Time To assess your global mobiliTy programme

GLOBAL MOBILITY PROGRAMME SCANNER

As European companies strive to recover from a persistent recession, many seek to grow their business globally by using Mobility to support and drive global expansion. Recent Mercer surveys1 confirm that the number of international assignments has increased over the past two years and is likely to grow further in the future.

Mobility is a key component of global growth strategy, and companies need to optimise their international mobility offering while maintaining appropriate levels of benefit coverage and ongoing governance that will provide a suitable, competitive reward package for assignees.

Mercer and Marsh’s Global Mobility Programme Scanner considers all aspects of a comprehensive mobility policy, allowing companies to review any component of the programme. The Scanner process provides specific guidance for improving governance and efficiency across an integrated programme and identifies ways in which the mobility process can be stream-lined.

1. For more information, see Worldwide Survey of International Assignment Policies and Practices, available at www.imercer.com/wiapp, and Alternative International Assignments Policies and Practices Survey (AIA), available at www.imercer.com/aia.

•Do you need a seamless global mobility programme with efficient, cost-effective compensation and benefits management for a mobile workforce?

•Are you using the right peer companies to benchmark the level and effectiveness of your mobility programme?

•Do you regularly review the content and risk involved in your mobility programme both holistically and for each component?

•Can you offer your assignees an element of flexibility or choice in their reward package more specific to their circumstances?

•Are you fully aware of the “hidden costs” that may be embedded in your mobility policy or in the organisational and operational set-up of your mobility management process?

•Do you have a fragmented or adhoc approach to mobility, with different stakeholders taking mobility related decisions in isolation?

CONSIDER ThESE quESTIONS

Do you really know how your global mobility programme operates, or do you see only the tip of the iceberg?

The scanner integrates all the aspects of Mercer’s mobility-related services with cross-functional expertise in compensation, retirement schemes, and health and personal protection plans. The scanner also integrates the general corporate risk aspects as they may relate to mobility from our sister company Marsh. Mercer and Marsh will provide you with a high-level assessment of your programme as well as identify and map the risks associated with it. We will indicate best market practices and make recommendations specific to the risk areas.

Coordinated by a single project manager, the scanner will be used as a platform to review and identify:

•Areas of improvement to optimise your global expatriation costs and processes.

•Financial risks: compensation packages, risk insurances, and pension arrangements.

•Individual risks: satisfaction of your employees.

•hidden costs and inefficiencies in your mobility programme.

“We developed an international compensation system to facilitate the mobility of our top executives. This global compensation grid is complemented by a retirement system that protects the rights of these employees, who won’t necessarily return to their country of origin. We deal with a single project manager at Mercer who coordinates these various aspects internally.”

“Thanks to its cross-functional expertise in local compensation, complementary retirement schemes, and health and personal protection plans, Mercer has enabled us to develop a relevant localisation policy. We have achieved our goals to optimise our international mobility costs while maintaining the social protection of our employees at an acceptable level with the help of innovative schemes.”

BENEFITS OF ThE MERCER AND MARSh GLOBAL MOBILITY PROGRAMME SCANNER

MERCER AND MARSh’S GLOBAL RESPONSECross-funCTional experTise To respond

To a CompleTe range of inTernaTional mobiliTy issues

operaTional effiCienCy

OPTIMISED ...

•COST STRuCTuRE •RISK EXPOSuRE AND CONTROL •DELIVERY MODEL

•COMPENSATION PACKAGE •SOCIAL PROTECTION AND RISK COVERAGE •EXPATRIATE EXPERIENCE

VALuABLE ...

COMPENSATIONSTRuCTuREAND LEVEL

RETIREMENT GENERALRISK COVERAGE

MEDICAL, LIFEEMPLOYER EMPLOYEE

WhAT DOES ThE GLOBAL MOBILITY SCANNER COVER?

