The document summarizes a session from the 2012 Human Capital Conference that took place from October 23-26. The session focused on building an effective global mobility policy from the bottom up. It discussed identifying stakeholders, understanding business needs, obtaining leadership support, and ensuring clear communication. It also provided examples of GSK's approach to developing their global mobility policy and centers.

1. 2012 Human Capital Conference
23–26 October
Building a mobility policy
f th b tt
from the bottom up

2. Disclaimer
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► The views expressed by panelists in this session are not necessarily
those of Ernst & Young LLP LLP.
Page 2 Building a mobility policy from the bottom up

3. Presenters
► Maureen Potts ► Jane Malecki
► GlaxoSmithKline ► Ernst & Young LLP
► maureen.f.potts@gsk.com ► jane.malecki@ey.com
Page 3 Building a mobility policy from the bottom up

4. Session overview
► Understand the steps needed to build a g
p global mobility
y
policy.
► Identify the components of effective p
y p policy building.
y g
► Discuss the constituents of global mobility policies and
their role in building those policies.
► Learn from the experience of GlaxoSmithKline’s (GSK)
approach to crafting their policies.
Page 4 Building a mobility policy from the bottom up

5. Introduction to global mobility policies
How do global mobility
programs evolve?
International ►30+ international
employees
assignee ►Dedicated
numbers International HR
department
►10-30 international ►Multi-tier policies
employees ►Outsourcing
►Some e pertise
expertise
►5-10 international ►Policy in place
employees
►Little expertise
►Policy being
y g
considered
►First few
international
employees
►No international
HR expertise
►No policy
International HR expertise
Page 5 Building a mobility policy from the bottom up

6. Approach to policy advisory – review
Is the policy aligned with business/HR strategy and future expansion plans?
Policy review
Strategic alignment: ►
► Is the policy aligned with global mobility strategy?
criteria
it i ►
►
Is the policy aligned with corporate culture?
Is the policy aligned with the talent management process?
Policy alignment: ► Is the policy aligned with other (group) mobility policies?
The cost-effectiveness Compliance:
p ► Does the policy p
p y promote tax compliance?
p
► Does the policy promote social security and pension compliance?
criteria includes detailed ► Does the policy promote immigration compliance?
benchmarking results ► Does the policy promote labor law compliance?
against major competitors Cost effectiveness: ► Are benefits and allowances aligned with leading practice?
for l b l talent.
f global t l t ► Are the benefits and allowances paid in a tax-effective way?
► Is the company protected against excessive claims/losses?
► Is policy administration effort optimized?
Completeness ► Are all leading practice items covered?
and consistency: ► Separation of items: policy vs. assignment l tt
S ti f it li i t letters vs. l
local b
l benefit b h
fit brochure,
etc.
► Are all items covered consistently in terms of level of detail?
Attractiveness ► Is the policy attractive to the assignee and family?
to the assignee:
Structure and ► Is the policy built upon a logical structure following assignment process?
wording: ► Are potential misunderstandings in wording minimized?
► Is the wording and layout user-friendly — easy to read and understand for
assignees?
► Are additional administration guidelines clear and user-friendly for those
administering the p y
g policy?
Page 6 Building a mobility policy from the bottom up

7. GSK’s journey
► Centralized – present:
► Global mobility
► Decentralized:
► Domestic relocation:
► US
► UK
► Cross-border – future:
► Assignments
► Local plus
► International permanent relocation
► Localizations
► Foreign direct hires
► Global domestic relocation
► End-to-end process:
► Ensures compliance and governance
► One point of contact
Page 7 Building a mobility policy from the bottom up

8. GSK – Global Mobility Program
► Global assignee p p
g population: 500
Assignment types Top 10 assignment locations
Long-term 194 United Kingdom
Short-term 73 United States
GA Zero 62 Singapore
GA Lite 20 Belgium
Commuter 78 China
Graduate 54 France
BTTCTL 18 Ireland
PULSE 1 Malaysia
Argentina
Hungary and South Africa are tied
► Total number of assignment locations: 51
Page 8 Building a mobility policy from the bottom up

9. Cross-border policy proposal
► Proposed creation of g g p
p geographically based function with
y
individual roles with the following responsibilities:
► Provide first-level counsel to Human Resource Business Leaders
(HRBLs), line managers others regarding key considerations on
the type of cross-border alternatives (i.e., Global Assignee (GA),
localization, Local Plus)
► Own the “end-to-end” process and coordinate each sub-process
owner’s activity within geography (i.e., ensuring joiner activities
occur,
occur such as IT and induction)
► For cross-geography activity, serve as the “lead” or “secondary”
coordinator as appropriate
► Manage all Comms cell or other tracking/escalating activities
► Directly complete required relocation and destination services
tasks
Page 9 Building a mobility policy from the bottom up

10. Stakeholders
► Identify stakeholders:
y
► Not just the heads of the business
► Understand who your transactional partners are
► Make sure HR is engaged
► Understand business drivers
► Obtain commitment at the top
► Ensure communication goes in all directions
Page 10 Building a mobility policy from the bottom up

