International HR Adviser Summer 2015

Summer 2015

ISSUE 62

Free Subscription Offer Inside

International HR Adviser The Leading Magazine For International HR Professionals Worldwide

Features Include: The Changing Role Of Global Mobility: Strategic Or Supporting Function?

Closing The Retirement Savings Gap • The Future Of International Mobility At adidas Group Global Mobility Survey • Global Taxation Update • Immigration Gender Pay Variance In Sodexo • Aligning Mobility And Talent The Global Serviced Apartment Industry Report Extending Global Mobility Teams With Relocation Management Companies Advisory Panel for this issue:

Expatriate Adviser Summer

Autumn International HR Adviser

CONTENTS

In This Issue Page 2

International HR Strategy: The Changing Role Of Global Mobility – Strategic Or Supporting Function?

Andrew Robb & Andrea Au, Deloitte’s Global Mobility Transformation Practice

Page 6

Retirement Savings: Closing The Retirement Savings Gap Stewart Allanson, Zurich Corporate Life & Pensions

Page 10

International Mobility: The Future Of International Mobility At adidas Group David Enser, Head of International Mobility at adidas Group

Page 12

2015 Global Mobility Survey: Time For Global Mobility To Demonstrate Its Value To The Business?

John Rason, Santa Fe

Page 17

Global Taxation Update Andrew Bailey, BDO LLP

Page 20

Taxation Issues: Expatriate Terminology Andrew Bailey, BDO LLP

Page 22

Gender Pay Variance In Sodexo: How Gender Balance Delivers Better Performance Angela Williams, Sodexo UK & Ireland

Page 24

Aligning Mobility And Talent: Using Data Analytics To Unlock The Potential Gareth Pane & Nathan Sasto, EY’s Human Capital EMEIA Global Mobility Analytics

Page 29

Partner for Success: Extending Global Mobility Teams With Relocation Management Companies Tanya Thouw, Head of Global Mobility for SAP, and Steve Marshall, SIRVA

Page 32

Healthcare: Improving The Health Of Millions Through The Global Chief Medical Officer Network Dr Paul Zollinger-Read, Bupa

Page 34

Employment Law: Employment Law And The UK’s EU Referendum Juliet Carp, Dorsey & Whitney (Europe) LLP

Page 36

The Global Serviced Apartment Industry Report: GSAIR - Highlighting The Trends, Changes, Debate And Discussion Within The Serviced Apartment Industry Jo Layton & Charles McCrow, The Apartment Service

Page 40

Thought Leadership: Unconscious Bias Snéha Khilay, Blue Tulip Training

Page 43

Immigration: Is Your Business One Of The UK’s 29,000 Sponsor Licence Holders?

Smith Stone Walters

Page 45

Diary Dates

Page 47

Directory

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

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

Cover Design by Chris Duggan

Summer International HR Adviser

1

2

International HR Strategy

The Changing Role Of Global Mobility - Strategic Or Supporting Function?

International expansion and entry into new markets is on the business agenda for most companies. As business needs and expectations change, the role of the global mobility professional is also entering new territory.

A pulse survey was conducted by Deloitte to determine the extent of change in the role of global mobility professionals and the level of support that professionals are receiving to manage the change. This insight will draw on the results from this survey to explore the internal and external triggers for change, outline the key traits of a strategic mobility role, and share best practices on how mobility can partner with the business.

Over the past five years, the role of the global mobility professional has evolved and the extent of change is significant with 88% of respondents reporting a significant change in their role. The role of global mobility is evolving in response to a more complex and challenging environment; the number and types of global deployments has risen, in addition to business and talent objectives involving global mobility and the increased scrutiny on compliance. Growing investment in international expansion and changing business models has meant that global mobility is no longer expected to act as merely a support function. Instead, there is an increasing expectation for global mobility professionals to act as advisors and partners to the business to help manage their global workforce (see figure 1).

So what is driving the change? What does the new role of global mobility look like and how can professionals manage the changing expectations of their role?

What Is Driving The Change?

A combination of both external and internal triggers are driving the change in the role of global mobility professionals with key drivers varying by region. 80% of EMEA and US companies reported strategic business objectives involving global mobility as their key reason for change as seen in Figure 2. However, only 40% of APAC companies selected this internal trigger as a driver for change.

For APAC companies the top driver for changes in the role of global mobility was entry into new markets.

International HR Adviser Summer

Figure 1: Strategic vs. supporting function

Deloitte Pulse Survey – How is the role of Global Mobility changing?

Figure 2: Key drivers for change in the role of global mobility

Deloitte Pulse Survey – How is the role of Global Mobility changing?

Figure 3: What aspects of the role have changed?

Deloitte Pulse Survey – How is the role of Global Mobility changing?

How Has The Role Changed?

Changes to the role and expectations of global mobility reveal the complex balancing act that mobility professionals now face. Over the last five years, the most considerable changes to the role of global mobility professionals have been an increase in advisory support and involvement in strategic objectives. Yet at the same time, global mobility is also expected to manage a heavy administrative workload which has also risen significantly in recent years (see Figure 3).

The increased scrutiny on compliance, the rising volume and complex types of

assignments, as well as the legacy of being a traditionally operational role, have contributed to the administrative burden for global mobility.

What Does Consultative Look Like?

So what does consultative mean for other organisations? Consultative was overwhelmingly defined by companies as meaning an advisor who has knowledge, solves problems and builds relationships (see Figure 4 on next page). Whilst this shows a shift away from global mobility’s historical role as transactional/information

International HR Strategy provider, less than a third of companies view mobility professionals as business partners. Again, regional differences were apparent with 53% of EMEA and US professionals viewing their role as a business partner with only 19% of APAC respondents choosing this definition.

We believe that consultative means developing key relationships and delivering measureable output that creates competitive advantage and helps the organisation to achieve their overall objectives; this is what leads to business partnership between global mobility and the wider organisation.

Figure 4: What does consultative mean for global mobility in your organisation?

(Top 4 definitions)

#

#

#

#

Deloitte Pulse Survey – How is the role of Global Mobility changing?

Figure 5: Strategic role vs support function characteristics

How Do You Measure Up? Based on our experience with mobility professionals in a range of organisations, there are some common identifiable traits of a support role versus a strategic mobility role (as outlined in Figure 5).

What Are The Challenges?

The Impact On Global Mobility’s Brand And Value Proposition Along with changes to the global mobility professional’s role, the perception of global mobility’s brand and value proposition has similarly evolved. Given the increasingly strategic remit of global mobility, there has been a largely positive change to global mobility’s brand. 74% of surveyed companies indicated a positive change in the brand of mobility within their organisation.

Despite the positive uplift in how mobility’s brand is perceived, recent research shows there is still room for considerable improvement. When looking at the overall perception of global mobility programmes, 63% of companies rated their programme as adequate at best, with only 8% of companies rating their global mobility practice as best-in-class.

These results illustrate the challenges that mobility professionals experience in keeping pace with the rate of change in their role and branding. Looking more closely at the aspects of the role that have changed, it is evident that rising administration is limiting the ability of global mobility to provide strategic input, and as a result, has contributed to the transactional brand of mobility.

Key Challenges Mobility professionals are experiencing some key challenges when providing consultative services to the business. The negative impact of administrative duties on the mobility brand and the lack of

Deloitte Pulse Survey – How is the role of Global Mobility changing?

Figure 6: Top 3 skills gap

Deloitte Pulse Survey – How is the role of Global Mobility changing?

organisational support is restricting the full potential of mobility professionals to contribute to their organisation. The top barriers to providing consultative services to the organisation are closely aligned with the changes to the role of global mobility.

The top challenges facing a global mobility professional are: • = #1 Lack of time due to administrative duties • = #1 Company culture or structure • #2 Mobility brand viewed only as transactional within the business Summer International HR Adviser

3

4

International HR Strategy • #3 Lack of training • #4 Less developed skills within the mobility team - However within EMEA this was the #1 challenge Skills Gap The skills gap between the mobility professional and the requirement of the business also varies by region. Whilst the #1 skills gap for EMEA and US professionals was their ability to provide input into business objectives, for APAC companies the outstanding skills gap was their ability to manage and report on mobility costs and spending (see Figure 6). Providing proactive advisory support was another common barrier shared across all regions.

What Support Is Being Provided?

Despite the skills gap and requirement for strategic input from global mobility, 40% of mobility professionals do not receive any training to support their role. Of the companies that do support their global mobility professionals with training, there is a wide variety in the type of training offered.

Global mobility professionals typically receive 1-2 types of training from their companies, indicating a gap in providing more holistic support for mobility.

The range of training provided for GM professionals includes: • Global mobility fundamental training • Coaching / mentoring • Training related to the strategic objectives of the business • Effective leadership training • Communications / presentation training • Consultative skills training • Relationship building.

address any skillset gap, training should be provided to equip professionals with the consultative and customer centric skillset required by the business (see case study). Developing internal skillsets through training is a relatively ‘quick win’ in closing the expectations gap.

• Reduce The Administrative Workload - Decreasing the amount of administration in the role allows the mobility professional to focus on proactively partnering with the business. Consider ways to decrease the level of administration either through automation, optimisation of processes, shared service centres, outsourcing or internal reallocation of roles.

• Review And Define The Service Delivery Model - Revisiting the service delivery model and reviewing key roles and responsibilities has a high impact on the ability of global mobility to act as business partners. It is critical there is an appropriate structure in place to ensure that the right people are performing the right roles. This includes determining which roles should be acting in an advisory capacity versus operational capacity and whether formalised business partner roles are required.

• Branding And Value Proposition - When business partnership is implemented correctly, this role can help enhance global mobility’s credibility and influence within the organisation thereby improving the brand of mobility. By focusing on building a strategic mobility brand and value proposition, mobility professionals

can shift the perception of mobility from support role to trusted advisor.

• Measure Mobility Effectiveness - Global mobility business partners should be able to articulate the value that they bring to the business. Best practice companies develop mobility metrics to demonstrate the effectiveness and impact of their global mobility function and programme. This provides a facts-based means of demonstrating the contribution that mobility is making to the overall organisation.

• Organisational Support - Lastly, the burden should not be shouldered by the mobility professional alone. Although the focus is often on how the mobility professional should change, the support provided by the organisation to allow this role to function strategically is just as crucial to achieving business partnership.

In short, there has been a positive trend in the strategic input and brand of global mobility over recent years despite the changing and increasingly complex environment.

Although global mobility professionals are increasingly acting in an advisory role, business partnership is still a considerable gap for the majority of companies. Global mobility professionals are facing key challenges in their role and they will need to have the appropriate structure, branding and organisational support in place in order to become effective business partners. Only when business partnership is implemented successfully can global mobility reach its full potential as a key contributor to the overall success of their organisation’s business and talent goals.

How To Achieve Business Partnership Practical Steps To Close The Gap Many organisations struggle with turning the theoretical concept of business partnering into a practical role. Not only do mobility professionals need to be equipped with the skillset and knowhow to be true partners to the business, they also need to be positioned in, and supported by, the appropriate service delivery model. Underpinning all this should be an organisational culture which is supportive of global mobility as both a strategic enabler and business partner. In our experience, there are several key success factors to achieving partnership with the business: • Training - In order to manage the change in the role of the mobility professional and International HR Adviser Summer

Andrew Robb Global Mobility Transformation Practice Lead, Deloitte LLP, United Kingdom +44 20 7303 3237 anrobb@deloitte.co.uk

Andrea Au Global Mobility Transformation Manager.

Deloitte LLP, United Kingdom +44 (0) 20 7303 5995 aau@deloitte.co.uk

6

RETIREMENT SAVINGS

Closing The Retirement Savings Gap Mobility, demographics and pensions are changing at a global level, and as they do so they are creating a web of interconnected risks for employers and employees.

In this article, we will explore these changes by identifying the trends and looking at the impacts – both positive and negative – that they could have on companies operating across international borders. We will then consider the issues from an employee’s perspective and make proposals on how employers can help, based on our own experience and the market generally.

2020 – The Future Workplace By 2020, the over 50s will make up almost one-third of the working population. As people work for longer, employers will need to accommodate a more diverse workforce and the retirement needs of three distinct populations: • Baby boomers, reaching retirement • Generation X, those born in the late 60’s, 70’s and early 80’s with established careers • Millennials/Generation Y, those born later in the 1980s to the early 2000s.

Due to the age and personal circumstances of each group they understandably have very different requirements and reward drivers. For example, Generation X are motivated by paid sabbaticals and income accumulation/retirement planning, Generation Y prefer career development opportunities and cash incentives, whereas the Baby Boomers focus is medical benefits.

One incentive they all have in common is work/life balance and the opportunity for flexible working hours.

The Ageing And Greying Workforce To what extent are we already starting to see evidence that the workforce is ageing?

The greying of the workforce is well observed in northern Europe and to some extent North America. In a Zurich survey last year asking multinational companies for their thoughts on ageing and greying workforces, 71% of respondents said that they expect the number of over 60s in their workforce to increase this decade.

To accommodate this greying workforce, 48% of employers said they would be looking to change their benefits structure in the future. Respondents cited healthcare (60%), group life insurance International HR Adviser Summer

(40%), critical illness and disability benefits (40%) as being impacted, with expected increases in cost.

While increased longevity is a wellknown trend - 78% of employers said that they believed that employees are aware of it – the implications are being overlooked by many. Only 36% of respondents to the Zurich survey said they thought employees understood how much more they needed to fund a longer retirement.

In addition, there was a clear message from employers that they would not be contributing more to retirement savings plans – 81% said they would not be increasing levels of retirement funding to offset the impact of increasing longevity.

Instead 89% of employers plan to promote their retirement savings plan and encourage employees to save more themselves.

Adapting Mobility Policies To New Challenges Current challenges around compliance and cost pressures mean organisations must adapt their mobility policies.

The Brookfields 2014 Global Mobility Trends Survey saw an increase in the number of people that had standardised their policies on a global level versus regional or divisional – 90% of respondents indicated that their assignment policy and programme decisions were made globally, which was a sharp increase from 80% the previous year.

The stakes for non-compliance are higher than ever, as companies need to keep up with rapidly increasing regulatory requirements. To address this, companies are using programme standardisation and centralised decision-making to address the need for mobility programmes to be built on solid and compliant foundations.

However, this move to instigate greater control has not translated into a trend for policies with more rigid guidelines. In fact, companies are embracing policies and programmes that allow greater flexibility, such as a mix of one-way permanent transfers, local plus, and localisation depending on the situation.

One of the main reasons for this is cost, which is the biggest challenge for companies when dealing with international assignments – 72% of those asked said they had reduced costs in the last two years.

So essentially, cost control is driving the trend towards greater flexibility, but

employers are unsure of how to go about it and have limited capacity and resources.

The Changing Pensions Landscape Funding gaps in both social security and pensions and retirement promises can make up a major percentage of long-term liabilities for employers.

For over a decade, a large number of baby boomers have retired, or are now preparing for retirement, expecting payments from governments’ social pension systems, public sector pension funds or voluntary pension and retirement accounts. Many companies have been struggling with the financial aspects of longevity and financial well-being during retirement.

The aftermath of the global financial crisis, including lower than expected investment returns and volatility, as well as increased regulation, has forced many governments, public and private sector employers, and pension fund providers to reassess their current solutions.

Central control, cost reduction and improved governance are all driving demand for pension solutions that work on a global level. But achieving this is actually becoming harder due to national pension regulations, plan design and tightening of tax rules.

Consequently many multinational organisations are: • Carrying out a global audit of pension provision • Ensuring any compulsory requirements are in place • Amalgamating pensions across jurisdictions where possible, e.g. UK/ Ireland • Retaining employees in the home plan where viable • Establishing a host plan where necessary • Otherwise establishing an international pension plan.

The Employee View To understand the employee view we surveyed over 1,200 members of Zurich’s International Pension Plans.

The Majority Of Members Understand And Engage With Their Plan • 67% know how their plan works • 64% have read their plan guide

RETIREMENT SAVINGS

• 41% use the online administration regularly (62% say it’s easy to use) • Only 47% know what funds they are invested in.

Does The Plan Meet Their Retirement Needs?

• 56% have a pre-determined level of retirement income they need to reach • 45% claim their Zurich plan forms all, or part of their retirement savings plans • However, only 29% believe they are on track to reach their required level of income • Despite this, only 12% pay AVCs.

The Employee View On Plan Communication • There is a clear desire for communication (86% think between monthly and quarterly communication is reasonable) • There is a clear (98%) preference for email communications which is unsurprising given the nature of the companies contacted.

