Presentation to: Annual ING LatAm & EMEA Financial Conference
2013 EMEA EXPATRIATE MANAGEMENT CONFERENCE
Transcript of 2013 EMEA EXPATRIATE MANAGEMENT CONFERENCE
DUAL CAREER ISSUES AND FAMILY SUPPORT
11 APRIL 2013
Ellyn Karetnick and Kate Fitzpatrick
Mercer, London
MERCER
Dual Career Issues and Family Support Agenda
• How are we defining dual career and family support?
– Spouse/partner career continuity and development
– Financial impact of assignments on dual income households
– Accompanying family considerations
– Non-accompanying family and carer responsibilities
• Key challenges and trends within each of these four areas
• Practical strategies that can encourage positive experiences and
outcomes for internationally mobile employees and their families
MERCER
Spouse/Partner Career Continuity and Development Poll Question
Thinking about your global mobility population, how many
assignees have spouses/partners who work in the home
location?
• Less than 50%
• 51-75%
• Over 75%
MERCER
Spouse/Partner Career Continuity and Development Workforce Participation Trends
Country Score Rank Country Score Rank
Mongolia 0.8387 1 Denmark 0.7724 16
Bahamas 0.8359 2 Philippines 0.7719 17
Burundi 0.8322 3 Gambia, The 0.7716 18
Norway 0.8300 4 Kazakhstan 0.7675 19
Malawi 0.8224 5 Latvia 0.7618 20
Lesotho 0.8163 6 Moldova 0.7608 21
Luxembourg 0.8147 7 Australia 0.7593 22
United States 0.8143 8 Benin 0.7591 23
Mozambique 0.7988 9 Netherlands 0.7578 24
Sweden 0.7957 10 Lithuania 0.7551 25
Barbados 0.7905 11 Ghana 0.7543 26
Canada 0.7877 12 Iceland 0.7540 27
Singapore 0.7876 13 Switzerland 0.7518 28
Finland 0.7847 14 Ireland 0.7514 29
New Zealand 0.7822 15 Brunei 0.7403 30
Economic Participation and Opportunity Rankings, 2012
Source: The Global Gender Gap Report, World Economic Forum 2012
MERCER
Spouse/Partner Career Continuity and Development Workforce Participation Trends
Country Score Rank Country Score Rank
Iceland 0.8640 1 Latvia 0.7572 15
Finland 0.8451 2 Luxembourg 0.7439 17
Norway 0.8403 3 United Kingdom 0.7433 18
Sweden 0.8159 4 Austria 0.7391 20
Ireland 0.7839 5 Spain 0.7266 26
Denmark 0.7777 7 Lithuania 0.7191 34
Switzerland 0.7672 10 Slovenia 0.7132 38
Netherlands 0.7659 11 Moldova 0.7101 45
Belgium 0.7652 12 Portugal 0.7071 47
Germany 0.7629 13 Croatia 0.7053 49
Top 20 European Country Rankings
Source: The Global Gender Gap Report, World Economic Forum 2012
MERCER
Spouse/Partner Career Continuity and Development Talent and Skills Gap
Talent Employers
There is a clear mismatch between
What’s
IN DEMAND and
What’s
AVAILABLE in the global talent pool
Talent & Skills Gap
24 million
unemployed in EU
13.3 million unemployed in
US
205 million unemployed
globally
6 million job vacancies in EU
3.3 million
job vacancies in US
Globally 34% of employers can’t fill available jobs
Source: U.S. Department of Labor – Bureau of Labor Statistics; 2011 Gallup Employment Survey; Manpower Group’s 2011 Talent Shortage Survey
MERCER
Spouse/Partner Career Continuity and Development Right to Work
‘Open’ Work Permit ’Simple’ Work Permit
Linked to Employer
‘Complex’ Work Permit
Linked to Employer
Can work for any employer
or be self-employed
Simple process or letter of
consent on offer of employment
No employment market test
Procedure < 4 weeks
Skills or employment market
test and/or quotas
May need to return to home
country
Procedure > 4 weeks
Countries include:
• Europeans in EU/EAA
(excl. Bulgaria, Romania)
• Australia
• Canada
• Hong Kong
• US (L and E visas)
Countries include:
• Japan (PT only)
• Malaysia
• Mexico
• Singapore
Countries include:
• China
• India
• Philippines
• Poland
• Taiwan
Source: The Permits Foundation, 2012
MERCER
Financial Impact of Assignments on Dual Income Households Poll Question
To what extent do you believe it is the responsibility of the
assignee’s employer to financially compensate for loss of
spouse/partner income for the duration of an assignment?
