Global Mobility:Are your best talent where you want them?

Human Capital Webinar Series25 April 2008

Lance J. Richards, GPHR, SPHRSenior Director and Global Practice Leader

Human Resources Consulting

Global Mobility:Are your best talent where you want them?

Human Capital Webinar Series25 April 2008

Lance J. Richards, GPHR, SPHRSenior Director and Global Practice Leader

Human Resources Consulting

Lance J. Richards, GPHR, SPHR

• Lance Richards is Senior Director and Global Practice Leader for Kelly’s worldwide HR Consulting practice. In this role, he is accountable for consulting service lines across Kelly’s global footprint.

• Prior, he was head of International HR for Kelly, responsible for all HR in Kelly’s 37 non-US countries, employing over 4000 people.

• Before Kelly, he was Director, Global HR for BCE Teleglobe, a $2bn broadband entity operating in 40 countries. Prior to that, he was Director, International Staffing and Country Director HR – China for Verizon. He began his international HR career with British Telecom, managing HR in Asia/Pacific.

• He has been a visiting professor at the Sasin Graduate School in Bangkok, and sits on the Talent Strategy Board for the Human Capital Institute.

Agenda

• Global workforce labour trends

• Expatriation and repatriation

• Kelly's global mobility solution.

Action being taken…

• Canada, Australia, Germany, and now the UK, have introduced a points system to encourage the immigration of skilled workers.

• South Africa now has a brain gain rather than a brain drain, recruiting from the rest of Africa and from first world economies.

• Australia is actively encouraging companies to explore offshoring of work, pushing non-skilled work out, expecting supply and demand to help shape the workforce.

• Countries are implementing and upgrading transportable pension schemes (401k, CPF, Stakeholder, MPF, 401j)

Have we finally articulated Global Managers?

• The need to source against a global market (you need world-class people, don’t you?) means on-line, global, recruitment. Global sourcing is here- do your employment practices support this?

• After all the press, and all the writings, global managers are here. The bad news is that everybody is looking for them, and only a handful of companies have them. The rest are free agents.

• Technical skills and/or company experience are necessary, but no longer sufficient. Key: Can the manager effectively “transport” those skills across borders and cultures.

i2 Technologies

• i2 Technologies in Dallas is offering to relocate their employees, regardless of nationality, to India.

• Why?66% decrease in hard costsDevelopment of Global ManagersExport of i2 corporate culture, leading to an i2 global culture.

•Source: Travis Jacobsen, i2Technologies Director, Investor Relations

Labor mobility no longer solely means moving work overseas- it can mean moving workers overseas!

McDonald’s McPassport

• The McPassport, a McDonald’s Europe initiative, is an official certification of the training and skills that employees have acquired while employed by McDonald’s

• It is designed to support employee movement throughout the EU’s 25 member states

• Over 225,000 McDonald’s employees are eligible for the McPassport, called “unprecedented” by the Financial Times

Mobilizing your Talent

• The Expatriate Life Cycle» Selection» Assignment Administration» Repatriation

Tools for Success

• Tools you need to ensure a successful expatriate program» Understanding of objectives» Agreement on Strategies and Tactics» Well thought-out Policy» Robust Selection Process» Articulated Admin Guidelines» Detailed, proactive Repatriation Process

Understanding of objectives

• Why is this person going on assignment?» Development of high potential

manager?» Build, transition and exit?» Ongoing management by HQ required?» Assignee wants to return home?» Bring HQ or “western” skills into

foreign entity?• You can’t craft a policy unless this part is

very clear...

Philosophy...

• Your company’s assignment philosophy will shape specific components, but may be driven by perceptions…» Are your best people interested in

assignments? Why/why not?» Have you had successful assignments

before which you can point to?» Is an international assignment a

prerequisite for certain levels or roles?» Are you perceived to have an

“attractive” policy?

Do you understand…

• Individual attitudes to cross-border movement?

• Your own Corporate Mobility Culture?• Regional and local immigration biases and

trends?

