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HR CHALLENGES IN THE GLOBAL MARKET
Set the global sceneLook at recent history
Glimpse of the future
Explain current
international mobility
environmentTrends in international assignments
Develop your
understanding of
international mobility
Provide insights on attracting,
deploying & retaining
international assignees
Discuss global
immigration trends & issues
Questions &
Comments
1991Lecture at Hong Kong University
by noted Futurist
“Whereas the 19th and 20th century struggles between nations had been over empire and land, the 21st century
would be dominated by international competition for skilled labour.”
Our Future, Our World
Liberalisation of trade
Giant growing youth bulge
Penetration of the internet around the world
Market demand for a labour force which has truly global experience
Creative connective thinking
The New Global Village
By 2050 there will be 2 billion teenagers on earth and a progressively rising median age worldwide
Huge competition for internships (Infosys & Intel examples)
Dissolution of trade barriers and rise of internet results in massive expansion of choice and in turn the need to simplify
The iPod and eBay experience
Eurabia phenomenon– South of Mediterranean have vast population but inconsistent
opportunity– North of Mediterranean have vast opportunity but desperately
need people
A. Inability to secure skilled staff
B. High cost of skilled labour
C. Competition from low cost countries
D. Competition from domestic producers
E. Insufficient labour flexibility
F. Insufficient domestic market growth
G. Inability to retain skilled staff
H. Poor innovation culture
I. Inability to secure export markets
What are the barriers to company success over next three years?
What are the barriers to company success over next three years?
74% Inability to secure skilled staff
Competition from low cost countries
Insufficient labour flexibility
Poor innovation culture
74%
Inability to secure export markets
High cost of skilled labour70%
63%
59%
57%
47%
46%
23%
20%
Inability to retain skilled staff
Insufficient domestic market growth
Competition from domestic producers
Source: World Class Skills for World Class Industries Australian Industry Group, May 2006
A. Developing offshore production facilities
B. Securing export markets
C. Benchmarking company performance
D. Being lean (driving down costs)
E. Introducing new technology and processes
F. Building strong supply chains
G. Upskilling existing and older staff
H. Introducing new products and services
I. Building the skills base
J. Strengthening growth opportunities
What are your strategies for remaining competitive over the next three years?
What are your strategies for remaining competitive over the next three years?
93% Strengthening growth opportunities
Introducing new products and services
Building strong supply chains
Benchmarking company performance
74%
Securing export markets
Building the skills base85%
80%
79%
78%
78%
78%
70%
40%
Being lean (driving down costs)
Introducing new technology and processes
Upskilling existing and older staff
19% Developing offshore production facilities
Source: World Class Skills for World Class Industries Australian Industry Group, May 2006
World Class Practices
‘World Class’ firms demonstrate the following characteristics:
Their workforce are more highly skilled
While all firms value employability skills highly, world class firms put a higher premium on technical competence
They have significantly less trouble finding people with the right attitude, problem solving skills, pride in their work and appropriate work experience
They are more likely to have formal skills assessment processes and workforce development plans in place
Skills shortages and tight labour market
General increase in regulatory activities and compliance requirements
Cost management also a focus Increased complexity of employment of people internationally
Increase in offshore/international activities
Increase in mobile workforce (current and international recruits)
Need to attract and retain staff internationally
More employees spending more time in more foreign locations
Regulatory, organisational, employee and third party stakeholders
Approach often decentralised and variable
International Mobility Environment
International Mobility Environment cont/d…
Identifying the issues and risks associated with international mobility:
Attract and retain the right people
Personal health and safety for the assignee and family
Equity and fairness
Legal issues
Immigration compliance
Taxation and tax compliance
Cost
Some Trends in International AssignmentsIncreases Benefits for spouse and family
New assignment types
Pre departure preparation to ensure safety and compliance
Self service, budgets, flexible benefits, local terms
Demographics and types of roles eg. female assignees, international recruits, technical roles
Focus on compliance
Reductions Costly benefits
Proportion of assignees on full expatriate terms
Home sale assistance
Right of return
Understanding and Avoiding Barriers to MobilityThe Opinion Gap – Family
Are you over compensating for the spouse?
