Issuu on Google+

2013 Talent Management Trends Review


Table of Contents Introduction and Objectives ……………………………………………………………………..

3

Global Mobility Trends ………………………………………………………………………………..

5

Global Mobility ………….……………………………………………………………………………….. 6 Employee Demographics …………………………………………………………………………….. 8 Company Policy …….…..……………………………………………………………………………….. 9 Cross-Cultural Preparedness ……………………………………………………………………….. 10 Assignment Challenges ……………………………………………………………………………….. 11 Employee Satisfaction …………………………………………………………………………………. 14

Domestic Mobility Trends ……...…………………………………………………………………..

15

Domestic Migration ……………………………………………………………………………………. 16 Domestic Mobility ………………………………………………………………………………………. 17 Company Policy ………………………………………………………………………………………….. 19

Human Resources Trends …………………………………………………………………………..

25

Company Policy ………………………………………………………………………………………….. 26 Human Resources ..…………………………………………………………………………………….. 27

2013 Talent Management Trends Review

1


Introduction and Objectives Global mobility and talent management can be complex and seemingly ever-changing topics. The issues in our field are constantly in flux, but still need to be studied given how much they impact our industry. Fortunately organizations such as SHRM, Worldwide ERC and others take the time to analyze these industry motivators, detailing their findings in annual reports and white papers. The problem is there are a lot of these reports, and each one isn’t exactly a quick read. At Hilldrup, it’s our goal to help you stay informed of these trends so you can help your organization navigate the changes impacting the relocation industry. But instead of adding to an already tall stack of documents, we decided to do something different. Following is the 2013 Hilldrup Talent Management Trends Review – a visual snapshot of all the different studies and reports of the main findings so you can stay informed, only having to use one quick reference tool. Some of the issues we address include: 

What are the top growth markets where people are relocating?

What are the main reasons employees are reluctant to relocate?

What are the top five cost-cutting strategies around relocation programs?

Which countries have the most assignment failure?

What are the most common ways companies are providing family assistance?

What are the most common challenges for families with international assignments?

What are the top six reasons international employees leave their position?

We hope this report is informative and gives you a better understanding of the issues affecting the success of your organization’s relocation assignments. Please note each chart is referenced in case you would like to learn more than what we’ve captured. If there are any questions concerning the report, or if additional information is desired, please feel free to contact your Hilldrup Client Services Team and we will be happy to assist you.

2013 Talent Management Trends Review

3


Global Mobility Trends


Global Mobility Top 10 Emerging Global Market Countries

1

1. China 2. Brazil 3. India 5 10

3

4. Singapore

7

1

5. United States

8

6. Australia

4

9

7. South Korea

2 6

8. Vietnam 9. Colombia 10. United Arab Emirates

International Employee Population Growth

1

The international employee population continues to grow for a third year in a row, and most companies are projecting continued growth. 63% of companies reported an increase in 2012. Increased (63%)

Stayed the Same (28%)

52% of companies are projecting an increase in 2013.

2013

2012 Decreased (9%)

6

Increase (52%)

Stay the Same (35%)

Decrease (13%)

Global Mobility Trends 1. Brookfield Global Relocation Services • Global Relocation Trends Report, 2013 Survey Report • (2013) • Pg. 35, 40


Global Mobility Countries with the Highest Rate of Assignment Failure 4. United States

1

3. Russia

Respondents cited difficulty with immigration regulations, taxation and difficulty obtaining transportation without credit.

Respondents cited immigration complexities and challenges with cultural adaptations.

1. China 5. Brazil Respondents cited difficulty with immigration regulations, taxation and difficulty obtaining transportation without credit.

Respondents cited quality of life issues, and challenges with cultural and family adaptation.

2. India Respondents cited quality of life issues, and challenges with cultural and family adaptation.

Emerging Markets Employees are Looking to Enter

2

And Ones They are Trying to Avoid Companies were asked to rank which emerging markets their employees showed the most and least interest in.

