International HR Adviser Summer 2016

SUMMER 2016 ISSUE 66 FREE SUbScRIptIon oFFER InSIdE

The Leading Magazine For International HR Professionals Worldwide

Advisory PAnel for this issue:

International HR Adviser

feAtures include:the Value of Mobility technology In the VUcA World

Gender diversity And International Assignments - Still A Raw deal For Women?Addressing tomorrow’s challenges today: the Future of Global Mobility

potential ‘brexit’ Impact on Immigrationcyber-Security • tax: All change - Where to be paid & Foreign currency Issues

Serviced Apartments: bridgeStreet IQ Report: A new tribe of travellersbenefits: the Global challenge of the Growing Income protection Gap

ExpatriatE advisEr Summer Autumn intErnational Hr advisEr

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In This Issuetechnology: the Value of Mobility technology In the VUcA World Vicki Marsh, Equus Software

Gender Diversity And International Assignments – still A Raw Deal For Women?Heather Hughes, The RES Forum

Leadership: Do You Have the Right Implementation team? Five Key Ingredients For A Winning teamMarco Mancesti, IMD Business School in Switzerland

International HR strategy: Addressing tomorrow’s challenges today: the Future of Global MobilityDeloitte LLP

tax: All change – Where to Be Paid & Foreign currency IssuesAndrew Bailey, BDO LLP

Immigration: Potential ‘Brexit’ Impact on ImmigrationNishil Patel, Santa Fe Immigration Services

serviced Apartments: Bridgestreet IQ Report: A new tribe of travellersKelly Murphy, BridgeStreet

cyber-securityKatherine Maxwell, Moore Blatch

Global taxation UpdateAndrew Bailey, BDO LLP

Uber-Mobility Is the new catchphrase In Global Mobility – But Are the Apps And Robots Here to stay?Lisa Johnson, Crown World Mobility

Benefits: the Global challenge of the Growing Income Protection GapStewart Allanson, Zurich Corporate Life & Pensions

Risk: Love It or Hate It – Risk Is Here to stayTracy Figliola, Director of Global Mobility, Equinix

Global Mobility Update: “Build A Bridge And Get over It…”Emma Holder, Expat Academy Ltd

Products & services: Do You need Help Managing Your short-term Business Visitors (stBVs)?Liam Brennan, Going-there Global Destination Services

Diary Dates

Directory

HeLen eLLIott Publisher T: +44 (0) 20 8661 0186E: [email protected]

DAMIAn PoRteR Publishing Director T: +44 (0) 1737 551506E: [email protected]

KIM MILLeR Global HR Operations & Strategy Director E: [email protected]

www.internationalhradviser.comInternational HR Adviser, PO Box 921, Sutton, SM1 2WB, UK

Cover Design by Chris DugganWhile every effort has been made to ensure accuracy of information contained in this issue of “International HR Adviser”, the publishers and Directors of Inkspell Ltd cannot accept responsibility for errors or omissions. Neither the publishers of “International HR Adviser” nor any third parties who provide information for “Expatriate Adviser” magazine, shall have any responsibility for or be liable in respect of the content or the accuracy of the information so provided, or for any errors or omissions therein. “International HR Adviser” does not endorse any products, services or company listings featured in this issue.

In Loving Memory of Assunta Mondello

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INTERNATIONAL HR ADVISER SUMMER

Global Mobility professionals are not strangers to the VUCA world. Mobility has always been subject to Volatility, Uncertainty, Complexity and Ambiguity – simply by operating across every region, every possible location, there are natural disasters, wars, sudden economic changes and unexpected trends to deal with somewhere in the world. Mobility is never stable, nor is it predictable.

However, the industry has been (arguably) slow to respond to such forces, looking to traditional areas such as package redesign or benefit updates as primary tools in battling changing demands. Policies remain the back-bone of the mobility service and typically organisations still carry out policy reviews every 3-4 years, involving mammoth data gathering exercises and detailed analyses taking hundreds of hours of mobility expertise.

It is becoming more accepted that great technology is required to support even the smallest of programmes, however, even past game-changers such as social media in the workplace, mobile technology and self-service initiatives still encounter resistance in many organisations. These are the very tools that aid the mobility professional in the fast-paced, confusing VUCA world.

In the VUCA context, the mobility programme is under even more pressure to move quickly and decisively – the VUCA world can feel like a threat – but what about the opportunities?

EnableThe global mobility industry is better equipped than any to understand VUCA issues as a whole. Mobility has expertise in every region, access to information on every country and at every level of the organisation. However, successfully leveraging this advantage requires the right tools.

Technology is the enabler to understanding the business, industry and the economic environment. Technology has the power to make sense of the huge volumes of data we collect during the assignment lifecycle – demographics, cost, policy and movement over time, all of which must be analysed and visualised real-time to enable quicker, more informed decision-making for the business.

“With a common tool, I have the ability to create consistency, to bring efficiency to my global team, to have oversight on costs & risks and to subsequently put that data in the hands of anyone I need to influence or bring to a decision”. David EnserHead of Global Mobility at Adidas.

It is simply no longer possible to run a mobility programme without centralised, fit-for-purpose technology, providing real-time global access to information to stakeholders wherever they are. Not only is great technology necessary to deal with unexpected change and reduce operational sluggishness, but upcoming talent expects the latest tools to be available to them. Cutting edge technology is fast becoming as much a part of the war for talent, as are corporate brand and working culture.

InformThe key to getting ahead of the issues is knowing your organisation. Knowing exactly where your people are at any point in time is essential to mobilising in the event of a disaster; and knowing who they are and what they can do, enables the business to take advantage of new economic capabilities. Above all, knowledge of the programme as a whole helps to expect the unexpected, as well as uncover significant cost-savings and transformational opportunities:

“‘On-demand’ access to reliable and accurate International Assignment (IA) programme data has proved a game-changer for us. In recent times, our businesses have suffered the direct impact of the VUCA world. But with key programme data (assignment terms, volumes, cost and policy analytics) at the fingertips of the HRDs and Financial Controllers, Mobility has been able to adopt an agile and proactive position to aid the transformation and reshaping of our business and reduce IA programme spend by over 40% within the past 3 years.” Gareth DaviesHead of Mobility at Rolls-Royce

Further, organisations like Rolls-Royce see increasing value in central access to skills and capabilities of their workforce – assignment experience, visa status, performance over time; using the information to measure return on investment. Identifying immediately available and viable candidates with the right skills and experience – candidates not at risk of triggering a compliance issue – can save a project-based organisation valuable time and recruitment costs in the event that they win an unexpected new contract, or have to mobilise in the face of a sudden economic challenge or natural disaster.

SimplifyAdvances in technology for specialist purposes call for smart consolidation. Many organisations use six or seven different tools, spreadsheets, HR databases, business traveller or talent databases, and performance management systems, often duplicating similar information. Even smaller programmes run by only one or two people require information consolidation – those six or seven systems are often represented by six or seven spreadsheets – and email, of course.

“Our Mobility technology gave us the platform to standardise the way we deliver compensation and payroll instructions around the globe. This has enabled us to utilise our resources more efficiently. We no longer have to run multiple highly differentiated processes to deliver payroll, for example.”Steve SalmonGlobal HRIS Lead, BP

To maximise value and ensure data integrity, all these tools need to speak to each other seamlessly. It is becoming

The Value Of Mobility Technology In The VUCA World

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TECHNOLOGY

imperative that we integrate to facilitate the exchange of essential data and formulate the most accurate and informative picture of the programme within the wider HR context at any point in time. And standard integration is becoming the new ‘norm’ in the mobility world. Further, one integrated system allows division of responsibility by role and allocates responsibility for the tasks and integrity of the data associated with that role, minimising the administrative burden on the mobility team.

PredictUtil ising the best tools that are consolidated, integrated and provide real-time information directly to stakeholders adds a dimension of empowerment to the mobility leaders’ arsenal – that of predictive capabilities. Beginning with cost predictive analytics, we see higher demand for help understanding cost trends within the context of movement, assignment success and benchmarked return on investment, facilitating better-informed investment decisions within the business.

“Predictive Analytics combined with the ability to perform “what-if” analysis of changes to your policy across your entire population of mobile employees will mean that enacting proactive changes and rapidly reacting to trends will become a reality for

mobility programs of the future.” Mark ThomasCEO, Equus Software

Organisations are moving towards an approach of core consistency with peripheral flexibility, enabling an agility never before achieved in mobility programmes. More frequent policy updates are driven by assignee demographic trends and expectations around future workforce changes. With the right tools, policy review no longer needs to be a major three yearly exercise. The data is informing and predicting real-time and these predictions are shaping the future of the support provided to mobile employees. True continuous improvement is finally achievable.

At Equus we welcome VUCA. VUCA challenges our innovations and forces game-changing agility to come up with the best tools in the industry. While others may fear what is coming next, we are already working on it. Mobility can do the same – with the right tools and the power of global knowledge, masses of data and a huge network of cross-industrial priorities, Mobility is absolutely in the best-placed position to drive the strategic direction of global workforce operations – now and far into the future.

This article features in the 2016 RES Forum Annual Report: Beyond Uniformity A World of Opportunity. To view the report in full, go to www.theresforum.com/annual-report.

ViCki MArsH Head of Operations, UK, Equus Software.More than 200 global organisations rely on cloud-based technology from Equus to support their talent mobility programmes.Equus technology allows programme managers to focus on adding value totheir business by automating mundane, transactional work, while providing strategic insight to their business through data visualisation. Equus¹ clients are the happiest in the industry because of a track record of successful delivery, continuous innovation and a staff with deep experience in corporate mobility.Visit www.equusoft.com.

Equus is technical partner to the RES Forum. The RES Forum is an independent, highly engaged and international community of senior in-house International Human Resources professionals with membership in over 40 countries. Visit www.theresforum.com.

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Diversity can lead to superior ideas, business solutions and company interactions. Consequently, increasing the number of females among entrepreneurs and upper management has been on the agenda for most multinational corporations (MNCs) for many years. Despite this, the latest Female FTSE (Financial Times Stock Exchange Index of companies) Board Report (Vinnicombe et al., 2015) shows that in Europe’s largest MNCs, only 24% of board members are female.

The RES Forum, an International HR and Global Mobility networking and information sharing group with over 1000 members in more than 500 companies based in over 40 countries around the world, surveyed its members about diversity practices, with particular focus on gender equality with regard to international assignments. This research forms the basis of the diversity chapter in The RES Forum Annual Report 2016, Beyond Uniformity - A World of Opportunity, authored by Professor Michael F. Dickmann, Professor of International HRM at Cranfield University, School of Management.

IntroductionAcross many countries in Europe and elsewhere, governments have discussed or passed legislation to increase gender diversity in the upper echelons of management. The UK narrowly exceeded the European norm by coming in at 25%, demonstrating that progress has been made in the last decade. However, many countries, including the UK, still have some way to go until there is equality for both genders.

Global Careers for WomenOne of the ways to increase female leadership is to encourage and enable women to embark on global careers. According to RES Forum research, International assignments and global work experience have a positive impact on the careers of managers, in particular at middle and senior leadership levels. (RES Forum annual report 2016, Chapter 2). In addition, it could be argued that several of the requirements for success when working abroad are often likely to be possessed by women; these include generic listening, communication, empathy and diplomacy skills shown to be good for adaptation to foreign contexts, leadership behaviour and negotiation. However, the Global Mobility (GM) literature has always upheld that women are severely under-represented amongst international assignees. In addition, Nancy Adler and others have argued that this is not necessarily only related to women not wanting to go abroad or not being suitable for specific locations, but is also due to particular organisational routines and practices

Gender Diversity And International Assignments -

Still A Raw Deal For Women?In order to have a sufficient pool of female talent to choose from

for international assignments as well as top management positions, it

is essential to account for

gender diversity issues at every organisational

level.Figure 1 - What percentage of the global assignee population of your organisation is female?

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GENDER DIVERSITY AND INTERNATIONAL ASSIGNMENTS

that prevent women from going abroad. In order to have a sufficient pool of female talent to choose from for international assignments as well as top management positions, it is essential to account for gender diversity issues at every organisational level. The RES Forum team wanted to understand the status quo in member organisations with regard to this situation in our 2016 survey on diversity.

61 MNCs responded to the survey with over half of the respondents representing large corporations with over 25,000 employees. Four out of five companies operated in over 25 countries with one in five working in over 100 countries. 40% of the MNCs had at least 250 assignees. Yet the survey showed that RES Forum member organisations still have an assignee population dominated by men. As Figure 1 shows, in 57% of responding organisations, less than 20% of the assignment population is female.

While the percentage of females in the total workforce in the overwhelming majority of organisations surveyed was not equal to that of males, it can be said that there are far fewer women expatriates even in relation to total staff composition. The workforce was made up of at least 40% females in more than one third of the responding MNCs. Only one in ten of the responding organisations had a female workforce of 20% or less. It is obvious that sometimes the under-representation of women is rooted in industry standards, such as in the oil and gas industry. Yet, when considering international assignments and promotions, things are different.

Finding Suitable Female GM CandidatesTo find suitable female International Assignment (IA) candidates and to motivate them to accept work abroad is difficult. A third of responding companies find it hard to find suitable candidates for expatriation in general and about one in five admit that it is difficult to motivate them to work abroad. While this is not a rosy picture with respect to either the attractiveness of working abroad or the match to existing staff to open positions abroad, this situation is perceived to be substantially more difficult in relation to female expatriates. More than half of organisations stated that it would be difficult to find suitable female assignees, and two in five found it hard to motivate them to accept a foreign posting. This raises the question: why is it so hard to identify and motivate suitable female staff? Could this be related to the resourcing approaches of MNCs in the first place, the location that these corporations are operating in, the structure of the expatriation package or the career (including repatriation) experience of female assignees? Interestingly, research found that female assignees have higher interaction with locals and adjust better to their new work challenges abroad than their male counterparts (Selmer and Leung, 2003).

Global Assignment Gender EqualityA large majority of companies had advanced gender diversity policies and practices in place. That female and male assignees were treated differently or had different opportunities was seen to be present only in about one in ten organisations. Overall, the treatment was normally equal which may raise the question as to whether a ‘positive discrimination’ of female expatriates should be contemplated if an organisation wants to increase female assignee numbers.

Short-term Impact of International AssignmentsThe short-term impact of working abroad is positive for women but men experience better career progression. The survey asked a number of questions in relation to the impact of working abroad compared to non-expatriated peers. More than a third of MNCs who responded thought that the chance that their repatriates would leave them was high in comparison to normal attrition rates among the workforce as a whole. The reasons for repatriate churn can be manifold with ‘better opportunities elsewhere’, ‘the (comparative) loss in compensation’ and a’ dissatisfaction with their current work role’ being most prominent. With respect to other items, however, it seems that repatriates benefit from working abroad in that more than a third are promoted faster than their peers and some experience better performance ratings and faster salary increases on return. When looking at the female assignee population in particular, it is interesting to note that while fewer female repatriates seem to leave their organisations, their career progression is substantially slower in the first year after return. Career data is still positive, in that about a quarter are promoted faster than other non-expatriated peers; however this is far less impressive than the beneficial career effects for the overall expatriate population. This may be one of the reasons why some organisations find it harder

to motivate suitable female candidates to go on an international assignment.

