Career + Innovation

No Room for Can’t: 4 Steps to Achieve Exponential Growth

July 24, 2018
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“Growth economies are making a proverbial splash on the business world and the ripple effect will leave no organization untouched."

Growth economies are making a proverbial splash on the business world and the ripple effect will leave no organization untouched. While conventional business philosophies will help some leaders navigate the rough waters, truly succeeding in this rapidly changing landscape, goes far beyond any business school curriculum.

Whether you’re a leader of a startup or a Fortune 500 company, we are all grappling with rapid and borderless news cycles, accelerating urbanization, new technologies, the creation of global marketplaces, and an abundance of cheap capital. In the midst of it all, we are working to solve the same core problem: how can we be relevant in a fast-paced world?

Some will turn to business school principles for the answers, but finding solutions for this deep-seated question goes beyond a change in operations, technology adoption and business structure. It requires a less tangible solution. Leaders and companies seeking to be relevant must adopt a growth mindset and culture—the foresight, courage and ingenuity to identify and take hold of novel opportunities and do it sustainably.

Step 1: Recognize the Need for Change
 

The Western powerhouses that have historically dominated the world economy are “passing the baton” of global economic leadership to the growth economies of Asia, the Middle East, Africa, and Latin America. These economies are turning the business world on its head. It’s phenomenal to consider these regions have contributed more than 80 percent[1] of global economic growth since the 2008 financial crisis. By 2050, they will dominate the world’s top 10 economies[2].

In addition to where the world is doing business, we’re experiencing major shifts in how business is done. Digital, mobile and social media are transforming the customer experience, disrupting industries and businesses and creating new ones, and workforce skills and demographics need to change in tandem. The growth of mobile technology and solutions in Asia and Africa alone is staggering. It is fundamentally changing not just payments but whole systems of social and business interaction.

The bottom line is the world is changing. Fast. Leaders with a growth mindset want to amplify strategic choices and fuel innovation. They know with a clear purpose and by keeping people at the core, they can use the external environment to their advantage. Leaders inspired by unleashed potential, new terrain and competitive possibilities, and who are undeterred by the challenges that accompany it, will be the ones who succeed.

Step 2 : Adopt a New Way of Thinking
 

At its core, a growth mindset is a deeply engrained belief that influences how decisions are made. Those with a growth mindset feel emboldened by challenges; they perceive them as opportunities to expand their point of view, learn something new, and better themselves from the experience. And by doing so, they find profitable business growth in even the most difficult environments.

On the contrary, those lacking this mindset are threatened and paralyzed by uncertainty. Take for example, Carol Dweck’s case study of fixed mindset CEOs in Mindset: The New Psychology of Success. In the book, she explains how the fixed mindset helps us understand where egos come from and why they become self-defeating. Referencing fixed mindset CEOs, Dweck says they start believing some people are superior, and have a need to prove and display their superiority by using their subordinates to feed this need, rather than fostering the development of their workers[3]. By not embracing diversity of thinking or inviting controversial views, in the end, fixed mindset leaders have sacrificed the long term success of their companies or worse, drove them to extinction.

In order to incite meaningful change and remain competitive on the expanding global stage, successful leaders do not fall victim to a finite mindset. They must continue to seek alpha, agitate for growth and have a bias toward relentless execution.

Step 3: Cumulative Leads to Exponential – Share the Love & Rally your team
 

Really successful leaders say it takes ‘1,000 good decisions’. What this refers to is the cumulative effect over time of out-competing the opposition making the highest quality decision at every turn. An open growth mindset applied consistently across a business portfolio and sustainably over time, will lead to exponential growth. Like the power of compound interest, growth decision on growth decision on growth decision and so on, across an organization, will lead to accelerating competitive advantage.

Though the concept of a growth mindset is simple in nature, fostering this mentality consistently among employees is a challenge. Mercer research conducted among 800 organizations, across 57 countries and 26 industries, found only two in five employees say their company has a compelling, differentiated value proposition. Based on this research, Mercer developed the Thrive Model: How to Win in an Age of Disruption. This model emphasizes that in changing times, organizations need to develop a ‘growth-focused’ culture or growth mindset – empower their employees, focus on inclusiveness, connectedness, and innovation[4].

For leaders, advancing and nurturing this perspective must be a priority. Studies indicate employees in a growth mindset culture expressed 47 percent more trust in their company than those in fixed mindset companies; are 34 percent more likely to feel a sense of ownership and commitment to the future of their company; are 65 percent more in agreement that their companies support risk taking; and are 49 percent more in agreement that their companies foster innovation[5].

Developing a growth mindset and culture starts with talking about it. Passion is contagious. Great leaders inspire others by sharing their visions. Through a compelling storytelling approach, leaders can provoke change not by executive order, but by standing for something bigger, going beyond the profit narratives and articulating the why. As Simon Sinek said, “If you talk about what you believe, you will attract people who believe what you believe.”