Top 5 Countries with the Most Employee Interest

Top 5 Countries with the Most Employee Resistance

Brazil (46%)

India (39%)

United Arab Emirates (37%)

China (32%)

China (26%)

Nigeria (19%)

India (17%)

Saudi Arabia (18%)

South Africa (16%)

Russia (17%) 7

Global Mobility Trends 1. Brookfield Global Relocation Services • Global Relocation Trends Report, 2013 Survey Report • (2013) • Pg. 13, 72 2. Cartus • Talent management and the Changing Associate Profile, 2013 Survey Report • (2013) • Pg. 5


Employee Demographics Employee Demographic Snapshot

1,2

The international employee population has remained fairly consistent over the last decade.

11% of current international employees are new hires.

Less than 35 24%

55 Plus 20%

Age

22% of international employees had previous international experience. *The historic average is 26 %.

35-49 56%

Married on Assignment with Family 49%

Single 29% Family Status

Married on Assignment as Single Status 22%

79% of international employees are male. Important Trend!1 While the number of married / partnered employees has remained historically consistent, we have seen a 7% increase in married / partnered employees who choose to go on single status long-term assignments. Additionally, the number of long-term employees who choose not to relocate with their children remains at a historically low 43%. This may indicate concerns among employees about economic stability and the need to maintain their partners income. Companies may need to address changes to employee benefits that may not be needed or inadequately address the needs of split families.

8

Global Mobility Trends 1. Brookfield Global Relocation Services • Global Relocation Trends Report, 2013 Survey Report • (2013) • Pg. 35, 36 2. Cartus • Talent management and the Changing Associate Profile, 2013 Survey Report • (2013) • Pg. 7


Company Policy Cost Reduction

1

Among companies looking to reduce the size of their relocation program or otherwise cut costs, respondents were asked to rank their:

Perceived Benefits of Outsourcing

Top 5 Cost Reduction Strategies

17% Reduced Staff

Policy Components Offered to Employees (23%)

15% Better Supply Chain Management 14% Ability to Identify Assignment Costs

Vendor Fees (18%)

13% Obtain Specialized Expertise

More Care in Selecting the Right Candidate (15%)

8% Better Compliance 7% Reduced Costs

Increased Reliance on Short-term Assignments (8%)

7% Process Improvements 6% Better Service Quality

Increased Reliance on Local Hiring (8%)

6% Better Reporting Capabilities 5% Consistent Application of Policy Conditions

Top 5 Skills Companies Seek when Selecting an International Employee

22

1

Leadership Potential

80%

Technical Skills

75%

Flexibility to Adapt

Desire to Advance

Ability to Work Independently

71%

63%

57%

Special Note: 68% of companies reported that family status was not taken into account when selecting an employee for international assignment. 9

Global Mobility Trends 1. Brookfield Global Relocation Services • Global Relocation Trends Report, 2013 Survey Report • (2013) • Pg. 55, 87, 2. Cartus • Talent management and the Changing Associate Profile, 2013 Survey Report • (2013) • Pg. 5


Cross-Cultural Preparedness Training

1

83% of companies provided formal cross-cultural preparation. Of the companies that offer cross-cultural training:

46% Offer it to the Entire Family

50% of companies offer media or web-based training.

41% Offer it to the Employee + Spouse 27% Make it Mandatory for the Employee

As opposed to 36% in 2012.

8% Offer it to the Employee Alone

85% of employees rated their cross-cultural training as having a „Good or Great Value‟.

Family Assistance Spousal Assistance

Elderly Assistance

The most common types of spousal assistance provided include:

8% of companies offer assistance for elderly family members; the most common types of assistance are:

72%

Language Training

29%

Career Planning Assistance

28%

Education / Training

26%

10

1

89%

Relocation to Assignment

22%

Visit to Member in Home Country

11%

Elder-care at Assignment Location

Sponsor Spousal Work Permit

Global Mobility Trends 1. Brookfield Global Relocation Services • Global Relocation Trends Report, 2013 Survey Report • (2013) • Pg. 29


Assignment Challenges Top 10 Assignment Management Challenges

1

Companies were asked to rank their most common assignment challenges; the top challenges cited were: Cost of Assignment

17%

Finding Suitable Candidates

13%

Retention of Repatriating Employees

13%

Controlling Policy Exceptions

12%

Career Management

8%

Inability to Use Experience Upon Reparation

8%

Compliance

6%

Complex Administration Program

3%

Return on Investment

3%

Reluctance of Employees to Relocate

3%

Top 5 Reasons Candidates Turn Down an Assignment 35%

Family Concerns

18%

Inadequate Compensation

17%

Spouse's Career

11%

Assignment not Meeting Employees Career Aspirations

8%

Quality of Life at Location

1

11

Global Mobility Trends 1. Brookfield Global Relocation Services • Global Relocation Trends Report, 2013 Survey Report • (2013) • Pg. 56, 60