Long-term Impact of International AssignmentsThe long-term impact of working abroad is much more positive for male expatriates. We have already shown that in the short term, the real substantial difference between the genders was that males experienced more positive career outcomes. In the longer term over a period of 5 years, however, the differences between the genders were much more marked. Even though female repatriates were more likely to stay with their organisations, their promotion speed, performance ratings and compensation growth was substantially lower than that of their male counterparts. In addition, fewer female repatriates would go onto another assignment or would work in other special project teams. While these outcomes of international

Figure 2 - How widely are the following policies and practices offered to your traditional Long-Term International Assignment (LTIA) population?

More than half of organisations

stated it would be difficult to find suitable female

assignees, and two in five found it

hard to motivate them to accept a foreign posting.

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influenced substantially by the effect on their partner’s career and on their other family members (Doherty, Dickmann and Mills, 2011). More than a quarter of MNCs do not give dual career assignment options within their organisation or provide support to assignee’s partners to find jobs. About half do not co-operate with other organisations to give dual career assignment options in any scenario and far less than half give lump sum allowances for partner support. Both male and female assignment candidates who have a partner with an equally important career may be reluctant to accept an assignment abroad due to a perceived lack of support from their partner or family.

Senior management is in a position to influence the culture in an organisation and to set the stage for GM. The RES Forum survey wanted to find out how top managers encouraged a climate that was conducive to females going on assignment. As Figure 3 shows, senior management have only announced quotas for females in managerial positions in one third of the responding companies. One respondent commented: “Our top management is male, pale and stale. So, even though they want to increase the number of females in leadership positions, their behaviour has not changed sufficiently to allow this to happen”. In addition, in only about a quarter of organisations do the upper echelons actively try to increase the number of females on international assignment. It seems that top management could still contribute more strongly to redress the gender balance in GM.

HEATHER HuGHESGeneral Manager, The RES ForumT: +44(0)207 127 8075E: [email protected]

work are still much better than those experienced by non-expatriated staff in general, it seems that the relative work-related attractiveness of working abroad is lower for women than men. However, the context of organisations may vary significantly. For instance, one respondent outlined that the career progression differences were not related to gender per se, but actually to the fact that in their organisation females went on assignments later in their careers and tended to go to popular rather than priority locations. In other words, the career ‘rewards’ may be linked to the specific context.

The survey data indicated that early repatriation is proportionally less frequently requested by women than by men, although the difference is not substantial (5%). Overall, it does not seem that performance during an assignment or the lack of willingness to ‘stick it out’ can explain why there are fewer female expatriates. In addition, female repatriates are less likely to leave their employers after return. They do not see such a significant development of their performance ratings over the longer term when compared to their expatriated male peers. The relatively less attractive career and reward deal, over time, may be one contributing factor as to why female staff are less willing to go on assignment. Could there be other policies and practices that have an impact on the supply of female candidates for expatriation?

Flexible GM Policies and Practices are neededIt is known from gender research that women find HR practices that increase flexible working options conducive to accepting international assignments. With respect to traditional expatriates, the RES Forum survey wanted to explore the popularity of flexible approaches. While this may depend very much on specific locations, the data shows that many MNCs would be able to design and implement a range of flexible HR policies. As Figure 2 shows, it is particularly rare for international assignees to be able to work part-time or to work from home, which may mean that women who are perceived to want this flexibility, for family or other reasons, may be less willing to go abroad.

Many female assignees have a dual career partner, so their decision to work abroad is

Figure 3 - How do you view the activities of your top management? Evaluate the following statements for your organisation.

ConclusionOverall, it is evident that there are proportionally fewer female assignees among responding organisations. While benefitting from working abroad, these female assignees do not get as good a deal as their male counterparts. This is surprising when considering that there are several organisational and commercial advantages associated with selecting and deploying female expatriates such as a higher sensitivity to cultural differences, better inter-cultural communication or the better performance and retention data. In essence, the insights outlined can serve as a call to organisations to rethink their GM practices with respect to gender in order to reap the benefits of having a more equally gender balanced assignee population. In turn, looking at the difficulties that MNCs have to source female international assignees, many women can learn from the Russian-born, US writer Ayn Rand who pronounced: “The question isn’t who is going to let me; it’s who is going to stop me?”

The RES Forum Annual Report 2016- Beyond Uniformity- A World of Opportunity.This article is based on Chapter One of the RES Forum Annual Report, authored by Professor Michael F. Dickmann, Professor of International HRM at Cranfield University, School of Management, and produced by The RES Forum, Harmony Relocation Network and Equus Software.

To access the full report for free, in-house GM and HR professionals can read the report in full by registering to join the RES Forum at no charge. Just click “Join” and enter your details on our website at www.theresforum.com.

Relocation Vendors and other interested parties may request a copy of the report by emailing us at [email protected].

In-house GM professionals can explore this theme in greater detail at the Annual RESymposium event in London on 29 September; 'Diversity & Inclusion- Challenges Facing Global Mobility'. Attendance is free; go to our website for more details. www.theresforum.com/events/.

The long-term impact of working

abroad is much more positive for male expatriates.

Autumn InternatIonal Hr advIser

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So, you’ve got a great idea, the funding is in the bag, and your business model has been well crafted. Success is guaranteed, right? Wrong! According to research by serial entrepreneur Bill Gross, which he discussed in a recent TED talk, the two most important factors for success for start-ups are “timing” and “team”.

Similarly, in their book How Google Works, three senior executives at the company – Eric Schmidt, Jonathan Rosenberg and Alan Eagle – note that venture capitalists “will always follow the maxim of investing in the team, not the plan”.

Indeed, the previous mantra of “set the goal, plan and implement” is increasingly being replaced by a context-centric framework better adapted to a world characterised by more volatility, uncertainty, complexity and ambiguity. And in this world, human insight is needed more than ever.

“PIKES”: The five key ingredients for teams to achieve implementation successIt’s not just start-ups launching their first products on the market which face “critical moments”. Every company has them. More and more multinationals or entire industries have to transform their organisations from top to bottom following digital disruption.

But thankfully, what makes teams successful at start-ups can also be applied to large firms. Over the last 20 years, I have had the opportunity to directly hire and/or follow the performance of several hundred key employees working on strategic initiatives. I have observed that when things go wrong, in most cases it is related to one or several of the following dimensions, which I refer to as the PIKES model.

PIKES stands for Purpose, Integration, Knowledge, Ecosystem, and Self. Although we look at each dimension separately below, the whole is greater than the sum of its parts. This is particularly essential for task forces or teams in charge of key implementations.

Purpose: The first dimension relates to an individual’s sense of purpose. It refers to the

genuine and profound personal motivation of each team member to make the project a success. Motivation is different for each individual, but it has to be there, otherwise the risk of people dropping out when the team faces its first serious crisis is very high.

Integration: The second dimension addresses the degree of integration between team members, which is really about team maturity. In other words, the team should have a deep understanding of which tangible and intangible elements contribute to its cohesion – values, behaviours, and written and unwritten rules, such as reliability for example. The concept of integration is central when hiring new team members. If the leader and the people interviewing don’t understand it fully, they will not be able to put together a high-performing team.

Knowledge: This covers the mastery of key technical competencies required for the job or the specific initiative. It also includes soft skills. In addition, knowledge is about each person’s ability to bring novelty to the table. Beyond the obvious need for innovation, a team that does not have the potential for creativity runs the risk of lacking imagination when it comes to resolving complex problems.

Ecosystem: The fourth dimension relates to each individual’s capacity to understand the dynamics of the broader environment (e.g. the company and, more generally, the

area of business) in such a way that the team can navigate and interact efficiently even during stormy weather. From an outcome perspective, we are looking, for example, for the ability to mobilise resources across the organisation and beyond, and to obtain support from key stakeholders.

Self: The fifth and final dimension is probably the least discussed in project management, but it is vital especially during the critical moments mentioned above. It addresses each team member’s ability to be in control of his or her own emotions. Uncontained stress has the potential to derail all the other dimensions. It is therefore crucial that strategic teams have stress management as a core competency and are fully aware of where weaknesses lie in order to be able to anticipate stress-related challenges.

From a management standpoint, having the right team means first selecting it and then, importantly, nurturing it.

On the next page are some risk factors as well as recommendations on how to pick the right people and nurture existing team members.

So far we have looked at PIKES from a team manager’s perspective, and as such each of the elements can be reinforced through appropriate incentives. However, PIKES is even more useful when it is applied to your own personal development journey. Think of it this way: Purpose is about coherence between our aspirations and what we actually do, integration about the way each of us is able to interact in team settings, knowledge, about continuous competency building, ecosystem refers to our business

Do You Have The Right Implementation Team? Five Key Ingredients For A Winning Team

It’s not just start-ups

launching their first products on the market

which face 'critical moments.'

The concept of integration is central when

hiring new team members.

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LEADErShIP

insight and managing self is really about our emotions. As a consequence, the common denominator between a managerial approach to PIKES and applying the concept to you is that both require conscious life-long learning. Therefore leaders should look for team members who have evolution in their DNA.

Last but not least, teams are like mirrors; they reflect the ability of top management to translate their vision into reality. So the pressure is on to choose the right people and then nurture them. The buzz phrase “people are our most important asset” really does say it all!

Back to the original question: Do you have the right implementation team?

DImEnSIon AnD rISK fAcTor SuGGESTIonS

PurposeThe risk is having colleagues who only join because “it will look good on their CV,” and then leave as soon as the heat is on.

When recruiting: Use various angles to try to uncover the “real” personal purpose. Challenge the storyline of the CV, and obtain referees’ input. nurturing: Encourage the team to share personal agendas and use every occasion to tangibly help their realisation, obviously provided there is alignment with the collective goal.

IntegrationThe risk is that team members collaborate in a suboptimal way or, even worse, might “help” colleagues fail – either actively or by omission.

When recruiting: Engage the whole team and then truly listen to all feedback. This builds collective responsibility and augments the ability to spot toxic candidates, which are the worst nightmare in any organisation. nurturing: Watch the signals when the team experiences difficult moments, especially the “I wasn’t aware” type of excuses, as they can be symptoms of deeper issues. Observe how information flows.

Knowledge and InnovationThe risk is having a colleague who “just” executes orders or is not recognised by key stakeholders as competent in his or her field.

When recruiting: Involve the technical experts who can actually judge the level of competence. Don’t be afraid of apparently unrelated skills – they can turn out to be useful for innovating. nurturing: Constantly look for gaps, measure the team’s credibility (even informally) and provide ad hoc training and development.

EcosystemThe risk is having a team member who systematically generates “antibodies” when interacting with the wider community or higher management

When recruiting:Look for a proven background in similar environments. Prior experience drastically reduces risk in this area. nurturing: Keep analysing and adapting to both the ecosystem and the broader business context; keep training team members on soft skills.

SelfThe risk is having a colleague who “short circuits” whenever stress increases, and damages previous efforts and future perceptions.

When recruiting:Look at the candidate’s self-awareness. For example, if the person is not able to explain what triggers his or her own stress, and doesn’t have personal tricks to control it, then risk rises.nurturing:The way to mastery is like sports training. Psychological preparation is key, as is being put repeatedly in situation. Management simulations can also greatly help.

mArco mAncESTIR&D Director at IMD Business School in Switzerland, and an alumnus of the HPL, AHPL, OWP and OLA programmes. He has previously written about strategy implementation and talent management.

Leaders should look for team members who

have evolution in their DNA.


InternatIonal Hr Strategy

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talent mobilisation – getting the right capabilities to the right work at the right time in the right place – is a hot topic for today’s business leaders, as they face an increasingly global workforce with less traditional boundaries, greater fluidity, and increased diversity. organisations need innovative deployment models to manage the global supply and demand of talent and to close gaps between opportunity and capability.

The global mobility team within HR, with deep cross-border talent expertise, could be a key business partner in working to solve these challenges and enabling broader organisational goals. To do so, however, mobility must be agile, business-aligned, and focused on the strategic mobilisation of talent around the globe. This is easier said than done.

Deloitte surveyed leading global companies on the evolving role of global mobility in achieving strategic business and talent objectives in 2012 and again after two years.1

Despite continued strong agreement on the need to align mobility to the business, and committed efforts to move in that direction, the survey results reveal that participants rating their programmes as “world-class” have only risen from 2% in 2012 to 8% in 2014.

How can there be so little progress when so many companies and leaders are investing so much into improving mobility programmes and practices? We discovered two different, yet related, answers to this question.

First, it’s not that mobility isn’t advancing the ball down the field, but rather that the goalposts keep moving. In other words, the expectations of mobility programmes and professionals keep evolving. The global economy is experiencing fast and fundamental changes, including transformations in the very nature of work, the workplace, and the workforce. Global mobility teams are hard-pressed to keep pace with these strategic changes, while also keeping up with the changing compliance and regulatory landscape.

Second, the investments in global mobility tend to focus on optimising or transforming programmes and processes. To be sure, this kind of work is important for creating more effective and efficient mobility functions. But such an approach often falls short of creating the true strategic business partner that so many leaders agree is needed, because it does

not achieve true strategic business alignment.To effect strategic change, global mobility

must become aligned with broader business and talent strategy; global mobility must also become more agile to respond to new and unanticipated challenges. Leaders are finding success when they draw on their global mobility team’s cross-border knowledge to partner with other areas of talent and business to address broader priorities, such as growth, leadership succession, risk management, margin protection, talent development, diversity and inclusion, and innovation. Only then will mobility be prepared help solve both today’s and tomorrow’s challenges.

Tomorrow’s ChallengesIn a recent study sponsored by the UK Government’s Commission for Employment Skills, the German consultancy Z Punkt examined future challenges and opportunities in the labour market, including implications for jobs and skills.2 The report highlights five global megatrends transforming business and work, summarised below. These are precisely the kinds of challenges moving the goalposts for mobility and facing leaders as they prepare for tomorrow.1. economic power is shifting to emerging

economies. The high-growth opportunities of these markets will drive workforce migration, mining for capabilities and skills, and growth in knowledge workers far beyond today’s dimensions

2. the digital transformation, including the ubiquitous communication and access to information it enables, will further decentralise work activity and production

3. Shifting roles in value creation are producing a more complex business ecosystem. Successful companies will orchestrate talent

inside and outside the organisation and will coordinate a “swarm” of value partners operating in virtual and fluid project teams

4. organisations and employees will need to be more flexible. As younger generations balance work and life priorities with employers’ needs, organisations will need to rethink job incentives and rewards. Key elements of the “traditional” employee-employer relationship will change

5. Demographic shifts, global migration, and generational differences will drive expanding diversity in the workforce.

In short, the global business landscape is becoming more dynamic, workforces are getting more diverse, and there are more ways and places to perform work than ever before. These megatrends and their implications are already affecting how organisations manage their global workforces and are sure to have an impact on the mobilisation of talent.

Impact On The Mobilisation Of TalentThese sweeping global changes are affecting global workforce management, with a subsequent impact on mobility.

