International HR Adviser Spring 2013

SPRING 2013

ISSUE 53

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International HR Adviser The Leading Magazine For International HR Professionals Worldwide

Features Include: Return On Investment: What Not To Do When Measuring Expatriate ROI Engaging A Distributed Workforce • International HR Strategy: The Role Of HR In Global Mobility International Risk: Clear And Present Danger • The Growing Challenge Of Compliance In Global Mobility Global Taxation • Ten Issues For Managing Globally Mobile Talent In 2013 • Global Immigration Update Advisory Panel for this issue:

Expatriate Adviser Summer

Autumn International HR Adviser

CONTENTS

In This Issue Page 3

Return On Investment: What Not To Do When Measuring Expatriate ROI Dr Yvonne McNulty, Shanghai University

Page 6

Engaging A Distributed Workforce: Going Global, Staying Engaged Nicholas Roi, SilkRoad

Page 8

International HR Strategy: The Role of HR in Global Mobility Andy Cowen & Robert Hodkinson, Deloitte LLP

Page 12

International Risk: Clear And Present Danger Mima Hillier, TTH Relocation

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The Growing Challenge Of Compliance in Global Mobility Tracy Figliola, Global Head of Global Mobility, HSBC

Page 18

Global Mobility: Exploring The Value Proposition Of The Global Mobility Function Helena Wennberg, Stuart Woollard & David Collings, King's College London

Page 20

Global Taxation Update Andrew Bailey, BDO LLP

Page 24

Taxing Issues: Expatriate Policies – Types Of Assignment Andrew Bailey, BDO LLP

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Education: Relocating With Children - Practical Challenges For Families On Overseas Assignments Fergus Rose, ACS International Schools

Page 28

RES Forum Survey On Developing Trends In Assignment Policy And Programme Management Andy Piacentini, RES Forum & Head of Reward at Howden Engineering

Page 30

Multicultural Training - Translating International Methods: Taking Training Abroad It's Not As Easy As Catching A Plane Chris May, FXL

Page 32

Ten Issues For Managing Globally Mobile Talent In 2013 Mercer

Page 33

Immigration: Which Category Is Best For Your Internship Population – Tier 2 Or Tier 5?

Nadine Goldfoot, Partner, Fragomen LLP

Page 34

Global Immigration Update Fragomen Global LLP

Page 38

Diary Dates

Page 39

Directory

International HR Adviser, PO Box 921, Sutton, SM1 2WB, United Kingdom Publisher • Helen Elliott +44 (0) 20 8661 0186 • Email: helen@internationalhradviser.com Publishing Director • Damian Porter +44 (0) 1737 551506 • Email: damian@internationalhradviser.com www.internationalhradviser.com In Loving Memory of Assunta Mondello While every effort has been made to ensure accuracy of information contained in this issue of “International HR Adviser”, the publishers and Directors of Inkspell Ltd cannot accept responsibility for errors or omissions.

Neither the publishers of “International HR Adviser” nor any third parties who provide information for “Expatriate Adviser” magazine, shall have any responsibility for or be liable in respect of the content or the accuracy of the information so provided, or for any errors or omissions therein. “International HR Adviser” does not endorse any products, services or company listings featured in this issue.

Cover Design by Chris Duggan

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Expatriate Adviser Summer

Autumn International HR Adviser

Return on Investment

What Not To Do When Measuring Expatriate ROI Although obtaining a measure of expatriate ROI has been a high priority for many companies for at least the past decade, no formal attempts have been made to measure it. When I first began research on this topic over ten years ago, I found this surprising. If firms investing millions of dollars annually into global mobility programmes do not have this discipline, on what basis do they make critical decisions about global staffing?

What I discovered is that while formal measures of ROI do not yet exist, there are numerous informal measures that have been used, predominantly in an attempt to measure something, even if that something isn’t particularly meaningful in terms of guiding future decision-making.

At best such ‘measures’ give the perception that measurement is in some way driving the desired organisational actions expected from expatriate employees, even if the impact is not visible or is misleading. At worst, careless measurement may actually drive the wrong actions and create more long-term problems in terms of improper resource allocation and increased costs.

There are five informal types of expatriate ROI measures that have been used: (1) anticipated outcomes; (2) short-term financial; (3) short-term functional; (4) long-term strategic; and (5) individual measures. But through the course of my research I’ve become highly critical of most of these measures because I found overwhelming evidence that the reported outcomes arise largely from ad hoc data and subjective perceptions of reality.

Indeed, most mobility managers seem to base their expatriate ROI assessments on little more than “intuition”, a “feeling”, a “belief ”, or an (often biased) interpretation of an actual outcome.

Another problem is that these informal measures relate to past performance and provide only retrospective data as observed once the assignment has terminated, thereby diminishing managers’ ability to obtain predictive information upon which they might act. In this light, many existing expatriate ROI measures such as those above are incapable of guiding future decision making and helping managers sustain long-term strategic success.

A further problem is that, because informal measures are easier to obtain, they typically produce quantitative indices (e.g. turnover rates, failure rates) that then lead to inferences about unobserved relationships.

Another example of when informal measures of expatriate ROI do not work well is the use of promotion rates: some companies justify continued investments in global staffing on the basis that expatriates are promoted at a faster rate than non-expatriates, but there is little evidence to support their conclusions. For example, if time in a domestic role is three to four years for a non-expatriate, the length of an international assignment is pretty much the same; for a lot of expatriates, the next move is probably going to be a promotion but the key question is: was being on an international assignment what made the difference? I would argue no, not in all instances. Thus, the usefulness of measuring promotion rates is questionable.

The biggest problem, however, is that each of these informal measures assesses expatriate ROI in an isolated manner by observing only a few behaviours, factors, or outcomes within a limited context (e.g. repatriation turnover, assignment failure and/or success), so that the possible interrelatedness of the various measures and their joint impact on expatriate ROI are ignored. Put simply, no measure accounts for the total expatriate management system. This is a major failing by most companies because focusing only on isolated HR practices and their outcomes tends to reinforce the extent to which an expatriate programme alone has changed, rather than other wider organisational gains.

This limited focus prevents managers from reframing how international assignments are considered in the broader context of an organisations overall strategic capabilities.

Additionally, inappropriate data on their own reveal very little about why certain outcomes occur. To explain what I mean, let’s examine four of the most common measures of expatriate ROI.

Repatriation turnover Avoiding repatriation turnover is often treated as an indicator of successful mobility programmes. But as recent reports

show, many companies no longer provide post-assignment repatriation guarantees, so the loss of these employees during or soon after repatriation may be inevitable, and may even be functional. Additionally, in some instances repatriation turnover may be due to factors other than expatriate dissatisfaction or performance, including short-term external influences such as market conditions (e.g. redundancies or downsizing).

Similarly, low repatriation turnover may be misleading: for example, the loss of even one expatriate may be strategically devastating for a business unit if that particular individual is pivotal to achieving a vital objective and is considered a high performer whose retention is a specific objective of an international assignment, while the loss of a number of poorly performing expatriates during repatriation may instead be welcomed as ‘functional turnover’. Context matters: measures of repatriation retention and turnover will have varying degrees of relevance to the expatriate ROI assessment and must be factored in accordingly.

Furthermore, the emphasis on repatriation as a criterion of success needs to be re-thought, because the importance of repatriation in its traditional form is declining. My research shows that while a number of assignees repatriate upon completion of an assignment on the assumption they are going home for good, an increasing number find they have done nothing more than ‘relocate back’ for a few years to then take up subsequent opportunities to go abroad again. Thus, repatriation is, for some, nothing more than one step in an evolving ‘dynamic’ global career.

From this perspective, I predict that the notion of repatriation as an ‘end state’ simply will not work for many expatriates or their companies and is already becoming an outdated model of global staffing. My own research proves it: I found that increasing numbers of expatriates are now leaving their companies during an assignment, often making their employers’ focus on repatriation retention strategies pointless. For all these reasons, repatriation turnover as a measure of ROI is a mistake.

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Return on Investment Assignment failure Perhaps the most popular measure of all, assignment failure is also the easiest statistic for managers to obtain. Yet, failure rate data has consistently shown to be inadequate and unreliable, resulting in “efficiency” measures that are mostly subjective and intuitive. Failed assignments are difficult to define leading to estimates of failure that are grossly exaggerated, ranging up to 75 per cent, but accepted as fact.

Such statistics are highly misleading for guiding future decision-making because they fail to account for the context within which failure occurs, e.g. short-term economic downturns or unforeseeable shock events, and thereby result in generalised data that neither depicts the ‘true picture’ nor is region specific.

In the rare cases when assignment failure is properly identified, data can provide useful diagnosis of organisational dysfunctions in the processes that support expatriates, such as poor career management support, or gender discrimination.

Doing this elevates the tracking of failure rate statistics beyond ‘measuring to report’ to providing meaningful data that can be used to manage and improve expatriate policies and practices. In practice, however, this is rarely the case: the failure rate is often an embarrassing statistic that many wish to avoid becoming public knowledge, as evidenced by the fewer than 10 percent of firms in my research that formally track failure rates on an ongoing basis.

Assessing a failure rate is not an appropriate expatriate ROI metric because it is a lazy measure, frequently used as a scaremongering tactic to sell third-party vendor services. This is because the myth about high failure rates has been around for so long that no one questions it any more.

I recognise this is a bold statement but it needs to be said. To understand why, let’s delve deeper into the psychological fear behind failed assignments. I know from my research that a failed assignment can sometimes de-rail a company’s strategy, and maybe even send it spiraling backwards in terms of competitive advantage, especially in emerging markets where it may be difficult to get expatriates to go in the first place. The fall-out can be deep, for example, in Asia where business is based almost entirely around personal relationships with locals, thus creating a ripple effect that can be difficult to recover from in the shortterm. If companies can then be convinced that assignment failure is high across a International HR Adviser Spring

particular industry or region, they can more easily be persuaded to buy consulting services that will help them avoid having failed assignments. Common sense dictates, however, that companies with high failure rates would go out of business, period.

The reality is that failure rates are historically low. My own research shows that under normal business conditions, companies report fewer than 10% failed assignments, with most ranging from 4 to 6% annually, a statistic that has been consistently supported by consulting reports for more than 20 years. Thus, it is time to stop buying into the illogical conclusion that international assignment failure is high, and to start seeing this measure for what it is: one frequently used in isolation from other measures and assignment outcomes, plagued by poor construct definition and inconsistent data collection, that mythologises the impact of expatriation on a company’s strategy, and is clearly a weak measure of ROI.

stages during, and various stages after, an assignment is completed.

Possible criteria for assignment success include cross-cultural adjustment, job performance, organisational commitment, assignment completion, and achievement of assignment objectives.

Numerous consultancy surveys report further complexities. For example, a 2004 report by Cendant found amongst a cohort of 146 global mobility managers worldwide that three different assignment success measurement approaches are used by companies: (1) bottom line assignment costs; (2) business generated from the assignment; and (3) justified expense as part of a long-term globalisation strategy. A 2005-6 report by Mercer based on a survey of 160 MNCs found that success measures also include: (4) development of local competencies; (5) development of a pool of skilled, experienced managers; and (6) increases in market share in the host location.

Assignment success

Job performance is perhaps one of the most critical short-term measures of expatriate ROI because it can be directly linked to an assignment’s purpose. If an expatriate’s performance against agreed on-assignment objectives is deemed to be satisfactory, then assignment success is almost guaranteed - and who could want more than that?

Unfortunately, assessing expatriate job performance is handled poorly by many companies, being viewed too often in terms of adjustment rather than expected job outcomes. This is especially the case in academic studies, where an extensive focus on adjustment to facilitate performance has impeded the more important focus on actual international assignment performance outcomes.

Furthermore, job performance as a component of assignment success must be based on a specification of assignment objectives. Yet, consistent with earlier academic studies, a 2005 GMAC report showed that only 32 percent of organisations monitored expatriate performance against clear objectives, while a 2006 ORC report stated that nearly 40 percent of home-country business units responsible for setting, monitoring, and measuring expatriate performance objectives did not clearly understand what those objectives were. Part of the problem is inconsistency in the use or enforcement of performance appraisals. In addition,

To most managers, the success of an international assignment is the embodiment of expatriate ROI. After all, if the assignment achieves what it is supposed to, then what better return can there be? The problem is that because companies still struggle to define not only why they have expatriates but what benefits they expect from expatriation, assignment success is as slippery a concept to define and measure as assignment failure. In my research, only 52% of companies said they set clear objectives at the commencement of an assignment that were documented as part of the approval process. Only 20% then checked against those objectives at the end of an assignment to determine whether they had been achieved. Further complicating the situation, assignment objectives often changed due to a management or strategy shift (for example, from a joint venture or merger).

How then are assignment objectives monitored and assessed? What about short-term objectives assessable as soon as the assignment is completed, versus long-term objectives the benefits of which may not be visible for some years?

I contend that although knowing how to define assignment success in terms of the real value to the organisation remains a considerable challenge, what matters more is having clearly defined assignment objectives from which assignment success can be determined at various

Job performance

Return on Investment various cross-cultural factors make it difficult to implement, monitor, and manage expatriate performance on a global scale.

Additionally, job performance is not given high priority when assessing assignment outcomes. For example, the most recent Brookfield report shows that of those companies that do attempt to measure expatriate ROI, ‘completing assignment objectives’ is the thirdranked criterion, behind ‘international assignee compensation costs’ and the ‘cost of relocation support’.

The purpose of this article has been to advocate how expatriate ROI measurement might best be achieved by illustrating what not to measure. But while metrics are critical, there is more to ROI than simply designing measures and evaluating assignment outcomes. Now we must ask: How do we get the expatriate ROI we are seeking? A soon-to-be released book provides some direction. With a focus on strategically-based practices for the management of expatriates applicable in

international organisations world-wide, and an in-depth understanding of today’s corporate expatriates, the lives they lead and the issues they face, Managing Expatriates: A Return on Investment Approach (Business Expert Press, 2013) draws on the latest research to address the critical challenge of expatriate ROI. In the book, my co-author (Professor Kerr Inkson, the world expert on global careers) and I focus the concept of Return on Investment (ROI) – both corporate ROI and the individual ROI expectations of expatriates themselves – and explain how to manage expatriates with an ROI approach in mind. We replace the traditional model of expatriation with a new model. We define what ‘expatriate ROI’ is, why it matters, and how organisations can improve expatriate management to secure a higher ROI. We focus particularly on expatriates themselves and the ‘mobility managers’ who manage them, and on the expatriation processes and practices of their organisations.

Dr. Yvonne McNulty is a leading authority on expatriate return on investment and an academic expert in the field of expatriation.

Currently on the faculty at Shanghai University, her research has been featured in The New York Times, Economist Intelligence Unit, International Herald Tribune, BBC Radio, China Daily, The Financial Times, HR Monthly, Elle Magazine, Sydney Morning Herald and many other publications. An Associate Editor for the new Journal of Global Mobility: The Home of Expatriate Management Research, she can be contacted at dr.yvonne@expatroi.com hp +65 9107 6645.

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Engaging A Distributed Workforce

Going Global, Staying Engaged When companies 'go global' and establish offices overseas, there are many new challenges to be faced. Not least among them is the job of keeping the now far-flung workforce engaged. Working across international borders complicates many business processes, but at heart the principles remain the same. The goal is to implement processes which are coherent and effective, and which work as well globally as they would in a single-office context.

Variation And Consistency In doing this, a company must design an engagement strategy that meets the differing needs of its employee population while retaining its overall consistency. This means the same training, the same processes and - most importantly - the same standards must apply in all localities.

Onboarding is one of the most problematic processes for businesses in general at local level, and the knock-on effect this has can be damaging to the wider business performance. When this process is scaled up to international level, the complexities are multiplied, so the potential for onboarding failures and its damaging domino effect grows. It is therefore important that all managers are briefed not to underestimate the importance of getting onboarding right.

This drive for consistency and coherence, however, must be tempered by consideration for the traditions and values of the different cultures a business operates in. If managers are properly trained to implement these processes while bearing these cultural factors in mind, there should be no effect on the workings of the business at all.

Getting The Basics Right An internationally dispersed workforce throws up many practical challenges, and reinforces the need for strict adherence to rules and protocols. Even basic administrative tasks can become logistical headaches when a company grows internationally. Language and time differences must be overcome; different public and religious holidays must be worked around; even the working week can vary from region to region. But these are all difficulties that can be overcome provided they are tackled from the very beginning. Once the initial period of transition is over, these will cease to be International HR Adviser  Spring

challenges and will simply be features of the working business.

Balancing Local Difference And Global Strategy When devising incentives and benefits packages, make sure these are standardised and delivered fairly across the organisation. At each location they should be explained by management locally, but there should be no variation that could imply bias for one region over another.

In perfecting the interplay between local management and overall business strategy, it is important to ensure that every regional office understands their roles both as individuals and as part of the greater whole. By recognising the value of their work and the contribution it makes to the overall success of the company, these workers will feel a sense of engagement beyond the four walls of their office and across international borders.