11. Structure
► Reward Center of Excellence (CoE)
( )
► Centralized global mobility centers
► Three regional centers:
► UK
► US
► Singapore
► Host-based:
► Advisors responsible for all businesses within a country
► Creates country experts
Page 11 Building a mobility policy from the bottom up

12. Reward CoE
HR business leaders HR business leaders
Expert
E t Business aligned
HR sh
Specialist Reward business
consultants leaders
hared servic
cellence
Expert global Global comp.
Business
measures/program
p g services operations
ces/employe services
ntres of Exc
excellence Long Term
Incentive (LTI) Regional
programs operations
Executive and services
Global project
Cen
ee
compensation Global mobility implementation
programs and
services Global process
delivery/analysis
s
Benefits Compensation
systems Global support
External
Page 12 Building a mobility policy from the bottom up

13. Support infrastructure
► Global HRIS
► Payrolls
► Talent
► Benefits
► Outsourced partners
► Tax (including social security)
► Data
► Immigration
► Relocation
► Finance
Fi
Page 13 Building a mobility policy from the bottom up

14. Global Mobility Centre
Responsible for p g
p programs and services in the Americas
Director, Global
Mobility Programs
M bilit P
and Services
AMERICAS
Global Mobility Global Mobility Global Mobility
Advisor Administrator Advisor
AMERICAS AMERICAS Technology
US US US
Page 14 Building a mobility policy from the bottom up

15. Global Mobility Centre
Responsible for p g
p programs and services into EMEA/APAC
Director, Global
Mobility Programs
and Services
EMEA/APAC
Global Mobility Global Mobility Global Mobility Global Mobility Global Mobility
Global Mobility
Advisor Advisor Advisor Advisor Administrator
Advisor
EMEA/APAC
UK UK UK UK Singapore
Si UK
Page 15 Building a mobility policy from the bottom up

16. One global end-to-end process is possible
Total Destination Leavers
reward services sub-
actions
ti process
Joiners Ongoing
Relocation HR admin.
sub-
services activity
process
Foundation: governance (tax, immigration, data protection, etc.)
(tax immigration protection etc )
Global As
assignees Host Yes Yes Yes needed No
Localizing New Yes As As As Former
employees home needed needed needed home
Foreign direct Yes Yes As As As No
hires needed needed needed
International New Yes As As As Former
transfers home needed needed needed home
Page 16 Building a mobility policy from the bottom up

17. Tools
► Myriad of worldwide p y
y payrolls/Human Resource
Information System (HRIS) systems:
► PeopleSoft
► SAP
► WorkDay
► Assignment management System:
A i t tS t
► Assignment Pro:
► Demographics
► Workflows
► Interface
► Compensation accumulation
Page 17 Building a mobility policy from the bottom up

18. Culture
► Self-service:
► Globally
► Assignment administration:
g
► Somewhere in between:
► Disruption of:
► Personal life
► Work life
► Family life
► Success lies i the d il
S li in h details
Page 18 Building a mobility policy from the bottom up

19. Compliance
► Partner with outsourced providers:
p
► Tax
► Immigration
► Data
► Relocation
► Ensure continuity
E ti it
► Insure governance
► Consider U S F i C
C id U.S. Foreign Corrupt P ti
t Practices A t
Act
► Consider UK Bribery Act
Page 19 Building a mobility policy from the bottom up

20. Cost-effectiveness
► Benchmark of benefits and allowances
► Tax impact
► Risk management
► Administrative impact
Page 20 Building a mobility policy from the bottom up

21. Attractiveness to the assignee
► Adequate benefits to neutralize cost impact
q p
► Incentives to offset any potential career disruption
► Assistance for dual career families
dual-career
Page 21 Building a mobility policy from the bottom up

22. Completeness and consistency
► Leading p
g practices considered
► Industry practices evaluated
► Easy to understand
► Integration with local policies and benefits
Page 22 Building a mobility policy from the bottom up

23. Structure and wording
► Logical flow of written documents
g
► Adequate examples to illustrate mechanics
► Attractive layout
Page 23 Building a mobility policy from the bottom up

24. Driving continuous improvement – areas of
focus and heat map
The operating model consists of a set of seven key components over which there are choices that can be made in
designing global mobility activity ownership.
► Deliver effective and efficient
processes in the right location
► Set up a global framework for ► Currently under review by client
policies to support global
governance ► Use benchmarks to
► Currently under review by client promote continuous
improvement of service
Execution layer levels
► Structure the Organization to Policy Process Performance ► Currently under review by
Measurement client
deliver valuable service to the
business
► Define appropriate local
local,
Organization regional, global structures,
layer shared service centers / Organization
outsourcing
► Area of challenge for client ► Define a system architecture
operation and tools to enable valuable
activities
Resource layer Data People Technology ► Global technology deployed
in 2011
► Define a set of consistent global
data standards and common
fields of information ► Select the right people resources with
the right skills in the right location
► No pressing issues noted by
client ► Survey feedback expressed concerns
surrounding HR representatives
Initial focus typically begins on the organization layer and the process component within the execution layer
layer.
Page 24 Building a mobility policy from the bottom up

25. Questions
Page 25 Building a mobility policy from the bottom up