International HR Adviser Summer 2019 by International HR Adviser

SUMMER 2019

ISSUE 77

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International HR Adviser The Leading Magazine For International HR Professionals Worldwide

FEATURES INCLUDE: Global Immigration Trends In 2019 And Projections For 2020 Right Person, Right Role, Right Place: Promoting Global Mobility and Attracting Talent Work-Life Balance: Strategies For The Future At Work • All Change – Where To Be Paid And Foreign Currency Issues Settling Into Antwerp • The Global Business Travel Buffet – For Travellers Who Are Eager To Serve Themselves Revision: Mobility Through The Looking Glass • Demystifying Digital: Global Mobility’s Digital Journey Global Employment Companies – An Alternative Operating Model And Its Benefits • It’s Time For A Company Move. Now What?

ADVISORY PANEL FOR THIS ISSUE:

CONTENTS

In This Issue 2

20 25

The Fast-Changing Landscape Of Mobility Management Technology Yvonne Traber & Olivier Meier, Mercer Global Mobility

The H-1B Visa: An Update And Look Ahead Julie Muniz, Fragomen LLP

Global Immigration Trends In 2019 And Projections For 2020 Sonya Cole, Fragomen Global LLP

Right Person, Right Role, Right Place: Promoting Global Mobility and Attracting Talent Stuart Jackson, Sterling

Settling Into Antwerp BBF

It’s Time For A Company Move. Now What? Don’t Find Yourself A Passenger On The Decision Train Lisa Mendelsohn, Crown World Mobility (CWM)

The Global Business Travel Buffet – For Travellers Who Are Eager To Serve Themselves Kamal Advani, BridgeStreet

Demystifying Digital: Global Mobility’s Digital Journey Rumi Das & Emily Gkikas, Deloitte’s Global Workforce Practice

Global Tax Update Andrew Bailey, BDO LLP

All Change – Where To Be Paid And Foreign Currency Issues Andrew Bailey, BDO LLP

Global Employment Companies – An Alternative Operating Model And Its Benefits Chris Debner, Talent Mobility Thought Leader & ITX

Work-Life Balance: Strategies For The Future At Work Dr Paul Vanderwalle, Trained Medical Practitioner

Revision: Mobility Through The Looking Glass John Rason, Santa Fe Relocation

Directory

Diary Dates

www.internationalhradviser.com HELEN ELLIOTT • Publisher • T: +44 (0) 20 8661 0186 • E: helen@internationalhradviser.com DAMIAN PORTER • Publishing Director • T: +44 (0) 1737 551506 • E: damian@internationalhradviser.com International HR Adviser, PO Box 921, Sutton, SM1 2WB, UK Cover Design by Chris Duggan 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.

INTERNATIONAL HR ADVISER SUMMER

The Fast-Changing Landscape Of Mobility Management Technology The rigid models of traditional companies aren’t always adequate when competing in the new global talent ecosystem. That’s why companies are trying to leverage the ebb and flow of international talent by reinventing themselves as platforms for talent. In other words, companies are becoming smart, network-based, flexible platforms designed to match skill supply with work demand while maximising human creativity and ambition. This requires a degree of reinvention for both mobility management teams and HR in general. At a people level, mobility managers will increasingly see their roles shifting from relocation management to more-integrated talent mobility management, with a greater involvement in issues of strategic cost management, resourcing/recruiting and talent pool management. In terms of technology and operation processes, mobility management is moving from manual tasks, rigid reports and in-person services to process automation, enhanced employee experience and elements of self-service. Mobility technology needs to adapt to this platform logic, and new solutions are emerging to help manage complex mobility programmes by bringing together all aspects of an organisation’s international and domestic assignments, along with data, in one place. This platform approach provides an interactive, configurable, real-time data and content experience while simplifying workflows, lowering costs, reducing risks and tracking the return on investment. This article examines the trends leading to the development of new mobility technology and what organisations need to consider when implementing new solutions.

New Technology Adoption Is Gathering Pace

HR teams responsible for managing employers’ expatriate workforces have traditionally used a wide range of technology to help them with expatriate administration, from simple Excel spreadsheets, word-processed templates and email messages, to robust suites of cloud-based

integrated databases, calculators, employee websites and monitoring tools that can turn almost any aspect of the assignee experience into data.

Companies and HR risk being outpaced by digital changes as individuals witness the fast evolution of technology at home - an evolution not always matched by the slower development of technology in the workplace Although nearly two out of three employers surveyed (60%) still rely on Excel and Word to manage their programmes, that percentage is down from 71% in Mercer’s same survey four years earlier. Use of outside vendor software varies significantly by region, ranging from a high of 40% of surveyed employers in North America to 21% in Europe, only 9% in Asia-Pacific and 3% in Latin America (source: Mercer’s Worldwide Survey of International Assignment Policies and Practices, 2017). The impact of technology and the growing expectations of new generations of expatriates

is already being felt in day-to-day operations. Companies and HR risk being outpaced by digital changes as individuals witness the fast evolution of technology at home - an evolution not always matched by the slower development of technology in the workplace. These technological developments go hand in hand with a business need for real-time mobility data reporting, improved compliance and the use of metrics and analytics to support decision-making.

Factors Influencing Mobility Management Technology Needs

When adopting new technologies, a number of factors should be taken into account to evaluate requirements and potential challenges: • Mobility Programme Size and Complexity How many assignees and moves are initiated each year? And how many different types of moves (long-term, short-term or even commuters and extended business travellers) should be managed with the system? What about future development? What can be anticipated based on current business expansion plans for the coming years? • Organisation Model Is the mobility function centralised globally, partly decentralised between different hubs/expertise centres or fully managed by the local HR team in each country? To what extent should the system be in-house or outsourced? What are the key functionalities that need to remain in-house? (Often, it’s those linked to policy governance and communication.) • Stakeholder Requirements How will the different stakeholders involved in the mobility process be integrated? The system will be used by the mobility team/HR, but what about other parts of HR (talent management), line management and the assignees themselves? How will they connect to the system and benefit from it, and what are their expectations? • Approach to Governance and Compliance Will the new system facilitate compliance and governance by allowing tracking of assignees, flagging deadlines and tracking important issues? • Cost Management Can the new system help assess the real total cost of mobility, including full assignment management costs (budgeted

MOBILITY MANAGEMENT TECHNOLOGY and actual)? Will it help generate process efficiencies and increase employee satisfaction, and can these benefits be quantified? Articulating a clear business case and showing the added value of a new system to management is a prerequisite for success. • Changing Employee Expectations The unique characteristics of the new generations are sometimes exaggerated, but many companies say employees are increasingly requesting to manage at least part of their relocations themselves. A full self-service solution isn’t suitable for all employees; keep in mind that younger generations are no better-equipped than their predecessors to deal with difficulties and financial issues linked to an international career. Flexibility and selfservice approaches need to be balanced with duty of care and complemented by detailed guidelines, practical support and education. Technology needs to facilitate this balancing act. • Company-Specific History and Past Practices Stakeholders’ views on mobility and technology are often influenced by previous experiences. A number of technology solutions and processes may have been tried in the past - some of them successful, others not. Although the people in charge of these previous solutions might be long gone, the perception of mobility management technology within the company could still reflect their experiments. Understanding the specific history of mobility and technology implementation within the company helps mitigate such concerns and prejudices.

Mitigating The Biggest Headaches Of New Technology Adoption

Adopting new technologies can lead to improvement, but experience shows that such changes can involve significant effort from the talent mobility team. Some of the biggest headaches reported by management include integration, configuration, change management, project management and reporting. Other significant headaches involve HR organisational redesign, HRIS vendor selection and building the business case. Existing Technology Solutions And Integration For the mobility team, being strategic means interacting with other departments. Mobility shouldn’t be managed in isolation from the rest of the business. From a technology standpoint, this implies a degree of system integration. It is rarely possible to implement a new

solution without taking into account the existing systems used by HR and the rest of the business. Information should flow from one system to the others smoothly without manual intervention or uploads. How new and existing systems should interact with each other will soon become a burning implementation issue if not well-planned in advance. System integration is also a precondition to providing real, in-depth analytics, drawing from sources of data spread between different systems and business units (mobility, HR and talent management systems but also finance and other parts of the business). Although technology cannot solve all issues, integrated systems can help bridge the gap - between departments in general and between mobility and talent management in particular. But integration isn’t just a question of system compatibility. It involves effective implementation and configuration.

Although technology cannot solve all issues, integrated systems can help bridge the gap - between departments in general and between mobility and talent management in particular Implementing And Configuring Systems Implementations that last months can be challenging for small teams that still need to manage day-to-day activities during the transition period. Implementation activities shouldn’t be underestimated and need to be included in the calendar and operation planning. Additional tasks not linked to the technology itself but still important for

a successful implementation need to be anticipated. For example, harmonising existing policies and eliminating inconsistencies is often part of the preimplementation process. Data migration can be a challenge due to formatting and labelling inconsistencies. Required data may be hosted in different systems and in different countries. The data might not have been not recorded for a sufficient period of time or captured consistently. Without preparation work and support from IT, it will be difficult to access relevant information. Moving data between systems and integrating them might also lead to data privacy issues that need to be reviewed by compliance and legal teams. All these efforts require strong leadership support and efficient project management. Staffing Level And Expertise The best system in the world won’t deliver added value if users aren’t properly trained to use it or if it’s perceived to be too complex to use. The objective is to have autonomous users who can operate without requiring assistance from other teams (like IT) and who can leverage the features of the new system (automation of certain processes) to free up time to focus on more-strategic business issues. Adoption of new technology implies upskilling the mobility team - not necessarily to turn mobility professionals into IT experts but to familiarise them with tools and methodologies, such as analytics and agile management, not previously part of their day-to-day tasks. Leadership Involvement Are the senior leaders taking the right steps to make this organisational change work? Securing leadership support early enough to promote change is part of the de-risking exercise that will limit potential problems and friction between mobility stakeholders down the line. This is crucial for a strong business case.

Preparing The Business Case: The Added Value Of The New Generation Of Mobility Management Platforms

Adapting To The New Realities Of Mobility Years ago, mobility management was dominated by the opposition between traditional expatriates sent on long-term assignments and employees localised in the host destination. Many tools and approaches were designed to support this dichotomy. The current talent mobility landscape is far more complex due to the globalisation and diversification of the workforce as well as the multiple forms of mobility: long-term assignments but also short-term moves, permanent relocations, locally hired foreigners, commuters, extended business trips, employee-initiated moves, or even moving jobs to people as opposed to moving people to jobs. Furthermore, some of the future

INTERNATIONAL HR ADVISER SUMMER

assignees might not be in-house employees the rise of the expatriate gig worker will require more agility from talent mobility teams. These evolutions are transforming the purview of mobility teams and forcing them to consider new approaches to compensation, career and process management. Mobility technology needs to reflect these changes. The Value Of Integration An integrated approach for the mobility function, with a focus on global operating structure, technology, policies and processes, is an important element in an employer’s effort to better align the mobility function with strategic business priorities. From a practical perspective, one benefit of an integrated platform is the integration between mobility management and talent management, resulting in a greater focus on recruitment and retention strategies as well as on identifying skills gaps. Talent management issues constitute some of the biggest barriers to mobility: 24% of companies report difficulties with identifying the right candidate, and 21% report career management problems (source: Mercer’s Worldwide Survey of International Assignment Policies and Practices, 2017). Mastering Compliance Issues An integrated mobility platform allows the mobility team to both act as an adviser to the business and anticipate risks and compliance issues. Compliance and risk management are often split between departments and geographies. Mobility professionals are essential points of contact and facilitators for these issues. Managing Costs As many employers (37% of participants in Mercer’s Worldwide Policies and Practices Survey) think current conditions are too costly, traditional cost-cutting approaches, focused on reducing assignees’ allowances and premiums or drastically limiting the number of expatriates, often fail to meet employers’ objectives and could lead to lower assignee retention. Cost management needs to be reframed to integrate not just the cost of assignees’ packages but the overall cost of the mobility function as well as the cost of attrition, failed assignments and missed opportunities. Capturing all these elements requires an integrated mobility platform. Ultimately, the challenge of cost management is linked to the value of international assignments - and how to measure it. Enabling Fact-Based Decisions: Cost Reporting, Metrics And Analytics What is the real added value of global mobility for the business? All too often, the answer remains vague, and many assignments are initiated without strong evidence of actual benefit to the company

and the employee. The new possibilities offered by the rapid development of artificial intelligence have led to a growing appetite from management for detailed metrics and analytics. Eighty-three percent of respondents cited cost - and metricsreporting as important or very important skills that will be required by mobility teams (source: Mercer’s How Global Mobility Is Responding to New Dilemmas, August 2018). Making sure the basics are in place in terms of metrics and cost-tracking is a first step.

Mobility professionals are essential points of contact and facilitators for these issues

But a real differentiator for HR professionals will be the use of new technology to develop meaningful analytics and turn the results into actionable suggestions to improve people management. Delivering A User-Centric Experience To Increase Employee Satisfaction The results of Mercer’s Global Talent Trends 2019 study reveal a growing appetite for greater personalisation and the development of employee value propositions to address the needs of different assignee groups. The objective is not to create a new policy for each group or even discard existing segmented policies, but rather to understand how current approaches answer the specific requirements of each individual and how these approaches should be communicated. New technologies allow companies to push information to their assignees that is both relevant and tailored to their specific needs. Users (assignees and their families as well as internal stakeholders) can access dynamic host-location information. Employee satisfaction can be monitored before, during and after assignments through online pulse surveys. Successful integrated communication can position talent mobility as a core component of a company’s employer branding.