Channelling Your Communications Broadly speaking, we can use two kinds of communication channels: either through a manager directly or through technology in the form of social media, company intranet, text and video communications, and so on. Don't be discouraged from using indirect communications like videoconferencing technology or intranet blogs and announcements - these can be done well and can still convey the human face of management.

Don't Lose The Personal Touch Of course, when it comes to more sensitive communication like that relating to pay and bonus schemes, or feedback and appraisals, one-on-one meetings are preferable. Especially when feedback is negative, there is no substitute for human interaction. In order for the employee to benefit from constructive criticism and not feel alienated, managers must handle these situations with tact. And engagement is not just a priority in the lower ranks of the business. If there are issues further up the management chain, a global workforce can make senior management relations tricky.

If important issues must be resolved, an international flight that brings a director face to face with a manager can be a sound investment in the long run.

The important thing to remember is to be consistent. Employee engagement is only truly effective if it can be sustained in the long run. Managers must be trained well, as it is they who will carry out this work on the ground.

A United Purpose When encouraging staff performance and commitment, it is very important to ensure that everyone is in step with the vision and values of the business.

This is not an easy task. It needs a sustained approach from managers, who must clearly explain the business objectives and communicate how everyone fits into the plan for their fulfilment.

They must help employees visualise the way their day-to-day work affects the bigger picture.

Without strict processes in place to underpin these best practices and maintain them in the longer-term, any progress made in this direction will be lost.

Engaging Till The End, And Beyond Employee engagement falls into 3 main categories: onboarding, learning and performance review. Each must have a system in place, but they combine to operate as a whole, covering the whole lifecycle of employee/business engagement.

And this lifecycle lasts longer than you might think. It should be remembered that employee engagement does not end when an employee hands in their notice, or even on their last day. Offboarding is arguably just as important as any part of the employee lifecycle. Fail to engage a staff member right through to the end of their contract and the company will not only put itself at a disadvantage when onboarding the replacement employee or organising a workload handover; it will also reduce its chance of re-attracting the outgoing person should the opportunity arise in future.

Engaging Through Technology Advances in technology have also made it much easier for businesspeople to work together no matter how far apart they are.

Video conferencing systems, cloud computing and SaaS solutions have all contributed to improvements in mobile working and in multi-location collaboration.

Engaging A Distributed Workforce International offices can work in unison on projects with minimal administrative hassle, and a mobile workforce is similarly empowered. When travelling or spending extended periods of time out of the office, employees need not feel isolated or disadvantaged in terms of their capacity to deliver a consistently high standard of work. Cloud-based systems will enable them to work on the most up-to-date versions of shared files and update their work seamlessly on the company servers.

This continuity is important at all times, but especially in the first weeks and months of an employee's time with the company, when they are finding their feet in the organisation. Thanks to video conferencing technology, they can remain visible when on the road by dialling in to team meetings. The effect this kind of technology has on employee productivity - not to mention morale - should not be underestimated.

Engage for results Companies live and die by their performance, the delivery of the service or product they provide and the financial results they

post as a result. Performance is driven by engagement which in turn is underpinned by training and development, and if this is not delivered effectively from the very beginning of the onboarding process, failure is a real possibility.

Effective employee engagement relies on training and development practices which speak directly to the needs of employees wherever they are in the world. They must take into account cultural differences while maintaining fairness across the board. And, just as employees undergo performance reviews, the company's training processes must be reviewed and improved along the way.

Engagement is the result here, but it is not the final goal. By engaging employees in these interactive HR activities, companies will foster an environment in which workers feel involved and valuable in their organisation. The importance of their work will be recognised and everyone - local workers and the wider business - will benefit from the development of a happy, engaged, productive and profitable workforce.

Nicholas Roi is the UK managing director at SilkRoad Technology, which has been providing talent management solutions globally since 2003.

Drawing on his years of experience in sales, operations and channel management, Nicholas has been instrumental in the expansion of SilkRoad into new and emerging markets with a strong focus on the development of strategic channel partnerships.

Nicholas has over 11 years' software experience and eight years' experience in the talent management and SAAS space.

Six of the last eight years have been spent as operational and country head.

Prior to becoming the managing director of the UK operation, Nicholas started the SilkRoad Australia and New Zealand offices in 2008 and has also served as the vice president of global channels and alliances, located out of the corporate headquarters in Chicago, reporting directly to SilkRoad's CEO.

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International HR Strategy

The Role Of HR In Global Mobility Increasingly the regional HR director for Asia Pacific for many large multinationals will be based in Singapore or Hong Kong. The individual concerned will probably be there on secondment and may even report in to a global head of HR who is either a global nomad or a standard expatriate. We have seen an increasing number of HR professionals going on assignment in the last 2-3 years – which is an interesting phenomenon and may suggest that HR professionals are at the vanguard of a global trend. A trend where organisations are increasingly seeking to involve HR in key business planning decisions, the development of strategy and are asking it to really experience global mobility, both from the point of view of an assignee and from the point of view of the business. This wave of HR assignments is the result of the global skills and talent shortage. HR skills and talent are both in short supply and therefore individuals have to be deployed wherever there is a need – on top of this the skills are required more and more because management of people has become crucial to business success.

In this article we will seek to outline the role of HR in the global deployment of talent. We will review the importance of mobility, the wider context for HR and the changing face of business globally. We will look at the drivers for change within HR and examine the extent to which mobility can be a catalyst for that change. We will specifically examine the global talent resourcing model and ask whether there is an effective way of integrating global mobility with business and talent objectives. Finally, we will look at the capability requirements for HR professionals operating within global mobility and ask how they can help deliver in this changing environment.

Strategic issues The Deloitte Strategic Moves Survey 2012 found that there is a consensus of opinion regarding the top strategic issues for organisations doing business on a global basis. Our survey of 200 multinational companies found that the top issues were emerging geographical markets, globalisation and increased competition. The management of global mobility is key to all three issues – and HR is key to the International HR Adviser Spring

management of global mobility.

Our survey also found that business leaders expect global mobility to address these top three issues, but that in most cases it is failing to do so. This points to a gap between the strategic direction of businesses, and the ability of global mobility to help execute this strategy. We have called this the global mobility island – and we feel that HR has a key role to play in building a bridge between the business and the island of global mobility. Mobility and HR also have a key role to play in filling the skills and talent shortages which are compounding the pain for large and small companies alike.

The businesses we spoke to had high expectations of global mobility functions – and in large part these were not being met.

Only 2% of professionals regarded their global mobility function as world class, and more than 70% of business HR stakeholders felt that global mobility was underperforming or needed significant investment.

Wider HR context For businesses operating in a multinational environment, the challenges of global mobility are mirrored in wider challenges for HR as a whole. In our recent Predictions for 2013, Bersin by Deloitte outlined the six main challenges affecting corporate talent and HR. These are (1) rapid business change (2) shift towards emerging markets (3) a borderless workplace (4) specialisation creating new career and job models (5) new styles of leadership and (6) the intense competition for talent.

In our Predictions for 2013 we argue that

Bersin by Deloitte, Predictions for 2013

these drivers will lead to changes within the HR, Learning & Development and Talent Management functions in terms of practices, structures, roles, management, tools, processes, data and systems – encompassing most of the ways in which HR interacts with the business.

These predictions relate to the wider HR context; however, global mobility is a key tool for organisations to deliver a globalised workplace, an agile business and an engaged set of employees.

A Globalised Workplace Globalisation impacts companies of all sizes. Our advisory board members told us that one of their top three talent issues is globalisation. Emerging economies have “emerged,” creating talent challenges similar to those found in developed countries. This is forcing companies (like General

International HR Strategy Mills, Ford, Qualcomm, Scotiabank and others) to question their global leadership and mobility programmes.

Our new research on global leadership shows that expatriate leadership programmes have to change. Organisations cannot “parachute in” talent easily. Now they should build local leaders who understand local culture but who still embody enterprise values. Fewer than one-third of large businesses say their leaders are prepared with the skills in global awareness and fluency, and global business acumen and understanding of other cultures to achieve their goals in the global marketplace.

Bersin by Deloitte, Predictions for 2013 Addressing the issues faced by HR both in terms of mobility and more generally is a key challenge for the organisations wanting to compete at the top level. Recent HR transformations have tended to focus on costs savings rather than building more agile, business driven HR functions. The Predictions for 2013 report identifies a number of ways in which companies can drive the change to a more business driven HR function. These include the following: • Move to more agile organisation with flat, transparent, integrated talent strategies • Have transparent global talent mobility with continuous development • Implement global leadership and encourage global mindset • Integrate talent practices, policies and approaches globally • Encourage specialisation of jobs and careers • Integrate talent acquisition and talent management • Invest in HR technology • Utilise analytics to understand the global talent issues • Give HR the training and skills to maximise the opportunity.

Many of these steps are intrinsically linked to global mobility – this means that companies really wishing to revolutionise their HR function need to take a careful look at their global mobility programmes.

The best global mobility programmes are the ones which deliver on all the points outlined above.

Global talent resourcing In the Strategic Moves 2012 report we outlined the case for integration of HR and mobility.

The survey showed that organisations identified a number of specific challenges for global

Top Global Mobility Challenges

Deloitte Strategic Moves 2012

mobility; not least that 66% of organisations thought the main challenge was “actively partnering with the business to effectively use global mobility”. The remaining challenges were split out as per the chart above.

Some organisations have sought to organise their global mobility function in a way to address both the challenges identified in the survey, and to drive some of the changes which facilitate a business driven HR. Organisations seeking to address the global mobility island have redesigned their global mobility approach to base both the strategy and the operations on global talent resourcing.

Organisations where global talent resourcing is at the centre of global mobility are able to avoid falling in to the operational quagmire of a purely process driven approach. In order to do this all their global mobility is managed by a talent acquisition team who are responsible for global resourcing. They are able to incorporate expertise from global mobility, recruitment, HR business partners and reward in order to deliver the right talent in the right place at the right time.

Using this structure companies are able to take control of their skills and talent management and direct their response on a global basis. This is underpinned by having an exact measure of the talent, skills and expertise within the organisation. Having this knowledge alongside the recruitment expertise and global mobility mindset allows companies to resource and manage their workforce on a global basis.

This kind of global talent resourcing model is best placed to satisfy the conflicting needs of talent supply and demand, and at the same time ensure that individuals are deployed in a strategic manner.

The approach relies on a robust support network of expertise, most of which will sit within centres of excellence, acting as points of contact for all global deployments. Behind these centres of excellence are the traditional HR areas of IT, service centres and local support.

The best global talent resourcing is able to fill the talent and skills gap for the organisation, and at the same time ensure that global mobility is more closely aligned to the business needs. Each talent resource request should be initiated by the business – and each one will have a pre-defined role, objective and business case based on their initial approach. Utilising talent acquisition agents to recruit the right candidates internally means that the supply and demand of talent is well balanced across the organisation.

As well as overseeing the core talent programmes the global resourcing team can incorporate other global mobility pockets.

The challenge is to build a global mobility network to support the global talent resourcing model. In our experience the approach for global mobility needs to be designed based on attributes, components, properties, focus – and ultimately the overall strategy. In this case the strategy is to deliver

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International HR Strategy a global mobility function closely aligned to the business, via a global resourcing model.

Each of the building blocks needs to be designed with that overall strategy in mind.

This is illustrated in the diagram above which shows the different elements and their interdependence.

Capabilities In the Strategic Moves 2012 survey we asked whether global mobility can close the gap. Our initial concern was based on the fact that so few organisations viewed themselves as being world-class in deployments (2%). We mapped out three steps in order to align global mobility to business and talent strategies as follows: 1) Agree on strategic purpose of global mobility 2) Understand the value proposition of global deployments 3) Enhance the use of mobility data analytics.

Furthermore we outlined the fact that new capabilities would be required in the medium term in order to address the need for alignment with specific business priorities such as M&A, high growth, emerging markets, new technologies and talent. We argued that the capability requirements would be a function of the investment in global MI technologies and of the strategic talent investment.

Ultimately there are other more tangible capability requirements. If companies want global mobility to support the global aspirations of the business they need to ensure that they can provide an excellent

customer experience for both the business and the individual being deployed.

The customer experience for both the assignee and the business is very dependent on the knowledge and expertise of the HR professionals involved in mobility. In some organisations local HR are closely involved in all assignments, transfers and visits, whereas in other organisations this is all managed by specialist mobility teams. In either case the HR individuals who are part of the process will need to understand mobility concepts, compensation models and basic compliance risks.

In the global resourcing model we outlined above mobility professionals are positioned at the heart of the resourcing.

Although this reduces the reliance on HR in setting up the assignment, there is still a requirement for the HR business partners to understand the concepts, compensation and compliance issues. There is therefore a need to ensure that HR professionals involved in mobility have the skills, experience and training to be able to manage the complex cross-border issues they may face. Even where the mobility function is fully integrated in the process, HR still needs to identify the issues and facilitate the correct conversations. On this basis we recommend that all HR business partners are trained in mobility issues.

provide a key link to expansion. Despite the strategic importance of mobility there is often a gap between the operational focus of the mobility function and the business and talent strategies. We have outlined how global mobility fits within the wider HR context, and how it can become more aligned to the business. We have explored a model of global resourcing and gone on to outline the capabilities required of the mobility function and of HR professionals.

Equipping HR professionals with the right skills, ensuring that they are trained in mobility concepts and helping them to have business driven mobility conversations will allow companies to bridge the mobility island and be more focused on business objectives.

To download a copy of the 2012 Strategic Moves report go to www.deloitte.com/ strategicmoves. If you would like to take part in the 2013 survey please let us know.

Our sixth annual Strategic Moves Conference will be held in London on Monday 11th November 2013 - details will be available on the website in due course.

The role of HR in global mobility As growth is increasingly centred on emerging markets and globalisation we see companies relying on global mobility to

Andy Cowen Andy is a senior manager in the Deloitte Global Mobility Transformation group in London.

Deloitte LLP Tel / Direct: +44 (0) 20 7007 0984 acowen@deloitte.co.uk

Robert Hodkinson Robert leads the Global Mobility Transformation group at Deloitte in London.

Deloitte LLP Tel / Direct: +44 (0) 20 7007 1832 rhodkinson@deloitte.co.uk International HR Adviser  Spring

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Risk Assessments

Clear And Present Danger When organisations are expanding their operations abroad, there is lot to take into consideration; mass uprisings being only one potential danger in less stable environment. In the warning list are also kidnappings, natural disasters, pandemic diseases and detentions.

The first thing any organisation and employee should be doing is making sure both parties are aware of the dangers.

With social media playing an increasingly larger role in today’s world, in particular, political and security conditions can change extremely rapidly.

As the new emerging markets are attracting more corporations this has resulted in an increased size of assignee population in high-risk locations. This creates new challenges for the organisation and the onus is on the company to prepare the assignees before the move thus enabling preventative measures to be taken to avoid dangerous situations. It is imperative that the assignees are fully briefed to ensure their safety when working abroad.

How to get prepared for assignment to high-risk locations Corporate Duty of Care The best employers are committed to staff safety and security. All levels of these organisations aim to integrate security in ways that are relevant and user-friendly.

Hence good security management is about good programme management - it enables people to work safely and securely.

Companies who are pro-active with risk management are better positioned to deal with crises which results in safe and secure working practices. Experience shows that this is beneficial for all stakeholders.

The five key principles for good safety and security management within a company are as follows: 1. Provide leadership, guidance and resources to ensure that staff safety and security concerns are addressed 2. Adopt a systematic approach towards identifying safety and security risks and recommend suitable preventive and controlled measures 3. Build staff capacity so that employees are empowered to take personal responsibility for their own security 4. Read, discuss and understand your company’s Safety and Security Policy 5. Provide practical help and assistance to International HR Adviser Spring

all staff.

Companies should view staff safety and security as one of the first and foremost concerns in their daily operating life. Instability and uncertainty, both economic and political, makes it imperative that the company has measures in place to ensure the safety and security of their personnel (both expatriate employees and locally employed staff ) and their physical assets and resources.

Safety and security management is a collective responsibility within an organisation. All employees need to participate and be involved. The ultimate responsibility lies with the directors of the companies who are legally bound to ensure that the company exercises a Duty of Care towards all staff in these matters. Managers are responsible to ensure that their workforce is adequately prepared and equipped to manage the risks they face when undertaking the daily tasks.

The individual employee is responsible to take all necessary steps to secure his/her own safety.

Any company when establishing operations abroad, has to have acceptance by the local population. If the company is known and valued by the local communities, it is less likely that they will be victims of security incidents. This is more than just being a good employer. Where there is a doubt about acceptance within the local community or where there are particular threats against the company or similar organisations from terrorist or radical groups; or where criminal threats affect the general population, protective security measures are essential.

Whatever the precautions the company takes, the protective measures used should be proportionate to the assessed risk in each location, otherwise the security precautions themselves may in fact make the company more likely to become the target of hostile activity.

