EY Human Capital Conference 2012: Intercultural awareness - the key to successful international cooperation

2012 Human Capital Conference23–26 October

Intercultural awareness

The key to successful international cooperation

Disclaimer

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► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP.

Intercultural awarenessPage 2

Agenda

► Introduction► Increasing importance of global mobility in growth markets► Intercultural awareness: the key to successful

i t ti l tiinternational cooperation


Presenters

► Ulrike Hasbargen ► Dr. Fritz Audebertg► Ernst & Young GmbH► [email protected]

► ICUnet.AG► [email protected]


Ernst & Young Global Mobility Effectiveness Survey 2011Survey 2011

► Global mobility professionals from 350 companies responded to the survey.

► 45% of the respondents were from companies headquartered in Europe 34% in North America 14% in Asia Pacific 5% in SouthEurope, 34% in North America, 14% in Asia Pacific, 5% in South America and 2% in Africa.

► The participating companies come from a wide range of industry ( ) ( %)sectors with energy, chemicals and utilities (including mining) (21%);

financial and professional services (20%); retail and consumer products (12%); and technology (12%) most strongly represented.

► In keeping with previous years, the majority of survey respondents (54%) represent multinational organizations with more than 20,000 employeesemployees.

► The Ernst & Young Global Mobility Effectiveness Survey 2012 will be launched during this conference and confirms the trends.


What are the most frequently addressed issues for international assignees?issues for international assignees?

80%

Findings:I 2011 f il d

60%

80%

► In 2011, family- and spouse-related issues were reported by 49% of respondents to be th t f tl

49% 47%

36%32%

40%

the most frequently addressed issue for international assignees.

14%9%

20%

0%Family-/spouse-related issues

Compensation package

Repatriation Location/cultural issues

Others Position-related issues (e.g.,

unsatisfactory position)

For the first time in the last four years, family- and spouse-related issues have overtaken compensation as the No 1 issue addressed by international assignees


compensation as the No. 1 issue addressed by international assignees.

Which of the following phases of the international process is the most important from your experience?

Findings

3%

Findings:► The importance of the

selection process has increased from 24%

22%

7%3%

Selection of the assignees

P ti ( d t )

in 2010 to 44% in 2011.

► Respondents have reduced recognition of

44% Preparation (pre-departure)

Assignment

Repatriation

reduced recognition of the importance of the repatriation and post-repatriation phase, down from 16%

24% Post-repatriation down from 16% respondents 7% in 2010.

There has been a shift in views regarding the most important phase of the international assignment process which is now seen to be the selection of assignees


assignment process, which is now seen to be the selection of assignees.

Are there changes in the number of assignees deployed into growth market countries in comparison to other locations?

Findings: Over the last 12th

Expected in next2 3

► 61% of companies reported that they had seen an increase in the number of

months 2-3 years

29%

3%4%

the number of assignees deployed into growth market countries over the last 12 months

29%35%

the last 12 months► A further 68% of

companies reported that they expect to see an increase in the

68%61%

see an increase in the number of assignees deployed into growth markets in the next tow to three years

No change

Yes, we expect to see an increase

Yes, we expect to see a decreasetow to three years.

Assignments touching the growth market locations of Brazil, Russia, India, China and Africa are increasing as companies try to compete in these rapidly growing economies


Africa are increasing, as companies try to compete in these rapidly growing economies.

Growth in the number of inbound assignees into each of the following growth market countries

80%

90%

Findings:► India is the fastest

71%

80%

75%

60%

70%

80%Brazil

Russia

► India is the fastest growing market for inbound assignees, with an 80% projected increase between

43%40%

50%

60%India

China

increase between 2010 and 2014.

► Africa shows 75% growth in the same

i d d B il

23%20%

30%Africa

period, and Brazil shows 71% growth.

0%

10%

March 2010 March 2011 Projected 2014

India is the fastest growing market for inbound assignees, followed by Africa.


What are the number of historical and projected inbound assignees into each of the following growth markets?

2830Findings:► In 2011, China had the

highest number of i b d i

22

27 27 28

25

30

inbound assignees with an average of 27 assignees per company.

16

13

18

12

18

15

20March 2010

► Africa has the highest projected number of inbound assignees for 2014 with an

7 7

108 8

1210

10March 2011

for 2014 with an average of 28 assignees per company. 0

5

Brazil Russia India China Africa

Projected 2014

China currently has the highest number of inbound assignees per company; however,Africa is expected to overtake within the next three years to become the top growth


market destination for inbound assignees.