Given that there is a clear message that employees don’t believe they are on track to reach retirement goals, how can employers help to close this retirement savings gap? There seems to be an opportunity to shape plan design to achieve better member outcomes and to empower employees to make more informed retirement decisions.

Shaping Plan Design For Better Member Outcomes Clearly not all of the issues around pensions are just the employer’s responsibility, but employers can certainly help through flexible plan design and

regular and effective communications.

International pension plans offer flexibility for mobile employees who are unable to join a locally approved plan, which may be for a number of reasons. There are no prescriptive rules on investment options, contribution amounts, member eligibility, and when and how the benefits can be taken. In addition, members can accrue benefits in a single pot and in a currency that fits with their retirement plans.

However, when it comes to leaving employment and retirement, an international pension plan’s flexibility generally stops, with a majority of employers asking members to take their accrued benefits as a lump sum as soon as they leave employment, whether at retirement or earlier.

Therefore, employers can help employees to increase their retirement income simply by allowing them the flexibility to leave their funds invested until they are ready to make a decision or retire, or to allow regular withdrawals from the plan.

Supporting Employees When They Leave Service Or Retire In many cases, although plan rules may permit members to remain in their plan after leaving employment or retirement, in practice members are given no option other than to take their accrued benefit as a lump sum.

In some cases this could be the right thing to do – for example, if the value is low, if the member has already identified a use for the money, or if retirement is a long way off. But it’s also important that the employee understands that they are taking out what should be a large part of their retirement provision.

In a lot of cases though there are disadvantages to taking a lump sum, including: • Significant tax charges • What to do with it in the short-term while they decide on a long-term plan • Very low bank interest rates if bank investment used in the short-term • A necessity to incur adviser fees in order to find an alternative investment product • Potentially higher charges for an investment product sourced on the retail market • An inability to transfer the accrued benefits to their new employer’s retirement plan, if applicable • The potential to miss out on investment growth.

And there are further potential problems at retirement age, such as: • Trying to source a suitable annuity or income-producing product • Increasing longevity meaning that a lump sum is likely to be eroded quickly.

Therefore, the best option could be for the employer to treat their international pension plans more like a domestic plan and allow the employee to stay invested until they need the cash, or decide what to do with it.

This gives the member time to properly research other options and their benefits continue to grow, subject of course to market performance. They retain full control over their benefits (including any online administration systems available to manage their investment) and could even take partial cash withdrawals to minimise tax implications.

What Are The Alternatives?

If this option is unavailable, the member can re-invest the value in a retail investment product in their home country. However, there are a number of disadvantages to this approach: • There is likely to be a need for financial advice and this may be costly • If re-invested in a bank account, the return may be considerably lower • Retail investment products are likely to have higher product and fund charges and ongoing costs • A retail product may not offer the same access and flexibility as an international pension plan • The member may not have the time or resources to properly identify an appropriate alternative • There is potential for out-of-market exposure Summer International HR Adviser

7

8

RETIREMENT SAVINGS • There is potential for high currency exchange charges • The lump sum may simply be frittered away.

The Benefits Of Regular Withdrawals A survey by AON of 2,000 members of defined contribution pension plans found that less than 10% wanted to be able to take the full value of their pension in cash and wanted a steady income instead, but many distrust annuity products. As we are seeing in the UK with the recent UK pension freedoms, would regular withdrawals provide a flexible alternative?

Let’s look at some of the benefits of leaving the money invested and taking regular withdrawals: • Payments can be timed to meet actual needs • The timing and amount of regular withdrawal payments can be set to minimise tax implications • The member has the flexibility to amend the frequency and amount of withdrawals, including cancelling them, at any time • The member can take the full remaining value at any time • Higher returns from institutionally priced funds • Benefit can continue to grow subject to market performance • No immediate requirement to buy an annuity but one can be bought in the future if the member decides to do so.

By offering employees investment funds with institutional pricing, employers can help the investment last longer and provide substantially more income. As an

example, the following chart demonstrates the impact upon a fund value of different levels of charges.

This hypothetical example assumes an investment of £10,000 over 30 years.

Annual compounding is used for both the assumption of 6% average growth p.a. and the investment costs. Costs are applied to average annual growth of 6% for each year.

As it is a hypothetical, this example does not represent any particular investment.

(Source: Vanguard, May 2015).

In short, a company sponsored international pension plan is likely to be a lower-cost, more flexible solution than an individual retail alternative.

to be flexible enough to meet the future needs of employees? And how do they satisfy the compliance and cost constraints that companies face?

Through international pension plans, and allowing regular withdrawals, there is an opportunity for employers to shape plan design, close the pensions savings gap for globally mobile employees and empower employees to create the retirement they want.

Looking To The Future, Today The traditional model of saving for the future has been a defined benefit arrangement (DB), or a defined contribution (DC) plan, targeted to a particular retirement age.

DB arrangements are on the decline worldwide and DC plans have the problem that they transfer the risk onto the employee. In general, the employer’s focus is on agreeing the contribution level and plan design, not looking at the member outcome.

Because of increasing longevity, people need to save more, or for longer, so companies face the risk of people staying on in work because they can’t afford to retire.

And from a changing workforce perspective, Millennials are not that interested in working for a single employer – they expect to be mobile in the geographic sense and mobile across employers.

So are the long-term savings arrangements being set up today going

Stewart Allanson Zurich Corporate Life & Pensions is a leading provider of international pension plans.

For more information, please email: stewart.allanson@zurich.com or telephone on +44 (0) 1242 664443.

SOCIAL MEDIA Join our LinkedIn Group for International HR professionals.

Search for International HR Adviser and join now for updates, articles and events.

This Group is only open to practising professionals in International HR

Join us on twitter @IHRAmagazine

International HR Adviser Summer

10

International Mobility

The Future Of International Mobility At adidas Group As part of the process of defining adidas Group’s People Strategy to accompany our recently announced Strategic Business Plan (SBP 2020), I was asked to speak to a mixed group of HR & business leaders about the future of international mobility within adidas Group, demographics, evolving policies and practices, and factors that will in my view affect the way that adidas Group moves people cross-border in the future - a fascinating topic no doubt, and one that threw up some interesting insights along the way in terms of external trends in particular that will continue to shape our international workforce.

Firstly, adidas Group is without a doubt an organisation that truly embraces multi-cultural diversity. We have c. 1500 international employees (those working outside their country of origin and receiving benefits and support relating to this), and in our global HQ in Herzogenaurach 73 different nationalities of employee work side by side (www.herzo.adidas-group. com) – in my view, something to cherish, nurture and also celebrate – hence why the concept of the Globetrotter Career is one of our 5 employer brand principles, a key part of our Employer Value Proposition and vital to our success as a globally renowned and valued brand, doing business in all corners of the world.

To look a little deeper into our international employee population, please see the infographic: • 966 international employees in EMEA with major locations Herzo, Amsterdam and UAE • 269 international employees in APAC, with major locations Hong Kong, China and Vietnam • Gen X is by far the biggest population in terms of age of our international employees, followed by Gen Y and of course the Boomers • 61% of our international employees come from Europe, but we also see a trend towards increasing numbers out of Asia • Brand & Design constitute the biggest users of mobility within the Group, followed by IT, Supply Chain and Sourcing • Gender is a factor too – in junior & middle management, we see some semblance of gender balance in roles filled by international employees, but as International HR Adviser Summer

we move towards more senior positions we see this skew in favour of male employees – more on this later.

So, What Factors May Affect Our International Employee Population In Future?

Firstly, an evolving international employee demographic: From various sources, I found some truly game-changing insights that will shape our future international hiring. By 2020, it is estimated that 55% of new graduates will come out of three countries – China, India and the US – for a company with a predominantly European expatriate population, we predict a shift to hiring more and more international calibre employees from these 3 countries.

Next, again by 2020, it is predicted that gender parity in senior positions will be the norm. As an organisation,

adidas Group places great importance on international working experience as one pathway to senior & executive leadership roles, furthermore there is increasing legislation to ensure that this happens in countries such as Germany, Norway, Italy and The Netherlands. As such, our policies to support international employees will evolve to enable more women to gain international experience.

By 2020, there will be 5 generations in the workforce, all with differing needs and belief systems, and this, combined with our huge international diversity and differing expectations around what constitutes reward based on an individual’s own values and cultural background, will drive real change in how we construct rewards and mobility policies as well as how we support international mobility.

I think that reward should be about a balance between:

International Mobility • An individual’s own values and cultural background • Their contribution to the company and value that delivers, and • Within a transparent and compliant reward structure and ALL employees regard as ‘fair’.

Secondly, as our organisation evolves, we will see a change in the positions and location of international roles.

As an organisation, future technology is at the heart of what we do, particularly around materials, processes and manufacturing.

With the advent of increasingly automated production methods, perhaps in future there will be less roles overseeing traditional manufacturing processes, and rather international roles focusing on supply chain and environmental & waste management.

With the announcement of our future focus on Key Cities as drivers of growth, there will also potentially be greater focus on placing brand & design roles closer to our consumers in these locations as opposed to our traditional hubs and this, in turn, will drive mobility policy change.

Thirdly, I heard a fantastic quote some time ago – ‘The war for talent is over...the talent won’.

No longer can an organisation maintain a ‘one size fits all’ stock of simple policies to suit traditional assignment types – instead, the new norm will be managing an increasingly complex set of differing assignment types and employment relationships – international ‘nomads’, one way moves, developmental assignments to develop individuals or build management capability in key markets through gaining of international experience, project travellers, commuters & multi- state workers, rotation programmes for developing functional experience, and even location free workers – those employees originating from country A, performing a role in country B whilst resident (per their wishes) in country C – all require reward and mobility policies to suit, along with systems and processes to manage.

So, How To Respond To These Future Defining Trends?

Firstly, regarding our approach to Total Reward, we embrace and acknowledge that an increasingly diverse workforce attach value to an increasingly diverse range of things – compensation, benefits, job titles, ethical standards and international opportunities – as such, our mobility

policies must continue to reflect this and be flexible enough to accommodate.

Secondly, we continue to position the concept of a Globetrotter Career, the opportunity to forge a career that spans the world and is limited only by an individual’s ambitions. At the same time, we continue to promote key locations through our innovative use of multi media and microsites such as those developed for Herzogenaurach, Germany and adidas CIS. Visit www.herzo.adidas-group.com and www.moscow.adidas-group.com/#video At the same time, we continue to be open to offering greater flexibility where and when possible around assignment locations and employment models. Also, and very importantly, we continue to invest heavily in improving international succession management, keeping our talent moving, and developing bench strength.

Finally, we continue to invest in systems to manage an increasingly complex set of employment relationships in an efficient and legally compliant way – the upside to this is that, with increased automation and process efficiency, we are able to change our game and focus to a much greater degree on our people. #creatingthenew

David Enser is Head of International Mobility at adidas Group since June 2010, and has lived and worked in 5 countries – France, Germany, Hong Kong, Japan and the UK. He is also a founder and director of The RES Forum – www.theresforum.com – the leading peer-to-peer forum for research, collaboration and learning on international HR topics. For more information on their upcoming research around international mobility in a VUCA (volatile, uncertain, complex & ambiguous) world, please contact office@theresforum.com

Are You Moving American Expatriates To The UK? If so, we have two products that will be useful to these employees:

American in Britain magazine

Our quarterly, glossy magazine is aimed at American expatriates living and working in the UK, and features a number of regular topics that includes Travel, Investments & Wealth Management, Theatre, Healthcare, Restaurant Reviews, Tax Advice for Americans, Arts & Antiques, Legal Matters, Top Ten Tips, Sports, Hotel Reviews, International Schools & Education, Women's Clubs News, US Embassy Corner, Property in the UK and other specialist features.

SUMMER 2015

Our Website That Assists Americans Living In, Or Moving To The UK

Serving the American Community in the UK

We offer Americans a free annual subscription (currently being sponsored by The Hippodrome Casino and London & Capital), or we can deliver a bulk quantity to your office for you to distribute to your American employees as part of a benefits package.

For information please email: helen@theamericanhour.com, or ask your American employees to email Helen directly.

www.theamericanhour.com

www.theamericanhour.com is updated regularly with content and information beneficial to any American moving to, or living in the UK. There are over 40 pages of information full of resources and useful contacts and links.

We also send out a monthly email newsletter and organise networking events for Americans living in the UK.

THIS ISSUE’S FEATURES INCLUDE: UK Sports t Travel t Tax Issues t Eating Out t Wealth Management A Letter From Scotland t Theatre t American Women’s Clubs News Arts & Antiques t Take Five t Hotel Review t Embassy Corner

If you would like further information, please email: helen@theamericanhour.com

Help your American expatriate employees in the UK, by sharing information about these products now!

Summer International HR Adviser

11

12

2015 Global Mobility Survey

Time For Global Mobility To Demonstrate Its Value To The Business?

The following is an extract from the 2015 Global Mobility Survey. The largest survey of Global Mobility explores four key trends affecting organisations worldwide and the challenges these present to their Global Mobility functions. A copy of the full survey report can be ordered via www.globalmobilitysurvey.com.

Virtually all Global Mobility professionals (93%) say that cost containment is important to their departments – and over half (53%) say it is very important.

In fact, reducing costs is more of a priority than improving ROI, improving assignee satisfaction, or improving the perceived success of assignments.

There are many ways of course in which costs may be reduced. See Fig 16.

An obvious way would be by reducing the number of assignments or sending more junior personnel. Of course, this assumes an alliance between the purpose and goals and objectives for the assignment. However, these are only initiatives for a minority of organisations (20% and 16% respectively). Instead the primary focus is on reviewing policies (44%).

A Paradigm Shift On Cost Focus Is Required This focus on total cost reduction presents a potentially serious issue for companies as ‘cost cutting’ in isolation threatens to stretch limited resources even further, with

the prospect of damaging activities from Duty of Care provisions, to legal advice, to long-term performance planning.

It is also indicative of how businesses often view Global Mobility only as a cost authorisation rather than a value investment opportunity. Robust business case investment protocols would enable executives to articulate the payback from Global Mobility and recognise that Global Mobility are actually custodians of value not cost centres. The current state of affairs, however, is neither a healthy nor a sustainable way for Global Mobility functions to create value and thus we require a paradigm shift in focus.

Yvonne McNulty, Singapore Institute of Management: “We will never be able to escape cost containment as a focus in Global Mobility, so it is at least good to see sense in the approach organisations are taking to achieve this.

• Policy review is always the number one way to do it – but be careful about the opportunity costs of cutting back • Process efficiency is NOT a verifiable way to cut costs, nor is tightening the noose around vendor costs – the latter will incur opportunity costs that are not worth it in the long run • Process efficiency is also the wrong focus – processes don’t build a strategic mobility programme, people and experience and expertise do

• Cutting back on all the compensation costs is, again, not a good way to go – unless you can be absolutely sure there are no negative repercussions long-term.”

To do so, Global Mobility functions must switch from a reactive approach to a strategic approach – something that was an ambition for many Global Mobility functions in last year’s survey. Whilst only 11% at the time were able to quote ‘strategic workforce planning’ as one of the top 5 activities involved in their job, 40% expressed a desire to make this a reality.

So what’s changed over the past 12 months? Unfortunately, not much. The percentage of professionals listing strategic workforce planning in their top five tasks has increased, but only by 2% (from 11% to 13%). See Fig 17 on next page.

David Collings, Professor of HRM (Phd): “For Global Mobility professionals to be seen to be adding value, involvement in strategic decision making can help raise their profile with senior management.”

With this in mind, the key priority for the next 12 months remains the same as last year – spend more time strategic workforce planning! In fact, it’s growing in momentum – now representing a priority for 49% (previously 40%). See Fig 18 on next page.

Freeing Resource For Strategic Activities By becoming more strategic, a range of benefits should emerge from closer alignment between Global Mobility and overall organisational strategy (only one quarter – 25.9% – currently say that their mobility strategy is very closely aligned with their organisation’s strategy), to increased focus on, and ability to measure, Return on Investment.

However, as the past twelve months have shown, becoming more strategic is not easy nor something that can be expected to happen in a short period of time. In 2014, one of the key barriers identified as preventing organisations from becoming more strategic was a lack of time and resource in the Global Mobility function, and this year’s findings reinforce this position.

International HR Adviser Summer

2015 Global Mobility Survey

Summer  International HR Adviser

13

14

2015 Global Mobility Survey Yvonne McNulty, Singapore Institute of Management: “It’s no surprise that ‘assignment admin’ tops the list of current activities. This feeds into all the research showing that Global Mobility management is largely transactional, no matter how much managers or their companies would like it to be otherwise. It is not until item 12 that any kind of strategic activity comes into the job description – evaluation of expatriate vs local hire options.

