technology innovation in international assignment management · pdf filetechnology innovation...

TECHNOLOGY INNOVATION IN INTERNATIONAL ASSIGNMENT MANAGEMENT

24 April 2013

MERCER WEBCAST

Vince Cordova, New York Frederic Franchi, London

1MERCER

Today we will:

• Review the current and future state of international assignment management technology

• Highlight new and innovative products/solutions

• Focus on the best way to leverage these technologies in your international assignment program

2MERCER

Why do employers need to leverage international assignment technology?

Consistency

Maximize talent pipeline

Operational efficiency

The right people in the right places

Optimum use of assignmentsAn engaged workforce

A unique source of competitive advantage

Measure, optimize, and align assignments

Assignment strategy linked to business strategy

Improved business performance

3MERCER

Range of technology tools in use

Employers use technologies from simple Excel spreadsheets, word-processed templates, and email messages to robust suites of integrated databases, calculators, employee websites, and monitoring tools that can digitize almost any aspect of the expatriate experience.

Assignment Management

SystemsDesktop

Applications Others

4MERCER

Poll Question 1: Please answer on the right side of your screen

A. No formal system (Excel spreadsheets, internal file management systems, e-mail)

B. A mix of ad-hoc technologies (Excel spreadsheets) and some in-house and vendor technologies (software for immigration, tax compliance, compensation calculation)

C. Primarily an application developed in-house

D. Primarily outside vendor software

E. Outsourced to a vendor who uses a software application

What technology do you use to manage international assignments?

5MERCER


A. Very effective

B. Effective

C. Neither effective nor ineffective

D. Ineffective

E. Very ineffective

How effective is your approach in meeting your administration, reporting, and assignment management needs?

6MERCER


A. Big Four accounting firm system (PwC Resource; KPMG LINK; EY GEMS; Deloitte Global Advantage)

B. Dedicated expatriate management system (Equus AssignmentPro, HRToolbox, Atlas, Polaris)

C. Other

D. Not applicable – don’t use outside vendor

If you use outside vendor software, which one?

7MERCER


A. Assignment management

B. Compensation administration

C. Employee tracking and reporting

D. Assignment cost projections

E. Employee interfaces and communications

What key gaps would an effective expatriate technology solution need to address? (select all that apply)

8MERCER

International assignment management systemsWhat are employers doing in practice?

“What tools do you use to track/manage assignments and related costs?”

Source: Mercer’s 2012 Worldwide Survey of International Assignment Policies and Practices

We use an in-house

application13%

We use outside vendor software

18%

Other5%

We use mainly Excel

and Word64%

9MERCER

International assignment management systemsWhat are employers doing in practice?

• Almost two out of three employers surveyed (64%) still rely on Excel and Word to manage their programs – down from 71% in Mercer’s previous survey cycle (2010).

• Use of outside vendor software varied significantly by region:25% in North America16% in Europe7% in Asia-Pacific0% in Latin America

Source: Mercer’s 2012 Worldwide Survey of International Assignment Policies and Practices

10MERCER

International assignment management systemsFactors affecting technology use

• Workforce size• Program complexity• Experience / Duration• HR / Global Mobility staffing levels• Attitude toward outsourcing• Attitude toward centralization/decentralization• Attitude toward communication / employee self-service• Level of integration within the business• Technology sophistication and ease of use

11MERCER


Need for Reporting, Analytics Costand Budgeting

HR and Business Analytics (ROI, Planning)

Complexity of Program PoliciesHome and Host Locations

Duration / Age of Program

Number of Assignments and Transactions

Consistency and Efficiency

Accumulation of Data for

Monitoring and Reporting

Costing, Modeling,Analytics

Need for Technology &C

apacity of System

12MERCER


HR / GM StaffingLevels

Centralization / Decentralization

Level of Integration Within the Business

Employee Communi-

cations

Assignee / Employee

Self-service

Outsourcing /In-sourcing /Co-sourcing

Need for Technology?

13MERCER

International assignment management systemsTechnology and the assignment lifecycle

Repatriationand Post-RepatriationOn AssignmentPost-approvalPre-approval

Candidate application

Candidate / Assignee record

Development of assignment package(LOA, Balance Sheet)

Assignee acceptance

Authorization of services

Compensation, payroll, and reporting

Expensereimbursement

Management of ongoing services and supportCost projection

Informational and process resources and support for assignees

Pre-departure / Pre-arrival activities

Change of status / reintgration processes

Closing out assignment-related services

Assignmentapproval

Communications with assignee, internal and external parties

Post-repatriation tracking

Monitoring, reporting, and tracking of assignments

14MERCER


Pre-approval

Candidate Application

Candidate Assignee / Records

Cost Projection

Assignment Approval

Systems can store information in common database to support one-time input and storage of assignment communications.

Can be in both paper and electronic form, stored in multiple locations.

Standardized forms and approval workflow, approval can be embedded in process flow (i.e. approval buttons).

Can be contained in various emails and long strings, clear approval may not be apparent.

Consistency and ability to handle more complex scenarios and do batch processing.

Spreadsheets created for each assignment proposal, limited capa-bility for advanced calculations; change and consistency risks.

HRIS software that tracks all potential candidates for assignment can provide objective measures and result in more successful moves.

Management already has opinions about who constitutes a good candidate for assignment.

HIGH-TECH SOLUTION / OUTSOURCEIN-HOUSE / LOW-TECH

15MERCER


Post-approval

Development of Assignment

Package

Assignee Acceptance

Authorization of Services

Support for Assignee

Assignee able to review and sign off on assignment terms and conditions via website.

Assignee typically receives e-mail with numerous attachments / files to review. Communicate acceptance either verbally or via email.

Assignee can access tools and status information in virtual environment.

PDF files and links to various web-sites typically provided to assignee and family. Assignee may be required to reach out to vendors.

Automated from assignee acceptance. Notifications and status updates typically tracked centrally.

Notification process commonly requires multiple, separate emails sent to various parties, follow-up, and confirmation ad hoc.

All documents developed via customized workflow that shares data across different templates to generate assignment documents.

Separate, stand-alone programs used to develop LOAs, balance sheets, checklists, etc.

HIGH TECH SOLUTION / OUTSOURCEIN-HOUSE / LOW TECH

16MERCER

International assignment management SystemsTechnology and the assignment lifecycle

On Assignment

Expense Reimbursement

Managing Ongoing Services and

Support

Monitoring, Reporting, Tracking

Assignments

Process is managed efficiently with reimbursements accurately reflected on assignment compensation statements for home and host tax purposes.

Due to need to report differently for tax purposes, can be a manual process or require overrides to existing company processes.

Regular, accurate reporting on head count, pipeline, status, cost, etc. can be provided to various groups to help identify critical issues or gaps.

Typically ad-hoc reporting of data stored in various locations. Difficult for compliance and to ensure timeliness, accuracy.

Automated reminders ensure all that no steps or key dates are missed guarantee-ing consistent treatment of all assignees.

Managing core, peripheral activities and processes relying on organiza-tional and project management abilities or internal teams.

Integrates system used to batch process these items and feed them to assignees, vendors, and other parties as necessary.

Balance sheets and pay instructions done on a “one-off” or per-assignee basis. Stand-alone systems create inefficiencies and risk of errors.

HIGH-TECH SOLUTION / OUTSOURCEIN-HOUSE / LOW-TECH

Compensation, Payroll, and Reporting

17MERCER


Repatriation / Post-Repatriation

Change of Status / Reintgration Processes

Closing Out Assignment-related

Services

Post-repatriation Tracking and Measurement

Coordinating with talent management software can promote more successful moves home.

Separate transactions in the home and host locations. Inefficient communication and follow-up with multiple parties and assignees.

Integrating data from multiple systems in a common platform which enables in-depth analysis and reporting in a dashboard or similar format.

Typically done through ad-hoc reporting of data stored in various locations. Can be time-consuming to collect and analyze data.

Automated process to ensure services are related, billings are terminated where appropriate (i.e. storage) or extended as necessary (i.e. tax return preparation).

Notification process requires multiple, separate emails sent to various parties, follow-up and confirmation done ad hoc.

Even if moving is outsourced, employers can use software to track overall program costs, identify trends, and ensure outsourced providers perform.

Notification process commonly requires multiple, separate emails sent to various parties, follow-up and confirmation done ad hoc.

HIGH TECH SOLUTION / OUTSOURCEIN HOUSE / LOW TECH

Pre-departure /Pre-arrival Activities

18MERCER

International assignment managementExamples: Mercer supported management systems

• Global HRMonitor® (GHRM) – Expatriate Compensation Calculator (including Advanced and Pro versions): Facilitates balance sheet calculation process, allows grossing-up, as well as storage and retrieval

• AssignmentPro™: End-to-end automation for global mobility managers to effectively manage all aspects of international assignment (payroll, vendors, expenses, tracking, reporting, compensation, communication)

19MERCER

International assignment managementGHRM: Expatriate Compensation Calculator (ECC) Pro

20MERCER

International assignment managementAssignmentPro: End-to-end automation

21MERCER

International assignment managementAssignmentPro: System features

Integration Payroll and email systems

Document Manager Merge, email, and store documents

Web Portals

Access for assignees, suppliers, HR

Workflow & Checklist Automation

Monitor and manage processes

Multi Currency Accounting

Projections, expenses, compensation

Compensation Automation

Calculate and report to payroll

Compensation Accumulation

Gather information throughout the year

Online Expense Entry

Automatically route for approvals

22MERCER

International assignment managementAssignmentPro

23MERCER

International assignment managementSuccess formula

Flexible software+ Continuous innovation= Happy internal clients

24MERCER

International assignment managementAssignmentPro implementation project

Continuous Innovation

Value of community-driven, continuously enhanced software vs. custom-built software

Value

25MERCER

International assignment managementCase study

• Background:Manufacturing company~ 150 expats and 100 local transfers annually23 different countriesAssignment management services outsourcedGlobal mobility staff of 2 / shared services for HR locally

• Drivers for seeking a technology solution:Collecting data consistently for domestic and international movesTracking assignee moves Financial and compliance-related reporting Global access and reporting assignee data for stakeholdersTools for tax equalization, compensation accumulation, payroll

26MERCER

• Assignment management outsourced

• Tracking scattered, using different platforms

• Reporting was problematic

• High level of inefficiency

Before• Increased visibility

• Assignment management back “in-house” (group of 4)

• Consistent, consolidated work processes and data

• More control, centralization

• Improved reporting, responsive-ness, compliance tracking

• Increased efficiencies, espe-cially in compensation, tax equalizations, and payroll

• Building career development and talent management

After

International assignment managementCase study – Key outcomes

27MERCER

• People are connected globally:1B Facebook users175M LinkedIn members in over 200 countries

• Connections happen quickly: There are almost 6 billion cell phones worldwide (85% of population of 7 billion, as of March 2013)

• Assignees have a critical need for timely and relevant information that can be accessed 24/7

International assignment managementEnhancing the assignee interfaces

28MERCER

International assignment managementEnhancing the assignee interfaces – examples

• MercerPassport®: Country information necessary for expats and their families to prepare for, navigate, and settle into their assignment location/new home country.

• CulturalTrainingPassport™: Prepares expats and their families for their time abroad. Includes affordable, interactive, country-specific cultural training courses, and a personal cultural profiler.

• Mercer Belong® Global Mobility: A robust web-based application that can serve as a client-customized web portal for a wide range of resources related to mobility for the employer, assignees, and vendors.

29MERCER 29

International assignment managementEnhancing the assignee interfaces – MercerPassport®

30MERCER

International assignment managementEnhancing the assignee interfaces – CulturalTrainingPassport™

30

31MERCER

International assignment managementEnhancing the assignee interfaces – Mercer Belong® Global Mobility

31

32MERCER

International assignment managementEnhancing the assignee interfaces – Mercer Belong® Global Mobility

32

33MERCER

In closing, please consider ...

• How many types of expatriates do you have? Are you segmenting expatriate support elements appropriately among types?

• Are you keeping good track of your expatriates?

• Are your expatriates happy?

• What is the ROI of your expatriate program?

• What is the cost of an error compared to the cost of technology?

• Would a flexible solution better suit your program?

34MERCER

Questions

Vince CordovaNew York+1 212 345 [email protected]

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Frederic FranchiLondon+44 20 7178 [email protected]

technology innovation in international assignment management · pdf filetechnology innovation...

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