YVONNE TRABER

Yvonne is the Mercer’s Global Mobility Product Solutions Leader as well as the European Mobility Business Leader. She is currently leading the development of Mercer’s new Mobility Management Platform – an innovative solution to help manage complex mobility programmes by bringing all aspects of an organisation’s international assignments together in one place. Yvonne has more than 20 years of experience and has been instrumental in driving the implementation of mobility management solutions globally. She was leading the European Global Mobility Technology & Implementation Projects from 2012 - 2014. She played a key role in the design of international compensation solutions and Cost of Living approaches for a number of leading firms globally. She is a regular speaker at Mercer's Expatriate Management seminars and conferences around the globe. Please don’t hesitate to contact Yvonne to discuss about Mercer’s Mobility Management Platform or other mobility matters. T: +41 22 869 3073 E: yvonne.traber@mercer.com

OLIVIER MEIER

Olivier Meier is a principal in Mercer's Mobility practice and has 20 years of experience in Global Mobility and international talent management. He is currently working on the development of tools and solutions to compensate internationally mobile employees. The focus of some of his recent projects was on identifying mobility megatrends/new management dilemmas, developing mobility analytics, fostering mobile talent diversity, developing international talent pools as well as on practical issues related to alternative assignee compensation models. Olivier is also involved the organisation of several mobility events and is a prolific blogger on talent mobility issues. Articles from Olivier and other Mercer experts can be found at mobilityexchange.mercer.com T: +49 1727 434696 E: olivier.meier@mercer.com

INTERNATIONAL HR ADVISER SUMMER

The H-1B Visa: An Update And Look Ahead On May 17, 2019, the United States Citizenship and Immigration Services (USCIS) announced that it had completed the initial data entry of all FY2020 H-1B cap cases selected in the lottery. For those of you unfamiliar with the H-1B visa, you might be asking, “Aren’t we in 2019?” “What is the H-1B visa lottery?”. The H-1B visa is a professional worker visa utilised by U.S. companies to employ foreign workers in a specialty occupation. In order to qualify, the U.S. job must require at least a bachelor’s degree in a specific field and the H-1B workers must hold that degree or its equivalent. H-1B visas are numerically limited, and the demand for H-1B visas far exceeds the supply. As a result, the government runs a “lottery” every year in order to allocate the 85,000 H-1B visas available each fiscal year. The government fiscal year runs from October 1st to September 30th, and USCIS regulations allow employers to file petitions up to 6 months in advance of the anticipated start date, so employers who want to enter the H-1B cap lottery have 5 business day (during first week in April, 6 months in advance of the new October 1st fiscal year) to file petitions for an October 1st start date.

Has The Cap Has Been Reached? What About Change Of Employer Petitions?

The agency received 201,011 filings between April 1 and April 5, 2019, an increase of 10,913 petitions, or 5.7 percent, over last year’s 190,098 filings. This year’s filing volume is the highest since 2016, when a record 236,000 filings were submitted for the FY 2017 H-1B cap. Because of the operational challenges of high volume, it will take USCIS some time to perform initial intake, run the selection lotteries, and issue receipts. Employers and foreign nationals should expect to wait at least several weeks to learn whether their cap petitions were selected in the lotteries. Employers can continue to file H-1B cases that are not subject to the cap. These include extensions, amended petitions, changes of employer, and concurrent filings for existing H-1B workers. Petitions sponsored by institutions of higher education and

their related or affiliated nonprofit entities, government research institutions and nonprofit research institutions are exempt from the cap. However, a current H-1B employee may be subject to the cap if his or her previous H-1B was sponsored by a capexempt employer.

For those of you unfamiliar with the H-1B visa, you might be asking, “Aren’t we in 2019?” “What is the H-1B visa lottery?” New This Year: Reversing The H-1B Cap Lotteries

After initial intake is completed, USCIS will run two selection lotteries. In a reversal of past practice, USCIS will run the standard H-1B cap lottery, followed by the advanceddegree lottery, pursuant to the new H-1B registration rule. The change is intended to increase the number of H-1B employees with U.S. advanced degrees, pursuant to President Trump’s “Buy American, Hire American” Executive Order. Cases not selected in the lotteries are rejected and returned with their filing fees. In the first lottery, USCIS will select enough cases to meet the regular H-1B cap of 65,000. In the second lottery, USCIS will select enough cases to meet the cap exemption of 20,000 for beneficiaries who hold a U.S. advanced degree; any advanceddegree holder not selected in the first lottery will be entered in the second lottery.

Receipting And Adjudication

Employers who filed H-1B cap cases with a request to change status and a concurrent request for premium processing should get email filing receipts by May 20, though receipting could begin earlier. Employers whose regular-processed cases were selected in the lottery should begin to get filing receipts by late-May, if not earlier. Receipting could continue for several days or weeks after it begins. Adjudicators should begin working on premium processed cases by May 20. USCIS should complete initial adjudication of premium cases by June 4. By this date, employers should receive an approval, request for evidence (RFE) or denial in their premium cases. USCIS is expected to begin working on regular processed cases by early to mid-June. In past years, USCIS has typically aimed to finish initial adjudication by late August, though the FY 2019 adjudication period extended well into calendar 2019; premium processing was suspended for most of this time.

Impact Of H-1B Cap Processing On Other Case Types

During the busy cap season, USCIS devotes significant resources to the processing of H-1B cap petitions. This may prolong the processing of other case types, including extensions of stay. Though USCIS makes an effort not to unduly delay the processing of non-cap cases, employers and foreign nationals should plan for the possibility that their extensions may take longer than usual. As a reminder, H-1B, H-1B1, L-1, E-1/E-2, E-3, O, P, TN and certain other nonimmigrants are given an automatic 240-day extension of work authorisation beyond the expiration of their current period of stay if an extension is filed on time. USCIS aims to complete extension processing within this timeframe, but if it does not, the foreign national’s employment authorisation could be affected.

Next Year (Early 2020 For FY2021): Pre-Registration Requirement: A Closer Look

U.S. Citizenship and Immigration Services (USCIS) is moving forward with a plan to require employers to pre-register for the H-1B cap selection system. The agency could also propose other changes to the H-1B

IMMIGRATION cap petition process. USCIS has sent a draft regulation to the Office of Management and Budget (OMB) for review, which is the first step toward altering H-1B cap procedures. Though details of the draft plan are confidential for now, USCIS made a similar proposal in 2011, which could be a model for the agency’s forthcoming regulation. Features of the 2011 proposal included: • Initial pre-registration period - To register for the lottery, employers would file a short form that provides basic information about the company, the job offer and the prospective foreign employee. Employers would file a separate registration for each foreign beneficiary. As under current rules, an employer would be prohibited from submitting more than one registration per foreign national – though registrations submitted by different employers could be accepted if each registration represents a different bona fide job offer. The pre-registration period could occur before the usual April 1 opening day of cap filing season • Cap selection lotteries - It is anticipated that USCIS would retain the cap lottery system and use the lottery to select H-1B petitions eligible for filing. Once the preregistration period closed, USCIS would

run the standard and master’s cap selection lotteries and choose enough registrations to meet the 85,000 H-1B quota. The agency could propose some changes to the way cases are selected in the lotteries and the way cases are counted against the annual quota • Petition filing period - Full H-1B petitions and supporting evidence would be filed only for registrations that were selected in the lottery. If their cases are selected, employers would be required to submit their cap petitions within a specific timeframe, which could be brief • Waiting list - USCIS could create a waiting list so additional cases could be filed if the quota is not reached due to petition rejections or withdrawals, or if an employer decides not to file a petition for a winning registration.

What This Means For Employers

Once USCIS completes the cap selection process, employers and foreign nationals should be prepared to wait up to several weeks to learn whether their petitions were accepted in the H-1B cap lotteries. If any of your organisation’s cap filings are not chosen, you should work with your immigration provider to assist in identifying alternatives for affected employees.

JULIE MUNIZ

Partner, Fragomen LLP New York, NY, USA Julie is a Partner at Fragomen’s New York office. She has extensive experience representing large multinational corporations in a variety of industries, including telecommunications, financial services, transportation, entertainment, healthcare, consulting, energy and oil and gas. She has experience with a broad range of immigration issues facing multinational companies, including global workforce mobility, mergers and acquisitions, compliance, security clearances and policy development. Julie earned her Juris Doctor, cum laude, from New York Law School and Bachelor of Arts from Boston College. She speaks English and Spanish. Visit www.fragomen.com

GLOBAL IMMIGRATION

Global Immigration Trends In 2019 And Projections For 2020 This year has showed a continued trend toward digitised immigration processes and encouraging foreign highly-skilled talent to compensate for brain-drain. Many countries’ government overhauls resulted in immigration administration shifts and in turn, immigration rule and process changes and delays. Certain regions’ concerns about skilled foreign workers replacing their local working population led to increased compliance efforts. Below is a summary of the main global immigration events in 2019 and Fragomen’s projections.

AFRICA Main Immigration Events

Workplace audits by immigration officials increased in 2018 and have stayed at a consistent level since then, focusing still on the oil and gas industry. A new identification number system in Kenya allows foreign nationals access to national government services but is yet another way for the government to track foreign nationals, since it requires biometric information and proof of residence. Many countries moved to online systems (Nigeria, Mozambique and Zambia), but implementation has been slow and there have been issues due to poor infrastructure to support online platforms. South Africa is in a waiting period as draft regulations have forewarned of a major reduction of occupations on the Critical Skills List and other major changes, but the government has not published official information.

Projections

The influx of low-skilled immigrants could push governments to continue to increase scrutiny for work permit applications to attract higher-skilled workers. On the other hand, continued brain-drain in some economies (especially Nigeria) will likely increase localisation efforts such as the use of training/succession plans to educate the local population. Even more African countries will move procedures online to streamline immigration processes for foreign workers and employers and to reduce workload for overwhelmed authorities. The

developing immigration landscape, including integration across government departments in many countries, provides an ideal platform to improve technology.

Many countries’ government overhauls resulted in immigration administration shifts and in turn, immigration rule and process changes and delays LATIN AMERICA Main Immigration Events

Due to the humanitarian crisis in Venezuela, many countries in Central and South America have continued to relax entry and immigration documentation rules. New government structures or closures of government agencies have significantly slowed processing in the region. Numerous online systems have been introduced to attempt to increase efficiency. Colombia’s new administration implemented restrictive immigration laws in February that will likely create stricter rules for several visa categories.

Projections

Policies allowing entry with expired documents and passports will likely continue to expand as the humanitarian crisis in Venezuela continues, though countries that have been most welcoming to Venezuelans are calling upon the international community for assistance to sustain the mass migration. Delays due to government transitions in Mexico should slow down once positions are

filled and government officials gain experience and create better policies. Continued digitisation of immigration processes should make processes more efficient and attractive to foreign workers and employers, which should help the economy in light of the high local unemployment rate. Latin America’s growth in the technology industry will be a driver for immigration rules that favour nationals from countries where highlyskilled technology specialists are seeking opportunities abroad, such as those from India. Further restrictive immigration laws can be expected from conservative governments in Latin America that run on nationalistic/antiimmigration platforms. On the other hand, due to a potentially increasingly qualified workforce in Colombia (where laws are becoming more restrictive), salaries for local workers may rise since local workers must be paid at least the same amount as foreign nationals in the same position.

CANADA Main Immigration Events

The federal Canadian government is focused on attracting immigrants to rural areas through the creation of programmes like the Rural and Northern Immigration Pilot. However, the Quebec government is seeking to restrict the amount of English-speaking foreign nationals to reduce immigration levels to the province. This conflict creates mismatching laws next to Canada’s overall vision to attract immigrants.

Projections

Divergent policies between the Canadian federal government and Quebec’s provincial government are likely to remain as long as a liberal federal government and a conservative provincial government remain in power. The Quebec government will likely continue to focus on limiting immigration efforts to French-speaking foreign nationals. Other provinces are likely to continue following the federal government’s lead in increasing immigration levels due to a need for workers.

APAC Main Immigration Events

Efforts to attract foreign workers to the region are resulting in improved immigration application systems and lower standards for work authorisation (i.e. in Japan, two new visa types opened for semi-skilled foreign

INTERNATIONAL HR ADVISER SUMMER

workers). An outlier is Singapore, which is restricting quotas and encouraging access to the labour market to local workers. An effort to consolidate government administrative systems has led to increased use of online platforms, especially in Japan, Indonesia and China, where in the recent past, numerous government agencies had to interact in the immigration process, often causing delays and administrative hurdles for applicants and employers.

Immigration system streamlining efforts are likely to continue as countries with high unemployment rates in the region aim to increase their workforce with skilled workers Projections

Immigration system streamlining efforts are likely to continue as countries with high unemployment rates in the region aim to increase their workforce with skilled workers. Singapore will likely continue its restrictive approach by raising qualification requirements for foreign workers. In Australia, there likely will be a continued focus on immigration into rural regions to address skills shortages and to reduce pressure in cities. Also in Australia, a demand for transportation and construction workers is likely as the new Coalition Government recently committed to invest AUD 100 billion into transport infrastructure. Lastly, the Prime Minister of Australia has expressed budget concerns in the many government departments, which suggests that the digitalisation and automation of visa processing may become a higher priority.