Assessing possible risks A risk assessment should be carried out in any new company locations before sending any assignee to potentially insecure operational areas. Once the risk assessment is carried out the company can adapt/create their safety and security policy accordingly. The security risks can be categorised as follows: • Category 1 – Minimal Risk

Countries in this category have an exceptionally low crime rate and efficient crime prevention and emergency services • Category 2 – Low Risk Countries in this category typically enjoy a stable political system and relatively good internal security and emergency services infrastructure.

Threats from terrorism, crime, civil unrest, some minor insignificant and isolated incidents, curfews and riots, are typically moderate and are generally mitigated by the capabilities of internal security agencies • Category 3 – Medium Risk This category applies to countries with high crime rates or problems within the country due to current political, economic, military or social problems, or indeed a natural phenomena. It means that there is no immediate danger to expatriates, but that background security problems have increased. The company can continue operating, however, it may be necessary to restrict travel to some areas, and other restrictions such as a curfew may be in place. In these countries/locations there can be minor clashes between armed groups without civilian casualties. Expatriates can be affected accidentally but no injuries • Category 4 – High Risk Countries in this category typically suffer instability and lawlessness. When a country is designated in category four the company can operate as normal during the office hours. It may be necessary to suspend the company’s work completely in some areas and to evacuate non-essential staff from country if the situation worsens. Characteristics can be as follows: escalation of armed conflict, major clashes between armed groups with civilian casualties, communal violence affecting civilians directly and serious but isolated attacks on civilians in the capital • Category 5 – Extreme Risk Countries in category 5 may be engaged in civil or transitional conflict; government control is minimal, non-existent or threatened; violent transformation of the government is on-going through military coup or revolution. Corruption is typically ripe and the state has failed or threatens to fail.

When a country or region is declared category 5 staff evacuation should take place

Risk Assessments as per the company’s evacuation plan.

Characteristics includes, but are not limited to, breakdown in law and order, repeated attacks on civilians; deliberate, repeated attacks on expatriate staff; full scale armed conflict in most districts.

How to prepare for the assignment?

Specific Safety and security training is designed to build confidence by helping assignees and their families identify and deal with potential threat. This can be done by training them in strategies for risk prevention in a range of situations.

The preparation starts with consulting of current political situation in the destination country as well as identifying the perceived risks in the area.

It’s important to give the employers the tools and knowledge as how to prevent dangerous situation in everyday life.

Some of these include but are not limited to the following: • Kidnap avoidance • Detention avoidance • Journey planning • Property security.

Employees may get detained or abducted for a variety of reasons. Detentions may be the result of an alleged crime committed (for example car accidents), likewise kidnaps may be the result of politics, terrorism, ransom or a combination of these reasons. Sometimes the motives may change, for example, hostage situations may start out as politically motivated but it may turn into a ransom kidnapping.

This is why it's vital for a company operating in high risk areas to have Kidnap and Ransom insurance for their staff.

Regardless of the reason, most detained persons and hostages stand a good chance of surviving the ordeal and being released.

Worldwide, 90% of kidnap victims survive, which is not to say that they don’t have physical or psychological injuries to cope with afterwards.

There are numerous preventative actions the employee should take to avoid any situations as described above; from carrying mobile phones, communicating your travel plans to your manager – and to anybody else only on a need to know basis.

It is very important that when arriving to new destination the employee will try all the emergency phone numbers to see that they are working and also store them to the mobile phones. An expatriate should never comment on cultural differences and respect the local customs. Also, as soon as

possible the employee should stop driving a rental car as less attention is attracted.

One should always feel safe at the property. It’s advisable to live amongst other expatriates for heightened security measures provided by property company. Common sense should always be used whether local or expatriate this means keeping gates and doors and windows locked. In addition to this it's important to make sure the spyhole is covered, since it works both ways i.e. you can see inside the property from the outside by using very common tools.

In summary the expatriate together with the employer should always take the following 3 key action when preparing for the assignement: • Analysis: Analyse and understand the risks related to security in destination country • Avoidance: Understand ways to help expatriate staff to avoid the risks of security while working in foreign countries • Prevention: Give the expatriate training to enable them to prevent entering/creating high risk situations.

Doomsday Scenario: Should the worst happen, companies need to have a business continuity plan that will allow them to pull staff out of affected areas and enable them to carry on trading as best they can. Whether – and when – a company decides to bring people back depends on the exact nature of the work and how things have changed since they were posted there.

Companies in the majority offer the individual the option of coming home because some people are affected in different ways to others. If the risk assessment is such that the company feels employees need to be exfiltrated, relevant action will be taken to ensure this happens.

Summary: Ultimately, employers have both a legal and moral duty to take care of their staff. Companies can face paying out substantial sums in compensation if an employee suffers injury or death as a result of their failure to take reasonable steps to ensure their safety.

This can be mitigated by ensuring employees are given hostile environment training, relevant security briefings, personal protective equipment, appropriate medical advice and vaccines, private security personnel and transport arrangements, insurance and relevant embassy or consulate details.

It is also a good idea to make employees sign a contract, ensuring they will receive hostile environment training or have the experience and qualifications that would make this unnecessary, although this would not exclude or restrict liability for negligence.

HR has a pivotal role to play in working with other departments to attempt to find a solution that suits all. Security briefing and training needs to work in terms of helping to facilitate the company's understanding of how it can operate in those markets, rather than preventing it going into new markets because a risk assessment has not been undertaken.

Mima Hillier, Managing Director TTH Relocation Management Telephone +44 (0)1491 874322 Email: mima@tth.co.uk Mobile: 07798 601231, www.tth.co.uk After graduating from Tampere University, Finland with Masters in Business Science, Mima worked and travelled widely in Europe - lived, studied and worked in Germany and Sweden. She settled in London in 1990 before moving to Dallas, Texas as an expatriate. On her return she set up TTH Relocation in 1996. In 2002, many years after graduating from University, Mima enrolled to MBA course in Henley Management College (now part of Reading University).

Mima has been very involved in the Industry on all levels: 2000 she joined the ARP (Association of Relocation Professionals) as council member and became the Chairman of the association at 2004. During her chairmanship (2004-2007) she also represented the UK in the EARP (European Academy of Relocation Professionals). In 2008 Mima was short listed Relocation Personality of the Year in RE:locate awards.

TTH Relocation is providing safety and security training for assignees as well as safety and security consulting and policy creation for corporates.

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Compliance in Global Mobility

The Growing Challenge Of Compliance In Global Mobility I have been involved with Global Mobility for a number of years and in that time I have seen significant changes in Global Mobility, not only in how the work is administered through revised process', structure and technology platforms, or how entitlements are governed through policy adaptations and revisions, but also in how the profile of the function has risen given changing priorities. I have witnessed a significant shift from Global Mobility being perceived as an administrative function to having a more fundamental key strategic footing in the organisation. I am seeing a visible shift in the perception of Global Mobility from being a commodity in purely manage logistics to being recognised as a technical profession in its own right and one which can have major implications to the organisation if Global Mobility does not operate at the level it should be or be given the tools to deliver and the benefits it can bring to the organisation if recognised accordingly.

The implications of Global Mobility not delivering can be far reaching:• From failing to deliver a good quality experience and adequate protection for the organisation’s talent resource • To impacting the businesses in which the assignees operate in, by either delayed assignments, impacted assignments or distraction from the core business drivers and goals • To the organisation as a whole through reputational risk and potentially direct costs through incurred penalties.

It is the area of managing risk and compliance within Global Mobility that I want to concentrate on and review why this is fast becoming a key growing challenge for Global Mobility.

I do believe there are a number of contributing factors in why international compliance is a growth area: The economic downturn - is serving to put pressure on both countries and companies alike to invest in growth markets, generate revenue and cut expenditure in order to survive or maintain market share.

As a consequence there is a combination of contracting markets and expanding markets but also an environment where organisations have to react to threats and opportunities immediately before the opportunity is lost. National priorities are competing against international priorities and there can be conflicts between local, regional and global considerations. There is also a strong focus on cost reduction or containment. There is a tangible fear of decline and stagnation and a hunger for revenue. All this serves to raise the requirement of Global Mobility to be:• Timely • Proactive • Efficient • Cost-effective • Compliant Global connectivity - the world is getting smaller with technology and media sites bringing news and information to the fingertips of everyone. Culturally we are more open to travel and migration is set to double by 2050 despite the economic downturn. The global awareness of everyone continues to grow and so is the accessibility of best practices, laws and regulations. Governments and country regulatory bodies are more connected than ever before and are openly sharing information both with their counterparts in other countries but also across related departments. We have tax authorities coordinating with immigration authorities; accountancy organisations expanding into areas that manage key data or linking with departments or other third party providers that hold source data. We have legal and compliance functions working together to guide and give instruction on national regulations and on cross-border data compliance.

The commercial concept of globalisation - has been a trend for many years.

Many international organisations are on a programme to globalise their environment, infrastructure and operations in some form or other. It is becoming a necessity for most organisations to expand into the export market. For most

organisations to survive and be more cost-efficient they either have to explore international markets or international operations or have an international supply chain. Companies are constantly seeking new emerging markets for cost containment purpose and to keep a competitive edge. Many international companies have embraced the concept of the shared service model to centrally deliver operational processes for the benefit of the global organisation.

The end result is that organisations are becoming more spread geographically, with matrix operations, infrastructures and management structures. Although this trend may have commercial logic it does pose greater risks and compliance demands on the organisation. Crossborder compliance is no longer between six key developed locations but is now potentially between fifty plus locations (depending on the size of your organisation) from developed to emerging, emerging to develop and emerging to emerging market combinations.

Technology - is an enabler to build global connectivity. Today technology is not only at our fingertips but is an essential building block for connectivity for any global operation. It does allow data and information sharing to take place immediately and round the clock. Changes in regulations, sharing of best practises can be achieved with relative ease. But this also gives an expectation that: • All corporations will know and understand the regulatory framework in which they operate in • All corporations will be able to have access to any data on their employees and their operations immediately • All corporations have the reporting functionality to deliver any request for data and to be able to audit and cross reference that data with ease to ensure 100% accuracy.

International compliance, compliance demands that organisations can and will be compliant and if they don’t they lay the risk of having severe penalties applied.

Technology also has served to increase the Spring International HR Adviser

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Compliance in Global Mobility pace of change which is another challenge from a compliance perspective. Building the capacity and skilled capability in an organisation to meet the growing requirements to operate internationally and be compliant in all areas takes time and is a risk in itself.

So what does this mean for Global Mobility professionals? What should we be considering for the future?

of home and/or host social security applications and payments are being made • How good is your knowledge on countries operating worldwide income tax regimes • How good are your systems to effectively collate all the required information to report and deliver cross border compliance?

assignee needs to have the correct tax and social security liabilities applied to them. For Global Mobility it is how effective we are at collating and recording this data to be able to extract what is required to meet the regulatory requirements in host and home locations. There are so many multiple compensation delivery points which need to be mapped and governed.

• The local regulatory environment , whether it be for tax or immigration, is becoming a key focus and the regulations are forever changing and becoming more complex. It is important for the Global Mobility professional to understand the changes occurring within each country and assess the implications for both our outbound and inbound assignees and for the businesses operating within the organisation. Some questions to consider are:-

• Risk awareness is fundamental. It is important for organisations to understand the risks and these can come in many forms from direct penalties to the organisation for a compliance breach, to impacts to your assignee population which may be the talent of your organisation, to impacts on the ability of a business to operate and satisfy its key deliverables and finally reputational risk to the organisation for being non- compliant.

• The technology platform needs to be viable from a compliance perspective and especially in terms of how it’s used, for what purpose, and the appropriate links and dependencies with the data flows. Questions for consideration are:

• Are the changes going to impact the policy, processes and structure of the organisation • What are the dependencies, the risks and the costs • Is the local regulatory change in one country going to block the global policy, process and structure • Who needs to be communicated to • Who is going to be impacted • Who are your stakeholders • Which outsourced third parties need to be advised • How do you keep up to date with changing reporting and withholding rules in a large number of jurisdictions • Cross-Border implications are becoming more complex and diverse and need to be understood and actioned. Host reporting requirements and home reporting requirements, and the necessity to do shadow payroll need to be realised. Some questions to consider are: • How robust whether the of pension being made • How robust whether the

are your checks on correct application arrangements are are your checks on correct application

International HR Adviser Spring

• Data quality and management is essential to ensure robust compliance especially for a global infrastructure.

Compliance relies on effective and timely reporting, therefore the management of data needs to become a key focal point for Global Mobility. Questions to consider are:

• Is the data linked to the workflows • Is the terminology correct and clearly understood by all users • Is the reporting functionality sufficient to meet your compliance reporting needs • what audit controls exist?

There is a balancing act to be performed between automation and precision or finding the optimum hybrid approach.

To have good global compliance, data need to have its own workflows and be managed as closely and with the same intensity as we do for our assignee population.

• The interaction with third party suppliers in delivering compliance is also critical. What information is passed through to the supply chain and how to keep the data source whole and accurate and what information is returned back to the organisation is a key element. The ultimate responsibility of compliance will always be the employers’ responsibility, therefore where Global Mobility outsources there is still a need for audit and governance around the data and how it is being used. Having oversight on how the data is governed by your third party supplier is critical.

• The management of compensation data is critical for compliance in Global Mobility which is inclusive of all forms of compensation from fixed pay, variable pay, deferred compensation, home entitlements, pension contributions, share awards, cash benefits and benefits in kind and all from an employer and employee perspective.

All categories of compensation need to be identified and coded correctly for tax and social security treatment in both home and host locations. The

• The Global Mobility interface with your payroll department (s) is another key consideration. Payroll structures vary from one organisation to the next and can be either inhouse or outsourced models. From a compliance perspective there are many considerations and challenges in managing payroll for international employees with many nuances making it difficult to streamline and automate the full process. Many countries require reporting for

• How is your data managed to ensure quality and accuracy • Where is it stored and is it secure • What processes impact your data and therefore how are you governing and auditing the data input, parameters and its use?

Compliance in Global Mobility expatriates who may not be paid in the current country in which they are working but are still employed there (e.g. USA). Shadow payrolls may have to be administered in the employees home location even when the benefits are paid 100% in the current host location, but either need to protect benefits in the home country or have a reporting requirement in the home country. Payrolls are the end recipient for most data and therefore the key challenge is collecting the required data and inputs from many sources. How does Global Mobility facilitate this feed into payroll and how do you manage local payroll knowledge gaps in cross border compensation and benefits? • Complex Global Mobility processes add to the challenge of ensuring compliance. For example the correct reporting of bonus and equity awards for cross border employees is a complicated process with a high compliance requirement and the accurate reporting and withholding on

compensations earned over multiple years and sourced to multiple jurisdictions (trailing liabilities). Typically these payments are apportioned between locations and the application of the rules varies between locations.

Likewise different locations operate different rules relating to retrospective reporting across tax years. Understanding which processes have a compliance requirement and assessing each stage

to ensure robust audit controls, clear governance and accountability over the delivery is key.

As a lasting thought compliance in the world of Global Mobility is more important than ever and will continue to be a driving force for some time to come. It really is a growing challenge and one that Global Mobility needs to own.

Tracy Figliola Global Head of Global Mobility, HSBC Group.

Responsible for the strategy and operational delivery of the Global Mobility global platform, executing the Group's Global Mobility Programme across all business entities in the Bank and a Centre of Excellence for the delivery of Global Mobility within the Group. The HSBC Group has in excess of 1,700 international assignees, across 71 countries managed through three regional hubs covering ASP, EMEA, AMERICAS and a central operations team based in India.

Tracy has extensive experience and knowledge in the global mobility field. She played an integral part in the first HSBC’s global mobility transformation initiative in 2009 which resulted in new global process, structure and systems and is currently driving future change for Global Mobility in the bank.

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exploring The Value Proposition Of The Global Mobility Function

Exploring The Value Proposition Of The Global Mobility Function Over the past two decades there has been increasing focus on the need for HR transformation within organisations that is reflected in a shift from a traditional transactional orientation to playing an increasingly strategic role.

The aspiration to become strategically focused and value adding in organisational terms arose in the 1990’s with authors such as Ulrich and Brockbank becoming some of the more well known and influential, arguing that HR professionals “need a mental model of the value you create, and should constantly be assessing yourself against that model both formally and informally.”

However, the evidence suggests this aspiration has not been realised in the vast majority of organisations and HR remains a cost proposition in many of these organisations. The same holds true for corporate Global Mobility functions, which are predominantly seen as overheads rather than as creators of value. This can, and we argue should change. However, to ensure that organisations understand and tap into the full potential of their Global Mobility team, global mobility must actively engage in the process of (re) defining the function in value terms. For any Global Mobility function to contribute to business success, it needs to consider, for example, the following questions: • How does global mobility contribute to strategic objectives of the organisation?

• How does global mobility fit in terms of organisational value creation?

• What strategic objectives are your Global Mobility function trying to achieve?

• In what way does GM practices support employee engagement and performance?

• What can you measure to evidence the value you create (or could create) in managing the global mobility process?

At a time when global talent mobility is emerging as a matter of strategic focus for more and more business leaders, it is imperative that Global Mobility professionals bring their expertise to the table.

