Effectively Managing Rotational Assignments An e Bay Case

Effectively Managing Rotational Assignments An e. Bay Case Study

SUPERHEROES Our expert panel today… • • Chris Pardo – Plus Relocation Services, Inc. , VP Consulting/Marketing Kelsey Mc. Kay – Plus Relocation Services, Inc. , Client Manager Eric Halverson – e. Bay, Director, HR Global Mobility Kari Boardman – e. Bay, Senior Global Mobility Specialist Sarah Beck – e. Bay, Global Mobility Manager Mike Johnston – KPMG, Senior Manager, Global Mobility Services Rob Taylor – Erickson Immigration, Managing Attorney

The Agenda Setting the stage: talent and mobility (Chris) Recent survey findings: exploring rotational assignments (Kelsey) Overview of the e. Bay Rotational Assignment Programs (RAP’s) (Eric) Considering the timing and process challenges of rolling out a new RAP wave (Kari & Rob) Considering policy and tax issues (Sarah & Mike) Q&A Close

Rotational Assignments Chris Pardo – Plus Relocation Services, VP Consulting/Marketing Kelsey Mc. Kay – Plus Relocation Services, Client Manager

The goal? Talent!!! “The number one change that CEOs are making in their talent management agenda is to elevate their focus on better developing their talent and leadership pipelines. ” – PWC’s 19 th Annual Global CEO Survey

Enter Rotational Assignments • Rotations are an opportunity to cultivate broad and diverse experiences, that improves talent development, mission delivery and collaboration. • Research has also shown that on-the-job experiences, such as rotations, contribute to 70% of an executive’s learning. • Rotations can deepen an executive’s understanding of the impact of the agency’s work on those it serves; leading to both increased engagement and improved sense of mission. • Senior Executive Service example: www. whitehouse. gov

Survey Findings Exploring Rotational Assignments Survey Report The report considers: 1) what drives these assignments 2) what companies have to say about the outcomes of rotational assignments– successes and challenges 3) who is targeted for rotational assignments 4) how employees are selected 5) program specifics of rotational assignments

Growing interest in Rotational Assignments 88% of companies predict that their rotational assignment activity will increase or remain the same in 2017 Of the 66% of companies that do currently send employees on rotational assignments, nearly two-thirds of companies already have formalized (written and documented) policies 59% indicated that they have two, three or more policies developed for managing different rotational assignment programs within their company

What is driving Rotational Assignments? What are the talent objectives?

Starting from scratch! Eric Halverson e. Bay, Director, HR Global Mobility

Starting from scratch! “Hey, we got an idea!” • Approached by the business- Tech, Finance, Analytics • Leadership Development Program 1. 0: How it works - Employee volunteers and is vetted for potential A series of four 6 month rotations, domestic and international Next rotation only identified at end of previous rotation Permanent placement after 24 months • Objectives for the EE: - Growth opportunities- Career enhancement- Leadership role International travel • Objectives for the ER - Identification and development of promising talent; develop within vs buy DNA cross-pollination of skills, culture, knowledge, internal network Cross training skills, work for different orgs and mgrs Top talent retention, succession planning

Starting from scratch! “Hey! How hard can it be? ” • First class of cohorts – 54 employees - Excited, vocal, demanding, • This will be a great opportunity for Kari! - Learning to swim by jumping (pushed? ) into the deep end of the pool. • Policies? Errrr…. . Process? Ummm…. • Soooo, you want it when? ? ?

Let’s Do This! Kari Boardman e. Bay, Senior Global Mobility Specialist Rob Taylor Erickson Immigration, Managing Attorney

Process? Ummm… What did I have to consider? • What was the immediate need? – Communication with the Program Manager – Communication to the Cohort’s • “Soooo, you want it when? ? ? ” In the beginning we had a 20 Step Process laid out – Action Step: – Responsible Party: – Timeframe for Completion: – Days out from Rotation Start Date:

Process? Ummm… Why was it hard? • • Never done before in e. Bay’s history The business itself didn’t know what they wanted to do Employees never participated We had policies in place, but how to come up with the hybrid Getting documentation created to fit the Program Onsite meetings Q&A sessions Reminding the Program Manager we do not have Fairy Godmothers with magic wands

Immigration It takes super human vision… • View the program from the business’ perspective - What is the business trying to accomplish? How will immigration influence the business’ objectives? • View the program from the participant’s perspective - What are the needs of the participant? How will immigration support the participant’s needs?

Immigration Mind reading also helps… • Expectations - Compliance – the company will obtain a work permit when required Support – work permits cannot be filed until all of the necessary information is available (from the business and the participant) Timing – work permits take time to obtain • Communication – ties the expectations together

Relocation Assistance & Challenges Sarah Beck e. Bay, Global Mobility Manager

Relocation Assistance & Challenges Relocation Benefit International Domestic Final Trip Business class exception requests - Air shipment or excess baggage? Local Moves Area orientation, local registration/settling in - Expectations Private lease requests Local move requests (SJ to SF? ) Administration Housing differential Fx fluctuations Perception of higher costs Per Diem approach Public transportation options Auto shipment vs transportation assistance Cost management Timing of leave vs. rotation start/end - Onboarding/offboarding Proof of insurance requests n/a One way per Travel Policy Shipment 2 pieces excess bags/pp Destination Services 1 -day package Assignment Housing Corporate Furnished Home Housing Norm If no home housing obligation COLA Based on salary & family size Transportation Assistance Reimbursement or direct-bill (Bay Area) Home Leave 1 trip for duration of program CIGNA Intl Benefits

Rotational Assignments – Tax Considerations Mike Johnston KPMG, Senior Manager, Global Mobility Services

Rotational assignments – tax considerations • Formulate tax policy based on program factors • Evaluate and comply with tax compliance and reporting obligations • Challenges and solutions

Formulate tax policy based on program factors • Identify entity responsible for owning the program • Review company cross-charge arrangement • Evaluate reporting lines maintained with management during the assignment period • Understand types of services rendered by cohorts and identify whether the host location benefits directly/indirectly from their services • Evaluate the tax implications of assignment length • Understand company risk tolerance with respect to compliance obligations • Formulate tax policy (tax equalization, tax reimbursement). • Document all internal processes and default positions

Evaluate tax compliance obligations • • • Evaluate tax treaty network for income and social tax obligations Identify payroll reporting obligations Understand tax return reporting obligations Understand additional reporting obligations Evaluate number of years reporting will be required based on assignment terms as well as nature of compensation items

Challenges and solutions • • • Projecting tax costs due to numerous variables and multiple assignments Streamlining reimbursement process to alleviate cash-flow challenges Facilitating compliance with multi-jurisdictional reporting obligations Complying with trailing reporting obligations Transitioning cohorts from tax equalization to localization in the final work location upon graduation from the rotational program

Questions & Answers

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