• Entirely
• Somewhat
• Not at all
MERCER April 12, 2013
Financial Impact of Assignments on Dual Income Households Current Policy and Practice Trends
Do you have a written policy on spouse support for your typical long term assignees?
World-
wide
North
America
Latin
America
Europe Asia
Pacific
We have a corporate policy that provides
general guidelines on the support or
benefits to be provided to the
accompanying spouse/partner
37.5% 37.6% 23.5% 51.9% 15.6%
We do not have a policy on spouse/partner
support but we are developing one or
planning to develop one
3.1% 2.4% - 3.8% 5.5%
We do not have a policy; spouse support
issues are generally handled case-by-case
11.8% 13.9% 14.7% 9.5% 9.2%
We do not have a policy on spouse/partner
support nor do we address the issue
43.6% 41.7% 61.8% 29.5% 67.9%
Other 4.0% 4.4% - 5.2% 1.8%
Source: Mercer Worldwide Survey of International Assignment Policies and Practices, 2012
MERCER
Financial Impact of Assignments on Dual Income Households Beyond Salary
UK China USA Sweden
Unemployment Benefits
State Retirement Benefits
State Retirement Benefits
State Retirement Benefits
State Retirement Benefits
State Medical Benefits
Maternity/Paternity Benefits
Unemployment Benefits
State Medical Benefits
Maternity/Paternity Benefits
State Medical Benefits
Maternity/Paternity Benefits
Unemployment Benefits
State Medical Benefits
Maternity/Paternity Benefits
Unemployment Benefits
MERCER
Financial Impact of Assignments on Dual Income Households Assignment Costs, Benefits and Transparency
N.B.: Representative
sample only
MERCER
Accompanying Family Considerations Poll Question
How do you define ‘family’ within your international
assignment policies for the purposes of providing benefits?
• Spouse/partner and dependent children
• Spouse/partner, dependent children and other persons living
with and financially supported by the assignee
• Family not defined
MERCER April 12, 2013
Accompanying Family Considerations Current Policy and Practice Trends: Pre-Assignment Support
What types of support do you typically provide to assignees?
World-
wide
North
America
Latin
America
Europe Asia
Pacific
Formal home finding assistance 80.4% 85.9% 73.5% 83.1% 61.3%
Official support / visas provided by the Company 78.0% 80.2% 64.7% 85.5% 61.3%
Formal school-finding assistance 70.9% 76.6% 61.8% 73.9% 53.8%
Formal settling-in assistance 60.1% 69.1% 38.2% 62.3% 37.7%
Support with opening a bank account 59.9% 64.0% 50.0% 67.6% 38.7%
Support with opening utilities account 52.9% 59.8% 26.5% 59.4% 28.3%
Informal local support 42.5% 44.1% 52.9% 44.4% 32.1%
Introduction to other international assignees at
host
16.4% 15.3% 23.5% 15.5% 17.9%
Membership to sports/fitness clubs 6.2% 8.1% 8.8% 4.3% 1.9%
An allowance to cover destination services
(separate from a miscellaneous relocation
allowance)
6.1% 7.5% 8.8% 2.9% 7.5%
Membership to private social club 4.6% 4.8% 8.8% 4.8% 2.8%
None of the above 3.2% 2.1% - 1.4% 10.4%
Other 3.2% 1.8% 8.8% 3.4% 5.7%
Source: Mercer Worldwide Survey of International Assignment Policies and Practices, 2012
MERCER
Do you provide education benefits for children of long term assignees?
World-
wide
North
America
Latin
America
Europe Asia
Pacific
Yes, we always cover education costs 46.6% 39.9% 62.9% 54.2% 49.5%
Yes, but only if local public education is
not considered suitable
36.5% 44.5% 14.3% 32.7% 30.6%
We do not have a defined policy and
handle these matters case-by-case
7.6% 8.3% 2.9% 6.5% 7.2%
No, we never do 4.0% 3.2% 5.7% 1.9% 7.2%
Other 5.3% 4.0% 14.3% 4.7% 5.4%
Accompanying Family Considerations Current Policy and Practice Trends: Education
Source: Mercer Worldwide Survey of International Assignment Policies and Practices, 2012
MERCER
Accompanying Family Considerations Current Policy and Practice Trends: Day Care
Do you pay for day care assistance in the host country?
