Relocate Global Europe, April 2015 by Profile Locations

FO R H R , G LO BA L MA N A GERS & RELOCATION PR OFESSIONALS

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INNOVATIVE FINLAND

Adapting to a new reality

Education

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Europe Spring 2015 Issue

SECTION HEADING

Contents 22

12 NEWS & EVENTS 4

FEATURES

Re:editor’s letter

Fiona Murchie looks at what’s in store this issue.

24 Re:event

Give your organisation a head start by taking part in our exclusive workshop.

27 Re:awards

Book your places for the 2014/15 Re:locate Awards gala dinner!

GLOBAL MANAGEMENT 8

Re:business growth

An injection of government money, new infrastructure and a brand new community are driving Ashford’s growth as a global centre.

12 Re:oil, gas & energy

What do continuing falls in oil prices and the rise of new energy sources mean for global mobility?

Transforming Relocation. 165 Countries. Six Continents. Our think-tank’s insight into clients’ evolving needs led to ground-breaking innovations like industry-first portals and apps for real-time reports.

know-how and extensive planning, we will expertly administer your programme, and we will connect your people with bestin-class services performed by our world-class partners.

On six continents, we proactively collaborate to design tailormade, exceptional relocation experiences. With industry

Let’s connect to learn more about each other today.

2 | Re:locate Europe | Spring 2015

+1 800.723.6683 | Graebel.com | marcom@Graebel.com

20 Re:employment

Re:country focus

Recent economic setbacks have led Finland to adapt its skills and strengths to a new reality.

22 Re:health

Thanks to awareness-raising initiatives and government programmes, mental health is moving back up the UK’s workplace agenda.

28 Re:serviced apartments

This fast-growing sector is rising to the challenges of global growth.

EMPLOYEE SUPPORT 16 Re:education

Globally mobile families are embracing Switzerland’s excellent schooling provision.

18 Re:higher education

Tips for UK university visits, for assignees with late-teenage children.

Understanding the jobs market is key to recruiting and retaining top talent.

32 Re:EMEA conference Inspiring ordinary people to achieve extraordinary results. Plus how can mobility become an influential stakeholder in organisations?

at relocateglobal.com to download your FREE Asia Pacific, Europe and Latin America digital magazines

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SECTION HEADING

The Team

“Join us for the first in

Managing Editor: Fiona Murchie editorial@relocatemagazine.com Design: Cohesion Marketing by Design

our new series of highlevel, energising peer-topeer workshops

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Address Re:locate Magazine Spray Hill Hastings Road Lamberhurst Kent TN3 8JB T: +44 (0)1892 891334 F: +44 (0)1892 891336

”

his spring, our focus is on shaping the global mobility agenda. Global managers and HR professionals face tough challenges as their organisations enter new markets around the world. In a high-level facilitated workshop on engaging global talent (see p24), to be held on the afternoon of the Re:locate Awards dinner, we continue the conversations begun at our recent international networking reception.

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This will be the first in a series of energising peer-to-peer workshops that will inspire delegates to find their own solutions to key mobility issues. If you’re planning to attend the Gala Awards Dinner (see p27), why not join us for this exclusive event? In this edition, we report on the business and relocation scene in Finland and examine efforts to give workplace mental health in the UK strategic-level status. We shine the spotlight on the global energy sector, explore current international employment trends, and investigate schooling choices in Switzerland. Keep up to date with daily news and comment on Europe, and from around the world, via relocateglobal.com, where you can also register to view a free copy of the latest edition of our digital magazine for Asia Pacific, coming soon. Please contact us if you have ideas for features and surveys, and let us know the industry sectors you would like us to cover, the challenges you face, and your burning issues.

Fiona Murchie Managing Editor

Re:locate Global

Asia Pacific

Latin America

Europe

Exclusive event! Engaging Global Talent Thursday 14 May, London Details from events@relocatemagazine.com

Gala Dinner Book now!

Gala Dinner: Thursday 14 May

© 2014. Re:locate is published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein. ISSN 1743-9566.

4 | Re:locate Europe | Spring 2015

Coming in the Summer 2015 issue of Re:locate magazine

10th ersary Anniv Year

AWARDS

PROPERTY

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Our winners’ inspiring stories

UK lettings market

Hotspots and new regions

Our new quarterly digital magazines bring readers the best in global mobility thinking and practice from around the world, enabling organisations of all sizes to manage and retain talent successfully in any location.

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COUNTRY FOCUS

FINLAND INNOVATES TO SUCCEED

Although it is the European Union’s most sparsely populated country, Finland has been rated its most competitive. Recent economic setbacks, from the decline of Nokia to repercussions from sanctions on Russia, have led it to adapt current skills and strengths to a new reality, as Alison Semple reports.

inland regularly finds itself amongst the leaders in the world in international rankings. It has been rated the most competitive country in the European Union, and recently came second in the World Economic Forum’s international survey of gender equality. And, of course, it is part of a region that is renowned for its high living standards, with top-quality services, including free education and healthcare, as well as generous, guaranteed pensions for retirees. By its own high standards, the country has been through relatively difficult economic times in recent years, however, and suffered a blow to its international reputation in October, as ratings agency Standard & Poor’s downgraded its economic outlook from AAA to AA+, citing reduced exports, a growing population of elderly people and a shrinking workforce. Once-dominant Nokia went into decline too – before selling its mobile phones business to Microsoft last year – and Finland is exposed, more than any other Eurozone country, to a slump in demand from Russia, as EU sanctions hit its eastern neighbour. In the face of these issues, Prime Minister Alex Stubb has put the focus on adapting the country’s existing skills and strengths to the new environment. “Our forestry is slowly but surely shifting from paper to bioenergy. Our IT industry is moving towards gaming; it’s not just about hardware like the Nokia mobiles,” he said in a recent interview.

Focus on technology and skills Cities like Tampere, an hour and a half north of Helsinki, are at the heart of this move towards a more innovative economy, focused on skills and cutting-edge technology. With foreign companies, including the likes of Intel and Qualcomm, having chosen to locate and invest in the city, and local high-growth technology firms, such as innovative data management specialist M-Files and Jolla (which recently raised $1 million in crowdfunding for its new Sailfish OS tablet in less than 48 hours), contributing to the growing ICT cluster, more and more high-tech firms are likely to consider the area as a business location. Tredea, the economic development agency for the Tampere region, helps companies to establish themselves in the area, develop their customer networks, and make the most of local networks. “We work with companies that are looking to find partners, set up research collaborations, and find top-level staff,” says Oula Valipakka, senior manager at Tredea. “There is an excellent talent pool in Tampere, and the city government itself acts as a facilitator, an enabler, bringing companies, universities, and the public sector together, and helping innovation to take place quickly.” Swiss company ALSO, which provides a range of services and solutions to the IT industry, employs 180 staff in Tampere and chose to locate a large new logistics centre in the region. “For companies in

Our forestry is slowly but surely shifting from paper to bioenergy. Our IT industry is moving towards gaming.

the ICT sector, there are plenty of skilled local personnel here,” says Jukka Kortesniemi, head of the company’s Solutions Business Unit. “There is lots of relevant R&D going on – at the local technology university, for example – and a pool of highly-skilled people, including former Nokia employees, who are available. We also find that the staff churn rate is very low here.” Being in a location that has a good offering for families was another consideration for ALSO. “There are around 350,000 people here – not too big and not too small, so we don’t suffer from traffic and overcrowding, but at the same time it’s easy to make a move here because of the international schools, for instance. “

Issues for expats Marjo Lautjärvi, of Finland Relocation Services, agrees that the country can be an attractive location for expatriate families. “There are free public international schools offering all subjects in English, and the same language offering is available for French, German and Russian speakers. Housing is readily available, although larger properties to rent are more difficult to come by, and property is not cheap. Expect to pay from €900 to €1,500 a month for a onebedroom unit, and up to €4,000 for a typical expatriate-category family home.”

Ms Lautjärvi also recommends that businesses provide intercultural sessions for newly relocated staff, to familiarise them with Finnish culture. While the differences between Finland and other international markets aren’t particularly marked, there are some nuances that foreign nationals should be aware of. “For instance,” she says, “Finnish people are content to sit in silence for quite a long time – longer than might be the case in some other countries. It can be unexpected if you aren’t familiar with the culture. “One of the main areas where companies need assistance is compliance. And getting residence and EU registration or work permits (for non-EU citizens) in place is the most time-consuming part of the process. Those transferring to Finland need to be prepared to present a variety of different documents to officials in several different office locations. And, as any hold-ups in this area can have an effect on payroll, the process can be quite stressful if not handled efficiently. “But as long as you are well organised and prepared, incorporating a business can be tied up in less than two weeks. In the majority of cases, you’ll find that these processes are relatively straightforward in Finland.”

For Europe news and articles, visit relocatemagazine.com/europe 6 | Re:locate Europe | Spring 2015

Photograph by Martin Leusby

BUSINESS GROWTH SECTION HEADING

I Photographs by Ashford Borough Council

HIGH-SPEED ASHFORD

Making European connections As the high-speed railway celebrates its fifth anniversary, and with HS2 and HS3 in the headlines, Fiona Murchie shares some of the surprising initiatives that are driving Ashford’s growth as an international centre. An injection of government money, new infrastructure and a brand new community are just some of the developments that are making other regions sit up and take notice.

8 | Re:locate Europe | Spring 2015

n December, the HS1 fast train service linking Kent to St Pancras celebrates its fifth anniversary. The fact that Ashford is an international rail hub and has the fifth-busiest railway station in the country, with 3.3 million passengers passing through every year, has probably escaped the notice of most business decisionmakers. Its high-speed rail connections to France and Europe are obviously hugely significant, but Ashford has also reaped the economic benefits of the HS1 service to St Pancras having cut the journey time to central London by more than half, to just 38 minutes. Paris is under two hours away. Revelations of Ashford’s growth successes are timely and of significance to organisations contemplating their own global growth at a time when the debate surrounding the route and cost of HS2, and the recently announced HS3, are in the news almost weekly. With the May 2015 general election looming, infrastructure and HS2 and HS3 and their impact on the UK economy and business growth around the regions will continue in the headlines. There could be a lot to be learnt from the Ashford story in many dimensions. Connectivity and infrastructure inevitably impact on organisations and mobility. New rail and road routes and airport expansions can open up areas to growth and economic stimulus, but equally they can be seen as blighting a relocation hotspot. What companies want in terms of fast communications, quality commercial space at affordable prices, and access to workforce may not stack up with the lifestyle requirements of mobile talent being asked to move to the area or those of the incumbent workforce. Nimbyism often prevails over economic reality.

