees, act as first and main point of contact, liaising with HR, the business and external vendors to support them and the company throughout their move.
Support with all actions relating to the repatriation of mobile employees. Support will include; repatriation briefings with the individual, initiating and managing vendors and coordinating with home and host HR to ensure all end of assignment actions have been completed.
One provider to manage your international moves
Seamless support and delivery
Better visibility and global governance
Roles and responsibilities defined
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Handle all day to day mobility actions seamlessly, including queries from employees, the business, HR/Global Mobility, vendor initiations/ liaison, compensation updates (as needed) etc.
PwC
Sample move / assignment lifecycleKey services and delivery
Man
aged
Mob
ility
Se
rvic
esM
obili
ty T
ax &
R
eloc
atio
n Se
rvic
es
Start of move During move End of MoveMove initiation
Cost Projections and assignment approval
Documentation – letter and balance sheet
Pre- move mobility briefing with employee
Initiation of all vendors
Coordination with 3rd party providers as required
Assignment compensation updates, including salary review, COLA review, housing data etc.
Answering policy queries
Ongoing support for the business, HR and employees
Repatriation assistance
Coordination of relocation vendors
End of assignment documentation
Employee tax briefings
Tax registration and de-registration
Social Security Applications
Managing risk
Immigration services
Tax Returns
Tax Equalisation calculation/ reconciliations
Tax authority repayment/ payment tracking
Payroll support
Shadow payroll reporting
Global compensation data collect and management
Employee relocation briefing
Relocation support
Repatriation
Support
Repatriation briefing
De-register with tax authorities
Support with trailing payments
Key
Managed Mobility Services
Mobility Tax
[RELOCATION]
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PwC
Services for assignments and transfers
Cost projections & accruals Assignment documentation & coordination of relocation
services
Tax admin & coordinationof tax services
Immigration admin & coordination of
immigration services
Allowance calculations, shadow payroll/year end & coordination
of payroll services
Call center
Experience-centered and digitally-enabled support
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PwC
Technology guiding principles
Enterpris
e
enab
led
Single,
integrated
process
Mobile,
even
t-driv
en
technology
Eliminate/
automate
compliance
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PwC
Our focus for our clients?
Through a digitally enabled experience, supported by dedicated mobility specialists, PwC’s Managed Services team will administer the company’s mobility function – in full or in part. Our leading technologies, a large and tightly connected global network of experienced mobility professionals and a best practices service delivery model can be tailored to the Company’s needs and expectations. This provides clients with the ability to redeploy budgets and people to strategic business initiatives, and supports growing mobility programs without adding internal headcount.
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PwC
GM needs at scale
Benefits for our clients?
Risk minimization Continuous GM strategy,
policy and process improvements
Leverage the large amounts of data
Streamlined & tech enabled global approach
Reduced in-house time & resources
Continuous technological enhancements
Synergies from leveraging one platform
Improved employee and business experience
17
PwC
Breakout session
PwC
What are your top 3 challenges that you would want to be addressed through technology/automation?
Have you identified a service/solution internally to address these challenges?
What are your current challenges around managing your globally mobile workforce?
PwC
Global compensation and payroll services
PwC
AboutNancy is a Global Head of HR services and payroll in a large organization that operates in over 52 countries. She loves challenges and likes to stay on top of things. She gets nervous when she finds herself out of control over complex issues.
Nancy Duarte
Smart
Intelligent
Passionate
Extrovert
Challenges• Non-existent global payroll processes • No visibility of policy administration• No visibility of costs
Solution• Controlled framework with clearly defined processes• Data analysis for policy checks• Interactive dashboards for greater insight• Outlier management and cost control
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PwC
AboutSam is has taken on a new role of Global Mobility lead in a mid size organisation which operates in 20 countries. In his earlier role within Human Resource function, talent optimization was his key focus area. In his new role, he is looking to elevate the role of his global mobility team and he has identified that the his payroll team is facing challenges around the administration, management and compliance of the payroll of their globally mobile assignees.