With the complexities associated with selecting, deploying and managing international assignees, who else is as well qualified to help organisations realise International HR Adviser Spring

competitive advantage in this area? If Global Mobility professionals do not get engaged in strategic discussions around global talent mobility and demonstrate the potential strategic value to offer the business, then they will be in danger of being sidelined and as with all costs, managed down wherever possible.

Alternatively, they can step up to make a real difference.

While one of the challenges that Global Mobility professionals face is demonstrating the value it offers to the business, there is little hard evidence to support the claim that the Global Mobility function contributes to business success.

This is reflected in the challenges that most organisations face in articulating the return on investment of global mobility.

Arguably, armed with the right type of evidence the voice of the Global Mobility function will be harder to ignore for business leaders.

One of the key pieces of evidence available to HR functions is a survey of employee attitudes (e.g. Google has publically stated that it uses evidence and data in all its HR decision making and that its’ employee survey is the most important dataset it has). However, most employee surveys are ill thought out and are unable to provide the nature and breadth of strategic insights they should. Additionally, employee surveys do not explicitly accommodate international assignees. They are unable to shed much light on some of the key issues affecting employees who move internationally. For example: • What type of assignment or assignee yields the best performance?

• How does adjustment to a host location impact wellbeing and employee engagement?

• How do perceptions of career support relate to organisational commitment and intentions to remain with the employer?

• How important is family support to commitment, engagement and performance?

• To what extent do assignees “go native” and is this important?

• How does international experience add to perceptions of an assignee’s own capability and marketability?

In an effort to supply quality evidence and insights around these kinds of questions, AIRINC and King’s College London (KCL) have launched a unique and rigorous survey measuring the attitudes of international assignees. The International Assignee Attitude Survey aims to provide insight into the impact of an international assignment on key employee measures such as employee engagement and performance. The intent of the survey is to help participating organisations to track ROI and improve retention, align mobility to talent management, and achieve mobility improvements that can add significant value to organisations’ Global Mobility programmes.

The first pilot phase of the survey will run until April 2013 after which the survey will be ongoing for participant organisations. Already, the first datasets are starting to reveal some fascinating insights, which should be of real value for organisations and global mobility teams.

For more information regarding the International Assignee Attitude Survey, please contact: Stuart Woollard, King’s College London, stuart.woollard@kcl.ac.uk i The HR Value Proposition (2005), Harvard Business Press

Helena Wennberg is a Research Associate with the joint AIRINC and King's College London International Assignee Attitude Survey project. Since 2007 she has held in-house Global Mobility specialist roles within Statoil, Sandvik Tooling and Maersk Oil. Stuart Woollard is Director of King’s College London's Management Learning Board; is Director of the King's & Cornell University's International HRM Academy and is a council member at the Institute of HR Maturity David Collings is Professor of HRM at Dublin City University and Visiting Professor of HRM at King’s College London

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GLOBAL taxation

Global Taxation Update Belgium Changes to taxation of non-residents Following new legislation issued in December 2012, changes have been introduced to the taxation of non-residents in Belgium.

The defining of taxable income As of 1 January 2013, when a tax treaty provides authority to tax to Belgium, Belgium will be able to tax non-residents on all income components taxable under Belgian income tax law.

When no tax treaty is in force, a nonresident who renders services to a Belgian resident or Belgian establishment, and who cannot prove that the income derived from such services has been or will be taxed in his country of residence, will be taxable on that income merely because the receiver of the services is a Belgian resident.

If, because of this, one becomes taxable in Belgium, one may also be liable for Belgian withholding tax. Such liability requires payroll formalities in Belgium.

Permanent establishments Terminology used in Belgian legislation has been modified to increase conformity with the international treaties and the concept of a ‘service permanent establishment’ has been introduced.

A ‘service permanent establishment’ exists when a foreign company renders services in Belgium for one or more related projects through one or more individuals who are present in Belgium and who render these services for periods of time which exceed or will exceed 30 days in total in any period of twelve months.

As a result of this new concept, Belgium can tax income derived in Belgium when according to a tax treaty Belgium is authorised to tax income derived by a permanent establishment in Belgium, but technically there is not a classic “material or personal” permanent establishment present in Belgium. Such a ‘service permanent establishment’ can exist because of the presence of a non-resident in Belgium, but also because of a Belgian resident who works from home in Belgium for a foreign company. Consequently the income that can be appointed to such a ‘service permanent establishment’ will be taxable in Belgium and liability for Belgian professional withholding tax on employee income may arise.

International HR Adviser Spring

Taxability in Belgium of salaries paid to non-residents As of 30 December 2012, all salaries paid to non-residents where the financial burden lies directly or indirectly with a Belgian resident or Belgian establishment of a foreign company, will be taxable in Belgium for the work physically performed in Belgium.

A new development is that salaries which financially burden a Belgian resident or Belgian establishment of a foreign company indirectly will be taxable in Belgium.

For example, if personnel from a foreign company is put at the disposal of a Belgian company, but the salaries are still paid by that foreign company and then billed to the Belgian company, those salaries will be taxable in Belgium for the days of physical presence in Belgium because they will be considered to indirectly be paid by the Belgian company.

Another example would be where personnel of a foreign company works for the Belgian permanent establishment of the company, but isn’t remunerated by the permanent establishment. The permanent establishment doesn’t deduct remuneration expenses, but instead deducts internal service fees to the head office for ‘services’ provided to the permanent establishment by the head office. Because of this, the personnel will be considered to be remunerated indirectly by the Belgian establishment and their remuneration will therefore be taxable in Belgium for the days during which they were physically present in Belgium.

BDO comment These new measures could have an impact on those employed or otherwise professionally active in Belgium due to international mobility and appear very similar to HMRC’s ‘economic employer’ concept.

Israel Tax authority issues clarification on residency The Israeli tax authority issued a circular on 13 January 2013, in order to clarify and improve procedures regarding tax residency status approvals for "New Immigrants" and "Veteran Returning Residents".

Following amendment 168 to the Israeli Tax Ordinance (ITO) substantial tax benefits were granted to individuals who were considered as "New Immigrants" or "Veteran

Returning Residents". As a result of these amendments, many applications were submitted to the Israeli Tax Authorities (ITA) by individuals seeking approval of their particular status. Following the uncertainty and incoherency in the manner of obtaining approval to such applications, the ITA issued a circular aimed at addressing these issues.

The circular establishes two routes (the "Green Route" and the "Individual Route") to receive tax residency status which will be determined according to the particular individual's "centre of life test". Application for such approval from the ITA is available both for individuals who have not emigrated to Israel yet but are planning to do so, and also for individuals who are residing in Israel.

The Green Route – this route is for those individuals who have minimal ties to Israel. These individuals will receive their status approval under an accelerated process. Should the tax assessing officer not approve the requested residency status under this route, the individual will still be able to seek the approval via the Individual Route. Under the Green Route, the individual must meet all the conditions of either of the following two alternatives detailed in the relevant form relating to the days spent in Israel in a period of 10 years prior to his immigration, social security rights, medical care and other conditions. The individual applying for residency status approval under the Green Route must, inter alia, declare in the relevant form; the day he arrived in Israel, that he has met all the conditions required (whether under either of the alternatives) and that all the information filled out in the form is correct. In addition, the individual must attach all relevant documents as stated in the form.

The Individual Route – this route is for those individuals who have more substantial ties to Israel. These individuals will receive a residency status approval after a thorough review by a tax assessing officer.

Following this circular, it would appear that the stringent conditions of the Green Route denies residency status as "New Immigrants" or "Veteran Returning Residents" for those individuals who preserved their social security rights in Israel even if they did not maintain a permanent home in Israel and did not reside in Israel for even a single day prior to their emigration to Israel.

global taxation Alternatively, new immigrants who visited Israel in the past for long periods will also be denied the residency status through the Green Route. Nevertheless, those individuals can seek their residency status approval through the Individual Route.

It should be noted that these residency status approvals are not considered as a Certificate of Residency for the purpose of benefiting from Israel's double taxation treaties which are usually given only after the individual proves a change of his "centre of life" to Israel and fulfils other criteria.

BDO Comment Such clarification is welcome.

Singapore How to deal with tax administration!

The tax authorities in Singapore have announced that only 40% of taxpayers appear to need to file an annual tax return as the remainder is eligible for the NoFiling Service. Those who still have to file will have received a notification informing them to file paper returns by 15 April 2013 or via the website by 18 April 2013.

These taxpayers will also have to file a tax return this year, even if their employers have sent their salary details to the tax authorities under the Auto-Inclusion of Employment Income Scheme.

All individuals who are tax resident in Singapore will receive a personal income tax rebate for the 2013 assessment year.

However, they do not need to apply for this as the authorities will automatically incorporate the rebate within their tax bills.

BDO comment If only all other tax authorities were as efficient and had tax rebates to share!

Spain New Reporting Requirements for Assets and Rights Situated Abroad In October 2012 the Spanish Government incorporated into legislation new rules on reporting requirements for assets and rights situated abroad.

The main consequences of these rules are as follows: Those required to file an annual report are legal entities and individuals resident in Spanish territory, permanent establishments of non-resident legal entities located in Spanish territory which hold any of the assets and rights situated abroad.

This reporting requirement is extended to those who hold any of these assets and rights at any time of year, not

only at 31 December of that year. In these cases, the information to be provided shall correspond to the date of departure.

There are three categories of assets and rights for which certain information must be submitted to the Administration in the annual report, which must be filed during the first quarter of each year. It is important to note that the first period subject to the new reporting requirements is the 2012 business year.

• Accounts in financial entities situated abroad: Information is required to be submitted on current and savings accounts, deposit accounts, credit accounts and accounts or cash deposits of any other nature, irrespective of the type of account or name used to describe it, even if such accounts are non remunerative. The annual report must be filed both by the account holders themselves and by any representatives, authorised persons or beneficiaries of such accounts. The reporting requirements extend to any party or parties meeting any of the descriptions given above as at 31 December or at any time during the year to which the report refers. The information to be submitted should include: the name of the financial entity, identification of the bank accounts, dates on which such accounts were opened or closed, the balance on the account as at 31 December of the year reported and the average balance for the last quarter of that year.

Where individuals have ceased to be regarded as taxpayers during the year, they shall indicate the account balance on the date on which they ceased to have that status • Securities, rights, insurance and income deposited, managed or obtained abroad: This category specifically includes the following securities owned by the reporting party as at 31 December or at any time during the year to which the report refers: • Securities or rights representing a stake in any time of legal entity • Securities representing the assignment of equity to third parties • Securities contributed for their management or administration to any legal instrument, including trusts or any other type of wealth management bodies, whether legal entities or otherwise, which may have an impact on financial trade.

The information to be submitted should include: identification of

the company, the number and type of shares or securities and the value of such shares or securities.

Where individuals have ceased to be regarded as taxpayers during the year, they shall indicate the value of the assets at the time they stopped having that status.

On the matter of insurance and income, reporting requirements go as far as to include life assurance or disability insurance of which the parties required to report are policy holders, and also any temporary income or annuities of which they are beneficiaries as at 31 December of the year to which the report refers. Details of the insurance company or companies must also be included in the report.

• Real estate and any rights thereon: The report must include identification of the property (type of property), its location and the date and value of acquisition.

Those who have ceased to be regarded as taxpayers during the year shall indicate the transfer value of the property.

It is important to note that assets or rights not exceeding 50,000 EUR in any of the three categories mentioned above are exempt from this requirement.

Assets recorded individually and in sufficient detail in business accounts are likewise exempt to be reported if such assets belong to private individuals carrying on a business activity, companies and other entities resident in Spanish territory, or permanent establishments in Spain of non-resident parties.

Filing period The period for filing the annual report is from 1 January to 31 March of the year following that to which the information relates. However, the obligation to provide information on assets and rights situated abroad for 2012 must be submitted between 1 February and 30 April 2013.

Reporting in successive years will only become compulsory if there is a variance in value exceeding 20,000 EUR in any of the three categories mentioned above. In any case, it is compulsory to submit the report when one ceases to be a taxpayer during any time of year, normally when ownership has extinguished to 31 December.

Specific penalty regime A specific penalty regime has been established in the event of failure to report or for reports which are incomplete, inaccurate or contain false information.

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GLOBAL taxation • The penalty is 5,000 EUR for each detail or set of details referring to a particular asset or right which should have been included in the report or are incomplete, inaccurate, or false. The minimum penalty is 10,000 EUR. • For reports submitted beyond the timeline or by means other than electronically when the requirement is to use electronic means, the penalty will be 100 EUR for each detail or set of details referring to a particular asset or right.

The minimum penalty is 1,500 EUR. Failure to comply with reporting requirements may entail consequences with regard to Personal Income Tax and Corporate Income Tax, i.e. should the Internal Revenue Service discover or gain knowledge of the existence of assets and/ or rights abroad which the taxpayer has failed to report, these will qualify as “hidden assets”.

Assumption of unjustified gains In the area of Personal Income Tax, a new assumption of unjustified gains (which are taxed at a marginal rate) has been included, and which consists of the holding, reporting or acquisition of any assets or rights which have not been reported in the term provided.

In such cases, the legislator will assume that the unjustified gains were obtained in the last business year still open to audit and will therefore be subject both to the appropriate interest charges on late payment and a special increased penalty of up to 150% of the tax chargeable. All the above is without prejudice to the possibility of the taxpayer facing an accusation of tax fraud.

Notwithstanding the above, an unjustified gain will not be assumed to exist if the party required to report is able to prove that ownership of the assets or rights in question corresponds to the income declared or to income obtained in tax periods in which such party was not liable to Personal Income Tax in Spain.

BDO Comment Tax authorities around the world are increasingly looking to introduce measures to ensure that they are aware of a taxpayer’s assets and that any taxes due are collected. Do expect similar measures in other countries.

Sweden Changes regarding payment of Swedish social security International HR Adviser Spring

A change has been introduced to the social security payment routine for foreign employers without a permanent establishment in Sweden. The new rules came into force on 1 January 2013.

Swedish employers and foreign employers with a permanent establishment in Sweden, report and pay social security contributions on remuneration paid to Swedish employees by filing a payroll (PAYE) return once a month with the Swedish Tax Agency.

Previously, a foreign employer without a permanent establishment in Sweden could agree with an employee that the employee took over the responsibility to report and pay the social security charges.

Under this agreement the employee reported the fees in his/her Swedish tax return once a year. The employee was reimbursed by the employer for the social security charges paid since the Swedish social security system is wholly based on employer contributions.

Employees who operated social security reporting were regarded as self-employed for social security purposes. They were also subject to the social security rates applicable for self-employment income as compared to the standard rate for employer contributions, these contributions being slightly lower.

The changes mean that the possibility to enter into an “annual” social security agreement under the self-employed system as described above was abolished.

Instead the employee is required to register with the Swedish Tax Agency and report and pay social security monthly in the ordinary “employer contribution system”. This means that standard rates for employers will apply and that the employees will have to file monthly payroll returns. The employee should still be reimbursed by the employer for the social security charges paid.

Registration with the Tax Authority will be required within two weeks of entering into an agreement. A move to the new system is required in all cases.

BDO comment This will increase both the cost and administration for employers with individuals working in Sweden in such circumstances.

Prepared by BDO LLP. For further information please contact Andrew Bailey on 0207 893 2946 or at andrew.bailey@bdo.co.uk

Order Your Copies of

The 2013 Expatriate's Guide to Living in the UK For Your Employees Relocating to the UK - the leading Guide that your expatriate employees cannot afford to miss!

This annual Guide is in its 11th year of publication and is a handy source of information for your reference, and also for you to share with your expatriate employees, as they relocate to the UK, or prior to their UK relocation. The Guide offers invaluable information to expatriates of all nationalities on important matters whilst moving to, or living in the UK, including banking, driving, education, embassies & High Commissions in the UK, expatriate clubs, healthcare, lettings, pet transportation, serviced apartments, taxation, and travel.

Whilst you work hard to help your employees move to and settle into the UK, a number of their questions may well be answered in this Guide.

Enclosed with this issue of International HR Adviser, you will find your complimentary copy of The 2013 Expatriate’s Guide to Living in the UK. You can now order copies of the Guide for your employees.

There is a nominal fee to cover postage & packing, as follows: £10 for up to 15 copies (£15 for mailing outside of UK) £20 for up to 50 copies (£30 for mailing outside of UK) £40 for up to 100 copies (£55 for mailing outside of UK) To order your copies please send a cheque (made payable to ‘International HR Adviser’ ) for the quantity you require to Helen Elliott, 2013 Guide Order, International HR Adviser, PO Box 921, Sutton SM1 2WB. Please include the following information:

Full name, Company name, Number of copies required, Delivery Address, Telephone, Email.

Please email Damian on damian@internationalhradviser.com or telephone +(0)1737 551 506 with any questions.

Autumn  International HR Adviser

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Taxing issues

Taxing Issues: Expatriate Policies Types Of Assignment Our recent winter article focused on expatriate policies and this article continues the theme. It seeks to provide an overview of the different types of assignment that may occur and briefly considers the tax and other implications that may arise.