Assignment Challenges Top 6 Reasons Employees are Leaving Their Posts Transfer to a New Position in a Company

25%

Family Concerns

23%

Early Completion of Assignment

21%

Cultural Adjustment Challenges

8%

Career Concerns Security Concerns

1

4% 2%

Attrition Timing and Employee Turnover

1

75% of employees leave a company within two years of returning from an overseas assignment.

Return Attrition Respondents were asked how long an employee remained with a company after returning from an overseas assignment.

Less Than 1 Year 31%

Left While on Assignment 22%

Over 2 Years 24%

12

Between 1 - 2 Years 23%

Top 3 Ways Companies are Seeking to Minimize Turnover 28% Provide employees with ways to use their international experience. 16% Provide greater recognition during and after the assignment. 11% Guarantee a position upon completion of the assignment.

Global Mobility Trends 1. Brookfield Global Relocation Services • Global Relocation Trends Report, 2013 Survey Report • (2013) • Pg. 14, 23, 66


Assignment Challenges Critical Family Challenges

1

Companies where asked to list the top family challenges they faced when filling international assignments. Spouse / Partner Resistance

46%

Family Adjustment

43%

Children’s Education

31%

Spouse / Partner Career

24%

Location Difficulties Cultural Adjustment

21% 11%

Length of Assignment

9%

Inability to Speak Language

9%

Important Note!

1

Tax Liability for Long-term Assignments When asked about the approach taken for international employees' host country income tax liabilities for long-term assignments, an overwhelming

84% of respondents reported using the tax-equalization approach.

13

Global Mobility Trends 1. Brookfield Global Relocation Services • Global Relocation Trends Report, 2013 Survey Report • (2013) • Pg. 59, 84


Employee Satisfaction Top 4 Reasons Employees Accept an Assignment

85%

Personal PersonalCareer CareerDevelopment Development 70%

Considered Necessaryfor forAdvancement Advancement Considered Necessary

AttractiveCompensation Compensation Attractive

Sprirtof of Adventure Adventure Spirit

1

34%

27%

Career Impact

1

When international employees were asked if they agreed with the statement,

“The impact of an international assignment was a positive career move.” Disagree 1%

Strongly Agree 38%

Neutral 17%

Somewhat Agree 44%

14

82% of employees reported their international assignment had a positive impact on their careers - that’s a 30% increase over the past 3 years!

Global Mobility Trends 1. Cartus • Talent management and the Changing Associate Profile, 2013 Survey Report • (2013) • Pg. 11, 15


Domestic Mobility Trends


Domestic Migration States with the Highest Inbound/Outbound Migration States with Higher Inbound Migration

States with Higher Outbound Migration

1

Balanced

The District of Columbia was the top moving U.S. destination for the 5th year in a row.

16

Top 5 Inbound States:

Top 5 Outbound States:

1. District of Columbia

1. New Jersey

2. Oregon

2. Illinois

3. Nevada

3. West Virginia

4. North Carolina

4. New York

5. South Carolina

5. New Mexico

Domestic Relocation Trends 1. United Van Lines • United Van Lines 2012 Migration Study • (2013)


Domestic Mobility Rent vs. Sell

1

With some uncertainty still looming in the housing market, the number of people choosing to rent instead of buying or selling a home continues to rise. Companies were asked whether they have seen a change in homeowner employees reluctance to buy or sell a home over the last three years.

Homeowning Employees Choosing to Rent in their New Location vs. Buy a Home

Homeowning Employees Choosing to Rent in their Old Location vs. Buy a Home

Somewhat of an Increase (47%)

No Discernable Change (41%)

Don‟t Know (5%)

New Home

No Discernable Change (33%)

Old Home

Decrease (3%)

Significant Increase (12%) Don‟t Know (2%) Somewhat of an Increase (39%)

Significant Increase (18%)

Important Trends!