Step 4: Achieve Exponential Growth
 

The potential inherent in being relevant to our changing world is extraordinary. Growth economies account for 90 percent of the global population under the age of 30[6], which means 85 percent of the global work-age population will be in growth economies by 2030[7]. It’s no wonder growth economy multinationals on the Global Fortune 500 list increased by 240 percent between 2005 and 2013[8]; or that these markets are set to account for nearly 60 percent of the world’s GDP by 2030[9].

Having a growth mindset opens doors to opportunities in existing markets and to many new frontiers. Companies, and leaders, who anticipate and meet market needs in the rapidly growing corners of the world will reach and inspire many more people. They will demonstrate their value—not just at home, but across the globe.

To quote Rwandan author Bangambiki Habyarimana, “Break to pieces whatever indoctrination and programming that holds you hostage. The world is yours. Get possession of it.” Today’s business leaders have the opportunity to create a future that was previously inconceivable. As technology and globalization dissolve the boundaries between us, we must also dissolve the boundaries of our own thinking. The time for a growth mindset and culture is now.

 

1 International Monetary Fund. (2016, February 04). The Role of Emerging Markets in a New Global Partnership for Growth by IMF Managing Director Christine Lagarde.
 https://www.imf.org/en/News/Articles/2015/09/28/04/53/sp020416#P27_3292

2
PWC. (2015). The World in 2050 Will the shift in global economic power continue?.
https://www.pwc.com/gx/en/issues/the-economy/assets/world-in-2050-february-2015.pdf

3
Dweck, Carol S. Mindset: The New Psychology of Success. New York: Ballantine Books, 2007. Print.
4
Mercer. (2017). Thrive Model: How to Win in an Age of Disruption.
https://www.mercersignatureevents.com/ASIAHR2017/hongkong/agenda.html

5
Senn Delaney. (2014). New Study Findings, Why Fostering a Growth Mindset in Organizations Matters
http://knowledge.senndelaney.com/docs/thought_papers/pdf/stanford_ agilitystudy_hart.pdf
6 Euromonitor International. (2014, May 30). Emerging Markets Account for 90% of the Global Population Aged Under 30.
http://blog.euromonitor.com/2014/05/emergingmarkets- account-for-90-of-the-global-population-aged-under-30.html
7 Lam, David. (2014). The Demography of the Labor Force in Emerging Markets.
https://www.kansascityfed.org/publicat/sympos/2014/2014Lam.pdf
8 GE Reports. (2014, June 20). The Rise of Emerging Market Startups.
https://www.ge.com/reports/post/93343731983/the-rise-of-emerging-market-startups/
9 OECD. (2010, May 26) Economy: Developing countries set to account for nearly 60% of world GDP by 2030, according to new estimates.
http://www.oecd.org/dev/pgd/economydevelopingcountriessettoaccountfornearly60ofworldgdpby2030accordingtonewestimates.html