Types of assignment As trends in international assignments consistently demonstrate, the traditional assignment of several years remains under challenge with employers aiming to reduce costs and ensure they get value for money from the assignment. Consequently, assignments will vary both in length and the accompanying remuneration package. Your company may call the following types of assignment by different names but, hopefully, you should recognise the various types: • Virtual assignments • Commuter assignments • Business trips • Short-term assignments • Longer-term assignments • International continual assignments • Unaccompanied assignments • Local assignments with variations.

Your company may well have additional types of assignment depending on your business and location of company sites and employees. For example, those in oil and gas industries may have rotational assignments and those with employees and offices in close proximity to national borders may have trans-frontier issues.

These types of assignment are not considered within the scope of this article.

Employee tax and social security liabilities are considered below. Additionally, there is a danger with all assignments that the activities of the individual may result in a host country taxable presence for corporate purposes of their employing entity. There may also be Value Added Tax (VAT) issues in respect of cross-border charges for the provision of an assignee.

Corporate issues in relation to international assignments will be the subject of a future article.

Virtual assignments These assignments do not have any minimum or maximum duration. The indiInternational HR Adviser Spring

vidual remains living and working in their home country but the duties they perform are in respect of work generally connected to or being undertaken in another country. Communication is usually via email, telephone or video-conference. Is this the “ideal” solution for Human Resources? At face value it would appear so. There is little necessity for Human Resource involvement, little apparent cost, for example, no housing or schooling costs, and no issues with dual careers. If only all assignments were so straightforward! However, potential problems lurk.

Whilst the individual normally receives just their standard remuneration package in the home country with no assignment add-ons, invariably there is a need for the individual to travel to the host location and there can be the temptation to do this more frequently than originally envisaged.

Costs such as travel and accommodation will undoubtedly arise. Thought needs to be given as to how much you will allow and how this will be controlled. There is also the danger that the individual will spend significant time in contact with their overseas counterparts, which may affect the work/home life balance especially if home and host time zones differ.

Additionally, it may be difficult to monitor the work of the individual depending on to whom and how they report.

Duties undertaken at the host location can result in a tax and social security liability, although if trips are relatively few then it is unlikely that a liability will arise.

The position depends on the extent of the trips and the countries involved, together with any tax or social security agreements that apply.

expenses to cover the time spent at the host location. Accommodation is usually provided at the host location and may have to be large enough to accommodate the family should they visit. The family and children would primarily remain at the home location. Consideration needs to be given to the frequency of trips between home and host locations. Issues with schooling and dual careers do not usually arise.

With regard to transport issues it may be necessary to provide a car at both home and host locations and if the assignment is more long-term then some personal effects may need to be moved to the host location.

Costs associated with commuter assignments can be higher than originally envisaged and this should not be overlooked before approving such an assignment.

Withholding tax may be applicable in the host country and there is likely to be continuing withholding tax in the home country. Consideration may have to be given as to how to avoid dual withholding and the adverse cash flow impact this may bring. Individuals may have a liability to personal taxation in both home and host countries. Double taxation relief is likely to apply to either eliminate taxation or provide a credit if tax is due in both countries. The tax position is likely to be complicated and administration costs may therefore be higher. Tax protection is usually offered to ensure that the individual is not adversely affected from a tax perspective. Social security may also be due at the host location although this will depend on the countries involved, agreements between them and time spent at the host location.

Commuter assignments

Business trips

During a commuter assignment the individual is based at the home location but commutes to spend regular time at the host location. This can take various forms such as two days a week at the host location or every other month. With such assignments there is generally little impact on staff at the host location and relatively few problems for Human Resources.

Individuals tend to remain on their home payroll and on their home base salary but may receive per diems and

These typically last from one to thirty days and are not really an assignment but merely a part of an employee’s existing duties. I have included them within the scope of this article, as there is a danger that business trips are used continuously as opposed to a short-term assignment. Expenses are usually paid to cover temporary hotel costs, subsistence costs, and travel and out of pocket expenses. Whilst visas and work permits do need to be considered, tax and social security issues are rarely addressed on

Taxing Issues the basis that the individual is not in any one location for long enough to establish a reportable and taxable presence. This may not always be a correct assumption, but presence in another country for occasional days are unlikely to be of interest to the relevant authorities unless of course single business trips form part of a series of recurring trips. How does your company monitor such trips? This is a key and increasing area of interest for tax authorities around the world.

Short-term assignments These differ to business trips and can offer an efficient, relatively simple and cost effective alternative to longer-term assignments.

Assignments typically last from 31 days to 364 days but may go beyond this depending on your company’s definition.

The assignments tend to be used for project-based jobs and the remuneration package is an enhanced version of the home package. Pay typically comprises just base pay although an expatriate premium may also be offered. Increasingly, however, companies are seeking to reduce premiums, particularly for intra-regional moves.

Additionally, per diems or expenses are paid. Some companies also pay a cost of living allowance (COLA) although this is usually a feature of longer assignments.

Rented accommodation is generally provided at the host location, together with utilities and other housing costs. It may be appropriate to move some personal effects to the host location and to provide transportation there and possibly also at home.

Due to the relatively short-term nature of the assignment, families tend to remain at the home location. This can be a potential reason for family problems.

Holiday entitlement usually remains home based, although working hours and public holidays tend to be based on those in the host location. Consideration needs to be given to home leave and its frequency, especially as the family generally remains at the home location.

Such assignments are relatively simple and usually tend to have little impact on locally hired staff unless the assignment is continuously extended. With the family remaining at the home location dual career issues do not arise and there should not be any additional issues regarding education.

Short-term assignments have a tendency to be extended, and it can be difficult to change the assignment and its terms into those of a longer-term assignment.

Consideration needs to be given as to

how and who will monitor and report on the individual’s performance whilst on assignment.

Individuals tend to remain employed by, and on, the home country payroll for the assignment duration. Withholding taxes may need to be operated in both the home and the host country depending on the applicable rules. There may be a liability to taxation in the host country although this will depend on whether tax treaty exemption will be available.

In general, if an individual spends less than 183 days in the host country there may not be a liability, although the exact terms of the treaty do need to be examined as there are differences between treaties concerning the period covered and the impact of recharges. For example, a recharge to a UK entity whether this is for direct costs or a management recharge for the provision of an individual’s services could result in the UK entity being regarded by HM Revenue & Customs as the economic employer. A charge to UK tax can therefore arise even if the individual is in the UK for less than 183 days and is not paid or employed by the UK entity. Short-term tax exemptions or expatriate allowances may be available to minimise tax liabilities. Tax protection or tax equalisation generally applies such that the individual is not out of pocket as a result of the assignment.

Social security may be due at both home and host location. This will depend on the countries involved and any agreements between them.

Longer-term assignments These assignments are the traditional two to four year arrangement for an overseas move, where the individual and their family transfer to the host location whilst often still remaining employed by the home location. Company owned or rented accommodation is usually provided. Most companies still tend to try to dissuade assignees from buying a property at the host location due to adverse tax effects that can arise and the barrier to future mobility that this may bring.

Some companies will deduct a housing norm equivalent to what the individual would have paid in their home country. Others seek not to get involved with home country housing. Personal effects are usually moved to the host location.

You need to think about what you will allow to be moved and what should be stored instead.

Schooling becomes a major issue as do dual career concerns. You need to ensure you have thought about how your policy will address these points. Will you provide international schooling or pay boarding school fees for the home location?

Will you assist the spouse with employment if permitted or provide another form of support?

When it comes to cash elements of the remuneration package, individuals tend to move onto the traditional expatriate package often based on the balance sheet approach with tax equalisation.

Expatriate premiums and COLAs are usually paid, together with housing and schooling. Some companies are seeking to reduce additional elements of the cash package for intra-regional moves.

Thought needs to be given to bonus arrangements and share and pension plans.

More usually the individual will join host country bonus and possibly share schemes as opposed to remaining in home country plans, whilst they tend to remain in the home country pension plan.

There will usually be a continuing link to the home country in terms of some form of reporting or monitoring and there is an expectation that the individual will return to the home location, although not always the guarantee of a job.

With regard to tax there may no longer be a home country tax liability, although this is not always the case, for example with US citizens. Tax will usually apply in the host location in accordance with the company’s tax policy. Withholding is likely to apply in the host location and not in the home location. Social security may be due at both home and host location. This will depend on the countries involved and any agreements between them.

International continual assignments The type of assignment envisaged here is that where the individual moves from one assignment to another and does not really have a home location or contact with a home country. The individuals are often employed through an employee leasing company. There is no minimum or maximum duration for such an assignment.

Issues become a lot more difficult to address, for example when dealing with matters such as pensions and social security. With regard to pensions, individuals tend to be members of international plans.

Tax advantages in respect of employee and employee contributions may not be Spring International HR Adviser

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Taxing issues available in the host location. This makes provision that much more expensive.

Additionally, the comprehensive system of reciprocal agreements for social security may not apply and the individual may have to join the host country system.

This could be expensive and fragments both current and future social security benefits payable to the assignee. Financial promises and guarantees, with the accompanying cost, may have to be made to the assignee to ensure they are not out of pocket.

Assignment packages tend to be similar to those offered with a longer-term assignment, with tax equalisation linked to a specific net package in the absence of a home country tax liability. Tax and social security liabilities tend to arise in the host country.

Unaccompanied assignments These assignments can be of varying length but are unaccompanied. Reasons for this could be due to the ongoing career of the spouse, education issues with children, for example examination periods, or simply the location of the assignment being wholly unsuitable for family life.

Unaccompanied assignments are usually the choice of the assignee and their family and whilst this may reduce costs and issues for Human Resources, family problems can surface due to the separation of the family.

To counteract potential problems thought needs to be given to home leave for the individual or trips by the family to the assignment location. Accommodation that is provided may need to be bigger to be able to accommodate family members on such visits. The remuneration package would vary depending on the length of assignment and location.

Taxation and social security would vary depending on the location and length of assignment. As the family remains in the home country there is the potential for this to affect home country liabilities.

Local assignments with variations This assignment is relatively straightforward. Such assignments often occur where the individual is driving the move and the business cannot afford or justify the cost of a full expatriate package. Additionally they often occur for intra-regional moves. Assignees tend to be the younger and less experienced staff members.

Remuneration is usually based on that International HR Adviser  Spring

offered in the host country and is paid in the host location. There may be some provision of allowances, for example, temporary accommodation or a transportation allowance to assist in the initial period of the assignment but these tend to be phased out. This helps to assimilate the individual with other local staff.

Employment may be with either the home or host location. Pensions and longer-term benefits are likely to be those offered in the host location although there may be some linkage back to the home country if possible for a period. Social security and tax is likely to be payable in the host as opposed to the home country, although this will depend on the particular rules applying to the relevant countries, agreements between them and the length of the assignment. There does not tend to be any minimum or maximum duration for such assignments.

Summary The above comments can only provide a general overview of the different types of assignment. Policy definitions and remuneration packages will vary between companies, as will assignment lengths, complexity and cost. Most problems start to arise when assignments do not go as planned and end up being curtailed or extended. Where possible careful monitoring of assignments should occur to ensure all are aware of the implications of changing original expectations.

The wide-ranging nature of this subject has prevented me from being able to comment in detail on the specific tax implications of each assignment and each component part of the assignment package. We will review the tax effect of items such as travel costs, accommodation, expatriate exemptions and allowances in a future article. Naturally there are many other issues associated with assignments such as company philosophy, headcount, employment law and immigration, which are the subject of other articles.

Andrew Bailey is national head of human capital at BDO LLP. He has over 30 years’ experience in the field of expatriate taxation. BDO is able to provide global assistance for all your international assignments. If you would like to discuss any of the issues raised in this article or any other expatriate matters, please do not hesitate to contact Andrew Bailey on +44 (0) 20 7893 2946, email Andrew.bailey@ bdo.co.uk

Save The Date

Monday 3rd February 2014

The 2014 Corporate Relocation Conference & Exhibition will be held at Hotel Russell, Russell Square, Bloomsbury, London Please put the date in your diary as this free one-day conference & exhibition is a must for all those involved in Global Mobility.

There will be six free seminars and over 35 companies and organisations with products and services to help you in your role of International HR Management.

For further information please email: helen@internationalhradviser.com

education

Relocating With Children: Practical Challenges For Families On Overseas Assignments When parents begin a new overseas assignment, alongside managing the myriad financial and immigration elements of relocating and the practical concerns such as finding a place to live, ensuring the positive well-being of their child during the relocation period is a top concern.

It’s not surprising then that in their 2012 Global Trends Survey Report, Cartus, found that the third most common reason for assignment failure (44 per cent of respondents) was the inability of the family to adapt to the host country.

Cartus’s research also revealed that concerns about schooling was ranked as the second biggest issue for a successful relocation (23 per cent of respondents cited it as a potentially serious challenge, 48% as a real but manageable concern). The availability of quality schooling was second only to spousal employment opportunities in significantly impacting an organisation’s ability to attract talent to new assignments. It’s clear from these findings that employees are ranking family and schooling issues high on their criteria for assignment acceptance and success.

ACS International Schools has conducted a survey of recently relocated students which highlights the vey real indicators of what children’s top relocation concerns are, and the potential solutions which organisations can implement to overcome or reduce them.

For example, the survey revealed that the top three concerns for students are ‘leaving behind friends and family’, ‘fitting in and making new friends’, and ‘finding the right school/doing well’.

All of these issues can be dealt with in a positive way if support is in place up front to encourage children and their parents to communicate openly with one another about any issues or concerns surrounding relocating. Giving families opportunities to voice concerns with employers or relocating experts ensures support can be offered quickly when needed, and major transition issues are nipped in the bud.

More specific activities to help students cope with leaving old friends could include

a ‘Goodbye Party’ which can make a positive memory of leaving behind loved ones and give students a reassuring anchor point during the initial relocation period. Encouraging families to connect with friends and family on social media and Skype before they leave also helps children feel more secure about being able to keep in touch with important figures in their life even if they are physically far apart. Sixty per cent of our students said the ability to keep in touch with old friends and family was the main factor which helped them settle in once they arrived in the UK, so it’s clearly a vital focus from the moment families know they are about to be relocated to help minimise anxiety.

Keeping in touch with old friends instils confidence to make new friends, which was the biggest pre-departure concern for 44 per cent of our new students, interestingly for both English speakers and those who do not speak English as a first language. Again, good communication both within the family unit, as well as between employees and the sponsoring organisation and a child’s new school, can help minimise these concerns.

Employers can help by providing support through written materials, or verbally, where children about to relocate can meet with those who have already experienced an overseas assignment to the destination country, or other experts able to help answer queries and address concerns from an early stage.

The right school should be able to provide support programmes to help children, and in turn their families, make new friends, so finding out about what these are before relocating can help students settle in more readily.

One of our most successful programmes is our buddy system where new families are ‘buddied’ with a current family of the same nationality which has children of similar ages. Before the students start, their ‘buddy’ will be in touch and answer any questions they may have before the move, and once they arrive at school, will help them find their way around campus and introduce them to different friendship groups. One reason some students struggle to make new friends is because they feel that by making new friends they are betraying their old ones, so making a

friend before they relocate, can act as a bridge between these two situations and ease the transition period.

Concerns about school work was also ranked highly by students during the initial weeks and months of relocation, so helping employees find a school that’s the ‘right fit’ for their child before they relocate is important for both academic and personal wellbeing. Working with experienced relocation professionals and providing opportunities for assignees to network with colleagues who have experience of living in the destination country can help employers smooth the transition period and are cost effective, especially considering the cost of delayed assignments or worse still assignment failure.

Encouraging employees to highlight any possible stresses early also ensures issues can be dealt with quickly to ease stress.

When choosing a new school, many different issues have to be considered, not just whether the school offers the curriculum you want for your child, or extra-curricular activities they enjoy, but how other aspects could impact on family life. The family needs times together to transition from ‘tourists’ in a new location to being active citizens. A school can help provide a community for a newly relocated family which helps them put down roots to thrive in the new location. Starting the process of finding a school as soon as possible and having opportunities to ask for advice before relocating can make a huge difference with issues such as these. This survey shows the benefits can extend to improved performance at work when the family and children issues are resolved, and schools can play a vital role in these areas.

To access the full survey - International Relocation: Exploring The Experiences Of Students & Parents please visit www. acs-schools.com/about-acs-internationalschools/press-office/acs-research.aspx Fergus Rose, Head of Marketing & Admissions at ACS International Schools. ACS offers a fully international curriculum for students aged 3-18. www.acs-schools.com Spring International HR Adviser

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RES Forum Survey

RES Forum Survey On Developing Trends In Assignment Policy And Programme Management The RES Forum is a unique community in the global mobility space, being composed exclusively of in-house mobility professionals. The Forum’s aim is to share and benchmark best practice in mobility and international HR between 350 members ranging from fortune 250 companies with 5,000+ assignees to smaller programmes of 30 assignees.

As the data generated within the RES Forum is exclusively user driven, the Forum is uniquely positioned to understand the issues and trends which are keeping mobility professionals awake at night. It is with interest, therefore, that we have observed a number of emerging trends in assignment policy and programme management, specifically in relation to local+, enhanced local and localisation of assignees at assignment end.