EMEA Main Immigration Events

Ongoing Brexit negotiations have caused EU Member States and the United Kingdom to create contingency plans for UK or EU workers, respectively, if a no-deal Brexit occurs. If the United Kingdom and the European Union ratify a Withdrawal Agreement before October 31, 2019, the United Kingdom would leave the European Union the first day of the following month. Many European countries have either implemented online processes or streamlined processes. Increased border security has been a major topic of interest in European immigration. Six Schengen area countries extended internal border controls in 2019, despite internal border controls not being allowed per EU law. In opposition to this, the European Parliament reconfirmed its position that EU countries should limit temporary border checks to two months initially and limit extensions to one year. Such border controls beyond the two-month limit could be eliminated if the EU Parliament votes on this issue, which is scheduled to happen in the next few months. Many EU Member States have been updating their immigration laws to comply with EU Directives, showing increased efforts to coordinate immigration approaches.

introduce residence permits for highly-skilled and wealthy foreign nationals without a sponsoring employer, an unusual approach in this region. Kuwait has introduced fees and Bahrain has increased fees for employers who are noncompliant with local worker ratios, showing a more restrictive approach than the rest of the region. Tensions continue in the region following the severance of diplomatic ties with Qatar by the United Arab Emirates, Saudi Arabia, Bahrain, Egypt, Yemen, the Maldives, and Libya. Pakistan has introduced an e-visa system and the United Arab Emirates has launched an online application system for foreign nationals who will apply for long-term residence permits.

Projections

The political tensions in Qatar will likely continue to cause immigration issues for Qatari nationals travelling to Gulf Cooperation Council countries and viceversa. Continued digitisation of immigration processes will likely make the area more attractive to foreign workers and help employers to fill high unemployment rates. The continued focus on attracting foreign investors will likely counterbalance the dip in oil prices, which is hurting the economy.

Projections

Contingency planning for a no-Deal Brexit will continue until an agreement is seen as likely to pass in the UK Parliament. Stricter border controls are likely to continue until the migrant flow from outside Europe subsides. Border controls will create administrative burdens for frequent intra-EU travellers. EU Member States will continue to implement EU Directives, which should create more cohesive compliance systems, making it easier for employers to stay compliant with laws and reducing the possibility of fines and penalties. Online systems will continue to be implemented to counterbalance increasing processing times due to high volumes of applications and understaffing in many countriesâ&#x20AC;&#x2122; immigration departments. Online system proliferation will on one hand increase immigration security, but on the other hand should improve travel efficiency where the systems work well (i.e. a pre-travel authorisation system is forthcoming in 2021 that will require visa-exempt nationals to obtain advance electronic approval but should make travel more efficient for non-risky travellers).

MENA Main Immigration Events

Middle Eastern countries are creating longterm and permanent residence programmes to boost investment while economies in the area are faltering. Specifically, the United Arab Emirates implemented two long-term residence programmes for investors and other highly-sought-after foreign nationals. Saudi Arabia approved a draft law that would

SONYA COLE

Sonya Cole is an Associate and Global Writer in the firm's Knowledge group, which provides internal and client guidance on new, changing and complex global issues. As the team's head writer, Sonya spearheads the Fragomen Client Alert writing process and drafts client materials related to global immigration policy. Fragomen is a leading firm dedicated exclusively to immigration services worldwide. The firm employs more than 4,000 employees and provides immigration services in more than 170 countries. Fragomen supports all aspects of global immigration, including strategic planning, efficiency, quality management, government strategies, compliance, reporting, and case management and processing. These capabilities allow Fragomen to represent a broad range of companies, organisations and individuals, working in partnership with clients to facilitate the transfer of employees worldwide. For detailed information about Fragomen, please visit www.fragomen.com

GLOBAL MOBILITY

Right Person, Right Role, Right Place: Promoting Global Mobility and Attracting Talent Getting the right person in the right role in the right place has been a mantra for Global Mobility professionals for a long time. It neatly sums up a key focus for the Global Mobility function as an enabler, partnering with the business to move the talent which is helping to execute on the organisation’s strategic objectives. Changes in the way organisations approach performance management coupled with the deployment of better technologies to facilitate performance management are helping organisations to ensure that they are consistently checking all three boxes not just for the length of an assignment but throughout an employee’s career with a company. This process is engaging employees with the organisation, enhancing their experience in the workplace and improving their output. Happy, productive employees. Global Mobility has a significant contribution to make to this process in ensuring that the key skills required for expatriate employees are embedded into employee development and performance management processes.

Identifying the Right Person

The traditional annual or bi-annual per formance appraisal process is suboptimal in supporting the process of identifying the right employee for an international assignment. Whilst there are candidate assessment tools available, most Global Mobility professionals we talk to admit that, especially for business critical assignments, identifying the right person is typically a line management decision. The challenge here is that the decision making process used by a line manager is likely to be somewhat flawed. The line manager will

potentially be in a position to intuitively know who the right person for a given assignment would be given their assessment of the skills required to meet the assignment objectives. That intuition can then be supported and reasoned backwards by evidencing performance appraisals. Given the absence of any other data this isn’t an unreasonable process and the line manager should be in a position to know their employee well enough to make the right judgement. There are two factors however that are not accounted for in this process. First, the line manager may not have accounted for their own cognitive biases and secondly, they may not have accounted

The traditional annual or bi-annual performance appraisal process is suboptimal in supporting the process of identifying the right employee for an international assignment for their own imperfect memory as relates to the performance and skills of the employee. Some social, decision-making, belief and behavioural biases are more commonly known than others. The halo and horn effects have been more widely documented

in business literature as have concepts such as stereotyping and hindsight bias. Fundamental attribution error (an overemphasis on personality-based explanations for behaviours and under-emphasis on situational influences), recency bias, selection bias and the Semmelweis effect, are just a handful of possible biases which may influence a line manager in the performance management process and identifying the right candidate for an international assignment. Arijit Goswami and Jatin Pandey’s recent paper looks at how credit attribution bias “leads to repeated and continued acknowledgment and disproportionate allocation of benefits to one or two individuals in a team” (Goswami and Pandey, 2019). Equally worthy of consideration is how are memories are formed, stored and potentially distorted. The concepts of false memory and the misinformation effect address the issue that not only do our brains misremember events but are entirely capable of storing fictious events, as memories. As Dr Julia Shaw says in her book The Memory Illusion, “Any event, no matter how important, emotional or traumatic it may seem, can be forgotten, misremembered, or even entirely fictitious” (Shaw, 2017). Daniel Simons, co-author of The Invisible Gorilla states, “We think that we see, notice and remember far more than we actually do” (Simons, 2011). These unconscious behavioural flaws add more weight to the argument that the traditional top-down observational performance assessment is inadequate in a modern organisational setting. For Global Mobility professionals it opens up the question of how international assignments are resourced.

Self-Identification

Before we leave this subject it’s worth considering the influence of biases on selfinitiated moves. Generally, we are seeing an increase in the number of self-initiated moves and this is widely attributed to younger generations in the workforce. Issues arise for both the employee and employer in this scenario when the self-initiated move doesn’t work out. Here, rather than the line manager being responsible for selecting the right individual with the right skills for a role, the employee is self-identifying. Whilst the corporate organisation is likely contributing very little to the move from a

INTERNATIONAL HR ADVISER SUMMER

financial perspective, the chances are that the requested move has been agreed on the basis talent management and employee retention. The disruptive effect on the organisation and the employee when this doesn’t work out can therefore be significant. Organisations we’ve spoken to recently have been able to provide plentiful examples of self-initiated moves failing. The challenge for Global Mobility is providing the right tools and support for the employee to make a candid self-assessment as to whether or not the move is right for them. The employee for their part may be influenced by an over-confidence bias akin to the Dunning–Kruger effect.

Digital Solutions

MIT Sloan Management Review and McKinsey & Company published a research report earlier this year entitled “Performance Management’s Digital Shift” (Schrage, Kiron, Hancock, Breschi, 2019), which points to several key trends which should be of interest to Global Mobility professionals. Sounding a death knell for the traditional performance appraisal which assesses past performance, the report highlights the future of data-driven performance management with a focus on continuous feedback and skills development. The report draws attention to forward-thinking organisations using artificial intelligence to “nudge” employees with datadriven recommendations both in relation to performance and professional development. This is a positive development from a Global Mobility perspective as it heralds a more scientific approach to filling roles. With better data on the skills available in the organisation, managers can draw on a global pool of talent from within the organisation to match the role vacancy. Moreover, an emphasis on feedingforward will help employees with a desire to work in another country, better understand their own skillset and those desirable to manage successfully in other cultures. Compare this to a check box or the question on the annual appraisal asking whether or not the employee is globally mobile. Next role repatriation planning and utilising skills gained whilst on assignment, mainstay areas typically cited as a cause of postassignment attrition, have the potential to be better managed with this type of technology and people-analytics. The report takes the example of IBM which has developed its own AI to predict which employees are likely to leave the company, estimating that the improvements in employee retention have saved the company in the region of $300 million. This design for the future of performance management is in lockstep with the generational shift in the workforce. As Venne and Hannay conclude in their paper on Generational Change, the Modern Workplace and Performance Appraisal:

“A focus on the developmental aspect of performance management in order to improve future performance with the goal to increase productivity, build skills, and develop competencies makes more sense in today’s workplaces given cultural/generational and career pattern shifts” (Venne and Hannay, 2018).

Bridging The Gap

Whilst the technology the MIT Sloan Management Review and McKinsey report talks about is very real and being used, it admits that start-up companies have been quicker to adopt this type of technology as they haven’t been held back by legacy HRIS systems. Many Global Mobility professionals will point out that GM is very much a downstream beneficiary of technology if it does indeed benefit at all. Respondents contributing to a recent RES Forum survey reported that financial investment is seen as the largest inhibitor to the application of AI in Global Mobility (Bader & Schulz, 2019).

Organisations are taking more practical steps to create awareness In practice, organisations are taking more practical steps to create awareness around Global Mobility and to get the right person in the right role in the right place. As we’ve discussed in previous articles, policy flexibility is one lever corporates are using as an enabler. Awareness can be raised through FAQs for line managers and employees on intranet pages, whereas some organisations utilise community tools such as Yammer. Small changes can potentially make a difference in terms of positioning Global Mobility such as locating mobility information under the careers section of the intranet and providing information on competencies for managing internationally.

Conclusion

There’s no doubt that with the right systems in place, a data-driven approach to developing and assessing the right skills for an international assignment can only lead to a more scientific approach to filling roles and self-reflective assessment of an employee’s own abilities

to work in a different cultural environment. Continuous feedback should help facilitate a better understanding of assignment success and drive down instances of assignment failure. The capacity for organisations to use mobility more effectively as a career development, employee engagement and retention tool is unquestionably available given a willingness to take a different approach to performance management as well as to embrace new technologies. References: • Bader, B., Schulz, K., (2019) Shiny New World? Global Mobility in The Age of Artificial Intelligence and Robotic Process Automation. RES Forum. Quarterly Report March 2019 • Goswami, A., Pandey, J., (2019) "Credit attribution bias and its impact on employee morale and retention", Strategic HR Review, Vol. 18 Issue: 2, pp.80-83 • Shaw, J., (2017) The Memory Illusion, Random House Books • Schrage, M., Kiron, D., Hancock, B., Breschi, R., (2019) “Performance Management’s Digital Shift”, MIT Sloan Management Review. Feb2019 Special Issue, p20-45. 26p. • Simons, D., (2011) Seeing the world as it isn't YouTube video, added by TEDx Talks [online] Available at https://www. youtube.com/watch?list=PLE9CC1569697 BFF96&v=9Il_D3Xt9W0 • Venne, R., Hannay, M., (2018) “Generational Change, the Modern Workplace and Performance Appraisal: Why Changing Workplaces Need a Developmental Approach to Performance Appraisal, American Journal of Management, Vol. 18 Issue 5, p88-102.

STUART JACKSON

As Account Director at Sterling Lexicon, Stuart focuses on working with clients to optimise their global mobility solutions . Stuart has worked in global mobility for seventeen years. His broad experience of working with different programme sizes across a variety of industry sectors helps to bring success to clients' programmes and wider business strategies. If you would like to discuss any of the points raised in this article or learn more about Sterling Lexicon, please do not hesitate to contact Stuart Jackson at stuart.jackson@sterlinglexicon.com.

FOUR SEASONS RESIDENCES Introducing our collection of bespoke Residences at Four Seasons Hotel London at Ten Trinity Square – perfect for a stay of 1 night or more. In a prime location, steps from the Tower of London, Tower Bridge and the River Thames, enjoy the comfor ts of home, enhanced by the services and amenities of Four Seasons Hotel London at Ten Trinity Square and the Ten Trinity Square Private Club. Embracing the philosophy behind the restoration of Ten Trinity Square - an iconic Grade II*-listed building and former headquar ters of the Por t of London Authority - these one-of-a-kind accommodations pay tribute to the legacy of the great British Empire. Each residence has been envisioned by London’s award-winning interior designers to deliver the very best of London living. MARTIN KEMP • DAVID LINLEY • RICHMOND INTERNATIONAL • FOX LINTON INTERIORS Arrive through the majestic Four Seasons Hotel entrance, or your very own discreet residential entrance. Options range from two to four bedrooms with select units offering fireplaces and terraces with spectacular views over the Tower of London, Tower Bridge and the River Thames.