World-
wide
North
America
Latin
America
Europe Asia
Pacific
Yes, we pay for day care costs with no limit 1.4% 1.5% - 1.9% 0.9%
Yes, we pay for day care costs up to a limit 3.6% 1.2% 3.0% 9.1% 0.9%
We handle case-by-case 7.6% 8.3% 6.1% 7.7% 6.5%
Current policy does not address this
situation
10.1% 9.2% 15.2% 11.5% 9.3%
No, we do not pay for day care 77.3% 79.8% 75.8% 69.9% 82.4%
Source: Mercer Survey of International Assignment Worldwide Policies and Practices, 2012
Source: Mercer Worldwide Survey of International Assignment Policies and Practices, 2012
MERCER
Accompanying Family Considerations Current Policy and Practice Trends: Day Care
Source: Mercer Survey of International Assignment Worldwide Policies and Practices, 2012
If you pay for day care costs up to a limit, please specify.
World-
wide
North
America
Latin
America
Europe Asia
Pacific
Fixed amount 8.7% - - 5.6% -
Only as a differential to home country
costs
47.8% - - 44.4% -
Only if partner works 8.7% - - 11.1% -
Other 34.8% - - 38.9% -
Source: Mercer Worldwide Survey of International Assignment Policies and Practices, 2012
MERCER
Non-Accompanying Family and Carer Responsibilities Poll Question
Do your global mobility policies support assignees with non-
accompanying family members and/or carer responsibilities
for family members remaining in the home location?
• Yes, we support non-accompanying immediate family
members (eg. spouse/partner and dependent children)
• Yes, we support non-accompanying dependent family
members (eg. spouse/partner, dependent children, and other
dependent adults such as elderly relatives)
• No support for non-accompanying family members is provided
MERCER
Non-Accompanying Family and Carer Responsibilities Current Policy and Practice Trends Which of the following best describes your definition of ‘family’ (for the purposes of
assignment related allowances?
World-
wide
North
America
Latin
America
Europe Asia
Pacific
Spouse/partner and legal dependant-
aged children
46.9% 50.3% 37.1% 42.0% 45.4%
Spouse/partner and dependent children
at school
12.9% 7.4% 11.4% 20.8% 14.8%
Spouse/partner and dependent children
at school or attending college or
university at the undergraduate level
19.5% 18.6% 25.7% 19.8% 22.2%
Spouse/partner, dependent children, and
other persons living with and supported
by the assignee
9.0% 9.5% 8.6% 11.3% 4.6%
We do not define family 11.7% 14.2% 17.1% 6.1% 13.0%
Source: Mercer Worldwide Survey of International Assignment Policies and Practices, 2012
MERCER
Practical Strategies Creativity and Flexibility in Role Structure & Policy Segmentation
• Test your assignment business case
• Consider alternative policy types
• Explore other benefits within existing policies
• Differentiate the level of spouse/partner support provided based
on the assignment business value
MERCER
Segmentation by purpose reflects how assignments differ by business and development value and helps prioritize investment
Talent segmentation by primary business purpose clarifies how the assignment meets a business need, why people are being moved andhow different groups need to be managed, rewarded and retained
High
Hig
h
Low
Lo
w
Strategic Business Leaders
Fill mission-critical roles and deliver
specific, strategic business results.