Adapting to changing times In the early days of relocation in the UK, back in the late 1980s and 1990s, the relocation picture was dominated by the regional development agencies (RDA) and their bid to attract inward investment from overseas (largely the US and Asia/Japan) or other parts of the UK. There was a strong emphasis on development and construction, with regions competing against each other to attract companies. But the world has moved on since then. The recession hit

BUSINESS GROWTH

builders and developers hard, the RDAs were disbanded, and local government has experienced huge spending cuts, as well as being caught at the sharp end of global financial and pension investment collapse in countries like Iceland. So when a local authority is trumpeting international success with a fresh approach that has attracted the attention of the Treasury, and has a plan for growth that puts people, ethical values and sustainability at the heart of its resurgence, with attention to demographics, education and jobs, it is worth closer investigation as an emerging relocation hotspot with international ambitions. I was warned that the leader of Ashford Borough Council was probably not what one would expect. Gerry Clarkson was formerly the chief fire officer of London. After stepping down, he raised huge amounts of money for the Firefighters Memorial Trust before starting his own fire engineering consultancy and then moving to Kent. Mr Clarkson certainly has an abundance of drive, ambition and the motivation to lead Ashford to an international future – which has been a long time coming – as the gateway to Europe. He is a charismatic figure who is determined to put Ashford on the map, to get recognition for what it has already achieved, and to promote its economic model. The Ashford Model is about helping Ashford to achieve a sustainable community that is forward-thinking and fit for an international role within environmental and social boundaries to improve society and promote growth. Some of the measures already in place are testament to this vision, but anyone stepping off the high-speed train at Ashford International will see that there is a way to go yet. However, this is about the journey, and telling the story boldly will help Ashford to gain the momentum it needs to achieve success as a European and international player. Councillor Clarkson sees Ashford as punching above its weight in the bid for developer and investment interest to secure its future as a leading inward investment location competing with places such as Manchester, Leeds, Cardiff and the City of London. Speaking at the MIPIM UK commercial property event held in London at the end of October, he said, “With Ashford’s growing reputation as an

relocateglobal.com | 9

BUSINESS GROWTH

ASHFORD’S ‘BIG EIGHT’ SCHEMES Seen as pivotal to the international success of Ashford and its economic growth are:

Ashford already has a number of new housing estates, and has continued to build new homes at an average of 615 per year over the last 12 years, including the recession period. There are renovation projects converting town-centre office property into luxury apartments which are flying off the plans. Some are for serviced apartment use, which indicates there is serious interest in Ashford’s potential as an international business centre. There is a second-phase development in the pipeline.

Jobs and employment • More than 500,000 employees live within a 40-minute drive

• The Commercial Quarter, a new office campus adjoining Ashford International Station with the potential to deliver up to 55,000 square metres of office space, 150 homes and several thousand jobs • Elwick Place, a town-centre cinema with places to eat and drink around a new square and meeting place for the town centre • Designer Outlet expansion. More than three million people a year already visit the McArthurGlen Designer Outlet

• 7,500 new jobs created in the last ten years • Low unemployment rate • 84,000 square metres of employment floorspace created between 2009 and 2012 • Most apprentices in Kent – 2,500 in last two years • Ashford’s Council Tax lowest in Kent

Chilmington Green

international town, we have a great story to tell, demonstrated by a host of big company names who have already enjoyed success here, which formed part of our ‘storytellers’ campaign. Such companies include Premier Foods and Brakes. “The message from us was clear: Ashford is going places, and now is the time to get involved.”

Government support and infrastructure Ashford is buzzing with news of major investment initiatives. The government has given the go-ahead to fund J10a of the M20, which will speed up economic development south of the town, while a planning application for a large industrial park at Sevington is in progress. Gerry Clarkson and his team appear to have brought clarity, vision and focus to their ambitions for Ashford, and their strategy, encapsulated by the Ashford Plan, has already caught the attention of the government and George Osborne, Chancellor of the Exchequer. Councillor Clarkson has presented Ashford’s blueprint for integrated growth to senior Treasury officials, and further talks are planned, which suggests that there is something fresh and compelling about Ashford’s joined-up economic vision that can be rolled out as a successful formula for other regions throughout the UK.

Housing and quality of life Owner McArthurGlen has launched plans for the expansion of Ashford Designer Outlet, while proposals for the town’s Commercial

Quarter are well advanced, and a new residential community featuring 5,750 homes has received outline planning consent. The £1.5 billion development at Chilmington Green, in a prime location to the south west of Ashford town centre, is expected to create 1,000 jobs within the next 20 years. Exceptional quality will be at the heart of the project, Gerry Clarkson insists, citing Ashford’s demands for more space and gardens to ensure the scheme becomes a benchmark for future residential developments. Chilmington Green, which will be divided into three neighbourhoods, will reflect many of the design principles of a successful garden city, including tree-lined streets, a spacious layout, high-quality public spaces, and a strong local community managing an impressive range of local facilities. Councillor David Robey, Ashford Borough Council’s portfolio holder for development, said, “Increasingly, we hear about developments adopting garden-city ideas, but Chilmington Green goes much further. The innovative Quality Charter we have signed with the developers of the site, and the radical proposals for community management of many millions of pounds of assets in the area, makes this a very special project indeed and, we hope, a model for the future. “By creating a place designed with quality in mind and a community empowered to manage and look after it, we can leave a lasting legacy that everyone can be proud of in years to come.”

International companies based in the borough include beauty products manufacturer Coty, Givaudan, and Hitachi, which supports the international rail system. French gaming portal Eclypsia has recently been attracted to Ashford by high-speed communications with Europe, the support of local politicians, and high-speed internet. It now employs 100 people.

Eldercare Aware of ageing demographics, Ashford has already attracted Bupa to develop a pioneering residential home in the town which is conducting valuable research, with potential for more badly needed scientific and medical research investment by other organisations. There is also a purpose-built housing development with later-life needs catered for, so that residents don’t have to move house.

Attracting tourists Ashford is widening the net and looking to attract more continental visitors. Kent already welcomes French, Dutch and Belgium tourists who are keen to visit the lovely countryside of the Garden of England, the historic towns and villages so loved by antique collectors, and the famous gardens, castles and historic houses of the county. The nearby cathedral city of Canterbury is a major tourist centre and an attraction for anyone moving to the area. Planned developments that will also capitalise on the tourist economy are a model railway venture supported by celebrities, which capitalises on the rail links with the town and the passion for the hobby in France. A recent revelation that Ashford has the only unpolluted skies in the South Eastern Coastal Region has set in motion ideas for a telescope project that could benefit local children and bring astronomical and scientific research to the area.

• Ashford International College campus, a new skills campus for post-16 education • M20 Junction 10a, providing new motorway junction capacity to support expansion and improvements • Jasmin Vardimon International Dance Academy, to develop the company’s existing offer in Ashford and create a flagship centre of creative excellence • Ashford International Station ‘spurs’, allowing access for new international trains to stop at Ashford • Chilmington Green, a new community with 5,750 houses, extensive business, retail and restaurant capacity, schools, open spaces and community areas, expected to create 1,000 jobs within the next 20 years. Outline planning application approved November 2014

For news and articles on enterprise and the economy, visit relocatemagazine.com/enterprise 10 | Re:locate Europe | Spring 2015

OIL, GAS & ENERGY

TESTING TIMES for the global oil and gas sector

With oil prices continuing to fall, and interest in renewables and new types of production, such as fracking, on the rise, the global energy sector is facing a range of challenges. Mark E Johnson asked some experts for their perspectives on its future.

12 | Re:locate Europe | Spring 2015

fter a decade of high oil prices, the energy sector is in a state of flux dominated by a plummeting price per barrel. Until June 2014, the price of oil had been hovering at around $100 per barrel since 2010. A combination of factors created favourable conditions. Consumption was growing, thanks largely to China and other developing nations, while geopolitical upheaval in countries such as Iraq, Libya and Iran had restricted supply, driving up demand. In North America, the higher price spurred drilling efforts in areas that had previously not been cost effective – notably North Dakota’s shale beds and Alberta’s oil sands – with many companies engaging in further exploratory operations. The picture has changed dramatically, however. In June 2014, the oil price started to slip. Nine months ago, it was at a high of $115. By January 2015, the price of North Sea Brent Crude had slumped to $48 per barrel, its lowest point since March 2009. A confluence of factors has come into play to drive the drop. Demand is being squeezed from a number of different directions. At the macro level, sluggish global economic growth has depressed demand. At the consumer level, the growth in viable alternative energy sources is driving down consumption, while tougher fuel regulations and increasingly efficient engines are meaning that users can do more with less. Meanwhile, output is climbing, thanks in large part to increased US production, bolstered by hydraulic fracturing (fracking) and horizontal drilling. US output grew by 15 per cent in the 12 months to last November, while imports dropped by 4 per cent. Added to this mix is the Organization of Petroleum Exporting Countries (OPEC), led by Saudi Arabia. Driven by the fear of market-share loss, OPEC has refused to reduce production to stabilise prices – a move that further depressed oil prices when it was announced in late November. The Saudis, backed by other producers with deep pockets, such as Kuwait, Qatar and the United Arab Emirates, have effectively embarked on a game of chicken with other producers, betting that they will shut off their pumps first as production becomes uneconomical. The US Energy Information Administration (EIA) estimates that, in 2014, the increase in supply of liquid fuels was twice the increase in global consumption. Similarly, OPEC forecasts that demand for its oil will hit a 14-year low of 28.2 million barrels per day in 2017. That’s 600,000 barrels less than it predicted a year ago, and a drop from its current output of 30.7 million. It adds up to troubling news for large companies such as BP, ExxonMobil, Shell, Total and Chevron, which invested tens of billions of dollars in exploration while prices were high without seeing a boost in production or profit. Predictions for the future of the oil price vary. Some analysts are predicting further falls, while the likes of the EIA forecast that Brent Crude will average $58 per barrel in 2015 and $75 per barrel in 2016. While the short-term outlook for oil is gloomy, however, the International Energy Agency warned in its World Energy Outlook 2014 that the current picture of a well-supplied market should not obscure future risks. As demand in the Organisation for Economic Co-operation and Development (OECD) countries remains flat and growth in China slows, India, South East Asia, the Middle East, and parts of Africa and Latin America are expected to drive growing global demand. The upshot for oil, the report says, will be increased reliance on the currently unstable Middle East, and Iraq in particular. ➲