MORE IN CAREER

Didintle Kwape | 14 Nov 2019

Africa's youth employees are a valuable, ample talent source that multinational companies can tap as they expand their operations throughout the continent. Record numbers of teenagers and young adults in Africa are either unemployed or underemployed but are willing to work if given the chance. In South Africa alone, where the unemployment rate is expected to grow beyond 30% this year, two-thirds of the jobless are between 15 and 24 years of age.1 Realizing the Untapped Talent Pool   "We are very much alive to the fact that youth unemployment is indeed a national crisis," stated South African President Cyril Ramaphosa in June 2019.2 Governments across the continent are now rewriting labor laws and breaking down bureaucratic hurdles to make hiring youth less cumbersome for both multinational corporations and local small businesses. They are also teaming up with nonprofit organizations to nurture young talent and teach necessary workforce skills. Alliances are being forged to aid these efforts, such as the International Labour Organization's (ILO) partnership with the African Development Bank, the African Union Commission and the United Nations Economic Commission for Africa (UNECA). Together, they hope to address youth employment at regional and national levels. To better prepare youth for work, the ILO provides employment services, skills development and labor market training — with a focus on technical and vocational education, apprenticeship and job placement services for disadvantaged youth.3 In June, Kenyan President Uhuru Kenyatta launched the Young Africa Works program, a public-private partnership for youth employees between the Mastercard Foundation, the Kenyan government and the private sector. Within the next five years, the program aims to groom and place five million young Kenyans in "dignified and fulfilling work." 4 The MasterCard Foundation, along with two Kenyan banks — Equity Bank and Kenya Commercial Bank, as well as their respective foundations — will provide about $1 billion in capital, business development services and market linkages for the program. The aim is to create these jobs for youth employees, which will also help over 200,000 micro-, small- and medium-scale enterprises strengthen their productivity, sustainability and creation growth.4 The international hotel industry is one sector that's nurturing the development of the continent's youth, as hoteliers expand into Africa's emerging markets, according to Jan Van Der Putten, Hilton's VP of Operations for Africa and Indian Ocean.5 Hilton now has 46 hotels open across Africa, including sites in Morocco, Kenya, Zambia and Botswana, with plans to more than double that amount in the next five years. Expansions in tourism and hospitality will not only boost socioeconomic growth, but it will also provide meaningful employment opportunities. As such, it's paramount to foster an environment to help African youth workers succeed. Training the Youth of Today   In addition to basic workforce skills, the emerging digital economy also requires youth employees to learn the skills of digital fluency, creative thinking, problem-solving, collaboration, empathy and adaptability.6 Simbarashe Moyo, a Mandela Rhodes Scholar at the University of the Witwatersrand, notes, "Although countries like Rwanda and Kenya are already making considerable progress in preparing their youth for the digital economy and the future of work, more African countries are yet to take meaningful action to address the yawning skills-gap and digital infrastructure inadequacies bedeviling the continent."7 Moyo advises that African nations need to equip youth for the future of work. First, they must create responsive education systems that will equip the youth with the proper skills and a sense of responsibility. They also need to develop a nationwide digital infrastructure to improve interconnectivity between nations. In addition, to keep stakeholders in check within the expanding digital economy, they need to formulate proper regulatory policies. Lastly, they need to optimize public-private cooperation to support digital training initiatives on a larger scale. "Collaboration between governments, multinational development banks and the private sector will create room for innovative financial models which promote upskilling among Africa's youth," Moyo writes. "This will also reduce inequalities caused by duplication of efforts, especially when establishing digital infrastructure in African nations. Public-private cooperation will therefore enable more young Africans to access training programs and digital infrastructure." Empowering the New Workforce   Employers can also take advantage of the rising use of mobile phones among Africa's youth by providing training and development programs via mobile apps. Workers in South Africa echo the sentiments of those in other countries who rate opportunities to learn new skills and technologies as the number one way they can thrive at work, according to Mercer's Global Talent Trends 2019 report. The survey also shows that workers like to learn independently, and they want their employers to provide platforms enabled with access to curated knowledge and expert sources. A combination of both employer- and employee-driven training can give people more control over what and how they learn while tying their development directly to organizational goals. Mercer's research also reports that 99% of companies are taking action to prepare for the future of work, and they're doing so by identifying gaps between current and required skills supply, developing future-focused people strategies and adapting skill requirements to new technologies and business objectives. For multinational organizations interested in expanding in Africa, these steps will prove critical to upskilling, enabling and empowering the youth workforce. By taking the time to understand what Africa's youth employees need and developing integrated people-centric strategies for them, multinationals can be at the forefront of developing the continent's workforce. This will allow them to meet stakeholders' needs today, while also building a bigger, better and smarter workforce for tomorrow. The long-term benefits will result in a completely reinvented Africa — with engaged workers as far as the eye can see. Sources: 1. "Africa's Youth Unemployment Rate to Exceed 30% in 2019: ILO," 7Dnews, 4 Apr. 2019, https://7dnews.com/news/africa-s-youth-unemployment-rate-to-exceed-30-in-2019-ilo. 2. D, Sourav. "Youth unemployment a 'national crisis' in South Africa, says Ramaphosa," Financial World, 18 Jun. 2019, https://www.financial-world.org/news/news/economy/2276/youth-unemployment-a-national-crisis-in-south-africa-says-ramaphosa/. 3. "Youth Employment in Africa." International Labour Organization, https://www.ilo.org/africa/areas-of-work/youth-employment/lang--en/index.htm. 4. Mbewa, David O. "President Kenyatta launches program to tackle Kenya's youth unemployment," CGTN, 20 Jun. 2019, https://africa.cgtn.com/2019/06/20/president-kenyatta-launches-program-to-tackle-kenyas-youth-unemployment/. 5. "Exclusive: An interview with Hilton's Jan van der Putten on expansion in Africa," Africa Outlook Magazine,7 Apr. 2019, https://www.africaoutlookmag.com/news/exclusive-an-interview-with-hiltons-jan-van-der-putten-on-expansion-in-africa. 6. "World Development Report 2019: The Changing Nature of Work," The World Bank Group, 2019, https://www.worldbank.org/en/publication/wdr2019. 7. Moyo, Simbarashe. "4 ways Africa can prepare its youth for the digital economy," World Economic Forum, 29 May 2019, https://www.weforum.org/agenda/2019/05/4-ways-africa-can-prepare-its-young-people-for-the-digital-economy/.