Organisations will need to broaden their view of the talent supply chain and become agile decision-makers able to find the optimal way to source talent from an expanding array of options. Creating awareness of this dynamic and supporting all constituents, including business and HR, is essential for enabling the organisation to fully leverage a diverse, mobile, and agile workforce. In fact, this awareness and support will be one of the most critical roles that mobility professionals play within the organisation of the future. This critical contribution can take many forms, such as:

Addressing Tomorrow’s Challenges Today: The Future of Global Mobility

Figure 1

12


Providing data-driven mobility insights • and workforce analytics to drive smart business and talent decisions for cross-border staffingPartnering with enabling talent functions • to support an integrated view of talent supply and demand, and the identification of enhanced build-buy-borrow solutions to close talent gapsCreating more sophisticated capabilities • for delivering flexibility in assignments and benefits to enable non-traditional moves based on business needsSupporting and influencing the organisational • diversity and inclusion agenda by enabling diverse individuals to participate in mobility and reaching and growing new and diverse talent.

Together, these opportunities imply the need for a broader vision of “mobility” for the future.

A Vision For The Future Of MobilityLike many corporate functions, the mobility function has long strived to evolve from a reactive, operational role to a proactive, business advisory role (Figure 1).

In anticipation of tomorrow’s challenges, how can mobility and talent leaders create a more disruptive pace of change and close the large gap between current capabilities and expectations? The answer will take the collaborative effort of all the enabling talent functions.

Similar to mobility, many other talent management functions, e.g. talent succession planning, were born out of necessity. As

business demands evolve, each talent function continues to deepen their services, creating communities with a wealth of specialised knowledge and expertise within an often defined boundary. This type of organisation structure also creates silos among the talent management functions, which presents a significant barrier for driving an agile talent solution able to respond to changes in work, the workplace, and the workforce.

Organisations that aim to move the needle faster can integrate the four sub-functions and their programmes as part of a holistic talent strategy (Figure 2). This allows them to evaluate and pull the four “levers” of acquisition, mobility, development, and succession planning in the right combination, to deliver effective talent solutions that address current and future business and talent needs.

Each of these talent levers involves some trade-offs among fast, affordable, and effective. For example, a “mobility solution” to fill skill gaps may be faster but also more expensive and less sustainable than a “development solution.” Making prudent decisions requires both strong business insight and deep understanding across the four areas. A talent solution advisory function or role that can bring forth the functional capabilities of all four areas to address the business or talent needs from the holistic perspective can fill that gap (Figure 3).

Such integration at the advisory level enables an organisation to leverage and share

This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates and related entities, shall not be responsible for any loss sustained by any person who relies on this publication.Copyright © 2016 Deloitte Development LLC. All rights reserved.

functional strengths and resources, and most importantly, deliver effective talent solutions. For example, one of the strengths of mobility functions is transitioning employees (and their families) into new cultures and ways of working. Applying that same competency for coaching employees through other complex transitions can be valuable in other areas, such as onboarding new employees or equipping employees to perform effectively new leadership roles as quickly as possible.

Making It Real: Business-Aligned MobilityLeading organisations are beginning to see signs of success as they address new challenges and unanticipated changes in the workforce and workplace by leveraging mobility more strategically. Greater collaboration and integration is key, especially in impacting broader business and talent priorities such as deployment and staffing development, learning and development, global diversity and inclusion, leadership and succession planning, new market entry, mergers and acquisitions, and business analytics.

Successful leaders start with why global mobility matters to their organisations, and then define an enterprise talent mobility strategy, including how mobility can best enable broader business and talent goals. The strategy then guides the design of mobility programmes and processes, as well as lays the foundation for further integration with other talent functions to achieve strategic mobilisation of talent. Leaders need this kind of business-aligned mobility to prepare to address tomorrow’s business and talent challenges today.

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. References1 Deloitte Report: Strategic Moves: 3 Years Later

- An Evolution in Global Mobility [HYPERLINK: www2.deloitte.com/us/en/pages/tax/articles/strategic-moves-3-years-later.html]

2 UK Commission for Employment and Skills Report: The Future of Work: Jobs and Skills in 2030 [HYPERLINK: www.gov.uk/government/publications/jobs-and-skills-in-2030]

Figure 2

Figure 3

13

TAX

At the time of writing this article, in advance of the impending EU referendum, press coverage abounds as to what will or won’t happen with the UK’s exchange rate in event of certain decisions yet to be made by the UK electorate. This made me think about foreign exchange rates and some of the related tax issues. Fluctuating exchange rates could of course apply to any country and the matter is therefore relevant to all international assignees.

This article does not pretend to have the answers but instead seeks to raise a number of points to be considered of relevance when sending individuals across borders or where foreign currency issues are involved.

Typical Assignment ScenariosIf we consider typical assignment scenarios and payment arrangements these include:

Employed in home country, paid in home • countryEmployed in home country, paid in host • countryEmployed in home country, paid in home • & host or 3rd country Employed in host country, paid in home • countryEmployed in host country, paid in host • countryEmployed in host country, paid in home & • host or 3rd countryEmployed in 3rd country, paid in home & • host or 3rd country.In all instances, it may be necessary to

consider exchange rates and what rate to use to arrive at figures to include within tax returns. For example, do you use the exchange rate at the time of receipt, the average for the year or the rate at the time the tax is due?

General Tax PrinciplesA tax return is relatively easy when dealing with just one country and the currency of that country. However, complexities start to arise when looking at foreign currencies and determining the exchange rate to use to convert salary and compensation data into the relevant currency for tax reporting purposes. To my knowledge all countries want individual tax return reporting to occur in the relevant national currency. For example, a UK national on assignment working in the USA but paid

wholly or partly in the UK, needs to report taxable income in the USA in US dollars and not GB pounds sterling.

Typically the exchange rate used should be that at the time of receipt. The rates can be taken from, for example, well known currency conversion websites or national newspapers, alternatively official rates may be published. Often, where amounts paid throughout a period are relatively consistent, an average exchange rate for the period may be used for regular salary payments. A spot daily rate is typically adopted for large one off payments such as stock exercises or bonuses. If questioned or audited, the key is to be able to demonstrate to the tax authority how the tax return figures have been derived and that there is consistency to the method of calculation across assignees.

Significant exchange rate fluctuations throughout a year, as could happen with sterling, are generally best dealt with by using the relevant daily exchange rate on each payment date. There can of course be a distinct difference, up or down, between an exchange rate over the course of a tax year.

Clearly where taxes are being paid on an ongoing basis throughout the year, fluctuating exchange rates may cause minimal problems, but where taxes are paid in arrears variations in exchange rates can have a dramatic impact. For example:

Scenario 1Pay throughout tax year in Country A is 100 but the individual works in Country B and is liable solely to tax in Country B. Country B does not operate a regular withholding equivalent and tax is due after submission of the tax return on issue of an assessment. The exchange rate is 1 to 1 for the tax year in question and the tax rate is a flat 25% but at the time of payment of tax the exchange rate is 1 to 1.5. The gross income received is 100 and tax is 25 but the equivalent amount due at the time of payment is a cost of 16.67 in the Country A currency. In this scenario the tax bill effectively decreases.

Scenario 2 Exactly as above but at the time of payment of tax the exchange rate is 1 to 0.5. The gross income received is 100 and tax is still 25 but the equivalent amount due at the time of payment is a cost of 50 in the Country A currency. In this scenario the tax bill effectively increases.

This simple example shows how the cost of taxes can vary, purely through fluctuating exchange rates. Tax equalisation could exacerbate the issue as could the involvement of a third country or currency.

When looking at stock transactions typically you are seeking to ascertain when costs have been incurred and monies received. If a payment is made by an assignee on the acquisition of stock then the relevant exchange rate on that date usually dictates the cost of acquisition. If, however, the individual is merely awarded phantom stock and pays nothing on acquisition for this, the taxable figure on eventual payout is usually the fluctuation of the stock price converted at the relevant exchange rate on payout only.

Let us look at the contrasting situation of two individuals who both hold shares in their employer. These shares are owned outright by the employees. Let’s assume they both acquired 20,000 shares on the same day at a price of one pound each and both dispose of these a year later whilst they are on assignment and the share price on disposal is still one pound. As far as both employees are concerned they have made no gain or loss. However, the impact of exchange rates can be dramatic, for example:

Scenario 3 One individual goes on assignment to a country where the exchange rate on acquisition is 1:1 but on disposal the rate has changed to 1:1.5. In this situation the individual would make a gain of 10,000 in the currency of the country of assignment. This gain would typically be taxed in the country of assignment.

Scenario 4The other individual goes on assignment to a different country where the exchange rate on acquisition is 1:1 but on disposal the rate has changed to 1:0.5. In this situation the individual would make a loss of 10,000 in the currency of the country of assignment. This loss may be available for use or offset in the country of assignment.

Naturally different countries may have different rules about taxation, but it is feasible for a loss to be turned into a gain or a gain into a loss purely as a result of exchange rate fluctuations and tax is then calculated accordingly. It is a difficult situation when trying to explain to an assignee that they owe taxes based on an exchange rate gain they have never enjoyed!

All Change - Where To Be Paid & Foreign Currency Issues

14


Where To Get Paid?Given that exchange rates can cause the above issues, it is not surprising that we often get asked where an individual assignee should be paid. Inevitably this is not solely a tax question but also a combination of additional factors including: where the individual is likely to reside longer-term, where their liabilities arise and capabilities of the payroll function itself.

Dealing with these in turn:Taxes – When looking at employment

income, in most cases liability to taxes arises primarily based on where the individual is working as opposed to where they are paid. As ever there are exceptions, for example, countries which still have a remittance basis such as the UK.

Residence – Inevitably individuals typically wish to retain monies in the country where they are likely to reside on a longer-term basis. For example, if an individual is to go on a 2 year assignment from Country A to Country B, it makes sense to have only local spending money in Country B and to receive the bulk of their income in Country A. This will affect the tax due in Country B as a result of exchange rates.

Liabilities – If there are continuing financial obligations in a home country for example, mortgage, pensions & social security contributions it makes sense to receive sufficient funds in the home country in order to cover the related costs. Similarly the individual will need sufficient funds in the host country in order to meet housing and living costs.

Payroll Operation – Most payrolls can cope with making a payment to bank accounts in 2 different countries or operating separate or split payrolls. However, some payrolls cannot cope and equally some employers are averse to making separate payments or operating separate payrolls.

Exchange Control – An additional issue to consider is that of exchange control which is enforced by some countries, for example South Africa. It is necessary to check ability to move funds freely between countries as in some instances it simply is not possible.

Immigration & Labour Law – Rules on immigration and labour law may dictate that a certain amount of income must be paid in a country in order to gain access or be employed there. Adherence to such rules will be necessary.

In theory, splitting payment between home & host countries balances exchange rate fluctuations, but this may not always be possible or desirable from the individual assignee or employer’s perspective.

Adjusting Compensation For Exchange RatesOnce compensation items and payment location have been agreed what happens if exchange rates vary?

This depends on the agreement reached and company policy. Many assignees are

happy to agree fixed rates which may be specified within contracts. In other cases assignment policies may specify that elements of compensation may be adjusted where exchange rates fluctuate by a certain percentage, typically 10% up or down. This flexibility is necessary to stop constant changes to payments with every little movement but to allow a change for bigger variations. Whatever the policy, be assured that individual assignees keep a very close eye on the impact exchange rates have on them. They will certainly let you know if they are adversely affected and will selectively choose relevant periods to demonstrate this, conveniently forgetting positive impacts or rates over different periods.

From a tax perspective variations in payment merely get converted into the relevant foreign currency at the relevant time.

Banking ChargesWhere employers incur banking charges transferring or exchanging funds for employees these are typically reported as taxable income.

Financial CatastropheThe impact of exchange rates can be difficult in normal scenarios but looking again at deferred ‘Eurozone’ troubles what could happen if financial disaster strikes and Greece pulls out of the Euro?

AndrEw BAilEy National head of human capital at BDO LLP. He has over 30 years’ experience in the field of expatriate taxation. BDO is able to provide global assistance for all your international assignments. If you would like to discuss any of the issues raised in this article or any other expatriate matters, please do not hesitate to contact Andrew Bailey on +44 (0) 20 7893 2946, email [email protected]

This article does not pretend to

have the answers but instead

seeks to raise a number of points to be considered

of relevance when sending individuals

across borders or where foreign

currency issues are involved.

In theory, Greek tax liabilities derived today in Euros but payable tomorrow would still be due – in Euros presumably? If an individual assignee is paid in new substantially devalued drachmas the tax liability would increase significantly in relative terms. If however, they were paid in a currency other than Euros, the impact of any Euro devaluation would effectively reduce their tax bill.

Notwithstanding theoretical events, a standard currency zone does generally remove the challenges relating to tax and exchange rates but despite a currency link, external events or pressures can create real problems.

This scenario occurred in early 2015 when the Swiss Franc was decoupled from the Euro and increased substantially in value overnight by circa 20% against the Euro. For individuals paid in Euros, Switzerland suddenly became that much more expensive as an assignment location. For Swiss individuals on assignment to a Eurozone country, continuing payment in Swiss Francs resulted in a ‘spending windfall’. This could happen with the UK’s EU referendum with rates fluctuating in the aftermath of the result. Time will tell which way.

SummaryCountries and currencies may vary but the principles set out in this article should hold true.

Tax is already often difficult to calculate when individuals move across borders. The impact on tax and costs of exchange rate fluctuations adds another layer of complexity. The approach taken by tax authorities to foreign exchange fluctuations and the difficulties these create is in many circumstances neither logical nor sympathetic. Being aware of potential issues can only help.

Autumn InternatIonal Hr advIser


immigration

17

at the time of writing this article it is still unclear as to the outcome of the Brexit vote. it is apparent though from the numerous debates across the media that regardless of the decision, and with the focus on reducing net migration figures, there is likely to be a change in immigration policy.

A vote for the United Kingdom to ‘leave’ the European Union (EU) could impact employee mobility, immigration, and UK citizenship status. Many organisations are therefore concerned about what such an exit would mean for their workforce, and the consequences it could have on the status of their EU nationals in the United Kingdom.

There has been much debate regarding the potential of Britain exiting the EU. The disagreements and divisions between British political parties on whether to leave or stay within the EU have provoked heightened debates surrounding how immigration and free movement would operate for both UK and European based businesses.

The Eurosceptic sentiment among politicians and individuals within Britain has become more evident with the incentive to sway votes for the upcoming referendum (23rd June 2016). A withdrawal from the EU could mean many things for EU migrants and businesses within the UK and in Europe, thus potentially including the need to apply for a visa to reside, work and study within the UK if coming from an EU member state. It is therefore important that individuals and businesses are aware of how a majority vote to leave the EU could impact immigration and that global businesses ensure they are prepared through diligent workforce planning for overseas assignments to the UK.

‘Brexit’ still largely lacks definition, and in the event of a vote to ‘leave’, changes in law are possible, and there could be an impact on immigration and the mobility of employees.

For example, there could be limitations on immigration – from both inside and outside the European Economic Area.

Currently EU citizens and their family members have the right to move freely and reside within the EU. They are able to remain in the EU for 3 months and then must either be a qualified person to remain further. This would be an individual who is self-employed, employed, and self-sufficient, a student or a job seeker.

The primary aim of free movement within

the EU is to support the internal market and to encourage social integration. Being a member of the EU allows nationals of a European Union country to move, live, and work from one member state to another. EU nationals are free to enter the EU with presenting their EU passport or identity card. Potentially, ‘Brexit’ could restrict employee mobility or lead to discrimination risks for employers, who may be hesitant to go through an onerous immigration process to recruit EU nationals.

