2016 kpmg global mobility forum - · pdf file17-19 october 2016 eden roc miami beach resort...

17-19 October 2016Eden Roc Miami Beach Resort

2016 KPMG Global Mobility Forum

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Current events – can your program handle it?

October 2016



3© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Agenda

Introductions

Session overview and objectives

Current events workshop

Practical experience and insights

Close


Session description/objectives

Global health epidemics. Political unrest. Economic turmoil. Will you be ready when external forces affect your mobility program? Whilst many policies have emergency clauses it can be the downstream impacts of evacuation on other aspects of the expatriate’s life, (tax planning, where tomove, schooling provision etc..) that prove more challenging.

Our objectives:— Review both the assignee and program

perspectives when current events are affecting globally mobile employees

— Understand the potential downstream implications of decisions made


IntroductionsWith you today:

Marc BurrowsGlobal Head, KPMG Global Mobility Services

Alex WayneGlobal Head of MobilityRio Tinto


Three “current events” scenarios. Each event to be introduced via a CNN/BBC “breaking news” style video clip. Alex will then conduct a short practical security briefing to the group. Each table will then, with a facilitator, discuss and workshop the mobility program and downstream impact of the relevant issue with one table primed to feedback to the wider groupfor each event.

We will supply each table with pre-prepared assignee questions and required program manager response areas and markers. All tables will consider each event.

A countdown (think TV series 24) will be set for each segment and projected on screen. In addition to the dramatic effect and keeping the session on schedule, it will emphasise that some current events require quick thinking.

Current events scenario workshop


Current events scenario workshop— Health epidemic (Zika) – Outbreak of a virus at a global event (Non

evacuation scenario)— Long term political instability (Egypt/Libya/Brexit) – The

outbreak results in high profile political instability over an extended period of time (Non evacuation scenario)

— Immediate political instability (Turkey) – As an alternative the outbreak results in immediate local political instability leading to a military coup requiring an evacuation

Health epidemic

Long term political instability

Immediate political instability

Timing— Breaking news – 0.5 minute –

Breaking news clips

— Security briefing – 1 minutes – Alex

— Table workshop – 13 minutes –Led by KPMG facilitator with Marc/Alex

— Group debrief – 5.5 minutes – One group per topic


Health epidemic – the assignee questions

I’m pregnant and I’m not comfortable staying on assignment. I must be an exception to your non evacuation policy.

Is there a doctor locally that I can speak to about the risks? Is this funded by my employer?

Will you give me an allowance to buy the required supplies?

Do I need to purchase anything to comply and will these costs be expensed?

Can I get hold of the required provisions (e.g. mosquito screens, bug spray)?

What medical support will they be providing?

If no, what precautions should I take?

Who should I contact at my employer to understand their view?

How is this being reported in the news and in social media?

What is the level of risk to me and my family?


Health epidemic - program manager response Support— Discuss the outbreak with local health

officials— Understand the relevant local (and

global) internal stakeholders that need to agree the company response

— Clarify if an emergency response committee is in existence and whether it has been convened previously

— Understand if this scenario been road tested previously and the resulting output. Review whether this is still relevant

— Agree what financial, medical or supply support will be provided to assignees

— Agree and understand any exceptions criteria

Communications— Work with corporate communications on messaging and method of

communication to assignees.— If there is already an existing communication plan that addresses each

stakeholder group, then activate plan.— Agree triggers for updated communications to be issued.— Understand how communications are different to those for local

employees

Unintended Downstream Consequences— Understand the taxability of any financial or medical support provided

and agree how this will be funded— If it is the employer, calculate the additional mobility costs and clarify if

the business has factored these into cost estimates and made the relevant provisions

— Review if the response was in alignment with your internal and industry culture to understand if there is there any reputational damage to consider


Long term political instability – assignee questions

I don’t want to take up my assignment in this location anymore.

I was thinking of localizing but that seems risky now. What is my employer’s view on how this will impact the local and global business?

I was being considered for promotion. Has that been cancelled?

I’m on a host-based package, but still considered on an assignment. I can easily localize, will you support me getting permanent residency?

The devaluing currency is impacting my net pay. I need more regular adjustments to my split pay/allowances.

Who will keep me informed as the situation develops?

I have a foreign passport, will I get deported? What about my family?

I’m worried about the current climate and want to finish my assignment early.

Are we safe?


