mapping assignment policies to assignment objectives eca international

Mapping Assignment Policies to Assignment Objectives


ECA International

2

Agenda

Types of assignment policies

Changing workforce demographics

Drivers for assignments

Mapping assignment policies to assignment objectives

Summary


3

Local business

unit

Group level

Employee

Types of assignment policies

Historically policies tended to be based on duration


Short-term Long-term Permanent

Variety in types of international assignments

2014 Forecast 2017

56.4%48.5%

18.8%23.5%

8.6% 9.7%

13.4% 14.0%

2.8% 4.3%

Other (e.g. rotators)

Permanent transfers

Commuter assignments

Short-term assignments

Long-term assignments

Mapping Assignment Policies to Assignment Objectives4

Source: ECA’s Managing Variety in International Mobility Survey 2014

Increasing diversity of assignee populations

Mapping Assignment Policies to Assignment Objectives5

6

Change in age group profile of international assignees

Overall 2002 Overall 2014

24% 27%

70%52%

6%21%

25-35 years 36-50 years 50+ years

Average proportion of assignee workforce


Source: ECA’s Managing Mobility Survey 2012 & ECA’s Managing Variety in International Mobility Survey 2014

7

Changing workforce demographics

Profile:

Children grown up

Property owners

Retirement on the horizon

Assignment motivation:

Financial package

Location

Opportunity


Baby Boomers

1946 to 1964

Generation X

1960s to 1980s

Generation Y

1980 to 2000

Profile:

School-age children

Property owners

Planning for retirement


Career opportunity

Educational opportunities for children

Profile:

Single, no children

Rent or living with parents

Retirement not an immediate concern


Begin career outside home country

Seek well paid opportunities

Successive assignments

8

Demographic changes from 1970 to 2020


Source: http://populationpyramid.net/

9

Business objectives for different assignment types


What is the business reason for the assignment/transfer?

What is the minimum timeframe needed to accomplish this

objective?

Can the objectives be modified to accommodate the needs

of an employee if flexibility is required to meet the need?

Is the assignment or transfer employee-initiated?

What is the most likely next step for the employee at the end

of the assignment/transfer?

10

Remuneration methods


Home equityBalance sheet

Hybrid

Higher of home/host

Host local equity

Local

Local plus

Assignee host equity

Expatriate market rate

Int’l salary bands

Global equity

Nomad policiesSelect Base

11

Progressive policy approaches

An umbrella policy with a suite of tailored provisions beneath it to reflect assignment objectives, business assignment drivers and assignee drivers


Short-term

Projects

Graduate/development

Commuter

Rotator

Long-term

Leadership

Skills transfer

High potential

Permanent

Indefinite transfer

Self-initiated transfer

Global nomads

12

Development Strategic opportunity

Local opportunity

Skills/

knowledge

Employee High potential

Employee Senior level – top performers

Employee Any employee

Employee Self-initiated for a permanent move



Low developmental value

High developmental value

Low business value

High business value

Mobility strategy

Long-term assignment

Full Expat

Local Plus

Global Nomads

Hybrid

Mobility strategy

Permanent transfer

Local/Local Plus

Mobility strategy

Expat Lite

Local Plus


Mobility strategy

Expat Lite / Modified Expat

Local Plus

Long or short-term assignment

13

Strategic opportunity – can you pay a local salary?

Junior manager (EUR)

Australia

Norw

ay

Germ

any

US

A

Sw

eden

Netherlands

UK

Singapore

UA

E

Brazil

Mexico

China

India0

10000

20000

30000

40000

50000

60000

Gross

Net

Senior manager (EUR)

Brazil

Mexico

Singapore

UA

E

Australia

US

A

Germ

any

Norw

ay

UK

Sw

eden

Netherlands

China

India

0

50000

100000

150000

200000

250000

300000

350000

Gross

Net


Local salaries source: Towers Watson Global Grades 2013

14

Local plus

Bra

zil

Me

xico

Sin

ga

po

re

Un

ited

Ara

b E

...

Au

stralia

Un

ited

Sta

tes...

Ge

rma

ny

No

rwa

y

Un

ited

Kin

...

Sw

ed

en

Ne

the

rlan

ds

Ch

ina

Ind

ia

0

50000

100000

150000

200000

250000

300000

350000

Senior Manager (EUR) Net

Net with benefits



15

Expat vs. local - Brazil

Junior manager Middle manager Senior manager0

50000

100000

150000

200000

250000

Net salaries in EUR

Germany local net Brazil local net Germany expat in Brazil net



16

Expat vs. local - Germany


50000

100000

150000

200000

250000

300000

Net salaries in EUR

Brazil local net Germany local netBrazilian expat in Germany net Germany expat market rate net



17


Local opportunity

Skills/

knowledge









Low business value

High business value

Mobility strategy


Full Expat

Local Plus

Global Nomads

Hybrid

Mobility strategy

Expat Lite

Local Plus


Mobility strategy


Local Plus


18

Development / skills-based assignment: Expat lite – China to Germany


50000

100000

150000

200000

250000

Net salaries in EUR

China local net Germany local netChina expat in Germany net (full expat) China expat in Germany net (expat lite)



19


Local opportunity

Skills/

knowledge









Low business value

High business value

Mobility strategy


Full Expat

Local Plus

Global Nomads

Hybrid

Mobility strategy

Permanent transfer

Local/Local Plus

Mobility strategy

Expat Lite

Local Plus


Mobility strategy


Local Plus


20

Local opportunity

Local transfer (pure self-initiated)

Local transfer plus (part self-initiated, part company-initiated)

Tax consultation Year of transfer only Year of transfer only

Relocation flight Provided Provided

Shipping Standard provision Additional assistance

Language training None Provided

Housing allowance None Company contribution for a defined period

Education None Company contribution for a defined period

Temporary accommodation Standard provision Additional assistance


21

Mapping assignment policy to seniority


Local opportunity

Development assignment & Skills /

Knowledge assignment

Strategic opportunity

Junior manager Middle manager Senior manager

22

Summary

One policy rarely fits all assignment objectives

Changing assignee demographics and company needs lead to more complex policies

Careful consideration can lead you to select the best fit remuneration approach

Flexibility is key


23

Thank you

Antonia Kueßner

Account Manager - Client Services

ECA International

[email protected]

Questions?


mapping assignment policies to assignment objectives eca international

Documents

assignment objectives9

assignment objectives2

assignment objectives5

assignment objectives

business assignment

horizon assignment motivation

assignment objectives4

assignment objectives8