Zahra ElAfany Residences Sales & Marketing Manager Mobile: +44 (0)7814 659 378 • Email: zahra.elafany@fourseasons.com FOUR SEASONS RESIDENCES, 10 TRINITY SQUARE, LONDON EC3N 4AJ FOURSEASONS.COM/TENTRINITY • +44 (0)20 3297 9300

INTERNATIONAL HR ADVISER SUMMER

Settling Into Antwerp

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More and more expatriates and companies are finding their way to the city which is most famous for its diamonds, Antwerp. With its magnificent ancient buildings, squares, alleyways, and its rich and diverse culture, Antwerp is an appreciated city with tourists and city-hoppers. It has a population of 520.000 and is Flanders’ largest city. It is now home to a diverse range of global citizens, with large numbers from the Netherlands, France, Germany, Spain and Italy. Most residents in Antwerp speak French and English, and the official language is Flemish (a variation of the Dutch language). As it has a policy of tolerance and trade, it has attracted many foreign merchants and bankers from all over Europe – resulting in a large number of expatriate communities living in this city.

By the first half of the 14th century, Antwerp had become the most important trading and financial centre in Western Europe. Historically, its reputation was based largely on its seaport and wool manufactories. In more recent times, Antwerp’s other great mainstay became the diamond trade - busier than Johannesburg or New York - that takes place largely in the diamond district. 85% of the world’s rough diamonds pass through this district annually, making it the global diamond trade’s busiest centre. It is also Europe’s second largest seaport, after Rotterdam. Antwerp sits on the upper end of the estuary of the Scheldt which has direct access to the North Sea. Antwerp's docks are connected to the inner land by rail, road, river and canal waterways and has attracted people of all origins and cultures.

Nowadays the city also hosts a lot of people who wish to settle here for other reasons than what the harbour has to offer, and it offers great appeal to expatriates of any lifestyle - families with children, singles, or those who need green space or plenty of fine art and dining. Although many of Belgium’s major institutions are based in Brussels, such as the European Commission and the NATO headquarters, Antwerp invests a lot in multinationals and international organisations, and companies like ExxonMobil, Bayer, Atlas Copco, have been based here for many years. As in Brussels, a real community of expatriates and highly educated internationals are emerging from here. The city itself is also following this trend, bars, restaurants and events that are focused on the expat community are popping up more frequently. The schools and universities here have an excellent reputation; state and private institutions alike. Education is both formal and free in Belgium and is compulsory from 6 to 18 years of age, and there are lots of choices for children of university age in Antwerp with 40+ university campuses throughout the city. The healthcare system also enjoys a good reputation, and if you are living and working in Belgium, you will be entitled to subsidised healthcare. What remains to be resolved though is the lack of temporary housing in this city. In order to answer the demand for quality corporate housing, more accommodation providers are building properties and apartments. The port was initially developed in the north of the centre, and the neighbourhood still features industrial marine architecture, now with newer accents, such as the angular, “out of this world” Port House. Former warehouses have been transformed into modern lofts and apartments, making it ideal for young professionals or families looking to live in one of the trendiest areas of Antwerp. It is based near ‘het Eilandje’, an attractive and trendy quarter between the port and the city centre. Once a neglected neighbourhood of Antwerp, Het Eilandje’ which means “the little island” - it has grown into one of the city’s most popular locations for expatriates and tourists. Overall, Antwerp is an accessible, attractive and friendly city. It is becoming increasingly popular, as more and more companies and businesses look to moving here as a key European location and destination.

ANTWERP BBF SERVICED APARTMENTS

BBF set foot in Antwerp with Park Tower at the beginning of 2019. BBF offers here comfortable one and two bedroom apartments with amazing views on the city and harbour skyline. The apartments are really designed for the expat community who are looking for an affordable easy solution for temporary housing with that extra bit of comfort. During their stay, they will be able to enjoy the services that come with our standard rental package. This is the product that BBF has been providing since the start and which gives us a market leading spot in the industry of corporate housing in Belgium. Together with our building promoter Candor, BBF is getting ready for Initium, a new project which is expected by the end of this year. Its location in the centre of Antwerp will certainly attract those who want a perfect base from which to discover the city by foot. This apartment complex will have 70 brand new serviced apartments and 60 underground parking spaces. Weâ&#x20AC;&#x2122;ll again be able to offer perfect solutions for short and long-term stays with a focus on corporate internationals and expats. But of course, these kinds of apartments are also an attractive solution for housing students with a higher budget or even short- term contractors. Practically all of BBFâ&#x20AC;&#x2122;s apartment blocks offer underground parking making it that more attractive for people that are over here by car. Furthermore, public transport is always within walking distance for our carless residents. Tenants of Initium will also be able to enjoy a co-working space and a gym will also be made available. To make it even more compatible with the current high requirements it will have a lot of natural light, an inner garden and solar roof panels. The arrival of BBF in Antwerp offers many companies a simple solution to accommodate their employees. Many relocation agencies for whom it is not always obvious to find suitable accommodation for a longer period in Antwerp are already looking forward to these opportunities. This expansion will not only strengthen BBF's leading market position, but it will also contribute to the credibility of serviced apartments as a product, on the Belgian market. Visit www.bbf.be for further information.

INTERNATIONAL HR ADVISER SUMMER

It’s Time For A Company Move. Now What? Don’t Find Yourself A Passenger On The Decision Train For many people, the thought of their company moving to a new location can be terrifying. So many questions race through their head: What does this mean? Am I losing my job? What about my family? My spouse? My kids? This is a human and very normal reaction to such an announcement, and it happens more often than not. It boils down to human nature and the fear of ambiguity. What can human resource professionals do to mitigate the worry and make the process of a group move less stressful for employees?

1. Get A Seat At The Head Table

While human resources may not be the traditional lead in a company group move, it’s imperative to get a seat as early as possible. A common theme is human resources is often the last to find out about a company move and is brought in after the decision has been made. They’re told what to do versus being a part of the strategic planning. As a general rule, executive level stakeholders lead the group move initiatives within an organisation. While this may be perfectly fine, it is essential that human resources are a part of the group move process from the very start. Human resources can provide insight to strategic planning, can play a critical role to the “buy in” strategy, and are subject matter experts to the human factor.

2. Know Your Employees

Knowing your employees is one thing that is often forgotten from the group move management leadership point of view. This is core competency of the human resources function, and the point about having a seat at the table only reinforces this. As an HR professional, compensation and benefits information are at your fingertips, if not sometimes top of mind. It takes the numbers out of the group move strategy and replaces it with employee names and demographics. With this information, you’ll bring valuable insights and considerations to the management table, inviting stakeholders to think about and evaluate important questions such as “where do our employees live? How many have families? How many are single? Who is critical to the success

of the organisation from an acceptance perspective? Who is ideal, but can be recruited locally?”. All of these questions can help frame how an organisation should approach its relocation package and offering. Getting personal helps the leadership team understand the potentials or the risks dependent on that mix of the population. A proper up-front assessment of a company’s actual and active population can shape and guide the strategy of a group move from the very beginning. This is first and foremost before embarking on the journey.

3. First Impressions Are Everything

Just like a job interview or first date, first impressions are everything when it comes to group moves. The approach and delivery of the communication are paramount to a successful execution. It can help put nervous employees at ease and answer many of the questions they may have. The moment a company announces it’s moving to a new city or state, the human brain tends to stop right there. They hit a wall and can’t move past it because they’re blindsided. Everything that’s said afterwards is just words because they’re thinking about all of the things mentioned earlier – my family, I’m losing my job, what next and so forth. Human resource professionals need to question and coordinate efforts with communications and other leaders, on how to best craft the initial announcement of change. And sometimes, one size does not fit all. You may need to tailor communications for different company roles or internal stakeholders. Key factors that are critical to success are the message, the timing and action.

4. What’s The Offer?

Another key point that ties back to knowing your employees is the offering, or package planning. This allows for a fair assessment of how many will actually make the move and how many will choose to leave the company. It’s also fair to evaluate how this affects things such as revenue generating positions and impact on the bottom line, what’s the bearing on support functions and so forth. All of these considerations then help with the delivery of the message and its effectiveness. Delivering a real message with a transparent approach will foster visibility and forecasting

into this particular group of employees to give you and your organisation the best chance possible of a high acceptance rate.

The Takeaways

Change is never easy, and a job relocation can be extremely challenging and frightening for employees. While a company move presents a challenge, it’s also an opportunity for a new beginning and positive start. The key takeaway when handling a company group move is to ensure human resources has a seat at the table when critical decisions are being made and planned. Secondly, assess the company’s employee population to determine the best approach when communicating and determining the offers. Above all else, a wellthought out communications plan on how to communicate the move to employees is essential for a successful group move. There are many subject matter expert resources in the market to help position you for success! For more information and to receive a free download of the “Passenger on the Group Move Rollercoaster” presentation, please visit www.crownworldmobility.com/ insights/crown-world-mobility-to-presentat-shrm-talent-conference.

LISA MENDELSOHN

Regional Director, Americas, Crown Relocations. Lisa is responsible for creating and delivering strategy around account management and business development. She has extensive experience in leading global teams to deliver domestic and international relocation services to multinational clients. With over 15 years in the mobility industry, Lisa has led, developed and executed strategies for a wide range of corporate mobility programmes. Visit www.crownworldmobility.com

SERVICED APARTMENTS

The Global Business Travel Buffet - For Travellers Who Are Eager To Serve Themselves The self-service economy – it’s how things get done now, and has been for years. Self-checkout kiosks at the supermarket, where you scan and bag your own groceries for a quicker visit. Pump-your-own petrol. Car parks without attendants, where a machine gives you a voucher ticket on the way in, and you pay with a credit card as you drive out. Not to mention, restaurants where you can have a proper sit-down meal, but not be rushed to get back to the office because you simply serve yourself from a buffet line. It’s a world that our grandparents would not have accepted, but with today’s mindset of personal choice and time constraints of modern life, we embrace it. That self-service model which has been available for consumer and transient business travel is now available for extended stay business travel.

The Business Travel Planning Buffet – Satisfaction For All

The days of business travellers putting in requests for extended stay accomodations, and slowly awaiting confirmation from corporate travel departments, are quickly disappearing. Those days of the past likewise meant that busy corporate travel managers had to handle not only a daily stack of business trips for individual travellers, but also the most complicated travel plans, such as accommodations for large employee teams in unfamiliar destinations With today’s shift from corporate-centric business travel planning to a travellercentric model, everyone wins. Individual travellers want more choice and control about where they’ll live while on a distant extended stay assignment, how they’ll get there and even how they’ll fill their free time for better work-life balance. With customisable, single-point booking resources for extended stay accomodations, corporate travel departments can have more control

about how much their travellers spend, who is authorised to make their own bookings, how costs are tracked, and what types of accommodations are acceptable within corporate guidelines. In addition to all these benefits of this new one-stop-shop, DIY approach to extended stay business travel, there’s the ubiquity of mobile devices, allowing everyone immediate access to business travel planning anytime, anywhere. This comes with the capability to track reservations, make changes and command customer service in real time. The “self-service buffet” era of long-term business travel planning is wide open. It’s fresh, it’s hot, and it offers immediate gratification in an aspect of global business that was starved for a better way to do things.

travel managers now have more time to plan travel for, say, a cadre of C-suite executives or a project team of 100 employees. They can also still maintain control over costs, travel policies and property supplier relationships, keeping daily logistical frustrations at bay. Just like lunch at everyone’s favourite new corner buffet restaurant, today’s new style of extended stay business travel planning is less expensive, faster, and the best way for everyone to see all available options in one place and choose exactly what they want. With today’s technology and accessibility, global business travel has never been more deliciously satisfying.

The “self-service buffet” era of long-term business travel planning is wide open Benefits Beyond The Obvious

The ability for individual travellers to choose and book their own options has more benefits than just better time management for organisations and their on-the-go employees. This new found time efficiency brings cost efficiency, as well, by streamlining the entire planning and booking process. It creates an ancillary but noticeable uptick in job satisfaction, which translates to employee retention. Why wouldn’t staff and executives, who routinely travel for extended stay work assignments, be happy about having a say in their travel plans? The new paradigm makes it easier for companies to attract and retain staff for their travel planning departments, too, as

KAMAL ADVANI

Chief Executive Officer, BridgeStreet BridgeStreet is using technology to push the industry forward with its technology platform, where it is EASY to LIST and BOOK extended stay experiences. To meet the extended stay needs of tomorrow’s Business Traveller, we have re-imagined the level choice, convenience and transparency that is possible. Yes, it’s a bold new world. And we’re excited about it! Visit BRIDGESTREET.com

INTERNATIONAL HR ADVISER SUMMER

Demystifying Digital: Global Mobility’s Digital Journey The term ‘Digital’ has become ubiquitous in business today. But what does it mean in reality? What do we need to do to ‘become digital’ and why does it matter for global mobility?

Figure 1 - Experience, Insights and Speed can be achieved by digital levers

Business leaders are grappling with these questions whilst also navigating significant external forces – demand for greater connectivity, increased competition, heightened consumer power – as well as traditional corporate drivers such as greater efficiency, improved productivity and enhanced employee experience. ‘Becoming digital’ is a critical element of any strategy to meet these challenges in the 21st Century. The same themes play out in the area of global mobility. In this article we go back to basics to understand why digital is so important, how you can reimagine a digital future for your global mobility programme, and the areas to consider to practically make it happen.

Why Digital?