Michael Braun | 14 Nov 2019

We outlined six challenges in connection with international project assignments in part 1 of this article. To extend the overview of issues to be considered when administering international project assignments, let's dive deeper into another obligation for companies and their global mobility managers: the duty of care. Challenge 7: Duty of Care   Companies are obliged to ensure the employees' safety, health and well-being abroad. Appropriate location information, safety briefings, security trainings and health insurance need to be provided when transferring project assignees internationally, especially if they are transferred to hardship locations. Mobility managers should consider synergies when setting up such health and safety programs. Travel insurance, for example, can be offered to both business travelers and international assignees staying abroad for less than a certain amount of days (usually 90 days). Furthermore, a group insurance for the remaining assignees ensures a cost-efficient funding. You also profit from security and assistance programs offered by many health insurers, in addition to their core insurance service. And did you know that security providers usually extend their service beyond the medical service? They often provide information about the security situation in a given location and make tracking solutions, as well as security updates, available. Some providers even offer practical assistance in case of an evacuation. Employee Protection   The mobility of employees in global business life has become "borderless" in many respects. In order to take this development into account, the forms of insurance are constantly changing and expanding. The increasing number of projects, for example, which occur with a different frequency depending on the industry, represents a special challenge insurance-wise. The assignment period, the home country and the desired scope of coverage play a major role in the choice of an insurance solution. In the following, we will examine health, disability and death cover options available for international project assignments and other types of international assignments. Medical Cover   To minimize complexity, we focus on business travel assistance and international private medical insurance/expat health insurance for long-term assignees. Business Travel Assistance   International insurers offering business travel assistance use their existing global networks to master the challenges of global coverage. Compared to traditional travel health insurance, business travel assistance offers a number of advantages. Employers can, for example, extend the number of covered travel days to up to 1 year and significantly increase the number of potential benefits to include, such as the following: ·  Flat amounts are paid in the case of an accident and for surviving dependents. They are regarded as immediate aid for direct costs incurring and are intended to pre-empt the company accident insurance which offers higher benefits but also requires longer examination processes. ·  Liability insurance is necessary in certain countries as an obligatory requirement for obtaining a visa. ·  Compensation for loss of luggage and/or travel delays is an additional goodie for travelers. If these aspects are covered by insurance, any claims will be addressed directly to the insurance company — reducing the administration effort in your company. These additional benefits are tailored to the specific needs of business travelers and international project assignees. However, the main part of business travel assistance and its risk premium remains the medical emergency including some assistance services. Existing assistance agreements have to be harmonized with business travel assistance and transparently communicated. Processes, reimbursement practices, cost management and the collection of recourse claims have to be clearly defined to effectively reduce administration. The payment of benefits within business travel assistance is linked to so-called "unforeseeable" events. This excludes any pre-existing condition or the reimbursement of regular medication. Individual registration is not required for such a group plan. Though unusual in international project assignments, accompanying family members can also be covered by business travel assistance. Medical Solution for Long-term Project Assignments   If an international project assignments is planned for a longer period of time or improved coverage is required for individual reasons, we recommend using an existing expat health plan or obtaining an individual solution. Precautions for safety, health and integrity are the hallmarks of a company, especially when working on projects in hardship countries. A number of globally active and specialized international providers are available. The benefits of a robust expat health plan are comparable to those of a comprehensive global private health insurance plan. Use the criteria described in this article to choose the most appropriate insurance solution and a provider offering the period of coverage as needed. Ideally, the level of coverage provided for an international assignment or an international project assignment is outlined in the company's policy guidelines. Disability and Death Cover   Though medical insurance is of major importance for international assignees in most companies, disability and death cover should also be considered. For employees who are no longer covered by their home-country's social security system, there is a risk of gaps in the benefits coverage regarding disability or death — that is, securing an adequate long-term income for assignees in case of permanent disability and for their families in case of death. The potential gap is even bigger if supplemental home country plans are simultaneously discontinued. Even if employees join the host country's social security system, you should note that these systems often include waiting periods for death and disability coverage. If such waiting periods do not exist, for example, due to European agreements, be aware that the benefit levels can still significantly differ to what has already been accrued in the home country. Employers need to identify and close gaps, either through local coverage or supplemental global risk coverage plans. Gaps also exist for so-called "global nomads," those assignees going on numerous consecutive assignments. Global nomads are facing benefits fragmentation at its worst, especially gaps in state and supplemental pension benefits due to not being enrolled in local plans or not reaching local vesting conditions. In addition, those employees typically do not have access to suitable long-term financing vehicles that allow for building up adequate private retirement savings with the flexibility to contribute from multiple locations. Companies with a larger global nomad population can use offshore International Pension Plan arrangements to close this gap. As the market has developed significantly over the last decade, streamlined products are available today also for smaller groups of assignees and with limited required administration. Conclusion   These are demanding and challenging times for mobility experts. The number of international project assignments is increasing and calls for special arrangements. However, these are also great times to demonstrate your expertise. To make things easier, look at what you already have: Some solutions are already available for internationally mobile employees in your company and can be used for international project assignments, as well. In the long run, mobility managers should focus on finding and implementing appropriate international project assignment solutions to ease the initial pain mainly caused by the additional workload. As is often true in global mobility, there is no-one-size-fits-all approach, but many options to tailor your (almost) perfect one. If you'd like to learn more, click here to get in touch with a Mercer consultant.  