relocateglobal.com | 13

OIL, GAS & ENERGY

Renewables While the exploitation of new oil and gas resources through fracking and other techniques has been one upshot of previously high oil prices, growth in renewables has been another. International renewable energy advocacy group REN21 said in its 2014 annual report that renewables accounted for more than a fifth of global electricity generation in 2013. Capacity grew by 8 per cent, accounting for 56 per cent of global net additions. Over the longer term, the International Energy Agency said in World Energy Outlook 2014 that it expected renewables to account for nearly half the global increase in power generation to 2040. Solar photovoltaics continue to expand at a rapid rate, adding almost 55 per cent annually over the last five years. Wind continued to be a strong component, despite a fall from 2012, thanks largely to a slowdown in the US market. Both solar and onshore wind have been boosted by falling costs, and an increasing number of projects are being built without public financial support. The sector sees strong support from developing nations, which account for 95 of the 138 countries that have support policies in place for renewables, according to REN21. While some analysts have claimed that falling oil prices will negatively impact the renewables sector, Adam Sieminski, head of the EIA, said in January that this was unlikely, noting that oil was not in competition with renewables for electricity generation, and that many initiatives were shielded by government incentives.

Skills shortages The falling oil price has led to belt-tightening worldwide. Projects have been paused, delayed or cancelled, and companies have been reassessing hiring plans as a result. Andrew Speers, managing director of Petroplan Global, laid out the context for Re:locate. “Oil and gas firms are beholden to macroeconomic factors and exposed to substantial levels of risk relating to market volatility, uncertainty, and geopolitical instability. Despite the fact they are operating in a strategic global industry, many firms tend to be reactive. “Costs have increased substantially in recent years, against the backdrop of high oil prices. But when oil prices slide, there is shareholder pressure to cut costs across operations, including the workforce. This has been illustrated by the recent oil price slump, with several international operators and service companies announcing layoffs and cuts to contractor rates.” Neil Gascoigne, global business development manager for Hays Oil & Gas, said that the situation was still in flux, but noted, “There is a lag in effect, as the projects that had received Financial Investment Decisions, or FID, prior to the fall still need to recruit the talent required to ensure the projects reach their successful completion. “That said, we have seen some high-profile companies announcing redundancies, and, should the price not recover in the short to mid term, we would expect to see further consolidation and further companies announcing restructuring programmes. “The longer the price remains sub $70, the deeper the cuts and prolonged freeze in hiring will last. However, despite the uncertainty, employers have strategic hiring plans in place to target the specialist skills needed now and for future talent pipelines when growth returns.” Discussing areas seeing the greatest churn at the moment, Tom Watts, director of Chronos Oil and Gas’s Birmingham arm, told Re:locate, “Geographically speaking, it seems as though the whole world is feeling the pinch. However, the most movement continues to be in the Middle East region.”

14 | Re:locate Europe | Spring 2015

“A decrease in hiring is likely to exacerbate the skills gap and could result in further skills shortages in the future.” Andrew Speers added, “We expect the falling price of crude will have a bigger impact on countries with higher production costs. To date, the majority of workforce-related announcements have been focused around mature markets with ageing assets and marginal fields, such as the UK North Sea. Falling oil prices are also threatening the viability of many US projects.” The sixth annual Hays Oil & Gas Salary Guide, completed in November 2014, showed that skills shortages were once again the biggest headache for employers, with 30 per cent of respondents saying that they were a concern. This was followed by economic instability, cited by 24 per cent of respondents. While conditions have been changing rapidly, Neil Gascoigne said that those responses still held water. “We are still seeing companies struggle for highly skilled candidates despite the current situation in the market. I think that, if we were to ask the question today, skills shortages would remain a major concern. Given some of the conversations I’ve had with hiring managers recently, I would say that the economic backdrop would also be among the top concerns for employers in the current climate,” he said. Discussing the particular skills areas that were producing movement, Tom Watts said, “I think that, during any downturn in any industry, the big players are likely to invest in sales and business development personnel, to ensure that they are capturing what business is out there.” Conversely, skillsets relating to finding new assets are most vulnerable to cuts. “The two main concerning areas are geosciences and petrochemicals. Both of these skillsets are likely to be hit hard, as they are utilised during exploration stages. Oil operators have announced significant reductions in their exploration and production budgets – in the region of 25 to 30 per cent on 2014 budgets – as the focus shifts to maximising revenues from existing wells rather than exploring new plays,” said Neil Gascoigne. Andrew Speers echoed the sentiment that exploration-related roles were likely to be affected, adding, “Certainly, producing assets will not be affected to the same degree, because the capital investment has already been made.” Beyond the immediate problems raised by the fall in the oil price, Mr Speers pointed to certain producers’ focus on local hires as something that restricted mobility. Some countries, such as Oman, have requirements that large percentages of their workforce be nationals. Beyond that, firms are looking for local workers to keep total package costs down, though this can be short-lived, as those same hires take the experience they’ve gained elsewhere. Andrew Speers said that cutbacks might be used as an opportunity to address other workforce issues, however. “The industry may use this period of austerity to address persistent recruitment issues, such as the balance of contractors and full-time employees. Contractor rates have increased three times more than staff rates over the last five years; thus, it can be more cost-effective for firms to hire contractors as permanent employees.”

Both solar and onshore wind have been boosted by falling costs.

Talent pipeline Over the longer term, there’s a real danger that the talent pipeline will suffer. Neil Gascoigne noted that the long-established concern of the industry losing knowledge as senior staff and engineers retired was heightened by current conditions. “A decrease in hiring is likely to exacerbate the skills gap and could result in further skills shortages in the future. This year’s survey revealed 22.5 per cent of respondents worldwide are aged 50 and above, which means that a significant portion of the tenured, skilled workforce will be retiring over the next five or more years. With the anticipated reduction in hiring of Gen Y workers, the industry could be creating a future skills gap issue, much like it did in the mid-to-late 1980s.” This is a particular concern in the vulnerable area of geosciences. In the US, for example, two-thirds of all geoscientists are five to seven years away from retirement. Failure to hire graduates in the field could leave a substantial void. “So, as companies seek to make cost reductions to balance the books, they have to make tough decisions. If they cut from the higher-earning employees, you lose the knowledge and experience required to nurture the next generation. Stop hiring from the newer, less-experienced talent pool and they face the possibility of not having sufficient talent to pass the knowledge on to. It’s a fine balancing act. “The longer operators’ appetite for exploration remains low, the greater will be the long-term effect on other engineering disciplines, as the lag between new exploration and projects increases,” said Andrew Speers.

Scotland As noted by Mr Speers, the UK’s oil and gas sector is one of the areas that have been hit hardest by the price drop. Companies including KCA Deutag, Weatherford, ConocoPhillips, Chevron, BP and Shell have all announced job losses over the last few months. While that’s a reaction to short-term problems, it’s part of an ongoing trend. A recent study commissioned by Oil and Gas UK and skills body OPITO, Fuelling the Next Generation, predicted that as many as 35,000 of the current 375,000 oil and gas industry jobs could be shed by 2019.

The report shows that Britain runs contrary to the ‘ageing workforce myth’ prevalent in engineering fields. Just over 10 per cent of sector workers are over 55 (compared with a national average of 32 per cent), while 40 per cent of the workforce is under 35 (compared with 31 per cent nationally). However, OPITO UK’s managing director, John McDonald, told Re:locate that the shedding of jobs could still lead to the UK’s own talent pipeline issues. “Companies are doing what they can to safeguard jobs and retain skilled people now. The question is, what message is being sent to the future potential talent pool in terms of oil and gas being an attractive and aspirational career choice in the future? “What we don’t want to see is the progress made in recent years to invest in the pipeline of talent through apprenticeships and graduate schemes compromised.” There’s danger of a talent bleed to other countries, too, Mr McDonald warned. “People with North Sea experience are highly sought after the world over. Following previous downturns, the industry has created its own skills shortage, and cried out for skilled people who were laid off only months before. The North Sea today is very different to how it was 15 or 20 years ago, and, if they are not already doing it, talented, well-qualified people will move overseas.” Tom Watts told us that the UK had problems prior to the price fall. “I think that the North Sea was also struggling to attract people due to good personnel going overseas to avoid tax,” he said. Despite the air of gloom around media reports, John McDonald remains upbeat about the opportunities available in UK oil and gas. As well as new work surrounding decommissioning, he pointed to the boom in shale gas. “Recent figures from the British Geological Survey estimate that there is around 1,300 trillion cubic feet of shale gas located in the Bowland Shale in the north east of England, with a further 80 trillion cubic feet in the Midland Valley in Scotland, so it has the potential to be significant. “As a sector, shale is still in its infancy. However, with much work currently being undertaken to set the regulatory framework, it is evident that much of the skills and experience honed in the offshore industry in the last 40 years will be transferable onshore.” While oil’s immediate future looks troubled, there are still opportunities in the energy market for those prepared to be flexible.

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EDUCATION

A Swiss education In most of the major global mobility and expat surveys of the last year, Switzerland has held top position for quality of life. Globally mobile families are embracing the country’s way of life, its climate, its healthy outdoor lifestyle, and its excellent education provision, as Rebecca Marriage reports.

