Optimize the Global Talent Mobility Program Focus on

Optimize the Global Talent Mobility Program Focus on repatriation to achieve longterm ROI. Mc. Lean & Company is a research and advisory firm that provides practical solutions to human resources challenges with executable research, tools, and advice that will have a clear and measurable impact on your business. © 1997 -2020 Mc. Lean & Company is a division of Info-Tech Research Group Inc.

Our understanding of the problem This Research Is Designed For: • HR leaders looking to optimize their current global talent mobility program. • Business leaders responsible for global talent mobility in their divisions. This Research Will Help You: • Assess your current global talent mobility practices. • Define the best fit global talent mobility program use cases. • Develop your global talent mobility policy. • Set global talent mobility initiatives to support employee performance before, during, and after a global assignment. • Measure the effectiveness of your global talent mobility program. Mc. Lean & Company | 2

Executive summary Situation Complication Solution In today’s increasingly globally connected environment, global business is no longer limited to large organizations. Companies of all sizes are expanding their footprint around the world and fast: over the past two to three years, organizations have seen a 63% increase in the need for cross-border work (Source: Harvard Business Review, 2014). The increasing economic presence of emerging markets means transactions must include a two-way cultural understanding – not just implants of ideas and operations from Western countries. Cultural training has become more than a nice to have – it is essential to forming lasting global relationships. Since repatriation is the biggest challenge for employers, focusing the program with the end in mind is especially important for career planning and retention of key global assignees. Organizations must focus on creating pro-active global talent mobility programs that support their business strategy, workforce planning needs, and address all compliance issues seamlessly. Otherwise they risk failed assignments and disengaged repatriating employees who often leave taking their global knowledge with them. Mc. Lean & Company Insight Global talent mobility is no longer about transplanting home office leaders to foreign countries – it’s about stationing the best talent in the right place, at the right time, for the right reasons. Organizations must support the employee before, during, and after their assignment to optimize the talent development opportunities associated with a global assignment. Only then will organizations see the cost benefits of global assignments. Mc. Lean & Company | 3

Use Mc. Lean & Company’s framework to optimize global talent mobility programs Mc. Lean & Company helps you create a program that is tailored to your organization's business goals and talent priorities. Mc. Lean & Company | 4

Sample Slides

Cost reduction and talent management integration are key priorities in the optimization of global mobility programs Cost-effective, accessible programs that support talent needs are what organizations are planning for. More Effective Cost Management of Mobility Costs 58% Key Global Talent Mobility Priorities Ensuring Consistency of the Relocation Services Across the Organisation 53% Integration of Talent Management 47% Better Compliance of Mobility Programme with Tax Legislation 39% Better Control of Tax Preparation and Reporting 38% Improving Quality of Management Information on Mobility 37% Expansion into New Countries/ Markets 34% Improving Repatriation Management 34% Centralising Mobility Management 32% Policy Review 30% Developing/Enhancing Internal Key Performance Indicators to Monitor Mobility Activities Developing/Enhancing External Key Performance Indicators to Evaluate Mobility Suppliers 23% 18% 0% 10% 20% 30% 40% 50% 60% 70% Source: Global Mobility Survey, 2013 Mc. Lean & Company | 6

Mc. Lean & Company’s Global Mobility Spectrum depicts how global mobility use cases impact program investment Use cases, workforce planning, and business needs will help you determine type of talent required, which in turn dictates program investment. Organizational investment into global mobility programming Skilled Operations Employees • Short-term assignments • Necessary skills transplant • Meet performance expectations • Low to medium future leadership potential • Short-term ROI • Map to current workforce plans High-Performing Employees • Short- to long-term assignments • Highly specialized or strategic capabilities transplants • Exceed performance expectations • Serve a critical or leadership role • Short-medium term ROI • Map to current/medium-term workforce plans High-Potential Employees • Short- to long-term assignments • Strategic and development-focused capabilities transplants • Exceed performance expectations • Strong future leadership potential • Long-term ROI • Map to long-term workforce plans Organizations must invest more into these employee groups to optimize the global experience for both the employee and the organization Use Mc. Lean & Company’s Global Talent Mobility Assessment Checklist to determine if your program is meeting your needs. Types of globally mobile employees by workforce planning term and immediacy of ROI Mc. Lean & Company | 7

Determine the components of your global mobility policy Identify appropriate allowances for the global assignee. In-house or outsourced? Cost of living allowance: • The cost of everyday goods and services vary significantly between countries. To ensure an employee does not take a large financial hit for accepting a global assignment, a cost of living allowance is typically applied for all but the shortest assignments. • The consumer price index (CPI) is often used to inform the cost of living adjustment. • By comparing the CPI in one country to another (e. g. the OECD reported that in the second quarter of 2015, the CPI in Japan was 103. 8 vs. 145. 7 in Turkey), organizations can determine how much of an adjustment is necessary. • Apply the cost of living allowance as a per diem allowance in the case of shorter-term operational assignments where the employee travels without their family. Could be calculated in-house using published CPI rates, if available, or purchased externally from a variety of third-party vendors. Hardship allowance: • Where the living conditions in the host country are significantly lower than that of the employee’s home country, assignments in that country can also be less attractive. • To secure the right talent for the assignment, a hardship allowance can be offered. • This is particularly important for operational or high-performer assignments, where there is less likely to be local talent with the required skill set readily available if non-host country employees are reluctant to take on the assignment. Typically data on hardship allowance rates is purchased from a third-party vendor. Mc. Lean & Company | 8

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