Juliane Gruethner | 31 Oct 2019

International project assignments are one of the current hot topics in global mobility management. A quick poll in conjunction with our Expatriate Management Conference in 2018 showed that, in an increasing number of organizations, the mobility function is responsible for the administration of international project assignments. Nearly 90% of the responding mobility managers confirmed that their organizations have international project assignments, and 80% of respondents are responsible for their administration. With this trend, new challenges are emerging. Let's take a look. Challenge 1: Common Understanding of Terminology   There does not seem to be a common definition of an international project assignment. Mercer's poll showed that about 40% of the responding businesses define an international project assignment as simply an international assignment to a project, regardless of its duration, while 60% specified a period of time. Some organizations also differentiate between project assignments for an external client and internal projects. Apart from the lack of clear definitions, most businesses (73%) do not have any formal policy or regulations for their international project assignments. If they exist, they often overlap with those for traditional long- or short-term assignments. No matter how you approach international project assignments, make sure that your company has a precise definition and corresponding guidelines in place that allow for consistent handling and fair treatment of all internationally mobile employees. For this discussion, we define international project assignments as assignments to client projects abroad, whereas assignments to projects abroad within one organization are called international assignments. Challenge 2: Fair and Equal Treatment   Determining an individual compensation package for an international project assignment differs from traditional forms of international assignment compensation. Some employees may have been hired especially or exclusively for project work. Others are assigned to work on international projects based on short- or long-term assignments or commuter packages. Those differences can lead to inconsistencies in compensation between the assignees — depending on where they come from and how their project assignment is defined in the home country. Clear internal regulations differentiating target groups and assignment types increase the transparency of the mobility program and ultimately increase its acceptance among employees. Challenge 3: Determining the Return on Investment   In Mercer's 2017 Worldwide Survey of International Assignment Policies and Practices, the majority of respondents stated that a business case is required for an international assignment (62%) and that they prepare corresponding cost estimates (96%). However, only 43% track the actual costs against budgeted costs, and only 2% have defined how the return on investment (ROI) of an international assignment is quantified. It is often linked to a mid- to long-term perspective and not easily expressed in pure economic figures. That said, it is possible to track success by means of faster promotions or higher retention rates of expatriates. The ROI of international project assignments, in contrast, is easier to measure. Actual costs can be compared to the original estimate and the price paid by the client. This transparency leads to higher cost pressure, which calls for a greater flexibility with respect to the applicability of existing internal rules and regulations to be able to offer projects at a competitive price. In conclusion, the short-term business value (winning and conducting the project in a profitable manner) and the mid- to long-term value of international assignments (for example, filling a skills gap in the host location or employee development) have to be balanced diligently, which can be achieved by a thoroughly segmented international assignment policy. Challenge 4: Management of Large Numbers of International Project Assignments   Depending on the industry sector, the number of international project assignments in an organization can be extremely high. One of the respondents in the conference poll indicated that they handle about 23,000 international project assignments per year. Therefore, the resources needed in the mobility function will have to be increased or resources reallocated once mobility takes over the responsibility for international project assignments. You should also review the service delivery model, as well as individual procedures, and if necessary, adapt them to enhance the efficiency and effectiveness of the international project assignment administration. Using the right technology can also help streamline processes and make a large number of international project assignments manageable. Challenge 5: Deployment to Unknown Places   International project assignments take place not only in the company's regular assignment destinations but also in new locations at client sites. The company, therefore, may not have any resources in or knowledge about the location. Client resources or external vendors can be used to obtain necessary information or perform necessary services, such as immigration or payroll. In addition, if employees perform services in hardship locations, their safety and security need to be considered. Challenge 6: A Matter of Compliance   When it comes to international project assignments, mobility is regularly asked to deliver results even faster than for traditional international assignments, because requirements tend to come up or change at short notice. However, compliance is as complex as for any other international assignments and needs to be evaluated individually. This is true for external as well as internal compliance issues. Although compliance is regarded as one of the most important aspects by many mobility managers, we have seen that compliance is just the tip of the iceberg, and the list of challenges presented in this first part of the article is not exhaustive. We continue our considerations with the companies' duty of care and possible solutions in part 2  of this article. If you'd like to learn more, click here to get in touch with a Mercer consultant.

