Transcript Today's expat policy

TODAY'S EXPAT POLICY
IS YOUR POLICY STILL UP TO DATE?
12 February 2015
Sabine Rock
Mobility Consultant
Damen Shipyard
Gorinchem
Welcome
• Introduce myself – Sabine Rock
• Joined Mercer at June 2014
• Mobility experience with KPMG and TomTom
• Previously member of RIN
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Agenda
• About Mercer
• Is your Mobility policy still up to date?
 Trends & Market practice
 Segmentation of policies
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About Mercer
• World’s largest HR-consulting firm
• Subsidiary of Marsh & McLennan companies, Inc.
• 20,000 employees in 40 countries
• Consulting:
 Health
 Investment
 Retirement
 Talent
• Mobility has a very close cooperation with C&B. Both expertise's within
Talent group. In most cases Mobility is born by C&B.
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About Mercer
• Approx. 1,000 Talent colleagues worldwide
• Conducts 700+ benchmark surveys in 100+ geographic locations
• Mobility survey’s WIAPP & AIA
• Solutions in Information, Software & Tool and Services
• Different methodologies fORC and Mercer International approach
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Trends & Market practice
• International assignments are increasing
• Concerns during assignments
• Most prevalent compensation approach is home balance sheet approach
• General trend is sending employees on Local/Local plus assignments
• 90% of the organizations within the EU recently reviewed, are currently
reviewing or are planning to review their international assignment policy
• Segmentation policy approaches
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Increase of international assignments within EU
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What keeps EU employers up at night?
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Biggest obstacles to Mobility (in Europe)
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Predict the future
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Home balance sheet approach
Home balance sheet approach is still the most prevalent compensation
approach used by organizations.
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Local plus assignments
“Local employment conditions with supplementary expatriate benefits and
allowances”.
Are organizations sending employees on Local & Local Plus assignments?
The trend is Branch related!
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What policy elements have companies reviewed or are planning to
review?
• Around 90% have reviewed, are reviewing or intend to review their global
assignment policy
• Most commonly under review elements are expatriate allowances or
premiums, benefits, Short-term policies, localisation policies and intraregional policies.
• We see that organizations review policy elements, Mercer recommends to
review the whole policy
• Trend: simplification of policy
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Is your policy still up to date?
New business priorities drive ‘next-gen’ thinking
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What is driving mobility in your firm?
Where do you think, your organization fits in?
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Objectives and components of Mobility strategy
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Flexibility in role structure and strategy
• In which role is your assignee?
• What kind of Package would you offer?
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Demographic Segmentation
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Why segmentation?
• Limitations of one-size-fits-all policies
• Need to reconcile the cost control vs. international expansion dilemma
• Present business cases to management to understand the cost and
business implications of sending expatriates
• Manage exceptions effectively in a well-defined framework
• Reconcile talent management and reward / expatriate management
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How to segment your policy
Determine what is relevant for your organization:
• Step 1: Talent management and expatriate demographics
• Step 2: Introducing flexibility in expatriate packages
• Step 3: Developing alternatives
– Short-term
– Developmental
– Strategic
– Commuters
– Localisation and Local plus
• Step 4: Assembling the different components (allowances, services, etc.) of
the segmented policy.
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Before embarking on segmentation journey…
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Example global Mobility framework
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Conclusion: The right people, in the right place, at the right time… and at
the right cost
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Questions?
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