Sam Jackson
Objective
Intelligent
Technology driven
Extrovert
Challenges• Extensive time spent on payroll data collection and validation • No clear guideline or common understanding of tax and social security application of
compensation and benefits• Manual work • Unmanageable global employer compliance position.
Solution• A global technology solution enabling automated data import, validation and reporting • Monthly payroll instructions to the local payroll teams including tax and social security
application of the compensation and benefit items• Central database enabling smooth collection, validation and reporting; leading to high
employer compliance
22
PwC
AboutJane is a Payroll lead in a mid size organization that operates in over 32 countries. Jane has successfully established clear processes for the management of payroll for the globally mobile assignees. She is detailed and process driven and does not like loose ends.
Jane Doe
Smart
Intelligent
Detailed
Process Driven
Challenges• Extensive time spent on annual compensation & benefit data collection processes. • Unmanageable global employer compliance position.
Solution• A global technology with country specific reporting of annual compensation and benefit data • Country specific reports with clarity on tax and social security treatment of compensation and
benefit data
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PwC
• Due to rising costs of non-compliance, realising and maintaining compliance with internal and external regulations is a major challenge for businesses.
• Ensuring quality and availability of compensation and payroll data is one of the main challenges to ensure compliance.
• High numbers of entities, policies and assignees multiply the Global Mobility programs’ complexity.
• Support functions such as payroll are outsourced; however, they are local payroll experts and may not understand the complexity of global payroll management.
• Regulators, organisations and customers demanding data safety and security is becoming more complex as the world becomes more digital.
• It is still a challenge for businesses to put automation and digitisation in practice and to reach the potential benefits of data centralisation.
• Organisations face challenge with internal reporting requirements which could be addressed through dashboarding due to lack of data centralization.
• Businesses often lack oversight of their international mobility policies and programs, thus making consistent management impossible.
• An important aspect of an efficient compensation and payroll management is quantifying the cost to the organization. Business lacks data to know the overall cost of sending an assignee on an assignment hence leading to incorrect budgeting and financial analysis.
What are our client’s challenges?4 C’S
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Compliance Complexity Centralisation Cost
PwC
Our focus for clients
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• Fewer penalties and interests
• Strategies that help you manage costs
• Cost reduction through the use of automation and streamlined processes
• Transform payroll capabilities from transactional to strategic
• Insights & data driven decisions
• Increased agility to respond to market challenges and changes
• Improved visibility, control, planning, and forecasting capabilities
• Access to intuitive dashboards and interactive reports
• Globally consistent & automated processes
• Automated deadline management ensures timely payroll reporting
• We make mobility easy
• Process simplification reduces time spent on repetitive tasks
Cost efficiency Empowerment Control Simplification
• Access to global data in real time
• Quick analysis of data/cost management.
• Reliable compensation data (provided in time and in the right format)
Power of data– in real time
PwC
What we do?(Global Compensation and Payroll Services)
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Technology enabled services around the management and reporting of compensation and payroll of mobile employees to ensure global compliance, oversight and cost effectiveness.
Global Compensation and Payroll Services (GCPS) through its modular approach covers the end-to-end global process, the local compliance – and everything in between. It is about:
• Process, roles and responsibility definition and implementation
• Collecting, validating and storing quality data
• Reporting both for internal and external compliance purposes
Highest standard of data & system security
Digitally enabled experience
Flexible modular approach
End-to-end global process keeps you ahead of the compliance curve
Global oversight & data driven insights in real time
a
Automated end to end compensation and payroll ecosystem
PwC
Global Compensation and Payroll Health Check
1. Country Payroll Processing
2. Host Shadow Payroll Calculations
1. Dashboard
2. Cross Charge Reporting and Global Pay Statement
3. Actual Cost Reporting Global Compensation and
Payroll Management
Module 1
Module 3
Mod
ule
4 Module 2
Technology enabled modular approach
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Through our GCPS offering, we aim to provide businesses with a technology enabled end-to-end service around the management and reporting of compensation and payroll of globally mobile employees.