In contrast, the ‘wish list’ of activities tells a much better picture re: where mobility managers would like to focus their time, energy and expertise. I agree that assignment management will always be the number one priority, and to some extent Global Mobility professionals will never escape compensation and benefits duties as these can, in many instances, also feed into strategic workforce planning.

However, I disagree with immigration compliance – this is better left to the professionals (i.e. outsourced). Overall, this question paints a much better picture of the intent, but it also highlights a massive gap between what professionals envision and the reality of their current role.”

In the rapidly growing Engineering sector only 1 in 7 organisations (14%) say that their mobility strategy is very closely aligned with overall strategy. As economic resurgence leads to increased opportunities – and increased workloads – this suggests that Global Mobility functions, in Engineering organisations without additional resources, may become less proactive and more reactive as they battle to meet the Global Mobility needs of their organisations.

So as assignment activity continues to grow over the next twelve months, it is vital that organisations are able to dedicate increased resource to their Global Mobility programmes, allowing for more strategic focus.

Demonstrating Return On Investment Part of the underlying reason why businesses typically view Global Mobility as a cost centre rather than a value centre is likely to be due to an inability to demonstrate the value of Global Mobility.

84.8% of Global Mobility professionals said they believe their Global Mobility programme delivers value for money. Yet few have the capability to articulate or demonstrate this value to their business.

A massive 72.0% of organisations said that they never or rarely measure Return International HR Adviser Summer

on Investment on their assignments, thus making it virtually impossible to be seen as a value partner or build a case for increased investment in the department.

However, there is a distinct divide between companies where the Global Mobility professionals are ‘tactically focused’ and those where they are ‘strategically focused’ (based on the activities they perform). ‘Strategic’ organisations are 26.8% more likely to measure ROI than their ‘tactical’ counterparts. See Fig 19.

Selecting Appropriate Systems Is Critical Amongst Global Mobility professionals who are trying to measure ROI, there is widespread recognition that these measurements still leave much room for improvement. Less than one in seven organisations measuring ROI (12.9%) believe that the methodology they currently use is very useful; one in four (24.6%) think it’s not very useful.

So where’s the methodology falling down? Perhaps part of the answer lies in the systems being used. Only 1 in 4 organisations (24.7%) are using specially

2015 Global Mobility Survey designed in-house systems. Instead, the most commonly used system is everyday software such as Microsoft Excel (34.3%), with Big Four solutions (whether standard or customised) also representing a sizeable chunk. See Fig 20 on previous page.

As a result, professionals are finding it very difficult to get timely, accurate insight, with common complaints including ‘patchy data’ and the need for ‘time-consuming manual analyses’.

Once the assignee is on location, costs then need to be monitored throughout the assignment’s life; and again, the most commonly used system for doing so is everyday software like Microsoft Excel (37.8%). Here also, this is often failing to live up to the task. Only 7.8% describe everyday software as extremely effective for monitoring their costs whilst over one third (34.4%) say it is not very effective.

Instead, the most effective method appears to be utilising the power of a system that is connected across the entire business. 88.1% of organisations using connected systems describe them as effective at monitoring costs.

Having a globally connected system opens new possibilities for companies.

At a basic level it enables Global Mobility functions to provide reporting to the business of spend and performance.

This can be used to build a business case to demonstrate how Global Mobility delivers value to the organisation which can be used to create business cases for investment in Global Mobility. Further ahead, there is even greater opportunity for utilising the power of ‘Big Data’ in relation to talent management and linking with other parts of the business.

Going forwards, measuring ROI will be vital for transforming business opinions of the Global Mobility function, for which connected systems and good data hold the key.

David Schofield, Strategic Business & Talent: “Demonstrating value to the business is a topic which resonates across the HR profession. For me, the way forward for Global Mobility professionals to prove their value is partly around being in command of mobility data (numbers of assignees, cost of programmes, retention rates, return on investment etc.) and partly around having a commercial mind-set.

Such a mindset means trying to think like a CEO, or a Finance Director or a Head of Operations. What are their priorities and how can a mobility programme help

to address these?

Measuring ROI (Return on Investment) is very important, but in reality over-complicated approaches can sometimes make the task seem impossible. I have found with a range of companies that a simpler, businessdriven approach to ROI can work well.

The twin focus is on ‘Effective ROI’, i.e. whether the assignment achieves

its objectives, and ‘Efficient ROI’, i.e. whether the overall cost is in line with predictions. This approach treats a Global Mobility initiative like any other business investment, such as a new IT system or a marketing campaign and simply asks; ‘did it get the job done at the expected cost?’

This approach requires objectives to be set and costs to be measured – which of course are good things.”

John Rason, Head Of Consultancy Services, Santa Fe The ability of HR and in-house Global Mobility functions to demonstrate the value they create for their business will define their effectiveness in the long-term. The results of the survey and my own personal experience of working with companies around the world indicate that those that are able to demonstrate their value to the business are less likely to be subject to continual cost cutting pressures and reduction in resources.

In my experience these companies are able to quantify the cost of Global Mobility, but most importantly they are able to link this to the results of the projects that their programmes have contributed towards and quantify this. For example; a project to support the opening of a new business project can be measured in terms of how much revenue the new business unit has generated, or the net savings created for the company; or the employee retention rates and the savings this creates. Being able to quantify these benefits is essential.

The other attributes these companies have in common are that their Global Mobility functions interact with the business units and they have the connections to collect the data necessary to calculate the ROI. Having systems that are linked to other parts of the business makes it easier and in many cases they have invested the time to set these up.

The end result is that by focusing on providing tangible evidence of the value that they create for their business, the discussion has shifted from being a cost centre to a value centre. They are working on ways that they can invest in their departments to improve company performance rather than cut. Without the pressures created from cutting they are able to balance their time between planning and doing more effectively and ultimately are more able to work efficiently.

The Global Mobility Survey is the world's largest and most reliable study of Global Mobility programmes managed by organisations worldwide. Commissioned annually

by Santa Fe and conducted independently by Circe Research to ISO20252 standards.

The survey includes input from an Expert Panel of some of the world’s most influential figures in Global Mobility. The Report is published annually to provide insight into; key trends, strategy, best practice and the latest thinking. Academics, International Business Leaders, HR and Global Mobility professionals will also be interested in the benchmarking site www.globalmobilitysurvey.com which enables results to be analysed further by industry sector, programme size, geographic scope.

Summer International HR Adviser

15

global taxation

17

Global Taxation Update Africa

The following changes arise from 2015 Budget proposals:

Benin

The Finance Law for 2015 announced amended rates on wages and salaries as follows: Monthly salary (F.CFA)

Rates

Sierra Leone The Finance Act 2015 amended the tax-free threshold of redundancy and retirement payments as follows: Old Provision Amount (Le)

Rate

Up to 20,000,000

0%

Over 20,000,000

30%

Up to 50,000

0%

50,001 – 130,000

10%

Amount (Le)

Rate

130,001 – 280,000

15%

Up to 50,000,000

0%

280,001 – 530,000

20%

Over 50,000,000

5%

Over 530,000

30%

Central African Republic (CAR)

The Finance Law of 2015 introduced a Social development contribution through a payroll tax levied on all employers. The law excludes from the taxable base of this contribution payments to employees based on: • The provision of medical treatment; and • Family events such as death, marriage, birth and baptism.

The taxable base is the gross amount of all types of remuneration, including benefits in kind provided to the company's staff during a fiscal year.

The Republic Of Congo (Brazzaville) The Finance Law 2015 amended the payroll tax for employers allowing for an exemption of payroll taxes for entrepreneurs and companies operating within the agricultural, livestock and fishing sectors.

Furthermore, the Law introduces a tax on capital gains derived by individuals. The tax is creditable where taxpayers are subject to the latter tax. The tax is payable in general to the notary, at the moment of the transfer. Under the new provisions, capital gains derived from immovable property are subject to tax at the rate of 10%.

Ghana The Internal Revenue (Amendment) Act, 2014 added the following new measures: • An increase in withholding tax rate on commission paid to a resident from 5% to 7.5%; and • A reduction in withholding tax rate on endorsement fees paid to a resident from 10% to 5%.

New Provision

Under the Income Tax Act 2000, as amended, redundancy and retirement payments made to employees when their employment is terminated, have special tax treatment where an amount paid up to a certain limit is tax free, as seen in the table above. As such, redundancy and retirement payments are usually divided into two components for tax purposes: the tax-free amount and the assessable amount. Please make note of the more favourable rates.

Swaziland The Swaziland Revenue Authority issued a new Practice Note on the issuance of tax deduction directives on lumpsum payments to employees or former employees. The Practice Note contains a number of requirements employers should adhere to, for example: • The application for the directive should be made 30 days before the termination of employment for each employee • Failure to remit withheld tax at this time will attract a penalty of 20%.

For the purposes of the Practice Note, "lumpsum payments" are any payments made upon termination of an employment contract from a pension fund, provident fund, preservation pension and provident fund, benefit fund, retirement annuity as well as terminal benefits, excluding salary arrears, whether or not such a fund was approved under the relevant provisions of the Order.

The Practice Note took effect on 1 March 2015.

Belgium Tax arising as a result of tax equalisation for globally mobile employees.

For globally mobile employees it is quite common that an employer will apply tax

equalisation. A tax equalisation approach ensures the employee does not have any tax advantage or disadvantage compared to working in their home country.

Since income taxes are a personal liability, the income tax paid or reimbursed by the employer will create a taxable benefit in kind on behalf of the employee. As a result this taxable benefit in kind should be included in the tax return related to the income year during which the employer has made the payment.

For employees working temporarily in Belgium due to an international assignment, this might trigger a Belgian tax filing obligation even after they have left Belgium.

An example: An Italian employee has been assigned to Belgium to work for 1 year (as from 1 January 2015 – 31 December 2015).

Based on the double tax treaty between Belgium and Italy, the Italian employee will become taxable in Belgium and will need to file a Belgian tax return for income year 2015. The employer applies tax equalisation. As a result, the employee will only have to pay tax as if he had never left Italy. In order to have an idea of what the tax liability is in this situation, a hypothetical tax calculation will be undertaken. This result will be compared with the actual Italian taxes (home country) and the Belgian taxes the employee will need to pay to the relevant tax authorities due to his international assignment. The difference will be paid by the employer. In practice this will often result in Belgian taxes being paid by the employer. The Belgian tax assessment for income year 2015 would be issued at the latest in June 2017. The payment will need to be made 2 months after receipt of the tax assessment, which will lead to a taxable benefit in kind and a tax filing obligation for income year 2017.

Therefore, the tax return for income year 2017 (which will need to be filed in 2018) will lead to reporting obligations almost 2.5 years after the employee has left Belgium.

Previously the Belgian tax authorities said that in arriving at personal deductions (e.g. children at charge, entitlement to personal allowance) allowable in the tax calculation of income year 2017, one could take the personal situation into Summer International HR Adviser

17

18

GLOBAL taxation account as it was on 1 January following the year during which the professional activity has been performed in Belgium (in the example: 1 January 2016). If the employee had 2 children at charge at that point in time, the tax deduction for 2 children at charge could also be claimed for the taxation of the benefit in kind during income year 2017.

From the tax year 2013, the Belgian tax authorities have changed their point of view in this matter. The reference year in order to determine which personal tax deductions the employee is entitled to regarding the taxable benefit arising in 2017 will be determined based on his situation on 1 January following the year during which the payment of taxes has been made by the employer (in the example: 1 January 2018). At this point in time the employee is no longer working and living in Belgium and therefore is not entitled to any personal tax deduction (e.g. children at charge). Only employees who are resident of the Netherlands or France may claim a pro rata of the personal tax deductions based on the double tax treaty between Belgium and the Netherlands/ France. For that purpose, the details of the foreign, non-Belgian, income earned during 2017 will need to be reported in order to determine the pro rata. Whether or not the limited tax benefit which can be claimed will compensate the effort of collecting this information will depend on each case.

Tribunal judgement regarding claiming treaty relief on personal tax return Based on Belgian domestic legislation, Belgian residents are taxable in Belgium on their worldwide income. They need to report their income from Belgian and foreign sources in their Belgian tax return.

If a taxpayer has the opinion that his professional income related to a foreign employment should be exempted from Belgian taxation based on the double tax treaty between Belgium (Residence State) and the Work State, the taxpayer can note this in his tax return.

The Belgian tax authorities argue that the burden of proof that the income has to be exempted lies with the taxpayer and advises them to attach specific information to the tax return that the income should be exempted together with supporting documents to prove that the conditions for the exemption are met.

In recent case law the question was raised whether or not the Belgian tax authorities International HR Adviser Summer

should issue a notice of amendment of the tax return if the taxpayer has not provided proof of his right to exemption for income from a foreign source or, can they just assess the income without granting any exemption?

The judgement dated 23 October 2013, was against the tax authorities. Based on the titles of the relevant code in the tax return (‘Income for which you are entitled to a tax reduction for income from a foreign source’) the Liège Tribunal has the opinion that by completing this part of the tax return, the taxpayer confirms that the income has a foreign source. If the tax authorities subsequently believe that the conditions for an exemption in Belgian are not met, it is required to send a notice of amendment to the taxpayer. If the tax authorities do not send a notice of amendment, the tax assessment will be cancelled. As the Belgian domestic legislation does not foresee an obligation to add specific annexes to the tax return with respect to the request for exempting foreign source income, the Belgian tax authorities cannot oblige the taxpayer to do so.

Defining an ‘employer’ per article 15 of the OECD Model Tax Convention Most double tax treaties (DTT) which are based on the OECD Model Tax Convention (OECD MC) include an article on the allocation of the authority to levy taxes between the Residence State and the Work State on employment income (usually article 15 OECD MC).

Article 15 of the OECD MC stipulates that wages and other similar remuneration derived by a resident of a contracting State will be taxable in the Residence State unless the professional activities are performed in the other contracting State. But the article also foresees that in the case where the professional activities are performed in the other contracting State (Work State), the remuneration can still be taxable in the Residence state where the following three conditions are met: • The taxpayer is not present in the Work State for more than 183 days in any 12-monthly period starting or ending in the fiscal year concerned • The remuneration is not paid by or on behalf of an employer based in the Work State • The remuneration is not borne by a permanent establishment of the employer in the Work State.

The second condition contains two elements: on the one hand, an ‘employer’

in the State of employment, on the other hand, remuneration paid "by or on behalf of " this employer.

Correct application of the second condition is only possible when the above two elements are correctly interpreted.

The concept ‘employer’ can be interpreted formally or economically. The formal interpretation means that the employer is the one with whom the employee has signed an employment contract. The economic employer is the one who exercises the authority over the employee, without the necessity of a legally binding employment agreement between both parties.

In the past the Belgian tax authorities published a circular (25 May 2005) confirming their point of view regarding the interpretation of the concept of an ‘employer’. In the circular the Belgian tax authorities clearly confirmed that they will choose the approach of the ‘economic employer’ in applying DTT relief. The circular specifies that the concept of the economic employer is characterised by the existence of a link of subordination between the employee and the employer, irrespective of whether there is a formal employment contract in place. They stipulate a number of criteria that should help settle the existence of a link of subordination.

For example: • The employee will follow the employment instructions from the company that employs him • The employee’s work will be performed under the responsibility of the company that employs him • The company that employs the employee can decide to terminate the employment.

The recent decision of the Ruling Commission is in line with the above mentioned circular of the Belgian tax authorities and confirms that the Ruling Commission favours an economic interpretation of the concept ‘employer’ referred to in article 15 of the OECD MC. It is worth noting, however, that not all countries use the economic employer definition. Therefore, it is recommended in an international employment situation to specifically verify with the countries involved what their approach is towards the concept ‘employer’ for the interpretation of the double tax treaty concerned.

BDO’s comment Many aspects relating to globally mobile employees provide detailed considerations for both employers and employees. There

global taxation is specific focus on the application of treaties which adds another layer of tax law on top of local country law. All parties need to be very clear on the application of this in Belgium.

Canada Withholding on Non-Resident Employees The 2015 Canadian federal budget, tabled on 21 April 2015, introduced changes of interest to employers of non-resident employees who work in Canada, as follows: Employers who are not residents of Canada are generally required to withhold amounts on account of the income tax liability of an employee working in Canada, in a manner similar to that which applies to employers who are resident in Canada.