More from Voice on Growth

Didintle Kwape | 14 Nov 2019

Africa's youth employees are a valuable, ample talent source that multinational companies can tap as they expand their operations throughout the continent. Record numbers of teenagers and young adults in Africa are either unemployed or underemployed but are willing to work if given the chance. In South Africa alone, where the unemployment rate is expected to grow beyond 30% this year, two-thirds of the jobless are between 15 and 24 years of age.1 Realizing the Untapped Talent Pool   "We are very much alive to the fact that youth unemployment is indeed a national crisis," stated South African President Cyril Ramaphosa in June 2019.2 Governments across the continent are now rewriting labor laws and breaking down bureaucratic hurdles to make hiring youth less cumbersome for both multinational corporations and local small businesses. They are also teaming up with nonprofit organizations to nurture young talent and teach necessary workforce skills. Alliances are being forged to aid these efforts, such as the International Labour Organization's (ILO) partnership with the African Development Bank, the African Union Commission and the United Nations Economic Commission for Africa (UNECA). Together, they hope to address youth employment at regional and national levels. To better prepare youth for work, the ILO provides employment services, skills development and labor market training — with a focus on technical and vocational education, apprenticeship and job placement services for disadvantaged youth.3 In June, Kenyan President Uhuru Kenyatta launched the Young Africa Works program, a public-private partnership for youth employees between the Mastercard Foundation, the Kenyan government and the private sector. Within the next five years, the program aims to groom and place five million young Kenyans in "dignified and fulfilling work." 4 The MasterCard Foundation, along with two Kenyan banks — Equity Bank and Kenya Commercial Bank, as well as their respective foundations — will provide about $1 billion in capital, business development services and market linkages for the program. The aim is to create these jobs for youth employees, which will also help over 200,000 micro-, small- and medium-scale enterprises strengthen their productivity, sustainability and creation growth.4 The international hotel industry is one sector that's nurturing the development of the continent's youth, as hoteliers expand into Africa's emerging markets, according to Jan Van Der Putten, Hilton's VP of Operations for Africa and Indian Ocean.5 Hilton now has 46 hotels open across Africa, including sites in Morocco, Kenya, Zambia and Botswana, with plans to more than double that amount in the next five years. Expansions in tourism and hospitality will not only boost socioeconomic growth, but it will also provide meaningful employment opportunities. As such, it's paramount to foster an environment to help African youth workers succeed. Training the Youth of Today   In addition to basic workforce skills, the emerging digital economy also requires youth employees to learn the skills of digital fluency, creative thinking, problem-solving, collaboration, empathy and adaptability.6 Simbarashe Moyo, a Mandela Rhodes Scholar at the University of the Witwatersrand, notes, "Although countries like Rwanda and Kenya are already making considerable progress in preparing their youth for the digital economy and the future of work, more African countries are yet to take meaningful action to address the yawning skills-gap and digital infrastructure inadequacies bedeviling the continent."7 Moyo advises that African nations need to equip youth for the future of work. First, they must create responsive education systems that will equip the youth with the proper skills and a sense of responsibility. They also need to develop a nationwide digital infrastructure to improve interconnectivity between nations. In addition, to keep stakeholders in check within the expanding digital economy, they need to formulate proper regulatory policies. Lastly, they need to optimize public-private cooperation to support digital training initiatives on a larger scale. "Collaboration between governments, multinational development banks and the private sector will create room for innovative financial models which promote upskilling among Africa's youth," Moyo writes. "This will also reduce inequalities caused by duplication of efforts, especially when establishing digital infrastructure in African nations. Public-private cooperation will therefore enable more young Africans to access training programs and digital infrastructure." Empowering the New Workforce   Employers can also take advantage of the rising use of mobile phones among Africa's youth by providing training and development programs via mobile apps. Workers in South Africa echo the sentiments of those in other countries who rate opportunities to learn new skills and technologies as the number one way they can thrive at work, according to Mercer's Global Talent Trends 2019 report. The survey also shows that workers like to learn independently, and they want their employers to provide platforms enabled with access to curated knowledge and expert sources. A combination of both employer- and employee-driven training can give people more control over what and how they learn while tying their development directly to organizational goals. Mercer's research also reports that 99% of companies are taking action to prepare for the future of work, and they're doing so by identifying gaps between current and required skills supply, developing future-focused people strategies and adapting skill requirements to new technologies and business objectives. For multinational organizations interested in expanding in Africa, these steps will prove critical to upskilling, enabling and empowering the youth workforce. By taking the time to understand what Africa's youth employees need and developing integrated people-centric strategies for them, multinationals can be at the forefront of developing the continent's workforce. This will allow them to meet stakeholders' needs today, while also building a bigger, better and smarter workforce for tomorrow. The long-term benefits will result in a completely reinvented Africa — with engaged workers as far as the eye can see. Sources: 1. "Africa's Youth Unemployment Rate to Exceed 30% in 2019: ILO," 7Dnews, 4 Apr. 2019, https://7dnews.com/news/africa-s-youth-unemployment-rate-to-exceed-30-in-2019-ilo. 2. D, Sourav. "Youth unemployment a 'national crisis' in South Africa, says Ramaphosa," Financial World, 18 Jun. 2019, https://www.financial-world.org/news/news/economy/2276/youth-unemployment-a-national-crisis-in-south-africa-says-ramaphosa/. 3. "Youth Employment in Africa." International Labour Organization, https://www.ilo.org/africa/areas-of-work/youth-employment/lang--en/index.htm. 4. Mbewa, David O. "President Kenyatta launches program to tackle Kenya's youth unemployment," CGTN, 20 Jun. 2019, https://africa.cgtn.com/2019/06/20/president-kenyatta-launches-program-to-tackle-kenyas-youth-unemployment/. 5. "Exclusive: An interview with Hilton's Jan van der Putten on expansion in Africa," Africa Outlook Magazine,7 Apr. 2019, https://www.africaoutlookmag.com/news/exclusive-an-interview-with-hiltons-jan-van-der-putten-on-expansion-in-africa. 6. "World Development Report 2019: The Changing Nature of Work," The World Bank Group, 2019, https://www.worldbank.org/en/publication/wdr2019. 7. Moyo, Simbarashe. "4 ways Africa can prepare its youth for the digital economy," World Economic Forum, 29 May 2019, https://www.weforum.org/agenda/2019/05/4-ways-africa-can-prepare-its-young-people-for-the-digital-economy/.