Equally we believe that our offering should match our client requirements and therefore we have developed a modular approach providing the flexibility to select the areas the client wants to focus on. The client don’t have to enable all modules straight away, we can take an incremental approach, something we have supported other clients to do successfully.
It is highly configurable so you can choose whether to implement an “off the shelf” or more tailored version.
PwC
We have developed a Global Compensation and Payroll Management Health Check and we work with businesses to review their current global compensation data and process, later working with them to build a robust global compensation management process as well as assisting them on the road to compliance.
Module 1: Global Compensation and Payroll Health Check
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GCPS Health Check approach
GCPS Health Check
2Process Analysis
3Fit Gap Report
1Data
Analysis
4Action Plan/Implementation
PwC
Module 2: Global Compensation and Payroll Management
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Global Compensation and Payroll Management process
PwC
Breakout session
PwC
What are your top 3 compensation & payroll challenges of your globally mobile workforce that you would want to be addressed through technology/automation?
Have you identified a service/solution internally to address these challenges?
What are your current challenges around managing the payroll complexities of your globally mobile workforce?
PwC
Short term business visitors
PwC
An overview
• # visitors
• # trips
• # days abroad
• Immigration
• Permanent Establishment
• Personal income tax
• Labour Law
• Social Security
• Transfer Pricing
• Visa/work permit
• PE registration
• Tax Equalisation policy/follow-up
• PwD registration
• CoC/A1
• Health insurance
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ActionsIdentification Compliance & risk assessment
PwC
Tax and legal risks
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Belgium, Netherlands & AustriaFocus from the authorities on audits for social security coverage which has resulted in restrictions being applied to the ability to work if proper processes and documentation are not in place. In Austria, a CoC is typically required pre-travel as there is a requirement to notify the Austrian authorities of employees travelling for work purposes to Austria and the CoC is required as part of that notification. In addition, there are substantial fines if you are unable to produce a CoC in the event of a labour inspectorate visit in Austria.
NorwayNorway also have strict requirements for BTs and have continued to enhance their approach, including the introduction of a new PAYE system, “Source Tax”. If you work in Norway, the social security authorities will expect Norwegian social security to be paid from day 1 in the absence of a CoC (where there is tax withholding)
SwedenThere has been a proposal in Sweden for the adoption of the “economic employer” concept in 2019, which will most likely lead to more BTs being subject to Swedish tax.
UKThe UK has been a leader with their focus on employment tax compliance for BTs through the tightening of requirements for employers.
MexicoMexico is an example where tax authorities have been particularly aggressive with their audits for Oil & Gas companies, especially because special rules are in place specifically for BTs working on rigs and drilling activities. This rule dictates that BTs will trigger a Mexican tax liability through fewer days in Mexico than BTs from other industries who would be covered by the domestic law.
Italy & SpainItaly and Spain no longer allow retrospective Certificate of Coverage applications where travel has already been completed. Italy among several European countries to more stringently enforce the EU Posted Workers Directive, requiring local registrations for foreign employees.
FranceFrance released a sanction in April 2017 to implement fines where workers are onsite without a relevant Certificate of Coverage. The amount of the sanction is set at one month’s social security limit (EUR 3,269 for 2017).
PwC
Real cases: cost of doing it wrong
EU PWD – Employment LawA construction company faced a large PWD employment law fine $22 million for a project worth $7 million. This was due to employment law breaches being made in Austria.
Wrong/no visa – immigrationA consulting, technology, and outsourcing firm was found to have illegally placed workers on short term business visitor visas. This led to a fine of $35m and a highly publicised event.
Banned from site – social securityMD of consultancy business prevented from travelling from Norway to Denmark. Construction company employees barred from site in Netherlands/Belgium.