This rule applies even if the employee is a non-resident who is expected to be exempt from Canadian tax because of a tax treaty.

Under the current rules, it may be possible for the employer to obtain an employeespecific waiver from the Canada Revenue Agency (CRA) in order to be relieved from its obligation to withhold. However, there are inefficiencies in this process.

The Canadian government has also proposed certain processes to provide an exception to the withholding requirements for payments made to employees who are in Canada for less than 90 days in a year, and where a treaty will exempt the income from tax in Canada. The exception from withholding will apply to payments by

qualifying non-resident employers to qualifying non-resident employees. This new measure will apply to payments made after 2015, and will provide relief to non-resident employers who frequently make payments to treaty-exempt employees. Under this new process, once the employer has been certified, they will not need to apply for a waiver for each qualifying employee.

An employee will be a qualifying nonresident employee in respect of a payment if the employee is: • Exempt from Canadian income tax in respect of the payment because of a tax treaty; and • In Canada for less than 90 days in any 12-month period that includes the time of the payment.

A qualifying non-resident employer must meet the following conditions: • Be resident in a country with which Canada has a tax treaty (special rules apply for employers who are partnerships) • Must not carry on business through a Canadian permanent establishment in its fiscal period that includes the time of the payment; and • Be certified by the Minister of National Revenue at the time of the payment.

In order to be certified, an employer must apply to the Canadian government in prescribed form, and the government will then grant certified status. The regulations to enable the certification process have not yet been released.

Although a qualifying non-resident

employer will not be obligated to withhold under these circumstances, they will continue to be responsible for preparing and issuing the T4 Statement of Remuneration Paid to non-resident employees. These statements are due by the last day in February following the year in which the payment is made. Note however, the penalty for failure to withhold on payments to non-resident employees will not apply to a qualifying non-resident employer for failing to withhold in respect of a payment if, after reasonable inquiry, the employer had no reason to believe, at the time of payment, that the employee did not meet the conditions to be regarded as a qualifying non-resident employee.

Please note that certification will not affect the determination of a non-resident’s Canadian tax liability and employers will continue to be liable for any withholding in respect of non-resident employees found not to have met the conditions of a qualifying non-resident employee.

BDO’s comment For those affected by the above changes it is recommended to act quickly to ensure compliance is up to date and to obtain the appropriate agreements with the Canadian Revenue.

Prepared by BDO LLP. For further information please contact Andrew Bailey on +44 (0)207 893 2946 or at andrew.bailey@bdo.co.uk

Employees Relocating To The UK? If you have employees moving to the UK, please share our website www.expatsguidetotheuk.com with them for useful information and links for expatriates of all nationalities.

Topics Include: Banking & Wealth Management - Expatriate Clubs - Embassies & High Commissions - Driving & Transport - Education: Schools & Universities - Healthcare & Hospitals - Immigration & Residency - Legal Issues - Leisure & Lifestyle – Moving & Relocation - PetTransportation Residential Lettings - Serviced Apartments - Taxation Launched in 2003, and updated annually, this handy online Guide serves as a useful reference to help expatriates settle into life and work in the UK. Please feel free to include this link on any information portal or template documents.

www.expatsguidetotheuk.com Summer International HR Adviser

19

20

taxing issues

Taxing Issues: Expatriate Terminology Imagine you are busy working when your HR Director calls you late on a Thursday afternoon to tell you that you need to deal with expatriate issues relating to an employee who is to work in another country. The employee is due to start in just over two weeks and the HR Director is now off on their holiday. You are on your own but the HR Director has suggested you talk to the individual and then the tax adviser in order to take matters forward.

If you are new to dealing with expatriates, the terminology used may appear to be a totally different language to that with which you are familiar. This article looks at some of the terminology and aims to help to guide you through the meaning of some common expatriate words. Please note that whilst certain definitions may be used within your own business, tax authorities and advisers may use different wording.

Whatever terminology is used, tax and social security issues multiply as soon as individuals start to work across borders or live outside their native country.

The Employment Package You decide to start off by talking to the individual to ascertain what’s been agreed.

The individual tells you they are initially going to the location for a 6-12 month period, with a possible extension. They advise that the CEO and HR Director said something about an assignment, a foreignservice premium, housing allowance, cost of living allowance, mobility allowance and relocation allowance, together with tax equalisation. The individual mentions that other expatriates they have talked to also get a hardship allowance and home leave. They want these too. They would like to see the assignment letter. If only you had an expatriate specific dictionary.

What’s An Expatriate?

Deciphering The Employment Package

The first place to start is with an “expatriate”. The Oxford English Dictionary defines an expatriate as a person who lives outside their native country. The traditional, yesteryear, impression of an expatriate is someone sitting in the sun, in their white suit, sipping their gin and tonic, counting their profits whilst the locals do all the work.

Some locals may say nothing has changed, but today businesses are far more attuned to the costs of international assignees and the potential for disparity both in terms of working conditions and pay with local hires. Today the word expatriate is much disliked and increasingly businesses use a different word, with most firms referring to their “international assignees”. The dictionary definition of an expatriate does not appear to encompass those individuals working in other countries whilst not living there, a common situation in today’s business world.

You may also come across the word “inpatriate”. Whilst an expatriate generally refers to someone leaving a country, an individual entering a country may be referred to as an inpatriate. Business visitors and short-term assignments cover those who undertake either sporadic oneoff visits and those anticipating spending a minimal period in the location.

The individual mentioned “assignment”.

What’s the difference between an assignment and “employment”?

You need to be able to distinguish between the two. Employment refers to the underlying contract either verbal or more usually written. This sets out the basic terms of employment, job title, location of employment, reporting and control, remuneration package, and termination covenants and clauses. This usually remains in situ whilst an individual works overseas. If it doesn’t, then a new employment contract may be issued either with the host country or another entity. This is the situation when the individual becomes employed as a local hire or through an employee leasing or international assignee company. For most non-permanent moves individuals tend to remain employed by the home country and an assignment or secondment letter is issued varying the terms of the original employment for the duration of the assignment. In most cases where there is an expectation, the individual will return to their home country, and their underlying employment typically continues in the home country. The tax and social security treatment will vary depending on who is the employer and this needs to be determined from the outset.

International HR Adviser Summer

The suggested components of the package are as follows: Foreign-Service Premium - this is an additional sum paid on top of base salary as a result of going to work in another country. It may be a fixed percentage or an agreed additional sum. Payment may be for a specified period only. It is not intended that the payment will continue on return to the home country, hence the reason why any additional payment is not merely added to base salary. It is fairly common to see uplifts in salary for the duration of an assignment, although some companies will not pay for interregional moves or developmental moves and a large number simply no longer pay foreign-service premiums. The payment is normally treated as taxable income.

Housing Allowance - is a payment towards housing costs at the host location.

An allowance is paid in cash to the assignee.

Such a payment is generally treated as taxable income, although usually there are greater tax advantages in situations where the employer rents the property directly and then makes it available to the individual. Certain companies apply a “housing norm”, which is a contribution by the assignee to the employer for the cost of provision of housing at the host location. A payment generally assumes that the assignee does not have continuing costs in the home country whilst they are on assignment and it would be fair to expect that a contribution would be made. A housing norm is usually treated as negative income and is deducted from taxable remuneration. However, some companies don’t want to get involved in property issues and do not wish to either rent a property or apply a housing norm, leaving the individual to make their own choices and decisions regarding home and host country housing.

Cost Of Living Allowance – as the name suggests this is a payment for the added costs of living at the host location. It may be referred to as a “goods and services differential” or some other variation. Service providers can provide indices on the relative cost of living differences between countries and cities. Such indices apply to “spendable income”, that which the individual has available to spend after usual monthly deductions have been made and family

taxing issues size taken into account. The indices can be calculated in many different ways, for example, they may be based on a standard index, which assumes the assignee will seek out familiar brands or an efficient purchaser index, which assumes assignees seek out similar but local products.

Negative cost of living allowances can arise where costs at the host location are cheaper than the home location, but few companies apply these. Payments are usually treated as taxable, but in certain countries and situations it may be possible to get tax and social security exemption.

Mobility Allowance – this is a one off payment for moving. Generally it amounts to a month’s salary paid to an individual for being willing to move. It can be paid on a net of tax basis so the individual receives a guaranteed sum. Common many years ago, fewer companies now pay such allowances. Payments are normally treated as taxable income.

Relocation Allowance – is a one off payment for moving. It is usually aimed at meeting the costs of moving to another location and may be made either in addition or opposed to reimbursement of actual relocation costs. It is often an amount that does not need to be backed up with receipts and is intended to meet sundry payments. It may be based on a month’s salary. Such a payment is generally treated as taxable income and there are often better tax advantages in situations where receipts are kept for genuine relocation costs.

Tax Equalisation – the principle behind tax equalisation is that the individual is neither advantaged nor disadvantaged from a tax perspective as a result of an international assignment. This takes tax out of the mobility question and should enable an assignment to proceed from the individual’s perspective without having to consider whether the move is to a high or low tax cost country and whether the move should be brought forward or deferred. The employer being responsible for actual taxes in the home and host locations achieves this. In return the individual pays to the employer a “hypothetical tax”, which is what they would have paid in tax in their home country ignoring assignment related elements of remuneration. For the employee, tax equalisation makes an assignment tax neutral. Tax protection as the name suggests, protects the assignee from an increase in the tax liability as a result of an assignment. If the tax liability

increases the employer picks up this additional liability, whereas if the tax liability decreases the assignee is better off.

In situations where an employer pays the tax liability for an assignee this is usually regarded as a taxable benefit, so you have a tax on tax or a gross up. Hypothetical tax is normally treated as negative income and is deducted from taxable remuneration.

Hardship Allowance – as the name suggests this is a payment for moving to a country with comparable hardship.

Such payments are often associated with assignments to areas of extreme discomfort or danger. One should not always assume your standards apply as, for example, miserable weather in Northern Europe may make for an uncomfortable assignment for those more used to sunnier climes.

Hardship allowances do vary with location, conditions and timing. Again any payment is usually treated as taxable income.

Home Leave – payments are frequently made by an employer to enable an employee to return to their home country.

Payments may be limited to a set number of trips per annum and restricted to a certain class of travel. Payments can be extended to family members and could also work in reverse to enable family members to visit the assignee at the host location. Home leave payments are often not taxable but conditions may need to be met for such exemption.

As an alternative or in addition to home leave, rest and recreation (R & R) payments/leave may be available to assignees in hardship locations.

You now know what you want to see in the assignment letter.

together with tax and social security treaties. They also ask about the work permit situation. Your head is spinning.

Going on your own holiday sounds ever more enticing!

Translating tax adviser’s talk will be the subject of our next article.

Andrew Bailey is national head of human capital at BDO LLP. He has over 30 years’ experience in the field of expatriate taxation. BDO has offices in 154 countries and 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 Tax Adviser You then call the tax adviser. They ask about the employee’s package and request a copy of the draft assignment letter. They ask you what you know about the individual and when you advise that the period involved is initially 6-12 months they start to mention domicile and residence, Summer International HR Adviser

21

22

Gender Pay Variance in Sodexo

How Gender Balance Delivers Better Performance The smartest businesses today are placing more women in management positions - not simply because it’s the right thing to do, but because they know this strategy will attract customers, foster innovation and drive profits.

A growing body of research shows that gender balance in the workplace boosts the bottom line and a range of other performance measures. For example, a 2013 McKinsey report found that companies with a top quartile representation of women executives had an average 47 percent higher return on equity.

Sodexo employs 420,000 people worldwide, providing quality of life services across diverse sectors including healthcare, education, corporate services, defence, justice, and travel and leisure.

The nature of our business means that people are our only asset and accordingly, we have placed diversity and inclusion at the heart of our mission. Within our D&I strategy, we have a unique approach to gender balance, aligning our efforts to our strategic business objectives and key performance indicators.

In 2009, we established our SWIFt (Sodexo Women’s International Forum for talent) network in order to identify and put in place the right strategy and actions to promote gender into senior roles in the business. The network has focused on fostering women’s access to leadership roles. In 2007, 16.5% of Sodexo’s top 300 leaders were female; today that figure is 23%, and 43% of Sodexo’s Executive Committee is female. As a result we have been named as one of the Times’ Top 50 Employers for Women and, in 2014, won the Global Award at the Opportunity Now Excellence in Practice Awards.

As the world’s 18th largest employer, Sodexo is a revealing testing ground for observing the impact of gender balance on performance in the workplace.

Early this year Sodexo finalised its own Gender Balance Study, with the objective of determining whether gender balanced entities (with 40% to 60% women in management), had higher key performance indicator results than those without the same level of balance.

The study was specific to Sodexo, in that it drew on our business KPIs, as International HR Adviser Summer

opposed to other similar studies which typically compare data across different organisations. The study also varied from other similar studies in its breadth; the Sodexo research ranged from C-Suite to ‘on-the-ground’ site management, whereas other comparable studies have focused primarily on board representation or on the C-Suite. In total, the research gathered data from 52,000 Sodexo managers working in over 100 entities across our global footprint.

The results of the study showed an impressive correlation between gender balance and performance indicators across every category, including employee engagement, brand image, client and consumer satisfaction, and growth and profits. It does not mean that “unbalanced” teams do not perform, but the study found their performance is less sustainable and predictable.

For instance, entities with gender balanced management saw an average increase of four per cent in employee engagement compared to only one per cent for the others. Client retention rates showed similar patterns. At the same time, customer satisfaction rises along with the percentage of women working onsite, proving how important it is for a business’ staff to mirror the diversity of its customers.

Better employee engagement and consumer satisfaction both translate into real and sustainable growth. Over the past three consecutive years, entities with gender-balanced management were 14 per cent more likely to record consistent organic growth; and 21 per cent more likely to show an increase in gross profit.

These are serious numbers. Sodexo will take this study forward by establishing global targets for gender balance.

Currently, 56% of our employees work in an entity considered gender balanced in terms of management. We will work towards bringing more entities into the desired gender balanced management zone. More generally, the results reinforce Sodexo’s existing efforts in continuing to leverage gender balanced management as a driving force in recruiting, developing, and retaining talent.

Today, women continue to take a

back seat in the labour markets of every country, especially at upper levels. While the average wages of women have risen, in the UK there is still a pay gap of 19.1%, and women make up only 21% of FTSE 100 boards.

Entrenched attitudes, habits and unconscious biases must change.

Organisations have to focus on developing and advancing female talent, and business leaders must play an active role in promoting diversity and fostering an inclusive culture where all talent can succeed. They must also be attentive to women’s more latticed careers, allowing them to “off ramp”, and supporting them when they choose to “on ramp.”

Ultimately, it is in our own best interests. Studies prove beyond a doubt that gender equity is better for business, better for society, better for GDP. Treating women as equals and allowing them to flourish will benefit every one of us, male and female alike.

Angela Williams HR Director, Sodexo UK and Ireland.

24

Aligning mobility and talent

Aligning Mobility And Talent: Using Data Analytics To Unlock The Potential There has been a growing trend in recent years for businesses to align their talent and mobility functions more closely. It has become obvious that real synergies existing between the two could unlock significant value to the business. Identifying the business decisions you need your data to support is a sensible place to start this journey.

Organisations are in the initial stages of realising this value – they have identified that senior leadership talent is developed through international experience and accept that talent is critical to the success of any business. However, it is likely that the various stakeholders are still looking for answers to questions such as: • Mobility: How can I connect the international mobility programme better to business and talent strategies?

• Talent: How can I get visibility of highpotential resources globally?

• Business: How can I ensure I have the resources available to meet the future business needs and growth objectives?

In this article, we explore how mobility and talent teams can enable the business to make better, more informed decisions around global talent deployment through the use of advanced data analytics.

It All Starts With Accurate Data Gathering The demand for data-driven insight from senior decision-makers continues to gain momentum with the increase of online interactive reporting technology.

This is creating a new demand for internal data consumption, and is placing greater pressure on mobility and talent functions to measure and demonstrate the effectiveness of people strategies from both a cost and value perspective. This begins with compiling relevant, accurate and interconnected data sets. Once a robust initial dataset has been established, it is significantly easier to layer additional data and gain deeper, more meaningful insights into the programme.

There are numerous HR management systems now available to help businesses track, capture and store vast quantities of global workforce data. However, there are still challenges with compiling accurate data that can provide mobility International HR Adviser Summer

Example Data Sources Required To Perform Meaningful Analytics Data source

Where is it stored?

What is it used for?