The language of instruction – usually German, French, Italian or Romansh – will depend on the region. Basic proficiency in the relevant language, or at least a willingness to learn, is a must. But language learning is a high priority in Swiss state schools and, as a rule, most students learn at least two other languages during their school years. These are likely to be one of the other official languages of Switzerland, and English.

Switzerland’s secondary-school pupils have also demonstrated their academic excellence in the latest set of international league tables run by the Programme for International Student Assessment (PISA). In a survey of the educational achievement of 15-year-old students in around 65 countries, Switzerland was one of only two European countries to make the top ten.

Pre-school and lower-secondary

Against the backdrop of such an exemplary state education system, independent schools offer the relocating family an alternative, perhaps more internationally transferable, learning programme – especially if the planned move is short-term and the family plans either to repatriate or to move on to a new overseas assignment. There are currently 104 international schools in Switzerland, between them teaching more than 36,800 students. Many are bilingual and follow an international curriculum such as the International Baccalaureate. Demand for places is mostly from expatriates, British being the prevalent student nationality. A quick and relatively painless integration into their new school is always a top priority for the parent of any child involved in an international relocation, and this is where international schools can excel. Geneva is Switzerland’s most international canton, and the region has seen steady growth in numbers of expats and a corresponding need for international education provision. GEMS World Academy-Etoy, part of the wider GEMS education group, which has international schools around the world, opened its doors in 2013. It is situated in the La Côte region, on the shores of Lake Geneva. With thousands of expatriate and relocating children passing through its doors each year, the smooth transfer of children into each school is a priority for GEMS school leaders across the group. Nord Anglia Education is a leading British-curriculum school group. It has four schools in Switzerland, offering education in programmes following the English National Curriculum, the International Baccalaureate, and the French Baccalaureate. In the end, relocation to Switzerland offers globally mobile families an enviable choice of provision for their school-age children. Whether they choose local integration in a state-funded school or an internationally transferable learning programme in one of the country’s excellent international schools, families can be confident that their children will be entering a world-beating education system.

All the cantons offer one to two years of free pre-school education – kindergarten or école enfantine. At present, the canton of Ticino offers three years’ scuola dell’infanzia. Compulsory education in Switzerland lasts around 11 years; pre-school is compulsory in only some of the cantons. Typically, children start primary school at the age of five or six, and they generally begin lower-secondary education at the age of 11. In almost all cantons, lower-secondary level lasts three years. Pupils receive instruction in all or some subjects in performancebased groups. The manner in which they are assessed depends on the canton, but relocating children in these year groups should expect to be assessed in some way before being placed within a local school.

Upper secondary At the end of lower secondary, around the age of 15, students move into some form of upper-secondary schooling. It is at this point that they are streamed into either a vocational route, known as Vocational Education and Training (VET), which includes practical training and class-based teaching, or a more strictly academic route, such as a Baccalaureate school or an upper-secondary specialised school. A Baccalaureate education typically prepares students for further study at university. Upper-secondary specialised schools largely prepare students for professional education and training, and for entry to universities of applied sciences, depending on the programme followed at the school. Students taking the vocational route also have the option of attending university-level colleges following the completion of their upper-secondary education. The conditions that students wishing to enter each route are required to meet vary. They include entrance exams, average grades at lower secondary, and teacher recommendation. The Swiss government site – Swiss Conference of Cantonal Ministers of Education (EDK), www.edk.ch – contains detailed information about each upper-secondary education route.

witzerland is home to a top-class state education system and some of the best international and private schools in the world. This means that relocating parents with school-age children are likely to be spoilt for choice when selecting a new school. According to figures from the Swiss Federal Office of Statistics, expats now make up almost 24 per cent of the country’s total population. A quick look at the results of the InterNations Expat Insider survey will tell you why. Switzerland took the number-one ranking in the survey’s Quality of Life Index, which was down to its ranking first out of 61 countries in the categories of travel and transport, as well as for health, safety, and personal wellbeing. “Expats have told us that Switzerland ranks as the top country for a balanced expat life,” says Dean Blackburn, head of HSBC Expat. “Expat parents note how their children have a healthier lifestyle and overall are enjoying a better quality of life.”

16 | Re:locate Europe | Spring 2015

Switzerland sits comfortably in the top ten in HSBC’s Raising Children Abroad league table, which ranks each country using expat parents’ views about bringing up their children overseas.

The education system in Switzerland Where Switzerland really stands out is in its very high-quality education system. In the InterNations survey, the country ranked first in the world for education, and its state-school system is enviable. Only 5 per cent of children attend private school. With annual fees averaging around £16,080 (23,283 Swiss francs), it’s not hard to see why. State education is run and funded by the 26 cantons. The system is efficient and established, but also can create some confusion for those entering the country, as each canton can have a slightly different approach to education provision.

International and independent schools

Education standards International business school INSEAD places Switzerland in first place in its Global Competitiveness Index, largely owing to this split secondary-school system. “In Switzerland, thinking about becoming employable starts off in schools at an early age,” says Paul Evans, holder of INSEAD’s Shell Chair of Human Resources and Organisational Development. “At age 15, over 70 per cent of Swiss schoolchildren go on to select what’s known as the apprenticeship track, combining practical work experience with traditional theoretical learning. “Within the current Swiss government, half of the ministers have come out of the vocational stream. For future talent competitiveness, countries have to take vocational education – that is, employability – much more seriously.”

relocateglobal.com | 17

Relocation OVERVIEW

EDUCATION

EDUCATING GLOBAL CITIZENS EXPLORING UK UNIVERSITIES How can mobility professionals best advise assignees with late-teenage children on higher education? Sue Shortland provides some tips for UK university visits.

he role of the mobility professional frequently involves Once a student has demonstrated interest by including them in their advising parents on appropriate schools or engaging a list of choices and the university has made an offer, the institution specialist consultant to undertake this. For parents moving then aims to ensure that it is the student’s first choice. with late-teenage children, issues concern next steps – such as which Universities invest considerable resources in running open days university they should attend, and which course they should study. for potential students and applicant days to convert students who As part of efforts to support global talent, the mobility have received an offer of a place to convince them to accept it as professional’s remit may well stretch to giving advice on their their first choice. country’s higher education system, as international relocation policies do not usually make direct financial provision or give consultancy Open-day tips support for assignees’ children’s tertiary studies. Attending an open day requires forethought and careful planning. International assignees’ children are often considered to be the There are usually a range of events taking place concurrently, and global citizens of the future. Given their experience of studying it is never possible to fit everything into the time available. For example, the open day will in different cultural and linguistic environments, they often prefer to usually include a strategic overview The UK offers high-calibre university enter tertiary education in a different of the university’s mission, future education and is one of the top choices of and values given by the vicecountry rather than return home. However, while assignees are chancellor or dean of faculty. This country for students wishing to take a probably familiar with university provides a helpful guide to the ethos bachelor’s or master’s degree. entrance procedures in their home of the institution. Subject-based countries, they are less likely to talks, exhibitions, drop-in subject know how to go about helping their children with the selection of enquiry sessions, and subject department tours are given. These an appropriate institution in a foreign land. are critical to understanding what a course offers and how it runs The UK offers high-calibre university education and is one of the in practice. In addition, general talks on accommodation, finance, student top choices of country for students wishing to take a bachelor’s or master’s degree. But the choice of which university to apply for can be services, and disability services are offered. Tours of housing/ tricky given the large number of institutions and courses available. accommodation, the library, the campus, and the town or city Late-teenage children who are studying at schools in the UK also take place. It is important to prioritise the most important are usually enrolled in a state or private school, a sixth-form college of these events, and to distinguish between what is critical to the or an international school. Schools and colleges in the UK take an selection decision (typically the subject talk/drop-in and visiting the active role in assisting students to complete the application process accommodation) and what is interesting to do or see if there is time. for gaining a UK university place via UCAS. They also help guide Take the opportunity to ask questions to ensure the points students in writing their personal statements. that matter are addressed, and take notes, as, after visiting several Students usually explore course and university options themselves universities, the key differences can begin to blur. Rushing from one online, but it is difficult to get a real feel for the culture of the session to another can prove quite stressful, so ensure that sessions institution from a webpage alone. Relocating families with late- are planned to allow time to relax and reflect. Choices made in the space of an open day can be reaffirmed or teenage accompanying children may therefore enjoy the opportunity to attend university open days to get a feel for higher education and its reconsidered at an applicant day. These days frequently cover similar student lifestyle. This can assist them in deciding where to undertake ground, but with greater emphasis on course specifics. The key issue to remember is that the choice of a university is a university education. Universities compete to fill their places. They set out to show life-changing one, and it must be made carefully. themselves in their best light, to attract the most suitable applicants.

Graebel Relocation is a privately-held global company that administers world-class relocation and removals services for clients in the Global 100, Fortune 500 and mid-sized and emerging firms across the globe. From the Graebel centres that are located in EMEA, APAC and the Americas’ regions our industryexperienced staff are dedicated to exceed our clients and their assignees’ expectations. Equipped with advanced technology, these centres manage global relocation and mobility services on six continents in 165 countries, in compliance with each client’s policies and the Graebel Code of Conduct. For seven decades Graebel has placed our clients at the forefront: Modern business practices have been formed and implemented that have spanned industry-first innovations like apps and portals that give each customer the choice to review real-time reports online. Of course, at any time customers can connect with their client relations team. Clients and the industry have honoured Graebel with best-in-class awards such as Company of the Year for International Business Services, First-place Service Company, the Platinum Award, First-place Thought Leadership Research, First RunnerUp International Removals Company of the Year in EMEA and APAC, the Family Business of the Year, Fastest Growing Private Company for two straight years, and more. Led with poise and tenacity by ceo and well-respected leader, Bill Graebel, SGMS was named Global Mobility Professional of the Year for the Americas and recognized as an EMEA finalist for this same honour for 2014; and, a finalist for the Corporate Social Responsibilty CEO of the Year. At Graebel, our fully integrated solutions enable multi-national and local companies alike to relocate their talent – in country or around the world, in a fashion that effectively enriches their organization and employees’ business performance, improves the bottomline and ultimately, builds trust and confidence for long lasting relationships.