GLOBAL MOBILITY PROCESS•Corporate views on mobility

•Mobility and hR policies

•Governance process

•International vehicles

•Categorisation of expatriates

•Compensation approach

•Communication and support

•Repatriation process and support

CORE BENEFITS — RISK AND MEDICAL •home versus host approach

•International medical plan

•International life plan

•International disability plan

•International business travel

•Security and evaluation plan

COMPENSATION•Base salary

•Other cash components

•Variable compensation

•Cost-of-living allowance

•Per diem rates

•Job grade

•home versus host approach

•International/offshore — pension plan approach

•Individual winners and losers analysis

•Social security policy

•Salary augmentation in lieu of retirement plan

ALLOWANCES AND OThER ASSIGNMENT PROVISIONS •Transportation at host location

•Travel to and from host location

•housing benefit at host location

•host country housing purchase assistance

•home country housing considerations

•Education support for dependent children

•quality-of-living allowance

•Spouse or partner support

•Tax advisory servicesASSIGNMENT PREPARATION AND CONDITIONS •Language training

•Cultural training

•Annual vacation and holiday

•home leave

•Settling-in allowance

•Temporary accommodation

•Preassignment trip

•Relocation services

CORE BENEFITS — RETIREMENT

WhAT DOES ThE GLOBAL MOBILITY SCANNER COVER?

GENERAL RISK MANAGEMENT FRAMEWORK •Corporate risk management governance

•Mobility risk management policy

•Business travel management policy and travel tracking

•home contents and personal property insurance

•Vacant home — owners insurance

•Liability insurance

•Directors and officers coverage

•Global cargo and moving insurance

•Kidnap, extortion, and detention insurance

•Key persons and protection of financial investment

SECTION 7: GENERAL RISK MANAGEMENT FRAMEWORK

7. GENERAL RISK MANAGEMENT FRAMEWORK

KEY OBSERVATIONS: The general risk management framework at MICI Health Corporation is having desired results with medium to low risk across all of the six mobility elements analysed. Improvements can be achieved by tracking and monitoring governance by all subsidiaries. To this purpose, there are excellent tracking tools that will help MICI Health Corporation manage risks in this area by ensuring the travel policy is implemented, immigration regulations are followed, and medical and retirement elements are in compliance with the policy.

MICI Health Corporation should consider revamping its communications portal with employees to include a section on insurances that can inform employees and is also linked to a preferred supplier for various employee insurances while on assignment.

MOBILITY ELEMENT RISK MARSH APPROACH

7.1Corporate Risk Management Governance

Review the current corporate risk management governance to ensure that all significant mobility risk elements, both internal and external, are well-covered and managed. This also ensures that the company has a clear recognition of its risk profile and meets its duty of care towards international staff.

7.2Mobility Risk Management Policy

Complete the current risk policy with regards to mobility risks by optimising the:

•Identificationofriskareasusingindustry-specificglobalriskmaps. •Riskevaluationusinganintegratedapproach. •Solutionsimplementedforalltypesofrisks.

In addition, verify and ensure that the policy is updated and communicated internally.

7.3Business Travel Management Policy and Travel Tracking

Review the travel management programme to ensure it remains best practice. Review insurance coverages to ensure continued alignment.

7.4Home Content and Personal Property Insurance

Provide coverage to expatriates in certain riskier countries and for certain expat categories.

7.5Vacant Home Owners Insurance

Recommend reviewing opportunity and cost for such coverage for all or certain categories.

7.6 Liability InsuranceReview existing policy and consider specialist input for expertise to ensure best wording and price.

RISK PROFILE

11MERCER MARSH

SAMPLE

SECTION 1: GLOBAL MOBILITY PROCESS

1. GLOBAL MOBILITY PROCESS

KEY OBSERVATIONS: While MICI Health Corporation’s risk profile in this section of the scanner can be considered as low, there are a number of areas of concern regarding the alignment of the programme as it stands today and the future talent needs of the company. Compared with other firms of this size and sector, the profile of MICI Health Corporation expatriates is mainly parent company nationals. Currently, few of the senior management team have any international experience, so mobility is not seen as vital for growth in the company. The company would benefit from a global view of talent and mobility. Such a move will lead to a review of the policies and processes, ultimately putting in place vehicles to support diversity in global mobility.

MOBILITY ELEMENT RISK MERCER APPROACH

1.1Corporate Views on Mobility

Review existing corporate policy to determine whether it remains in line with best market practice. Consider how it applies to the current expatriate population/profile. Discuss ROI of mobility, how management sees the value that assignments bring, and what impact the programme has on talent attraction, retention, and business performance. Stakeholder interviews and expatriate satisfaction surveys can be effective resources to assess alignment with management views.