There is also a question of how UK nationals in EU countries or EU nationals in the UK will be tracked. Currently, there is no system which enables the government to monitor how many individuals will be affected. Will we have to resort to the biometric residence card, whereby each individual will be required to apply for a residence card in order to verify their immigration status? This will prove a large burden on organisations to ensure that each of their EU employees will apply and are able to confirm that they are able to work.

The government have not devised a clear strategy as to the actual impact of a BREXIT. It is understood, that it would take many years to formalise a policy. There are considerable legal hurdles to consider including the negotiation of new trade agreements, revision of UK immigration legislation. Could Britain revert to similar treaty agreements to Norway and Switzerland? How will the other EU member states react? We should prepare for a change to immigration policy and it is important that organisations take action now.

Points To Consider:A post-Brexit EU could still permit • free movement, albeit with additional immigration and border control policiesIndividuals who previously came to the UK • without being required to obtain visas could have additional requirements imposed upon them, either before travel or at the borderClarity is needed on whether EU nationals • already living in the UK would be permitted to stay, or be required to attain citizenship. Will EU nationals who have lived in the UK for at least five years, for example, and who have been exercising their Treaty Rights (working, self-employed, or a student) automatically have permanent residence status conferred upon them?

Potential ‘Brexit’ Impact On Immigration

nishil PatelSenior Manager, Santa Fe Immigration ServicesNishil is a qualified solicitor and has over nine years UK immigration experience. He leads and manages Santa Fe’s UK Immigration practice. He has extensive experience in providing UK immigration advice for corporate accounts. This includes managing immigration programmes focusing on risk and compliance, being the main client/ assignee contact throughout the process from case initiation through to its completions as well as attending a client’s premises to deliver training. He presents at global mobility events and seminars to corporate clients. He is also a regular attendee of Home Office Panel meetings and consults with the Home Office on immigration policy matters. [email protected]

The disagreements and divisions

between British political parties on whether to leave

or stay within the EU have provoked heightened debates.

18


In the past, fully-equipped furnished or “serviced” apartments were considered only for relocation and extended stays of more than a week or two. But according to The New Trend Shaking up the Hotel Industry from Huffington Post travel, times are changing.

“Aparthotels, or serviced apartments, are popping up in major cities across the world, and with comparable nightly rates to traditional hotel rooms, they are staking their claim on the hotel industry,” Huffington Post indicated in the article.

Things are changing – but who are these travellers, and why are they choosing this alternative to hotels? What the industry has traditionally known about travellers is shifting; age of travellers, habits, expectations, and experiences have transformed.

To understand this new tribe of traveller, BridgeStreet Global Hospitality conducted a study with the goal of revealing new insights into the ‘new tribe of travellers’ and their desire for alternative accommodations and authentic experiences. The study was based on responses to travel questions that surveyed travellers from around the world.

ParticipantsOf those 710 travellers participating in the survey, 46.2% hailed from Europe, 39.9% from the Americas, 8.6% Asia Pacific, 4.2% Middle East, and 1.1% from Africa.

BridgeStreet’s survey findings uncover some surprising revelations. Memorable accommodations and hyper-local experiences beat out convenience and budget as top travel priorities - and not just among millennials - 40 percent of survey respondents are between 35-50. Nearly 60 percent want an unbeatable location in the heart of the city and 72 percent of respondents prefer alternative accommodations, such as serviced apartments, to branded hotels and peer-to-peer lodging services.

These travellers aren’t slowing down, either. According to the study, more than 70% of those surveyed plan to be on the road two or more weeks this year, the majority of which name Europe and the US as top destinations.

A closer look at the four age groups surveyed revealed subtle differences in travel patterns, with 64% of the 18-34 group planning two or more weeks travelling, while more than

three quarters of the 51-69 group planning more than two weeks away from home.

“The most dominant age range of our study group by far is 45-54 year olds,” said Kelly Murphy, Senior Vice President of Marketing, BridgeStreet. “This is as expected, as the average age of business travellers is 47.5, but close attention should be paid to the fast-growing 35-44 age range, a generation that are natural inhabitants of the digital, blurred lifestyle and are very open to bleisure travel.”

Traveller PreferencesBut age is just a number. Our main focus is the preferences of travellers - asking questions like when customers travel, what their top priority is, what type of accommodations they prefer, what’s their favourite added comfort, and which option best represent localised accommodations, is key to executing a successful product & service.

In response to those questions, 40% of travellers said staying in unique and comfortable accommodations is the foundation for a memorable trip – beating out budget and convenience by far. Being anywhere with a variety of activities that are hyper-local to the destination was the most important factor of those aged 18-34 and for 38% of those aged 35-50. For all other age groups, and increasingly as they mature, accommodations were seen as the top priority when travelling.

But what type of accommodations do travellers prefer? At 72%, alternative accommodations, such as serviced apartments, were by far the most popular choice of place to stay, with their benefits of space, unique buildings and great amenities.

“Serviced apartments are the perfect hybrid accommodation, providing the amenities of a hotel, with the space and comfort of an apartment,” said Murphy. “When we asked survey respondents what their favourite added comfort is while travelling, ‘space to sprawl’ was the top consideration.”

How much does location play a role? 59% of surveyors agreed that an unbelievable location in the heart of the city best represented localised accommodations, edging out friendly staff with local recommendations, buildings that feel authentic to its location, subtle elements of locality through artwork or architecture, and onsite food and beverage from local vendors.

Travel PlanningNow that we know their preferences, how do they plan their travel? On average, 37% of respondents’ travel budgets is spent on accommodations. While 18-34 year olds spend the biggest proportion of their travel budget on entertainment, those in the 51-69 age group travel in style and spend the biggest proportion of their budget on transportation.

With that, nearly 95% of respondents said they research and make their own travel arrangements – just 5.1% said they relied on a travel planner or third party for travel logistics. When planning for their trip, 44% across all demographics said they travel with their significant other, followed by 29% that travel with their family. Respondents indicated that getaways with a partner are the most enjoyable. Trips that involve the entire family usually consist of kids, parents, and grandparents.

The Bleisure ExperienceAccording to The Bleisure Report, another survey published by BridgeStreet in 2014, 60% of 650 business travellers said that they take extended executive trips that have a leisure component. 54% of respondents reported they had a significant other accompany them on a business trip.

Results from the IQ report show that 54.9% said they will travel once or twice in 2016 for

BridgeStreet IQ Report: A New Tribe of Travellers

Serviced apartments are

the perfect hybrid accommodation,

providing the amenities of a hotel, with the

space and comfort of an apartment

19

SERVICED APARTMENTS

business. When asked what their employer could do to drive more loyalty in regards to business travel, freedom of choice in accommodations preferences was a widespread theme. Extending beyond just business, 60% of respondents have planned ‘bleisure’ travel in 2016, extending business trips into vacations.

“To meet both business and leisure customer needs, the industry needs to do a better job of educating their customers about their offering and tell guests what they should see when they get there. They need to provide additional local services and really bring their brand to life,” said Murphy.

Responding to travel changeSo what now? How does this information change the positioning and demand of serviced apartments in the industry? Enter the Aparthotel, a model which allows serviced apartment providers the opportunity to address changes that the new tribe of travellers have brought to the industry. While the idea of Aparthotels has been around for several years, brands have been slow to fully develop. However, as this travel paradigm matures, providers are responding by pouring more resources into their expansion.

One example is Mode Aparthotel by BridgeStreet which retrofits existing buildings to ensure the authenticity of the destination, creating a hospitality solution like no other. With every detail meticulously chosen,,

from linens to scent, Mode will offer an unparalleled bespoke experience to guests. A connection to the local community is also a vital component of this new development.

“These travellers are social, crave experiences, and meticulously research the perfect accommodations,” said Sean Worker, CEO of BridgeStreet. “With this new data, we are directly responding to those preferences through the development of our new Mode Aparthotels brand, creating community gathering spaces in desirable downtown environments,” he said.

KElly MuRPHy Sr. Vice President, MarketingKelly is responsible for the development and execution of global branding and marketing strategies, oversees creative development, online and offline marketing programmes, and public relations. She has played an integral part in the development and growth of the brand’s value over the years, most recently leading the development and launch of the company’s family of brands, designed to meet the demand for product clarification and price point differentiation in the serviced apartment industry. Kelly joined BridgeStreet in 2001 and has held positions of increasing responsibility and scope in the areas of brand development, creative design, communications, event marketing, conference development, and field marketing. Previously, she held positions at Oakwood and honed her marketing skills as a product manager for a medical supply company.

These travellers are social, crave experiences, and

meticulously research

the perfect accommodations.

20


As we all know, cyber-security is rarely out of the news, and this won’t change given estimates that by 2019, an additional 4.5 million cyber-security experts will be needed worldwide*.

A study by PwC reported that in 2015, 38% more security incidents were detected than in 2014.** The recruitment industry has seen the impact of this increase in cyber security threats, with job postings in the US alone increasing 74% over the past five years, according to research conducted by the Bureau of Labor Statistics cybersecurity***.

And, understandably, companies are worried about the threat of an attack. In our own research amongst SMEs, we found that 76% of the companies are concerned about cyber-security, with 17% having experienced a cyber-attack.

Whilst HR Law might differ from country to country, the Web has no real international boundaries per se. With this in mind, this article will cover generic best practice with regard to HR policies and social media and what procedures need to be put in place to combat cyber crime and protect your business and customers, wherever you are in the world.

Our biggest observation when we discuss ‘cyber-security’ is often not ‘computer security’ but ‘people security’. Whilst companies can have the very best tech in place and invest heavily in new systems, the fact is that around a third of data security issues are people-based.

Data is scarce but, in 2014, a cyber claims study conducted in the US found that over a third (34%) of claims for data loss was down

to people security, with 11% of the dataset being rogue employees; 10% for lost or stolen laptop devices; and 13% for staff mistakes. Add to this a further 5% for improper data collection, and almost 4 out of 10 (39%) of the claims are because of the user.

Many organisations protect themselves from the usual business-critical blunders by having any potential issues covered off in the employee’s employment contract and the company’s policies and procedures. However, this is often not the case with data loss, as it is often not given the same priority as other ‘serious’ employment issues, such as inappropriate sexual or racial behaviour or financial misconduct. Organisations do need to make sure they have robust policies covering cyber/data security, data protection and IT and communications - policies which are communicated to employees who are made fully familiar with

the rules and processes they are required to follow. Failure to ensure that data security is protected can put individuals at risk, cause them harm and distress, and result in a loss of reputation and prosperity to organisations. In the UK, the Information Commissioner has the right to levy fines of up to £500,000 for a serious breach of the data protection principles. The corporate fallout and financial implications can often be much more severe and broader in nature when cyber or data issues are involved. As the data controller, the organisation is responsible for making sure the confidentiality of the data they process is preserved.

A business should also ensure that it has a social media policy in place which receives equal prominence within an organisation to other HR policies. Companies should put the social media policy in place, to provide employees with enforceable guidelines on:

The company’s level of tolerance for • personal use of social networking servicesDetails of what constitutes business • damaging social media which is not illegalHow the company will handle situations • where employees post inappropriate and potentially business damaging, but not unlawful, posts such as illicit photos, profanity or other potentially derogatory content How the company will monitor compliance • with the policy; andThe sanctions imposed for any breach • of the policy and the procedure through which those sanctions will be enforced.The social media policy is in addition

to having HR policies covering cyber/data security and a data protection policy that will cover the myriad of issues that a company might face, such as data handling, storage, transportation etc.

The key is that employees must understand that they are required to comply with these policies and that a breach of any of the policies is an HR issue that could ultimately lead to dismissal.

This is critical for any business, as although the legal framework is still being developed, it is clear that businesses can face public and private claims for breach of cyber-security. The security provisions in the Data Protection Act 1998 in the UK, for example, have been interpreted by the Information Commissioner’s Office (ICO) to include cyberspace and to contain a duty for cyber-security to protect personal data from cybercrime. Complying with the seventh data protection principle requires an organisation to have appropriate technological and organisational measures

Cyber-Security

In the UK, the Information

Commissioner has the right to

levy fines of up to £500,000.

Percentage of Claims by Cause of Loss (N=111)

21

Cyber-seCurity

in place to prevent personal data being lost, damaged or stolen. The ICO has heavily fined companies that have been hacked, and a failure to protect confidential information due to a lack of adequate cyber-security can also be a breach of the common law duty of care, therefore amounting to negligence.

Despite the fact that the legal framework is currently unclear, the standard that the law will apply is the consensus of opinion in the professions and industry about what constitutes good practice. For example, laptop computers holding sensitive personal data should be encrypted. Mobile telephones containing confidential data should also be passcode protected.

ISO 27001: 2013, which sets a standard for security management systems, is regularly cited by the ICO in enforcement decisions and regulatory guidance, and deals with such matters as Human Resource security.

The responsibility for monitoring and reviewing the operation of all cyber-security policies and making recommendations for change to minimise risks should lie jointly with HR and the Head of the IT Department, or someone in a similar position. In addition, according to the UK’s Data Protection Act, any data controller must take reasonable

steps to ensure the reliability of any employees who have access to personal data. Policies should be reviewed regularly to ensure that they meet legal requirements and reflect best practice in this ever changing and evolving area.

However, IT and human resources management need to be trained thoroughly on the appropriate and effective monitoring of employees, and enforcement of the various company policies, restrictions, guidelines and contract provisions relating to social media and cyber and data security. This should be done in compliance with employees’ privacy rights. This is important as employees who breach any of the policies may be subject to disciplinary action up to and including termination of employment.

*(source: BBC and Wales Online - http://www.bbc.co.uk/news/uk-wales-south-east-wales-35840428 )

** (source: PwC - http://www.pwc.com/gx/en/issues/cyber-security/information-security-survey.html

*** (source: Forbes - http://www.forbes.com/sites/stevemorgan/2016/01/02/one-million-cybersecurity-job-openings-in-2016/#1ca3749c7d27)

KAtheriNe MAxweLL Partner and Head of Employment, Moore Blatch [email protected] Maxwell is a partner and head of the Moore Blatch employment law team, based in their offices in Richmond and Southampton. She has been with the firm for 16 years and handles all aspects of employment law, acting for clients ranging from large corporations to small companies, both in the UK and internationally. Katherine is a member of the Employment Lawyer’s Association.

22


BElgiUMNew Tax on Speculative Stocks and Securities

Until recently, Belgium was one of few developed countries that had no wealth tax or general capital gains tax in its tax legislation. Only capital gains on real estate sold within a certain period after its acquisition was considered taxable, based on the Belgian income tax code.

However, recently a new capital gains tax has been introduced into the Belgian tax legislation. As of 1 January 2016, the Belgian authorities have introduced a tax levy of 33% on “speculative” capital gains realised on quoted stocks and securities.

Stocks And Securities To Which This Tax AppliesThe new levy will apply to capital gains realised on quoted stocks, but also quoted stock options, warrants and other quoted financial instruments by means of which the investor invests in underlying assets which consist of one or more quoted stocks (i.e. derivatives).

The tax will apply if such stocks and securities are sold within 6 months of purchase. In the event they have been gifted after they were acquired, capital gains realised on these stocks and securities will still be subject to the new levy, if they are sold within 6 months after they were originally acquired by the donor (or the person in the chain prior to the gift who originally acquired them for valuable consideration if the last donor was also gifted the securities).

