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Propelling India Mobility Challenges, Trends and Best PracticesA RESEARCH REPORT BY WEICHERT WORKFORCE MOBILITY

®

TABLE OF CONTENTS

Introduction................................................................................................. 3

India: Ready for Business Growth................................................................... 6

Factors for Success....................................................................................... 10

India Mobility: Growth and More Growth....................................................... 18

Challenges for Mobility Program Managers................................................. 19

Diversification in Assignment Types............................................................. 22

India Mobility: By Assignment Type............................................................. 24

Domestic Transfers.............................................................................. 26

India Outbound Assignments............................................................... 28

India Inbound Assignments.................................................................. 30

Repatriations..................................................................................... 32

India Mobility Policies: Tracking and Analyzing the Return on Investment....... 34

Key Conclusion: The Need for Flexibility........................................................ 36

List of Participating Companies..................................................................... 38

All data in this report © 2019Weichert Workforce Mobility Inc.

India’s vibrant workforce is no secret to the business world. For years, global companies have been tapping into this vast and richly diverse country’s deep bench of skilled, relatively low-cost talent to help grow their businesses. But as India continues to flourish as one of the world’s

emerging markets, demand for its talent is no longer confined to companies outside its borders. An astonishing number of local companies are in high growth mode, leading to an uptick in workforce mobility to fill gaps in skills. Today, employees are no longer just moving out of India, they’re moving into and within India as well.

This mobility activity won’t be slowing down any time soon. With the Indian government easing regulatory restrictions, simplifying the visa process, and improving infrastructure, companies are better able to get the talent they need to the locations where they need them.

In the face of all this change comes the need for a richer understanding of the nuances of workforce mobility into, out of, and within India, not to mention local trends and best practices for maintaining a competitive policy and program. That was the driving force behind this research project. Based on interviews with India-based companies and corporate mobility managers, as well as research culled from our own experiences helping companies navigate this challenging landscape. The following report offers critical guidance, as your blueprint for propelling India’s workforce mobility.

Introduction

WEICHERT WORKFORCE MOBILITY 3

MethodologyThe primary goal of this research project was to develop a deep understanding of the unique challenges of India mobility, particularly those faced by high growth companies; through our research we hoped to uncover pivotal practices that may enhance mobility in this emerging market. To achieve these goals, we engaged global mobility leaders around the world via discussions, interviews, and a comprehensive survey. We also tapped into the collective wisdom of experts in the region including Dezan Shira & Associates (the region’s preeminent multi-disciplinary advisory services firm), as well as several of our distinguished regional service partners, enabling us to augment our research with first-hand inspection of the travel, language, cultural, housing, education, and cost of living challenges experienced within the country by the mobile workforce. It is our hope that organizations can leverage our research to successfully navigate the colorful and complex world of India mobility along their journey by engaging, developing and retaining top talent to fill talent gaps and retain critical skills.

SURVEY

Survey respondents were global or regional mobility contacts for organizations with on-the-ground operations in India. The majority, 82% of respondents’ companies have both inbound to and outbound from India mobility activity, and amongst those with outbound assignments, over 60% reported repatriations back to India. Half of respondents have domestic India transfers, and about 10% have sequential assignments, which include international assignees moving from one city to another within India.

INTERVIEWParticipants were mobility program owners, mobility regional owners, Indian Nationals on assignment, repatriated assignees (to/from India) and were interviewed in person or via phone. Note: in many cases, program owners who were interviewed also completed the survey.

SERVICE PARTNERSService partners were experienced destination services providers, all members of Weichert Workforce Mobility’s partner network with on-the-ground operations in India’s major cities.

4 WEICHERT WORKFORCE MOBILITY

Survey Participants by Industry:

Technology, Telecommunications, Computer

Manufacturing, Engineering, and Construction

Professional Services, Consulting, Accounting, Outsourcing

Consumer Products, Food and Beverage

Financial Services, Banking, and Insurance

Transportation and Aeronautics

Energy, Petroleum, Gas, Chemicals, Utilities, and Mining

Other

25%

18%

15%

10%

10%

8%

7%7%

*Other includes respondents from Retail, Entertainment, and Restaurants; and Medical, Pharmaceuticals, Medical Devices, Biotechnology and Health Related Organizations.


Doing business in India today is getting easier as the current administration has implemented several initiatives to stimulate growth, and in turn, these initiatives have fueled both domestic

mobility and inbound assignments to India.

Over the past few years, Weichert has experienced this first hand with clients working with mobile employees who are moving on to their second location in India. Equally, multinational corporations are hiring within India, and moving Indian Nationals domestically as part of their business growth and supporting talent strategy.

On a path to streamline processes and procedures to attract foreign investment, the government has greatly simplified the process for obtaining a visa and work permit for Foreign Nationals. For a business trip, in most cases a U.S. or Canadian passport holder can get an Indian

India: Ready for Business Growth


business e-Visa in 18-24 hours and urgent business travelers can get the same in 8-12 hours. Business visas are available for a wide range of functions including setting up business ventures, trading, recruiting talent, participating in exhibition/business meetings, conducting tours, and delivering lectures.