When thinking of how we become digital, frequently the first things that come to mind are tools and devices. We make the mistake of focusing on the ’what‘ before answering the ’why‘. If we ask ourselves “why digital?” the answer becomes clearer. It is about becoming connected, integrated and efficient. It’s about fuelling growth and continuous innovation through real-time customised experiences,

leveraging predictive insights, and being agile enough to deliver at unparalleled speeds, as we see in figure 1. Digital isn’t ‘a technology’ but a strategy; a new era of business, to fuel cost-efficient growth. A proliferation of disruptive technologies are transforming business models and radically changing the workplace – as well as changing how work is actually approached. Additionally, the workforce is diversifying (the alternative workforce is now mainstream,

Figure 2 - Global Mobility programmes in the digital era

including contractors, freelancers, gig and crowd) and with this comes a step-change in expectations from workers, with regard to engagement and motivation. Despite these shifting demands global mobility is in a truly unique position from which to incubate new ideas, forge partnerships from within and outside the organisation, and to foster digital innovation. Increasingly we witness global mobility teams, who serve multiple business

INTERNATIONAL HR STRATEGY stakeholders and have access to swathes of critical people and talent data, acting as catalysts for wider HR digital transformation.

Reimagining A Digital Future For Global Mobility

Global mobility is coming of age digitally. Once typically viewed as a transactional function that simply delivered international assignment services, mobility professionals have evolved into value-added ‘Trusted Advisor’ roles, and due to this realigned perception are now

being asked to lead strategic initiatives such as digital transformation. Digital transformation affords the opportunity to step back and truly reimagine the global mobility offering. The left hand side of Figure 2 shows where global mobility functions have been traditionally focused, but forward thinking organisations are shifting to the right. Digitallyenabled global mobility functions are humancentred, agile, data-driven, strategic and deliver personalised services to employees.

Naturally technology plays a critical role in any digital transformation, and an array of tools and methods are available that can positively impact the global mobility programme. These new digital accelerators are at the disposal of most organisations, but can be overwhelming in a global mobility context. Figure 3 provides a high-level overview of some of the more common digital levers and how they can be applied within global mobility. To further understand how global mobility

Figure 3 – Common digital accelerators used in Global Mobility programmes What is it?

Put simply?

Example global mobility use case

Digital content

An umbrella term to refer to many different communication channels in order to better engage employees, such as 2D/3D animations, interactive pdfs, videos, podcasts, gamification, training modules, apps, portals.

Face to face meetings to educate employees and the business are time consuming and expensive. Employees never read our policies or our newsletters. Short animations and films could be used to better engage employees and allow them to consume information anywhere, anytime, in bite sizes. Additionally, interactive e-learning modules could be used to provide deeper engaging learning.

Robotic Process Automation (RPA)

Mimicking distinct manual processes carried out by humans and automating them in some way using software. These processes are usually repetitive, high volume and rule based.

The allowance updates are time consuming and subject to human error. RPA could be used to manage periodic allowance/exchange rate updates. The ‘robot’ could logon to the data provider’s system, extract the relevant information, upload the data to your system, run the new calculations/balance sheets, check for any discrepancies (such as negative values) and flag these, then send relevant documents to assignees.

Immersive technology

Any technology which replicates reality without the user being physically present in that environment. Virtual Reality: creates a digital environment that replaces the user’s real-world environment. 360 Video: provides a new perspective that allows users to look every direction. Augmented Reality: overlays digitally- related content into the user’s real-world environment.

‘Looksee’ trips are costing us a lot of money – especially when the assignment is ultimately not accepted by the employee. A headset which is preloaded with the assignee’s host location so they can virtually explore without actually being there. For example, different neighbourhoods for housing, office location, schools etc. It could also be used after they have accepted the offer so they can find out more about their host location and thereby improve the employee experience.

Artificial intelligence (AI)

AI is the simulation of human intelligence and reasoning by software programmes.

There is a vast volume of emails received and we are struggling to cope. Using AI we could monitor a global mobility mailbox, pick out key words in incoming emails and deliver actions on those emails. For example, an assignee asking to be sent a policy.

Machine learning

Machine learning is a subset of AI and is where the software goes one step further and ‘learns’ by identifying patterns or themes.

Cost projections are not accurate. Cost projections are calculations that are usually run over static data which is not updated often. Machine learning could be embedded into cost projection calculations whereby it looks at current compensation data of assignees and learns patterns dependant on rules (such as country, family size etc.). These learnings can then be applied to the calculation for more accurate results.

Chatbot

Software which mimics human interaction with the user either textually or aurally.

Employees are asking a lot of questions and we don’t have the bandwidth to cope. A channel for employees to ask questions about their upcoming assignment. This could be via a website, text/WhatsApp or a phone line. The chatbot then responds to the answer with the ability to speak to a human if the assignee is not satisfied with the answer.

Data Analytics

Data Analytics uses the power of data to provide valuable insights. It is not just about the visualisation of data – it is using the data to make key decisions.

We have a lot of data. How do we use it for strategic or operational gain? Analytics can be used to monitor trends in your global mobility data, and drive programme insight. Specific areas of focus include total programme costs, employee satisfaction, vendor performance, demographics. The only limit is your data!

INTERNATIONAL HR ADVISER SUMMER

Figure 4 – Output from Deloitte Reimaging Digital Mobility Lab, 2019

can be re-imagined in the digital age, we asked global mobility leaders from over 25 organisations to share their views. The leaders were asked to envision the ideal endto-end process for employees, and how their

mobility programme might be enhanced across the four main phases of the mobility lifecycle - Opportunity, Offer acceptance, Pre-move planning/Arrival and Repatriation. Leaders shared their excitement about

Figure 5 – Deloitte’s Digital DNA Maturity Spectrum

using digital accelerators to transform their programmes. It was clear that digital transformation, even when undertaken in incremental steps over time, would lead to positive outcomes for both employees and the

INTERNATIONAL HR STRATEGY Figure 6 – Output from figure Deloitte Reimaging Digital Mobility Lab, February 2019

business. The lifecycle and some of their areas of focus in each phase are illustrated in Figure 4.

What Does The Journey Look Like?

‘Being digital’ is a journey, and like any journey it will be uniquely different for each traveller. Businesses strive to constantly evolve, but each organisations’ evolution will have different objectives, variable paces between each milestone, and an overall duration that suits their specific needs. The ‘Digital DNA Maturity Spectrum’ (Figure 5) acts as a first step to understand current state and where the programme ultimately needs to be. Reflecting on and placing both ‘today’ and ‘tomorrow’ on the maturity spectrum is critical in determining the kind of journey, and role, that global mobility can play. In our experience one size does not fit all, and each organisation should align to its own strategy, goals and organisational culture. When asked about the digital maturity journey, global mobility leaders reported a number of factors to consider. Figure 6 outlines these enablers, blockers and minimal viable changes (MVCs) to drive forward a digital global mobility transformation. In our view, organisations who have been most successful on the digital journey are clear about the characteristics of the digital impact they need to create, where they are now and where they need to go. We believe that a problem solving philosophy using design thinking methodologies which focus on people will create offerings that are intuitive, and deliver most value when undertaking a mobility transformation. There are many questions to consider across four key aspects in order to define the journey to drive the digital model such as: 1. Vision & Strategy – is digital clearly defined for the organisation? Are the strategy and measurable impacts of digital enablement clearly communicated? 2. Technology – is there a clear strategy,

roadmap for robotics, automation? How is performance measured, visualised, reported? 3. Talent & Culture – how is innovation/ experimentation rewarded? Is there the right talent to drive the digital initiatives? Is there the right talent for the future GM organisation? How are new talents defined, acquired, developed? 4. Process & Governance – how are augmented teams of human & digital governed? How are employees engaged?

transformation, Deloitte Insights, 2019 • Coming of Age Digitally, MIT Sloan Management Review and Deloitte Insights, 2018 • Back to the future, Assessing the predicted 2018 GM trends and their continued impact in 2019, Deloitte Global Workforce, 2019 • Digital Innovation in Mobility, Deloitte Global Workforce, 2017

RUMI DAS

Director, Global Workforce, Deloitte LLP 2 New Street Square, London, EC4A 3BZ D: +44 20 7007 0433 rudas@deloitte.co.uk www.deloitte.co.uk/globalworkforce

Conclusion

Digital transformation is a journey towards becoming a digital enterprise or programme. This is not a fixed destination: A digital enterprise is continually evolving, always seeking to take full advantage of new technologies to innovate what it offers, how it delivers and how it operates. Digital maturity, consequently isn’t an endpoint. Global mobility functions are undergoing rapid and profound change and need to adopt a mind-set for continuous experimentation and innovation. There is a great opportunity for global mobility leaders to use innovative technologies and communication tools to promote engagement, enhance collaboration, wellness and a sense of purpose with employees. Operating in a digital way will also deliver great solutions, increased speed and decreased costs for the business. Whilst the overarching concept of digital can seem daunting at first, digital transformation can be easily realised by taking small steps, quickly, whilst always thinking about the bigger picture. Why not start plotting your journey now…? References: • Leading the social enterprise: Reinvent with a human focus, 2019 Deloitte Global Human Capital Trends • Pivoting to digital maturity, seven capabilities central to digital

EMILY GKIKAS

Associate Director, Global Workforce, Deloitte LLP 2 New Street Square, London, EC4A 3BZ D: +44 20 7007 3459 egkikas@deloitte.co.uk www.deloitte.co.uk/globalworkforce

DELOITTE’S GLOBAL WORKFORCE PRACTICE

Deloitte’s Global Workforce team partners with organisations to establish future-proof global workforce strategies, tailored to client specific business and talent objectives. We embrace design thinking to help clients reimagine and transform their approach to talent mobility, focusing on areas including policy and process design, strategic and operational transformation, global talent strategies, digital innovation, planning and deployment, and workforce analytics. Find out more here www.deloitte.co.uk/globalworkforce

GLOBAL TAXATION

Global Tax Update CHINA

Announcement of PRC Individual Income Tax policies for non-resident individuals and resident individuals having no habitual abode in China. Revised PRC Individual Income Tax (“IIT”) Law and the Implementing Regulations of PRC IIT Law, relevant policies for nonresident individuals and resident individuals having no habitual abode (“non-domicile individuals”), have been announced. Key Updates • Non-domiciled individuals residence status To determine a non-domiciled individuals’ residence status in China, if they are physically present in China for less than 24 hours in a day, that day will not be counted as a day of residence in China. • Restart of six-year period Non-domiciled individuals who resided in China for more than 6 consecutive years would be taxed on their worldwide income starting from the seventh year if they remained resident in China in that particular year. The announcement stipulates that the six-year period will be restarted from Year 2019 and thereafter. That is to say, nondomiciled individuals’ residence status in previous years will not be counted towards the six-year period. • Update of calculation method for nondomiciled Individuals In the past, income received by nondomiciled individuals from both China and overseas was combined to calculate the total PRC IIT liabilities. Thereafter, the actual China-related IIT liabilities were apportioned based on their days of presence in China. The above calculation method has been replaced with an updated calculation method. According to the new calculation method, Chinese and foreign sourced income will be apportioned based on the non-domiciled individuals' days of physical presence in China. Then the actual China IIT liabilities will be calculated on the apportioned income. • Preferential treatment on annual bonus income and equity based incentive income Based on the announcement, nondomiciled individuals can be entitled to adopt preferential treatment on bonus and qualified equity based incentive income. For calculation purposes, such income can be treated as separate income and it does not need to be combined with regular wage and salary income. There are specific formulas to use to calculate the tax due.

• Impact • Non-domiciled individuals have been given preferential conditions for their PRC IIT assessment • New "Six-year" rule aims to attract more foreign companies and foreign individuals to invest and work in China • Non-domiciled individuals' tax calculations will become more complicated than previously due to different calculation formulas to be applied • The rules on the tax treatment on non-domiciled individuals' annual bonus and equity based incentive income are now clearly stipulated. BDO Comment We recommend that withholding agents and non-domiciled individuals become familiar with the relevant tax treatment so they can fulfil tax filing obligations accurately and avoid potential non-compliance risks. Companies/ non-domiciled individuals should consider advanced tax planning with respect to the PRC IIT taxation. Do closely follow further updates regarding the tax filing system as well as local practice and take relevant actions accordingly.

The Inland Revenue and MPF Schemes Legislation Bill 2018 seeks to encourage taxpayers to contribute more to their longterm retirement benefits

HONG KONG

New tax-deductible contributions to enhance long-term retirement and healthcare benefits Two new amendments have been passed that aim to encourage individuals to save more towards their retirement and healthcare. Both of these amendments were introduced on 1 April, 2019. The Inland Revenue and MPF Schemes Legislation Bill 2018, seeks to encourage taxpayers to contribute more to their longterm retirement benefits. Taxpayers will be able to claim concessions on salaries tax and personal assessment for qualifying deferred annuity premiums and voluntary contributions to the newly introduced Mandatory Provident Fund Tax Deductible Voluntary Contributions (MPF TVCs) scheme. In addition, the Voluntary Health Insurance Scheme – Inland Revenue (Amendment) (No. 4) Bill 2018 (VHIS Amendment 2018), provides tax concessions to taxpayers who pay qualifying premiums for themselves or specified relatives under the certified Voluntary Health Insurance Schemes (VHIS). Previous/Existing Employee Mandatory Provident Fund (MPF) Contribution Schemes Previously, an employee’s mandatory MPF contributions were capped at HKD 1,500 a month for each job they held. In each year of assessment, a cap of HKD 18,000 of an employee’s mandatory contributions was tax-deductible. However, employee’s voluntary contributions paid into the traditional recognised MPF scheme were not tax-deductible. New MPF Tax-Deductible Voluntary Contributions Voluntary contributions made to the Mandatory Provident Fund Tax Deductible Voluntary Contributions (“MPF TVCs”) scheme (MPF TVCs) are tax-deductible voluntary contributions that an employee chooses to make on top of their mandatory contributions and requires no employer involvement. The administration costs of handling both tax-deductible and non-taxdeductible voluntary contributions within one account would be substantial. Therefore, taxpayers who want to make employee’s voluntary contributions to the MPF TVC scheme need to set up and pay into a different contribution account in order to receive tax concessions for making those voluntary contributions.