Capital gains on profit-sharing and/or convertible bonds are however, not subject to this new tax.

More importantly, an exception has been inserted in the income tax code as a result of which capital gains realised as the result of a company equity based compensation plan (Belgian or foreign) will not be considered taxable. This is provided a taxable benefit has already been recognised on the attribution or vesting of those rights. This applies to performance shares, RSUs, stock options, tradable warrants etc.

Beneficiaries To Whom This Tax AppliesThis new “speculation tax” applies to transactions by natural persons and only in so far as the transactions are not related to their professional activity (i.e. a professional trader will not be subject to this levy with regard to transactions which he performs whilst exercising his profession of trader, as his gains will be taxed as professional income). This includes natural persons non-

resident in Belgium with regard to capital gains realised through a Belgian intermediary (banks, stock-brokers and other financial institutions in Belgium).

Taxable IncomeThe new tax will be applied to the difference between the following two terms:

The sale price received for the stocks • or securities, reduced by the amount of the tax on stock exchange dealings (if applicable) The original purchase price of the stocks • or securities, increased by the amount of the tax on stock exchange dealings paid at the time (if applicable).

The purchase price will have to be sufficiently substantiated and documented. If not, the speculation tax will be applied to the sale price in full.

To determine whether the stocks or securities sold have been held long enough, the LIFO-method (Last In – First Out) is applied per ISIN-category (ISIN stands for International Securities Identification Number) and per transaction. Within an ISIN-category, capital gains may be offset by capital losses, but the taxable income may never be less than zero.

Applicable Rate & Method Of CollectionThe rate of the new speculation tax is 33% and no additional municipal taxes will apply.

This tax will be collected in two ways:All Belgian intermediaries are obligated • to levy this tax on qualifying capital gains realised through their offices and transfer the collected tax to the Belgian authorities. The beneficiaries of these gains (both Belgian residents and non-residents) will then no longer be obligated to report this income in a Belgian income tax returnGains realised by Belgian residents and • non-residents on Belgian quoted stocks and/or securities and collected in another way than through a Belgian intermediary (and who therefore have not yet been subject to the 33% withholding) will have

to be reported in a Belgian tax return, as will gains realised by Belgian residents on non-Belgian quoted stocks and/or securities and collected in another way than through a Belgian intermediary (e.g. through a foreign stock-broker with regard to stocks and/or securities quoted on a foreign stock exchange).

BDO’s CommentIt is our opinion that the introduction of this speculation tax is not necessarily the first step towards a general capital gains tax, but that it is possible that more of these very specific gains will be subject to taxation in the future.

Executives planning to move to Belgium should review their investment portfolio to check whether they are likely to be subject to this new tax.

indiaBudget 2016The budget for fiscal year 2016-17, with an agenda to ‘Transform India’, was tabled in Parliament on 29 February. Acknowledging the role of taxpayers in nation building, the focus of the proposals was aimed at providing:

Relief to small taxpayers• Measures for moving towards pensioned • societyMeasures for promoting affordable • housingReducing litigation and providing certainty • in taxationSimplification and rationalisation of taxation. •

Some of the pertinent personal tax changes proposed are listed below. The provisions will be enacted after it receives assent from the President.

Tax RatesThe income tax rates for the individuals for fiscal year 2016-17 shall be below:

While the rates of tax have remained unchanged, the surcharge on income tax is proposed to be increased from 12% to 15% for individuals having taxable income exceeding

Global Taxation Update

InCOMe (InR) Age Of The InDIvIDuAl

Below 60 years 60 and above but below 80 years

80 years and above

up to 250,000 NIL NIL NIL

250,001 – 300,000 10% NIL NIL

300,001 – 500,000 10% 10% NIL

500,001 – 1,000,000 20% 20% 20%

23

glOBAl TAXATIOn

INR 10Mn. The Education cess and Secondary and Higher education cess shall continue to be levied @ 2% and 1% respectively.

Tax On Dividend IncomeA new provision to tax dividend income is proposed to be introduced. As per budget proposals, any dividend income in excess of INR 1Mn received from a domestic company will be taxed at the rate of 10% (gross basis) for resident individuals.

Tax Treatment Of Social Security And Pension funds/SchemesThe amendments proposed by the budget with respect to tax treatment of the Recognised Provident Fund, Superannuation Fund and National Pension Scheme are explained above.

Note – The budget proposals to tax certain portions of these elements was later withdrawn by the Finance Minister.

Deduction Of Interest On Capital Borrowed for house PropertyCurrently, when computing income from property, the deduction of interest payable on capital borrowed is restricted to INR 0.2Mn if the acquisition or construction of the property is completed within 3 years from the end of the fiscal year in which capital was borrowed. The budget has proposed to increase such time limit of 3 years to 5 years.

Deduction for Payment Of Rent The existing provisions allow a deduction in respect of rent paid by a taxpayer, not receiving house rent allowance. The deduction

allowed for rent expenditure incurred by the taxpayer is the lower of:

Payment of rent in excess of 10% of total • incomeINR 0.002Mn per month• 25% of total income for the year.•

The limit specified in b) above is proposed to be increased to INR 0.005Mn per month.

Payment Of Advance Tax The tax law mandates payment of advance tax during the fiscal year (April to March) where tax payable by a taxpayer exceeds INR 0.010Mn. The amendments proposed by the budget in terms of due dates of payment of advance tax and amount payable are tabulated below.

Tax Return Long term capital gains arising from the •

TyPe Of funD/SCheMe nATuRe eXISTIng PROvISIOnS PROPOSeD PROvISIOnS

Recognised Provident fund

ContributionEmployer contribution in excess of 12% of salary treated as taxable perquisite

Employer contribution computed at least of below, treated as taxable perquisite:• In excess of 12% of salary;• INR 0.15Mn (Refer Note)

Withdrawal Not taxable subject to certain conditions Refer to Note below

Approved Superannuation fund

ContributionEmployer contribution in excess of INR 0.10Mn treated as taxable perquisite

Employer contribution in excess of INR 0.15 Mn (Refer Note) treated as taxable perquisite

Withdrawal Not taxable in certain situations Refer Note

national Pension Scheme Withdrawal Fully taxable

• Exemption for 40% of amount payable to taxpayer at the time of closure of his account or opting out of the scheme • Amount received by nominee on death of taxpayer is exempt

eXISTIng PROvISIOnS PROPOSeD PROvISIOnS

due date amount payable (% of such advance tax) due date amount payable (% of such advance tax)

September 15 30 June 15 15

December 15 60 September 15 45

March 15 100 December 15 75

March 15 100

ReTuRn TyPe eXISTIng PROvISIOnS PROPOSeD PROvISIOnS

Due date for filing belated return

2 years from end of fiscal year or completion of assessment, whichever is earlier.

1 year from end of fiscal year or completion of assessment, whichever is earlier.

Due date for filing revised return

• For return filed within due date: 2 years from end of fiscal year or completion of assessment, whichever is earlier.• Belated return cannot be revised.

For return filed within due date or belated return: 2 years from end of fiscal year or completion of assessment, whichever is earlier.

24


transfer of equity shares on a recognised Indian stock exchange are exempt in the hands of individual taxpayers. The provisions relating to the filing of a tax return mandate filing by individuals whose income exceeds the basic exemption limit (INR 0.25Mn). The budget has proposed that income is calculated without the Capital Gains consideredThe revision of time limits with respect to • filing of late returns is as on previous page.

forms for filing Tax Returns for fiscal year 2015-2016For individual taxpayers, the due date for furnishing tax return is 31 July 2016. The prescribed forms for filing of tax returns have been notified. A key change to the tax return form is the inclusion of a new schedule “AL - Asset and Liability at the end of the year” applicable for taxpayers having total income in excess of INR 5Mn.

iRElandReal Time Credit for Foreign TaxIn cases where there may be a simultaneous deduction of Irish tax and non-refundable foreign tax at source from the same employment income, the Irish tax authorities (“Irish Revenue”) have recently issued measures to allow real-time foreign tax relief through the Irish payroll taxes (Pay As You Earn or “PAYE”) system.

In order to obtain real-time foreign tax relief there are a number of criteria which must be met:

The employee must be tax resident in • IrelandThe employee must be employed by an • Irish employer under an Irish contract of employmentThe employee must exercise some of the • duties of the employment abroad andThe employee must be subject to a • simultaneous deduction of both Irish and non-refundable foreign tax.

Where these criteria are met, Irish Revenue will, on a case-by-case basis, consider an application for granting double tax relief to employees through the PAYE system. Prior to the introduction of these measures, relief for foreign tax paid was only available after the year end.

The application for the relief must be made by the employee as opposed to the employer.

The real-time credit procedure does not apply to the Universal Social Charge (USC) on employment income. In circumstances where the Irish effective tax rate is lower than the foreign effective rate, some of the foreign tax may be available as a credit against USC payable on the income which is subject to foreign tax. However, such credit will only be granted by way of end of year review.

Revenue Procedure – Treaty Countries An estimated credit may be granted in ‘real time’ where foreign tax is paid in a country with which Ireland has a Double Taxation Agreement (DTA) in place. The foreign jurisdiction must be allocated a taxing right under the relevant DTA and the foreign tax suffered at source must be non-refundable.

It must be noted that this credit can only be estimated as the Irish effective rate of income tax will not be known until year end. As a result, Irish Revenue will prepare an estimate of the real-time foreign tax relief and this credit will be given through the PAYE system.

All credits granted in this manner will be subject to an end-of-year review when the employee files their annual tax return with Irish Revenue. Proof of the final tax liability in the foreign jurisdiction will be required as part of this review.

Revenue Procedure - non-Treaty Countries When an employee exercises some of the duties of the employment outside of Ireland in a non-DTA jurisdiction, there is no double tax credit relief.

However, unilateral relief may be granted by giving a deduction in respect of the non-refundable foreign tax. This deduction will be expressed as a tax credit through the PAYE system. The employee must provide Irish Revenue with evidence of the amount of the foreign tax deducted at source that is non-refundable.

BDO’s CommentThese changes offer significant assignment planning and cash flow opportunities for expatriate employees who meet the criteria set out above.

lUxEMBoURgPayroll reform from 2017On 29 February, 2016 the Government presented its tax reform project, which should enter into force on 1 January 2017. The main points of interest are as follows:

Abolition Of The Temporary Budget Balancing TaxThe temporary budget balancing tax introduced on 1 January 2015 and fixed at 0.5% will be abolished on 1 January 2017.

Changes To Tax CreditsThe tax credit for employees (“CIS”), currently set at €300 per year, as well as the tax credit for single parents (“CIM”) currently set at €750 per year will vary from 2017 depending on the employees’ annual income. Changes may also be made as to how the tax credits are indicated by the tax authorities on an individual’s tax card. This process may be modified to take into account these changes. The new rates are as follows:

Changes To The Tax ScaleCurrently, annual income over €100,000 is taxed at 40%, as well as an additional 7% contribution to the Employment fund for income up to €150,000 and of 9% for income above this amount.

With the 2017 tax reform, two additional tax brackets will be added to the tax table. Annual income between €150,000 and €200,000 will be taxed at 41%, and income higher than €200,000 will be taxed at 42%. The effective tax rates are therefore as follows:

valuation Of The Benefit In Kind for A Company CarThe company car benefit in kind value is currently fixed at 1.5% of the purchase price of the brand new car (options and VAT included). Going forwards the monthly amount of the benefit in kind for company cars will be determined by the engine type and the level of CO2 emissions of each vehicle. Additional information is expected, but the benefit in kind values are expected to be as follows on the next page.

BDO’s Comment There are some significant changes to personal taxation rates due to be enacted in 2017. Please ensure you are aware of your obligations.

CIS CIM

Annual income from

€936 to €11,265 €300 to €600/year

Annual income from €11,265 to

€40,000€600/year


€80,000 €600 to €0/year

Annual income from

€0 to €35,000€1,500/year


€105,000 €1,500 to €750/

year

AnnuAlInCOMe 2016 2017

€100,002 to €150,000 42.8% 42.8%

€150,000 to €200,004 43.6% 44.69%

> €200,004 45.78%

25

glOBAl TAXATIOn

Prepared by BDO LLP. For further information please contact Andrew Bailey on 0207 893 2946 or at [email protected]

UnitEd KingdoMShort-Term Business Visitors – new UK/UAE comprehensive tax treaty coming soonThe absence of a tax treaty with UAE has to date created UK tax issues for short-term business visitors to the UK who perform substantive duties whilst in the UK. In general, there is no personal taxation for employees in the UAE so it was somewhat surprising to see a comprehensive tax treaty agreed, including the standard dependent services (employee) article & conditions. The treaty is likely to apply from 6 April 2017 and will exclude from

the charge to UK tax those performing UK duties who meet all treaty conditions. The fact that there is currently no personal tax in such jurisdictions will not be a barrier to UK tax exemption.

BDO’s CommentA significant number of UK businesses have employees in the UAE and large numbers of expatriates working there have ongoing UK connections. The treaty when in force will be a welcome relief and will help to reduce or eliminate future UK tax liabilities.

CATegORIeS Of CO2 eMISSIOnS MOnThly BenefIT In KInD (% Of The vehICle PuRChASe PRICe)

2016 2017

All categories Gasoline vehicle Diesel vehicle (sole or hybrid)

Cycle according to Highway code (Bike or E-Bike)

0g/km 1.5% 0.5% 0.5% 0.5%

>0-50g/km 1.5% 0.8% 1%

>50-110g/km 1.5% 1% 1.2%

>110-150g/km 1.5% 1.3% 1.5%

>150g/km 1.5% 1.7% 1.8%


27

uber-mobility

uber-mobility is becoming a new catchphrase in the world of global mobility as technology and innovation continues to inspire change. but are apps, virtual reality and even robots the future of the industry - or just a temporary fad?

Lisa Johnson, Global Practice Leader, Consulting Services, at Crown World Mobility, has more than 18 years of experience in the field and provides the inside track on how a love of technology by modern day assignees – and a desire to be in control of their own relocation – is changing the face of global mobility programmes..

Can You Explain Exactly What Uber-Mobility Is?It is fundamentally a concept or metaphor for ultra-modern techniques being used in global mobility. The concept is based around how technology is changing, how people access information and how they make purchases. There is in an increasing trend towards people using apps and of transactions taking place in real-time.

Who Is Driving It? I would say millennials are at the core of the trend, they demand real-time data and mobile services and like to be more hands-on than assignees of the past. But there is a business aspect, too, with companies keen to provide low-cost solutions – especially for early career employees, new hires and self-initiated moves. The evidence at the moment is uber-mobility is catching on quickly with assignees of all generations.

What Are The Key Technologies Which Are Helping Define Uber-Mobility? Apps such as Uber, Airbnb and Dolly are driving the industry forward, with global mobility programmes and global mobility experts attempting to offer services which compete with those apps.

What Would You Say Are The Positives Of Uber-Mobility For Assignees?Millennial assignees have a ‘do it yourself’

mentality and see using apps to plan their move as part of the experience. They feel more in control of the process and feel the programme becomes more personalised when they have options in their grasp.

And What About The Positives For Global Corporations? It’s all about saving money and increased flexibility. But it’s also good for recruitment. It can be very hard to recruit millennials in locations outside of main cities and employers must think outside of the box and provide enticing benefits to attract millennials. Technology can be a big draw.