Challenged on PE – corporate tax12 month custodial sentence and civil fines handed to the manager of an aviation business for knowingly failing to declare a PE in France.
Reputational damage – Cost – Operational blockers
35
PwC
Stakeholder management
?Travel Team
Employees
Function Leaders:
Tax, Payroll, Finance
HR Leaders & Managers
BusinessLeaders
Change Mgmt Teams
Global Mobility
36
PwC
How can technology
help you mitigate
these risks?
PwC
Data analytics – Diagnostic review – know your risks
Diagnostic reviewData identification
38
PwC
Pre travel assessment – educate your stakeholders
PwC
PwC
Automation downstream activities – ensure compliance Employment
and income taxDouble tax treaty logic applied to
determine if filing or payroll
withholding requirements
CoC application
Tax return preparation
Travel data feeds through
Validated data
January March November
Key:
Core myMobility services to assess risk
Enhanced services to support downstream compliance
Visa applicationRegistration support
Detailed PE analysis
Assess
Corporation tax
Duties assessed
pre-travel toidentify PE risk
ImmigrationAssess whether any work permit
required
EU Posted Workers
Assess whether any local
registrations required
Social security
Reciprocal agreement
logic applied and day count
reviewed to consider if CoC
required
Host country withholdingsAssess payroll requirement
Host payrollProcess tax
reporting and remittance
Home payrollFeed tax info for
gross-up, or to take as credit against
home tax withholding/tax return
FinanceUpdate accrual for
tax costs
Tax calculation produced
PwC request to obtain
compensation
40
PwC
Our recommended approach
AutomateBuild
04• Automate downstream processes• Apply cooperative compliance where available• Optimal approach for ongoing management
Our recommended approach
Diagnose
03
Gather
02• Unify teams across Tax, Mobility, HR, Legal
and Finance• Assist with business case for change.
• Incremental approach to improving model over time• Governance, communication, policies and
processes to support the plan.
01• Explore business traveller risk profile• Understand current processes and policies.• Determine priority areas and desire to change.
41
PwC
Breakout session
PwC
What are your top 3 challenges linked to you business visitors that your would want to be addressed through technology/automation?
Have you identified a service/solution internally to address these challenges?
What are your current challenges around managing your business visitors?
PwC
Global Mobility Technology of the future
PwC
Global Mobility Technology
What we’ll cover
• Why we need to adapt to change
• The automation continuum
• Examples of smart automation today
45
PwC
GM Academy - Digitising Global Mobility
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People‘I want to spend more time with our internal business stakeholders, providing a more consultative service and a better experience for employees.’
Technology‘I need technology tools that will take the routine away and provide me with the data I need at my fingertips.’
PwC
1977
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PwC
The progression of automation technology
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Past Future
Macros and scripts
Business Process Automation (BPA)
Robotic Process Automation (RPA)
Intelligent Process Automation (IPA)
Algorithmic business
How do RPA and IPA differ?RPA directly mimics human behaviour
OutputInput Program
IPA learns how to become more efficient
OutputInput Program
LearningTechnology state
Current state Trending Future State
PwC
Examples of smart process automation available todayHire to retire
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1.0 Develop HR strategy
2.0 Recruit and onboard
3.0 Learn and develop
4.0 Measure and manage
5.0 Compensate and reward
6.0 Service Employees 7.0 Off-board
Source candidates Manage employee relations and compliance
Processes with high automation potential (>50% effort)
Manage pre-employment verification, immigration
Manage new hire orientation and training
Manage employee services
Solicit employee feedback
PwC
Bot vs Person!
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Example - What is the maximum hardship allowance?
PwC
Bot vs Person!
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Example - What is the maximum hardship allowance?
EUR 10,000 per year
PwC
Bot vs Person!
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What is the policy regarding bonuses?
PwC
Bot vs Person!
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What is the policy regarding bonuses?
The performance and reward management process will be handled by the Assignee’s Home Line Manager; performance on assignment will however be appraised by Host Line Manager.