Demographic data

• HR or mobility management systems

• Visualisation of assignee locations and availability of resource • Assignee profiling metrics

Compensation (cost) data

• Mobility management, payroll or HR systems

• ROI (Return on Investment) metrics • Scenario cost modeling • Assignee selection criteria

Performance data

• Performance management system

• ROI metrics • Alignment with performance talent and mobility strategy • Correlating performance ratings against assignment demographics and compensation

Role definition and requirements

• HR systems

• Matching employees to most appropriate roles • Creating transparent career path options post-repatriation

Employee skills, qualifications and experience

• Talent systems • Matching employees to most • Cloud platforms such as appropriate roles LinkedIn • Creating transparent career path options post-repatriation

Business plan

• Finance • ERP (Enterprise Resource Planning) planning system

with a source of reliable outputs. The data required to perform meaningful analytics is unlikely to be integrated in a way that enables talent and mobility to be clearly linked. The table provides an indicator of the types of data sources we would expect to be analysed. These sources may be housed within HR data systems or within documents held by your immediate team and related functions. The data may also be held by your vendor network.

Connecting International Mobility To Talent And Business Strategies Historically, mobility and talent functions have remained distinctly separate, as have their employee and assignee data stores. However, it is becoming clear that the mobility function can assist talent management in addressing global workforce challenges.

Mobility professionals typically have

• Planning role requirements based on current and future growth expectations

greater visibility of global talent pools through existing assignment data and through their internal networks. Their experience can inform the assignee assessment and selection process to ensure the right individuals, with the right skills, are identified as potential international assignees.

If an assignment has taken place, repatriation strategies are often inconsistent, although this should be addressed as a priority. EY’s Global Mobility Effectiveness Survey, published in 2013, states that up to 24% of repatriates leave their company within one year of returning from assignment, and 41% simply return to their previous position. This doesn’t feel like the right level of ROI, considering the typical assignment cost is three times that of the domestic salary. However, used efficiently, assignments can provide an essential medium through which to develop top talent and to build the future leadership pipeline and bench strength.

Aligning mobility and talent Gaining Visibility Over Global Talent Pools Within global organisations, talent management is often fragmented and lacks transparency across borders and departments. This means talent decisions are not based on the strategic business needs of a rapidly growing global business, but on local requirements or recommendations.

Limited visibility over global talent pools and skill sets can result in the highest-performing employees being overlooked for progression. This can increase the risk of attrition, but can also create challenges with mapping existing to future talent needs in order to implement an effective workforce and succession planning strategy.

Despite the growing expectation that future leaders should have taken at least one international assignment, global processes to identify and engage key talent about their mobility aspirations are unlikely to be established.

Meeting Future Business Needs In an increasingly competitive global market for skills, it is more important than ever that companies understand where key talent resides. This is especially critical where multinationals are using existing resources to expand into new territories, particularly across dispersed, diverse locations such as the African continent.

The consequences of poor talent planning can be detrimental to the programme’s success. Organisations may discover too late that they simply do not have the talent required to implement new strategies successfully. At best, they will then need to inject excessive funding, buying talent on the open market and trying to play catch-up.

At worst, they will simply miss critical opportunities by becoming less relevant in their respective industries.

Mobility Using data analytics to: • Inform assignee assessment and selection criteria • Harness skills gained on assignment to benefit the business • Improve repatriation processes to retain critical skills • Demonstrate return on investment.

Mobility has access to retrospective assignment data such as demographic and compensation information. This enables them to build up a picture of the past, and to provide a framework for future assignment selection decisions, predicting best-suited candidates. Mobility can also use assignee performance data to monitor performance at each stage of the assignee life cycle – pre-, during and post-assignment. Capturing new and evolving skills over the course of the assignment allows the identification of suitable alternative career path options post-repatriation.

Using historic assignee data, mobility analytics can define what makes a successful repatriation. This process can then be replicated and implemented on a global scale to ensure smooth entry back into the business.

Metrics can assist in determining those more likely to leave the organisation, providing an early warning system for the business to help retain top talent and intervene if required.

Mobility analytics can also provide guidance around which assignee is likely to provide the best return on investment for the business, by measuring against a balanced scorecard of ROI metrics.

These metrics typically include speed to land, expected costs, attrition risk and performance ratings, to generate a score of success. The results deliver educated insights on the likely impact of programme investment, by allowing upfront validation of the potential success rating of an assignment.

Figure 1: Individual role mappings can identify potential roles in home and host locations as succession opportunities.

Figure 2: Summary views of talent demand, both visual (heat mapbased) and list-based, allow for rapid assessment of global talent requirements.

How Can Data Analytics Help Address These Challenges?

By more closely aligning the talent and mobility functions, their respective data sets can be combined to deliver valuable insights. These insights will enable senior stakeholders to make short- and long-term strategic business decisions with greater confidence than ever before.

Summer International HR Adviser

25

26

Aligning mobility and talent Improving Return On Investment And Assignment Success EY’s Mobility Analytics Team recently undertook a study for a global consulting organisation to: • Align its mobility data with key performance metrics set by its talent strategy • Select those best suited for assignments • Help realise cost savings through more successful assignment outcomes.

As a result, assignments provided a better return on investment through efficient resource selection, while matching assignees to the right roles, improving assignee satisfaction and overall success.

Talent Using data analytics to: • Identify the highest performers and ensure they are offered assignments • Improve succession planning • Reduce attrition rates.

A consolidated data set of employee, role requirement and assignment data can provide a single, comprehensive view and understanding of the organisation’s skills’ demand and supply. This enables informed planning of the movement of talent across the organisation, between business units, lines and geographies.

This immediately creates a much deeper pool of potential candidates for assignment roles, where talent decisions are often based more on informal networks than strategic business needs.

Recently, we have found this approach to be particularly effective for a client where the legacy approach of sending high-profile individuals to establish new country operations created a major thinning of talent in the home country, which had effectively become a net talent exporter.

Visualisation tools can also map individual employee demographic, performance and compensation data against broader business growth requirements on a global scale. This helps talent teams to determine who is available, which roles they would be most suitable for, and in which locations. Individual career aspirations, specific talent demands and succession planning insights are all incorporated into the analysis, allowing companies to match mobility aspirations of key talent with demand opportunities that need to be filled.

Performance and behavioral metrics, such as performance ratings, employee International HR Adviser Summer

experience ratings and time in role, can be used to provide early warning indicators of attrition. Proactive interventions, by communicating with the assignee or amending policy or assignment setup, are recommended in order to protect the investment made in the assignee and retain critical skills, experience and knowledge.

Reducing Attrition Rates And Creating Assignee Career Paths EY’s Mobility Analytics Team has recently been helping a client to align their talent and mobility data, with the explicit intent of creating clear and transparent future career paths for assignees and, as a result, create more engaged employees on assignment, and lower attrition rates post-repatriation.

The Global Talent Forum has used the outputs of this process to assess how the experience and skills gained on assignment open up additional career opportunities, either in the home country or abroad.

Business Using data analytics to: • Increase speed to deployment, particularly to diverse locations • Identify skills gaps and address in a timely way.

With historic data, such as relocation and immigration application process timing (based on types of assignments and employees), businesses are much better positioned to assess the viability and timing implications of moving candidates from one country to another. Feasibility metrics can also be incorporated, providing guidance around lead times and potential

risks of moving professionals from one location to another. This type of analysis can be performed by aggregating data from thousands of mobility assignments across multiple clients. Often, this type of assessment is best facilitated with an organisation that has access to large amounts of experience data.

In order for the business to achieve its long-term growth objectives, there are some key decisions that need to be made now. By effectively using the various data sources discussed, talent and mobility can provide valuable insights to the business on the skills and experience required to implement effective workforce planning strategies and accelerate growth.

Implementing Workforce Planning Strategies In Line With Business Needs A large automotive organisation recently used mobility and talent data to align its policy of future women leaders in the business. After an initial review, they discovered that the number of women on assignment, which was a future leader’s criterion, was significantly less than needed.

The use of data highlighted this, and helped to create future assignment selection criteria better aligned with the strategic needs of the business to meet this objective.

So, What’s The Future Of Data Analytics In Aligning Mobility And Talent?

Infusing analytics into fact-based decision-making, letting the data do all the hard work, is the key to aligning mobility and talent successfully.

Figure 3: In addition to providing a view of projected surplus and deficits of skills, leveraging data can provide high-level indications of feasibility of candidate deployment between locations and the benchmarked costs of each candidate.

Aligning mobility and talent We believe that the use and benefit of data analytics is only just beginning to be realised, but over the next 10 years it will become central to every major business. The most successful organisations will use detailed data and benchmarks to not only gain insight into mobility and talent but in a way that drives competitive advantage in a fast-paced market. Organisations can navigate the future and make better decisions across a range of challenges, including talent, with greater foresight than ever before. In doing this, mobility and talent professionals can become strategic partners of the business.

The data sources required to perform this level of analytics already exist within organisations and are relatively easy to access. Most businesses simply need support in organising and aggregating the data in a way that allows these valuable insights to be obtained.

The views reflected in this article are the views of the authors and do not necessarily reflect the views of the global EY organisation or its member firms.

Gareth Paine is a director leading EY’s Human Capital EMEIA Global Mobility Analytics business in London. He has over 12 years of consulting experience in the mobility, reward and HR technology workspace, with a particular focus on helping clients realize the value from data housed within their global mobility and broader HR business.

For further information please contact: +44 2079516943 or email GPaine@uk.ey.com

Nathan Sasto is an executive director in EY’s Human Capital EMEIA Global Mobility Analytics business in Johannesburg. He has over 11 years of consulting experience, with a particular focus on advanced analytics and modeling in the human capital space. Nathan works with organisations to build consistent, empirically backed people strategies and the technical infrastructure to support and deliver them.

For further information please contact: +27 11 772 4021 or email Nathan.Sasto@za.ey.com

Summer  International HR Adviser

27

Partner For Success

Partner For Success: Extending Global Mobility Teams With Relocation Management Companies Global mobility professionals are in an influential position in today’s workforce, with the responsibility for a range of essential global assignments and critical business travel that supports a company’s business strategy. Today’s internal corporate mobility professional is a blend of HR expert, recruiter, immigration administrator, household goods moving consultant and project manager with a profound understanding about the entire mobility process. But more often, their capabilities and that of their mobility teams are stretched to provide far-reaching oversight, and charged with managing all opportunities of global business. Companies are hesitant to increase their internal mobility teams, and are aware that they need reliable partners to expand their global reach and bring capabilities that both align with and broaden their internal competencies.

A Redefined Role For Relocation Management Companies Along with the increased demands on mobility teams, relocation service providers have been tasked with increasing responsibilities to support the needs of corporate clients and their relocating employees. In recent years, the tendency to outsource for additional relocation support has been on the rise. Many companies, such as SAP, are recognising the benefits of scalability, specialised expertise and global reach.

Furthermore, the flexible relocation outsourcing models have made this approach to meeting mobility needs increasingly accessible to companies…

• Relocation Management Services: this offering enables companies to outsource their entire end-to-end mobility process – including assignment management and required secondary services • Secondary Services: opting to outsource select relocation services, such as visa and immigration, helps companies to incorporate specific resources and support they need • Household Goods Services: any move requiring goods to be shipped will

involve a company outsourcing the household goods shipment – this can either be managed directly or through a move management service.

A Benchmark For Mobility Outsourcing The mobility programme at SAP is active in the Americas, EMEA and APAC, including 2,000 international moves per year, plus international travel, resulting in on-going challenges related to global assignments, transfers, and related compliance requirements. Finding solutions for those challenges requires a strong partnership between the company and its RMC partner to ensure the partner functions as an extension of the internal global mobility team. They recognise that is not possible to accomplish internally without building a much larger team and incorporating on-site specialists.

Like many global businesses today, SAP’s internal mobility team faces challenges to execute relocations in limited timeframes, large volumes and uncharted locations it can be nearly impossible to accomplish the move without an RMC partnership that has deep and wide expertise with experience to ensure the correct actions are taken every step of the way. SAP shares mobility responsibilities with their RMC with the internal team being responsible initially and a seamless hand off to their RMC partner is required in order to determine the most suitable relocation package, address compliance issues and understand and obtain approval of costs.

Operate Globally By Providing Specialised Support Locally There is a significant dilemma in the mobility arena for companies today: it is difficult to be both global and local, but business objectives demand it. It is a dilemma that will only grow more pronounced in coming years.

With strict governance models in some areas around policy and benefits packages, companies are discovering the need to be more consistent and more aware of each region’s workforce arrangements, which is increasingly more challenging.

For SAP, business travellers are an increasingly serious aspect of global mobility, particularly in the EMEA region, where countries are in close proximity to each other. While employees might not see this as a big issue, especially since in many cases they can travel with relative ease from one country or location to another, the company is still required to be vigilant about compliance for business travellers at all times. That means companies need to consider: • Creating awareness throughout the company about compliance requirements and the impact of noncompliance • Tracking employees and • Ensuring all official documents are in place • SAP has developed an IT solution to support and monitor all international travel movements of their employees.

For example, in the European market the laws change quickly creating additional challenges for companies that can be addressed through an RMC partner with a comprehensive network that can provide local expertise and policy tracking. Although it is not a large region geographically, with so many countries in such close proximity that have so many different laws, the complexity is high. Additionally, there can be countless country combinations, each with their own immigration and border requirements. Without local expertise and previously established relationships it can be a challenge for companies to know how to provide effective on-the-ground support for employees, such as when to sign commitments during the global mobility process or how to accelerate the speed of delivery of services.

A First-Class Employee Experience Corporations also must address the needs and anticipations of their internal ‘customers’ – both assignees and travellers. The RMC can help educate the employee about the assignment, manage expectations, and also support the Summer International HR Adviser

29

30

Partner For Success company’s message about the importance of making one’s own investment in an assignment. RMC’s provide a third-party resource to cater to employees during their moving experience while also serving as an advocate for the company to find solutions if any obstacles arise. It is equally important for a company to work with an RMC partner that can help ensure consistency in their employee relocation programme through process excellence, technology as well as communication and information exchange, regardless of the number of times the employee has moved or the location of the move.

Identifying solutions comes from having the experience, planning, expertise as well as the right insights to make an informed decision. Many companies see outsourcing as a ‘best of both worlds’ situation, because it allows the company to maintain a capable internal mobility team and create business strategy. While the strong RMC partnership companies develop means that they maintain control over the end-to-end process and have more resources through the RMC’s knowledge, such as have a way to collect and parse analytics, and network which they can leverage to manage challenges and heighten their success.

The flow of communication is another reason that companies find outsourcing fits their business needs: It improves the overall experience for all employees touched by global mobility, and assignees prefer the single point of contact, so that they need only share their personal information one time, and the information is made accessible as needed for other providers, without disturbing the assignee again for the same data. RMC partners can also offer added value for moves involving executivelevel employees to ensure the needs of the individual and their family are met throughout the process.

It is not uncommon for “ad hoc” issues to arise that must be addressed, these may be better handled through an outsourced partner instead of taking time from an internal team. An uncommon problem may need to be solved or missing documents may need to be located quickly that requires the RMC partner to take the lead while also ensuring the employee feels entirely in control. Such assistance helps a company focus on the big picture, stay more strategic, while also giving them the comfort and confidence to know that important issues like compliance International HR Adviser Summer

requirements - as well as smaller, logistical ones - are being professionally and meticulously addressed.

An Investment In Mobility One of the most significant characteristics of enduring, successful organisations is their ability to transform as rapidly as their environment. In the global arena, this means incorporating new ways of recruiting, managing, moving, integrating talent, and helping employees deliver an optimal performance. Investing in mobility enables companies to achieve their business objectives by ensuring the right employees are located in the right place at the right time. RMC partners can offer value with added efficiencies both inside and outside of companies by ensuring the mobility function has a seat at the planning table to demonstrate through insight and data how important it is for mobility to be included in the company’s strategy from the ground up.

The ability to scale the mobility programme is a must-have for global companies; both for the current environment and the future, and an exceptional outsourcing partner can adapt and grow with a company’s needs and requirements. With the volume of mobility needs increasing year-over-year at a rate of 30-40%, SAP is challenged with handling the expanding volume with the same size team and needing resources across regions.

Effective and innovative technology, accurate estimating tools, and accurately tracking and reporting through an RMC partner, provides absolute access to mobility programme data that enables companies to continually fine-tune processes, improve programme management and identify greater cost-efficiencies. Most importantly, it can enable companies to keep delivering a high-quality mobility experience for employees.