There Must Be Some Downsides, Though. It Can’t Be All Good?That’s fair to say. For assignees it can mean no vetted experts to talk to and no personal touch. Apps are not designed to work around people with families, are not interactive and lack the ‘human’ element. For corporations, these apps are not made by mobility companies, therefore they lack expertise. There are also debates around how far duty of care extends. Should businesses be tracking employees using GPS? Or is this infringing the privacy of employees? So there are some challenges ahead.

How Will Uber-Mobility Develop - What Technology Could Further Impact Global Mobility In Future? Could We See The Use Of Virtual Reality Technology?Virtual reality will almost definitely play a role in the future of uber-mobility in future. There is already existing technology in the gaming industry and this type of virtual reality could be used as a means of providing virtual reality tours when it comes to decision making for assignees. For example, looking at property and local amenities.

Is There Any Data Which Measures The Effectiveness Of Uber-Mobility Compared With More Traditional Methods? For Instance, Is It Lowering The Number Of 'Failed' Assignments When The Assignee Comes Home Early?No, this will need to be developed as a

result of a shift in the industry caused by technological changes. With regards to safety and security – there may be some horror stories arising out of ‘DIY’ assignments lacking professional mobility input.

Can You See A Time When The Desire Of Millennials To Do Everything Themselves Starts To Change? Could There Eventually Be A Kick-Back?Yes, this is likely to happen although it’s hard to provide a timescale. This is a cheaper way to move young people without the need for ‘hand-holding’ throughout the experience.

Paint Us A Picture Of A Global Mobility Of The Future. What Do You Think It Will Look Like? Where Else Could Technology Make An Impact In Future?In the next five years it is likely that the traditional method will become a ‘VIP’ experience and the new, cost-saving methods will become normal. A good example of this is how quickly Facebook went from being a new quirky platform to the norm, where you can find everyone including your grandma posting.

What's The Most Innovative Thing You've Ever Seen In A Global Mobility Programme?A robot on a mini Segway which can travel around the office to visit different people. You can’t get much more futuristic than that!

Uber-Mobility Is The New Catchphrase In Global Mobility - But Are The Apps

And Robots Here To Stay?

lisa JohnsonGlobal Practice Leader, Consulting Services, at Crown World Mobility, a global company which helps corporations manage global talent. She has more than 18 years of experience in the industry and has been with Crown since 2012.www.crownworldmobility.com


Benefits

29

Covering a loss of income due to disability or death is a major problem, and it’s one that looks set to grow. What are the causes? And what part can employers play in finding solutions?

In 2015, Zurich and the Smith School of Enterprise and Environment at Oxford University began a study of the income protection gap. The goal of the study was to raise awareness of this pressing global issue and its causes and consequences – and, ultimately, to create sustainable recommendations to close the gap.

Let’s start with the study’s definition of the income protection gap (IPG):

“The reduction in household income as a consequence of the death or incapacitation of an adult wage earner on whom the household relies, taking all public and private sources of replacement income into account.”

Why is this of interest to employers? Here are three reasons why the IPG should be on your radar:

You have a duty of care to your • employeesThe level of care and support available • around the world varies greatly. While many expats will have life, disability, and income protection cover provided for them, there is an increasing trend to localize these benefits – which can lead to highly variable levels of cover depending on where the employee is working. And obtaining public assistance for internationally mobile employees can be highly problematicThere is a trend towards presenteeism, • where employees work through minor disabilities at reduced capacity. According to 2015 research by The Work Foundation, sickness presence is more prevalent than absence – 45% of employers reported one or more days’ presence, compared with 18% absence. Contributing factors to presenteeism include personal financial difficulty, work-related stress and pressure from managers or colleagues. This trend is expected to cost US businesses more than USD 150 billion a year.

A Growing ProblemHaving seen why the IPG is relevant to employers, let’s take a look at what’s causing the problem to grow.

Huge improvements in medicine and agricultural practices and vastly lower death

rates through war and famine have resulted in unprecedented population growth. Longevity has increased in the majority of regions, placing social welfare systems under strain as the balance between workers and retirees shifts. Against this backdrop, IGPs are on the increase, placing pressure on governments and making employees increasingly vulnerable.

There is also a greater trend towards short-term and part-time jobs, which do not provide any protection for income during illness – most work-related covers only extend to full-time employees.

According to the International Labour Organisation, 73% of the global population lives without adequate social protection coverage.

A Variety Of ApproachesSo how is income protected? There are generally four ways:

State-sponsored social security• Collective insurance (typically employer • sponsored)Workers’ compensation schemes• Voluntary savings.•

Social security systems vary greatly around the world. Most European, Latin American and English-speaking Organisation for Economic Co-operation and Development (OECD) countries, provide state cover against death and disability that are earnings related and means tested. In South East Asia there is compulsory payment to provident funds.

Most countries offer tax incentives for savings to supplement state benefits, which is particularly important in countries like India and Mexico where state support is low. In fact, the amount countries spend on public social protection varies widely around the world, as shown by the graph.

The Global Challenge Of The Growing Income Protection Gap

30


Supporting The Globally MobileInternationally mobile workers – and consequently their employers – face additional challenges around both income support and pension provision. With the general exception of English-speaking nations, income protection for disabled people and bereaved families is commonly dependent on minimum payments to national and/or private pension systems, with benefits reflecting previous contributions.

Underpayment to social schemes and problems with pension transferability threaten to leave many international workers in complicated and vulnerable situations. In fact, expats are not eligible for benefits at all in some countries.

A Global Issue With Regional DifferencesWhile the IPG is a global issue, it is raising different challenges in different parts of the world. As an example, let’s contrast Europe and Latin America.

Europe has traditionally had a high demand for income protection, and this has largely been met by state and employer schemes. However, Europe has the highest average ages in the world, and this is translating into high disability rates, particularly in Eastern Europe, and placing pressure on welfare systems. The financial and Euro crises have reduced tax revenues, and rising demand for income protection is outweighing supply.

Latin America is newer to income protection with a comparatively younger demographic, and demand for cover is outpacing supply. The region has a high proportion of informal workers who receive no state cover. In addition, state schemes focus on supporting the very poor, with the consequence that middle-income earners are not protected.

Addressing The ChallengesAs well as seeking to highlight the increasing problem of the income protection gap, the SSEE report looks for ways to address it.

It concludes that a combination of government, employer and individual responsibility will be required to close the gap and proposes five areas to focus on:

increase global dialogue,• using platforms such as the World Economic Forum to discuss IPGs and connected issues like ageing demographics and the private households’ savings gapsolutions must be tailored to regions • and countries, because as we have seen, the challenges raised by IPGs vary widely around the world and there is no ‘one size fits all’ solutionUse tax incentives to encourage people • to protect incomesWorking together to raise awareness,• as this would increase demand for workplace and individual solutions

Benefits

31

steWArt AllAnsonZurich Corporate Life & Pensions is a leading provider of international group risk and savings solutions. For more information, please email:[email protected] ortelephone on +44 (0) 1242 664443.

encourage flexibility in labour markets • and welfare systems, to allow people to work for longer.

Employers clearly have an opportunity to play a central role by providing income protection cover for their employees. The report suggests two important additional points for employers to consider:

Protecting income to retain and attract • talent, as disability and death cover are both important to employees and demonstrate social value. Additionally, the schemes offered by employers can raise public awareness of new possibilities. This is particularly true for multinational companies that use portable employee benefits schemes to protect their globally mobile employees, and in doing so export their approach to income protection across international bordersPreventing disability,• as an ageing workforce brings with it increased disability rates. As well as ensuring adequate income protection if an employee becomes disabled, companies should consider how they could modify work practices to prevent disability and accommodate older and disabled workers. It’s also interesting to note that one study* found that the costs associated with lost productivity due to impaired capacity to work are higher than the medical costs of treatment. In addition, general well-being initiatives can

help to reduce risks to employees’ physical and mental health.

If you’d like to explore this topic in more detail, you can download the report and find a variety of articles and videos at:www.zurich.com/en/knowledge/topics/protection-gap

References* http://www.ncbi.nlm.nih.gov/pubmed/15076658

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32


Tracy Figliola, Director of Global Mobility at Equinix, and in partnership with Mobility Compliance Limited, tells you why risk is a good thing.

Business risk only comes in two flavours, good and bad, and trust me the only one you want to taste is good risk. Good risk is about taking on the global market place, seeing new opportunity, backing your hunches and doing things differently. You have to embrace good risk as it’s the only way to success; for as Shakespeare pointed out “There is a tide in the affairs of men, which, taken at the flood, leads on to fortune…and we must take the current when it serves, or lose our ventures”.

This is particularly true in my area of operation, Global Mobility. Shipping teams around the world to open and defend new markets is, by definition, at the exciting and profitable end of good business risk.

Bad business risk is an entirely different and less palatable mouthful. It’s made a more bitter pill because, more often than not, it is caused by internal omission, and is something you could have avoided. For example, to stretch Shakespeare’s time and tide analogy, sailing the Atlantic to discover America is a good risk, whereas the omission of not checking your boat is seaworthy before setting sail exposes you to bad risk. But as bad risk is not always as obvious as a leaky boat, it’s not easy to avoid.

The first thing that can expose you to bad risk is the complexity of the world you’re dealing with. All you have to do is look at the smart phone many of you are reading this article on, to understand the recent exponential increase in the volume data we all create everyday, and the instant speed we expect our business world to run.

This potential data overload is compounded in global mobility where the complexity of data is increased by individual countries differing and ever changing regulations around immigration, tax, data compliance and social security. Add into this that you are dealing with real people and, often, their families and the variables increase once again. And this is the heart of the problem, because complex data is the perfect hiding place for complex risk to lurk unseen until it is too late.

This complexity creates a confused global data trail is at best disruptive, leading to a loss of financial control, with the commensurate problems of increased costs, workload and audit complexity.

At worst, errors around global mobility can lead to compliance penalties for late or incorrect filing of data. At a personal level, badly handled Global Mobility data can disrupt talent management. Broken or unhelpful processes can result in assignees becoming disenchanted, enough to leave the company, which is ironic as they are the very people you need and are trying to support; and there’s no one size fits all solution.

Taking The Bad Risk Out Of Global MobilityThe efficiency, visibility and instant compliance demanded by governments and shareholders around global mobility depends on four things:

A clear understanding of the extremely • complex disciplines of multi location, multi country, multi currency data collection and collation Developing efficient, measurable systems • to approve and purpose the collected data to make accurate and timely payments, globally and in diverse currencies and for redistribution to meet the array of compliance demandsAnd the ability to instantly and accurately • report at local, national and global levels and to segment and distribute the data according to specific tax or internal requirementsMaking sure global mobility is not an • afterthought but is fully aligned with your global business strategy and has full stakeholder engagement from the get go.

And the way we look to deliver the solution breaks down into a five-step programme.

Where Are We Now?There’s no point in building castles on sand, so the first thing we need to do is to ensure any current systems you have in place are robust and fit for purpose. As with any planning process, to create a solid foundation for sustainable growth, it is critical to have a clear understanding of the starting point.

The best way to do this is to carry out a diagnostic health check to determine the integrity of your current processes and the efficiency of your data flow.

There are often key indicators of problems. For example, a significant discrepancy between the balance sheet and actual expenditure may indicate inaccurately reported tax liabilities.

It’s also a good idea to forensically follow the data trail from collection to final reporting to expose breakdowns, and their relative seriousness. Though this can be an extended process, you only have to do it once, and it is essential if you are to build on solid foundations.

This diagnostic process will give you a clear SWOT analysis of your systems as they stand and should highlight areas that need immediate, short-term and long-term attention.

The Right Tools For The JobOnce you know where the problems are in your current processes, you can then overlay the map of where you want to be and start to create the tools to do the job properly. This is a case of refining current and creating new tools so they exactly fit your need. The tools you’ll be looking at include;

Data collection including interface design • enhanced user experience to increase quality of starting dataContinuous and ongoing data tracking and • validation Payment, disbursement and reconciliation • Internal and external reporting, both • planned, for tax and ad hoc Assisting the engagement of service • providers through the procurement processPolicies that match business needs.•

Effective ReportingNo matter how good the integrity of your data, it is useless unless it can be dissected for effective reporting when, where and how you need it.

What you need is an analysis suite that will effectively deliver the main and standard reporting requirements such as funding and reconciliation, payroll and tax data.

But don’t stop there. You should also have the facility to custom interrogate your data to provide feeds in formats acceptable to your accounting systems, MIS and other analytical tools. You should be able to analyse each global assignment for profitability case by case.

Effective Implementation – Will Anybody Use It? Obviously it’s no good building the perfect system if it doesn’t get used. It’s essential for you to get buy in from your key stakeholders and work with everyone involved in the chain to ensure smooth transition and implementation including:

Love It Or Hate It – Risk Is Here To Stay

33

risk

Your mobility team to create effective • policy management Finance to put in place central, continental • and local reporting All involved to implement effective control • structures Procurement to design RFP’s designed to • find suppliers who exactly meet your needs Your HR colleagues around designing policies• Last but not least you need the board, well, • on board; if they’re not committed then your efforts will wither on the vine.

The Only Constant Is ChangeIf there is one thing you can be sure of in life and business it’s that the goal posts are always moving. If it’s not better (or at least different) software then it’s a change of legislation, or your company deciding to be represented in an emerging market.

The only way to keep your process up to date and your key stakeholders on side is to schedule regular review meetings, supported by a programme of mentoring and continuous development.

A Final Thought - Learn To Love Risk So there you have it, you can manage global mobility risk in a way that allows you to make the most of good, entrepreneurial risk.

In fact, even thinking about managing bad risk is going to help you design more robust systems, so maybe bad risk is good for your business after all – just a thought.

TraCy FiGLioLaDirector of Global Mobility for Equinix, responsible for building and delivering a Global Mobility programme for a fast growing technology company. Tracy has over a decade of experience in Global Mobility. Previously Tracy was the Head of Global Mobility for HSBC, servicing up to 2000 assignees across 65 countries. Mobility Compliance Limited provides data and finance solutions for Global Mobility.

Business risk only comes in two

flavours, good and bad, and

trust me the only one you want to taste is good risk.

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We are extremely privileged to hear the challenges faced by hundreds of multi-national organisations every year but we can safely confirm that the one recurrent challenge we hear is how GM managers are stretched and have very little time to network and build robust relationships with their peers and external service providers.

There are many ways the Global Mobility manager can start to build their network. The most significant way is to form solid working relationships with internal stakeholders and colleagues including HRBPs, Talent, Reward, Finance, Travel, Recruitment and Line Managers, but for many they are missing a trick. Peers managing Global Mobility programmes in other organisations face similar challenges and are usually more than willing to share their knowledge and experiences collaboratively. Service providers too are investing in expert Global Mobility training with us so they can empathise and help create effective solutions.

So the next time the phone rings consider that the person on the other end of the line may have some valuable insights which could help you. We are positively extoling the virtues of knowledge sharing and encouraging everyone to look at ways to share know-how and expertise. Of course they may possibly need your help this time but there is no doubt that your generosity will be reciprocated in the future.

In the spirit of building bridges and sharing knowledge amongst the Global Mobility industry we publish a quarterly wrap up of the hot topics discussed at our events called out “Nutshells” (available online on the Expat Academy Dashboard).