India provides 1.8% of the world’s manufacturing output, with manufacturing contributing 17% of the country’s Gross Domestic Product (GDP).

Under the Make in India initiative (detailed on the following page) the government aims to increase manufacturing’s contribution to GDP to 25% and create 100 million additional jobs in this sector by 2022.

Other key initiatives, introduced by the Indian government and explored on the following page, are designed to create opportunities for business growth, and in turn, domestic mobility and career enhancement.

568 PRINCELY STATES

29 INDEPENDENT STATES

7 INDEPENDENT UNION TERRITORIES


Make in India

A program to boost investment in manufacturing, which has led to an increase in investments from multinational corporations and start-ups of India-based manufacturing plants and facilities.

Other initiatives the government has introduced include:

Digital India

A program designed to transform India into a digitally empowered society and knowledge economy which has made it faster and easier to obtain visas, work permits and local registration for international assignees.

With so many aspects of daily life and work moving on to an online platform, we come to expect everything to happen in an instant. Including everything related to deploying global talent. Nowadays for foreigners coming to India, it’s so simple. We’ve even had folks ask, “is this really all I need? This email e-Visa is it?” The rest of the world could take a page out of our digital book, and make the visa process a lot faster, easier and much more effective for tracking and analytics purposes.

“ “

GLOBAL MOBILITY MANAGER, ENERGY INDUSTRY

Come make in India. Sell anywhere, [but] make in India.“ “PRIME MINISTER, NARENDRA MODI


Start-Up India

A flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities. The Government, through this initiative, aims to encourage greenfield projects to establish in India with minimal regulatory compliance and provision of financial assistance, benefiting both local Indian companies and multinational organizations.

The Start-Up India program has been a boon to our industry. It has not only provided incentives to multinationals interested in opening operations in India, like my company, but also to entrepreneurs and experts seeking seed grants for incubators on all types of projects. Through Start-Up India, setting up business is easier overall, and there are tax exemptions. Even patent filing is a much simpler process.

“ “

MUMBAI-BASED HR BUSINESS PARTNER,INFORMATION TECHNOLOGY INDUSTRY

Smart Cities Mission

Intended to improve infrastructure and living conditions across India, which has stimulated growth of Tier 2 and 3 cities. This has encouraged mobility throughout and within India not only for Indian Nationals but also for Indians on assignment to repatriate; this has also motivated many international assignees in India to stay on for sequential assignments.

It’s just the beginning, but we believe the Smart Cities Mission will contribute to an increase in domestic mobility as job opportunities open up in less crowded Tier 2 cities where the quality of life is also improving due to the building of better roads, mass transit, airports, and housing options.

“ “

BANGALORE-BASEDDESTINATION SERVICE PROVIDER


As the world’s second most populous country with the ninth largest economy, India is also a highly complex society with vastly different regions,

facing challenges for adequately supporting and sustaining the stellar pace of growth it is currently experiencing.

As a trading partner, the United States is hugely important to India; trade between the two countries increased 10% from 2016 to 2017, and is expected to increase to $500 Billion USD by 2025. More than 2,000 American multina-tional enterprises (MNEs) operate in India, more than from any other foreign country.

Equally, Indians make up the largest diaspora in the world, and in total 15.6 million people who were born in India now live elsewhere. Without a doubt, Indians play a

Factors for Success

significant role in the U.S. economy. The Wall Street Journal reports that the U.S. is the #2 destination after the U.A.E. – about two million in 2016. Over two million Indians have moved overseas in the past five years, according to the U.N. data on migrant movements published every five years.

THE FACTS:

U.S. presence in India:

6th LARGEST FOREIGN INVESTOR2nd LARGEST TRADING PARTNER

India presence in the U.S.:

2nd LARGEST DIASPORA200+ INDIAN COMPANIES 9th LARGEST TRADING PARTNER10 WEICHERT WORKFORCE MOBILITY

India: A Country of Vast Diversity

THE FACTS:

THE “TOP” CHALLENGES

According to our on-the-ground provider partners, the top challenges facing the mobile workforce in India are:

CONGESTED TRANSPORTATION

FINDING AND SECURING SUITABLE HOUSING

SCHOOLING

AIR QUALITY

MEDICAL CARE

RECREATIONAL FACILITIES

Engaging with experienced members of the Weichert Global Network of local destination service providers in three (3) major cities – Bangalore, Mumbai and

Delhi – provided first-hand exposure to the unique diversity of the country, as well as the many and varied challenges facing expatriates. Given the diversity within the country, these challenges are also issues for Indian Nationals moving domestically or for those repatriating home or to a new location in India.


Each of India’s 29 states and 7 union territories have several of their own spoken and written languages, different clothing styles, traditions, and regional cultures.

Cuisines vary as well, yet food is in many ways a metaphor for life in India - with most restaurants serving a multi-cuisine menu, shared meals are a way in which people peacefully coexist and respect each other’s customs and dietary restrictions. All of this diversity demonstrates the challenges transferees within India face moving domestically and magnifies the challenges facing Foreign Nationals coming to India.