When considering a partnership with a relocation management company there are many questions that should be asked and answered. An RMC partner should be capable of helping you achieve…

• Scalability - Partnering with an RMC can provide needed mobility resources without having to build internal capabilities, which can require a significant investment and be difficult to deploy across fluctuating volumes and geographies • Efficiencies - Access to mobility experts and resources will enable you to recognise opportunities for efficiencies

in areas such as mobility spend, timelines, vendor management and policy administration • Global Reach - Deliver consistent, quality mobility experiences to your relocating employees with on-the-ground mobility expertise across the globe.

As companies enter emerging or developed markets for the first time, or expand their global business in an area, they need to be able to project costs and assess talent requirements and provide consistent, highquality assignment and travel experiences to their employees. They must support their mobile workforces globally in a way that retains their talent, fulfills the company’s current objectives, and positions effectively for future goals. For many companies, that can only be accomplished with an RMC that understands their culture and business so well the capabilities are a seamless and powerful extension of their own team.

Tanya Thouw is Head of Global Mobility for SAP and oversees international HR and mobility, and is responsible for all global assignments (short, long-term and permanent moves), transfers, international business travel, and related compliance issues. Prior to this, Tanya was a Consultant for the SAP HCM solution and responsible for the implementation of Payroll, Pension and the Management of Global Employee solutions of SAP. Tanya has a law degree from the University of Heidelberg, Germany.

St e ve Ma r s h a l l , Managing Director Europe joined SIRVA in early 2012, bringing with him over 20 years of relocation industry experience. He has held a variety of leadership roles in the European, Middle Eastern, and African (EMEA) market, as well as having the personal experience of completing a twoyear assignment in Paris, France.

Steve began his career as Operations Director, he has also served as President of EMEA, Managing Director of EMEA at relocation and moving Services Company and prior to this, he was a European Sales Leader at a mobility management company.

These combined experiences have given Steve a unique insight into the relocation industry, and its component parts, enabling him to structure internal teams and design innovative mobility solutions to meet the unique needs for every customer.

32

health

Improving The Health Of Millions Through The Global Chief Medical Officer Network We recently announced the launch of the first ever global Chief Medical Officer Network, a group of worldleading clinicians committed to bringing about a lasting improvement to the world’s health.

Experts in behaviour change, the network is steered by Bupa and is a unique collaboration of Chief Medical Officers from a range of industries as diverse as automotive, tech, and soft drinks. The network was formed to combine their insight, experience and global reach in order to tackle the biggest health challenges in the world through driving behaviour change – and more specifically, behaviour change within the workplace. Collectively, the network has the responsibility of a workforce of over five million people, the equivalent of the population of New Zealand.

The workplace presents a huge opportunity for improving the world’s health. With almost half of the world’s population in work, it’s a natural avenue for helping people to be healthier in their everyday lives. However, it's easy to talk about health improvement, but very hard to do. All too often we just tell people what they need to do, sometimes with a large investment but with very little impact.

One of the chief drivers of the CMO Network is behaviour change – we know that telling people what to do doesn’t work, so how do you change behaviour?

This is a world of subtle influence: a world that advertising agencies have inhabited for many years, yet an area healthcare has almost apologetically approached. For if we are to change behaviours, we need to learn the skills of marketers.

As a network, we’ve agreed upon some core areas of initial action. Our first area of focus will be on the development of key standards for wellness in the workplace: what does a healthy workplace look like? This is not a new path to tread: a great deal has been written on the topic already, but we see our role as reinforcing global health standards which have been determined by organisations such as our partners, the World Heart Federation.

International HR Adviser Summer

It's a well known, but often forgotten fact, that the things that make us healthy are largely lifestyle choices (40%), then what we call the ‘social determinants’ of health, such as education (30%), genetics (20%) and finally healthcare treatment – a tiny 10%. Yet globally, governments and organisations focus most of their attention on healthcare systems and treatments – completely ignoring the other 90%.

With this lens as our first call to action, we decided that our initial focus area would be on smoking. We agreed that the businesses in the network would align around smoke-free workplaces across all of our organisations globally. This is not without significant challenge for many organisations: however, it’s a fundamental first step to improving the health of the world.

Next, we agreed to take action on movement. This means two things - firstly the recognition that exercise has great health benefits, but also that sedentary lifestyles are an independent risk factor for many diseases. In fact, if you exercise but spend all day sitting down in the office, the benefits slowly become redundant. Another action, therefore, was to set up a global movement challenge between all the global CMO Network organisations. Healthy competition is a great motivator for behaviour change, so watch this space for details of a global corporate exercise challenge.

At Bupa, being healthy includes both body and mind – so we also agreed to focus on an area we call positive energy.

This includes psychological wellbeing, sleep and mental health. We all agreed this is a huge issue across many organisations, and sometimes it’s one that is hardly ever discussed. The interventions in this area were less clear and to an extent are personal to the individual, but some techniques we discussed included the articulation of a personal purpose, volunteering, and tactics such as meditation. We therefore decided that we would pilot some of these in willing organisations looking at how we can use behavioural change techniques from our research.

Finally, we agreed it was important that we focus on diet. Again, many behavioural

change techniques have been tried already, to mixed effect. This area requires further testing and experimentation within willing organisations in our network, so we’ll aim to define a strategy for intervention in the future which we feel really causes behaviour change.

The global CMO Network is a world first and offers us a unique opportunity to make a real difference to the world’s health via workplaces. Working alongside other organisations, civil society players, governments and UN agencies, we can significantly affect behaviour change through our recommendations on workplace wellbeing and ultimately, public and community health.

At Bupa, we are driven by our commitment to being a purposeful business, and our belief that the private sector has a responsibility to contribute to the health of the world.

To read more about the network and gain insight from our 32 global behaviour change experts, visit Bupa. com: www.bupa.com/ourvision/tacklingthe-toughest-challenges-in-healthcare/ workplace-health/the-cmo-network/.

Dr. Paul Zollinger-Read, Chief Medical Officer, Bupa

Autumn  International HR Adviser

34

EMPLOYMENT LAW

Employment Law And The UK’s EU Referendum UK employment lawyer Juliet Carp takes a look at the interaction of EU membership with UK employment law and the potential impact of UK withdrawal from the EU. Imposing consistent minimum employment law standards across the EU is intended to facilitate the European market. Put simply they help create a level playfield. In Eurospeak they prevent “social dumping”. “Bad” employers who are subject to less stringent employment laws should not be given competitive advantage over ”good” employers who pay higher employment costs associated with “better” laws. In theory, at least, we would expect businesses located in countries with advanced employment laws to benefit.

European employment laws can only be imposed on people in the UK where the European Treaty allows for this.

This, and the economic focus of the EU, has meant that European law does not bite evenly across UK employment law.

In some areas, such as discrimination, European law is key. In others, such as industrial relations, the impact of EU law is minimal.

Which UK Employment Laws Are Most Affected By Europe?

The following are examples of areas where UK legislation was introduced to comply with, or is underpinned by, European law: • Equality: sex, race, disability, sexual orientation, religion and belief, and age discrimination laws are all underpinned

by European law.

• Family Friendly Laws: minimum maternity pay and leave, parental leave and time off for “domestic emergencies” are all required under European law • A-Typical Working: part time, fixed term and agency working are all regulated by European law • Transfers Of Undertakings: UK laws protecting employees on sale of a business or outsourcing (known as “TUPE”) are based on an EU directive, although they now reach beyond the minimum requirements of European law • Collective Consultation: European law has brought us national works councils; International HR Adviser Summer

European Works Councils; collective redundancy and TUPE-related collective consultation obligations • Working Time: UK regulations implementing European law require minimum holidays and restrict working time, night work and shift patterns.

The following are examples of UK law where European law is less relevant: • Dismissal: minimum notice periods, statutory redundancy pay and unfair dismissal laws are home grown.

EU law generally does not interfere with dismissal laws unless they are discriminatory • Whistleblowing: Whistleblowing legislation was introduced by the UK. • MinimumWage: Europe does not set any minimum wage, and is unlikely to • Industrial Relations: The European Union has interfered very little with industrial relations systems, which vary widely across Europe. UK collective bargaining, recognition and strike laws are our own. There are some crossover constraints, for example, some competition-related EU case law has developed in relation to cross-border industrial action.

The interaction of UK and European law is in many places more nuanced.

For example, by comparison with its European neighbours, 1970s Britain had advanced race and sex discrimination laws. The subsequent influence of Europe on UK discrimination law has, nonetheless, been very significant. It was European law that brought so many poorly paid part-timers pension rights for the first time, and that established the principle that women and men should retire at the same age. Similarly, we had UK maternity legislation long before the Pregnant Workers Directive. That directive extended the availability of paid maternity leave and led to a raft of smaller changes to maternity laws through the 90s. Since then European case law has continued to push the boundaries, in some cases at considerable inconvenience and expense to employers. The impact goes beyond the concrete results for affected employees and employers.

Attitudes to discrimination and parenting

have changed so much in the last twenty years that it would be hard to find anyone who has not been affected in some way.

What Would Happen If The UK Left The EU? If the UK were no longer bound by the European Treaty, then it would be possible for Parliament to amend or withdraw legislation governed by European law and to pass legislation to change case law developed under European law. It seems likely, though, that much of the existing legislation will be retained. For example, it would be difficult for any government to remove discrimination laws or holiday rights that most citizens now regard as normal. While there might be some tinkering around the edges, it seems likely that the core of existing EU-based laws would stay.

More Or Less Stable?

Employers often say that the content of new laws is less of an issue than the frequency of change and ongoing uncertainty. It is generally acknowledged that change places a heavier burden on small businesses.

There is always some tension between the EU and UK legal systems. European law is not common law. UK precedent rules do not apply and European directives are often (deliberately) drafted loosely or in aspirational terms. This can sometimes lead to surprising developments in case law, such as seen recently in relation to the interaction of commission and compulsory holiday pay. In the round though, European law is stable. New directives are negotiated at length with stakeholders before they are adopted; implementation periods are long (two years is typical); and employers cannot fairly argue that they are taken by surprise by the final text of a new directive. Surprises for employers are more likely to arise from the domestic implementation process or developments in subsequent case law.

It is worth making the comparison with the more democratic domestic alternative.

Employment law affects ordinary working people and business every day: it is intrinsically political. Governments with different political makeups naturally look to make changes – and in areas that do not touch on European law those changes can

EMPLOYMENT LAW be implemented very quickly. Domestic changes are not always “progressive” in the sense of moving in one direction. UK unfair dismissal laws are a good example of this, with changing political views on the importance of “cutting red tape” or “fair” processes requiring substantial adaptation by employers within relatively short time frames.

politicians, European institutions and stake holders to come up with good ideas for new law that would be acceptable to sufficient Member States – and it is increasingly hard for lawyers to think of new ways to push the boundaries of existing case law.

In this context, it seems likely that EU employment legislation going forward will be relatively stable.

More Of The Same?

So Where Does This Leave Us?

A large number of quite significant directives relating to employment law have been introduced over the last 20 years. That trend is unlikely to continue over the next few years. In 1973, the UK joined a fairly homogenous core group of six Western European countries. There are now 28 member states, many of whom have had to accommodate a substantial body of European employment law in a relatively short space of time. Moreover, the economic situation has prompted a trend towards employment law deregulation across Europe, so that even countries that are comfortable with existing laws have little appetite for more. As time goes by it becomes increasingly difficult for

The pace at which new European laws are introduced has already slackened and significant additional demands are unlikely to be made of the UK. Existing European employment law has largely become part of normal UK working lives, so it seems likely that we would want to keep many laws with European roots.

There can be tension between democracy and stability and it is true that UK citizens have less democratic control over UK employment law while the UK is a member of the EU, but in the main the practical results have been positive and the advantages to UK business and employees of maintaining the status quo should not be underestimated.

Juliet Carp is an employment law specialist in the London office of Dorsey & Whitney (Europe) LLP. Email: carp.juliet@dorsey.com

Summer International HR Adviser

35

36

THE GLOBAL SERVICED APARTMENT INDUSTRY REPORT

GSAIR - Highlighting The Trends, Changes, Debate And Discussion Within The Serviced Apartment Industry Every 18 months, The Apartment Service, Travel Intelligence Network (TIN), and over 40 recognised and respected industry experts from around the globe, begin the process of compiling the most comprehensive and thought provoking report on serviced apartments and corporate housing that is available today.

GSAIR (the Global Serviced Apartment Industry Report) - now in its 5th edition - covers more subjects and discussion points than ever before.

Developed for a wide audience of buyers, investors, bookers, operators and guests, GSAIR aims to help interested parties learn more about where the sector is going, who has what - and where - and what exactly the issues are facing the industry - in every aspect of the business.

Subjects range from service to security, from buying to booking, from investment to infrastructure, from Angola to Adelaide, and everything (and everywhere) in between.

Charlie McCrow and Bard Vos (from The Apartment Service) and Mark Harris (from TIN) invest nearly 6 months responsibly compiling information and interviewing representatives from a range of primary and secondary global sources that are closely aligned to the serviced apartments sector.

Published and distributed globally, GSAIR analyses the results of The Apartment Service survey. The overarching message in this 5th edition, 2015/2016, is that the global supply of inventory has increased by an impressive 14% since the last report, and that the market has doubled in the last 12 years.

The popularity of serviced apartments is continuing to grow, the industry is being recognised, investors have seen and are reacting to the opportunity, and users are enjoying the products (fig 1).

Charlie McCrow shares his take on the outcomes of the report and the background to the development and exponential growth of an industry.

Evolving…

The apartment sector has evolved differently over the past few decades across the global regions. Since the early 1990’s, the US and Singapore led the way for the sector as we know it, albeit originating with different product models and target customers - their chains are still some of the largest by numbers of units today.

The understanding of the definition of ‘what is a serviced apartment’, and what the varying property types are under this umbrella expression, is crucial in understanding the way markets have,

and still are, developing globally. And importantly – it helps us to understand the new emerging brands.

The next few paragraphs will take you on a journey from the early 1990’s to the present day, and will help to explain the growth of recognised brands that are still shaping the landscape.

The US - Following The Trends Of The ‘No-Frills’ Hotel Concept The development of extended stay hotels in the US increased dramatically during the growth of popularity of the ‘no-frills’ hotels concept. This model had less overheads for hotel operators keeping running costs to a minimum.

With plenty of available land, building ‘purpose designed’ extended stay hotels happened quickly. Residence Inn became the largest brand with over 150 locations in the 1990’s. The benefits of the concept was quickly being recognised by the users (fig 38).

Oakwood quickly expanded their property operation business to include national corporate housing services and later expanded into the management of properties in Asia and a base in Europe.

More recently, US extended stay hotels (aparthotels) experienced growth in 2014, with revenues rising at the fastest rate since 2006. This was against a backdrop of user demand for extended stay properties increasing with less supply growth in the sector (according to the recent Highland Group report).

The Far East – The Change From Residential To Serviced Apartments The APAC model of serviced apartments developed from residential accommodation that was adapted to house shorter stays with added services.

The Ascott Group opened their first ‘serviced residence’ as an exclusive club in 1984, and another in London a decade later. They subsequently bought Citadines in the early 2000’s, creating the foundations of the global brand that exists now. French in origin, Citadines had just merged with Orion, another French International HR Adviser Summer

THE GLOBAL SERVICED APARTMENT INDUSTRY REPORT professional serviced apartment operators with expansive teams across the globe, as well as small operators that have reacted to local demand in their markets.

Serviced Apartments and corporate housing unit numbers have increased in key cities across Europe versus aparthotels due to a consistent demand for an extended stay option, especially in markets where there has been limited entry of aparthotel products.

The aparthotel brands are now emerging strongly across the region. Players such as Derag, Staybridge, Vision and Adagio are all looking for further opportunities to widen their footprint.

Market Changes – Investment And Growth

aparthotel brand.

APAC is strong with investment in secondary markets, reflecting that primary cities such as Hong Kong and Singapore may have reached their peak.

Both Frasers and Ascott have shown their capability to grow their brands outside of their home territory.

Europe – Restricted Opportunities, New Builds, Conversions And Communities The rest of Europe, outside of France, had a limited growth in the same time period.

The restricted opportunities to build new properties in older, densely populated cities, the high cost of land (when available), and also the lack of rental

property communities, combined with the shorter distances and larger numbers of countries concentrated in Europe, has made it easier to continue to use hotels and to keep the majority of visits ‘short’ across the continent (fig 27).

Adagio (Accor), a European brand and increasingly international operator of aparthotels, has two distinct brands now operating in Europe and LATAM. The concept of the new build aparthotel model has gained popularity versus the original ‘corporate housing’ stock that originated from residential accommodation units.