Highlights from our latest Nutshell are shared below:Changing patterns of international assignments are leading to increased complexity. Global Mobility professionals must balance caring for and supporting assignees and their families with the increased challenges of:

Increased compliance• New policies• New locations• Pressure to reduce costs.•

Low Cost, High ValueWhilst many companies are reducing the overall cost of an assignment (by reducing assignee numbers or reducing some of the

core components of the traditional long-term policy such as settling in allowances), some are actually increasing the level of intercultural and language training on the basis that these components are as a percentage, low of the overall cost, but are seen as high

value to the assignee and business.

Low Cost Duty of Care OptionsMandatory pre-assignment medicals • for assignees (and families) or at least a requirement to complete a pre-assignment medical questionnaireThe provision of an expatriate EAP (employee • assistance programme) throughout the length of the assignment which can cost from just £9 for a family for a year.

Local Plus/Permanent TransfersThe shift to more local plus and permanent transfers and the risks associated with these populations e.g. underpayment to social schemes and problems with pension transferability, threaten to leave many international workers in more complicated and vulnerable situations. This is an area of risk for many organisations.

Regular communication The importance of regular communication with the assignee population. Having some knowledge about the assignee’s personal situation will ensure that appropriate support and assistance can be given at the time of the move and during the assignment.

There is no doubt that giving assignees that extra level of care will result in them having a more positive experience and settling in more quickly.

South AfricaThe ICT process for this location now • requires employees to have a skills transfer plan showing how they will transfer skills to a South African nationalThe long-term multiple entry visa will ease • business travel to South AfricaTravelling with children can still be a • challenge:

Visa Exempt nationals – just need a • letter and passportsFrom China you need all documents • including birth certificatesThere is a still a problem if you have a spouse • on a tourist visa travelling with children.

ChinaAll companies are required to de-register work permits even if the employee has been terminated or the work permit has expired. If you do not retain paper copies of paperwork, HR are required to go in person to de-register individuals. There is no fee to de-register individuals but there may be a penalty if you don’t and it might affect future applications.

ArgentinaNon married partners are now recognised as dependents, including same sex couples.

EUThe Shengen database is now being used actively to track where people are. Any step into a Shengen state counts as a full day there. Finland and Norway in particular are looking at this closely.

SecurityMany countries are taking longer than normal to process arrivals through security. Advise your assignees to be patient and expect long queues in Germany, Sweden, Italy and Spain (particularly Barcelona).

STBVsDon’t forget the weekends! Top tip to ask your STBVs “Do you need to spend any more time in the UK aside from the days you will be working?” All the days in the UK count in your reporting.

ExceptionsIf you are being pressurised to make exceptions to your Global Mobility policies

“Build A Bridge And Get Over It...”

We are positively extoling the

virtues of knowledge

sharing and encouraging

everyone to look at ways to share know-how and

expertise.

GLOBAL MOBILITY UPDATE

35

EMMA HOLDEr is a Director at Expat Academy Ltd and has spent 19 years working in Global Mobility. Emma started her career in international tax at Arthur Andersen, moved into International HR with PwC and then moved in-house to work for Goldman Sachs and Diageo plc. Emma has overall responsibility for technical training at Expat Academy. She facilitates many cross industry Global Mobility forums and is at the cutting edge of the latest trends and news in the Global Mobility Industry. [email protected], www.expat-academy.com

for “special people”, ask the following question to your business “What’s stopping you using reward strategy to incentivise this person?”

Conclusion The highlights shared above are merely a flavour of what we discussed in the first quarter of 2016. The area of Global Mobility is so complicated now it is virtually impossible to stay abreast of all new developments. Investing time in your peer network and technical experts is by far the best way to effectively keep up to date with the latest hot topics. Trusted colleagues from inside and outside your organisation may well have the answer to your question or be able to point you in the right direction. What’s more it is enjoyable meeting new people, masterminding new creative solutions and showcasing your own knowledge too. Reading summaries of events you have missed is useful but really cannot ever replace the rapport you build face to face. Even more so for the young professionals joining our industry who have grown up on text and e-mail communication. Chatting with professionals of all ages and contributing to group problem solving boosts confidence and provides a safe environment to build communication skills.

Time spent with others is not a waste, it is an investment. Build your bridges far and wide.

The area of Global Mobility is so complicated

now it is virtually impossible to stay abreast of all new

developments. Investing time in your peer network

and technical experts is by far the best way to

effectively keep up to date with the latest hot topics.

This brand new website, where you can also view The 2016 Expatriate’s Guide to Living in the UK online, supports expatriates who have moved to the UK from

anywhere in the world, by providing key information about living in the UK.Living and working in the UK can provide a fantastic opportunity to any individual expatriate and their family. The UK offers a diverse range of cultures and if you have relocated for business, family or lifestyle reasons, this website will prove to

be an invaluable resource.The site currently contains over ten Useful Advice pages covering:

Banking & Wealth • Expatriate Clubs • Embassies & High CommissionsDriving & Transport • Education - Schools & Universities

Healthcare & Hospitals • Immigration & Residency • Legal IssuesMoving & Relocation • Residential Lettings

Serviced Apartments • Taxation

These pages contain detailed information on these subjects, with valuable advice, information and links to our partners.

PLEASE SHARE THIS WEBSITE WITH ANY FRIENDS, FAMILY OR COLLEAGUES WHO ARE RELOCATING TO THE UK!

VISIT WWW.EXPATSGUIDETOTHEUK.COM TODAY!

New Website To Support Expatriate’s Moving To, Or Living In The UK

WWW.ExpATSGUIdETOThEUK.COM

13th Annual EditionThe 2016 Expatriate's Guide to Living in the UK

A product of Supporting International HR Professionals Worldwide

www.expatsguidetotheuk.com

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Anyone who has gone to a Relocation or Business Travel conference recently will have seen a session on managing your short-term assignees or business travellers for the compliance risks they generate.

Depending on who is running the conference, the session will likely have a certain leaning. If it is a Relocation conference, there will be a Taxation or an Immigration focus. If it is run by the Travel industry the session will likely focus on Duty of Care with an emphasis on software for tracking mobile employees.

The 3 risks – Emergencies, Tax and ImmigrationThe Travel Industry has provided competent tools for such tracking. Travel Industry bodies report approximately 40% of companies have a managed travel programme with an associated emergency location product.

In many cases these products are expensive and come bundled with larger product offerings. However, there are associated risks of Tax and Immigration compliance, as well as Duty of Care. As much as 50% of companies are not tracking their mobile employees to avoid this triple-risk combination (Source – EY – Frequent Business Traveller Report 2012, p18).

Emergency location is thankfully used infrequently and most companies will hope never to have to use the service. The reality though is that every single time a business traveller or relocating assignee crosses borders they create a potential Tax and Immigration Compliance risk.

In many companies there is often multiple departments managing these risks. The travel team will manage the Duty of Care element and HR or legal teams will manage Tax and Immigration risks. This split in focus helps to fuel confusion in organisations as to who actually owns the operational risks of managing business travellers. The data necessary to manage the risk is often distributed across multiple systems.

ComplexitiesThe problem could be getting even more complex.

A few years ago the senior executives of several American multinationals appeared before the UK Parliament Public Accounts

Committee who were enquiring into the low levels of Corporation Tax paid on the seemingly large commercial activities in the UK jurisdiction. The Executives were able, however, to communicate that all their accounting practices were completely legal.

The unintended consequences of those sessions were the commencement of a project by the G20 group of nations to formalise the global rules on taxing global corporates. A new political will was formed to chase tax revenues from global corporates.

The Organisation for Economic Co-operation and Development (OECD) was tasked with the project and recently put forward 15 principles to the G20 Group of countries laying out guidelines for national governments to transpose into law.

The Base Erosion and Profit Shifting (BEPS) guidelines are effectively a consequence of the legal mechanisms used by global multinationals to shift profits from markets with high corporation taxes to those with lower tax rates.

One of the key recommendations is to

reduce the levels by which a company creates a ‘Permanent Establishment’ (PE). This means the legal obligation to register and pay corporation and other taxes in the new or visited market.

In the past Business Travellers only created a potential personal income tax liability – now they could trigger a corporation tax liability. This will certainly attract the attention of the C-Suite.

In the UK, HM Revenue & Customs, decided to ‘dust off’ some other rules that had existed for some time but were not being enforced rigidly. One of these is in the area of Short-Term Business Visitors (STBVs). Companies are seeing additional focus on tracking and reporting the activities of business visitors to their UK-based businesses.

Many companies didn’t realise that they needed an STBV Arrangement with HMRC in order to be able to record any potential tax liabilities that may arise. Many companies were trundling along under the misapprehension that 183 days was the only threshold that they need to keep track off to ward off any taxable events.

The reality is different. UK rules require companies to monitor the number of days a business traveller spends in the country and imposes several administrative events at critical thresholds at 30, 60, 90, 120 and 150 days when Double Taxation Treaties apply. Where no treaty applies there is a withholding requirement from day 1. Each threshold requires an increasing burden of reporting and paperwork. Failure to comply could result in Tax penalties. Most other jurisdictions have very similar reporting thresholds.

In parallel there is also a greater focus on matching the Immigration status of a business traveller or short-term assignee with the purpose for entering the country. In the past many business travellers pushed the limits of short-term visas to complete transactions. Now greater information sharing amongst authorities will increase the requirements for Corporates to manage compliance. Understanding the purpose or project a business traveller is working on will become a key focus of BEPS compliance.

SolutionsSome solutions exist in the market but often only address one vested interest. Big 4 Tax Consultancies offer trackers usually are bundled with their full Tax Advisory services – a far more strategic purchase than a stand-alone Tax Tracker.

Do You Need Help Managing Your Short-Term Business Visitors (STBVs)?

In the past Business travellers

only created a potential personal

income tax liability - now

they could trigger a corporation tax

liability. This will certainly attract the attention of

the C-Suite.

PRoducTs & seRvices

37

Risk Management, Insurance or Travel companies provide Duty of Care Trackers but again often bundled with extra products or services. Immigration trackers are few in number and tend to operate in isolation to other tracking elements.

What if you could combine these three critical factors in a single smartphone app?

Going-there Global Destination Services has developed an App that tracks business travellers and assignees for Taxation, Immigration and Emergency location – all in one place and for a reasonable cost. Days spent in each location are counted and upcoming Tax or Immigration thresholds are notified to the traveller and to the managing HR or Travel team so action can be taken immediately to prevent potential tax or Immigration penalties.

The Tracker was recently voted best Technological Innovation in Relocation at the ReLocate Magazine awards.

The Smartphone AdvantageThere is usually one constant in any business travel event - the traveller and their phone/device. Gathering data from travel tickets, expense submissions or security pass data all give information that is ‘after the event’. Most Travel Managers will admit there is often significant leakage from corporate travel policies so data may be missing. In Europe many business travel events across borders are carried

out in trains in personal or company cars – data that will never be in a Travel system.

If the actions of business travellers could now contribute to an unbudgeted corporation tax liability - with a consequential effect on profits – there will likely be a mandate from the C-Suite and the behavioural changes needed will likely flow.

LiAm BRennAn Vice President of Client Relations at Going-there Global Destination Services.Email: [email protected]

So if you want to be ahead of the curve in

managing your Short-Term

Business Visitors start tracking

your travellers.

Corporate Global Mobility teams are the ones whose desks these issues will flow to with directives from above to “find a solution.”

Monitoring and counting days spent in each jurisdiction will put HR teams in a pro-active rather than reactive mode with their internal clients. It will give them the ability to advise the lines of business about upcoming Taxable or Immigration events rather than the current situation whereby they are firefighting to resolve issues after the event when penalties and interest costs may accrue.

So if you want to be ahead of the curve in managing your Short-Term Business Visitors start tracking your travellers.

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JULYFEM Global Mobility Conference - Melbourne20 July 2016Crown Entertainment Complex, SouthbankMelbourne, AustraliaDon’t miss the opportunity to attend the FEM Global Mobility Conference in Melbourne and hear from leading global mobility professionals from across Australia. Join us to share best practice and network with your peers while coming away with valuable insights and ideas for your own programme. Find out more information at www.melbourne.forum-expat-management.com

SEPTEMBERFEM Summit & EMMAs - APAC7-8 September 2016Orchard Hotel, SingaporeThe FEM APAC Summit & EMMAs returns once again to Singapore and it’s a must-attend 2 day event for forward-thinking global mobility and HR professionals working within the APAC region. Join your industry colleagues to discuss success from the last year and debate the future of mobility in Asia. Find out more information at www.forum-expat-management.com/events/conferences-summits European Employment Law, HR and Business CultureImmerse yourself in European Employment Law at JSB’s residential course11-14 September 2016Oxford, UK10% discount for readers of International HR AdviserGreat opportunity to access reliable, ‘easy-to-digest’ employment law knowledge, Covers EU, French, Spanish, Belgian, Dutch, German and UK employment law, 3-day intensive residential course in one of Oxford University’s Colleges, Ideal for Global HR professionals from all sectors, in the UK, Europe and beyond. Superb location for learning, networking and mixing with legal experts. Full social programme, accommodation and meals organised by our friendly team. Delivered by JSB’s International Employment Law Faculty, the leading provider of international legal expertise to the HR profession in the UK for over 20 years.Full details at jsbonline.com/euro, quote ref IHRA-10 for a 10% discount.

The Driving Change Conference20 September 2016One America Square, London, UK'What’s in it for me?' How do you breakdown employee barriers to drive sustainable, long-term cultural, behavioural and organisational change? 27 HR Directors including; Müller, Barclays, adidas, Mars, Tesco Bank, TUI, General Mills, Jaguar Land Rover and GSK will reveal how they are engaging leaders, harnessing new technologies and overcoming change resistance to boost long-term employee performance. Discover how they are aligning change processes with business goals to drive sustained cultural, behavioural and organisational change in one-compact day at The Driving Change Conference.View the brand-led agenda here:

w w w. d r i v i n g c h a n g e co n fe re n ce . co m /programme/brochure. Register your place at www.drivingchangeconference.com and quote ‘International HR Adviser’ to receive a £150 discount or call the bookings team on +44 (0)20 3479 for more information.