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Individuals who are currently participating in an occupational retirement MPFexempted (ORSO) scheme can also choose to open an MPF TVC account with an MPF Trustee and benefit from the tax incentives for making these voluntary contributions. Each eligible person can have only one MPF TVC account under a registered scheme. A person is eligible for an MPF TVC account if they are: • A current employee member of a registered MPF scheme • A current self-employed member of a registered MPF scheme • A current personal account holder of a registered MPF scheme; or • A member of an MPF-exempted ORSO scheme. Tax Deductions The maximum tax-deductible amount for contributions to qualifying deferred annuity premiums (QDAPs) under a qualifying deferred annuity and/or an MPF TVC scheme is HKD 60,000 for each individual. This amount includes MPF TVC and QDAP contributions. Withdrawal Rules On Accrued Benefits Accrued MPF benefits from mandatory contributions are paid to MPF scheme members upon retirement at age 65, with exceptions in specific circumstances. The same restrictions on withdrawing accrued benefits from mandatory contributions applies to the MPF TVC. What Should Employers Do To Meet Employees’ Requirements? Employees can set up an MPF TVC account with an MPF Trustee and make direct payments through the trustee without going through their employers. However, employers still need to consider how they can meet their employees’ requirements. • If employees currently make voluntary contributions to the company’s MPF scheme, the company might want to advise employees of the TVC Amendment 2018, so that employees can consider setting up an MPF TVC account and make voluntary contributions to the MPF TVC account instead to benefit from the tax deductions on their contributions • The company may also want to ask employees whether they wish to continue making voluntary contributions to the existing MPF scheme (due to its flexible withdrawal rules) or whether they would prefer to make voluntary contributions to an MPF TVC account. Voluntary Health Insurance Scheme (VHIS) Another new tax deduction that came into force in the year of assessment 2019/20 applies to qualifying premiums paid into a

government certified VHIS from 1 April 2019. Taxpayer or spouse may claim tax deductions of up to HKD 8,000 per insured person on salaries tax or personal assessment for premiums paid to the certified plan under Voluntary Health Insurance Scheme as policyholder for each year of assessment from year of assessment 2019/20. The taxpayer can also claim for qualifying premiums paid for specified relatives, such as their husband or wife. There are no limitations on the number of qualifying insured persons whose premiums the taxpayer can claim deductions against in a year of assessment. BDO Comment The introduction of the tax deductions for annuity premiums and voluntary MPF contributions, in addition to voluntary health insurance premiums, will be welcomed by all Hong Kong citizens who can claim a deduction under salaries tax or personal assessment. The above tax incentives for individuals are effective public subsidies to enhance retirement and healthcare benefits for the aging population of Hong Kong.

SINGAPORE

Lapse of not ordinarily resident (“NOR”) scheme Current Tax Treatment A taxpayer who is granted the NOR status for a five-year period and is a tax resident in the year of claim will receive the following tax concessions: • The portion of Singapore employment income corresponding to their business days spent outside of Singapore will be exempt from tax. This is subject to a minimum tax equal to 10% of their total employment income. To qualify for this concession, the taxpayer must have:• Spent at least 90 days outside of Singapore for business purposes; and • Have Singapore employment income of at least $160,000. • Tax exemption of employer’s contribution to non-mandatory overseas pension fund or social security scheme, subject to a cap and meeting qualifying conditions. Proposed Tax Treatment Change Effective YA 2021, the NOR scheme will lapse. The last NOR status for a five-year period will be granted in YA 2020 and will expire in YA 2024. Individuals who have been accorded NOR status will continue to enjoy the tax concessions until their NOR status expires if they meet the relevant qualifying conditions. BDO Comment An employee with NOR status and who travels substantially enjoys significant tax savings under the time apportionment basis of assessment in the NOR Scheme. Without this concession,

such an employee will pay a higher tax, and where taxes are borne by the employer, it will mean an increase in business costs. The NOR scheme was introduced in 2002 to attract talents with regional and global responsibilities to relocate to Singapore, and to incentivise Singapore as a regional/global hub location. The scheme has seen great success in attracting such talent over the years. In view of the lapse of the NOR scheme, companies are recommended to review their current employment arrangements in respect of expatriate employees who may qualify for the NOR time apportionment tax concession. Some questions for the company to consider:1. Is there a need to reconsider the basis to package remuneration of future employees who may be impacted by the loss of NOR tax benefits? 2. If the company bears the taxes of these foreign employees, what is the impact to the business costs for future hires?

SWEDEN

Measures to mitigate the social consequences of a no-deal Brexit The Social Insurance Division of the Swedish Ministry of Health and Social Affairs has submitted a proposal with suggestions aimed at mitigating the consequences for individuals relating to social benefits during a transition period if a no-deal Brexit occurs. The suggestions would only be applicable if the UK leaves the EU without a withdrawal agreement. Background And Information When the UK leaves the EU, it will be considered as a third party country by the EU. If the withdrawal agreement comes into force when the UK leaves the EU, a transition period will be initiated during which the UK in practical terms will be treated as a member state. If a withdrawal agreement does not come into force this will lead to certain consequences. For example, the EU rules on social security coordination will no longer be applicable in a cross-border situation in relation to the UK. This will have an impact on individuals who have exercised free movement within the EU by living or working in the UK and one of the 27 member states. To deal with a no-deal Brexit, the proposal suggests a time limited regulation setting out a continued entitlement to social security benefits for individuals who had a right to receive these in the UK at the time of the withdrawal. Furthermore, the proposal suggests a regulation that makes it possible to utilise earned insurance, employment or residence periods or periods as selfemployed during the time the UK was part of the EU. This would be used to calculate the basis for application of benefits in

GLOBAL TAXATION another EU member state post Brexit. The same applies to the possibility of taking into account income, circumstances, benefits and events that have been received before the withdrawal of membership. In addition to this, the proposal also suggests a regulation enabling costs arising from healthcare performed in the UK, under EU-regulations, to be compensated during a transition period after the withdrawal. By establishing a new regulation, individuals will be given the possibility of readjusting to the effect of the UK’s withdrawal from the EU and to ensure continuity of individual benefits they already receive. The proposed regulation was to come into force in April 2019, but shall apply from the time of the UK’s withdrawal. Most Swedish people living or working in the UK currently do not receive any social benefits from the Swedish welfare system. There is also no reliable data on how many EU-citizens receive benefits from Sweden. As no statistics exist covering current benefits for EU citizens, it will make it hard to determine how many people will be affected by the UK leaving the EU without an agreement. The same applies for people with earned periods from the UK. Irrespective of the number of affected people, actions should be taken to enable a

reasonable transition for the individuals, but also to make it possible for individuals to utilise the earned period in the UK. BDO Comment The consequences of a no-deal Brexit will have an immediate impact and could have a significant effect on individuals. It is however, hard to foresee the consequences in advance. A withdrawal agreement has been considered to provide continued security and predictability for the member states, institutions and individuals exercising free movement. It is also considered difficult to predict the financial consequences of a no-deal Brexit, but a no-deal Brexit will add to the burden on the Swedish authorities and EU institutions in general. The proposal is welcomed and would most likely ease the situation for those who would have been affected by a no-deal Brexit. The transition period which is suggested in the proposal would also give those concerned more time to prepare their social security before the withdrawal is final. BDO Sweden will follow the progress in this matter.

UK: WALES

Welsh rates of income tax From 6 April 2019, your employees may be subject to Welsh rates of income tax. HMRC

will be responsible for identifying when a taxpayer is subject to Welsh income tax rates and will inform you of their new tax code. An individual will be identified as a Welsh tax payer if: • They are resident in the UK for tax purposes • And they have had a main place of residence in Wales for more of the year than in any other part of the UK. There will be no change in the way you report or make payments to HMRC, other than the change in tax code. At present personal allowances will remain the same as the UK and tax bands will remain the same as England and Northern Ireland. BDO Comment In addition to identifying Scottish residents, employers will now also have to identify Welsh residents. Those who currently do so will be aware that tax rates have now deviated in Scotland involving increase complexity and increased tax. So much for tax simplification! Prepared by BDO LLP. For further information please contact Andrew Bailey on 0207 893 2946 or at andrew.bailey@bdo.co.uk

TAXATION

All Change - Where To Be Paid And Foreign Currency Issues At the time of writing this article, 3 years on from the UK’s vote to leave the EU, comments abound as to what has happened or will happen with the UK’s exchange rate in event of certain decisions made by the UK electorate or yet to be made by Parliament, at a General Election or a 2nd Referendum. This made me think about foreign exchange rates and some of the related tax issues. Fluctuating exchange rates could of course apply to any country and rates can vary for a variety of reasons. The matter is therefore relevant to all international assignees, business travellers and commuters. All of this is nothing new and exchange rates have always varied. Pick a period suitable for your specific purposes and you can use statistics/exchange rates to argue your case whichever way you want. Assignees are great at this. They will happily shout when the exchange rate fluctuates to their disadvantage but are far too quiet when fluctuations provide a personal windfall. If you look at the Sterling/GBP rate to the dollar and euro over a period of time it shows the following (top right): Rates have gone up and down and spiked at various intervals. This all adds to the HR/ Global Mobility challenge. This article does not pretend to have the answers but instead seeks to raise a number of points to be considered of relevance when sending individuals across borders or where foreign currency issues are involved.

Typical Assignment Scenarios?

If we consider typical assignment scenarios and payment arrangements these include: • Employed in home country, paid in home country • Employed in home country, paid in host country • Employed in home country, paid in home and host or 3rd country • Employed in host country, paid in home country • Employed in host country, paid in host country • Employed in host country, paid in home and host or 3rd country • Employed in 3rd country, paid in home and host or 3rd country

Date

GBP £: EURO € Date

20 November 2000

1.67

27 November 2000

1.44

17 September 2007

1.43

24 September 2007

2.04

22 December 2008

1.05

22 December 2008

1.47

6 July 2009

1.16

6 July 2009

1.62

28 July 2014

1.26

28 July 2014

1.44

5 December 2016

1.18

5 December 2016

1.26

27 March 2018

1.14

26 March 2018

1.40

30 May 2019

1.13

31 May 2019

1.26

• Commuters and travellers – persistent and periodic travels, paid in home but regular spending in host. In all instances, it may be necessary to consider exchange rates and what rate to use to arrive at figures to include within tax returns. For example, do you use the exchange rate at the time of receipt, the average for the year or the rate at the time the tax is due?

Complexities start to arise when looking at foreign currencies and determining the exchange rate to use to convert salary and compensation data into the relevant currency for tax reporting purposes

GBP £: USD $

General Tax Principles

A tax return is relatively easy when dealing with just one country and the currency of that country. However, complexities start to arise when looking at foreign currencies and determining the exchange rate to use to convert salary and compensation data into the relevant currency for tax reporting purposes. To my knowledge, all countries want individual tax return reporting to occur in the relevant national currency. For example, a UK national on assignment working in the USA but paid wholly or partly in the UK needs to report taxable income in the USA in US dollars and not GB pounds sterling. Typically the exchange rate used should be that at the time of receipt. The rates can be taken from, for example, well known currency conversion websites or national newspapers, alternatively official rates may be published. Often, where amounts paid throughout a period are relatively consistent, an average exchange rate for the period may be used for regular salary payments. A spot daily rate is typically adopted for large one off payments such as stock exercises or bonuses. If questioned or audited, the key is to be able to demonstrate to the tax authority how the tax return figures have been derived and that there is consistency to the method of calculation across assignees. Significant exchange rate fluctuations throughout a year, as could happen with sterling, are generally best dealt with by using the relevant daily exchange rate on each payment date. There can of course be a distinct difference, up or down, between an exchange rate over the course of a tax year. Clearly where taxes are being paid on an ongoing basis throughout the year, fluctuating exchange rates may cause minimal problems, but where taxes are paid

INTERNATIONAL HR ADVISER SUMMER

in arrears variations in exchange rates can have a dramatic impact. For example: • Scenario 1 Pay throughout tax year in Country A is 100 but the individual works in Country B and is liable solely to tax in Country B. Country B does not operate a regular withholding equivalent and tax is due after submission of the tax return on issue of an assessment. The exchange rate is 1 to 1 for the tax year in question and the tax rate is a flat 25%, but at the time of payment of tax the exchange rate is 1 to 1.5. The gross income received is 100 and tax is 25, but the equivalent amount due at the time of payment is a cost of 16.67 in the Country A currency. In this scenario the tax bill effectively decreases. • Scenario 2 Exactly as above, but at the time of payment of tax the exchange rate is 1 to 0.5. The gross income received is 100 and tax is still 25, but the equivalent amount due at the time of payment is a cost of 50 in the Country A currency. In this scenario the tax bill effectively increases. This simple example shows how the cost of taxes can vary, purely through fluctuating exchange rates. Tax equalisation could exacerbate the issue as could the involvement of a third country or currency. When looking at stock transactions, typically you are seeking to ascertain when costs have been incurred and monies received. If a payment is made by an assignee on the acquisition of stock then the relevant exchange rate on that date usually dictates the cost of acquisition. If however, the individual is merely awarded phantom stock and pays nothing on acquisition for this, the taxable figure on eventual payout is usually the fluctuation of the stock price converted at the relevant exchange rate on payout only. Let us look at the contrasting situation of two individuals who both hold shares in their employer. These shares are owned outright by the employees. Let’s assume they both acquired 20,000 shares on the same day at a price of one pound each and both dispose of these a year later whilst they are on assignment and the share price on disposal is still one pound. As far as both employees are concerned they have made no gain or loss. However, the impact of exchange rates can be dramatic. For example: • Scenario 3 One individual goes on assignment to a country where the exchange rate on acquisition is 1:1 but on disposal the rate has changed to 1:1.5. In this situation the individual would make a gain of 10,000 in the currency of the country of assignment. This gain would typically be taxed in the country of assignment.