Long term political instability – program manager Security & Safety— Clarify if the safety of your employees is at risk and if any

specific groups are being targeted in light of the current environment

Communications — A more regular and long term communication strategy will

be required. Agree triggers for any updated communications

Policy— Agree the FX change required to trigger a net pay review— Clarify if any additional immigration support will be

provided and whether this will differ for different levels of seniority

Tax & Payroll — Review if there are restrictions around

currencies/payroll/data that require duties be kept in country or whether it can be outsourced elsewhere

Staffing Management— Review if host operations are at risk— Agree if any new assignments should be undertaken to the

host location— Clarify if existing assignees will be supported with

localisation options— Review if key duties performed in territory can be moved

elsewhere— Consult internally to validate who is lobbying

industry/government regarding your needs and requirements

Unintended Downstream Consequences— Clarify if talent sourcing has been impacted and whether

now more reliance on local labour— Understand if any reputational impact internally and

externally with government— Consider impact on future projects in territory— Try to understand the economic impact and what this may

mean for your budgets and delivery model


Immediate political instability– 3 hour evacuation - assignee questions

Do we need to evacuate? Is it all of us or just my family?

How do I contact my employer to understand their view?

How is this being reported in the news and in social media?

My children are at school? Are they safe?

We don’t have our passports? Can we still leave the country?

It is too dangerous to go outside, is there a security team that can help get us to the airport?

Is there an interim safe house?

What luggage/possessions can we bring?

My youngest child is 3 months old. How do we get diapers, sterilization equipment etc..?

What about the medicines that my family need?

Where are we being evacuated to?

What about my possessions that have been left behind?

When do we get to go back home?

Do we get an allowance for clothes and extra costs etc.?

How can we contact friends and family to let them know that we are safe?

What about schooling for my children?


Immediate political instability–program manager responseSecurity & Safety— Contact global and local security for guidance and/or emergency

response committee if one exists— Understand if you have an evacuation contract with a 3rd party vendor

Communications — Emergency response committee to activate emergency communication

plans — Understand how this is cascaded to assignees and their family— Consider immigration relationships in the country you are evacuating to in

order to navigate any immigration issues

Process— Consider provision of temporary accommodation for evacuees and

family— Consider provision of cash, communications ability, clothes, medicine

and infant child support. Review whether emergency counselling support is required

Staffing Management— Consult with wider business to understand

where the replacement hub should be based

— Consider impact on the local work force in the host country

— Review the impact of any evacuation on ongoing local operations

— Schedule call with HR, Talent, Recruiting and businesses on staffing

Public & Labour Relations (Diversity) — Consider the impact of any expat only

evacuation on your in-country reputation— Consider impact on any domestic unions


Immediate political instability–program manager responsePolicy— Agree if assignees continue to be paid the same— Review when your COLA payments will change if

assignees moved to another location — Understand if you need to carry on paying host

country housing costs if evacuated— Agree whether in-country security/moving will pack up

any household goods left in location. Understand whether the goods will be shipped to an interim third country location or brought to the home country

— Retain suitable accommodations for assignees and families in evacuation destination. Review country and accommodation rules for pets

— Agree if a one time lump-sum allowance or monthly evacuation allowance will be provided to help purchase required goods

Technology— Understand what hardware is required for assignees

to perform in new location and what hardware remained in the evacuated location

Tax & Payroll — Understand if any ongoing tax payments are required

whilst individuals are not back in their host location — Review if any host-based salary portion needs to be

moved to another payroll— Clarify if assignee can access the funds in the

temporary location


Immediate political instability–program manager responseTax & Payroll — Clarify if any payments made in the temporary

location can be considered as fringe benefits or as corporate business expenses

— Update each assignee residency and cost projection— Review if any payments are being processed outside

of payroll and capture if required— Understand if any monthly tax filings required during

the period of evacuation

Unintended Downstream Circumstances— Schedule call with HR, Talent, Recruiting and

businesses on staffing— Consider impact of evacuation on ongoing

commercial contracts — Consider if assignees are required in the location or

whether roles can be filled by local talent or outsourced

— If operations and assignees are continuing, consider adding hardship, danger, and other premiums

— Review whether future assignments are made unaccompanied

— Review any potential reputational damage to mobility team from how the evacuation was handled


Practical experience and insightsGroup discussionAlex Wayne to lead discussion on how to set up policies and processes to effectively deal with such events. Key themes to include:— Personal experiences

- Establishing key relationships and communication channels before such events is key so that agreed plans can be put into place quickly

- Consider wider implications i.e. increased economic turmoil may result in decreased mobility budgets and headcount reductions. Who then does the work?

CloseMarc Burrows to close and to highlight takeaways


Key takeaways— Plan for the un-planable! — Know where your people are and how to produce the most accurate headcount.— Respect the employee’s emotional response. — Remember locals are people too! Do not look at global mobility in a vacuum.— Communicate, Communicate, Communicate!!!

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

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2016 kpmg global mobility forum - · pdf file17-19 october 2016 eden roc miami beach resort...

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