1.2Mobility Policy (HR Policy)

Ensure that all stakeholders understand both the rationale for creating assignments and their terms and conditions.

1.3 Governance Process

Review current governance policy to ensure annual review of processes and appropriate benefits/compensation practices. Helps mitigate risk and ensure treatment remains in line with market best practice.

1.4International Vehicles (Risk, Medical, Pension)

Review both the benefits provided and the provider of programmes to ensure cost efficiency and best premium and/or service across the market and programmes.

1.5Categorisation of Expatriates

Review current segmentation of assignment profiles and policies and amend in line with corporate objectives. Mercer has seen market practice shifts in categories, particularly in relation to length of an assignment and value to the company and employee.

RISK PROFILE

SAMPLE

5MERCER MARSH

GLOBAL MOBILITY PROGRAMME SCANNER RISK PROFILE SUMMARY

1 — LOW RISK

3 — MEDIUM RISK

5 — HIGH RISK

GENERAL RISK MANAGEMENT FRAMEWORK

COMPENSATION

ALLOWANCES AND ASSIGNMENT PROVISIONS

ASSIGNMENT PREPARATION AND CONDITIONS

CORE BENEFITS — RETIREMENT

CORE BENEFITS — RISK/MEDICAL PLANS

GLOBAL MOBILITY PROCESS

5 0

1

23

4

3MERCER MARSH

SAMPLEGLOBAL MOBILITY PROGRAMME SCANNER RISK PROFILE SUMMARY

KEY OBSERVATIONS: MICI Health Corporation has a medium- to low-risk profile, which is to be expected from a leading firm in the life sciences sector. The mobility programme allows MICI Health Corporation to effectively staff its operations with qualified and experienced employees today, but there are signs that the programme needs to be aligned to future needs in view of important demographic changes at MICI Health Corporation.

There are some concerns as to whether MICI Health Corporation is able to retain top talent upon termination of the assignment and repatriation. This would suggest that a review is needed of the role of talent management and core retirement benefits. MICI Health Corporation’s management could adapt a better structure of the programme to meet future needs. It would also be in a better position to evaluate the value that mobility brings to the group.

1 — LOW RISK

3 — MEDIUM RISK

5 — HIGH RISK

GLOBALMOBILITYPROCESS

1

23

4

COREBENEFITS —RETIREMENT

1

23

4

COMPENSATION

1

23

4

COREBENEFITS —RISK/MEDICAL

1

3 2

4

ALLOWANCES/ASSIGNMENTPROVISIONS

1

3 2

4

5

ASSIGNMENTPREPARATION/CONDITIONS

2

1

0

3

4

12

GENERAL RISKMANAGEMENTFRAMEWORK

2

1

5

4

3

0

5 0

5 0 5 0

5 0

5 0

4 MERCER MARSH

SAMPLE

MERCER is a global consulting leader in talent, health, retirement, and

investments. Mercer helps clients around the world advance the health,

wealth, and performance of their most vital asset — their people. Mercer’s

20,500+ employees are based in more than 40 countries, and we operate in

more than 140 countries. Mercer is a wholly owned subsidiary of Marsh &

McLennan Companies (NYSE: MMC), a global team of professional services

companies offering clients advice and solutions in the areas of risk, strategy,

and human capital.

MARSH is a global leader in insurance broking and risk management. We

help clients succeed by defining, designing, and delivering innovative

industry-specific solutions that help them effectively manage risk. We have

approximately 26,000 colleagues working together to serve clients in more

than 100 countries. Marsh is a wholly owned subsidiary of Marsh &

McLennan Companies (NYSE: MMC), a global team of professional services

companies offering clients advice and solutions in the areas of risk, strategy,

and human capital. With more than 53,000 employees worldwide and

annual revenue exceeding $11 billion, Marsh & McLennan Companies is also

the parent company of Guy Carpenter, a global leader in providing risk and

reinsurance intermediary services; Mercer, a global leader in talent, health,

retirement, and investment consulting; and Oliver Wyman, a global leader in

management consulting.

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hong Kong

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Indonesia

Ireland

Italy

Japan

Malaysia

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Netherlands

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Norway

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Philippines

Poland

Portugal

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Singapore

South Africa

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Spain

Sweden

Switzerland

Taiwan

Thailand

Turkey

united Arab Emirates

united Kingdom

united States

Venezuela

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