Michael Braun | 14 Nov 2019

We outlined six challenges in connection with international project assignments in part 1 of this article. To extend the overview of issues to be considered when administering international project assignments, let's dive deeper into another obligation for companies and their global mobility managers: the duty of care. Challenge 7: Duty of Care   Companies are obliged to ensure the employees' safety, health and well-being abroad. Appropriate location information, safety briefings, security trainings and health insurance need to be provided when transferring project assignees internationally, especially if they are transferred to hardship locations. Mobility managers should consider synergies when setting up such health and safety programs. Travel insurance, for example, can be offered to both business travelers and international assignees staying abroad for less than a certain amount of days (usually 90 days). Furthermore, a group insurance for the remaining assignees ensures a cost-efficient funding. You also profit from security and assistance programs offered by many health insurers, in addition to their core insurance service. And did you know that security providers usually extend their service beyond the medical service? They often provide information about the security situation in a given location and make tracking solutions, as well as security updates, available. Some providers even offer practical assistance in case of an evacuation. Employee Protection   The mobility of employees in global business life has become "borderless" in many respects. In order to take this development into account, the forms of insurance are constantly changing and expanding. The increasing number of projects, for example, which occur with a different frequency depending on the industry, represents a special challenge insurance-wise. The assignment period, the home country and the desired scope of coverage play a major role in the choice of an insurance solution. In the following, we will examine health, disability and death cover options available for international project assignments and other types of international assignments. Medical Cover   To minimize complexity, we focus on business travel assistance and international private medical insurance/expat health insurance for long-term assignees. Business Travel Assistance   International insurers offering business travel assistance use their existing global networks to master the challenges of global coverage. Compared to traditional travel health insurance, business travel assistance offers a number of advantages. Employers can, for example, extend the number of covered travel days to up to 1 year and significantly increase the number of potential benefits to include, such as the following: ·  Flat amounts are paid in the case of an accident and for surviving dependents. They are regarded as immediate aid for direct costs incurring and are intended to pre-empt the company accident insurance which offers higher benefits but also requires longer examination processes. ·  Liability insurance is necessary in certain countries as an obligatory requirement for obtaining a visa. ·  Compensation for loss of luggage and/or travel delays is an additional goodie for travelers. If these aspects are covered by insurance, any claims will be addressed directly to the insurance company — reducing the administration effort in your company. These additional benefits are tailored to the specific needs of business travelers and international project assignees. However, the main part of business travel assistance and its risk premium remains the medical emergency including some assistance services. Existing assistance agreements have to be harmonized with business travel assistance and transparently communicated. Processes, reimbursement practices, cost management and the collection of recourse claims have to be clearly defined to effectively reduce administration. The payment of benefits within business travel assistance is linked to so-called "unforeseeable" events. This excludes any pre-existing condition or the reimbursement of regular medication. Individual registration is not required for such a group plan. Though unusual in international project assignments, accompanying family members can also be covered by business travel assistance. Medical Solution for Long-term Project Assignments   If an international project assignments is planned for a longer period of time or improved coverage is required for individual reasons, we recommend using an existing expat health plan or obtaining an individual solution. Precautions for safety, health and integrity are the hallmarks of a company, especially when working on projects in hardship countries. A number of globally active and specialized international providers are available. The benefits of a robust expat health plan are comparable to those of a comprehensive global private health insurance plan. Use the criteria described in this article to choose the most appropriate insurance solution and a provider offering the period of coverage as needed. Ideally, the level of coverage provided for an international assignment or an international project assignment is outlined in the company's policy guidelines. Disability and Death Cover   Though medical insurance is of major importance for international assignees in most companies, disability and death cover should also be considered. For employees who are no longer covered by their home-country's social security system, there is a risk of gaps in the benefits coverage regarding disability or death — that is, securing an adequate long-term income for assignees in case of permanent disability and for their families in case of death. The potential gap is even bigger if supplemental home country plans are simultaneously discontinued. Even if employees join the host country's social security system, you should note that these systems often include waiting periods for death and disability coverage. If such waiting periods do not exist, for example, due to European agreements, be aware that the benefit levels can still significantly differ to what has already been accrued in the home country. Employers need to identify and close gaps, either through local coverage or supplemental global risk coverage plans. Gaps also exist for so-called "global nomads," those assignees going on numerous consecutive assignments. Global nomads are facing benefits fragmentation at its worst, especially gaps in state and supplemental pension benefits due to not being enrolled in local plans or not reaching local vesting conditions. In addition, those employees typically do not have access to suitable long-term financing vehicles that allow for building up adequate private retirement savings with the flexibility to contribute from multiple locations. Companies with a larger global nomad population can use offshore International Pension Plan arrangements to close this gap. As the market has developed significantly over the last decade, streamlined products are available today also for smaller groups of assignees and with limited required administration. Conclusion   These are demanding and challenging times for mobility experts. The number of international project assignments is increasing and calls for special arrangements. However, these are also great times to demonstrate your expertise. To make things easier, look at what you already have: Some solutions are already available for internationally mobile employees in your company and can be used for international project assignments, as well. In the long run, mobility managers should focus on finding and implementing appropriate international project assignment solutions to ease the initial pain mainly caused by the additional workload. As is often true in global mobility, there is no-one-size-fits-all approach, but many options to tailor your (almost) perfect one. If you'd like to learn more, click here to get in touch with a Mercer consultant.  

