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Worldwide ERC® would like to

thank today’s sponsor:

© 2016 Worldwide ERC®

September 21, 2016 11:00 a.m. ET

© 2016 Worldwide ERC®

What’s New in Global Relocation: A Look at Trends, Challenges, and Solutions

Presented byCindy Madden; Director, Consulting Solutions, Cartus

Daniel Gerlich; Director, Client Services, Cartus

Worldwide ERC® Webinar Disclaimer

©2016 Worldwide ERC®3

The views, opinions, and information expressed during this webinar are those of the presenter and are not the views or opinions of Worldwide ERC®. Worldwide ERC® makes no representation or warranty with respect to the webinar or any information or materials presented therein. Users of webinar materials should not rely upon or construe the information or resource materials contained in this webinar as legal or other professional advice and should not act or fail to act based on the information in these materials without seeking the services of a competent legal or other professional.

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Today’s Presenters

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Cindy MaddenDirector, Consulting SolutionsCartus

Daniel GerlichDirector, Client ServicesCartus

Today’s Discussion

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• Six questions for mobility managers

o What Areas are Mobility Managers Focused on?

o Are Long-Term Assignments Still King?

o Are Flexible Approaches Costing Companies Money?

o How are Companies Managing Compliance Risk?

o Are Cost Savings Concerns Actually Decreasing?

o How Does Location Matter?

• How are companies managing their programs?

o Real life client examples & best practice tips

2016 Global Mobility Policy &

Practices Survey

©2016 Worldwide ERC®

• Co-sponsored by NFTC and Re:locate

• 7th benchmark survey

• 176 global respondents

• Companies represent nearly 10 million employees worldwide

Respondents By Industry Sector International Moves Annually By Respondents

What Areas are Mobility Managers

Focused on?

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Are Long-Term Assignments

Still King?

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81% Expect long-term assignment

activity to stay the same or increase

Primary drivers for long-term assignments:• Filling Management Roles

• New Business/Start-up Operations

Long-Term Assignments: Best Practices

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• Take a close look at your policy

provisions...but balance cost

control and productivity

• Consider assignment purpose

when determining assignment

type

• Know your company’s culture

Are Flexible Approaches Costing

Companies Money?

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76%Companies seeing a demandfor greater flexibility from their mobility program

Are Flexible Approaches Costing

Companies Money?

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• Companies want flexibility to help keep costs down, yet…

flexible options may cause exceptions and drive up costs.

• Top drivers of cost increases:

o Exceptions

o “Out of Policy Decisions”

Approach 2014 2016

Ad hoc solutions 41% 50%

Tiering 39% 40%

Core-Flex 38% 30%

Flexibility: Key Drivers

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What is driving

the need for

flexible policy approaches?

Budget constraints/economic climate

Flexibility: Key Drivers

©2016 Worldwide ERC®

Changing employee expectations

(Gen X, Millennials)

is also an issue:

42% of respondents

(up 13 percentage points from 2014)

Millennials AND multiple

generations in the workforce

2010: 35% of assignees were over 40

Today: 53%!

Cartus 2016 Policy and Practices

Flexibility: Best Practices

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• Consider different flexible policy approaches

o Core-flex, tiering, menu-driven

• Know your objectives

• Put a plan in place for measurement and

tracking

How are Companies Managing

Compliance Risk?

But…46% of global mobility managers don’t

know whether their company has incurred fines,

fees, or other issues related to non-compliance.

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79%Stated that their organization’s focus on compliance has increased

How are Companies Managing

Compliance Risk?

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72% Early involvement of tax and immigration providers

56% Better tracking of assignee’s days in country

Compliance: Best Practices

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• Understand the local

regulations

• Know your company’s risk

tolerance

• Educate and

communicate; address

issues up front

• Identify potential

compliance triggers early

Add image

Are Cost Savings Concerns

Actually Decreasing?

©2016 Worldwide ERC®20

Controlling Costs:

#1 challenge past four years –

becoming “business as usual”

Increased Stayed the Same

2016 50% 42%

2014 57% 35%

2012 61% 28%

2010 78% 18%

How Companies Are Finding

Cost Savings

Why?

©2016 Worldwide ERC®21

2014: Policy#1 cost saving measure

implemented

Access to expertise

Mobility-specific technology

Volume shift capacity

Change to strategic focus ─ shared services absorbing functions

2016: Outsourcing#1 cost saving measure

implemented

Cost Savings: Best PracticesPolicy

©2016 Worldwide ERC®

• Localization, local plus, and

permanent moves

• Use of newer move types

• Flexible policy approaches to

reduce exceptions

• Global lump sums

Cost Savings: Best PracticesProgram

©2016 Worldwide ERC®

• Robust exception management

• Use data to understand your

costs and determine the areas for

possible reduction

• Soft costs matter too, don’t just

look for hard cost savings

How Does Location Matter?A Look at Regional Differences

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How Does Location Matter?

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Growth Rates: Regional Differences

Slowest growth rate for

traditional assignment types

Highest growth rates for

newer assignment types

AMERICAS Short-term Commuters

EMEA Long-term Extended Business Travel

APAC Permanent Rotational

Biggest differences were in the slower growth rates of traditional

assignment types, and the highest growth in newer assignment types.

How Does Location Matter?

©2016 Worldwide ERC®

• Top Reason for Increase in Mobility in all

Regions:

o Overall Company Growth Strategy

• Top Change Made to Achieve Cost

Savings:

o Americas: Outsourcing (73%)

o EMEA: Reducing Benefits (86%)

o APAC: Outsourcing (50%)

How Does Location Matter?

Best Practices

©2016 Worldwide ERC®

• Reflect regional nuances as appropriate

o For core-flex, make “flex” options region-friendly

o For non-core-flex, have host country protocols in

place

• Factor in culture shock!

o Beware of surprises (UK/US)

• Consider candidate assessment when

moving assignees from region to region

• Have a succession plan in place in locations

where turnover is high

©2016 Worldwide ERC®

To receive a copy of Cartus’ 2016 Global

Mobility Policy & Practices Survey,

email your request to

trustedguidance@cartus.com.

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Thank you for attending!

Visit the Worldwide ERC® web site at

www.worldwideERC.org, or contact

Worldwide ERC® for more information on

these topics. 703.842.3400

©2016 Worldwide ERC®

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