Language and Culture

SURVEY SAYS...

Foreign Nationals moving into or within India:

AN OBSERVATION:The home finding consultant in Bangalore was a subject

matter expert in real estate, but did not know about a local

religious festival. When asked about the celebration, he

apologized and said, “India’s languages, religions, and

cultures are so diverse, it can be challenging for local

nationals to communicate too at times. As a Zoroastrian

from the Northeast, I don’t fluently read the local language

signage and I am not familiar with all the Hindu festivals.”

85%Are Offered

Cross-Cultural Training

66%Are Offered

Language Training


Housing options are plentiful – and include modern apartment complexes, duplexes, bungalows, and residential towers. However, prices are very high for expat living and continue to rise. It’s also difficult to find a one or two bedroom option, as much of the expat housing is designed for families, not singles or married couples without children. Moreover, protocols for securing a lease and negotiations are very different from city to city, so mobility program managers struggle with how to keep consistent with the overall program benefits and allow enough flexibility to adapt to local standards. In Mumbai, as an example, there is no special licensing or training required to be a real estate agent. Housing is secured through leave and license agreements typically for an 11 month term, whereas most other locations use tenancy agreements drafted in one year increments. Security deposits in Mumbai are for the full 11 months with one month’s rent payable as commission on top. Other locations, however, may only require anywhere from 1 to 6 months upfront as a security deposit on a one year lease agreement. Our survey revealed some, albeit very few, do offer a location premium or cost of living adjustment to both domestic transferees and international assignees for more expensive locations such as Mumbai, but not for others.

Accommodation

SURVEY SAYS...

Provision of the Home Finding benefit varies substantially by policy and is most commonly provided for Foreign Nationals moving into or within India.

95% FOREIGN NATIONALS INTO OR WITHIN

81% INDIAN NATIONALS OUT

55% DOMESTIC

30% REPATRIATING INDIAN NATIONALS


It is normal and customary to hire cooks, cleaners and drivers in India because each of these activities are more time consuming in India than many assignees would experience in their home country. Finding the right help can be challenging, and while the general consensus was that the best help is found by word of mouth, it’s still vitally important to check references, validate identity and background, and register employees with the police for safety. Agencies that appear to be official domestic help employment firms are not necessary regulated or actual legal entities, so the best bet is to get referrals through other expats. Word spreads and maids will often show up on move-in day to offer their services, but it’s sometimes a trial and error experience to find suitable help. This can represent a significant cultural clash for assignees who may be used to utilizing agencies over word of mouth and personal referrals. Unfortunately, destination services providers take an arm’s length approach, not wanting to take on any liability if the person they recommend does not work out.

Household Help

It is essential to verify the identity and background of hired help, through a known intermediary. Assignees should always register household help through the local police station.


Nearly all assignees send their children to international schools, which are very expensive, and therefore most companies provide a partial or full allowance as part of the assignment package for anyone bringing families on long term assignments. International school fees in India are among the most expensive in the world, so an allowance is generally needed and included in the budget and package. The good news is that, in general, the schools do not have long wait lists; the difficulty for assignees and their families is that the schools are not usually located in the center of the city, nor are they located near corporate and industrial parks where many businesses are housed, so families often need to decide whether to live closer to schools or to the office.

Education

SURVEY SAYS...

Educational Assistance varies substantially by policy and is most commonly provided for Foreign Nationals moving into or within India.

92% FOREIGN NATIONALS INTO OR WITHIN

65% INDIAN NATIONALS OUT

35% DOMESTIC

18% REPATRIATING INDIAN NATIONALS When choosing housing, many assignees

elect to live closer to the schools, but this means longer commutes for the working parent. Leverage the local knowledge of the destination provider, as well as local colleagues, and check out several different areas and styles of housing. Assignees should consider how much the daily transportation time will affect their family.


India is known as a medical tourism destination because the private health care is amongst the best in the world. However, the national healthcare system is overtaxed – crowded, understaffed, and underfinanced - and lacking in some of the basic medical equipment and machinery. Families absolutely must carry adequate insurance coverage, which is usually provided by the company.

Healthcare

Safety levels vary from place to place, and all big cities are subject to petty crimes. All public buildings, offices, hotels, airports and train stations have security checks in place. Women definitely need to be careful traveling alone, especially at night. One of the biggest threats to safety is the level of pollution which can be dangerously high at times. Families need to take proper precautions, such as wearing a ventilated mask when going out on high pollution index days, and making sure the home has adequate air purification throughout the indoor space. For these reasons, India is by most standards considered a hardship location, qualifying it for hardship allowances and additional rest and relaxation or both, depending on company policy, often determined the length of the assignment. These additional provisions are designed to help overcome any reluctance to accept an assignment in the first place, and ease the ongoing experience for those who do choose an assignment in India.

Health and Safety

When establishing country specific provisions and practices for India, it is normal and customary to provide air and water purification as basic amenities. If they are not already included in rent, then be sure the destination services provider negotiates a package to include these components and associated maintenance as part of the rental agreement.