This article combines several surveys conducted within the RES Forum during the last quarter of 2012, covering responses from 100 companies on trends in these areas. Observations are made as to what the answers mean for mobility, HR and organisations with internationally mobile employees going forward.

Shift from balance sheet to local + As the hot topic on everyone’s lips for what seems the last 5 years, 2013 could finally be the year that local+ overtakes the balance sheet as the concept of choice in the design of assignment packages.

53% of surveyed RES Members saw this approach as overtaking the balance sheet within their organisation, and, overwhelmingly, when respondents were asked why this was the case, ‘cost’ was considered to be the main driver. This is a continuing theme in the RES Forum, as when the same question was asked in 2011, cost was the main driver for 68% of respondents.

One respondent mentioned the term ‘co-investment’ from employee and company as being the driver. In our experience this is closer to the truth of the situation, namely an investment of time, commitment and cost potentially from both parties in what is something that can ultimately deliver value to both.

International HR Adviser Spring

The reality is that companies are looking at very simple cost-benefit models to ascertain the benefit to the company of expensive international assignments. Local + moves represent cheaper assignments on a cost-to-company basis, and if they can be offered to emerging talent they represent development opportunities that would not necessarily be available at home to the same emerging talent.

Another noticeable philosophical change in focus for companies, is that whilst in the past assignment compensation was about keeping whole with the home country, now assignment compensation is seen as an enhanced version of a local contract, with the aim of the enhancements being to help transition employees to the new location.

An interesting area questioned in the same survey on local+ was what benefits, if any, are typically provided to local+ assignees. The main benefits provided were integration and orientation benefits such as cultural training, partner support

and settling-in services.

And it might surprise you that when we look at the RES Forum policy benchmarking tool, those same benefits are provided under a full balance sheet policy (80% cultural training, 65% partner support, 80% settling in services).

So you might ask what is the difference then between the packages offered to local+ and traditional balance sheet assignees?

The answer is not in the provision of the benefit but how the benefit is received.

Local+ assignees typically receive assignment benefits on the gross basis (meaning the assignee pays any income tax arising) whilst in the traditional balance sheet model benefits are usually delivered net, meaning the company pays all income tax arising. The difference in cost can be astronomical as paying the tax on behalf of an assignee can add around 50% to the cost of the benefit.

Finally, a telling response to the local+ survey was when members were asked what, if any, protection they offer to local+ assignees on FX and exchange rates.

Clearly RES member companies do not typically offer any support in this area and why would they? As the RES Forum discussed in their 2012 annual report, with local + comes a shift away from the traditional equalisation to the home country and the ‘no better/worse off concept’.... in the world of local+ ‘local’ really does mean ‘local.’

Localising international assignees Localising international assignees when

RES Forum Survey a temporar y assignment becomes permanent has presented many challenges to companies over the years as assignees get used to their expatriate perks, considering the benefits to be materially part of their core compensation and benefits package.

This is somewhat validated by typical assignment length - when we last surveyed RES members in late 2012 asking when localisation commences, our members indicated that this typically happens after 5 years although many do start considering localisation from as early as 3 years in to the assignment. Either way, such long periods in receipt of assignment benefits and perks will psychologically make it difficult to give up assignment benefits when the time comes.

It was not surprising therefore that in the case of a localisation, 50% of respondents protect the assignee’s housing and dependent schooling at the end of an assignment to ease the integration into local terms, albeit this is normally capped at 2 years by the majority of companies.

Interestingly, from our previous research in this area in early 2012, many companies also phase out COLA which seems at contradiction with the ‘local’ element of localisation

but again talks to the difficulty in materially reducing an assignee’s package.

To deal with the negative perception of localisation, upfront ‘contracting’ is the key as to whether this can be effectively achieved. Clearly framing assignment duration terms both in the assignment policy as well as the assignment letter will ensure that there are fewer surprises at the end of an assignment. Also having the localisation approach codified in the policy ensures that there cannot be an expectation that generous assignment terms can continue ad infinitum.

The impact of these trends on the mobility and development of ‘Talent’ Although there is a wide range of reasons for selecting an employee to go on an international assignment, the development of talent, both in the ‘broad talent ‘ and ‘key talent’ sense, is becoming increasingly linked to global mobility within organisations.

From a survey we completed in late 2012, 80% of our members use assignments to fill a talent gap, whilst 66% use assignments as a means of developing

emerging talent.

However, whilst mobility is increasingly seen as a lever in talent management and employee development, it is just that - one lever amongst many that organisations can use to develop and engage their workforce.

From our regular interactions with our membership it is clear that mobility specialists are increasingly working closely if not forming part of the talent management function within their respective companies. But this is not enough. For organisations to move from a transactional and reactive view of mobility to a view which sees mobility as a strategic function the concept of employee mobility needs to form part of the DNA of all HR practitioners and senior management.

Indeed, when that is achieved the requirement for a dedicated mobility function could in theory disappear altogether.

Andy Piacentini is one of the founders of the RES Forum and is currently Head of Reward at Howden. Contact: office@theresforum.com

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Multicultural training: translating international methods

Taking Training Abroad: It’s Not As Easy As Catching A Plane Most companies aim for consistency in their approach to learning and development. So with the number of companies expanding internationally on the rise, those trainers that have not yet had the opportunity to deliver their programmes outside of the UK may soon find themselves with an invitation to travel. But before heading abroad with a tried and tested syllabus in tow, it is important to consider how existing programmes and approaches might need to be adapted.

Every country plays host to a different set of cultures and so there will always be differences, even if only tiny ones, between theirs and your own. Training courses, and your behaviour and delivery, should therefore be reviewed with this consideration in mind.

To ascertain what changes should be made there are a few simple rules to follow:

Talk to the top When planning a training session for an international audience you will have to adapt your syllabus from country to country, just as you would be expected to from company to company. But before setting an agenda it is important to speak to the key stakeholder at the location where the training will take place. While it may be the head of department that you converse with on a regular basis, you should impress upon them the need to speak with their own managers. There may be instances when you come up against resistance to this suggestion. In these cases it is best to make clear that, while you are sure they are best placed to explain the training goals, there may be a chance you will additionally benefit from the extra input their superiors can give. The aim is to create a programme that is imported, tailored and owned locally.

Once you have gained access, your aim will be to get the stakeholders’ own views on what the training programme should deliver, their opinion on the success criteria, and the hurdles or barriers you may face during training. Ask them their view on the core cultural sensitivities of their staff; is there anything you need to be made aware of? It is not uncommon for the senior staff to be expats themselves International HR Adviser Spring

and if they are they will be able to offer a different spin on the culture of their staff.

If you gain access to a senior manager, remember not to alienate day-to-day contacts. Make them feel valued by asking what role they think their boss believes they should have in the creation of their programme, in the modelling and embedding of the concepts being discussed.

few minutes exchanging pleasantries and discussing non work-related matters.

It may help to plan for this in advance, put some extra time aside for your call and think of some personal – but not invasive – questions to ask. However, make sure you’re also able to recognise when the time is right to gently steer the conversation back to the matter at hand.

Play the detective

Follow the rules

People learn from experience, but if you don’t have experience with the culture in question then learn from others’ instead.

Ask your contacts what happened at training sessions in the past; what worked well and what didn’t? Ask the names of the companies that have delivered previous sessions too – you may find you are acquainted with them, in which case you can contact them for a neutral opinion on the company and its staff ’s customs.

A word of warning: some cultures have differing opinions on how the past affects the future, and some will not be comfortable talking about their failures, so tread carefully and watch body language, or listen to the intonation of their voice for warning signs. You can avoid difficulty by giving them plenty of notice as to what you want to speak to them about. If you send an agenda your questions won’t feel like a surprise interrogation.

When working with new cultures you may need to plough a little more time into preparation than normal - that extra time should be spent gathering information. Find out what your client wants and what they expect their people to be doing better as a result of their investment in the programme.

Keep talking The British and the Americans, in fact most cultures that speak English as a first language, tend to be quite direct when speaking on the phone; we are very task-orientated. But not every culture is the same, so keep your communication going on a regular basis, and remember that most cultures will find it rude if you don’t call back straight away. Keeping people waiting tends to be considered rude no matter where you are in the world, and there is no harm in spending a

Before communicating with people from another country or culture, it pays to be aware that their social norms may differ from your own.

As anyone who has seen the HSBC adverts regarding cultural differences will know, the English think it is polite to clear their dinner plate when dining out, but the Chinese think it’s an insult to the host’s generosity. While not strictly relevant to training, it’s an interesting anecdote that illustrates the difficulties that arise when the guest demonstrates a lack of cultural understanding.

In the world of training, Asia is one market where there are a lot of traditions and “rules” to take into consideration.

For example, role-play in Asian countries used to be frowned upon – though this is no longer the case – but they are keen on the inclusion of case studies exemplifying your training points.

Share before you leave Once the training course has been completed, it is worth sharing any constructive feedback you have. This works best when done first in an informal manner, so stick around for 15 minutes, have a coffee, and talk to your contact about how you both feel the training went. Don’t just rush to the airport and type the notes up for a formal report - you may be missing out on some considerations for future sessions.

During this chat you can talk them through your findings and insights while keeping a tight focus on the areas which need development. End by thanking them for the opportunity and tell them what you have learnt about their culture and their ways of working. Explain how this will allow you to adapt their programme going forward to even better suit

Multicultural training: translating international methods their needs. Every market is unique and this should be acknowledged.

You should also aim to follow up with the senior stakeholder, sharing with them the reactions to given workshops and asking if they have observed any changes in workplace behaviour as a result of the training.

One small tip: some cultures like to give their employees certificates to show that they have completed some training.

Find out if this applies in advance and be prepared to award these on completion of the course. It’s a small action but one which can act as the icing on the cake, and it will certainly end the training on a positive note.

These are five simple – and yet essential – considerations you should be having when you are planning to take your training programme abroad. Follow these, learn from your mistakes and practice humility in the face of error, and you should find yourself invited back to deliver further training courses in the future.

Chris May Chris is the Managing Director and owner of FXL, a leading International Learning & Development company. The company was formed in 1989 and Chris led an MBO in 2007. He spends his time managing the Company’s Key Customers, Facilitating Workshops, Coaching Senior Managers within his clients and developing his FXL Franchisees in 9 countries around the World.

Chris is a lively and energetic facilitator keeping the group engaged and making sure the learning discussions are focused on the Delegates. He is able to draw on his real world/hands on career learnings and best practise from his other Customers. He is passionate about the transfer of learnings into the workplace and is relentless on the path of measuring the impact and return on his clients’ investment.

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Managing Globally Mobile Talent

Ten Issues For Managing Globally Mobile Talent In 2013 According to Mercer’s recent survey findings, many multinational companies have identified finding qualified candidates for global assignments as a major concern, so attracting and retaining top talent is a primary goal for mobility programmes in 2013.

Multinationals are also concerned about managing costs, especially since the total cost of moving a senior employee and his or her family abroad for a multi-year commitment – including compensation, benefits and housing – can easily cost three times base compensation. However, attracting the best candidates and managing costs can be contradictory goals.

To help HR professionals balance these goals while managing a globally mobile workforce in 2013, Mercer has outlined 10 areas that need addressing:

1. Aim before you fire It is important to ensure that global mobility programmes meet both talent needs and business needs. Now is the time to elicit feedback from line managers and senior leaders to ensure that mobility programmes are doing the right things – and not just doing things right. Use focus groups, interviews and market research to get unbiased, current input on the programme’s strengths and weaknesses.

2. Knock the barnacles off processing expatriate assignments Look critically at the entire process of selecting, recruiting, enrolling, orienting, compensating, housing, managing and repatriating expatriates. Consider some of the excellent software tools available, to document and streamline administration processes rather than using spreadsheets that vary by country.

3. Rationalise housing policies Housing costs can constitute one of the largest portions of total mobility costs and local housing markets can be volatile. Use timely, accurate, neighbourhood-specific housing cost data for “host” cities. Set appropriate, reasonable-cost rental guidelines and communicate them clearly to expatriates and relocation firms before the hunt for International HR Adviser Spring

housing begins. Consider elevating the approval process so that more-senior managers must approve exceptions to stated policies.

4. Match expatriate programmes to talent management strategies Define specific competencies for global leaders and then ensure their global mobility programme’s build “bench strength” to fill future leadership slots. As the company expands in other countries, it will become increasingly important that senior executives have hands-on experience outside their own home countries.

For each assignment, consider whether it is growing the business, developing global leaders or filling a critical skill gap, but do not leave talent mobility to chance.

5. Measure what needs to be managed It may be a cliché, but “you can’t manage what you don’t measure.” Ask questions like: Can you give an ROI for your mobility programmes? Would centralising or decentralising programme management be more efficient and effective? What is the turnover rate of your mobile talent?

Organisations must make sure they are pursuing goals that support the overall corporate strategy, and new analytics and metrics may be needed for 2013.

6. Re-evaluate vendors Are vendors fulfilling their service-level agreements? Would you hire the same vendors if you had to choose them today?

From relocation management firms to tax preparers to cost-of-living data suppliers to compensation managers, organisations should look critically at their vendors’ recent performance. It may be time to outsource, in-source or “re-source” some of the many special services that expatriates require.

7. Rethink how health care is supplied In many countries, the cost of providing healthcare to expatriates and their families continues to accelerate at rates higher than local inflation. Now is a good time to review mobility healthcare and wellness

options. This aspect of living abroad can vary dramatically from country to country, but healthcare and wellness is a significant element of overall expatriate remuneration that deserves careful attention.

8. Consider “local plus” Look critically at why expatriates are working abroad. Are they on temporary international secondments to be repatriated after their objectives are met? Or are some employees locally hired foreigners or directly hired on one-way or indefinite assignments for a permanent role? For the latter employees, a more localised or “local plus” compensation package may be more appropriate than a traditional expatriate package based on maintaining ties to a home country. Local plus adjustments may be particularly appropriate in Asia, where it is has gained traction.

9. Localise when it makes sense Depending on the country, the expatriate’s role and purpose, and the availability of talent, it may make sense to hire locally rather than to send an expatriate from a home country. Or organisations may be able to “localise” existing expatriated employees by aligning their compensation and benefits package with local market levels. If expatriates have been in-country for five or more years, it may be time to consider localising them.

10. Recalibrate indexes Now is a good time to re-examine assumptions made when computing both costof-living allowances and hardship premiums based on differences between home and host locations. It may be appropriate to adjust cost-of-living differences in host countries based on assumptions about employees’ familiarity with host-location spending patterns that may already be addressed in other company allowances or in benefits in kind. Changing indices can be both cost-effective and realistic. Looking carefully at the rationale for supplying hardship premiums may allow them to be reduced over time.

For more information, visit: www.mercer.com

immigration

Which Category Is Best For Your Internship Population - Tier 2 Or Tier 5?

As the spring and summer internship intakes are being finalised across the city, businesses are being faced with the administrative burden and legal requirement of ensuring that non-EU applicants have the right to work in the UK and participate in such schemes.

Many international businesses are fully aware of the Points Based System (PBS) and its different Tiers. But are these merely just numbered categories to cherry-pick from or do they really have a purpose?

Since the introduction of the Tier 2 immigration category (the visa for skilled workers), sponsors have become increasingly aware of the limitations in this challenging and frequently changing category. As the internship is the individual’s first taste of company life, the employer’s gut reaction would be to provide sponsorship under the Tier 2 General category.

However, for the purpose of an internship is this really the best category for an individual who is coming into the UK short-term often on a low salary? Although up for debate, from a business perspective, probably not.

Specifically, the UK company will face the challenge of satisfying the Resident Labour Market Test for a short-term position, supernumerary to staffing needs, where candidates hold little or no experience within the specific working sector.

This would subsequently call in to question the businesses adherence to PBS compliance and whether they can genuinely confirm the absence of a resident worker to fulfil the position on offer. With business compliance under PBS being such a hot topic, HR staff would agree that it is not worth putting their sponsor licence and migrant population at risk should they be found non-compliant.

Businesses often place these interns on low risk projects without having the burden of paying a large salary. A stumbling block imposed by Tier 2 is the minimum salary requirement before the Certificate of Sponsorship is issued. By choosing this category the employer must pay and maintain a record of paying the requsite minimum salary throughout the duration of the internship. This is a crucial area of compliance reviewed by the UK Border Agency in their audits, elevating the burden of sponsorship under Tier 2 General on the employer.

Businesses must also understand the implications of re-entry under Home Office cooling off period policy. Issuing a Tier 2 General visa for a spring/summer internship will prevent the business from issuing a second Tier 2 General COS as part of the graduate recruitment in that same 12 month period. This prevents the UK business from hiring the intern for 12 months and preventing the intern from re-entering the UK in any Tier 2 category, for any employer for the same period.

With so many hurdles to clear before sponsorship, and with the sponsorship burden being placed so highly on the employer, by comparison the Tier 5 Government Authorised Exchange (GAE) Category can often be viewed as a light in shining armour.