• Scenario 4 The other individual goes on assignment to a different country where the exchange rate on acquisition is 1:1 but on disposal the rate has changed to 1:0.5. In this situation the individual would make a loss of 10,000 in the currency of the country of assignment. This loss may be available for use or offset in the country of assignment. Naturally different countries may have different rules about taxation, but it is feasible for a loss to be turned into a gain or a gain into a loss purely as a result of exchange rate fluctuations and tax is then calculated accordingly. It is a difficult situation when trying to explain to an assignee that they owe taxes based on an exchange rate gain they have never enjoyed!

It is a difficult situation when trying to explain to an assignee that they owe taxes based on an exchange rate gain they have never enjoyed! Where To Get Paid?

Given that exchange rates can cause the above issues it is not surprising that we often get asked where an individual assignee should be paid. Inevitably this is not solely a tax question, but also a combination of additional factors including: where the individual is likely to reside longer-term, where their liabilities arise, where their regular spending occurs and the capabilities of the payroll function itself. Dealing with these in turn: • Taxes – when looking at employment income, in most cases liability to taxes arises primarily based on where the individual is working as opposed to where they are paid. As ever there are exceptions, for example, countries which still have a remittance basis such as the UK.

• Residence – inevitably individuals typically wish to retain monies in the country where they are likely to reside on a longer-term basis. For example, if an individual is to go on 2 year assignment from Country A to Country B it makes sense to have only local spending money in Country B and to receive the bulk of their income in Country A. This will affect the tax due in Country B as a result of exchange rates. • Liabilities – if there are continuing financial obligations in a home country for example, mortgage, pensions and social security contributions it makes sense to receive sufficient funds in the home country in order to cover the related costs. Similarly, the individual will need sufficient funds in the host country in order to meet housing and living costs. • Payroll operation – most payrolls can cope with making a payment to bank accounts in 2 different countries or operating separate or split payrolls. However, some payrolls cannot cope and equally some employers are adverse to making separate payments or operating separate payrolls. • Exchange control – an additional issue to consider is that of exchange control which is enforced by some countries, for example, Angola, India, Nigeria and South Africa. It is necessary to check ability to move funds freely between countries as in some instances it simply is not possible. • Immigration & labour law – rules on immigration and labour law may dictate that a certain amount of income must be paid in a country in order to gain access or be employed there. Adherence to such rules will be necessary. In theory, splitting payment between home and host countries balances exchange rate fluctuations but this may not always be possible or desirable from the individual assignee or employer’s perspective.

Adjusting Compensation For Exchange Rates

Once compensation items and payment location have been agreed what happens if exchange rates vary? This depends on the agreement reached and company policy. Many assignees are happy to agree fixed rates which may be specified within contracts. In other cases assignment policies may specify that elements of compensation may be adjusted where exchange rates fluctuate by a certain percentage, typically 10% up or down. This flexibility is necessary to stop constant changes to payments with every little movement but to allow a change for bigger variations. Whatever the policy, be assured that individual assignees keep a very close eye on the impact exchange rates have on them. They will certainly let you know if they

TAXATION are adversely affected and will selectively choose relevant periods to demonstrate this, conveniently forgetting positive impacts or rates over different periods. From a tax perspective variations in payment merely get converted into the relevant foreign currency at the relevant time.

Banking Charges

Where employers incur banking charges transferring or exchanging funds for employees, these are typically reported as taxable income.

Financial Catastrophe

The impact of exchange rates can be difficult in normal scenarios but looking again at deferred ‘Eurozone’ troubles what could happen if financial disaster strikes and Italian banks default or Greece pulls out of the Euro? In theory, Greek tax liabilities derived today in Euros but payable tomorrow would still be due – in Euros presumably? If an individual assignee is paid in new substantially devalued drachmas the tax liability would increase significantly in relative terms. If however, they were paid in a currency other than Euros, the impact of any Euro devaluation would effectively reduce their tax bill. Notwithstanding theoretical events, a standard currency zone does generally remove

the challenges relating to tax and exchange rates, but despite a currency link, external events or pressures can create real problems. This scenario occurred in early 2015, when the Swiss Franc was decoupled from the Euro and increased substantially in value overnight by circa 20% against the Euro. For individuals paid in Euros, Switzerland suddenly became that much more expensive as an assignment location. For Swiss individuals on assignment to a Eurozone country, continuing payment in Swiss Francs resulted in a ‘spending windfall’. This could potentially happen again with a Brexit deal or no-deal with rates fluctuating in the aftermath of any decision. Time will tell which way.

Summary

Countries and currencies may vary but the principles set out in this article should hold true. Tax is already often difficult to calculate when individuals move across borders. The impact on tax and costs of exchange rate fluctuations adds another layer of complexity. The approach taken by tax authorities to foreign exchange fluctuations and the difficulties these create is in many circumstances neither logical nor sympathetic. Being aware of potential issues can only help.

ANDREW BAILEY

Head of Global Employer Services 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

The 2019 Global HR Conference FOR GLOBAL HR PROFESSIONALS ONLY

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SAVE THE DATE

The next Global HR Conference will take place on Monday 14th October 2019 at Smith & Wollensky, 1-11 John Adam Street, London from 12pm – 5pm This afternoon conference will cover topics relevant to Senior Global HR Professionals and is FREE TO ATTEND. Please save the date in your diary now, and for further information, or to register a place for you and your colleagues, please email helen@internationalhradviser.com

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Global Employment Companies An Alternative Operating Model And Its Benefits Global Employment Companies (GECs) or Global Employment Organisations (GEOs) have been around already for many decades. The increasing complexity of Mobility due to compliance, the need for creating a better employee experience, and centralised control of the mobile workforce, have created a renewed interest for creating GECs in organisations. GECs are an alternative operating model for Global Talent Mobility. They centralise the employment of all internationally mobile talent (Executives, Global Nomads, Third Country Nationals, Local+, Expat Light, Developmental Assignments, Postretired Engineers etc.) in a separate entity and manage the complexity of Global Talent Mobility. Regardless of home or host country, the assignee will obtain a labour contract and assignment letter from the GEC, and relocate from their home country to their host country. The compensation and benefits borne by the GEC will typically be recharged to the host location. This differs from the approach of so-called employers of record companies who offer to employ your international mobile talent locally. GECs are predominately used in the oil & gas, metals & mining and engineering industries, but are also used as special purpose operating models in all other industries (e.g. Financial Services, Chemical, Construction, Shipping, Pharma, IT, Telecom, Retail, Airline, Automotive etc.). This article will explore the benefits of the GEC model and help you to understand if this is also a model that is beneficial for your assignment programme. We will look at the triggers that drive the decision to use a GEC, and finally how to evaluate the opportunity of operating a GEC.

Forms Of GECs

GECâ&#x20AC;&#x2122;s are typically separate entities that are located in suitable locations, such as Switzerland, Singapore, and the UAE. They are either staffed by a company with a Global Mobility team, or outsourced to a provider

that manages the assignees on behalf of your organisation. The typical factors that play a role in the choice of a suitable location are the following: a stable economy with talent availability, a good bilateral treaty network, accommodating labour law and a stable currency, respectively the ability to deal with multiple currencies. A GEC can operate multiple policies and typically uses a global pay scale for managing their assignment populations. They are also managing all necessary recharges with a little cost plus that compensates for the service delivered by the GEC. Vendor management, e.g. for tax, social security, immigration compliance and relocation are also organised centrally.

A GEC can operate multiple policies and typically uses a global pay scale for managing their assignment populations Benefits Of A GEC

There are many different benefits for companies to choose a GEC over a traditional assignment programme or in addition to one. The benefits that GECs have in common - regardless of the specific reasons for a GEC â&#x20AC;&#x201C; are owed to their centralised management of all global assignments. One team of Mobility Experts, in-house or outsourced, deals exclusively with all assignment related matters which differs from the traditional model, where home and host locations team up to deal

with assignments only when they arise. This is sometimes supported by third countries where Mobility hubs are based. GECs provide benefits in terms of a better consistency of the employee experience, improved coordination and assurance of compliance, better control and reporting (data!), cost savings and economies of scale due to the centralised management. The centralised expertise of Mobility Management also helps to fulfil the increasing duty of care requirements in a more effective and efficient manner. And finally, the increasing use of technology in Mobility and its benefits can be utilised more effectively in a centralised assignment management. Companies have typically multiple specific reasons for managing their assignments through a GEC operating model that go beyond the common benefits listed above. While some use it for all their assignments, others chose it only for specific employee groups. One frequent reason is the nature of international assignments in an organisation. If you have talent that continuously moves from country to country, the so-called Global Nomads, a home country approach is not feasible in the long run. The oil and gas industry is the premier example where almost all Tier 1 firms operate a GEC, which also helps them also for better recruitment globally. Social security coverage is another factor that is discussed in the context of GECs, since they operate international pension plans that can enrich a patchwork of different host country entitlements. Another popular benefit is the risk mitigation around permanent establishments, especially if your assignees are entering new markets where your organisation has no existing entities yet, while others simply realised that their previously de-centralised assignment management caused too many compliance issues or did not deliver a consistent employee experience. One company I came across employs their top management (200 people) through a GEC, which allows them to have a more consistent treatment and better control over their management, while ensuring their mobility.

GLOBAL EMPLOYMENT COMPANIES (GECS) An IT company that I advised created a GEC for their European short-term assignees for better control, a lower permanent establishment risk and easier centralised cost recharges. The question from what size of an employee population does a GEC makes sense sounds valid, but I worked with companies that formed a GEC for five employees. The reason behind that was in one case a multinational merger where Expatriate top management lost their home countries and needed to be provided with a structure that allowed them to provide replacement benefits and to be kept out of the host social security. So, you can see from the above example that there can be on top of the common benefits of a GEC a lot of very specific triggers that made companies use GECs.

Evaluate The Opportunity

During multiple opportunities in which I advised multinational companies on the feasibility of a GEC in the last 20 years, it became clear to me that not every company has a valid business case for a GEC. But the exercise of evaluating the opportunity was always beneficial, since alternatives to a GEC which addressed the issues that the GEC supposedly covered were always established and evaluated against the benefits of a GEC. Typically, a one day facilitated feasibility workshop with the key stakeholders of a Mobility programme achieved a clear view if a business case for a GEC existed, or if any alternative approaches are more feasible. In such a workshop the barriers, enablers and objectives for Mobility are first established. The pros and cons of how a GEC would address these would then be discussed and compared with alternative approaches. The result is typically a solid business case for change. A key for success is to use a facilitator that is familiar with GECs who can ask the right questions. A former colleague of mine once joked that there have probably been more men on the moon than we have seasoned GEC experts in the world. So, it is important to identify a trusted partner. Even within the Big 4, you sometimes find only one or two people who have the necessary expertise, and they are often based on another continent. One typical barrier to GECs is the effort for establishing and staffing a new entity. This involves effort and investment, for the set-up of policies, processes and vendors. An alternative to this effort is to outsource the administration to a proven provider of GEC services. Another barrier to GECs came up when I was working with the mobile engineering talent of a company that needed special certifications to perform

their jobs, which were tied to their home entity and not transferable. While some barriers can be overcome, others can end the idea of a GEC. Sometimes, the benefits of a GEC did not outweigh the necessary investment, or in one case I dealt with, that the benefits of alternative approaches to tackle their issues were more feasible.

One typical barrier to GECs is the effort for establishing and staffing a new entity. This involves effort and investment, for the set-up of policies, processes and vendors Bottom Line

With the rise in complexity of Mobility and compliance it is worthwhile to evaluate the opportunity not to miss out on the potential benefits it comes with. The investment into one day with stakeholders to discuss Mobility Strategy while testing the feasibility of a GEC as an operating model is small in comparison to the benefits that can arise from that. The expertise on GECs is scarce but is available in the market.

The expertise on GECs is scarce but is available in the market

CHRIS DEBNER

Chris Debner is an award-winning Talent Mobility Thought Leader who is providing Strategic Global Mobility Advisory and Coaching Services. He has 20 years of experience in Mobility advisory and worked in over 35 countries across all industries. Chris runs his own consultancy for Strategic Talent Mobility Advisory out of Zurich, Switzerland and works closely with ITX as an adviser. For further information, or to contact Chris visit www.chrisdebner.com About ITX: Founded in 2000 by seasoned HR and Finance executives totalling 40 years of global mobility experience within large corporations, we were the pioneers in the large and fast growing Global Mobility Management phenomenon. We advise international organisations on all global mobility matters (Legal, Compensation and benefits and HR). We achieve the simplification of expatriation programmes, a better costs control in full compliance with regulations. We provide a unique offer from “on request studies” to “full operational solutions” - GLOBAL EMPLOYMENT COMPANY (GEC). So, what about now … Do I want to simplify my “Expatriate Management”?: Can I seriously ease my “Expatriate Management”, have control of my costs and still be compliant? Isn’t it the time to build my own “Best in Class” centre of Expertise? And why not leaving my Expatriate Management to Expert Hands in order to keep a direct control of my International Workforce? If you would like answers to any of these questions, then visit www.itx-ge. com or email Vincent Hennequin at vhennequin@itx-ge.com.