Transportation

The traffic in India, especially in large cities is another metaphor for life – everyone is trying to get ahead, fast-paced, tooting their horns for attention, but amidst the chaos, there’s a smooth and steady harmonious hum. While the traffic stands still much of the time, road safety is emerging as a major social concern in the country and the Indian government has been attempting to tackle this crucial issue for several years. While the accident rate per capita aligns with worldwide averages, India is home to the second largest network of roads in the world, and most foreigners along with many out-of-town Indians don’t dare to drive in the densely crowded cities. Public transportation is unreliable and overcrowded. For all these reasons, it’s

essential for assignees to have a car and driver or some means of transportation provided to them for commuting and everyday living.


With India’s multitude of languages, cultures and regional variations and rich history serving as a backdrop to this comprehensive project, the feedback and results we obtained

were enlightening and confirmed that the greatest opportunities and challenges facing talent management and human resource managers in the world’s fastest growing economy, were indeed related to its high growth mode.

Growth is not only reflected in the increase in mobility into India, but also in the number of Indian Nationals leaving India to embark on temporary global assignments. In turn, returning Indian Nationals fuel additional economic opportunity through knowledge and innovative skills shared in their new roles in India.

India Mobility: Growth andMore Growth


India Mobility Policies | Challenges for Mobility Program Managers

The project results reveal some unique challenges for regional program managers compared to global program managers, as well as a significant gap between the priorities of mobility managers versus the priorities of the mobile workforce they manage.

Unlike global owners who are usually responsible for managing risk/compliance, duty of care, and controlling costs, India regional program owners, in addition to the obvious managing risk and compliance, are focused on managing customer service at the assignee level and at the management level, providing day-to-day support to “internal” clients, such as human resource business partners, senior leaders from finance, and various revenue producing business units.

Employees who manage relocation in India identified the following functions as very important or critical:

88% MANAGING RISK/COMPLIANCE74% MANAGING ASSIGNEE EXPERIENCE, CUSTOMER SERVICE72% PROVIDING GUIDANCE TO THE BUSINESS67% DUTY OF CARE66% CONTROLLING COST


The India global mobility teams report that while their current focus rests largely on logistical and tactical process related matters, they recognize the need to be more engaged in better defining the purpose and goals of their employees on assignment. At present, the pace of growth is so intense that most participants were solely focused on identifying and deploying top talent, with the plan to iron out specific roles and responsibility details later. They perceive a great need for flexibility in the way programs are administered and the provisions offered. In India, for example, where each state operates nearly like a separate country culturally and linguistically, and which continues to be viewed as a hardship destination, transportation, home finding, educational assistance, and extra home leave trips are frequently requested provisions that some say ought to be available as flexible options as long as certain criteria are met.

Global mobility program managers report a lack of clear guidelines around service delivery specifically related to a lack of defined roles and responsibilities between local program administrators versus global program owners; they also report a lack of clarity between the roles of local versus global service providers. It is also apparent that local HR and mobility managers are comfortable working with locally established business partners and are somewhat reluctant to change to global providers who are unknown to

them. There’s a perception that delays in response time are created by too many layers, but some participants acknowledged that the delays caused by bureaucracy are not a result of distance or proximity, but rather by a lack of a defined process for service recovery, and cite escalations as the greatest challenge of managing the mobility function at the regional and local level. This was echoed in the survey, with more than half of respondents indicating that they are working to better define assignment purpose and reduce contact points.

ADDING FLEXIBILITY TO THE MOBILITY PROGRAM OFFERINGS

57%

REDUCING THE NUMBER OF CONTACT POINTS57%

IMPROVING ROLE OF TECHNOLOGY AND SELF-SERVICE OPTIONS

48%

BETTER DEFINING PURPOSE OF ASSIGNMENT58%

Key steps being taken to improve functions:


Top goals for all forms of India-related relocation:

93% STREAMLINE PROCESSES91% IMPROVE COMMUNICATION, TIMELINE OF EVENTS91% ADD CONSISTENCY90% IMPROVE ASSIGNEE EXPERIENCE84% REDUCE COSTS83% ALIGN MOBILITY TO TALENT STRATEGY79% RECRUITMENT77% ADD FLEXIBILITY76% RETENTION73% REDUCE ASSIGNEE AND TRANSFEREE TOUCH POINTS

When asked about the company’s top goals for India-related relocation, beyond streamlining of processes, close to half consider consistency in program delivery, effective recruiting, and reducing costs, to be the top goals for India-related mobility whether it’s movement inbound to India or outbound from India. The quest to find suitable talent is becoming increasingly difficult, and at the same time, with more opportunities arising globally, qualified candidates are more selective in their options.

Just as mobility managers are tasked with balancing priorities of the business and supporting their employees, mobile employees face significant challenges moving within, out of, and into India. While both employers and employees are laser-focused on compensation packages, mobile employees are also generally concerned about their future career path and their family’s ability to adjust. Assignees, especially those who have been on previous international assignments, are also concerned about readjustment upon repatriation. The research revealed that the unique aspects of moving within, into and out of India warrant specific mobility program features. The specific challenges, related to each type of move, is explored in greater detail later in the document.