SECTION HEADING

Next shares a small sampling of our comprehensive service menu:

PRE-ASSIGNMENT SERVICES: > > > > > >

Cost estimate forecasts Candidate assessment Assignment planning Budget planning Assignment letter Compensation worksheet

RELOCATION:

EMEA HEADQUARTERS: Address: Malé námstí 459/11 110 00 Prague 1 The Czech Republic EMEA Executive: Nicolas Sepulchre Senior Vice President Strategic Development EMEA Mobile: +32 486 59 91 90 Email: nsepulchre@graebel.com UK Executive: Simon Mason Vice President Business Development, EMEA Mobile: +44 77308 14969 Email: smason1@graebel.com Skype: simonjohnmason1

VITAL STATISTICS: Year Founded: 1950

Number of Employees Worldwide: 714 Centres: The organisation has in-region centres in the Americas, EMEA and APAC for consultancy, and managed services in 165 countries on six continents.

SCOPE OF SERVICES:

From collaborative policy and program transformations to flawless transition, implementation and execution, our people posess the in-region and industry experience, immediate access to exceptional local partners and an unbridled passion to exceed expectations everywhere.

> > > > > > > > > > > >

Assignee policy consult Intercultural training Language training Immigration, visa, passport assistance Accompanied home search Home sale schemes Hotels, temporary serviced accommodation Tenancy support Settling-in service Vacant property management Lease renewal, termination service Removals, storage

FINANCIAL MANAGEMENT: > Expense management > > > > > >

Multiple currency expense payments Payroll, tax counselling, reporting Activity, cost reporting P11D reporting Housing cost disparity report Consolidated billing

ASSIGNMENT MGMT. & SUPPORT > Area orientation to familiarise employee, family > School search, educational advice > Neighbourhood overview > Spouse, partner assistance > Vehicle lease, purchase > Drivers’ licensure assistance > Financial, insurance services > Ongoing assignment support > Repatriation assistance > Emergency services

GLOBAL VALUE-ADDED SERVICES > > > >

Policy review, design, consultation Executive on-site concierge removals service Group relocation, removals services Graebel | Connect™ consolidated, expedited US import/export removals services > Hosted expatriate events > Ongoing market intelligence & trend reports

18 | Re:locate Europe | Spring 2015

World Headquarters: USA | 16346 Airport Circle | Aurora, CO 80011 USA | marcom@graebel.com | +1.800.723.6683

relocateglobal.com | 19

EMPLOYMENT

2015 EMPLOYMENT LANDSCAPE TRENDS

Current work climate in the US The upswing of the US economy is especially good news on the jobs front, strengthening the market for 2015. Monthly job gains are expected to increase to average 250,000 or about three million for the year, which is slightly above the addition of 2.95 million jobs in 2014. These gains will keep incomes and consumption fuelling healthy economic growth.4 In the US, specifically, the rapid hiring that made 2014 an excellent year for job gains shows no sign of decline.5 Employers added nearly three million jobs in 2014, the best year for hiring in 15 years. That helped drive the unemployment rate down to 5.6 per cent, the lowest in six years.6 Job openings rose 2.9 per cent to 4.97 million in November, the most since January 2001. In December 2014, companies hired 252,000 more workers, with gains widespread across nearly all industries. Hiring of healthcare and food service workers continued at a strong pace. There was a strong jump in construction employment as well.8 The 2015 unemployment rate is predicted to finish off around 5.3 per cent – only marginally lower than the 5.6 per cent recorded in December. The consistency could be related to the strong jobs market, which is likely to entice more individuals back into the labour force.9

Recruitment and retention trends

With hiring volumes on the rise for the first time in several years, understanding the jobs market and responding to industry trends are key to recruiting and retaining top talent. Graebel Relocation takes a look at the global employment picture.

n previous years, the unstable global economy and its declining jobs market have impacted global employers’ ongoing ability to recruit and retain employees. Currently, employers in 38 of the 42 countries and territories surveyed by ManpowerGroup have reported positive first-quarter hiring plans.1 Forecasts indicate that the hiring pace in most of the world’s labour markets will not shift dramatically compared to three months ago or even last year at this time.

The current state of global hiring A global employment outlook shows that overall hiring is positive for 2015. Hiring confidence for the January through March timeframe is strongest in India, Taiwan, and New Zealand. Staffing levels are expected to grow by varying margins in all but four countries – Finland, Italy, the Netherlands, and Switzerland – but there is little evidence of a broad-based acceleration of hiring activity. Instead, patterns similar to prior quarters continue. According to a survey by the ManpowerGroup, employer confidence in both the US and the UK continues to improve gradually. Hiring intentions in China and Brazil remain positive, but the energetic pace that used to characterise these labour markets continues to slow to more reserved levels. And the hiring pace in

20 | Re:locate Europe | Spring 2015

Ireland and Spain is regaining momentum as outlooks again turn positive following dips three months ago.2 For the third consecutive year, Japanese employers report the highest level of talent shortage; more than four out of five employers are struggling to fill open jobs. However, this issue isn’t limited to Japan. Employers around the globe, including those in Peru, India, Brazil, Turkey, and Argentina, have also reported skilled workforce shortages. During the past 12 months, the problem has worsened in ten countries, most notably Latin American nations. At the other end of the spectrum, employers in Ireland and Spain reported the least difficulty filling jobs.3 ManpowerGroup interviewed more than 37,000 employers in 42 countries in the first quarter of 2014, and found that, on average, 36 per cent reported having difficulty filling jobs, the highest proportion in seven years (see Table 1).

Staying informed on the current jobs market and responding to industry trends are crucial to recruiting and retaining top talent. With hiring volumes increasing for the first time in four years, hiring highly skilled talent is now more important than ever. And sourcing this talent while improving quality of hire is the secondhighest priority for recruiting leaders worldwide.10 Competition and compensation continue to be the top obstacles to attracting talent. Organisations of any size face unique challenges in recruiting, and therefore must play to their own competitive advantages. Broader technology advancements have also begun to disrupt the talent industry. And retention continues to be a priority. According to LinkedIn, the average length of time an employee stays at one company is four years.11 Attractive and appropriately targeted benefits may work as an advantage for companies looking to attract new employees – and keep the ones they already have. Table 2 contains the percentage of respondents indicating a particular benefit was “very important or important,” according to a survey by the US Bureau of Labor Statistics.

Table 2: Benefits employees value the most12

Table 1: Hardest jobs to fill in 2014

Retirement annuity (pension plan)

91 per cent

Global US

Thrift/savings plan: 401(k) 403(b)

89 per cent

Employee healthcare benefits

89 per cent

Retiree healthcare benefits

87 per cent

Life insurance

71 per cent

Long-term care insurance

63 per cent

Health/wellness programmes

53 per cent

Flexible spending accounts

45 per cent

1 Skilled trades

2 Engineers

2 Restaurant and hotel staff

3 Technicians

3 Sales representatives

4 Sales representatives

4 Teachers

5 Accounting and financial staff

5 Drivers

6 Management/executives

6 Accounting and financial staff

7 Sales managers

7 Labourers

8 IT staff

9 Office support staff

9 Engineers

10 Drivers

10 Nurses

In addition to providing traditional perks like 401(k) matching funds and free medical and dental benefits, employers are becoming more innovative, offering perks like onsite daycare, acupuncture, free food, game rooms, concierge services, and more. Wages and benefits rose at a slightly healthier rate last year as well, which is a sign that strong job gains could be forcing companies to pay a bit more for workers. A Bloomberg survey of economists shows workers will see higher wages this year as the jobs market tightens. Hourly earnings for employees on company payrolls will advance 2 to 3 per cent on average, according to 61 of 69 economists surveyed between 5 and 7 January 2015.13 Compensation growth for non-supervisory workers in the US is likely to jump in 2015 to 2.4 per cent, after running at about 2 per cent in most of the second half of 2014, which could be a result of increased minimum wage earnings. These wages fell by six cents per hour in December, the most in over 50 years.14

Your global relocation partner Graebel Relocation’s consultancy services and effective relocation programme administration render efficient benefits for recruiting and retaining your people across the globe. For more information, visit www.graebel.com or email the UK representative, Simon Mason, at simonmason1@graebel.com 1 Manpower Employment Outlook Survey Global Q1 2015. ManpowerGroup. 2 Ibid. 3 T he Talent Shortage Continues: How the Ever Changing Role of HR Can Bridge the Gap. ManpowerGroup. 4 David Payne. Kiplinger’s Economic Outlook: Employment. Kiplinger, 9 January 2015. 5 Christopher S Rugaber. Job openings jump to 14-year high. ABC News, 17 January 2015. 6 Ibid. 7 2014 Talent Shortage Survey Key Findings. ManpowerGroup 8 David Payne. Kiplinger’s Economic Outlook: Employment. Kiplinger, 9 January 2015. 9 Ibid. 10 2015 Global Recruiting Trends. LinkedIn. 11 Ibid. 12 Top Employee Benefits. Money-Zine. 13 Michael Jamrisko. Worker Pay in US Rose at a Slower Pace in Fourth Quarter. Bloomberg Business, 30 January 2015. 14 David Payne. Kiplinger’s Economic Outlook: Employment. Kiplinger, 9 January 2015.