PwC
Bot vs Person!
54
Can I expense business trips during the assignment?
PwC
Bot vs Person!
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Can I expense business trips during the assignment?
Expenses reimbursement procedures during the Assignment will follow Host Company’s applicable business practices.
PwC
Employee relations and complianceExample business case for change
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Current process• HR/ Logistics/ IT/ Reward/ Mobility shared service centres
(SSC) • Key considerations:
− Human Errors, regular training required, high staff turnover − Data security concerns− Low capacity for personalised service where needed
Alternative approach: Digital Workers1. Machine Learning (ML) Bot combined with human workers:
80/202. Key considerations:
− Enhanced agility, e.g. policy changes− Data analytics capabilities & automatic language translation − Higher capacity for a personalised service where needed
Estimated cost of current process EUR
Cost of a dedicated specialist11Includes benefits, pension, tax, and social security
80k
Cost of 10 specialists 800k
Training and updates 100k
Attrition (assume 1 leaver p.a.) 80k
Total 980k
Time investment – 0-3 months
Estimated cost and benefit of alternative approach EUR
ML bot implementation and configuration 150k
Cost of dedicated specialist 80k
Budget for changes in policies/ systems 20k
Total 250k
Time investment: 3-4 months
Cost over 3 years 2.94m
Cost over 3 years 750k
PwC
Examples of smart process automation available todayHire to retire
57
1. Develop HR strategy 2. Recruit and onboard
3. Learn and develop
4. Measure and manage
5. Compensate and reward
6. Service employees 7. Off-board
1.1. Develop human resources strategy and policies
1.2. Develop and implement human resources plans
1.3. Monitor and update plans
2.1. Develop recruiting process, and policies
2.2. Create job description and post requisition
2.3. Source candidates
2.4. Screen candidates
2.5. Select candidates
2.6. Manage pre-employment verification, immigration
2.7. Extend offer and hire employees
2.8. Onboard new hires and management set-up
3.1. Develop L&D strategy, process and policies
3.2.. Design and launch L&D content and projects
3.3. Evaluate L&D content and projects against business strategy
3.4. Manage new hire orientation and training
3.5. Develop and train existing employees
3.6. Assess L&D content and project effectiveness
3.7. Update L&D content and project based on identified gaps
4.1. Develop performance management strategy, process and policies
4.2. Develop employees performance management process and goals
4.3. Management employee performance
4.4. Manage employee career development
4.5. manage employee relations and compliance
4.6. Manage employee time and attendance
5.1. Develop compensation and reward strategy, process, and policies
5.2. Evaluate compensation against industry benchmark
5.3. Develop compensation model
5.4. Manage compensation and benefits administration
5.5. Develop and manage rewards and recognition program
6.1. Develop employee HR services strategy and goals
6.2. Develop service catalog
6.3. Develop employee intake channels
6.4. Manage employee services
6.5. Solicit employee feedback
7.1. Develop offboarding process and policy
7.2. Manage employeeoff-boarding
7.3. Provide employee placement services
Processes with high automation potential (>50% effort)
Process with Limited Automation Potential (<20% effort)
Automation can reduce cost and human errors, increase compliance and consistency, and efficiency
PwC
GM Technology Academy
58
What we covered • Why we need to adapt to
change
• The automation continuum
• Examples of smart automation today
Key messages• We are able to able to offer a
workshop to your organisation at no cost if we are notified by 30 November 2019.
PwC
Conclusions & feedback
PwC
Were with you today
Benjamin Oghene
Global Mobility BD - head of technology & [email protected]+44 (0)7771542581
Sanjita Chetri Samal
Senior Manager [email protected]+32 (0)476 860 790
Liesbeth Decourt
Senior [email protected]+32 (0)477 649 731
Nic Boydens
[email protected]+32 (0)473 910 275
Ben Sanjita Liesbeth Nic
Deborah Salmon
Senior [email protected]+44 (0) 7525 283175
Deb
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