Diversification in assignment types, beyond the traditional short and long term assignments, both into and out of India is increasingly common, with the goal of meeting the varied needs of companies expanding operations within the country. Participants expect volume increases across most assignment types, with the biggest increases expected in short term assignments, permanent transfers, and new hires assignments. In contrast, the biggest decreases are expected in long term assignments. Roughly one third of survey participants thought mobility volume would remain consistent in all assignment categories, however, it is also noteworthy that the largest group of respondents indicate that they do not have visibility into overall move patterns, especially inbound into India. This may be because the mobility managers in India, in many instances, are only responsible for the mobility of Indian Nationals leaving from and repatriating to India, while their colleagues in other countries are responsible for Foreign Nationals moving into India. Ultimately, the research reveals anticipated increases in volumes but an overall trend toward shorter assignments.

The research also shed light on the similarities and differences between global mobility policies in general and those specific to India mobility. Respondents indicated that almost half have India-specific policies, the most common being traditional long term, short term, and permanent transfers. Despite these specific policies, almost half of respondents highlight the great need for more flexibility,

which possibly indicates that the specific programs designed for India mobility are not providing enough flexibility where needed. Just below half of respondents have new hire and repatriation policies in place, which could indicate that the companies are recognizing that the needs of these populations can be more cost effectively addressed with their own set of provisions. According to more than half of respondents, provisions for assignments into, within, and out of India are most often determined by family size, salary, destination, and assignment length. Nearly 30% did not factor in location which, based on the overall cost of living variances for expats in major cities, presents an opportunity for companies to further refine and align policies to be both equitable globally in a local context.

India Mobility Policies | Diversification in Assignment Types


WHAT IS THE OVERALL TREND FOR EACH SEGMENT OF MOBILITY OVER THE NEXT 3 YEARS?

Domestic Transfers

Permanent International Transfers

Rotations

New Hires

Domestic Assignments

Short Term International Assignment

Long Term International Assignment

Sequential Assignments

Repatriations

STAY THE SAME

UNSUREINCREASE DECREASE

30% 18%49% 4%

37% 23%32% 9%

38% 23%34% 5%

32% 37%28% 4%

24% 10%59% 7%

36% 12%24% 29%

34% 39%14% 13%

27% 8%53% 12%

50% 10%31% 9%


Delving deeper by assignment and move category, the research uncovered clear patterns in the challenges perceived by mobility managers and the employees who embark on assignments. In some cases, companies are providing the services needed to address

these areas of concern, but in other cases, there’s a clear opportunity to add policy benefits that could enhance some of these concerns. When it comes to compensation, both mobility managers and employees view the total compensation package, defined in the survey as inclusive of all tax equalized base salary, relocation allowances and benefits with a monetary value as the area of greatest concern; for the company the challenge is in establishing appropriate guidelines, and for the employee it is in ensuring that the total package is not only sufficient, but also competitive with local market cost and standard of living. Next in importance to HR, in nearly equal measure, are assignee retention and the high cost of mobility packages, while for employees, the top areas of focus are on children’s education, housing, and spouse adjustment for all move types – domestically in India, outbound from India, and inbound to India, both Foreign Nationals and repatriating Indians alike.

India Mobility: By Assignment Type


LENGTH OF ASSIGNMENT

LOCATION/DESTINATION

EMPLOYEE SALARY BAND/LEVEL

FAMILY SIZE

74%

12% 11%

YES

NO

CASE-BY-CASE

67%

56%

75%

23%

7%

29%

13%16%

5%

Through our survey and our extensive interviews with business leaders, global mobility managers, and mobile employees, we began to uncover differences in the priorities of the business and the mobile workforce. We also identified significant gaps between the concerns and challenges and the policy provisions offered.

Close to three-fourths of mobility managers reported that managing the assignee experience and providing guidance

to the business were critical to the success of the program. However, when asked about benefits, respondents indicate that in many critical areas, benefits are provided, but the level of assistance is insufficient.

On the following pages, we take a deeper look at each type of India mobility program.

Do you provide different assignment-related benefits based on the following?(excludes Don’t Know responses)


Top challenges of domestic transfers are recruiting, overall cost of mobility, and the speed to deploy talent. Global mobility managers indicate that while there are so many technically qualified candidates, these candidates are often lacking practical experience and relationship management skills. In other cases, they report candidates are demanding more from employers, which can be difficult to balance with companies cost containment efforts. HR managers are pressured to deploy in days or weeks rather than months, and as a result, often are not able to take the time to consider the impact of providing packages that are too conservative which can lead to attrition, or conversely too rich, and therefore too costly to sustain with increases in staffing needs.

Considering the employee perspective, salaries are becoming increasingly competitive, so it stands to reason that companies struggle to recruit and then deploy quickly due to the high expectations employees have related to both compensation packages and family support, with increased concern around the adjustment of family overall (spouse, kids, and where to live). With only 25% of companies providing spouse assistance, and just slightly over half (55%) providing home finding assistance, there’s a great opportunity to respond to a clearly articulated need. Companies would be well served to add these services to provide greater incentive to accept a transfer, while also possibly improving the employee’s perception of the company’s investment, and ultimately contributing to a more positive experience.