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HEALTH

Workplace mental health:

Continuing the conversation Mental health is moving back up the workplace agenda, thanks to a campaign of awareness-raising initiatives, research and government programmes that together seek to break the silence and give mental wellbeing strategic-level status, writes Ruth Holmes.

igures show that at least one in four employees will experience mental ill health at some point in their working lives. As well as the personal and human costs, the Organisation for Economic Co-operation and Development (OECD) estimates that the annual loss to the UK economy is £70 billion. Despite this, new research from the Institute of Directors (IoD), released on the second annual Time to Talk Day [see box], found that three-quarters of the businesses it studied had no formal policy on mental health. The IoD surveyed 1,150 employees and 586 senior decisionmakers, and found that 74 per cent of employees would prefer to discuss mental health issues with someone outside work. A further survey, also released on Time to Talk Day by campaign organisers Time to Change, supported this finding, noting that nearly 60 per cent of people with a mental health problem were waiting more than a year to tell the people closest to them about it. This reluctance suggests that mental health issues remain taboo in the workplace, and that companies could be better equipped to support employees. Commenting on the IoD’s findings, director general Simon Walker said, “There may come a time when people are as comfortable talking about their mental health as they are talking about the going to the dentist, but we’re not there yet. “Huge progress has been made, but society still has a long way to go in increasing awareness and understanding of mental health issues. Businesses have an enormous role to play in creating an environment where such issues can be discussed openly, effectively and safely.” The awareness campaign could have particular significance for global mobility and international HR practitioners, given the acknowledged risks to assignees’ wellbeing that come with moving home, jobs and country while maintaining a personal and family life. Management structures and cultural differences could add an extra layer of complexity. The CIPD’s December 2011 Employee Outlook focus on mental health in the workplace found that, for nearly two-thirds of people experiencing poor mental health, problems stemmed from the interplay between work and personal lives. Prolonged exposure to excessive pressure was also linked to common mental health conditions such as anxiety and depression, noted the professional body for HR and people development’s study. It concluded that it was “impossible to disentangle the impact of various factors on mental health, and so [it] is in employers’ interests to actively

22 | Re:locate Europe | Spring 2015

Time The se to Tal emplo cond annu k al Tim yers’ a Run b e to Ta nd lea y men lk d ers’ Da ta place on 5 F l health cha bodies, inc y was back ed by ludin e r it b ie ru with m s leadin ental h ary. Employ Mind and R g the CIPD and th g ers are ealth is ethink The Tim e IoD. M sues a b nd bre eing urged ental Healt to reac e to Talk D h t a o , it k ay s ho the sil ence t upport emp took are fee ut to collea campaign is o loy gue ling end th , th e stigm ees to log . Resources s and take fi erefore, enc a. supp ourag ve m and taking ort for the c conversatio inutes to fin ing people am d n place, are av paign and kits, as well out how the ailable y count as a fu t from t he init he conversa nction iative’s tio websit ns e.

support staff with mental health problems, whatever the original cause or trigger.”

Change for the better Sue Baker, director of Time to Change, the mental health anti-stigma programme run by Mind and Rethink Mental Illness, echoes these sentiments. “Whilst we’ve witnessed public attitudes around mental health start to change, these [IoD] findings show how much more needs to be done in the workplace.” Encouragingly, the IoD study identifies much scope for greater workplace involvement. Both staff and employers responding to the survey offer overwhelming support for businesses to take a leading role in addressing mental health. Around eight in ten (82 per cent) companies believe they should adapt their workplaces and working practices to promote mental wellbeing. Almost seven in ten (68 per cent) employees agree that it is a business’s responsibility to make provisions for its staff ’s mental wellbeing. This support no doubt reflects employers’ duty-of-care perspective, but also a growing awareness and realism about chronic health conditions like depression in the context of global megatrends affecting the workforce and workplace – like increased labour-market participation, the productivity agenda, and government policies.

A prescription for improvement? A study that launched the week before this year’s Time to Talk Day, and that offers another constructive perspective on the issue, estimates that chronic and fluctuating conditions are set to rise, affecting around 40 per cent of the UK’s working-age population by 2030. Research institute The Work Foundation’s white paper Fluctuating Conditions, Fluctuating Support: Improving Organisational Resilience to Fluctuating Conditions in the Workforce finds that employers and people living with chronic and fluctuating conditions like asthma, depression and rheumatoid arthritis face significant challenges in managing their working lives, and that the quality of support often also fluctuates far too much. The research finds that the UK’s Equality Act, which covers mental health conditions that affect normal day-to-day activity, such as depression, bipolar disorder, schizophrenia and dementia, is failing to protect many employees with fluctuating conditions from discrimination.

Liz Sayce, chief executive of Disability Rights UK, said at the report’s launch, “Many (though not all) employers have grasped their obligation to make workplace adjustments for people with stable impairments – for instance, providing chairs or adjustable desk heights for people with specific physical impairments. But when it comes to the rights of people with an impairment that changes week to week, or hour to hour, it’s a different story. “People’s rights to adjustments are often ignored, and government programmes are not geared up to work effectively. Many of our members tell us they want to work but need flexibility and tailored support to do so – and with that support could avoid long-term unemployment.“

Taking action Speaking to Re:locate, Karen Steadman, lead author of The Work Foundation’s paper, explained how managers and companies could support people living and working with mental health problems better. “Health conditions are heterogeneous, presenting in different ways for different people. Managers need to take an individual approach to providing support for individual employees with mental health conditions, ascertaining what that individual’s difficulties are, and how the work might be adjusted, often temporarily, to enable them to continue to work productively during a period of ill health. “Communication and understanding are key; managers need to have an open door, and an open mind. It’s also important to remember that an individual with a mental health condition does not have to be 100 per cent well to return to work, and with the right adjustments to work – which are usually temporary, and often

revolve around changes to hours – people can, in many cases, return to work much sooner. “Indeed, for many people, continuing to work while recovering is highly beneficial, where there is appropriate support available. “UK initiatives such as the new Fit for Work service and the Access to Work Mental Health Support Service provide advice to employees on what workplace support might help with their recovery and return to work.” Alongside changing attitudes to fluctuating conditions, advocated by the Time to Change campaign and its supporters, The Work Foundation makes a number of recommendations for employers and government to address the gaps its paper identifies. At their heart is for government to support measures that would increase flexibility of sickness absence policies. Modelled, The Work Foundation says, on the part-time sickpay scheme in operation in Nordic countries, more flexible policies would allow people with chronic conditions to arrange pre-emptively with their managers part-time sick leave to manage flare-ups, and potentially be supported by wider access to income protection insurance. Karen Steadman concludes, “Fluctuating health conditions are a very real threat to the sustainability of the UK workforce and the resilience of UK businesses. The introduction of statutory part-time sick pay and growing income protection would go a long way to supporting those with fluctuating conditions. “However, it is essential that government also impacts upon workplace culture and practice to ensure that employers fulfil their obligations to help their employees.”

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SHAPE THE GLOBAL MOBILTY AGENDA

EXCLUSIVE EVENT: Engaging Global Talent

Global managers and HR professionals face tough challenges as their organisations enter new markets around the world. In an exclusive high-level half-day workshop, we continue the conversations begun at Re:locate’s international networking reception in February.

f you’re in HR and want to sit at the decision-making table, this is the perfect opportunity to explore how you can make your opinions count. People are at the heart of business growth, and engaging diverse employees is key to boosting productivity and with it ROI, whether you’re facing change and transition, going into new markets, planning a group move, or coping with mergers and acquisitions. Global managers, chief executives and financial directors will find this event an invaluable introduction to the global mobility arena. Whether you’re recruiting from overseas or setting up in a new dominion, this is your chance to understand the challenges and be inspired by those experienced in this field. Why not bring your HR director to network with fellow professionals and share entrepreneurial insights in this highly specialised area? This is about setting your sights high and working through, with your peers, how you can achieve ambitious goals through creativity and innovation. ➲

Objectives • Identify and solve the engagement challenges of managing a global workforce • Learn how to communicate with productive teams and individuals in expanding global markets

Using the psychology of humour and happiness to engage global talent

• Discover how to retain and improve performance across a range of global organisations • Learn how individuals can feel connected in an international environment

What you will gain • Opportunity to share opinions with global mobility thought leaders

• Identify the skillsets to help managers and leaders work with diverse teams to manage change

• Practical solutions to transform a global organisational culture • Knowledge of how to motivate and engage already top-performing teams • Insights into how the Thinking Environment and Laughology models can improve communication and productivity

24 | Re:locate Europe | Spring 2015

Engaging t Global Talen! W BOOK NO 5 14 MAY 201

Stephanie Davies, CEO of Laughology

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WHO WILL BE THIS YEAR’S WINNERS?

EXCLUSIVE EVENT: Engaging Global Talent Content: Engaging Global Talent Part 1: Judy Oliver A practical session using the Thinking Environment at Work, formulating outcomes and an action plan. • Strategic thinking, looking at the wider business environment: politics, the economy, demographics and technology Judy Oliver, of Oliver & Company (UK), specialises in coaching, facilitation, leadership and partnership development for individuals, teams, boards and alliances. A barrister by training, she started her career at BP, setting up the first public-private sector MBA programme. She went on to hold senior positions in local government organisations to help them take advantage of effective business practice. Judy now works with high-level public- and private-sector organisations, including government departments, and with medical leaders. She is a Fellow of the RSA and the CIPD and a Visiting Fellow of Bournemouth University.

• Key questions you need to answer in order to succeed in global markets • Issues around retaining and developing talented young employees • Practical tools and techniques that can be transferred to other parts of working life

Part 2: Stephanie Davies Techniques, coaching and development tools for managers, leaders and individuals. • Engaging with diverse teams in a global market • The neurology of happiness and the impact on teams and individuals • Understanding and increasing emotional intelligence, mental agility and self-awareness • Creating cultural awareness and positive attitudes and behaviours

Who should attend? Stephanie Davies is CEO of Laughology, which uses the psychology of humour and happiness as a foundation for communication, development and thinking. She combines a background as an awardwinning stand-up comedian with expertise in applying the concepts of neuroscience and emotional intelligence in a business context. Over the past 15 years, Stephanie has worked on innovative projects and events in the private and public sectors. Her creative and rounded approach to engagement, happiness at work, continued development, culture change and customer loyalty drives success in the organisations she works with.