2

Loss-on-Sale Assistance With fluctuations in the real estate market, there has been an increase in the number of organizations offering loss-on-sale assistance through both formal programs (49%) and on a case-by-case basis (14%).

Purchase Closing Cost While the percentage of firms offering assistance with purchase closing cost is 90%, only 23% of companies provide this assistance to all employees. 17

Domestic Relocation Trends 1. Worldwide Employee Relocation Council • 2013 Worldwide ERC® U.S. Transfer Volume & Cost Survey • (2013) • Pg. 17 2. Worldwide Employee Relocation Council • Relocation Assistance: U.S. Domestic Transferred Employees • (2013) • Pg. 8


Domestic Mobility Reluctance to Relocate Employee reluctance to relocate has decreased 15%.

1

Decreased Resistance 15%

As the housing market continues to stabilize, more employees are willing to relocate. Although, housing issues still remain the primary concern among employees who are resistant to relocating.

Increased Resistance 11%

No Change 74%

Top 6 Reasons Employees are Reluctant to Relocate Current Home in a Negative Equity Situation

84% [ERC] 77%

Depressed Housing Market in Current Location

Employee / Family Resistance to Move

High Cost of Living Area

18

2

47%

31%

Spouse's Reluctance to Leave Their Job

29%

High Cost of Housing in New Location

29%

Domestic Relocation Trends 1. Atlas Van Lines • 46th Annual Atlas Corporate Relocation Survey • (2013) • Pg. 24 2. Worldwide Employee Relocation Council • 2013 Worldwide ERC® U.S. Transfer Volume & Cost Survey • (2013)•Pg. 11


Company Policy Responsibilities of an Internal Relocation Department Develop Relocation Policy

1

78%

Manage Domestic Relocation Programs

75%

Control Household Goods Carrier Selection

64%

Control Additional Relocation Services

51%

Manage International Relocation Program

42%

Control Freight Carrier Selection

23%

Handle Air Travel (via Commercial Airlines)

22%

Important Note!

Handle Office Relocations Control Air Carrier Selection

17% 12%

Tiered Relocation Policies

84% of companies have a formal relocation policy!

1

75% of companies with a centralized relocation department utilize a tiered relocation policy.

Number of Tiers in an Organization

Top Criteria Used to Create Tiers Job Grade or Level

Four or More Tiers 31%

Three Tiers 27%

No Tiers 25%

Two Tiers 17%

73%

Homeowner Renter Status

45%

Position or Job Title New Hire or Current Employee

35%

29%

19

Domestic Relocation Trends 1. Atlas Van Lines • 46th Annual Atlas Corporate Relocation Survey • (2013) • Pg. 29, 30


Company Policy Average Relocation Cost

1

Current Employee Homeowner

$91,528

New Hire Homeowner

$71,786

Current Employee Renter

New Hire Renter

$24,714

Important Trend! The average home sale assistance cost over the last year was close to $45,000.

$22,493

That’s approximately $5,000 more than the previous year.

Home Sale Assistance

1

The 4 Largest Relocation Component Costs $44,685

Average Per Move Cost

$29,636

$14,913

Homesale Assistance 20

Loss-on-Sale Assistance

Federal Tax Liability

$12,459

Shipping Household Goods

Domestic Relocation Trends 1. Worldwide Employee Relocation Council • 2013 Worldwide ERC® U.S. Transfer Volume & Cost Survey • (2013) • Pg. 13, 14, 15


Company Policy Home Purchase Programs

1

Buyer Value Option 29% Assigned Sale 1%

Amended Value Transactions 40%

Appraised Value 30%

Types of Properties Excluded from Home Sale Programs

2

As is common with home buy-out programs, certain types of properties are often excluded. 94%

88%

56% 48% 23%

Mobile Homes

Co-ops

Duplexes

Large Properties (5+ acres)

Other

21

Domestic Relocation Trends 1. Worldwide Employee Relocation Council • 2013 Worldwide ERC® U.S. Transfer Volume & Cost Survey • (2013)• Pg. 20 2. Worldwide Employee Relocation Council • Relocation Assistance: U.S. Domestic Transferred Employees • (2013) • Pg. 9


Company Policy Formal Home Marketing Assistance

1

Nearly 90% of organizations offer their employees either a corporate-based home purchase program or a 3rd-party plan.