Domestic Transfers


TOP CHALLENGES

52%Recruiting

Candidates

39%EmployeeRetention

52%Overall Costs of Transfers

For Employers: For Employees:

70%Children’s Education

45%Compensation

Package

52%Spouse/Partner

and/or Extended Family Support

BENEFITS PROVIDED

39% COST OF LIVING ASSISTANCE

39% SETTLING-IN SERVICES

39% TAX ASSISTANCE

35% EDUCATION ASSISTANCE

30% LEASE BREAK

25% SPOUSE/PARTNER CAREER ASSISTANCE

17% HOME SALE

The Top Benefits: Other Benefits:

HOUSEHOLD GOODS

75%TEMPORARY LIVING

88%

MISCELLANEOUS / SETTLING-IN ALLOWANCE

71%

FINAL TRIP70%

HOME FINDING

55%


Likewise, for outbound mobility from India, there’s a gap between the expressed challenges of the mobility managers, the mobile employees, and the policy benefits provided. From the employee’s perspective, spouse adjustment, children’s education, and salary are considered top challenges. Yet, only 58% of companies provide spousal assistance, and 65% provide educational assistance to Indian Nationals moving out of India, irrespective of host country destination. Surprising, although the vast majority of school age children speak English, English is not the first language spoken and language support in the host language could be needed for students attending International, British or American schools.

Based on what we learned from U.S.-based and India- based global mobility professionals alike, as recently as a few years ago, Indian Nationals would view North American salaries as generous, only to discover upon arrival it wasn’t enough to cover living costs. Today however, assignees are more astute and understand the need for a much higher salary in the U.S. to cover costs to balance limited policy benefit coverage (housing, transportation, food, etc.), resulting in increased costs for organizations.

Unsurprisingly, the process for obtaining a visa is clearly the top challenge of India outbound assignments, and this will likely increase for Indian Nationals deploying to the U.S. as the U.S. clamps down further on immigration. At the same time, visa processing in Canada is easing up particularly for professionals and highly skilled workers, and so it is anticipated by those we interviewed with Canadian operations that the volume may shift from the U.S. to Canada over the next several years.

When it comes to specific benefits provided to India outbound assignees, the majority of companies are providing basic compliance coverage (tax and visa support), as well as the basic logistical needs associated with relocation such as final travel to the host country and temporary living. Many companies are also providing a cost of living adjustment (COLA), a practice traditionally reserved for longer term assignments, but something to consider for temporary assignments, as adjusting COLA based on location is a smoother process than any direct adjustments to salary when an assignee repatriates.

India Outbound Assignments


TOP CHALLENGES

76%Visa Process

43%Establishing

CompensationPackages



87%Compensation

Package

39%Children’sEducation

64%Adequate Housing

BENEFITS PROVIDED

88% MISCELLANEOUS ALLOWANCE/SETTLING-IN ALLOWANCE

81% HOME FINDING

81% COST OF LIVING ADJUSTMENT

79% CROSS-CULTURAL TRAINING

79% HOUSEHOLD GOODS

79% SETTLING-IN SERVICES


65% LEASE BREAK


56% LANGUAGE TRAINING

24% HOME SALE


TAX ASSISTANCE

100%IMMIGRATION ASSISTANCE

100%

FINAL TRIP91%

TEMPORARY LIVING

95%

HOME LEAVE91%


The research revealed that it is still highly challenging to attract talent to India for assignments, even though logistically speaking, the process for obtaining a visa is much easier than it is for many other countries, and overall the availability and quality of housing and educational facilities for dependent education has improved. Yet, with compensation reported as one of the largest concerns from both the business and assignees perspective, clearly there’s tension between the emphasis on controlling the costs of assignments, and employees seeking higher compensation and benefits to overcome reluctance to move (or to facilitate a transfer). Universally, our research suggests policy benefits are not as rich as they once were. India is expensive for most foreigners as prices are high on many goods and services that satisfy international norms, especially basic essentials such rent, food, and transportation. In some cases, where cost-control is even more intense, and companies have reduced allowances, assignees may not receive any transportation allowance, utilities, and furnishing allowances which can add up to significant additional costs.

India Inbound Assignments

Some assignees indicated that while services are being provided, budgets and allowances for these services are insufficient to achieve a standard of living that approximates what they are accustomed to in the home country.


