Survey of Global Mobility Policies -p.pwc.com/welcomepage.aspx International Assignment Services

http://iasexpatsurvey-p.pwc.com/welcomepage.aspx
Survey of Global
Mobility Policies
International Assignment Services
Survey of Global Mobility Policies
PwC’s services in this engagement
do not include, and are not intended
to constitute, tax advice and,
therefore, are not subject to Treasury
Department Circular 230 and/
or Internal Revenue Code § 6694.
Accordingly, any advice or deliverables
associated with this engagement are
not intended to be used, and cannot be
used, for the purpose of avoiding U.S.
federal, state or local tax penalties.
Any services requested by a Client,
or proposed by PwC, that would
constitute tax advice will be provided
under a separate engagement
letter including appropriate Terms
and Conditions
Executive Summary
In today’s highly competitive global marketplace, the structure and
appropriateness of your global mobility policies can have a significant impact
on your organization. Examining your global mobility policies will allow you to
determine if they are comprehensive, effective, and properly aligned with your
organizational goals. There are many variations in mobility policies, both by
industry and location, and we believe that it is critical for organizations like
yours to be aware of these various practices. Indeed, there is significant value
to understanding how your organization’s mobility policies differ when
compared to your peers and the overall marketplace. Policy benchmarking can
be the springboard to achieving a more competitive profile in your market,
greater success in managing your assignee population, and ultimately, better
financial results for your organization.
We see an even more dramatic shift in the assignee profile as well, fewer
assignees at the executive level, with continued focus on subject matter
experts and technical specialists and an increased number of assignments for
developmental opportunities.
Based on the results of our
PwC Survey of Expatriate
Policies and Practices; in
1992, 5% of companies had a
"tiered" approach to policies,
in 2000, 50% of companies
had a tiered approach and in
2011, 87% of companies had
a tiered approach. This
tiered approach allows
companies differentiation
of policy provision by type of
assignment and/or talent
type aligned to that mobility
policy (i.e., executive policies
and developmental policies).
Since 1992, PwC has regularly invited companies from all industries and sizes,
with varying levels of global mobility program maturity, to take part in our
Survey of Global Mobility Policies. Almost 1,000 companies have participated
in the Survey over the years, representing more than 50 global industries.
Participating companies range in size from just 500 employees to more than
250,000 globally and from 1 assignee to thousands of assignees.
Traditional global mobility programs tended to be executive-heavy, with a large
concentration of assignees from the headquarters and regional headquarters
locations. As organizations look to a global talent pool, the program
demographics shift dramatically from 80 to 85 percent of assignees from the
headquarters location to less than 50 percent. We see an even more dramatic
shift in the assignee profile as well, from 80 percent of assignees at the
executive level to less than 20 percent, with an increasing percentage of the
assignee population on developmental assignments, and the remainder of the
population in technical and subject-matter expert roles.
It is said that to truly see the future, one must first understand the past. In the
case of global mobility policy and programs, this is especially true. If we were
to step back and compare the mobility trends from 1992 to today, we would
notice a very different landscape. In response to today's ever changing global
business environment, some of the latest trends in global mobility policy
design and implementation include the following:

One global policy framework, regardless of home or host location, that
reflects the core philosophy of the company’s mobility program. This
policy framework often includes guidelines for the various types of mobility
(e.g. extended business traveler, short term, long term and long term tiers,
commuters, localization, permanent transfer, etc.).

In general, organizations are moving away from a transactional approach
to mobility, and moving towards a strategic and operational approach. We
have seen the impact of the shift on the design of assignment policies –
companies have moved away from cash rich incentive payments (financial
incentives specific to certain industries) to providing specific support
activities such as acclimation programs and spousal services.
Based on the results of our PwC
Survey of Expatriate Policies
and Practices; in 1992, 72% of
companies paid a foreign
service premium while in 2011
this decreased to 36% of
companies paying a foreign
service premium. There has
been a significant trend over
time in support services,
including cultural orientation,
destination services, and settling
in services provided by most
companies.

Based on the results of our
PwC Survey of Expatriate
Policies and Practices; in
1992, 44% of companies used
a headquarters based
approach (and 47% used a
home based approach) while
in 2011 10% of companies used
a headquarters based
approach (and 65% of
companies used a home based
approach).
More focus on the intent of the assignment and a policy approach
designed to support that intent. The compensation approach has shifted
from a headquarters based package to a home based package for most
assignees (with the headquarters based or even harmonized salary
structures package retained for executive talent and global cadre).

Increased focus on effective cost management of policy design with use of
customized or modified cost of living indices and use of salary caps for cost
of living and hardship allowance calculations.
Based on the results of our
PwC Survey of Expatriate
Policies and Practices; in
1992, only 32% of companies
customized their cost of living
allowances while in 2011 this
increased to 56% of
companies.
The components of your global mobility policy are generally driven, in part, by
your industry sector as well as your assignment program demographics. Our
clients use this survey information extensively to benchmark their policies,
allowing them to determine whether they are truly competitive when compared
to various different data extracts, including industry peers, regional results,
programs of similar size, etc. Survey extracts are available upon request;
please contact ([email protected]) for additional information.