= Individual perception of barriers
= Corporate perception of barriers
Willingness ofspouse to move
Children’seducation
Loss of partnersincome
Interruption tospouse career
Assignee
Corporate
Loss of partners income
Interruption to spouse career
Loss of partners income
Interruption to spouse career
= Individual perception of barriers
= Corporate perception of barriers
Pay on the way back is important
Pre-Departureprep
FinancialImpact
Security Repatriationpackage
Assignee
Corporate
Financial Impact
Understanding and Avoiding Barriers to MobilityThe Opinion Gap – Assignment Deal
= Individual perception of barriers
= Corporate perception of barriers
Cultural fit is critical
Hostculture
Culturaladaptation
Language Distance Standard ofliving
Desire tolive abroad
Assignee
Distance Desire to live abroad
Corporate
Cultural adaptation
Understanding and Avoiding Barriers to MobilityThe Opinion Gap – Location
Cultural adaptation
Distance
= Individual perception of barriers
= Corporate perception of barriers
Developing skills makes me more marketable
Job relatedskills
Potential fordevelopment
Leadership Professionalchallenge
Assignee
Corporate
Understanding and Avoiding Barriers to MobilityThe Opinion Gap – Career
Potential for development
Leadership Professional challenge
= Individual perception of barriers
= Corporate perception of barriers
Can you deliver work/life balance?
Career risk Work lifebalance
Personalnetworks
Health status Worknetworks in
homelocation
AssigneeCorporate
Work/life balance
Understanding and Avoiding Barriers to MobilityThe Opinion Gap – Life Impact
Why do you think individuals leave the organisation following an assignment?
A. Reduced responsibilities
B. Gain of external networks
C. Remuneration
D. Loss of internal networks
E. More marketable to competitors
Why do you think individuals leave the organisation following an assignment?
85%
67%
66%
More marketable to competitors
Remuneration
Gain of external networks
Reduced responsibilities
74%
55% Loss of internal networks
I’m worth more than you think!
What is your policy position on an assignee’s right of return?
A. Best endeavour to find a role
B. Guarantee of employment
C. Physical relocation only
D. Guarantee of role at same level
What is your policy position on an assignee’s right of return?
27%
15%
81%
58%
Guarantee of employment
Guarantee of role at same level
Best endeavour to find a role
Physical relocation only
It’s a gamble getting back
What happens to your assignees on return to Australia?
A. Stayed at same level
B. Promoted on return
C. Demoted
What happens to your assignees on return to Australia?
33%
58%
9%
Promoted on return
Stayed at same level
Demoted
So when is the career payback?
Sustained Value – Building and Using Competencies and Networks
98% Build Capability
90% Build Networks
92% Increase Motivation
On assignment Next job
43% Use newCapabilities
49% Use new Networks
7% Are Motivated
A lot of wasted investment?
Application to Assignee Profiles
Assignee profile
Key Individual Motivations
Corporate Issues to Manage
Decision to Go Reintegration Career Outcomes
Adventurer • Building skills and experience
• Longer term career impact
• Practicalities are ignored
• Candidate selection
• “Cash in" on experience
• Loyalty
• Overtrading
• Overpaying
Ambitious Manager
• Career acceleration
• “Payback" on return
• Family vs career
• Passage home
• Little fish in a big pond
• Career "payback"
• Career stagnation
• Leveraging new internal networks
Skilled Worker
• Matching skills to role
• Life disruption impact
• Package
• Role objectives
• Overpaying
• Competitor networks
• Assignments become the career
• Staying skilled
Seasoned Executive
• Challenge of role
• Reintegration status
• Family support
• Risk reward
• External networks threat
• Using experience
• Peer progression
Access to new markets and a cheaper workforce
Corporate tax and incentive shopping
Difficulties of emerging economies to extract benefits from inbound investment
Increasing use of immigration as a corporate compliance tool and a lever to manage economy
- China
- Saudi Arabia- Singapore- Australia
Globalisation Redefined
Implement proper processes for assessing host country requirements
Develop an effective global immigration services program
Cost savings for a company often involve two aspects – time and certainty
- Government liaison
- Host country labour agreements
Information systems play an increasingly important role in managing immigration programs
Attract, Deploy & RetainImmigration Health Check
Responding to the New EnvironmentManaging International Mobility Effectively
What can you do?
Recognise the issues
Develop policies to address these issues
Implement these policies through a comprehensive and systematic process and communication
Ensure you have people who are aware of the relevant issues as well as access to specialists when you need them
Further Information
Mark Wright Jennifer Miller
Partner Director
T: (02) 8224 8513 T: (02) 8266 1421
M: 0409 600 177 M: 0418 416 160