TOP CHALLENGES

70%Attracting Top International

Talent

41%Establishing

Compensation Packages



50%Compensation

Package

33%Language

and/or Cultural Barriers

38%Children’s Education

BENEFITS PROVIDED

90% TAX ASSISTANCE

89% FINAL TRIP

87% CROSS-CULTURAL TRAINING

87% HOME LEAVE

73% LEASE BREAK


68% COST OF LIVING ADJUSTMENT

66% LANGUAGE TRAINING

37% HOME SALE

The Top Benefits:

Other Benefits:

IMMIGRATION ASSISTANCE

95%TEMPORARY LIVING

97%MISCELLANEOUS/SETTLING-IN ALLOWANCE

95%HOME FINDING

95%

SETTLING-IN ASSISTANCE

92%HOUSEHOLD GOODS

92%EDUCATION ASSISTANCE

92%


Repatriation presents significant challenges to companies when it comes to retention and compensation. Forty-six percent (46%) of survey respondents indicated that retention is their top concern, while compensation came in at a close second for 42% of participants. According to one individual from a high tech company with its India Headquarters in Bangalore, “If an Indian National has been on a highly inflated salary in the U.S. or UK, which is the case for many of our Indian Nationals returning to India, it’s hard enough to get them to come back, and especially difficult to roll back the salary. Wherever possible, we have started to replace salary inflation with benefits while on assignment to avoid this issue on return.”

When it comes to repatriation, global mobility managers and employees are aligned, with more than 75% of respondents indicating that returning Indian Nationals’ first concern is compensation, and 68% citing a lack of a clearly defined career path. As career opportunities grow and as retention becomes a bigger issue, companies will be well served to turn their attention to providing more benefits in kind and other incentives for highly skilled employees to repatriate into roles with clearly defined career paths that minimize the risk of attrition upon repatriation.

Repatriations

46% of respondents indicate that retention is their top concern


TOP CHALLENGES

46%Employee Retention


42%Establishing

Compensation Packages


76%Compensation

Package

32%Repatriation / Adjustment of

Family

68%Career Path

BENEFITS PROVIDED

74% LEASE BREAK

30% HOME FINDING

23% REPATRIATION TRAINING




TAX ASSISTANCE

96%TEMPORARY LIVING

100%

HOUSEHOLD GOODS

92%FINAL TRIP92%

MISCELLANEOUS ALLOWANCE

75%


Given the stellar pace of growth and focus on the more tactical aspect of getting talent from point A to point B quickly and cost consciously, it stands to reason that tracking and reporting on mobility matters is not the highest priority and therefore up until recently, fairly inconsistent and somewhat limited in scope. While matters of compliance should be viewed as mandatory and therefore one would expect reporting and tracking to be universally implemented, only 73% are tracking compliance management. Presumably, these companies are relying on this area to be managed and tracked on a global rather than a regional or local level.

When it comes to spending, almost 68% of companies are tracking exceptions and their associated costs. Yet only 33% of companies are tracking satisfaction while on

assignment and even fewer (30%) are tracking the effectiveness of their mobility program. With employee experience such a hot topic in the mobility industry these days, the lack of comprehensive visibility to the broad success (or failure) of the assignment could have far-reaching implications for organizations mobility ROI. Companies that are already tracking exceptions would be well served to analyze these exceptions and feedback on assignee experience in combination, and leverage these data points to improve and enhance their mobility programs. Moreover, such program enhancements could potentially affect recruitment efforts on the front end, and increase retention upon repatriation.

Currently, companies are not doing a great job of obtaining feedback at the end of the assignment either, with 65% reporting they do not follow up on individual employees’ status or progression within the company upon repatriation. Without this feedback, companies are missing an opportunity to gain information on employee engagement during and after the assignment. The minority of companies that do some form of tracking, roughly 22%, feel their company was at least “effective” at tracking data, but no one rated their company as very good at it. The lukewarm response possibly points to an uncertainty about the effectiveness or usefulness of tracking the employee experience. Our round table with India based leaders validates our research: with exception of two participants we learned from attendees that none of the other companies are tracking or recording any metrics around

India Mobility Policies | Tracking and Analyzing the Return on Investment

With the current state of rapid growth in India, if we wait for the perfect solutions, we’ll be too late. We have no choice but to tool up this plane while it’s in flight – we have to come up with the solutions in real-time to stay afloat.

“ “

MOBILITY PROGRAM OWNER, COMPENSATION AND BENEFITS, INDIAN FORTUNE 500 MULTINATIONAL ORGANIZATION


employee satisfaction during or after assignment. The two companies who have tracking systems implemented, also had mentor and other programs in place, but even in those instances, attendees acknowledge that the program only works when there’s a high level of retention, and mentor/mentee relationships are maintained over time. In recent years, both representatives reported instances in which home country mentors have left the organization before the assignees repatriate, which has resulted in some gaps in the program’s success.

What is tracked and/or measured as part of the employee experience?

93% EMPLOYEE SATISFACTION RATES DURING ASSIGNMENT52% JOB PERFORMANCE RATES DURING ASSIGNMENT33% EMPLOYEE SATISFACTION RATES POST ASSIGNMENT19% RETENTION RATES POST ASSIGNMENT19% JOB PERFORMANCE RATES POST ASSIGNMENT11% PROMOTION RATES POST ASSIGNMENT

What is tracked, monitored, or analyzed about your mobility program?