Strategies and Tactics

• How do you want to achieve this? You must have agreement at executive management on the “what’s and why’s”» Is cost a big driver?» Is getting the “perfect person” the

primary concern?» Is getting the work done the real

priority?» Is the person you want not interested?» Is speed your driver? Is something on

fire?

Building a roadmap...

• To design and execute an effective expatriate/ repatriate policy, you have to have a roadmap to get there…

• It’s important to follow this in a linear fashion, as each portion will drive the design of successive components

• The roadmap will take you through a “building” process, which will lead to successful policy implementation

Policy Design

• Requires buy in from top levels of the organization

• Must be competitive, but must reflect reality of your company» Assignment Goals» Costs» Benefits» Treatment

Assignment Plan

• Is there an articulated Plan which helps your expats understand how things work? Does it include:» Explanations of policy? In clear English (or

native language)?» Carefully gathered and answered FAQs?» Timelines? Contact points for different

questions?» Family issues?» Repatriation Process outline?

Selection Funnel

Initial Background Screening Telephone Interviews Self Screening Exercise In-person Interviews Reference Checks for New Hires Look-See Visit w/Spouse External Assessments (Medical and

Psychological)

External Assessments

• Third party vendor used• Assessment protocol includes written instrument

and interviews, for both expat and spouse• Overall assessment process legally validated• Assessment not targeted at skills/experience

(that was covered through interview process); target is adaptability, flexibility, etc., likelihood of assignment success for family

• Results and recommendations given to candidate and spouse on the spot

• Results, recommendations and developmental or mitigating plans provided in writing to you

Development Plans

• Development or Mitigation Plans may be crafted in some instances» Expat might have some competency gaps which can be

developed» Family may have some issues which can be

managed/mitigated• Goal of such plans is to build a supporting structure which

drives towards a successful assignment• Could include:

» Executive Coaching» Intervention via IEAP» Specific work assignments with expert supervision» Assigning an experienced in-country “mentor” for expat

or for a family member

Orientation Process

• Orientation Service Components» Pre-Orientation Activities

• Recruiting Staff Distributes Orientation Information, which includes a Customer Service contact for Assignees

• Third party Assessment, Medical Screening Scheduling• Coordinate and Facilitate Orientation Scheduling and

Orientation Materials Preparation» Orientation Activities Example

• Wednesday - Visa Processing, Medical Visit• Thursday - Overseas Orientation

» Relocation Briefing» Compensation, Benefits & Tax Treatment» Security Briefing» International Assignment Plan Review

• Friday - Cross Cultural Training

Implementation/Administration

• Outsource?• Taxation?• Vendors?• Point of contact?• Level of care?• Exceptions to Policy?

Repatriation

• Possibly the most important part of the overall assignment» Is there a commitment?» Is there a plan?» What about the family?

• Your company’s action here sets the tone for all future expats...» Will you want your previous expats to

talk to your potential future ones? Why/why not?

• And, the repatriation discussion should have started BEFORE the assignment launched!

Retention

• Once you have them, you need to keep them- they represent a significant investment» Senior management commitment» Repatriation Strategies» Measuring ROI» Globalizing your workforce

• BUT, if they’re a JIT Manager, does your senior management understand the implications???

How do you win?

• Strategically?» Ensure that your selection siphon is well-

planned and consistently executed- you no longer have time or room for assignment failure

» Set, and manage, expectations at all levels- Corporate, Business Development, Country Managers- everybody needs to understand these sea changes

» Internet recruitment - find the right boards, sign the agreements and get busy

How do you win?

» Point to Point policies and practices-

an expat is an expat is an expatan expat is an expat is an expat• Don’t let your global policy focus on

home country or headquarter-based expats; • Be prepared to draft addendums which

address specific projects; • Your home country/HQ payroll is a

convenience for you- not for them- get ready to split your payrolls.

What must you do?