Help shape your organisation’s future

• • • • •

CEOs and CFOs Business leaders HR directors and managers Talent managers Senior global mobility professionals

It’s time to set the scene for the annual gala dinner and introduce an exciting new pre-awards event.

he entries are in and the excitement is mounting. Winners of the Re:locate Awards 2014/15 will be announced at the annual black-tie gala dinner, which takes place at the prestigious Institute of Directors, in London’s Pall Mall, on Thursday 14 May. There will be plenty of time for networking. The evening starts at 7.00 pm with a sparkling champagne reception and live music. After a delicious three-course dinner with fine wines, our winners will receive their trophies – the highlight of a memorable evening. This year, we inject some extra fun and humour into proceedings by our choice of keynote speaker. Stephanie Davies, CEO of Laughology, will entertain and engage with her unique blend of comedy and understanding of neuroscience and the psychology of happiness. As an expert Stephanie Davies on humour, happiness and health, Stephanie is a frequent contributor to popular television programmes like the ITN news, and a regular on BBC Radio. The master of ceremonies will be Laughology’s Dave Keeling, a professional actor, comedian, Dave Keeling speaker and trainer.

Venue and date Institute of Directors, 116 Pall Mall, London SW1Y 5ED Thursday 14 May 2015, 1.30 pm–5.00 pm

Join us for the Gala Awards Dinner and the afternoon event. Visit our website for full details and to reserve your places.

relocateglobal.com

SPONSORED BY:

How to book For full details and to book your places, see the Events section of relocateglobal.com, call +44 (0)1892 891334, or email events@relocatemagazine.com

ENDORSED BY: 26 | Re:locate Europe | Spring 2015

At Re:locate, we’re always seeking innovative ways of supporting you in the work you do across global mobility. This year, we are introducing a high-level workshop on boosting productivity and ROI by creating happy, engaged teams and individuals in an ever-expanding global market, to be held on the afternoon of the Gala Awards Dinner.

Judges announced Each year, the Re:locate Awards judging panel, made up of independent experts, reflects the diversity of those working in the world of relocation and international assignments. For details of this year’s judges, visit the Awards section of relocateglobal.com

Keep up to date The shortlist will be announced in April. For the latest Re:locate Awards news, see relocateglobal.com, and subscribe to our free monthly e-newsletter, Re:locate Extra. The Summer 2015 issue of Re:locate magazine will include a full-colour supplement on this year’s awards, with case studies, photographs and comments from our judges.

BOOK NOW!

Cost £350 + VAT

High-level workshop event

Three ways to pay 1. Book and pay online, via PayPal. 2. Download a booking form, and return it by post or fax it to +44 (0)1892 891336. 3. Call us on +44 (0)1892 891334.

SERVICED APARTMENTS

Shaking it up

Times change, and so do fashions. Who would have thought that collaborative consumption – sharing, swapping and renting – would become so popular? Being resourceful and connecting people around the world is not new. Baby Boomers travelled and passed on contacts in the heady days of the 1960s and 1970s. In recent years, from Boris Bikes and car shares to pop-up restaurants, the concept of using what you want when you want it, and making the most of the community you live in, plus an appreciation of environmental impact, has begun to shape our world. Nowadays, when some people travel for work, they want to feel part of the community in which they stay. No longer are recommendations for local restaurants sufficient. Serviced accommodation providers have appreciated this, extending their levels of service and hospitality to include a sense of belonging. Airbnb has exploded as an accommodation concept for the independent minded. You stay in someone else’s place while they are absent but have left most of the traces of home. Recommendations are key to the property’s next occupancy. The website is clear and easy to use. You take a bit of a punt, as a user and as a property owner, but, for many millions of users, it is a win-win arrangement. The concept is beginning to bite into the business travel sector. Airbnb, now in London, exhibited at the recent Business Travel Show and was proud to have signed up Grant Thornton as users. The BridgeStreet IQ Report: Business Travel Insights 2015 revealed that, while 15 per cent of business travellers had used a service like Airbnb, only 31 per cent of corporate travel policies allowed their use. This will be a serious problem for the growth of the concept. ➲

SACO Bristol Broad Quay

As the global market for business travel accommodation grows and changes, the serviced apartment sector is under pressure as never before. Fiona Murchie looks at how some of its key players are adapting to stay ahead of the game.

t’s all change for the serviced accommodation sector as it rises to the challenges of global growth. Established provider SACO is rocketing into the future with the announcement that it has merged with CL Serviced Apartments (Oaktree Capital Management) to launch Beyonder ApartHotels. The new company has cleverly targeted the tech-savvy generation that corporates struggle so hard to cater for. As employers know, this demographic is a challenge; they want global experience, but often on their terms. While acknowledging that many younger players are intent on managing their own careers and will be off to pastures new after three years or less, HR and talent managers are aware that these people are the lifeblood of their businesses. The cost of global mobility is high, and there is intense pressure to keep costs down, but there is also a need to balance talent retention and duty of care. Beyonder ApartHotels is focused on helping Millennial global travellers to get the most from their stays, whether of six days or six months. Tablets control everything from the lighting to the television to the blinds, and free, high-speed wireless internet, telephone and films are standard. The combined company will have a portfolio of 1,645 apartments, which includes new transactions on 945 apartments across ten properties in London, Amsterdam, Edinburgh, Glasgow, Aberdeen and Dublin that are scheduled to open from December 2015, along with SACO’s existing portfolio of 700 apartments across the UK. Presumably there will be no age restrictions on the door, and if you are handy with a mobile and are on the go, the concept will catch on.

28 | Re:locate Europe | Spring 2015

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Citadines Grand Central Sri Racha, Thailand

SERVICED APARTMENTS

Global Serviced Apartments Industry Report The fifth edition of the Global Serviced Apartments Industry Report, released in February, makes interesting reading. Citadines DPulze Cyberjaya, Malaysia

Oakwood Worldwide Serviced Apar tments Marylebone, London

However, as 46 per cent of respondents indicated that employees were responsible for making their own business travel arrangements, there is potentially a big market for the serviced apartment providers who claim their attention. It makes sense that this will be via phones and mobile devices, so the race is on to influence end users. The news is good for serviced accommodation providers regarding preference for this type of accommodation. A massive 74 per cent of corporates with a travel policy include serviced apartments, with 44 per cent recommending them for stays of between one and four nights, rising to 76 per cent for stays of longer than a week. This is a clear indication that serviced apartments are preferred to hotels. This reflects the huge growth in the sector over the last five years. Drilling further into the report, location was the key driver for choice of accommodation for the business traveller. Perhaps more importantly for the serviced apartment sector, which is working hard to establish global brand recognition, consistent customer experience is most likely to drive loyalty to a specific brand. This must be rewarding for BridgeStreet, with its tiered system of six brands, providing guests with six- to two-star serviced apartments. It has been very focused on promoting the quality of its offering across all its brands, the ‘memorable hospitality experience’ and the consistency, which is so important for the corporate market. BridgeStreet’s stand at the Business Travel Show reflected its confidence in meeting the needs of the UK and European marketplace. With more than 50,000 apartments in more than 60 countries, it is a main contender for taking on more of the European business, which is driving into relocation hotspots and emerging markets. London and the UK are a springboard for global growth, but the complexities of getting the message right in other parts of Europe must not be underestimated.

Duty of care Let’s not forget the responsibilities of the employer. Oakwood was one of the first global serviced apartment providers to show the lead, by providing emergency accommodation for employees airlifted to safety following incidents of political unrest. Oakwood is also aware of responding to the values set by its corporate clients. Impact on the environment is taken seriously by corporates assessing accommodation providers, as are evidence of appreciation of corporate and social responsibility and an understanding of critical business needs. Corporate HR cannot afford to overlook duty-of-care responsibilities, and they look for these to be reflected by their accommodation suppliers.

Business travel risk Compliance is also high on the agenda for corporates. This is not a new phenomenon, and we have written articles across the Re:locate media about the risks of stealth business travellers. That this issue is gaining so much attention now may be to do with governments around the world stepping up the penalties for tax and immigration misdemeanours, or it may be to do with the increase in the volume of business travellers as international assignment numbers are reduced. As the session on compliance at the recent London Worldwide ERC summit revealed, corporate clients cannot afford to let business travellers slip under the radar. However, it is important to make sure that the compliance debate doesn’t drive the innovation out of global mobility, or the relocation management companies could shoot themselves in the foot. Last year, the relocation market was a key focus of the serviced apartment sector. This is still the case, with increasing numbers of the big brands growing their market share, and smaller providers appreciating the advantages of longer stays. The proposition is compelling, where quality is consistent and the supplier understands the relocation requirements of security, trackability, flexibility and quality. But what are the cost savings against hotels now? Now that business travel is high on the agenda, some serviced apartment providers are also embracing the short stay. Key providers, such as Cheval, the London-based operator which formerly dealt almost exclusively with the corporate relocation market, now have an offering for business travellers of the same high standards but for a few nights’ stay. The crossover market is very much on the radar of the savvy operators, who realise that competition is hotting up. The threat of international hotel groups coming into a marketplace which has become the preserve of the serviced apartment sector is always around the corner. Staybridge, the InterContinental Hotels Group brand, has been in the UK since 2008 and recently opened in Vauxhall following a successful opening in Stratford. A coup for the Association of Serviced Apartment Providers (ASAP), which now has 88 members, was the announcement that the world’s largest operator/owner, The Ascott Limited, had joined the association. Rebecca Hollants Van Loocke, Ascott’s UK country manager, said, “We feel that now is the right time to get on board with ASAP, who are gaining serious momentum within the industry. Ascott has seen that a united voice for our industry is paying dividends,

et, London Apartments Great Tower Stre Oakwood Worldwide Serviced

and we look forward to working alongside the team to ensure business and leisure travellers make serviced apartments a primary choice for their accommodation needs when in the UK.” In the UK, Ascott has six properties under the Ascott and Citadines brands, with 736 apartments. Speaking at industry events, Ms Hollants Van Loocke has been open about her organisation’s desire to grow in the right locations, including London and Paris. ASAP’s managing director, James Foice, said that Ascott’s international reach would be of particular benefit to his organisation as it sought to build membership beyond the UK and roll out its quality programme to help create an international quality standard for serviced apartments. The association has already made overtures in the US, but Europe, with its different models in France, Germany and other regions, will perhaps be a harder nut to crack. Asia is a hugely important market for global businesses (the prized corporates with a relocation and business-travel need), and the expertise that Ascott can bring to the table will be invaluable if ASAP is to reflect the global ambitions of its leading international members. The spirit of collaboration is a sign of a maturing market. There is huge knowledge of the market, hospitality and the service model – not to mention flair and sophistication – within the global apartment brands. But perhaps this spirit of cooperation, which is embracing the very big players, is also an indication of the seriousness of the potential threat from the international hotel chains if they surge forward into what has become the domain of the serviced apartment sector. Interesting times as the stories unfold.

