2012 Human Capital Conference23–26 October
Intercultural awareness
The key to successful international cooperation
Disclaimer
► Ernst & Young refers to the global organization of member firms of E t & Y Gl b l Li it d h f hi h i t l l titErnst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US.Thi t ti i © 2012 E t & Y LLP All i ht d N► This presentation is © 2012 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying facsimile transmission recording rekeyingincluding by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or distribution of this form or any of the material herein is prohibited and is d st but o o t s o o a y o t e ate a e e s p o b ted a d sin violation of US and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party.
► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP.
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Agenda
► Introduction► Increasing importance of global mobility in growth markets► Intercultural awareness: the key to successful
i t ti l tiinternational cooperation
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Presenters
► Ulrike Hasbargen ► Dr. Fritz Audebertg► Ernst & Young GmbH► [email protected]
► ICUnet.AG► [email protected]
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Ernst & Young Global Mobility Effectiveness Survey 2011Survey 2011
► Global mobility professionals from 350 companies responded to the survey.
► 45% of the respondents were from companies headquartered in Europe 34% in North America 14% in Asia Pacific 5% in SouthEurope, 34% in North America, 14% in Asia Pacific, 5% in South America and 2% in Africa.
► The participating companies come from a wide range of industry ( ) ( %)sectors with energy, chemicals and utilities (including mining) (21%);
financial and professional services (20%); retail and consumer products (12%); and technology (12%) most strongly represented.
► In keeping with previous years, the majority of survey respondents (54%) represent multinational organizations with more than 20,000 employeesemployees.
► The Ernst & Young Global Mobility Effectiveness Survey 2012 will be launched during this conference and confirms the trends.
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What are the most frequently addressed issues for international assignees?issues for international assignees?
80%
Findings:I 2011 f il d
60%
80%
► In 2011, family- and spouse-related issues were reported by 49% of respondents to be th t f tl
49% 47%
36%32%
40%
the most frequently addressed issue for international assignees.
14%9%
20%
0%Family-/spouse-related issues
Compensation package
Repatriation Location/cultural issues
Others Position-related issues (e.g.,
unsatisfactory position)
For the first time in the last four years, family- and spouse-related issues have overtaken compensation as the No 1 issue addressed by international assignees
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compensation as the No. 1 issue addressed by international assignees.
Which of the following phases of the international process is the most important from your experience?
Findings
3%
Findings:► The importance of the
selection process has increased from 24%
22%
7%3%
Selection of the assignees
P ti ( d t )
in 2010 to 44% in 2011.
► Respondents have reduced recognition of
44% Preparation (pre-departure)
Assignment
Repatriation
reduced recognition of the importance of the repatriation and post-repatriation phase, down from 16%
24% Post-repatriation down from 16% respondents 7% in 2010.
There has been a shift in views regarding the most important phase of the international assignment process which is now seen to be the selection of assignees
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assignment process, which is now seen to be the selection of assignees.
Are there changes in the number of assignees deployed into growth market countries in comparison to other locations?
Findings: Over the last 12th
Expected in next2 3
► 61% of companies reported that they had seen an increase in the number of
months 2-3 years
29%
3%4%
the number of assignees deployed into growth market countries over the last 12 months
29%35%
the last 12 months► A further 68% of
companies reported that they expect to see an increase in the
68%61%
see an increase in the number of assignees deployed into growth markets in the next tow to three years
No change
Yes, we expect to see an increase
Yes, we expect to see a decreasetow to three years.
Assignments touching the growth market locations of Brazil, Russia, India, China and Africa are increasing as companies try to compete in these rapidly growing economies
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Africa are increasing, as companies try to compete in these rapidly growing economies.
Growth in the number of inbound assignees into each of the following growth market countries
80%
90%
Findings:► India is the fastest
71%
80%
75%
60%
70%
80%Brazil
Russia
► India is the fastest growing market for inbound assignees, with an 80% projected increase between
43%40%
50%
60%India
China
increase between 2010 and 2014.
► Africa shows 75% growth in the same
i d d B il
23%20%
30%Africa
period, and Brazil shows 71% growth.
0%
10%
March 2010 March 2011 Projected 2014
India is the fastest growing market for inbound assignees, followed by Africa.
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What are the number of historical and projected inbound assignees into each of the following growth markets?
2830Findings:► In 2011, China had the
highest number of i b d i
22
27 27 28
25
30
inbound assignees with an average of 27 assignees per company.