• You must change the way you staff…Develop robust recruitment practices that span the globe— whether your jobs are in Toronto, Taragona or Tsim Sha Tsui.Be ready to acknowledge that not everyone you hire is designed to remain with you forever. Lack of knowledge of local labor markets and recruitment practices? You’re toast.Have you researched the availability of qualified managers? Once you find them, do you understand constraints on and attitudes toward mobility?

What must you do?

• You must change the way you manage expatriates…Your expatriate selection process must be thorough, but must focus on ability to do the job on day oneYour exit strategy and repatriation process (if any) must be understood at inceptionDo your Expat ROI measurements reflect a focus on retention or efficacy?What do your local employees see? Glass ceiling or development?

What must you do?

• You must change the way you manage HR metrics…Can you measure how HR contributes to your business…against these changing demographics?Can you show that HR is doing the right things- and not just doing things right?Is HR communicating what it accomplishes?IS HR using relevant, local comparators?Are you reporting activities, or results?Change your definition of Employee ROI- understand that the JIT employee or manager may be more interested in her career or your specific project than your company

What must you do?

• You must change the way you manage overseas…»You must understand the local marketplaces; the availability of managers; specific skill sets/competencies which are scarce or abundant (remember supply v. demand)»You must understand local legal constraints on your ability to hire, manage, pay and separate employees. »Do you understand the cultural, historical, political and business drivers for location x? »To what extent does your business model depend on specific ROI within a specific timeframe? Will the local culture have an impact on this?

Kelly Global Mobility (KGM)

Core Components• KGM - previously internally focused, but now becoming a saleable service

line and profit center• Advise companies on global mobility practices• Visa/work permit review & coordination• Relocation/repatriation coordination• Tax & compensation support• Risk & Safety management• Identify Cross-border recruitment issues

DefinitionBlend of advisory services and program management of transactions to help clients efficiently move and align their workforce across international borders. Includes legal, compensation, and cultural and language components as necessary.

Delivery Models• Consultative Advisory Services• Program Management

(stand-alone or part of a blended solutions with KVMS, HRfirst, etc.)

Kelly Global Mobility

Demand: Temp & PermDemand: Temp & Perm

EMEA AMER APAC

SupplySupply

EMEA AMER APAC

Local KellyEntity

Local KellyEntity

KellyGlobal

Mobility

KellyGlobal

Mobility

LocalKellyEntity

LocalKellyEntity

Kelly Global Mobility – Case Study

• For a global healthcare provider» Dutch precision medical device manufacturing facility

closed by court order due to patent issues» Needed to immediately send 30 Dutch employees to

Mexico for three months to retrain Mexican employees on new manufacturing processes

» Identified housing and transport in Mexico, filed and obtained all work permits and visas, handled all transport of people and goods

» Employees successfully, and safely, completed the project in under 90 days

Other Kelly Outsourcing andConsulting Service Offerings

• Recruitment Process Outsourcing (RPO/HRfirst)

• Business Process Outsourcing (BPO)• Vendor Managed Services (KVMS)• The Ayers Group (TAG)

Next session…

• The next segment in Kelly’s Human Capital Management series will be:

• New Realities: The Multigenerational Workplace» May, 2008

• Jocelyn D. LincolnSenior Director, Global Market ResearchKelly Services Inc.

GPHR Prep with SHRM’s Global Learning System

• Kelly Services, partnered with SHRI, is proud be the first in Southeast Asia to deliver the GPHR Preparation Course

• This course, delivered using SHRM’s Global Learning System, will prepare you to sit for the GPHR exam in September, 2008

• GPHR (Global Professional in Human Resources) certification is granted after meeting specific criteria, and then passing an exam

• The GPHR prep course is designed to prepare one for the exam, develop global HR skills and knowledge, and better equip HR professionals to manage cross-border HR.

Details…

• Three day course, instructor led, offered:» Jakarta – 16-18 July» Kuala Lumpur – 21-23 July

• For more information:» Go to the Kelly Services home page for your

country, and click on the box for Global HR Professionals;

» email us at gphrprep@kellyservices.com, or» call your local Kelly Services office.

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