INTERNATIONAL HR ADVISER SUMMER

Work-Life Balance: Strategies For The Future At Work Work-Life Balance v Work-Life Integration

Work-life balance (WLB) is a concept that has historically encouraged employees within organisations to maintain a healthy balance between their personal and professional lives. It enables them to divide their time based on priorities and maintaining healthy relationships by devoting the necessary time to both family, community and self, as well as their jobs and careers, business travel etc. Maintaining a healthy work-life balance helps to reduce stress and prevent burnout in the workplace. Chronic stress has now become one of the most common health issues in the workplace, leading to increased absenteeism and presenteeism, having a significant impact on productivity and performance in the workplace. Apart from this, it leads to further physical and mental health issues (depression, anxiety, insomnia) with an additional burden on the individual, his/her family/community and the company. For the organisation, optimal work-life balance of employees leads to increased motivation, higher productivity and better staff retention and ultimately reduced healthcare costs; according to HBR, the psychological and physical problems of burned-out employees cost around $125 to $190 billion a year in healthcare spend in the United States alone. It is important to stress that WLB does not mean an equal balance between all aspects of life, it is something that is fluid and will vary over time for everyone.

The World of Work is Changing

It has been projected that by 2025, the millennial generation will comprise up to 75% of the workforce and the way we work no longer limits us to a 9 to 5 working day. Advances in technology and being connected 24/7 has essentially erased the separation between work and personal life away from work. Boundaries are becoming increasingly blurred with many companies now allowing flexitime and telecommuting to try and maintain overall wellbeing and productivity. Instead of using the term work-life balance, some protagonists are now preferring the term work-life integration that brings all the aspects of one’s life under one roof and thereby striving for overall fulfillment of life goals, which they believe leads to a happier workforce.

The reality today is, that whichever term we use, work will invariably overlap with your personal life, and life will interrupt work, and maintaining a satisfactory worklife balance is becoming increasingly tricky for many workers.

I deeply resent how we’ve infantilised the workplace. How we feel we have to apologise for having lives. That we don’t trust adults to make the right decisions. How constant connectivity/ availability (or even the perception of it) has become a valued skill. Ian Sohn, CEO of Wunderman on LinkedIn

The challenge is finding a way to effectively balance or integrate the two, understanding that this is not a one-sizefits-all. The modern workforce has multiple diverse dimensions and is comprised of employees at different life and career stages and from varying cultural backgrounds. All these factors need to be taken into consideration when developing a work-life balance strategy for your organisation. Additionally, with increased globalisation and companies working cross-border in a multitude of regions and countries, the work-life balance issues become even more challenging, both in terms of global travel and expatriation, thus further compounding the problems that may already exist in both the private and professional lives of employees. One should also recognise that, according to some studies, up to 30% of the expatriate workforce now consists of singles (not married or partnered) and an increasing number of women, whereas most of the research done on WLB has historically been on families, with the male partner being the employee. These single and childless individuals, as well as dual income families, may face significant additional challenges in maintaining a healthy work-life balance. Organisations and leaders should understand and accommodate the unique needs of employees related to work-life balance. Going forward, strategies must address not only the workforce diversity but individual preferences as well, for them to be meaningful and effective. It is essential for employers to grasp what motivates their workforce and to design programmes that will meet the needs of employees.

Some Simple Strategies To Get Started

• Get input from your workforce WLB strategies must be relevant and responsive to the needs of all employees in order to be successful. Surveys, focusgroups and scheduled meetings can all be used to discuss ideas and priorities to develop a framework for specific programmes. Data collection should be across the entire spectrum of the organisation to ensure that diverse groups are not overlooked. • Establish WLB policies Unless work-life balance strategies are

WORK-LIFE BALANCE: STRATEGIES FOR THE FUTURE AT WORK

•

clearly outlined, any differences in the expectations of the employees can lead to dissatisfaction with disgruntled employees who may feel that they are receiving ‘less’ than others. These policies should be living documents and adapted with any changing circumstances within the organisation. Policies and their benefits should be clearly communicated to employees, along with any variations or changes. Get buy-in and lead by example Unless one has buy-in from the C-suite, any WLB or wellbeing programmes will be set for failure, as they need to believe that this is for the benefit of all employees and that no-one is a superhero and capable of doing without a balanced life. A first step is understanding that lack of work-life balance can significantly impact performance and productivity of all employees, leading to both physical and mental illness, with increased absenteeism and presenteeism. They should also lead by example and ‘walk the talk’, demonstrating their commitment to finding balance in their own lives; the behaviours of the company’s leaders can impact significantly on how employees view and deal with sustainable WLB and this may be exacerbated in certain cultures, such as in Japan and South Korea. Develop a supportive culture within the organisation The key for success is developing a workplace culture that is based on trust and the personal responsibility of employees. It is not necessarily about the office hours and/or face-time, but rather about output. Long hours do not necessarily mean higher productivity and in fact this can be counterproductive leading to additional stress. Employees should also communicate their specific work-life needs and be held accountable for their performance, irrespective of the work environment. Provide the necessary tools, technology and training In order to get work done effectively, especially with increases in flexitime and telecommuting, up-to-date software and technology tools are imperative to reduce working hours and to improve productivity. No matter how good the tools, if the employees are not trained to use them, it can lead to frustration and loss in performance. Establish boundaries Whatever style of working is chosen for/by an individual, it is essential for both the employer and the employee to establish boundaries and to implement these effectively. In a world where the boundaries between work and personal life are becoming more blurred, it is becoming

increasingly important to set suitable parameters. It may not necessarily be about flexible working hours, promoting leave and regular breaks, telecommuting or innovative working and quiet spaces, but rather how the boundaries are being set to optimally implement these best practices. A recent study of German workers found that some employees, and in particular men, who telecommute, actually work longer hours than those in regular full-time office employment. • Disconnect to connect This could comprise part of establishing boundaries but warrants special mention, particularly with the current evidence related to internet addiction. Whether at work or in your personal life, get into the habit of disconnecting from work, technology and social media to be fully present in the moment - whether it is at work, during your ‘me-time’ or when spending time with family, friends and your community. Both the organisation and the employee should work on innovative ways to establish better WLB practices, such as turning off servers or notifications between certain hours or on weekends, mobile phone regimens in meetings and at home, etc. • Don’t work in silos Finally, it is the responsibility of all executives in the leadership team to develop and implement the best WLB strategies and practices, together with the input of their workforce. Crosspollination and communication between different functions makes implementation a lot easier, especially when taking other policies that may have an impact on WLB into consideration. One function is required to take ownership and the responsibility for keeping the WLB policies and implementation alive, by using a fully integrated approach – think HR, global mobility, compensation and benefits, OHS&E, medical department, finance, and IT. Each plays an essential role in providing best in class services.

Conclusion

The attitudes around work-life balance in the modern world of work will continue to evolve rapidly with cultural, generational, technological and economic changes. Therefore, it is important for leaders to be flexible and to update or revitalise their workplace culture to constantly meet the needs of their organisation and those of their employees. Whilst maximising employee productivity and performance is the ultimate goal of most organisations, this cannot be achieved unless leaders ensure that their employees have quality time outside of work, yet are fully engaged and motivated in their careers.

The attitudes around work-life balance in the modern world of work will continue to evolve rapidly with cultural, generational, technological and economic changes

DR PAUL VANDEWALLE

Paul is a South African trained medical practitioner with more than 30 years of international experience in occupational health and wellbeing, particularly in expatriate populations. He has a strong interest in how health and wellbeing impact productivity and performance. He has worked together with many companies on WLB and other areas related to stress and wellbeing. If you would like to discuss any points mentioned in this article or other expatriate issues related to health and wellbeing, please contact Paul at paul.vandewalle@gmail.com

INTERNATIONAL HR ADVISER SUMMER

REVISION: Mobility Through The Looking Glass Highlights from Santa Fe Relocation’s 2019 Global Mobility Survey 2019 continues to be a year of constant change, disruption, uncertainty and consolidation in some sectors, especially as organisations seek to remain sustainable, capable and competitive. Global markets too are changing, and the growth of interregional activity is fuelled by growth in domestic consumer markets such as China, India and America. While the popular reasons for this are often linked with protectionism, the reality is that the impact of artificial intelligence, technological innovation and the decreasing economic reliance on manufacturing in low-economic labour areas are game changing factors. The implications of this from a global talent perspective flow through to Global Mobility and HR professionals who are often at the front-line of managing expectations and the tightrope of balancing employee engagement, compliance governance and in parallel, building new policies and ways to reduce costs and optimise their GM programmes. With four generations in the workforce and an ever-increasing talent gap to attract deploy and retain talent internationally (with the skills and experiences to thrive in the new digital order), this is adding more pressure to Mobility teams who are already at full capacity. Reflecting on what needs to change structurally as well as Global Mobility’s future role and value contribution is a constantly moving target; new talent demands, new locations, mergers, tracking ‘virtual’ assignees who may be blissfully unaware of the organisation compliance risks they create. When is a Business Traveller not a Business Traveller? That is the question. Many of those reading International HR Adviser may know, but do the hundreds, perhaps thousands of employees undertaking international business travel also know? Who manages it, who is accountable and who is responsible? This eighth annual Global Mobility Survey, entitled 'Revision: Mobility Through The Looking Glass’ explores these key industry themes. In 2018, the GMS Survey theme: REACT, focused on why and how organisations and their Global Mobility teams should take action to affect change. It is very pleasing to see that progress in implementing change

There is no doubt that the Global Mobility industry is in the middle of a massive period of transformation and the 2019 survey highlights many of the decision points associated with this transformation Robert Fletcher Senior Vice President of Mobility Solutions Santa Fe Relocation

Key stats at a glance

GLOBAL MOBILITY SURVEY and shifting roles is being made in the findings of the 2019 survey. What due diligence and transformation work still needs to be done to ensure that Global Mobility remains a relevant and sustainable contributor to the deployment of internationally mobile employees? This transformation, we believe, is still a work in progress, and it is recognised that organisations will be at different stages in their maturity cycle in managing Global Mobility programmes. Industry sector and appetite for investing in alternative solutions will also impact make or buy decisions on Global Mobility specific technology solutions.

One challenge for HR leaders is when to act as an HR person, and when to be a business person whose specialisation happens to be HR. Aligning talent and mobility with business strategy requires that business-focussed mindset Peter Ferrigno, Group People Director, Santa Fe Relocation 2019 - KEY RESEARCH THEMES TALENT Emerging International Work Arrangements

“Global Mobility continues to be a vital tool for businesses to execute on their strategy. However, in 2019 we see a shift in the profile of the mobile population. With more employee initiated moves than ever, organisations must be flexible to meet not only the talent needs of the business, but also the motivations and expectations of that talent.” Julia Palmer Group Head of Relocation and Assignment Management Santa Fe Relocation

TRANSFORM Reimaging The Global Mobility Profession

“The ‘organisational deal’ is evolving, and the mantra now is employability, capability and competitiveness, against a continuing landscape of uncertainty, rapid technological advancement and new markets and opportunities. To attract and engage scarce talent, organisations must now adopt a more holistic approach to engaging with existing and potential talent to offer attractive total employee experiences that reflect what employees want, when they want it, and adapt policies, processes and rules to reflect a different period of economic stability and generational expectations.” John Rason, Group Head of Consulting Santa Fe Relocation

RISK Balancing Risk And Compliance

“Global Mobility teams are faced with a wide range of challenges as they seek to mitigate against risk while pursuing their objectives and growth opportunities.” Peter Ferrigno, Global Practice Leader Immigration and People Director Santa Fe Relocation

Final Thoughts

The Global Mobility Survey 2019 findings reinforce the changing mobility landscape which is both an opportunity and threat for organisations to optimise the integration of talent, mobility, risk and ability to utilise data analytics to create competitive advantage. It is time for your organisation to reimagine what Global Mobility looks like in the coming decade? There is an opportunity to clearly educate internal and external stakeholders such as Business Leaders to better understand not only the current roles of Global Mobility professionals but also the potential future contribution that Global Mobility can make to organisational development.

JOHN RASON

Group Head of Consulting, Santa Fe Relocation Recognised as a thought leader and speaker on strategic international HR, talent management and Global Mobility and author of Santa Fe Relocation’s award winning annual Global Mobility Survey. John now works with global organisations to transform their Global Mobility programmes; focusing on aligning strategic. Visit www.santaferelo.com for further information.

Research Methodology

Santa Fe Relocation commissioned Savanta to conduct the Global Mobility Survey 2019. 703 professionals responsible for Global Mobility programmes across 35 countries were surveyed along with 53 Business Leaders from six countries and territories: the UK, US, France, Denmark, Singapore and Hong Kong. New this year, Santa Fe Relocation is proud to be partnering with a number of the world’s leading organisations and thinkers in Mobility whose views are captured in the report through a series of comments and quotes, combined with commentary from Santa Fe Relocation’s own subject matter specialists. Read and download the full report ‘Global Mobility Survey 2019 ‘REVISION: Mobility through the looking glass’ . Visit: www.santaferelo.com/en/mobilityinsights/global-mobility-survey/

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