The Tier 5 GAE category is for people coming into the UK temporarily through approved schemes that aim to share knowledge, experience and best practice, and to experience the social and cultural life of the United Kingdom. Unlike Tier 2, where the UK business acts as the sponsor, under Tier 5 GAE, individual employers are not allowed to sponsor non-EEA nationals. Instead, the sponsor will be an overarching body who manages the GAE scheme, pushing the sponsorship burden onto the Tier 5 sponsor.

The requirements of each Tier 5 Scheme are governed by the specific overarching body. In most instances the GAE Sponsor will be looking to ensure the intern will fulfil a genuine internship position and the employer is not looking to use backdoor methods to circumvent labour market testing and salary requirements in the Tier 2 category. Further the employer is not required to be a Sponsor Licence holder under PBS to employ Tier 5 migrants.

Once the internship position has been established, it will come as music to the employers ears that there are no minimum salary requirements imposed under the Tier 5 GAE category. In most cases sponsors will secure confirmation as to how the intern will be able to maintain and accommodate themselves in the UK without recourse to public funds. As such, unpaid internships are permitted.

Given the temporary nature of the category, the RLMT does not apply to the application process, relieving the

employer from justifying chosen intern’s qualification for the position and facilitating a speedier application process.

A point for discussion is that the category limits internships to a maximum of 12 months. Many may argue that anything over this would sail into the waters of a more permanent position and against the spirit of the category. However, should a permanent position be secured following the internship, the intern may apply to re-enter the UK immediately under Tier 2 General without being subjected to the cooling off period. The employer must, however, normally complete a full and genuine Resident Labour Market Test before offering a job to a non-EU national.

Further, with the cancellation of the Tier 1 Post Study Work category, should a student with a Tier 4 visa find themselves without employment/sponsorship post-graduation, if an internship can be secured they may switch into Tier 5 GAE from within the UK to participate in the internship.

There are two sides to every argument, but some arguments are weaker than others. As UK businesses continue to see the benefit of offering internships, when business immigration is involved employers can be seen to lean towards efficient options which alleviate the administrative and financial burden on the company for temporary employees. The Tier 5 GAE category certainly minimises the requirements for employers to complete during the on-boarding process and provides quick and efficient access to the global internship market for UK businesses.

Fragomen is one of the limited number of UK organisations with a licence to sponsor these interns as an overarching body.

For further information contact us on +44 (0)203 077 5000 or email tier5internship@ fragomen.com.

Researched by Naomi Goldshtein.

Nadine Goldfoot is a partner in Fragomen's UK practice with more than 10 years experience in immigration law.

Nadine was an architect of the Fragomen Tier 5 International Internship Programme, a pioneering scheme that sponsors non-EEA interns to facilitate their employment with UK employers.

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Global Immigration Update

Global Immigration Update Luxembourg Government Increases Immigration Compliance Obligations, Toughens Sanctions (February 14, 2013) Employers are now explicitly prohibited from employing third-country nationals who are residing in Luxembourg without the appropriate authorisation and are subject to new employment eligibility verification obligations, under legislation that implements a European Union directive.

Foreign nationals are subject to higher sanctions for working without authorisation under the legislation, which took effect in January.

New Employer Responsibilities and Potential Sanctions Employers are now explicitly prohibited from employing third-country nationals who are residing in Luxembourg without the appropriate authorisation.

Employers are required to verify that each foreign employee has temporary work authorisation or a residence permit authorising work before the employment start date. The employer must maintain a copy of the employee’s work authorisation documentation for the duration of employment, and notify the labour ministry of the employee’s start date within three business days of the first working day. Employers must also ensure their subcontractors comply with these requirements if they employ third-country nationals.

Companies that employ third-country nationals without work authorisation are subject to a range of new and increased sanctions, including administrative fines of EUR 2,500 per unlawful worker and payment of repatriation costs, back pay, taxes and social security.

Repeated or egregious violations may lead to criminal penalties, including significant fines, imprisonment, or a curtailment of the employer’s ability to conduct business.

Complying with the employment eligibility verification and document retention requirements give employers a safe harbor from sanctions for noncompliance unless they knowingly accept false documents.

International HR Adviser Spring

What the New Sanctions Means for Employers Employers should review their internal policies to ensure they comply with Luxembourg’s new sanctions regime, including mechanisms to make copies of all necessary documents and to file required notifications with the government. Those who work regularly with subcontractors will also want to request their subcontractors provide them with proof of compliance.

Portugal Government Conducting Random Immigration Checks (February 27, 2013) The Portuguese Immigration Services and local police forces in recent days have been conducting random individual immigration checks in public locations such as bus, subway and train stations, public stores, and during routine traffic stops. Individuals who are stopped must provide proof of valid immigration status, such as a valid visa, residence card or EU Registration Certificate.

Portuguese law requires every foreign national to carry documentation of their immigration status. Individuals who cannot provide proof of lawful status during a random check may be detained until their status can be ascertained, and in some cases may be fined.

The immigration checks are largely occurring in northern Portugal at this time, but they are expected to occur throughout the country in the coming days and weeks.

Belgium Antwerp Approves Steep Increase in Registration Fees; Federal Government and Other Communes Critical of Change (February 28, 2013) The commune of Antwerp will increase the initial registration fee for non-Belgian nationals to EUR 250 from EUR 17. The sharply increased fee – expected to take effect May 1, 2013 – applies to all nonBelgian newcomers except foreign nationals with a long-term EU residence permit, students who come to Antwerp within an international cooperation framework, and recognised political refugees.

The federal government, some communal governments and the European Commission have criticized Antwerp’s decision. Leaders in several major Belgian communes will meet to consider taking concerted efforts before deciding whether to increase fees locally.

The European Commission plans to investigate whether Antwerp’s higher fee conforms to EU non-discrimination rules.

Singapore Government Imposes New Restrictions on S Pass Employment Category (March 1, 2013) The Singapore government announced several measures to restrict the S Pass employment category, including higher salary minimums, an increase in monthly levies on sponsoring employers, and a reduction in the maximum number of foreign workers that S Pass employers can sponsor. The changes were announced in the government’s 2013 Budget Statement and will be implemented in phases between July 1, 2013 and July 1, 2015.

The 2013 Budget Statement also includes changes for the Work Permit temporary employment category used by unskilled and semi-skilled foreign workers.

The S Pass category is open to specialised and technical personnel who meet specified minimum salary thresholds.

Increased Minimum Salary Requirements for S Passes Effective July 1, 2013, the minimum fixed monthly salary for foreign nationals sponsored for new S Passes will increase to S$2,200 (approximately US$1,775) from S$2,000. The higher salary threshold will also apply to current S Pass holders who apply to change employers after July 1.

Current S Pass holders who do not meet the higher qualifying salary may benefit from transitional measures when renewing their status. Those whose passes expire before July 1, 2013 will receive a one-time renewal of up to two years, at the Ministry of Manpower’s discretion. Those whose passes expire between July 1, 2013 and December 31, 2013 will receive a one-time renewal of up to one year. From January 1, 2014, all applications for S Pass renewals must meet the higher qualifying salary.

Global Immigration Update Tiered Salary Requirements Based on Employee’s Age and Experience Also beginning July 1, 2013, the S Pass category will feature a tiered minimum salary system that will be based on employee age and qualifications. Implementation details have not yet been determined, but older and more experienced workers will be required to meet higher salary requirements, commensurate with their work experience and the unique qualities they bring to their position. The tiered salary requirements are expected to resemble those of the Employment Pass category.

Increased Monthly Levies for Sponsoring Companies Beginning July 1, 2014, employers that sponsor S Pass and Work Permit holders will be required to pay increased monthly levies for their foreign employees.

According to the Ministry of Manpower, employers can expect an average increase of S$90 (approximately US$73) in the monthly levy for every foreign employee holding an S Pass, while the increases for Work Permit holders will vary according to industry sector. The levies will increase gradually in stages through July 1, 2015.

Reductions in Maximum Number of S Pass and Work Permit Holders Sponsored There will be a five percent reduction in the number of new temporary foreign workers holding S Passes and Work Permits that service sector companies can employ, effective July 1, 2013. Specifically, S Pass employers will be limited to 15 percent of foreign temporary workers.

Limits in the Work Permit category will be reduced to 40 percent.

Greater Flexibility for Work Permit Holders in Service Sector Jobs Work Permit holders employed by service sector companies will have greater flexibility to conduct activities that may be outside of the occupation specified in their permit, beginning July 1, 2013. Generally, Work Permits are heavily regulated and employers must strictly limit permit holders’ work activities to those specified in their permit.

Implementation details for the new programme have yet to be determined. The Ministry of Manpower will consult with the National Trades Union Congress and the Singapore National Employers Federation to produce implementation guidelines.

Belgium Increased Immigration Compliance Obligations Take Effect March 4 (March 1, 2013) Beginning March 4, 2013, employers in Belgium will be subject to new employment eligibility verification obligations under legislation that implements a European Union directive. Sanctions for non-compliance will increase. Principals and contractors will be joint and severally liable for instances of non-compliance by a subcontractor, unless they obtain a written declaration from the subcontractor that no unlawful third-country national is employed or will be hired.

Employers will be required to verify that every non-EU national employee possesses a valid residence authorisation before the employment start date. The employer must maintain a copy of the employee’s work authorisation documentation for the duration of employment, and notify the relevant ministry of the employee’s start date and if the employee is terminated.

Unauthorised employment of thirdcountry nationals will be subject to a range of new and increased sanctions, including administrative fines per unlawful worker and payment of repatriation costs, back pay, taxes and social security. Repeat or egregious violations may lead to criminal penalties, including significant fines, imprisonment, or a curtailment of the employer’s ability to conduct business.

Trade unions, employee and employer organisations, and the Centre for Equal Opportunities will be empowered to lodge complaints against employers that fail to comply with the legislation.

United Kingdom Upcoming Salary and Labour Market Test Changes for Tier 2 Workers (March 5, 2013) The UK Border Agency (UKBA) will implement a tiered approach to minimum salary requirements for Tier 2 workers on April 6, 2013, when recently announced revisions to its codes of practice take effect. The UKBA is also replacing its list of publications and websites approved for labor market testing with a set of standard criteria and adopting updated skilled occupation classification standards.

In addition, minimum salary requirements for all Tier 2 categories will be

increased by approximately 1.4% to keep in line with inflation.

Canada More Professions Are Eligible for Expedited Processing in Quebec (March 5, 2013) The government of Quebec has expanded an expedited work permit processing programme to include new occupations in IT and management consulting, among other shortage professions. Professionals with offers of temporary employment in one of the designated professions in Quebec are exempt from the Labor Market Opinion (LMO) requirement and benefit from streamlined processing.

The list of shortage occupations that qualify for expedited processing now includes IT systems managers, mechanical and IT engineers, web technicians and graphic designers, as well as business management consultants, restaurant and food service managers and miners working in underground production and development.

The new shortage occupation list applies to work permit applications submitted on or after February 24, 2013.

Applications submitted before that date must reference a position that appears on the previous list. Both lists are available on the MICC website (French only).

The new shortage list is subject to review after 30 days and could be amended by the government of Quebec.

Mexico Applications for Foreign Workers and Their Dependents Can No Longer Be Filed Jointly (March 6, 2013) Dependent visa applications must now be filed after the principal applicant completes the pre-approval and consular visa process and obtains the Resident ID card in Mexico. This development comes as the Mexican government continues to implement immigration regulations released in November 2012 and enforces new criteria and interpretations of the regulations.

Dependent applications were previously lodged simultaneously with the foreign worker’s application. Both visa-exempt and visa nationals can opt to file an incountry change of status application after the principal has obtained the Resident ID card in Mexico, though visa nationals Spring International HR Adviser

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Global Immigration Update will first have to obtain an entry visa at a Mexican consular post.

The issuance of local Resident ID cards continues to be delayed by up to two months throughout Mexico, with consistent delays at the immigration office in Mexico City. These delays will have a significant impact on dependents now that they cannot begin the visa process until the principal applicant obtains his or her local Resident ID card. Once current processing backlogs are cleared and procedures have stabilised, processing for local Resident ID cards is projected to take up to four weeks.

Germany Government to Simplify Entry Process for Skilled Workers (March 6, 2013) Companies sponsoring skilled non-EU workers for employment in Germany will soon benefit from simplified procedures that will largely remove local immigration offices from the adjudication of applications. The change – which takes effect July 1, 2013 – is intended to shorten processing times for skilled workers and make adjudications more consistent nationally.

Currently, all applications are forwarded to a local immigration office for adjudication before they are forwarded to labour authorities.

Streamlined adjudications will apply only to principal applicants who have not previously worked or resided in Germany. Local immigration offices will still be involved in the adjudication of applications on behalf of skilled workers who have previously lived or worked in Germany, dependents of skilled workers, entrepreneurs and unskilled workers.

Skilled foreign workers who intend to stay in Germany beyond the initial validity period of their entry visa (typically three months) will still be required to visit a local immigration office in order to convert their visa into a long-term work and residence permit and extend their stay. Foreign nationals can begin working during this process.

Norway Corporations Must Demonstrate Business Activity to File for Work Permits (March 8, 2013) Employers must be actively carrying out business activity in Norway if they intend to file an application for work authorisation on behalf of a foreign International HR Adviser Spring

national. The immigration directorate recently clarified that it will no longer accept applications from inactive entities.

The new policy may require employers to change their procedures for sending foreign workers to Norway. It has been the occasional practice of some employers to register an entity in Norway for the sole purpose of filing work authorisation applications behalf of foreign workers.

United States USCIS Releases New I-9 Form (on March 8, 2013) A new edition of the I-9 employment eligibility verification form -- featuring a longer format, several new information fields and more detailed instructions -- was introduced

by U.S. Citizenship and Immigration Services today. The new version dated March 8 2013, is available for immediate use and will become mandatory on May 8, 2013.

Through May 7, employers may continue to use the February 2, 2009 and August 7, 2009 editions of Form I-9.

How Has Form I-9 Changed? The new edition expands Form I-9 to two fillable pages (plus the list of acceptable documents) and provides fuller explanations of many key sections of the form, including: • Detailed instructions on how nonimmigrants should enter immigration document information in Section 1 of the form • Step-by-step instructions for employers on how to complete Form I-9 when a new hire presents a receipt in lieu of an acceptable document • Step-by-step instructions on when and how an employer should reverify an employee’s I-9 information • More detailed information on the identity and work authorisation documents an employer may accept; and • A reminder to employers that attaching copies of a new hire’s identity and work documents does not obviate the need to enter the relevant information on Form I-9 itself.

Completing the New Information Fields The form includes several new information fields for employees: Email address and telephone number field.

Employees have the option to list their email address and telephone number on Form I-9, but are not required to do so.

The Department of Homeland Security has stated that it will use this information to contact an employee whose I-9 information does not match DHS or Social Security Administration records.

Employees who choose not to include

contact information should enter “N/A” in these fields. Foreign passport number and country of issuance. Foreign nationals who are authorised to work in the United States (other than lawful permanent residents) may be required to list their foreign passport number and country of issuance on Form I-9. The rules concerning this new requirement are complex, and will depend on how the foreign national received an I-94 arrival-departure record. Foreign passport information is required if the new hire’s current I-94 was issued on arrival in the United States by Customs and Border Protection. No foreign passport information is required if the new hire’s current I-94 was issued by U.S. Citizenship and Immigration Services within the United States – for example, when an application to change or extend status was approved on his or her behalf. In this case, the new hire should enter “N/A” in these fields.

What the New Form Means for Employers. Employers should take steps to incorporate the revised Form I-9 into their employment compliance procedures before the new edition becomes mandatory on May 8, 2013. The new edition in some ways should make Form I-9 easier to complete and reduce confusion about some aspects of the verification process.

However, the new fields and instructions on the revised form raise a number of questions. Most importantly, it is not yet clear how U.S. Immigration and Customs Enforcement (ICE) will enforce errors or omissions related to the revised form. For example, we do not yet know how ICE would treat deviations from the very precise instructions in the form and whether errors related to the new fields on the form will be treated as technical or substantive I-9 errors -- a important distinction that affects how I-9 penalties are assessed.

USCIS is expected to issue a new M-274 I-9 handbook for employers that may provide greater clarity regarding the revisions to the form.

The content herein is provided for information purposes only. If you have any questions, please contact Fragomen Global Immigration.

Fragomen Global, LLP +1 (212) 688 8555 (direct) globalknowledge@fragomen.com www.fragomen.com Fragomen has 35 offices in 15 countries.

For further information, please contact: Global Knowledge Team

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diary dates MAY 2013 What Will 2013 Hold For The International Corporate Tenant?

May 1 & 2, 2013 Free to attend – Pre-booking required Knight Frank looks to answer this question and more at the exclusive launch of the 2013 Global Corporate Lettings Review at 8.30 am on the 1st May at 55 Baker Street with a Home Counties Launch 2nd May at Foxhills Surrey, KT16 0EL. Hosted by Jemma Scott, Head of Knight Frank’s Residential Corporate Services team and Liam Bailey, Head of Knight Frank Global Residential Research; who together will examine the residential rental market trends emerging across the Globe with comment and analysis from Knight Frank’s network of international offices. Examining the global corporate tenant market in key locations such as London, Hong Kong, New York and Shanghai.