Emerging/ High Potential Talents
International learning and development to
grow the next generation of leaders
Career-Building Volunteers (e.g., Generation Y)
International experience to fulfill
personal life objectives (opportunistic,
employee-driven moves)
Seasoned Technical Experts
Providing specialist skill, resource or
expertise to fill local gap; complete specific
project or task
Develo
pm
en
t V
alu
e
Business Value
Business-led resource planning and deployment
3
4
1
2
Corporate-led career pathways and succession management
Practical Strategies Creativity and Flexibility in Role Structure & Policy Segmentation
MERCER
Practical Strategies Spouse/Partner Career Continuity and Development
Strategy Cost
Impact
Difficulty of
administration
Encourage spouse/partner to explore options with
their own employer if possible (eg. career breaks,
remote working opportunities, host country transfer)
Low Low
Visa and work permit assistance in host countries
that permit a spouse/partner to be employed Low
Low (if 3rd party used)
Job search and networking assistance for paid or
volunteer opportunities at assignment
commencement and repatriation Moderate
Low (if 3rd party used)
Resume/CV writing assistance Low
Low (if 3rd party used)
Explore opportunities to offer employment to a
qualified spouse/partner within your organisation
if possible and appropriate
Low Moderate
MERCER
Practical Strategies Spouse/Partner Career Continuity and Development
Strategy Cost
Impact
Difficulty of
administration
Pre-departure and re-entry job hunting trips and
outplacement support before the move occurs Moderate Moderate
Tuition reimbursement (up to a cap) to allow the
spouse/partner to continue formal or informal
education in their chosen field or acquire new skills
Moderate Moderate
Personal development counseling: Career and
life-planning counseling to help acclimate to the new
situation and consider short and long term goals Moderate
Low (if 3rd party used)
Child care provisions to enable the spouse/partner
to work/volunteer where previously not a cost in the
home location (eg. due to proximity of family)
High
Low (cash/expense option)
MERCER
Practical Strategies Financial Impact of Assignments on Dual Income Households
Strategy Cost
Impact
Difficulty of
administration
Partial cash compensation replacement for
spouse/partner. Alternately can be used to
contribute to maintenance of home country social
security/pension arrangements
High Moderate
Increased employee cash compensation, bonus
and non-cash benefits, where appropriate and
equitable
High Moderate
Tax compliance and planning assistance for the
spouse/partner; and/or tax equalization of
spouse/partner income if moving to a high tax
jurisdiction
High (potential)
Low (if 3rd party used)
Support package: Lump sum amount to be used
for a selection of support programs
Moderate
Low (if 3rd party used)
MERCER
Practical Strategies Financial Impact of Assignments on Dual Income Households
Strategy Cost
Impact
Difficulty of
administration
Financially and/or administratively support
continuity of contribution to state benefits where
possible
High (potential)
Moderate (if 3rd party used)
Financially and/or administratively support
continuity of pension contributions where
possible
High High
Financially and/or administratively support
continuity of medical insurance benefits where
possible
Moderate (potential)
Moderate
M
Encourage assignee to rent out any home
country property for additional income opportunity
High (+ for assignee)
Moderate (for assignee)
MERCER
Practical Strategies Accompanying Family Considerations
Strategy Cost
Impact
Difficulty of
administration
Pre-assignment counseling and site visit for
the whole family to ensure all family members are
the right fit for the assignment and host location
Moderate
Low (if 3rd party used)
Couple/family counseling at any point before or
during the assignment, especially if the family
experiences a serious personal situation
Moderate
Low (if 3rd party used)
Cultural training for all family members to
encourage local integration to help adjust to
change and create host location networks
Moderate
Low (if 3rd party used)
Relocation and school search assistance to
help with the administration of settling in and to
network quickly with neighborhood
contacts/expatriate communities
Moderate
Low (if 3rd party used)
MERCER
Practical Strategies Non-Accompanying Family and Carer Responsibilities
Strategy Cost
Impact
Difficulty of
administration
Review definition of family in policies to
accommodate dependent family members other
than children where possible and required
High (potential)
Low
Consider additional home leave trips/leave to
allow assignees (or spouse/partner) to manage
family affairs/carer arrangements
Moderate
Low
MERCER
Spouse/Partner Career Continuity & Development
• Workforce participation rates and wage gaps by
gender are equalizing year-on-year
• Global talent and skills gap issue impacts everyone, including employers of spouses/partners of your prospective assignees
• Right to work for spouses/partners is a critically important immigration issue
Financial Impact on Dual Income Households
• Policy trends show spouse/partner support limited to employment or development enablement activities, but do not directly address the potential loss of household income issue
• Goes beyond net salary – spouse statutory and employer-provided benefits are also impacted
• Assisting assignees to understand the full value and financial impact of an international assignment is key
Accompanying Family Considerations
• Relocation support is prevalent in the market re: orientation, home find and school search services
• Host country education costs are still predominantly met by companies
• Day care is provided by only a very limited number of companies
Non-Accompanying Family and Carer Responsibilities
• Majority of global mobility policies define family as immediate and do not consider other dependent family members for the purposes of benefit provision
• Aging population issues are likely to increase the extended family responsibilities of assignees and their spouse/partners
• This is a sensitive, emotive issue that will continue to impact talent mobility in the years ahead
Practical Strategies Summary
MERCER
“Dual career or spousal assistance is a support
element that, when provided, decreases the attrition
rate in both the short and long term. In times of
economic uncertainly, it may be more difficult for an
employee to ask a spouse/partner to give up a
promising career or necessary pay check …. Support
takes diverse forms but knowing that the company
acknowledges the issue sends an encouraging
message to the expatriate”.
Source: Global Mobility Metrics: Focus on Retaining Key Talent, Mercer 2011