Career

Using Technology to Transform Human Resources

29 May, 2017
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“Without standardized technology, it is complex (if not impossible) for HR leaders to deliver much-needed analytics and global insights.”

In the 21st century, digital is the rule, not the exception. Gaming, self-driving vehicles, and the Internet of Things – all of which were once novelties – are all becoming more mainstream. On that note, intuitive, easy-to-use interfaces are expected, regardless of the platform or industry.

But how does that translate when it comes to human resources? Organizations are realizing that they need to apply technology to people management. Companies need to be more modern, and they are examining how they can better blend software, employee experience, and organizational strategy.

But when companies are large and span many countries, adopting new technologies can be complicated. In the long run, though, adopting better technologies can ultimately help the company be more efficient and better manage data.

The Evolution of Tech in HR
 

A study, Future Proofing HR: Bridging the Gap Between Employers and Employees, focused on technology that supports what is referred to as “Core HR” — the software application that manages the employee statement of record. Given an HRIS may address only employment compliance issues, many companies have expanded their systems to manage talent as well. For example, it may support applications for hiring, performance management, and training.

Technology has evolved in all areas of employee management, prompting HR departments to adopt new applications. In fact, despite the enormity of the task, Mercer’s recent Global Talent Trends research showed that over half (63%) of participants surveyed are planning new investments in HR technology.

Mercer, partnered with Human Capital Media, the research arm of Workforce magazine. They conducted a global survey, the Human Resources Information System Survey, in which close to 500 HR executives in 19 countries were asked about their current or planned HRIS transformation.

Out of the 500 participants in the Human Capital Media study, 45% had implemented a new HRIS system within the last five years. Of those, the majority had deployed that system in the cloud, using the increasingly popular Software-as-a- Service (SaaS) delivery model. Thirty-four percent of respondents indicated that they intend to purchase a new HRIS system within the next three years.

Drivers for Change
 

No companies are exactly the same, obviously, and their reasons for changing their HR practices or technologies will vary. In most cases, there are several catalysts for this change.

Mercer research has found that the predominant driver for change of the HRIS system was the desire for a single system of record for all data globally. Often companies add new applications that are not integrated or have multiple HRIS systems in place — a common occurrence after corporate mergers or acquisitions.

Disparate systems across an organization can create data islands, which can lead to employee information existing in different places. This can make accurate reporting and analysis elusive.

Aging applications was another driver. On-premise or legacy systems, often heavily customized, can no longer meet today’s needs. With high maintenance costs, and often few updated features, these systems are prime targets for replacement. At a time when an improved user experience is viewed as critical, the unintuitive interfaces in these older systems further speeded their replacement.

Whatever the primary driver for deploying a new HRIS, clarity of purpose is a requirement. Technology in and of itself is never the answer, but it can be a catalyst for change. Deploying a new system is an opportunity to simplify existing processes.

Keeping things simple is key. If a system needs too much explanation, it is probably over-engineered. To keep things efficient, it’s important to ask, “What is the minimum we can do to get this right?” To make sure it’s intuitive, ask, “How can I do it right without having to be trained?”

Roadblocks
 

When implementing a new HRIS, three difficulties typically arise for HR professionals:

  1. 1. Transforming or realigning the business processes
  2. 2. Deploying the new technology that supports those processes
  3. 3. Managing the change
     

Implementation efforts often create surprises. Over 25% of respondents in the Human Resources Information System Survey indicated that the deployment of their technology took significantly more time than anticipated.

Some things are predictably difficult in any technology implementation. For example, getting the system to perform as planned and integrating technology is always challenging. Planning can help prepare, but rogue integrations in the previous system are common.

Despite hiccups, it took the majority of organizations studied less than 12 months from signing the initial contract to fully implementing their new HRIS system, and half of the organizations took less than nine months, unlike the multi-year implementations of yesteryear.

Use of Outside Experts
 

Companies have often relied on outside expertise to design and implement their HR processes. Research found that organizations with more than 5,000 employees tended to use a consultant or implementation partner more frequently than smaller companies.

The reasons for engaging an external partner varied: a large majority (76%) used experts for the HRIS implementation, 39% used outside services to redesign HR processes, and 31% for HR service model design and transformation.

The Path Forward
 

Organizations that are updating their HRIS systems recognize the need for change. As companies grow and face changing regulations, traditional methods of keeping employee records are no longer sufficient.

Moving to a single system allows organizations to leverage technology and improve the employee experience. Without standardized technology, it is complex (if not impossible) for HR leaders to deliver much-needed analytics and global insights.

As the future becomes less about talent management and more about talent flow, getting fit for implementation and managing the change journey will have a great effect on the reach and impact of your digital HR strategy.

A CASE STUDY
 

Consider this case:

A multinational organization with about 130,000 employees and multiple lines of business decided to implement a new Human Resource Information System (HRIS) across the more than 100 countries where they operated. A key driver in this decision was the ability to have an enterprise-wide view of talent.

Given how large the company was, these 130,000 employees had 50,000 distinct job titles. Any data analytics would be meaningless without a cleanup. Therefore, the organization redesigned its job architecture and job library with an eye toward the new framework.

The company built a job library of about 800 jobs for its new HRIS. The new job library has become integral to the organization, making implementation of the HRIS easier, and helping the organization achieve its talent goals.

Today, the library is being used as the underpinning structure for a career architecture that will add value for employees seeking to build their skill portfolio within the company. This will help employees navigate their careers.

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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