16
13
18
12
18
15
20March 2010
► Africa has the highest projected number of inbound assignees for 2014 with an
7 7
108 8
1210
10March 2011
for 2014 with an average of 28 assignees per company. 0
5
Brazil Russia India China Africa
Projected 2014
China currently has the highest number of inbound assignees per company; however,Africa is expected to overtake within the next three years to become the top growth
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market destination for inbound assignees.
Assignment drivers inbound into growth markets*markets
Findings:*Multiple answers possible
Findings:► 83% of companies
report that assignments into
h k
83%79%
70%
93%
80%
100%
growth markets are most often for strategic/managerial purposes.
70%
60%
► Other survey findings showed that companies were mainly sending
30%
7%
17%21%
20%
40%
mainly sending senior employees on long-term assignments into growth markets.
7%
0%Strategic/managerial Project based Developmental Other
Most common drivers Least common drivers
Project-based
growth markets.
A clear trend may be observed toward companies investing significant senior talent in strategically driven assignments in order to compete in rapidly rising economies
Most common drivers Least common drivers
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strategically driven assignments in order to compete in rapidly rising economies.
How many historical and projected outbound assignees are from each of the following growth market countries?
Findings 40Findings:► In 2011, India has the
highest number of outbound assignees
3032
34
25
30
35
outbound assignees with an average of 32 assignees per company.
I di ti t 9 1015
20
25
► India continues to have the highest projected number of outbound assignees f 2014 ith
53
5 65 46 76 5
9 10
0
5
10
C ffor 2014 with an average of 34 assignees per company.
Brazil Russia China Africa India
March 2010 March 2011 Projected 2014
India has significantly higher numbers of outbound assignees than other growth market locations
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locations.
Assignment drivers outbound from growth markets*marketsFindings:
A i t d i f
*Multiple answers possible100%
► Assignment drivers for assignments outbound from growth markets are most commonly t t i / i l
69% 68% 67%
75%80%
strategic/managerial (69%), project-based (68%) and developmental (67%).
40%
60%
► Outbound assignments from growth markets more frequently involve
25%31% 32% 33%
20%
40%
q yjunior assignees acquiring experiences and skills to bring back
0%Strategic/managerial Project based Developmental Other
Most common drivers Least common drivers
Project-based
gto their countries.
In comparison to assignments inbound into growth markets, outbound assignments are more often driven by developmental reasons
Most common drivers Least common drivers
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more often driven by developmental reasons.
Seite 1
Breaking the barriers Cultural specifics in international development of
trust
Dr. Fritz Audebert ICUnet.AG
2012 Human Capital conference 23-26 October
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One crucial challenge for expatriates and their families
work life balance
long working hours, much trouble shooting quality time for family life
Darling, how can you make sure to have
more dinners together with us?
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Expatriates and spouses – Why do their time budgets not match ?
available leisure time (typical case)
spouse
Start of international assignment
assignee
End of international assignment
Assignee New projects, new teams consolidation Preparation of return or next assignment
Spouse Arrangements of private life
(too) much time Start of activities: professional, charity, local communities
Preparation of return or next assignment
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H ow can expatriates prevent their stress stage?
Risk: poor work – life balance high performance expectations trouble shooting change management culture shock strong need for family time
Good news: Expatriates can save time and energy if they develop trust. For the development of trust, professionalism is crucial. It must be coupled with openness to host expectations and curiousity to the personal environments of local stakeholders.
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Criteria for trust are diverse – at different destinations
Guangzhou, China
St Petersburg, Russia
Munich, Germany
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Breaking barriers – selected trust criteria for incoming expatriates
Munich
St. Petersburg
Guangzhou separation business vs private
schedules
checklists
perfect preparation attentive to signals
ambition
latest technology
personal conversations
speed
event oriented
care
long-term cooperation
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Can we identify one single most important mark of confidence? It depends where you are.
Patterns of trust building which make expatriates more successful… one selected
business value
…makes the expatriate more successful …speed up problem solving …save time and energy …allow for a better work-life balance – on the long run.
trust driver – the local mark of confidence
friendship
efficiency
China
Germany
Russia
ambition
„sacrifice“ of private time invitations to
„special“ spaces „exceptional“
favours
Dr. Fritz Audebert fritz.audebert@ icunet.ag ICUnet.AG www.icunet.ag 11 offices | 140 employees | 24 business awards | 25 languages Berlin | Bremen | Cologne | Frankfurt | Fürth | H amburg | Leipzig | Passau | Shanghai | Stuttgart | Vienna
Thank you very much for your attention!
Questions
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