The corporate housing and serviced apartment offerings however, have been upgraded over the past 15 years by

The great news is that not just the aparthotels are experiencing increased demand. The traditional serviced apartments and corporate housing players have seen continued growth and recognition across all markets and platforms due to the key differentiators of space, privacy and a ‘home from home’ environment, these benefits are generally not delivered by a traditional aparthotel.

Serviced apartments are growing in volume in the secondary and tertiary locations where aparthotel developers (currently) do not see the potential, or perceive that they are able to realise the returns for the size of property that they would be looking to build.

The interest of institutional investors into the private rental sector is now growing across Europe and the UK. Companies such as Essential Living are introducing products into the space that will enhance the stock of serviced apartments available on the market. There is still great potential for rapid growth of supply in the UK markets.

The Growth Of Global Players The survey (conducted by The Apartment Service in quarter 4, 2014) of the largest global operators, highlights the changes in unit numbers and distribution since our 2013/2014 GSAIR report (fig 42).

One of the core constrictors to growth of the industry has been the lack of available land, especially in high density cities across Europe and APAC. Countries like Australia have become far better developed than other similar sized countries where the concept has been slow in taking off, possibly largely for this reason.

Summer International HR Adviser

37

38

THE GLOBAL SERVICED APARTMENT INDUSTRY REPORT Fig 42

robust security plan.

Understanding and managing risk in every environment is a key factor for every stakeholder across the globe.

Smart Data, Not Big Data Management information that is provided without analysis as ‘big data’ is consistently frustrating buyers. The drive to analyse trends, provide recommendations and present ‘smart data’ as part and parcel of every local, regional and global contract is prevalent.

Buyers want the kind of ‘smart’ information that can be consumed, shared and broken into outputs to enhance the management and direction of their serviced apartment programmes.

Up until now, the largest ‘chains’ have been from the US, Australia, Singapore and France, however, the market share of these largest operators reduced over the past 18 months as new entrants are accounting for increased demand.

Adagio, Ascott, Oakwood and Frasers all have extensive expansion plans – some US chains such as Staybridge (IHG) and Residence Inns (Marriott) are looking at further expansion in Europe with both already operating several properties.

Other regions experiencing growth with large potential are Africa, India and China, where the aparthotel concept is quickly gaining pace.

So how does this growth affect the industry? Let’s review from the sales perspective.

Communication, Connection, Commercial And Clients As discussed above, over the last 18 months since the 2013/2014 GSAIR report – the serviced apartment industry has continued to grow exponentially.

The industry is enjoying sharing ideas, information and resources through many vehicles, and continues to drive conversation, debate and opinion that has moved the industry forward.

As Charlie alluded to, many operators have grown their brands very successfully, and there are now more and more independent operators across the globe that are striving to gain a marketing platform for their products – hence the successful arrival of alliances (such as The TAS Alliance), partnerships and serviced apartment booking agencies into the arena.

There are now consultants, associations and affiliates to the sector who have become International HR Adviser Summer

more confident in their relationships and delivery of key messages.

Alliances have been built and developed to provide competition to the original global players that have dominated the markets for the last 10 years, leveraging availability for buyers and providing access, data and management information through one platform.

The report shows that over the next two years, the industry will see a focus on the following areas:

Distribution And Yield There is a definite drive for intelligent distribution of available inventory from operators to the buying community through an array of marketing platforms that provide access to global booking agents (TMC and RMC) and direct buyers through the widest and most successful booking channels.

Savvy serviced apartment operators (especially those that have come from a hotel management background) are now yielding their products, and mirroring the actions of hotels and airlines to gain the most revenue from every transaction.

Revenue management has hit the serviced apartment world, and every corporate buyer knows exactly what the impact of this means to the availability of negotiated rates and available units when you have high demand in a market.

Health, Safety, Security And Compliance There is a high requirement to deliver information and solutions to all corporates, travellers and assignees that shows compliance, adherence to health and safety needs, and importantly - a

Partner Engagement Realising the value of partner engagement versus supplier management, in order to provide a global programme and ensure that a guest as happy in deepest darkest Peru as they would be in Paris, the supply chain managers need to be fully engaged with their suppliers.

Training, development, investment in time and relationships, continue to be the only route to help create the expected levels of service, the right product, the fastest response times (both for booking and issue resolution), and to be able to show acute market awareness in a fast paced and ever-changing environment.

Exceeding Expectations Setting expectations and more importantly, exceeding them, is one of the most satisfying parts of any business.

Ensuring that brand marketing, property information sheets and online profiles are recognisable and deliverable, has always ensured that users return to a product or brand and on-going business demand and opportunity is sustained.

Hospitality Whether a provider has the most basic product or the most luxurious – being able to safely access a comfortable, clean apartment with everything in working order (including internet), with a warm welcome, are the absolute expectations of any guest and is a measure of a product’s hospitality. It is widely recognised that hospitality is what makes the difference, it is a reflection of the brand’s personality.

The Future So where from here? One message is clear, serviced apartments, corporate housing,

THE GLOBAL SERVICED APARTMENT INDUSTRY REPORT extended stay properties and aparthotels have fast become a trusted and respected accommodation solution across the globe for extended-stay travellers.

Markets (including secondary and tertiary) are growing and developing quickly, and buyers are becoming more familiar, educated and informed about the opportunities to use this relatively new accommodation solution.

The Apartment Service is delighted to present the 5th edition of GSAIR to the market, this recognised and celebrated inclusive report continues to highlight the trends, changes, debate and discussion within this fast moving and innovative industry.

By Jo Layton featuring Charlie McCrow.

Jo Layton, MD Group Commercial Sales, The Apartment Service. Jo Layton has joined The Apartment Service as Managing Director – Group Commercial Sales. She has successfully established The Apartment Service’s new Alliance brand as part of her overall remit to develop the company’s successful agency, network and Roomspace brands. Layton joined from BridgeStreet where she was responsible for sales and marketing throughout EMEA and APAC and was instrumental in the expansion of the UK office. www.apartmentservice.com

Charles McCrow has been the driving force behind The Apartment Service’s 33 year success. With a background in property development and construction, Charles is a long standing member of several industry bodies and a founder member of the UK’s Association of Serviced Apartment Providers (ASAP).

Under his leadership the company has been at the forefront of innovation in the sector, the latest example of which is the TAS Alliance. Charles’ investment in technology and people has helped power the growth of the serviced apartment industry, resulting in the launch of the sector’s first alliance of independent operators to provide an end-to-end solution for buyers and travellers globally.

Summer International HR Adviser

39

40

THOUGHT LEADERSHIP

Unconscious Bias The United Nations describes discriminatory behaviour as that which “takes many forms but all involve some form of exclusion or rejection.” Through ongoing research conducted in various parts of the world, it has become increasingly apparent that colleagues make choices which subtlety discriminate in favour of or against certain characteristics in a person or group. These choices are based at an unconscious level, known as Unconscious (Implicit) bias or hidden assumptions. Kings College London describes Unconscious Bias as “the biases we have which we are not in conscious control. These biases occur automatically, triggered by our brain making quick judgements and assessments of people and situations based on our background, cultural environment and our experiences.”

Biases arise in situations where individuals have the power to influence outcomes through their decision and actions. As a result of these unconscious biases, recruitment processes, promotions, allocation of work, performance reviews, and redundancies are not conducted in a fair and consistent manner. The job/ promotion/task is given to a preferred person as opposed to the right person.

Ta c k l i n g assumptions and acknowledging attitudes is a powerful agent for change. The bridge building process/overcoming barriers requires conscientious responsibility to be aware and a willingness to change one’s attitude and organisation’s processes.

Acknowledging and addressing unconscious bias is a first step in creating business environments where organisations attract, retain and nurture the right skills irrespective of any differences, visible or not visible.

We all hold biases and prejudices and these are manifested in our behaviours towards certain people who look, act and dress differently from us. These thought patterns, assumptions or biases, built up over time become a perceptual scanning process, filtering out certain aspects and allowing key preferences; all based on perceptions and interpretations. In HR, this easily develops into unintentionally unfair hiring and promotion practices.

Author and Journalist Malcolm International HR Adviser Summer

Gladwell, asserts in his book The Tipping Point, that within the first seven seconds of interacting with a stranger, we will make an average of eleven judgements about the person, subconsciously continuing to gather data to justify and maintain these judgements. Ongoing research has shown that there is bias in work-related situations amongst individuals who have the power to influence outcomes through their decisions and actions.

Whilst we fundamentally value differences and strive to be inclusive, scientific research has demonstrated that biases, although thought to be obsolete or extinguished remain a residual debris in most of us. Collaborative research conducted in a number of universities in UK and USA indicates a link between hidden biases and actual behaviour.

Simply put, because prejudices are outside our awareness, the subtle (and negative) behaviours that follow are usually ignored or trivialised.

One area in which Unconscious Bias has been dealt with effectively is in the hiring of musicians for orchestra. Historically there was an unspoken view that certain instruments such as trombone, cello, and drums were considered heavy and masculine. It was felt that women did not have the capacity or the stamina to play them as well as men and therefore were not appointed to perform in orchestras.

In a move to combat this bias against women, partitions were placed between the musician and the judging committee so all decisions were based solely on what was played and heard, thus avoiding implicit bias towards men. The number of female musicians playing in orchestras has increased as a result.

As Gladwell states, “the fact that there are now women playing for symphony orchestras is not a trivial change. It matters because it has opened up a world of possibility for a group that had been locked out of opportunity… orchestras now hire better musicians and better musicians mean better music.”

Every person should be treated as an individual, and by involving colleagues for their skills and experience as opposed to what you think they represent, managers will create a fair and inclusive working environment. It can also be helpful to reflect on first impressions

of a colleague, as this can help evaluate any stereotypes and establish whether there are any damaging effects as a result of your stereotypes. Studies show that unconscious biases, judgements and assumptions can have a lasting negative impact on the person concerned. By proactively taking action to combat these preconceptions both through personal reflection and direct interaction, it is highly likely that strong robust working relations will emerge.

When it comes to HR and business management, “ignorance is bliss” is a mindset which goes entirely against the grain of inclusivity – lack of awareness is now no longer an excuse. A greater awareness of unconscious bias undoubtedly leads to a more diverse and inclusive culture, made up from a wider, richer pool of talent.

Snéha Khilay is a Professional Development Consultant and Trainer, working in Personal and Professional Development in International Markets.

She is the founder or Blue Tulip Training, and specialises in Cultural Diversity, Personal Effectiveness, Unconscious Bias, Leadership and Management Development. www.bluetuliptraining.co.uk

Autumn  International HR Adviser

Expatriate Adviser Summer

Autumn International HR Adviser

Immigration

Is Your Business One Of The UK’s 29,000 Sponsor Licence Holders?

If so, are you aware of your sponsor duties and how your organisation is complying with them?

In a world where the rules and regulations surrounding the hiring of employees from outside the EEA is growing ever more complex and fierce, there is no room for non-compliance.

A sponsor licence is required by any UK organisation seeking to employ (sponsor) a migrant worker. It is valid for four years and plays two main roles in a migrant’s application for permission to work in the UK: • It provides evidence that the migrant will fill a genuine vacancy that can’t be filled with a suitably qualified settled worker • It involves a pledge from the sponsor that it accepts all of the duties expected when sponsoring a migrant.

The most recent changes to the compliance regime for sponsor licence holders are no exception to the rule and include a number of new requirements which both employers and their sponsored migrants are especially advised to take note of.

So What Are My General Duties As A Licensed Sponsor?

As a licensed sponsor you are expected to play your part in ensuring that the system is not abused. This means that you must fulfil certain duties. The objectives of these duties are to: • Prevent abuse of assessment procedures • Capture any concerning patterns of migrant behaviour • Address weaknesses in process; and to • Monitor compliance with the Immigration Rules.

How Will The Home Office Check That I Am Complying With My Sponsor Duties?

In this game, you need to be prepared. It is quite possible that you will be subject to an unannounced visit from Immigration Compliance Officers who will wish to confirm that you are continuing to comply with the duties and responsibilities of a licensed sponsor. “…you will be subject to an unannounced visit from Immigration Compliance Officers”

These checks can be undertaken at random and visits may be unannounced.

Licensed sponsors therefore need to ensure that they are committed to maintaining compliance with their sponsor duties at all times.

What Happens If I Do Not Comply With My Sponsor Duties?

Since 2008, there have been measures in place to ensure the enforcement of sponsors’ duties along with the identification of dishonest or incompetent sponsors. Non-compliance can result in your licence being downgraded, suspended or even revoked.

It is easy to overlook the role which sponsorship duties should play within your organisation. For example, in order to be compliant you must have at least one level 1 user in employment throughout the life of your licence. If you do not have a level 1 user in place this means that you cannot fulfil your sponsor duties and the Home Office will take action against you.

“Non-compliance can result in your licence being downgraded, suspended or even revoked”

What Are The Key Compliance Changes Raised By The Home Office In The New Tier 2 & Tier 5 Guidance?

Many of the recent changes provide the Home Office with greater powers to revoke rather than just downgrade or suspend a licence. Here are just some examples of where noncompliance can now lead to the loss of a sponsor licence: • Your company is found to be unable or unwilling to continue to meet its sponsor duties • You assign an unrestricted Certificate of Sponsorship (CoS) to a migrant who requires a restricted CoS • You do not have in place the processes necessary to comply with your duties as a sponsor. For example, an employer’s internal communications may not be good enough for it to know if a sponsored migrant has not reported for work

• The Home Office is not satisfied that you can offer genuine employment that cannot be filled by a resident worker • You fail to assign a new Certificate of Sponsorship (CoS) (and where appropriate fail to properly conduct a resident labour market test) to a migrant who needs to make a change of employment application • You fail to employ a resident worker who was found to meet the job requirements in a role which you subsequently sponsored a migrant worker to undertake • You supply false information on a Certificate of Sponsorship. For example: The salary on that CoS is different to the amount paid to that migrant.

“If the contract of employment for one of your sponsored migrants is terminated earlier than shown on their Certificate of Sponsorship (CoS), do you have the systems in place to ensure you report this change to the Home Office with 10 working days?”

Our Advice To Employers There are currently over 29,000 organisations licensed to sponsor migrants under Tiers 2 and 5 of the Points-Based System. It is apparent that the Home Office considers this number to be excessive and that its aim is to considerably reduce this total by conducting a greater number of unannounced visits to those UK employers who currently hold a sponsor licence.

If a Home Office compliance visit is made to your organisation, compliance officers will not only want to verify your current sponsor licence information, check you are complying with your sponsor duties, and to speak to any migrant workers and any employees or colleagues involved in the recruitment of migrant workers, but will also wish to inspect records and/or systems to ensure that you are following your sponsor obligations and adherence to rules, along with conducting checks on other workers to ensure you are complying with your obligation to prevent illegal working.

‘Since these compliance visits are now being regularly conducted on an Summer International HR Adviser

43

44

Immigration unannounced basis, it is essential that you maintain and regularly audit your records and processes to ensure you are able to fulfil your sponsor duties.’ – David Hugkulstone, Director at Smith Stone Walters.

As these latest changes prove, the rules surrounding sponsor compliance continue to be modified with an increasing level of enforcement.

Smith Stone Walters can assist you by conducting an audit of your internal systems and identifying any weaknesses in your processes that could result in you failing to meet your obligations as a sponsor.

Contact Smith Stone Walters today to discuss how our sponsor compliance services can help you manage your migrant population in accordance with UK immigration law.

Moving people to the UK is our business. It is what we do best. www.smithstonewalters.com

International HR Adviser  Summer

diary dates JULY FEM Sydney Roadshow 24 July 2015 Sofitel Wentworth Hotel, Sydney, Australia Make your international assignees experiences the best they can be and attend the inaugural FEM Sydney Roadshow. Global mobility professionals will gather for this one day conference and exhibition, benefitting from a cutting edge conference programme featuring top global mobility experts, the opportunity to network with leading suppliers to learn about the latest innovations expatriate management, plus the opportunity to meet, network and share best practice with industry peers.

For more information, please contact Iyla MacIntyre on +44(0) 20 7943 8027 or email iyla.macintyre@centaur.co.uk In-House/HR Global Mobility Professionals attend free – find out more here www.forum-expat-management.com/eventdetail/2015/07/24/default-calendar/fem-sydney-roadshow-2015

SEPTEMBER Worldwide ERC® Global Workforce Summit: Talent Mobility in LATAM 9-10 September 2015 Sheraton São Paulo WTC Hotel, São Paulo, Brazil Following the resounding success of its first Latin American programme last year, Worldwide ERC® will be returning to Brazil in September 2015 for another talent mobility Summit. Gain the calibre of trustworthy, reliable and current information on talent mobility that will empower you to work smarter, faster and more confidently. Join us as we explore region-specific challenges and opportunities, as well as global talent mobility solutions and trends.