73% COMPLIANCE MANAGEMENT68% CONSISTENCY (FREQUENCY AND COST OF EXCEPTIONS)64% COMPANY DEMOGRAPHICS (VOLUME, SPEND, PURPOSE OF ASSIGNMENT/TRANSFER)54% EMPLOYEE DEMOGRAPHICS (GENDER, FAMILY SIZE, ETC.)51% EMPLOYEE EXPERIENCE31% EFFECTIVENESS OF THE PROGRAM

Don’t Track

65%

12%

4%

8%

11%

Tracked 1 Year

Tracked2 Years

Tracked3 Years

Other

What best describes post assignment tracking of individual employee’s status or progression within your company?


For India, as an emerging market with rapid growth and in turn, more inbound mobility, there are converging challenges experienced by businesses in their effort to

recruit talent as well as employees who are identified for international assignments. Employers are looking to strike the balance between managing costs in a market that is relatively expensive for Foreign Nationals on assignment, and providing enough incentive to attract the best talent for the roles. At the same time, highly skilled employees recognize the talent shortages and know they are in high demand. They are concerned with getting compensated not only for the job, but also for the hardships associated with living and working in India.

Key Conclusion: The Need for Flexibility

Employers are looking to strike a balance between managing costs, and providing enough incentive to attract the best talent.


Companies need programs and packages that match the circumstances particular to India. As a result, we are creating more India-specific flexible program guidelines with flexible components that vary primarily by city, accompanied status, and length of program, and to a lesser extent, band level and salary.

Organizations are already seeing the benefits of flexing their policies to country specific needs. For example, following the creation of an India-mobility policy, one high tech company reported a 20% drop in exception requests over a 6 month period; this has enabled the global mobility manager to focus the time saved on the administration of minor exception requests onto more strategic talent management initiatives. In another case, a professional services firm has been able to reduce costs by reducing household goods shipments and providing a modest furnishings allowance instead. And in another example, additional home leave trips for unaccompanied Indian Nationals is less disruptive for the family and is helping to overcome reluctance for dual career families.

IN CLOSINGOur research confirmed that the challenges affectingglobal and regional mobility managers, as well as themobile population they support, vary significantly. Accordingly, we observed a significant gap in their priorities, highlighting a need for companies to carefully evaluate existing policies to ensure the overall program supports the needs of all constituents. The outcome of this unique experiential research which combined interviews with diverse stakeholders, field work, as well as a comprehensive survey, underscored the importance of taking a holistic approach to understanding the specific challenges associated with India mobility.

We learned about the critical need to provide competitivebenefits in a market with no shortage of career and developmental opportunities, for Foreign Nationals into and within India, and for Indian Nationals on outbound assignments. That means organizations may need to explore going beyond simply covering the basics. They need to think creatively about how to best meet the priorities of their mobile workforce and the businesses they support. Organizations need to provide provisions and benefits that not only enhance the assignee experience but also demonstrate how these changes will enhance talent acquisition, engagement and retention.

When it comes to Propelling India Mobility, where the need to deploy quickly often sets the tone, there is significant value for organizations to reflect on their broader mobility program, evaluating the nature of theassignment, and flexing to the circumstances of the location and the support needed to attract, and retain,the best candidates to continue to drive business growth.


AccentureAllegionAmerican ExpressAvery Dennison Hong Kong B.V. Baker Hughes, a GE CompanyBombardier Inc.Bright InternationalCardio FitnessCaterpillarCiscoCGIComcast NBCUniversalDeloitte Consulting – IndiaDelta Air LinesDuPontDXC TechnologyEmersonEricssonEYFiDAFidelityGTC GlobalHasbroHelpAge IndiaHoneywellHP

IFCInfosys LimitedIngersoll RandKoch Business SolutionsLowe’sMarketplacers International LtdMicron Technology IncMondelez InternationalNCR CorporationNokia Solutions and Networks IndiaNorthern TrustProtivitiPrudentia Advisory LLPRB India Pvt LtdReliance IndustriesRockwell CollinsSchneider ElectricShawcor Ltd.Siemens Industry Software IndiaSil & Associates Chartered AccountantsSNC LavalinTAJ RelocationsTarget Corporation TransoceanUnited Technologies, Collins AerospaceVMware

Representative List of Participating Companies:THANK YOU!A special thank you to all our participants. As a token of our appreciation a donation has been made by Weichert Workforce Mobility to HelpAge India.

Together we’re helping elders live with dignity.

For more information on HelpAge India visit:www.helpageindia.org/

A special thank you to our industry partners for their unique insight and valuable contributions.Dezan Shira & AssociatesGlobal AdjustmentsIKAN Relocations

IOS RelocationsWriter Corporation


ABOUT WEICHERT WORKFORCE MOBILITYWe are one of the world’s leadingworkforce mobility companies,making it faster, easier and morecost-effective to deploy key talentand transfer critical skills, anywherein the world. Leveraging unmatchedflexibility, seasoned insight and deep advisory expertise, we ensure that our clients’ mobility programs advance their business goals and workforce strategies. ADDITIONAL RESOURCESFor more information and copies of other Weichert whitepapers, visit www.weichertworkforcemobility.com/industry-insights/

For the latest mobility news and trends, visit weichertworkforcemobility.com/blog

All data in this report © 2019Weichert Workforce Mobility Inc.

Due to rounding and multiple responses, not all figures add up to 100 percent.

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