Worldwide ERC® Free Webinar: What’s New in Global Relocation: A Look at Trends, Challenges and Solutions 21 September 2016, 11:00 ETSponsored by CartusCartus experts will share the results of the company’s seventh “Trends in Global Relocation: Policy & Practices” report, and provide examples of how some companies are responding to the ever-evolving changes in markets, relocation pressures, and company demands. Learn: Where companies are sending their relocating employees – and how the trends have changed What’s driving the need for flexibility – and how companies are responding.What are the hot new topics and challenges for relocation programmes and managersRegister at www.WorldwideERC.org/Webinars

5th Annual HR Minds Forum 29-30 September 2016 Novotel Berlin Mitte Hotel, Berlin, GermanyIn a global marketplace in which human capital is a crucial asset for success, HR plays a central role to assure organisations attract, retain and develop first-class talent. Despite today’s agile environment, enterprises have begun to use technology far and wide including HRM. Get inspired by HR’s forward-thinking leaders through their thought-provoking case studies and the latest practical insights that are guaranteed to inspire growth. HR Minds is a symposium of revolutionary HR professionals who are devoted to create thriving HR strategies.The aim of the event is to deliver interactive debates and share experiences with abundant chances to engage with speakers, network with peers and build relationships that will cultivate strategic discussions long after the forum. Find out the latest HR trends and developments to help lead your organisation at the right direction. Contact: László Árvai, Director Email: [email protected] number: +361 848 0531

OCTOBERWorldwide ERC® Global Workforce Symposium5-7 October 2016Marriott Wardman Park Hotel, Washington, D.C., USAThe leaders in global workforce mobility will be networking, strategising and sharing ideas for thriving in the global marketplace. Experience new heights in workforce mobility by attending the largest gathering of global mobility professionals in the United States. Boost your personal and professional development with additional options, including the Strategic Talent MobilitySM training on 4 October, or a classroom-style session of Module 3 of the Global Mobility Specialist (GMS)® training programme on 5 October.Learn more and be notified when registration opens at www.WorldwideERC.org/Events

Understanding your Corporate Liability for Securing the Safety of Travelling Employees and Expats Overseas26-27 October 2016New York, NY, USAEnsuring the safety of your expatriate workforce and travelling employees involves both workplace and domestic management. The traditional HR and corporate security functions extend far beyond the workplace in order to identify and analyse the foreseeable risks which an expat assignee or business traveller may be exposed to while on assignment. Without a robust crisis management plan in place, the impact of such incidents can be exacerbated and if duty of care is not robustly demonstrated by employer or institution, then the repercussions can be colossal, resulting in law suits and loss of reputation. Yet workplace health and safety laws offer little guidance on the practical steps employers should take to protect staff travelling and living abroad so what should employers do to limit and contain their liability?For more information, a copy of the programme and details of how to register visit www.contego-events.com/presentation/understanding-your-corporate-liability-for-securing-the-safety-of-expats-overseas, email [email protected] or call Carolyn Fuller on (+44) 797 4406673 for more information and help with your registration.

NOVEMBERFEM Summit & EMMAs - EMEA10-11 November 2016Intercontinental O2, London, UKYou will not want to miss your annual opportunity to learn, share and network at the FEM EMEA Summit in London this year! Combined with the EMMAs, these two unique events bring together over the course of two days leading global mobility professional across Europe, the Middle East and Africa to share best practice and network in the evolving landscape of global mobility. Find out more information at www.forum-expat-management.com/events/conferences-summits

Annual EMEA HR Summit17 –18 Nov 2016Bentley Hotel, London, UKAimed at global HR leaders, the Europe, Middle-East and Africa HR Summit will cover hot topics; Talent & Capability Development, Performance & Rewards, Talent Mobility in EMEA, HR Transformation & Change Management and much more. The three-day conference will focus on new trends in various markets, explore some of the unconventional ways of managing a diverse workforce and recent developments in the continually evolving role of a global HR. Delegates are invited to take part in the practical and highly interactive masterclass on Talent 2025, by Gyan Nagpal. Engage in a diverse range of sessions with HR professionals from leading, global brands. Find out more and register at www.boc-uk.com/conferences/emerging-markets-hr-summit.

If you would like to advertise a conference or exhibition on

our Diary Dates and on www.internationalhradviser.com

please email [email protected]

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directory

BANKING SERVICESLLOYDS BANK INTERNATIONAL LIMITEDtelephone: From the UK, call: 0808 169 6411outside the UK, call: 033 3014 5287 Mon-Fri 8am-6pm and Sat. 9.30am-1.30pm UK time. calls may be monitored/recordedemail: [email protected]: international.lloydsbank.comRegistered Office and principal place of business: PO Box 160, 25 New Street, St. Helier, Jersey JE4 8RG. Registered in Jersey, number 4029. Regulated by the Jersey Financial Services Commission.We abide by the Jersey Code of Practice for Consumer Lending.The Isle of Man branch of Lloyds Bank International Limited is licensed by the Isle of Man Financial Supervision Commission and registered with the Insurance and Pensions Authority in respect of General Business. Business Address: PO Box 111, Peveril Buildings, Peveril Square, Douglas, Isle of Man IM99 1JJ.

NATWEST GLOBAL EMPLOYEE BANKINGeastwood House, Glebe road, chelmsford, essex, cM1 1rS, UKcontact: craig Boe, Manager, NatWest Global employee Bankingtelephone: +44 (0)1245 355628email: [email protected] Website: www.natwestglobal.comNatWest Global Employee Banking is a specialised department within NatWest who work with Company HR functions/ Relocation agencies to offer a streamlined account opening service for relocating employees. One of the main benefits of the service is that employees can apply for their account before they arrive in the UK so their account is ready when they arrive. This may also help if they want to transfer funds to their new account in preparation for relocation.

INSURANCE AND FINANCIAL SERVICESZURICH CORPORATE LIFE & PENSIONStricentre one, New Bridge Square, Swindon SN1 1HNcontact: Adele coxtelephone: +44 (0) 118 952 4253Fax: + 44 (0) 118 952 4300e-mail: [email protected]: www.zurichinternational.comZurich International Life is a global provider of life insurance, investment and protection products. Our corporate range offers flexible, portable solutions, designed to suit multinational organisations with an internationally mobile workforce. The International pension plan offers a cost effective, bundled retirement benefits solution comprising of trust services, investment funds and online administration.International group protection is designed to protect an employers’ most important asset – their employees – and offers a range of life and disability protection.With a local presence in key global business

hubs and over 20 years experience of implementing and administering plans world wide, we’ve developed our knowledge and understanding of key markets to meet the needs of our customers and business partners.

INTERNATIONAL HR CONSULTANTSDELOITTE LLPStonecutter court, 1 Stonecutter Street,London, ec4A 4trcontact: robert Hodkinson, Partnertelephone: +44 (0) 20 7007 1832Fax: +44 (0) 20 7007 1060e-mail: [email protected]: www.deloitte.co.ukWhether you are creating your first international mobility programme for employees or addressing fundamental changes to an existing programme, our International Human Resources team can help. Deloitte provides consulting support that has an appreciation for each company’s size, background and unique cultural environment, aligning your international programme goals with corporate business strategies. Our consultants have developed deep expertise in many fields based on first hand experience with many of the world’s leading organisations: international assignment policy and process design, benchmarking, service delivery modelling, improving vendor management and helping our clients become more compliant and their administration more cost-effective.

INTERNATIONAL MOVING DT MOVING LTD49 Wates Way, Mitcham,Greater London, cr4 4Hrcontact: tim daniellstelephone: +44 (0) 20 7622 4393Fax: +44 (0) 20 7720 3897email: [email protected]: www.dtmoving.comDT Moving is a world leading international moving company. Founded in 1870, we serve corporate customers all over the globe with an award-winning* move management and destination service programme. Through our London and Paris headquarters and worldwide network of global partners, we help clients achieve their workforce mobility goals. Every employee we relocate receives a dedicated DT Moving team member as a central point of coordination, support and advice to ensure every part of their relocation runs smoothly.Our goal is your complete satisfaction, and with a 97% customer rating for 2015, we offer unrivalled quality at competitive rates.*Awarded nine global relocation awards since 2010.

RELOCATIONCARTUSFrankland road, Blagrove, Swindon, SN5 8rS contact: Nigel Passingham, Vice President, Strategic Business Solutions eMeA & APActelephone: +44 1793 756065

email: [email protected]: www.cartus.comtwitter: twitter.com/cartusLinkedin: www.linkedin.com/company/cartusFor more than 60 years, Cartus has provided trusted guidance to organisations of all types and sizes that require global relocation solutions. Cartus serves more than half of the Fortune 50 and in 2015 moved employees into and out of 185 countries, providing the full spectrum of relocation services, including language and intercultural training. Cartus is part of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. To find out how our greater experience, reach, and hands-on guidance can help your company, visit www.cartus.com or read our blog www.cartus.com/en/blog/ for more information.

SANTA FE RELOCATION SERVICEScentral Way, Park royal, London, NW10 7XWcontact: Mark risingtelephone: +44 (0) 208 961 4141 Fax: +44 (0)208 965 4484email: [email protected]: www.santaferelo.comThinking Relocation? Think Santa Fe Relocation Services.Santa Fe Relocation Services provides the full range of relocation services to support businesses with international interests from diverse industry sectors. Santa Fe is conveniently located across six continents and offers holistic relocation solutions to support businesses and relocating employees. Last year, we handled 120,000 relocations globally. Our core services are Immigration, Moving, Relocation, Real Estate and Records Management. We make it easy.

RELOCATION ASSOCIATIONSASSOCIATION OF RELOCATION PROFESSIONALS (ARP)9&10 diss Business centre, dark Lane, diss, Norfolk, iP21 4Ndcontact: tad Zurlindentelephone: +44 (0)1379 651 671 Fax: +44 (0)1379 641 940email: [email protected]: www.arp-relocation.comThe ARP is the professional association for the relocation industry in the UK. The ARP’s activities include seminars throughout the year, an annual conference, the publication of an annual Directory of Members and a website, which is updated regularly.

THE EUROPEAN RELOCATION ASSOCIATION (EuRA)9&10 diss Business centre, dark Lane, diss, Norfolk, iP21 4Ndtelephone +44 (0)1379 651 671 Fax: +44(0)1379 641 940e-mail: [email protected]: www.eura-relocation.comEuRA is an industry body for Relocation Professionals in both Europe and Worldwide.EuRa have launched The EuRA Quality Seal, the world’s first accreditation programme for

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relocation providers. This pioneering initiative provides a straight forward, cost effective audit to reflect your company’s excellence in providing relocation services.

SCHOOLS INTERNATIONAL COMMUNITY SCHOOL21 Star Street, London, W2 1QBtel: +44 (0) 20 7402 0416Web: www.icschool.co.ukemail: [email protected] international day school located in 3 sites in the centre of London. We offer all three International Baccalaurate Programmes (PYP, MYP, and Diploma) to children aged 3-18yrs. ICS has a diverse community with 45 different nationalities, and boasts a strong tradition of working with students in a highly personalised tuition framework thus enabling every student to reach their maximum potential in a rigorous but supportive environment. For students needing English Language Support we offer our unique Preparation Programme that allows students to study mainstream academic subjects alongside the language tuition. We also welcome & provide outstanding support to children with Special Educational Needs. Students at ICS benefit from a wide ranging sports & activity programme during term time and also during school holidays. We have outdoor education centres at Chorleywood and Bawdsey, Suffolk and offer educational trips abroad as part of our Travel & Learn Programme.

ISL GROUP OF SCHOOLSISL SURREYold Woking road, Woking, Surrey GU22 8Hycontact: Marc cartertelephone: +44 (0)1483 750 409ISL LONDON139 Gunnersbury Avenue, London W3 8LGcontact: yoel Gordontelephone: +44 (0)20 8992 5823ISL QATARPo Box 18511, North duhail, Qatarcontact: Nivin el Aawartelephone: +974 4433 8600Website: www.islschools.orgemail: [email protected] International School of London (ISL) Group has schools in London, Surrey, and Qatar. The internationally recognised primary and secondary curricula have embedded language programmes (mother tongue, English as an Additional Language, and second language) which continue throughout the student’s stay in the school. A team of experienced and qualified teachers and administrators provides every student with the opportunity to grow and learn in an environment that respects diversity and promotes identity, understanding, and a passion for learning.

MARYMOUNT INTERNATIONAL SCHOOL LONDONGeorge road, Kingston upon thames, Kt2 7Pecontact: Mrs cheryl eyseletelephone: +44 (0)20 8949 0571email: [email protected]: www.marymountlondon.com

With an outstanding record teaching the respected International Baccalaureate for over 30 years, Marymount offers day and boarding to girls aged 11-18 who gain places at the world’s best universities.Consistently ranked within the top 5% globally, Marymount also offers the pre-IB Middle Years Programme; this stretches students without the need for incessant testing. The nurturing, supportive Catholic Community welcomes all faiths and achieves a shared purpose for girls of more than 40 nationalities.

TASIS THE AMERICAN SCHOOL IN ENGLANDcoldharbour Lane, thorpe, Surrey, tW20 8tecontact: Karen Housetelephone: +44 (0)1932 582316email: [email protected]: www.tasisengland.org TASIS England offers the International Baccalaureate Diploma, an American college preparatory curriculum, and AP courses to its diverse community of coed day (3-18) and boarding (14-18) students from 50 nations. The excellent academic programme, including ESL, is taught in small classes, allowing the individualised attention needed to encourage every student to reach their potential. Outstanding opportunities in art, drama, music, and athletics provide a balanced education. Extensive summer opportunities are also offered. Located close to London on a beautiful and historic 46-acre estate.

SERVICED APARTMENTSTHE ASSOCIATION OF SERVICED APARTMENT PROVIDERS (ASAP)Suite 3, the Business centre, innsworth tech Park, innsworth Lane, Gloucestershire GL3 1dLcontact: ASAP officetelephone: +44 (0)1452 730452email: [email protected]: www.theasap.org.uktwitter: @ASAPtheLinkedin: the Association of Serviced Apartment ProvidersASAP is in the industry association representing, promoting and improving the serviced apartment sector. Our 124 members including serviced apartment operators and agents represent in excess of 25,000 serviced apartments in the UK, Europe, USA and Canada.When booking your serviced apartment, look for our Quality Accreditation kitemark which confirms the operator is fully compliant with all the core legal, health and safety practices and means you can book with confidence.

BBFAvenue de roodebeek 78 box 9, Brusselscontact: Bernard Kerkhoftelephone: +32 (0)2 705 05 21email: [email protected]: www.bbf.betwitter: @BBFBelgium Linkedin: www.linkedin.com/company/bbf-serviced-apartments

BBF is specialised in the rental of serviced apartments since 1992.Today we are leader in the market of temporary housing with a portfolio of over 1500 apartments in Brussels. We also offer corporate housing in other cities such as Budapest.Our flexible rental packages include excellent solutions for short and long term accommodation for personal and business travellers. For long term accommodation, minimum one year, we can offer unfurnished apartments where one has the choice to install their own furniture.

TAXATION BDO LLP55 Baker Street, London, W1U 7eUcontact: Andrew Baileytelephone: 020 7893 2946Fax: 020 7893 2418e-mail: [email protected]: www.bdo.co.ukBDO LLP is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.We have a partner-led approach, which delivers the highest quality of service by using short, functional chains of communication to aid decision-making. Clients benefit from our fresh thinking, constructive challenge and practical understanding of the issues they face. Developing strong, personal relationships with our clients is at the forefront of our service approach.Tax advice is just one of our award-winning services and our expatriate team give practical and direct advice, delivering solutions which suit your needs.

GLOBAL TAX NETWORK LTDNorwich House, 14-15 North Street, Guildford, GU1 4AFcontact: richard Watts-Joyce ctAtelephone: +44(0)20 7100 2126email: [email protected]: www.GtN.uktwitter: @GtN_taxLinkedin: www.linkedin.com/company/global-tax-networkGlobal Tax Network Ltd is the UK member of Global Tax Network (GTN), an international affiliation of professional firms in over 100 countries specialising in global mobility tax consulting. We provide assistance to employers with the tax administration of international assignment programs and private client services to high net worth individuals, non-domiciles, professional sportspersons and entertainers. Our consultants include members of the Association of Taxation Technicians, Chartered Institute of Taxation, and US Enrolled Agents.

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International HR Adviser Summer 2016