Learn more and register at www.worldwideerc.org/Pages/LATAM15-SP.aspx

FEM Americas Summit 9- 11 September Loews Coronado Bay Resort San Diego, United States of America Make your international assignees experiences the best they can be and attend the inaugural FEM Americas Summit. Global mobility professionals will gather for this one day conference and exhibition, benefitting from a cutting edge conference programme featuring top global mobility experts, the opportunity to network with leading suppliers to learn about the latest innovations expatriate management, plus the opportunity to meet, network and share best practice with industry peers.

For more information, please contact Iyla MacIntyre on +44(0) 20 7943 8027 or email iyla.macintyre@centaur.co.uk In-House/HR Global Mobility Professionals attend free – find out more here www.forum-expat-management.com/events

OCTOBER World Talent Forum 1 October 2015 Allianz Arena Munich, Germany Receive insight on the topics: Active Sourcing, Candidate Engagement, Talent Acquisition Strategy, Employer Branding & HR Marketing and Corporate Alumni Management through exciting presentations, workshops and discussions about methods and strategies from international companies. After a day of informative presentations, the evening will commence at the famous Munich Oktoberfest.

This year we are focusing on international relations: in fact, numerous speakers from around the world have already been requested. First confirmations include Niamh Macaskill from Virgin Media (United Kingdom), Melanie Stracke from Accenture (Germany), Anke Kirn from Deutsche Bank (Germany) and Saskia Jamaers from PwC (Belgium).For more information on topics, speakers and partners, visit our website: www.world-talent-forum.com/en/

Worldwide ERC® Global Workforce Symposium 7-9 October 2015 Hynes Convention Center, Boston, Massachusetts, United States of America Benefit from the latest innovations in talent mobility polices and trends

as you gather with global talent mobility professionals from around the globe. Hear from the experts during the “Extreme Insight – The Corporate Lens” panel and explore the newest products, services and resources in the extensive exhibition area. You can also take advantage of enrolling in the Strategic Talent Mobility: GMS-T® stand-alone course, or Module 3 of the Global Mobility Specialist (GMS)® credential program. Learn more and register at www.WorldwideERC.org/GWS15/Pages/conference-home.aspx

4th Annual Global HR Excellence 19-21 October 2015 Kuala Lumpur, Malaysia Do not miss the perfect platform to explore the dynamics of talent management - retention strategies and people development plans while discovering the latest updates in strategic HR and innovative HR applications and technologies. Customise your own programme by selecting any of these streams on DAY 1&2. Choices of streams to choose from are: Talent and Capability Development; Change Management and Leadership; Business Transformation and Rewards.

Be a part of this prestigious course that can help you revolutionise the way you view and manage your human capital to their full potential!

For more details, please contact CindyC@marcusevanskl.com or call +60327236745.

Alternatively, please visit www.hrexcellence-lse.com www.hrexcellence-lse.com/?utm_source=eventlisting&utm_ medium=invite&utm_campaign=HRE4

NOVEMBER FEM EMEA Summit 6 November 2015 Lancaster Hotel, London, United Kingdom Make your international assignees experiences the best they can be and attend the inaugural FEM EMEA Summit. Global mobility professionals will gather for this one day conference and exhibition, benefitting from a cutting edge conference programme featuring top global mobility experts, the opportunity to network with leading suppliers to learn about the latest innovations expatriate management, plus the opportunity to meet, network and share best practice with industry peers.

For more information, please contact Iyla MacIntyre on +44(0) 20 7943 8027 or email iyla.macintyre@centaur.co.uk In-House/HR Global Mobility Professionals attend free – find out more here www.forum-expat-management.com/events

DECEMBER FEM APAC Summit 1 December 2015 Harbour Grand, Hong Kong Make your international assignees experiences the best they can be and attend the inaugural FEM APAC Summit. Global mobility professionals will gather for this one day conference and exhibition, benefitting from a cutting edge conference programme featuring top global mobility experts, the opportunity to network with leading suppliers to learn about the latest innovations expatriate management, plus the opportunity to meet, network and share best practice with industry peers.

For more information, please contact Iyla MacIntyre on +44(0) 20 7943 8027 or email iyla.macintyre@centaur.co.uk In-House/HR Global Mobility Professionals attend free – find out more here www.forum-expat-management.com/events

If you would like to advertise a conference or exhibition on our Diary Dates and on www.internationalhradviser.com please email damian@internationalhradviser.com Summer International HR Adviser

45

FREE

SUBSCRIPTION TO

WINTER 2014-15

ISSUE 60

FREE SUBSCRIPTION

OFFER INSIDE

International HR Adviser The Leading Magazine

ionals Worldwide

For International HR Profess

Features Include: Assignees On Email For Engaging Home HR Rely Too Heavily ional Assignees Development From Internat Maximising Learning And IBU *T 5BY &RVBMJTBUJPO F ONFOU 5IF /FYU 'SPOUJFS t 8 (MPCBM 5BYBUJPO 6QEBU 5BMFOU "OE .PCJMJUZ "MJH SBUFHZ t BM )3 4U FSOBUJPO PCJMJUZ 1BSUOFSTIJQ t *OU Hardship Countries 5IF 5BMFOU "OE (MPCBM .

Going On Assignments To Be The Answer For Families -Past, Present And Future Online IB Education May ives On Ebola Outbreaks Businesses In Crisis: Perspect Advisory Panel for this issue:

SPRING 201

The Leading Magazine for International HR Professionals Worldwide

Internatio nal HR Advise r

The Leadin

g Magazine

For Interna

tional HR

5

ISSUE 61

Profession

FREE SUB

SCRIPTION

OFFER INS IDE

als Worldw

ide

courtesy of: Features Incl 2015 – The ude: Year Of The .BOBHJOH 5I Business Trav F 8PSLGPSD F 3FWPMVUJPO eller? &YQBUSJBUF "TTJHONFOU t &YQBUT 1PMJDJFT 5I $VSSFODZ 4 (MPCBM .P F %PXOTUSF UBCJMJUZ CJMJUZ 5SFOE BN *NQBDU T 5IBU $SFBU 0O 1BZSPMM F 5IF &CC " 7JSUVBM 5FB NT 7JUBM 4 OE 'MPX VDD FTT 'BDUPST (MPCBM 5BY BUJPO 6QEB UF Advisory Pan el for this issu e:

To apply for your free subscription please either complete the enclosed subscription card or visit our website www.internationalhradviser.com and complete the online registration International HR Adviser is the leading, quarterly magazine for International HR professionals globally. It has been publishing for 13 years and covers topics such as International HR Strategy, Benefits, Tax, Global Tax, Technology, Compensation, Trends in International Assignments, Healthcare, Insurance, Surveys, Country Profiles, Immigration, Moving & Relocation, Spousal Support, Education, Property, Cross-Cultural Issues, Case Studies, and more.

For further information please call Helen Elliott on +44 (0) 208 661 0186 Email: helen@internationalhradviser.com Website: www.internationalhradviser.com

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

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

BUSINESS ASSOCIATION J-1 VISA PROGRAMME BRITISHAMERICAN BUSINESS (BAB) 52 Vanderbilt Avenue, 20th Floor New York, NY 10017, USA Contact: Tamra Eker Telephone: +212 661 4060 Fax: +212 661 4074 Email: teker@babinc.org Website: www.babinc.org BritishAmerican Business’s J-1 visa programme assists companies in offering US training and work experience to qualified employees of any nationality and from anywhere in the world, for a time period of up to 18 months. Sectors covered by our J-1 Visa designation include management, business, commerce, finance, law, industry, sciences, engineering, architecture, information media & communications.

Using the J-1 Visa helps companies overcome cross-cultural differences and improve communication between US and overseas offices; enhance employee recruitment/ retention efforts by offering US assignments; and meet global mobility challenges. Please call to discuss the programme with our J-1 Visa Programme Administrator.

INSURANCE AND FINANCIAL SERVICES ZURICH CORPORATE LIFE & PENSIONS Tricentre One, New Bridge Square, Swindon SN1 1HN Contact: Adele Cox Telephone: +44 (0) 118 952 4253 Fax: + 44 (0) 118 952 4300 E-mail: adele.cox@zurich.com Website: www.zurichinternational.com Zurich International Life is a global provider of life insurance, investment and protection products. Our corporate range offers flexible, portable solutions, designed to suit multinational organisations with an internationally mobile workforce. The International pension plan offers a cost effective, bundled retirement benefits solution comprising of trust services,

investment funds and online administration.

International group protection is designed to protect an employers’ most important asset – their employees – and offers a range of life and disability protection.

With a local presence in key global business hubs and over 20 years experience of implementing and administering plans world wide, we’ve developed our knowledge and understanding of key markets to meet the needs of our customers and business partners.

INTERNATIONAL EMPLOYEE BENEFITS Willis Employee Benefits Limited 51 Lime Street, London EC3M 7DQ Contact: Chris Metz Telephone: +44 (0)203 124 8897 Email: webl@willis.com Website: www.willisemployeebenefits.co.uk Twitter: @WillisGroup LinkedIn: www.linkedin.com/company/willis Our global footprint and local presence in over 120 countries means you can depend on us to provide high quality compliant responses to the complicated issues of having a population dispersed throughout a number of countries – whether it’s your business travellers, global hires, short term or long term assignees. Willis can advise on and place a range of healthcare, disability, life and retirement solutions that fit the needs of your highly valued and demanding workforce.

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

INTERNATIONAL MOVING DT MOVING LTD 49 Wates Way, Mitcham, Greater London, CR4 4HR Contact: Tim Daniells

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

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

Our goal is your complete satisfaction, and with a 96% customer rating for 2014, we offer unrivalled quality at competitive rates. *Awarded nine global relocation awards since 2010.

RELOCATION HCR RELOCATION UK Head office - Belvedere House, Basing View, Basingstoke, RG21 4HG UK Contact: Louise Hardy - Business Development Executive Telephone: +44(0)1256 313887 email: louise.hardy@hcr.co.uk website: www.hcr.co.uk Twitter: @relochatter LinkedIn: www.linkedin.com/company/hcrgroup-limited We look after people, your people. we have a dedicated, high performing and professional team to deliver our award winning relocation service. our knowledge, experience and empathy ensures that each of your relocating employees and their families are carefully managed and that their specific needs are considered.

HCR has a true ‘one point of contact’ philosophy; one dedicated, cross trained account Manager and lead Relocation Consultant who will manage, co-ordinate, deliver and provide comprehensive support for every relocation case.

SANTA FE RELOCATION SERVICES Central Way, Park Royal, London, NW10 7XW Contact: Mark Rising Telephone: +44 (0) 208 961 4141 Fax: +44 (0)208 965 4484 email: Mark.Rising@SantaFeRelo.com website: www.santaferelo.com Thinking Relocation? Think Santa Fe Relocation Services.

Santa Fe Relocation Services provides the full range of relocation services to support businesses with international interests from diverse industry sectors. Santa Fe is conveniently located across six continents and offers holistic relocation solutions to support businesses and relocating employees. Last year, we handled 120,000 relocations globally. Our core services are Immigration, Moving, Relocation, Real Estate and Records Management.

We make it easy.

Summer International HR Adviser

47

48

DIRECTORY RELOCATION ASSOCIATIONS

ASSOCIATION OF RELOCATION PROFESSIONALS (ARP) 9&10 Diss Business Centre, Dark Lane, Diss, Norfolk, IP21 4ND Contact: Tad Zurlinden Telephone: +44 (0)1379 651 671 Fax: +44 (0)1379 641 940 Email: enquiries@arp-relocation.com Website: www.arp-relocation.com The ARP is the professional association for the relocation industry in the UK. The ARP’s activities include seminars throughout the year, an annual conference, the publication of an annual Directory of Members and a website, which is updated regularly.

THE EUROPEAN RELOCATION ASSOCIATION (EuRA) 9&10 Diss Business Centre, Dark Lane, Diss, Norfolk, IP21 4ND Telephone +44 (0)1379 651 671 Fax: +44(0)1379 641 940 E-mail: enquiries@eura-relocation.com Website: www.eura-relocation.com EuRA is an industry body for Relocation Professionals in both Europe and Worldwide.

EuRa have launched The EuRA Quality Seal, the world’s first accreditation programme for relocation providers.

This pioneering initiative provides a straight forward, cost effective audit to reflect your company’s excellence in providing relocation services.

SCHOOLS International Community School 21 Star Street, London, W2 1QB Contact: Laura Thompson, Director of Marketing and Secondary Admissions Tel: +44 (0) 20 7402 0416 Web: www.icschool.co.uk Email: admissions@ics.uk.net An international day school located in 3 sites in the centre of London. We offer all three International Baccalaurate Programmes (PYP, MYP, and Diploma) to children aged 3-18yrs.

ICS has a diverse community with 45 different nationalities, and boasts a strong tradition of working with students in a highly personalised tuition framework thus enabling every student to reach their maximum potential in a rigorous but supportive environment. For students needing English Language Support we offer our unique Preparation Programme that allows students to study mainstream academic subjects alongside the language tuition. We also welcome & provide outstanding support to children with Special Educational Needs. Students at ICS benefit from a wide ranging sports & activity programme during term time and also during school holidays. We have outdoor education centres at Chorleywood and Bawdsey, Suffolk and offer educational trips abroad as part of our Travel & Learn Programme. This year ICS is proud to be celebrating 35 years of offering international education.

International HR Adviser Summer

ISL Group of Schools ISL Surrey Old Woking Road, Woking, Surrey GU22 8HY Contact: Claudine Hakim Telephone: +44 (0)1483 750 409 ISL London 139 Gunnersbury Avenue, London W3 8LG Contact: Yoel Gordon Telephone: +44 (0)20 8992 5823 ISL Qatar PO Box 18511, North Duhail, Qatar Contact: Nivin El Aawar Telephone: +974 4433 8600 Website: www.islschools.org Email: hmulkey@islschools.org The International School of London (ISL) Group has schools in London, Surrey, and Qatar. The internationally recognised primary and secondary curricula have embedded language programmes (mother tongue, English as an Additional Language, and second language) which continue throughout the student’s stay in the school. A team of experienced and qualified teachers and administrators provides every student with the opportunity to grow and learn in an environment that respects diversity and promotes identity, understanding, and a passion for learning.

MARYMOUNT INTERNATIONAL SCHOOL LONDON Address: George Road, Kingston upon Thames, KT2 7PE Contact: Mrs Cheryl Eysele Telephone: +44 (0)20 8949 0571 Email: admissions@marymountlondon.com Website: www.marymountlondon.com With an outstanding record teaching the respected International Baccalaureate for over 30 years, Marymount offers day and boarding to girls aged 11-18 who gain places at the world’s best universities.

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

NEWLAND COLLEGE Newland Park, Chalfont St Giles Buckinghamshire HP8 4AD Registrar: Sophia Haig Website: www.newlandcollege.co.uk Email: info@newlandcollege.co.uk Newland College is set in 100 acres of parkland in the heart of the Chilterns, 45 mins from central London.

We are co-ed, with entry points at 11 and 13 years of age. We provide the International Baccalaureate curriculum. Boarding and day options are available. Email info@newlandcollege.co.uk to arrange a visit.

TASIS THE AMERICAN SCHOOL IN ENGLAND Coldharbour Lane, Thorpe, Surrey, TW20 8TE Contact: Karen House Telephone: +44 (0)1932 582316

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

SERVICED APARTMENTS BBF Avenue de Roodebeek 78 box 9, Brussels Contact: Bernard Kerkhof Telephone: +32 (0)2 705 05 21 Email: info@bbf.be Website: www.bbf.be Twitter: @BBFBelgium LinkedIn: www.linkedin.com/company/bbfserviced-apartments BBF is specialised in the rental of serviced apartments since 1992.

Today we are leader in the market of temporary housing with a portfolio of over 1500 apartments in Brussels. We also offer corporate housing in other cities such as Budapest.

Our flexible rental packages include excellent solutions for short and long term accommodation for personal and business travellers. For long term accommodation, minimum one year, we can offer unfurnished apartments where one has the choice to install their own furniture.

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

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

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

If you would like to advertise in this Directory, the cost is £175 per issue or £700 for the year (4 issues). Please email damian@internationalhradviser.com