Not Offered 14% Yes, But Only for Certain Employees 11%

Yes, Always Offered 75%

Coverage of Home Finding Costs

1

Companies where asked whether or not they reimbursed for home finding trips, and if so, did that cover expenses for a spouse / partner.

22

86%

11%

3%

Reimburse Trip Cost for Employees & Spouse / Partner

Do Not Reimburse Trip Cost

Reimburse Trip Cost for Employees Only

Domestic Relocation Trends 1. Worldwide Employee Relocation Council • Relocation Assistance: U.S. Domestic Transferred Employees • (2013) • Pg. 7, 10


Company Policy Incentives Offered to Potential Employees

1

76% of companies surveyed offered additional incentives to encourage employees to relocate. Extended Temporary Housing

71%

Relocation Bonuses

48%

Loss-on-Sale Protection

38%

Cost-of-Living Adjustments

37%

Extended Duplicate Housing Benefits

32%

Telecommuting Mortgage Payoff / Loan

15% 13%

Guarantee of Employment Contract 7%

Incentive Program Results How often did the above incentive encourage an employee to relocate? Seldom 10% Almost Always 37% Frequently 53%

23

Domestic Relocation Trends 1. Atlas Van Lines • 46th Annual Atlas Corporate Relocation Survey • (2013) • Pg. 24


Company Policy Coverage of Employee Relocation

1

93% of companies surveyed do not have dollar caps on the shipment of household goods.

90% of companies surveyed do not impose weight limits.

Types of Assistance Provided to Employees

1

100%

94%

38%

24%

Shipment of Household Goods

Storage

Additional Liability Coverage

Transportation of Recreational Vehicles

24

Domestic Relocation Trends 2. Worldwide Employee Relocation Council • Relocation Assistance: U.S. Domestic Transferred Employees • (2013) • Pg. 6


Human Resources Trends


Company Policy Trends Human Resources Role in Global Mobility Strategy

1

How are global mobility management teams and human resource departments working together to respond to a companies global mobility talent strategy:

Incorporating Assignment Objectives Incorporate Assignment Objectives Into Performance Reviews

62%

into Performance Reviews

Collaborating with HR totoEnsure Collaborate with HR EnsureAll AllEmployees Assignees Performance Ratings are Considered Performance Ratings are Considered

60%

Maintaining a Global Posting Process for Employees

Maintain a Global Posting Process for Assignees

39%

TrackPost PostAssignment Assignment Retention Retention Tracking

Maintaining a Global Pool Maintain a Global Talent PoolTalent for Future Assignments for Future Assignments

Track Post Post Assignment Assignment Advancement Advancement Tracking

26

21%

20%

14%

Human Resources Trends 1. Cartus • Talent management and the Changing Associate Profile, 2013 Survey Report • (2013) • Pg. 16


Human Resources Mobility Trends Forecast: the Decade Ahead

1

Top 3 Challenges Facing HR Retaining and rewarding the best employees. Developing the next generation of corporate leaders. Creating a corporate culture that attracts employees.

Top 4 Tactics to Attract, Retain and Reward the Best Employees. Providing flexible work arrangements. Promoting a culture of trust, open communication and fairness. Providing employees with opportunity for advancement. Offer a higher total rewards package than competitors.

Important Note! The top investment challenge for companies over the next decade will be obtaining human capital and optimizing human capital investments, as cited by 43% of respondents in a random sampling of HR professionals.

27

Human Resources Trends 1. Society for Human Resources Management • Challenges Facing HR over the Next 10 Years • (2012) • Pg. 2, 5, 9


Human Resources Mobility Trends Forecast: the Decade Ahead

1

How are human resources professionals expecting the workforce to evolve over the next decade? Expect Their Organization to Have a Larger Workforce

69%

Expect the Number of Temporary and Contract Employees to Remain the Same

54%

Expect a Greater Number of Full-time Employees Believe the Workforce Will Remain the Same Expect to Have More Part-time Employees

28

47%

27% 26%

Human Resources Trends 1. Society for Human Resources Management • Challenges Facing HR over the Next 10 Years • (2012) • Pg. 2


Corporate Headquarters 4022 Jefferson Davis Highway Stafford, VA 22554 (800) 476-6683 www.hilldrup.com


Hilldrup's 2013 Talent Management Trends Review