ince the report was first published in 2008, the number of apartments has risen to 748,437 worldwide. That is a staggering 14 per cent increase year on year. There is no sign yet of a downward trend, with 69 per cent of operators predicting that they will increase the number of apartments in existing locations over the next two years, predominately in Europe and Asia. Serviced apartments appear to be growing in appeal to corporate buyers and relocation users. Of the survey respondents, 81 per cent prefer serviced apartments to hotels, up 3 per cent from the previous survey in 2013. Users seem most to appreciate the ability to cook their own meals or entertain, the privacy, and the overall environment. It is the competitive market rate that is drawing in the corporates, followed by total cost of stay, fulfilment of their duty-of-care remit, and feedback from assignees and business travellers. The report is clearly evolving. The first editions had around 20 contributors, but now there are 43. In the early days, operators were reluctant to provide information; now they are keen to be involved. Originally, the report was a reference tool for buyers, but now it is valued for its contribution to thought leadership in the marketplace. Operators who can analyse the detail and combine it with knowledge gleaned from global mobility surveys will be in a much stronger position to support their corporate clients and understand their challenges. The race is on to get the message across that serviced apartments are a global solution. Some of the big brands offer a worldwide presence, and now, increasingly, the independents are working as networks. An example of this is the TAS Alliance. As Jo Layton, MD of group commercial sales explained at the recent press launch for the report, the shift is now towards supplier engagement rather than supplier management, with the need for suppliers to understand fully what a global programme means. There is an increasingly important role in setting expectations for travellers as corporates send their international assignees to locations further afield. The picture is not the same in LATAM as it is in the Middle East. The reality is that there is a huge demand in Brazil for serviced apartments, with inadequate supply. Who would have predicted that Africa would feature so strongly on the wish list for serviced accommodation provision? Accommodation is a challenge for corporates and their suppliers in a region which is severely undersupplied outside South Africa and Nairobi. The more you read of this fascinating report, the more questions arise. We look forward to exploring the implications in the months ahead. The Global Serviced Apartments

Industry Report 2015/16

in association with

a TIN report

For serviced apartments news and articles, visit relocatemagazine.com/serviced-apartments 30 | Re:locate Europe | Spring 2015

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EMEA CONFERENCE

HOW TO BE SEEN AND HEARD BY LEADERSHIP At Worldwide ERC’s EMEA global workforce summit in London, two organisational global mobility professionals reported on how they ensure top management knows what they do and how they add value to their organisations. Sue Shortland reports on the experiences of Lloyd’s Register and E.ON and their tips for success.

eing an influential stakeholder in organisations today involves negotiating a political minefield. Gaining leadership buy-in to initiatives isn’t as straightforward as it sounds, as it will typically require influencing a long list of individuals. Identifying these stakeholder groups and the key people within them (such as business leaders, home/host country managers and assignees) is the first step in the process. It is important to remember that each will have different understandings, objectives and demands. To make it even more complex, these can overlap, creating conflicts of interest. The top managers of today were probably the assignees of yesteryear, given the use of expatriation as a leadership development tool. It is important to be aware of this when trying to overcome pushback from current and former expatriates. Communication is the key, and, while face-to-face might be best, it is not always practical – but alternatives such as webinars can help to involve people in each region and business stream. There is much debate about return on investment (ROI) and how to measure and improve it. One of the key problems that the mobility function faces is in justifying its value and the contribution it makes to organisational success. ROI is usually calculated as a function of output for costs incurred. While organisations are getting better at measuring costs (for example, salaries and expenditures), this is only part of the measure. Output can be difficult to define, let alone quantify. A potential way forward is to measure ROE (return on expectations) instead – that is, ‘we spent this to achieve this’. An ROE measure can be more easily connected to the higher business purpose. For instance, mobility management can be linked to taglines that the organisation is already committed to, such as talent development and skillset resourcing.

Raising the profile of mobility It is crucial to carve out the time to talk about global mobility, and to make links with centres of excellence within the organisation. For example, at E.ON, elements of preparation and pre-departure training are managed within the Learning Centre of Competence. Ensuring sound links with such in-house centres enables greater buy-in to the objectives of the mobility professional because it is likely that the other organisational representatives are trying to achieve similar objectives. This can help to generate a culture of co-operation and facilitation. The mobility function might also make good use of its relationships with external service centres – such as those of its vendors – to find out, for example, where assignees are routinely unhappy with elements of policy.

Communication is the key, and, while face-to-face might be best, it is not always practical – but alternatives such as webinars can help to involve people in each region and business stream. Vendors are likely to be dealing with employee issues more frequently than in-house mobility professionals. Their insight can help to tailor policy provision for greater efficiency and effectiveness, leading to a smoother and more productive assignee mobility programme and consequent productivity improvements. Where possible, if savings made can be demonstrated to outweigh any investment, this adds credibility to the mobility function. The degree to which the mobility function is – or wants to be – involved in strategic decision-making is debatable, as the role primarily concerns operationalising strategy rather than devising it. This means that the practicalities of delivering mobility remain crucial to the function’s success. Delivering ‘the yawn’ – the very basics – and getting them right is a requirement. Top management will not give the mobility function the opportunity to become involved in strategic decision-making if its functional expertise does not underpin global assignment management so that it runs like clockwork. That does not mean, though, that mobility professionals cannot expand their remit and take on more strategic initiatives. To raise their game to this level, it is important to benchmark and keep ahead in terms of knowledge management, and to use this to devise and deliver arguments for change that cannot be denied.

FINAL TIPS FOR SUCCESS? Mobility professionals must: • Know their organisations; any

proposals made must be relevant to context and climate

• Know their audience and all the stakeholder groups within it • Know the business case and be able to sell the positive benefits

32 | Re:locate Europe | Spring 2015

• Know their numbers (using data to make a sound case) • Listen to stakeholders’ views (while sticking to their guns) • Think commercially – and make sure their initiatives will add value

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EMEA CONFERENCE

l l e k s a G n i v e K on aiming high – and

extraordinary results “Let’s think and dream at a different level – aim high, and dream about transformation and 500 per cent change.”

Kevin Gaskell’s keynote speech at Worldwide ERC’s EMEA conference inspired his audience to unlock the passion and commitment that drive engagement and enable ordinary people to achieve extraordinary results. Fiona Murchie reports.

evin Gaskell was appointed managing director of Porsche GB at the age of 32. In five years, his team rebuilt the brand and turned a business close to bankruptcy into the UK’s most profitable car company. Mr Gaskell moved to BMW, where he led the company to four years of record growth and a 500 per cent increase in profitability. He left BMW to set up a dotcom in automotive e-commerce, which he later sold. He now acts as an investor and chairman to a number of growing companies. Kevin Gaskell has been an international cricketer, taken part in skydives, and played in a rock band. He celebrated his 40th birthday by climbing Mount Everest. So far, so superhero! But his passion, which he mentions in an understated way, has been walking to both the North and South Poles and climbing some of the world’s highest mountains to fund the building of a cancer treatment centre. That is the essence of his leadership success. It is not about what drives and inspires, but who drives and inspires. It is truly all about engagement and how to get ordinary people to achieve extraordinary results. Unlocking the passion will bring the results. Human beings are emotional, belief is about a dream, and, when things get tough,

you need to look deep inside yourself. Motivational speeches about conquering mountains or rowing across oceans can be inspiring, but it is really the hands-on experience of leading teams on the small scale, as well as the huge successes, that inspires the most. It’s the human stories that make the difference, and the humanity you can believe in. I think Kevin Gaskell took a lot of the audience with him on that journey. The garden centre turnaround was as impressive as the renaissance of the boat builder. There would be a lot of people pondering ‘what’s my dream, and what can we achieve together?’ Committing and aiming high raises the bar and can bring about transformational change. Yes, you need the plan, and yes, you need bite-sized pieces to make the messages

really simple, but, as Kevin Gaskell says, “Let’s think and dream at a different level – aim high, and dream about transformation and 500 per cent change.” It can certainly be scary, like a parachute jump for the first time, but you need to act quickly and be prepared to learn from your mistakes. Getting the best people is crucial. Find those people, listen to them, and create the opportunity to do great work, and they will come to you with great ideas – and it’s fun. His approach was demonstrated by a photograph of a pinboard covered in brown paper covered with post-it notes containing the ‘ideas’ – a simple mechanism for capturing ideas and moving them forward. Everyone contributes, and suppliers are invited to participate, too.

Leadership is about giving away power and creating a culture that lets people run. Talk about 1,000 days rather than a three-year plan, and make every day count to drive the project forward. These were practical tools and techniques for anyone to take away. In your business plan, you can prepare for the dangers, and it is important to sit down and have that conversation, but you also have to have lots of conversations about what success looks like. Draw a straight line to what you want to achieve, and don’t get buffeted from your course. ‘Stuff ’ inevitably happens along the way, and you can deal with it as it comes up.

A simple structure of six boxes representing the big areas that are going to change is all you need. Make it clear what people are responsible for and accountable for, and you will be astonished at how far they will go, he claims. Set the direction, and be clear about what the goal looks like. Leadership is about giving away power and creating a culture that lets people run. “My job is to believe what we can do and inspire people so they can achieve it and achieve extraordinary results,” Kevin Gaskell concluded. See you at the top of the mountain!

For leadership and management news and articles visit relocatemagazine.com/leadership-management 34 | Re:locate Europe | Spring 2015

SECTION HEADING

Your global connection...

... reaching over

145 countries

A host of online and digital information and support for HR, global mobility managers, global teams and those relocating, operating in or setting up new operations overseas.

To view up-to-the-minute industry news and the latest edition of Re:locate magazine, visit

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