Juliane Gruethner | 31 Oct 2019

International project assignments are one of the current hot topics in global mobility management. A quick poll in conjunction with our Expatriate Management Conference in 2018 showed that, in an increasing number of organizations, the mobility function is responsible for the administration of international project assignments. Nearly 90% of the responding mobility managers confirmed that their organizations have international project assignments, and 80% of respondents are responsible for their administration. With this trend, new challenges are emerging. Let's take a look. Challenge 1: Common Understanding of Terminology   There does not seem to be a common definition of an international project assignment. Mercer's poll showed that about 40% of the responding businesses define an international project assignment as simply an international assignment to a project, regardless of its duration, while 60% specified a period of time. Some organizations also differentiate between project assignments for an external client and internal projects. Apart from the lack of clear definitions, most businesses (73%) do not have any formal policy or regulations for their international project assignments. If they exist, they often overlap with those for traditional long- or short-term assignments. No matter how you approach international project assignments, make sure that your company has a precise definition and corresponding guidelines in place that allow for consistent handling and fair treatment of all internationally mobile employees. For this discussion, we define international project assignments as assignments to client projects abroad, whereas assignments to projects abroad within one organization are called international assignments. Challenge 2: Fair and Equal Treatment   Determining an individual compensation package for an international project assignment differs from traditional forms of international assignment compensation. Some employees may have been hired especially or exclusively for project work. Others are assigned to work on international projects based on short- or long-term assignments or commuter packages. Those differences can lead to inconsistencies in compensation between the assignees — depending on where they come from and how their project assignment is defined in the home country. Clear internal regulations differentiating target groups and assignment types increase the transparency of the mobility program and ultimately increase its acceptance among employees. Challenge 3: Determining the Return on Investment   In Mercer's 2017 Worldwide Survey of International Assignment Policies and Practices, the majority of respondents stated that a business case is required for an international assignment (62%) and that they prepare corresponding cost estimates (96%). However, only 43% track the actual costs against budgeted costs, and only 2% have defined how the return on investment (ROI) of an international assignment is quantified. It is often linked to a mid- to long-term perspective and not easily expressed in pure economic figures. That said, it is possible to track success by means of faster promotions or higher retention rates of expatriates. The ROI of international project assignments, in contrast, is easier to measure. Actual costs can be compared to the original estimate and the price paid by the client. This transparency leads to higher cost pressure, which calls for a greater flexibility with respect to the applicability of existing internal rules and regulations to be able to offer projects at a competitive price. In conclusion, the short-term business value (winning and conducting the project in a profitable manner) and the mid- to long-term value of international assignments (for example, filling a skills gap in the host location or employee development) have to be balanced diligently, which can be achieved by a thoroughly segmented international assignment policy. Challenge 4: Management of Large Numbers of International Project Assignments   Depending on the industry sector, the number of international project assignments in an organization can be extremely high. One of the respondents in the conference poll indicated that they handle about 23,000 international project assignments per year. Therefore, the resources needed in the mobility function will have to be increased or resources reallocated once mobility takes over the responsibility for international project assignments. You should also review the service delivery model, as well as individual procedures, and if necessary, adapt them to enhance the efficiency and effectiveness of the international project assignment administration. Using the right technology can also help streamline processes and make a large number of international project assignments manageable. Challenge 5: Deployment to Unknown Places   International project assignments take place not only in the company's regular assignment destinations but also in new locations at client sites. The company, therefore, may not have any resources in or knowledge about the location. Client resources or external vendors can be used to obtain necessary information or perform necessary services, such as immigration or payroll. In addition, if employees perform services in hardship locations, their safety and security need to be considered. Challenge 6: A Matter of Compliance   When it comes to international project assignments, mobility is regularly asked to deliver results even faster than for traditional international assignments, because requirements tend to come up or change at short notice. However, compliance is as complex as for any other international assignments and needs to be evaluated individually. This is true for external as well as internal compliance issues. Although compliance is regarded as one of the most important aspects by many mobility managers, we have seen that compliance is just the tip of the iceberg, and the list of challenges presented in this first part of the article is not exhaustive. We continue our considerations with the companies' duty of care and possible solutions in part 2  of this article. If you'd like to learn more, click here to get in touch with a Mercer consultant.

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