Transcript DVRC Spring Summit – 30th Anniversary
Assignments into New & Challenging Locations
Agenda Topics
Understanding the issues
Providing support
Alternative options
Proper career planning
Understanding the Issues
We are sending someone to Myanmar to start up operations there. The assignee has already agreed to take the assignment. It’s a new location for us. Make it happen!
Aaaaaah!
Vendors who can help with immigration, tax, etc.
New country setup protocol or a cross functional team Internal Security Department
Mobility Framework:
Recruitment and retention issues will occur if your mobility framework is not adapted to meet the needs of challenging locations. Flexibility is important.
Duty of Care:
Evacuation and contingency plans are critical. Reputational and employee risk if not properly planned.
Mobility Policy:
Many “expat goodies” and soft services were eliminated during the recession and policies were adopted that were not well suited to challenging locations. Does your policy have Hardship? R&R? Cultural Training? DSP?
What makes a location challenging?
Lack of International Schools
Security Concerns Inadequate Medical Care
Substandard Housing
Frequently changing immigration or tax laws
Limited Goods and Services
Small or no Expatriate Community
Remoteness
Boredom
Political Instability
Assignee Family Business Company
Addressing Challenges
• Perception of risk for taking assignment to a less “visible” location • Recognition for taking an assignment to a difficult location • Knowing when to allow or not to allow for accompanied status • Providing support to accompanied or unaccompanied families • Need to attract talent to the host location • Balancing operational requirements with frequent leaves • Developing markets may not have funds to support assignment • Coordinating with security department • Need to focus on duty of care • Retaining employee in talent pipeline
Classifying Challenging Locations
C International School Security Medical Care Housing Shopping Expatriate Community Variety of accredited international schools Security risk low; no additional company support required Top quality medical care; all urgent needs met Wide range of international quality housing available All goods and services available Diverse and large expatriate community Only one or limited international option Security department recommends driver or other precautions Local routine care is adequate; major care not available Limited international quality housing available Some international brands unavailable Moderate size expatriate community; may be of limited diversity No accredited schools Security department recommends major precautions; guards Limited clinic services Only substandard or temp. accommodation available Basic goods only Very limited expatriate community
Alternative Approaches
A, B, and C Locations
A B
Standard Long Term Assignment Benefits Standard Long Term Assignment Benefits - PLUS Additional Provisions to meet Host Location Needs
C
Alternate Mobility Approach
Tailoring the mobility package to host location conditions adds to the safety and success of an assignment. Flexibility is important!
Resident Assignment in a “B” Location
PRE-ASSIGNMENT VISIT
Allow the assignee to visit the location before moving; help set the right expectations SETTLING IN SERVICES
Ensure the assignee and family have adequate support from DSP; extra days may be needed MEDICAL
Assignee and family should have a medical check prior to travel Evacuation insurance should be in place INVOLVE SECURITY
Corporate security department should review host location and approve residential areas Evaluation of need to provide car and driver, guard, or other security measures EMERGENCY PLAN
Ensure you have an evacuation plan in place and assignee knows what to do in case of emergency and what is covered for self service HARDSHIP
Hardship should be offered and tailored to host location
Ensure your scale is high enough: 40% is becoming a more common max among non-Oil companies; among Oils, up to 80% REST & RELAXATION LEAVE
An R&R benefit should be part of the Standard LTA offerings for challenging locations Up to two trips per year to a nearby location
Alternative Approaches for “C” locations
Unaccompanied:
• Employee resides in host location, family stays behind at home • Additional home leaves provided
Commuter:
• Employee travels to host location and returns home weekly or monthly
Accompanied, Proxy:
• Worksite and assignment location are different, but both in an international location • Family lives in assignment location and employee travels to worksite during week •
Rotator:
Assignee alternates between a scheduled amount of time working when in the host location and not working when at the home location
Choosing the Right Assignment Package
Are host location conditions adequate to support a fully resident long term assignment?
YES Is there adequate schooling?
YES NO Do operational requirements require full time staffing of position?
YES NO Standard LTA NO NO Is there schooling in a nearby city?
YES 1 month on 1 month off Rotation 6 weeks on 2 weeks off Rotation Unaccompanied Assignment Proxy Assignment
Case I: Assignment from UK to Lagos
Joe Accountant
Needed in Lagos for 2 year assignment Spouse is a high income earner in UK Has a special needs child and proper education not available in Lagos
Unaccompanied assignment:
•
4-6 Home Leaves a year to visit with family
• • •
No R&R Standard Lagos hardship payment Host Location allowances based on single
•
status No housing deduction (Norm)
Case II: Assignment from Australia to Samara, Russia
Moscow Samara Julie Plant Manager
Needed in Samara for a 5 year assignment Has two children No international school in Samara, but Samara is 2 hour flight from Moscow • • • • •
Proxy assignment: Family on assignment in Moscow Assignee commutes to Samara on Monday, returns on Friday Hardship premium based on Samara COLA and host housing based on Moscow Assignee’s lodging and transportation covered in Samara
Case III: Assignment from US to a Remote Construction Site in UAE
Sam Engineer
Needed in UAE to complete 12 month construction project Construction site in remote field location Camp environment; no local housing, shopping, recreation
Rotator Assignment:
•
Employee works 6 weeks on, and is home 2 weeks not working
• •
Hardship premium for days spent in UAE only No cost of living support as daily needs provided in camp
Alternative Approach Watch-outs
Unaccompanied:
•
COST:
If the assignee has a large family, unaccompanied status may be less expensive • • because education costs would not be paid and the housing budget would be less. But if the assignee has a small family, the cost of extra home leaves and potential additional taxes may cause an unaccompanied assignment to be more expensive than an accompanied one
FAMILY:
Separation from family for extended periods may put strain on the assignee and family
POLICY:
If rationale for unaccompanied status not clearly stated, policy may be abused
Accompanied, Proxy:
•
TAXES:
The worksite and the resident location should, preferably, be within the same country. If in two separate countries additional and complicated tax liabilities may arise.
Rotator:
•
POLICY:
A separate policy is needed to govern this assignment type •
TAX:
Employee may not be able to break home residency; additional tax costs may accrue
Proper Career Planning
Out of Sight, Out of Mind
The biggest complaints from assignees in challenging locations are: I found it challenging to settle into the assignment because I did not receive adequate company support. I am worried about finding my next job in the company; it is hard to network while I am here.
When I returned from assignment, the valuable skills I learned working in a difficult location were not used or valued.
This assignment location is not a key center for the company; I feel like I am missing out on opportunities.
Proper career planning is critical for assignments to new or challenging locations and can serve as more of an incentive than Hardship or other cash allowances
Talent Management
Following the assignment lifecycle, there are three phases of talent management: Pre-assignment Candidate assessment & selection On-assignment Mentoring, monitoring assignee engagement, career planning Post-assignment Job placement, utilizing skills, tracking attrition
Career Planning
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Targeting employees with “Global Mindset” and ability to adapt culturally
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Setting assignment goals to drive success
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Identifying potential roles for the next job within the company
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Rewarding assignment with future career growth
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International assignment as part of a well developed career plan
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Assignee mentoring