To book your place at the launch breakfast please contact jemma.scott@ knightfrank.com or call +44(0)207 861 5244

Global Mobility: Intermediate Course May 14, 2013 Deloitte LLP, 2 New Street Square, London This course is for Global Mobility Professionals with 5-8 years experience. We will cover in depth some of the key, current and topical areas of Global Mobility, including exploring new locations, justifying the cost of Global Mobility and building the brand, ensuring that you put Global Mobility on the map in your organisation. We will also look at some technical areas such as deciphering deferred compensation, managing currencies and understanding pensions.

Cost £500. To book please visit www.expat-academy.com

Worldwide ERC: 2013 National Relocation Conference May 15-17, 2013 San Diego, CA, United States of America Check www.worldwideerc.org

The Totally Expat Show - London May 20, 2013 Business Design Centre, London Attended by hundreds of global mobility professionals, providers, consultants and industry experts, there is no better place than this networking exhibition and conference to gain useful technical knowledge and insight from experts and discover new opportunities.

For more information please contact Iyla MacIntyre on +44(0)20 7943 8027 or email iyla.macintyre@centaur.co.uk In-house global mobility/HR professionals – book your free place at: www.totallyexpat.com/london-show-2013/

JUNE 2013 Global Compensation Collection And The Power Of Data June 11, 2013 Deloitte LLP, 2 New Street Square, London This seminar will focus on how to cope with global compensation collection and how to leverage the data you own to run your Global Mobility function more effectively. Experts from The Hessel Group and Deloitte will share with you how to streamline your processes and deal with the inevitable challenges you face with data collection.

To book please visit www.expat-academy.com

Exploring Assignee Attitudes June 11, 2013 Deloitte LLP, 2 New Street Square This seminar, led by Kings College and AIRINC will explore recent research into why measuring expatriate attitudes matters.

Learn how firms can get good insight into the attitudes of international assignees to unpack the problem of identifying what drives value, and how investment in an international assignee programme can be shaped to maximise performance.

To book please visit www.expat-academy.com International HR Adviser Spring

Club 100 Workshop June 17, 2013 King’s College London, Strand Campus, London Join our first Club 100 workshop for organisations with less than 100 assignees. This is the perfect opportunity to up-skill yourself in the world of Global mobility and share information on current issues with similar organisations.

This one day plenary style workshop will provide you with a wide variety of topical and technical agenda items. You will also have the opportunity to tap into the knowledge of carefully selected Global Mobility specialists.

Cost £500. To book please visit www.expat-academy.com

The Totally Expat Show – North East USA Metropolitan Pavilion, New York, USA June 18, 2013 At the North-East US Totally Expat Show hundreds of the most influential global mobility professionals, providers, consultants and industry experts will meet, discuss and discover new opportunities at this unique high-level conference and networking exhibition.

For more information please contact Iyla MacIntyre on +44(0)20 7943 8027 or email iyla.macintyre@centaur.co.uk In-house global mobility/HR professionals – book your free place at: www.totallyexpat.com/northeast-show-2013

JULY 2013 RFP Workshop July 4, 2013 Deloitte LLP, 2 New Street Square, London This highly interactive and fun workshop will provide you with the opportunity to work with others to discover what works well when going out to tender for Global Mobility services.

Walk away with a better idea of how you can request information in the most efficient way and work with your procurement departments and potential vendors successfully.

To book please visit www.expat-academy.com

OCTOBER 2013 Global Mobility Summit – The Americas October 3-4, 2013 JW Marriott Las Vegas, USA The annual Americas Global Mobility Summit is where global mobility professionals from across the entire US join to benefit from a top-level conference featuring expert speakers and a series of panels, plus a networking exhibition to assess leading suppliers and learn about new opportunities.

For more information please contact Iyla MacIntyre on +44(0)20 7943 8027 or email iyla.macintyre@centaur.co.uk In-house global mobility/HR professionals – book your free place at: www.totallyexpat.com/summits2013/

Worldwide ERC: Global Workforce Symposium 2013 October 23-25, 2013 Dallas, Texas, United States of America Check www.worldwideerc.org

NOVEMBER 2013 Global Mobility Summit – Europe November 8, 2013 Lancaster London The annual European Global Mobility Summit is where global mobility professionals across Europe join to benefit from a top-level conference featuring expert speakers and a series of panels, plus a networking exhibition to assess leading suppliers and learn about new opportunities.

For more information please contact Iyla MacIntyre on +44(0)20 7943 8027 or email iyla.macintyre@centaur.co.uk In-house global mobility/HR professionals – book your free place at: www.totallyexpat.com/summits2013/

DIRECTORY Assignment Management Services

Total Reward Group Chart House, 10 Western Road, Borough Green, Kent, TN15 8AG Contact: Simon Richardson Telephone: +44 (0) 1732 780777 Fax: +44 (0) 1732 668284 Email: simon.richardson@totalrewardgroup.com Website: www.totalrewardgroup.com Total Reward Group is a ‘boutique’ employee owned reward practice, providing consultancy, search, interim managers and professional training for analysts.

The Global Mobility division of TRG provides both advisory services on policy development, as well as fully outsourced assignment management services, which provides a ‘virtual’ in house Global Mobility HR service.

BANKING

LLOYDS TSB INTERNATIONAL Address: Waterloo Place, PO Box 1400, London, SW5 9RE Contact: Cliff Govender Telephone: +44 (0)1624 657762 Email: cliff.govender@lloydstsb.co.uk Website: www.lloydstsb-offshore.com/ employeebanking Lloyds TSB International is part of Lloyds Banking Group, one of the UK’s largest retail banking groups with strengths and resources that extend worldwide. With a network of offices spanning four continents and dedicated English speaking customer service teams available 24-7, we are well placed to meet the financial needs of international employees and customers wherever they are in the world.

As expatriate banking specialists we understand that a new life abroad comes with a host of different opportunities and challenges. Our extensive local knowledge and international banking expertise will ensure that employees and customers have what they need to make the most of this exciting time in their life.

NatWest Global Employee Banking Address: Eastwood House, Glebe Road, Chelmsford, Essex, CM1 1RS Contact: Neil Barsby, Head of NatWest Global Employee Banking Telephone: +44 (0)1245 355628 Email: neil.barsby@natwestglobal.com Website: www.natwestglobal.com NatWest Global Employee Banking is a specialised department within NatWest who work with Company HR functions/ Relocation Agencies to offer a streamlined account opening service for relocating employees. One of the main benefits of the service is that employees can apply for their account before they arrive in the UK so their account is ready when they arrive.

This may also help if they want to transfer funds to their new account in preparation for relocation.

BUSINESS ASSOCIATION J-1 VISA PROGRAMME

BRITISHAMERICAN BUSINESS (BAB) 52 Vanderbilt Avenue, 20th Floor New York, NY 10017, USA Contact: Tamra Eker Telephone: +212 661 4060 Fax: +212 661 4074 Email: teker@babinc.org Website: www.babinc.org BritishAmerican Business’s J-1 visa program assists companies in offering US training and work experience to qualified employees of any nationality and from anywhere in the world, for a time period of up to 18 months. Sectors covered by our J-1 Visa designation include management, business, commerce, finance, law, industry, sciences, engineering, architecture, information media & communications. Using the J-1 Visa helps companies overcome cross-cultural differences and improve communication between US and overseas offices; enhance employee recruitment/retention efforts by offering US assignments; and meet global mobility challenges. Please call to discuss the program with our J-1 Visa Program Administrator.

HR SERVICES

ASSOCIATION OF RELOCATION PROFESSIONALS (ARP) PO Box 189, Diss, IP22 1PE, UK Contact: Tad Zurlinden Telephone: 08700 737475 Fax: 01379 641940 Email: enquiries@arp-relocation.com Website: www.arp-relocation.com The ARP is the professional association for the relocation industry in the UK. The ARP’s activities include seminars throughout the year, an annual conference, the publication of an annual Directory of Members and a website, which is updated regularly.

THE EUROPEAN RELOCATION ASSOCATION (EURA) PO Box 189, Diss, Norfolk, IP22 1PE Telephone +44(0)8700 726 727 Fax: +44(0)1379 641 940 E-mail: enquiries@eura-relocation.com Website: www.eura-relocation.com EuRA is an industry body for Relocation Professionals in both Europe and Worldwide.

EuRa have launched The EuRA Quality Seal, the world’s first accreditation programme for relocation providers. This pioneering initiative provides a straight forward, cost effective audit to reflect your company’s excellence in providing relocation services.

IMMIGRATION

FRAGOMEN 4th Floor, Holborn Gate, 326-330 High Holborn, London, WC1V 7PP Contact: Caron Pope, Partner William Foster, Partner David Crawford, Partner Telephone: +44 (0)20 3077 5000

Email: londoninfo@fragomen.com Website: www.fragomen.com As the world's leading provider of immigration legal services and advice, Fragomen has served the immigration needs of clients ranging from individuals to the world’s leading multinational corporations for 60 years. With 36 offices in 15 countries worldwide, Fragomen has the resources and the reach to provide strategic and effective immigration solutions for over 140 countries around the globe.

INTERNATIONAL HR CONSULTANTS

DELOITTE LLP Stonecutter Court, 1 Stonecutter Street, London, EC4A 4TR Contact: Robert Hodkinson, Partner Telephone: +44 (0) 20 7007 1832 Fax: +44 (0) 20 7007 1060 E-mail: rhodkinson@deloitte.co.uk Website: www.deloitte.co.uk Whether you are creating your first international mobility programme for employees or addressing fundamental changes to an existing programme, our International Human Resources team can help. Deloitte provides consulting support that has an appreciation for each company’s size, background and unique cultural environment, aligning your international programme goals with corporate business strategies. Our consultants have developed deep expertise in many fields based on first hand experience with many of the world’s leading organisations: international assignment policy and process design, benchmarking, service delivery modelling, improving vendor management and helping our clients become more compliant and their administration more cost-effective.

INTERNATIONAL MOVING

DT MOVING LTD 49 Wates Way, Mitcham, Greater London, CR4 4HR Contact: Tim Daniells Telephone: +44 (0) 20 7622 4393 Fax: +44 (0) 20 7720 3897 Email: london@dtmoving.com Website: www.dtmoving.com DT Moving is a world leading international moving company. Founded in 1870, we serve corporate customers all over the globe with an award-winning* move management and destination service programme. Through our London and Paris headquarters and worldwide network of global partners, we help clients achieve their workforce mobility goals.

Every employee we relocate receives a dedicated DT Moving team member as a central point of coordination, support and advice to ensure every part of their relocation runs smoothly.

Our goal is your complete satisfaction, and with a 96% customer rating for 2012, we offer unrivalled quality at competitive rates. *Awarded six global relocation awards since 2010.

Spring International HR Adviser

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DIRECTORY RECRUITMENT

RED GROUP OF COMPANIES The Bower, Langford Hall, Witham Road, Maldon, Essex, CM9 4ST Contact: Caroline Frostick-Seear and Amie Cutts Telephone: +44 (0)1621 840600 Fax: 01621 856062 Email: amie.cutts@redrecruit.com Website: www.redrecruit.com Red Recruit was founded in 2002 and specialises in the Relocation and mobility industry. We are a very professional, friendly and reputable company who have extensive knowledge within the industry.

We have access to a large volume of potential candidates all seeking work in your industry all over the UK, we will be able to find you a suitable candidate to enhance your business.

We personally understand the importance of finding the right calibre of staff for an organisation. By using our service we will take the pressure off you of finding a suitable candidate for your company, saving you time, money and effort, giving you the best attention at all times.

RELOCATION HCR Relocation UK Head office - Belvedere House Basing View, Basingstoke, RG21 4HG, UK Contact: Sally Kelly - HCR Business Development Manager, EMEA. Telephone: +44(0)1256 313780 Email: skelly@hcr.co.uk Website: www.hcr.co.uk Twitter: @relochatter LinkedIn: http://www.linkedin.com/ company/hcr-group-limited We look after people, your people. We have a dedicated, high performing and professional team to deliver our award winning relocation service. Our knowledge, experience and empathy ensures that each of your relocating employees and their families are carefully managed and that their specific needs are considered. HCR has a true ‘one point of contact’ philosophy; One dedicated, cross trained Account Manager and Lead Relocation Consultant who will manage, co-ordinate, deliver and provide comprehensive support for every relocation case.

INTERDEAN RELOCATION SERVICES Central Way, Park Royal, London, NW10 7XW Contact: Barrie Gilmour Telephone: +44 (0)208 961 4141 Fax: +44 (0)208 965 4484 Email: London@interdean.com Website: www.interdean.com Thinking Relocation? Think Interdean.

Whether looking to expand into new territories or to leverage your human capital in core international markets, Interdean has the relocation service to support the needs of your business and your relocating employees. Interdean provides the full range of relocation services to support businesses with international interests. We make it easy. Our Services: Relocation Management, Visa & Immigration, Area Orientation, Temporary Housing, Home Finding, School Search, International HR Adviser Spring

Settlingin Assistance, Tenancy Management, Household Goods Moving, Intercultural & Language Training, Relocation Expense Management, Moving & Relocation Insurance and other services available – please ask.

SCHOOLS

International Community School 21 Star Street, London, W2 1QB Contact: Matthew Cook, Director of Marketing with Admissions Tel: +44 (0) 20 7402 0416 Web: www.icschool.co.uk Email: marketing@icschool.co.uk Twitter: @icslondon Youtube: ICSLondon An international school located in the centre of London. We offer all three International Baccalaurate Programmes (PYP, MYP, and Diploma) to children aged 3-18yrs. ICS has a diverse community with 45 different nationalities, and boasts a strong tradition of working with students who need support with learning English and also Special Educational Needs. Students at ICS benefit from a wide ranging activity programme during term time and also during school holidays. We have an outdoor education centre located in Bawdsey, Suffolk and an extensive Travel and Learn programme that has taken students as far afield as Brazil, South Africa and the Galapagos Islands.

ISL Group of Schools ISL Surrey Old Woking Road, Woking, Surrey GU22 8HY Contact: Claudine Hakim Telephone: +44 (0)1483 750 409 ISL London 139 Gunnersbury Avenue, London W3 8LG Contact: Yoel Gordon Telephone: +44 (0)20 8992 5823 ISL Qatar PO Box 18511, North Duhail, Qatar Contact: Nivin El Aawar Telephone: +974 4433 8600 Website: www.islschools.org Email: hmulkey@islschools.org Celebrating its 40th anniversary in 2012, the International School of London (ISL) Group has schools in London, Surrey, and Qatar.

The internationally recognised primary and secondary curricula have embedded language programmes (mother tongue, English as an Additional Language, and second language) which continue throughout the student’s stay in the school. A team of experienced and qualified teachers and administrators provides every student with the opportunity to grow and learn in an environment that respects diversity and promotes identity, understanding, and a passion for learning.

MARYMOUNT INTERNATIONAL SCHOOL LONDON Address: George Road, Kingston upon Thames, KT2 7PE

Contact: Mrs Cheryl Eysele Telephone: +44 (0)20 8949 0571 Email: admissions@marymountlondon.com Website: www.marymountlondon.com With an outstanding record teaching the respected International Baccalaureate for over 30 years, Marymount offers day and boarding to girls aged 11-18 who gain places at the world’s best universities.

Consistently ranked within the top 5% globally, Marymount also offers the pre-IB Middle Years Programme; this stretches students without the need for incessant testing. The nurturing, supportive Catholic Community welcomes all faiths and achieves a shared purpose for girls of more than 40 nationalities.

TASIS THE AMERICAN SCHOOL IN ENGLAND Coldharbour Lane, Thorpe, Surrey, TW20 8TE Contact: Karen House Telephone: +44 (0)1932 582316 Email: ukadmissions@tasisengland.org Website: www.tasisengland.org TASIS England offers the International Baccalaureate Diploma, an American college preparatory curriculum, and AP courses to its diverse community of coed day (3-18) and boarding (14-18) students from 50 nations. The excellent academic programme, including ESL, is taught in small classes, allowing the individualised attention needed to encourage every student to reach their potential. Outstanding opportunities in art, drama, music, and athletics provide a balanced education. Extensive summer opportunities are also offered. Located close to London on a beautiful and historic 46-acre estate.

TAXATION

BDO LLP 55 Baker Street, London, W1U 7EU Contact: Andrew Bailey Telephone: 020 7893 2946 Fax: 020 7893 2418 E-mail: andrew.bailey@bdo.co.uk Website: www.bdo.co.uk BDO LLP is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network with more than 600 offices in 100 countries.

We have a partner-led approach, which delivers the highest quality of service by using short, functional chains of communication to aid decision-making. Clients benefit from our fresh thinking, constructive challenge and practical understanding of the issues they face. Developing strong, personal relationships with our clients is at the forefront of our service approach.

Tax advice is just one of our award-winning services and our expatriate team give practical and direct advice, delivering solutions which suit your needs.

Entries in this Directory cost £175 per issue or £700 per annum.

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