September 21, 2016 11:00 a.m. ET - Worldwide ERC › media › 1254 › webinar... · ©2016 Worldwide ERC® Changing employee expectations (Gen X, Millennials) is also an issue:

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© 2016 Worldwide ERC®

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

© 2016 Worldwide ERC®

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

Presented byCindy Madden; Director, Consulting Solutions, Cartus

Daniel Gerlich; Director, Client Services, Cartus

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Today’s Presenters


Cindy MaddenDirector, Consulting SolutionsCartus

Daniel GerlichDirector, Client ServicesCartus

Today’s Discussion


• Six questions for mobility managers

o What Areas are Mobility Managers Focused on?

o Are Long-Term Assignments Still King?

o Are Flexible Approaches Costing Companies Money?

o How are Companies Managing Compliance Risk?

o Are Cost Savings Concerns Actually Decreasing?

o How Does Location Matter?

• How are companies managing their programs?

o Real life client examples & best practice tips

2016 Global Mobility Policy &

Practices Survey


• Co-sponsored by NFTC and Re:locate

• 7th benchmark survey

• 176 global respondents

• Companies represent nearly 10 million employees worldwide

Respondents By Industry Sector International Moves Annually By Respondents

What Areas are Mobility Managers

Focused on?


Are Long-Term Assignments

Still King?


81% Expect long-term assignment

activity to stay the same or increase

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

• New Business/Start-up Operations

Long-Term Assignments: Best Practices


• Take a close look at your policy

provisions...but balance cost

control and productivity

• Consider assignment purpose

when determining assignment

type

• Know your company’s culture

Are Flexible Approaches Costing

Companies Money?


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

Are Flexible Approaches Costing

Companies Money?


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

flexible options may cause exceptions and drive up costs.

• Top drivers of cost increases:

o Exceptions

o “Out of Policy Decisions”

Approach 2014 2016

Ad hoc solutions 41% 50%

Tiering 39% 40%

Core-Flex 38% 30%

Flexibility: Key Drivers


What is driving

the need for

flexible policy approaches?

Budget constraints/economic climate

Flexibility: Key Drivers


Changing employee expectations

(Gen X, Millennials)

is also an issue:

42% of respondents

(up 13 percentage points from 2014)

Millennials AND multiple

generations in the workforce

2010: 35% of assignees were over 40

Today: 53%!

Cartus 2016 Policy and Practices

Flexibility: Best Practices


• Consider different flexible policy approaches

o Core-flex, tiering, menu-driven

• Know your objectives

• Put a plan in place for measurement and

tracking

How are Companies Managing

Compliance Risk?

But…46% of global mobility managers don’t

know whether their company has incurred fines,

fees, or other issues related to non-compliance.


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

How are Companies Managing

Compliance Risk?


72% Early involvement of tax and immigration providers

56% Better tracking of assignee’s days in country

Compliance: Best Practices


• Understand the local

regulations

• Know your company’s risk

tolerance

• Educate and

communicate; address

issues up front

• Identify potential

compliance triggers early

Add image

Are Cost Savings Concerns

Actually Decreasing?


Controlling Costs:

#1 challenge past four years –

becoming “business as usual”

Increased Stayed the Same

2016 50% 42%

2014 57% 35%

2012 61% 28%

2010 78% 18%

How Companies Are Finding

Cost Savings

Why?


2014: Policy#1 cost saving measure

implemented

Access to expertise

Mobility-specific technology

Volume shift capacity

Change to strategic focus ─ shared services absorbing functions

2016: Outsourcing#1 cost saving measure

implemented

Cost Savings: Best PracticesPolicy


• Localization, local plus, and

permanent moves

• Use of newer move types

• Flexible policy approaches to

reduce exceptions

• Global lump sums

Cost Savings: Best PracticesProgram


• Robust exception management

• Use data to understand your

costs and determine the areas for

possible reduction

• Soft costs matter too, don’t just

look for hard cost savings

How Does Location Matter?A Look at Regional Differences


How Does Location Matter?


Growth Rates: Regional Differences

Slowest growth rate for

traditional assignment types

Highest growth rates for

newer assignment types

AMERICAS Short-term Commuters

EMEA Long-term Extended Business Travel

APAC Permanent Rotational

Biggest differences were in the slower growth rates of traditional

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



• Top Reason for Increase in Mobility in all

Regions:

o Overall Company Growth Strategy

• Top Change Made to Achieve Cost

Savings:

o Americas: Outsourcing (73%)

o EMEA: Reducing Benefits (86%)

o APAC: Outsourcing (50%)


Best Practices


• Reflect regional nuances as appropriate

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

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

place

• Factor in culture shock!

o Beware of surprises (UK/US)

• Consider candidate assessment when

moving assignees from region to region

• Have a succession plan in place in locations

where turnover is high


To receive a copy of Cartus’ 2016 Global

Mobility Policy & Practices Survey,

email your request to

[email protected].

mailto:[email protected]

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Thank you for attending!

Visit the Worldwide ERC® web site at

www.worldwideERC.org, or contact

Worldwide ERC® for more information on

these topics. 703.842.3400


Documents

September 21, 2016 11:00 a.m. ET - Worldwide ERC › media › 1254 › webinar... · ©2016 Worldwide ERC® Changing employee expectations (Gen X, Millennials) is also an issue: