Highlights of Ernst & Young's Global Mobility Effectiveness Survey from 2007 to 2012, how global mobility impacts strategy, operations, talent management and growth markets, and the five focus areas for global mobility to drive business success.

1. 2012 Human Capital Conference
23–26 October
Contrast and compare: the
Gl b l Mobility Effectiveness
Global M bilit Eff ti
Survey

2. Disclaimer
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Ernst Y
E t & Young Global Li it d each of which i a separate l
Gl b l Limited, h f hi h is t legal entity.
l tit
Ernst & Young LLP is a client-serving member firm of Ernst & Young
Global Limited located in the US.
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Thi presentation i © 2012 E t & Y
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► The views expressed by panelists in this session are not necessarily
those of Ernst & Young LLP.
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3. Presenters
► Kevin Cornelius
► Ernst & Young Ltd, Switzerland
► kevin.cornelius@ch.ey.com
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4. Survey methodology
► Comprehensively capturing the
p y p g
current state of global mobility: its
operational effectiveness and
issues it is facing
► February to May 2012
► 520 multinational companies
surveyed
► Six case studies
► Ernst & Young analysis and
commentary
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5. Ernst & Young 2012 Global Mobility
Effectiveness Survey report
Industry sector-specific reports
Media release
Available today
Page 5 Contrast and compare: the Global Mobility Effectiveness Survey

6. A common message from global mobility
professionals everywhere
“Operational workload keeps mobility functions away
from strategic thinking ”
thinking.”
— Chris Debner, Human Capital Executive Director, Ernst & Young Ltd
“Many companies will wait until they have a major
compliance failure.”
— Jay Sternberg, Global Leader for Short-Term Business Visitor Solutions, Ernst & Young LLP
“Senior leaders require us to be more closely aligned with
workforce planning, talent management and
p g, g
organizational development.”
— Craig McEvoy, Head of Global Mobility for Brazil-based Vale
“Business should understand the importance of
“B i h ld d t d th i t f
international experience.”
— Janelle Parkinson, Head of Global Mobility, Recognition & Benefits, Group Reward
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7. Our global mobility effectivness surveys
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8. 2008 Global Mobility Effectiveness Survey
First edition
► Recognition of need for improvement in:
g p
► Automation of administrative tasks
► Development and enhancement of global mobility functions
► Processes
► Risk management
► Prevention of early repatriation and talent loss
► Shift to strategic issues and goals to be a stronger business
partner
Page 8 Contrast and compare: the Global Mobility Effectiveness Survey

9. 2009 Global Mobility Effectiveness Survey
Cost and control
► Repatriation key issue: 5% of assignees have left their
p y % g
company within two years after repatriation.
► 61% of international human resources (IHR) teams are
( )
not involved in the assignee selection process.
► 28% differentiate between strategic and developmental
policies.
► Only 20% of companies know their true cost.
► 81% of companies say they are planning cost reduction.
► There are three key areas of focus for managing cost:
► Global mobility processes
► Localizations
► Policies
Page 9 Contrast and compare: the Global Mobility Effectiveness Survey

10. 2010 Global Mobility Effectiveness Survey
Lessons from change
g
► A new global economic p
g picture has emerged.
g
► IHR teams have increased involvement in assignees
selection.
► More than half of companies are reviewing their Global
mobility policies within next six months.
► 54% of companies report a bigger focus on risk.
► 77% of companies are looking for cost savings, but only
9% were able to accurately access cost.
► Only 57% actually reduced cost (of these, 74% achieved
less than 10% cost savings).
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11. 2011 Global Mobility Effectiveness Survey
Competing for g
p g growth
► Economic turbulence, natural disasters, uprisings and
conflicts affect growth.
fli t ff t th
► Long- and short-term assignments are increasing.
► The i
Th size of IHR t
f teams i i
is increasing, b t not yet sufficient.
i but t t ffi i t
► 60% of companies have reviewed their policies in the last
12 months
months.
► There has been a significant increase of assignees into
growth markets over last three years: India 80% Africa
80%,
75%, Brazil 71%, Russia 43%, China 23%.
► 83% of inbound assignees are strategic resources
inbound.
► Outbound assignees have significantly increased.
g g y
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12. 2012 Global Mobility Effectiveness Survey
Driving business success
g
► Global Mobility today:
y y
► On the rise
► Focused on growth markets
► Business critical
► Evolving
► HQ centralized
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13. Strategy and operations disconnect
► Key issues:
y
► Understaffing
► Evolving regulations
► Talent management agenda
► Compliance frameworks
► Early repatriations
► Future leaders
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14. Growing beyond themes
Global mobility is
increasingly a key Talent management
feature in driving and global mobility are
business success working along parallel
lines
► Directing talent and new
investments to growth markets
Globalization Global mobility
► Changing business strategies has had a
Strategy Mobility strategy
► Evolving global mobility strategies dramatic effect
on business Operations must better align
► Focus on operational models Talent with business
strategy
effectiveness Growth markets
Global mobility is Expansion in
not yet achieving
y g emerging markets is
g g
its full operational on the rise, but it is
potential creating compliance
challenges
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15. Strategy, operations, growth, talent

16. Global mobility strategy
Increasing number of global mobility assignments
Short-term Long-term
400 1,500
1 500
350 1,400
1 400
300 1,300
1 300
2012 2013 2014 2012 2013 2014
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17. Global mobility strategy
Global mobility is about today; talent management is about
tomorrow.
tomorrow
► Top priorities for global mobility:
► Business needs for the current year
► Successfully moving the assignee
► Create an international talent pool for future leaders
p
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18. Global mobility strategy
Missing long-term link between global mobility and global
talent management
► Whatlink between global mobility and talent Talent
► The is the link between Global Mobility and
management:
g
Management?
► Assignees selected case by case
► Assignments designed to form future leaders
► Immediate business needs, no long-term planning
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19. Strategy, operations, growth, talent

20. Operations
Internal barriers are cited as No. 1 cause of inefficiency.
5%
8%
35% External barriers
16%
Business (late decision
taking)
Assignees (negotiations)
Resources (understaffed Internal
IHR) barriers
Internal communication
36%
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21. Operations
Sixty-eight percent of companies do not have a formal
payroll tax and social security compliance risk control
framework.
► CCompanies are f
i focusing their i
i h i immediate operational
di i l
needs on:
► Processes
► Policy
► Communication
► Tax compliance
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22. Operations
Sixty-five percent of surveyed companies do not have a
tracking
t ki process for cross-border b i
f b d business t travelers.
l
► Companies state their main compliance risks as:
► Income tax reporting and withholding
► Short-term business travelers
► Immigration
► Social security reporting and withholding
Page 22 Contrast and compare: the Global Mobility Effectiveness Survey

23. Strategy, operations, growth, talent

24. Growth markets countries
Inbound assignments in growth markets versus other have increased 48% from
2011 and will increase 60% in two to three years.
y
113%
120% 131%
120% 135% Africa
150% China
133%
167% India
175%
113% Russia
2011 Brazil
B il
2012
2015
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25. “Assignments premised solely on reward
have higher risk of failure ”
— Ray Harraway, Ernst & Young (Pty) Ltd, Partner, Human Capital, South Africa
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26. Growth markets countries
Main issues in growth market countries
Brazil
Russia
India
China
Africa
Compliance Security Compensation Housing Schooling
Page 26 Contrast and compare: the Global Mobility Effectiveness Survey

27. Growth market countries
Managerial and strategic goals are the top drivers for
moves i all growth market countries
in ll th k t ti
36%
23%
Brazil 39%
3%
35%
Russia 23%
39%
4%
36%
India 23%
37%
4%
35% Project-based work
24%
China 39%
2% Developmental
38%
23% Strategic/managerial
Africa 35%
30% Other
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28. Strategy, operations, growth, talent

29. Talent management
Only half of companies have a global talent management
agenda.
d
► Distinct differences between companies headquartered in:
Europe 59%
Africa 50%
North America 48%
Asia-Pacific 41%
South America 13%
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30. Talent management
Ninety-two percent of companies say they do not use
social media t communicate with th i assignee t l t
i l di to i t ith their i talent.
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31. Review Global mobility
y
Analyze
Assess risks Involve
Integrate
Talent management
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32. Five focus areas for global mobility to drive
business success
Alignment Evaluate your Dynamic Integrate Build robust
of global true operational management talent and global
mobility to effectiveness of growth management compliance
business market and global frameworks
strategy opportunities mobility
Page 32 Contrast and compare: the Global Mobility Effectiveness Survey

33. At the end of the day, it is about getting:
► the right p
g person
► at the right time
► in the right place
► for the right cost.
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34. Questions
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