Assignment drivers inbound into growth markets*markets

Findings:*Multiple answers possible

Findings:► 83% of companies

report that assignments into

h k

83%79%

70%

93%

80%

100%

growth markets are most often for strategic/managerial purposes.

70%

60%

► Other survey findings showed that companies were mainly sending

30%

7%

17%21%

20%

40%

mainly sending senior employees on long-term assignments into growth markets.

7%

0%Strategic/managerial Project based Developmental Other

Most common drivers Least common drivers

Project-based

growth markets.

A clear trend may be observed toward companies investing significant senior talent in strategically driven assignments in order to compete in rapidly rising economies



strategically driven assignments in order to compete in rapidly rising economies.

How many historical and projected outbound assignees are from each of the following growth market countries?

Findings 40Findings:► In 2011, India has the

highest number of outbound assignees

3032

34

25

30

35

outbound assignees with an average of 32 assignees per company.

I di ti t 9 1015

20

25

► India continues to have the highest projected number of outbound assignees f 2014 ith

53

5 65 46 76 5

9 10

0

5

10

C ffor 2014 with an average of 34 assignees per company.

Brazil Russia China Africa India

March 2010 March 2011 Projected 2014

India has significantly higher numbers of outbound assignees than other growth market locations


locations.

Assignment drivers outbound from growth markets*marketsFindings:

A i t d i f

*Multiple answers possible100%

► Assignment drivers for assignments outbound from growth markets are most commonly t t i / i l

69% 68% 67%

75%80%

strategic/managerial (69%), project-based (68%) and developmental (67%).

40%

60%

► Outbound assignments from growth markets more frequently involve

25%31% 32% 33%

20%

40%

q yjunior assignees acquiring experiences and skills to bring back

0%Strategic/managerial Project based Developmental Other


Project-based

gto their countries.

In comparison to assignments inbound into growth markets, outbound assignments are more often driven by developmental reasons



more often driven by developmental reasons.

Seite 1

Breaking the barriers Cultural specifics in international development of

trust

Dr. Fritz Audebert ICUnet.AG

2012 Human Capital conference 23-26 October

Presenter

Presentation Notes

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Page 2

One crucial challenge for expatriates and their families

work life balance

long working hours, much trouble shooting quality time for family life

Darling, how can you make sure to have

more dinners together with us?

Page 3

Expatriates and spouses – Why do their time budgets not match ?

available leisure time (typical case)

spouse

Start of international assignment

assignee

End of international assignment

Assignee New projects, new teams consolidation Preparation of return or next assignment

Spouse Arrangements of private life

(too) much time Start of activities: professional, charity, local communities

Preparation of return or next assignment

Page 4

H ow can expatriates prevent their stress stage?

Risk: poor work – life balance high performance expectations trouble shooting change management culture shock strong need for family time

Good news: Expatriates can save time and energy if they develop trust. For the development of trust, professionalism is crucial. It must be coupled with openness to host expectations and curiousity to the personal environments of local stakeholders.

Page 5

Criteria for trust are diverse – at different destinations

Guangzhou, China

St Petersburg, Russia

Munich, Germany

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http://images.google.de/imgres?imgurl=http://www.nationalflaggen.de/pix/flaggen/flagge_deutschland_001.gif&imgrefurl=http://www.nationalflaggen.de/deutschland.htm&usg=__N1tEN9FCdwEO1_OHfV3ZEV-cXPk=&h=333&w=500&sz=2&hl=de&start=1&um=1&tbnid=ZECqfpW_eZ4jHM:&tbnh=87&tbnw=130&prev=/images%3Fq%3Dflagge%2Bdeutschalnd%26um%3D1%26hl%3Dde%26sa%3DN

Page 6

Breaking barriers – selected trust criteria for incoming expatriates

Munich

St. Petersburg

Guangzhou separation business vs private

schedules

checklists

perfect preparation attentive to signals

ambition

latest technology

personal conversations

speed

event oriented

care

long-term cooperation

Page 7

Can we identify one single most important mark of confidence? It depends where you are.

Patterns of trust building which make expatriates more successful… one selected

business value

…makes the expatriate more successful …speed up problem solving …save time and energy …allow for a better work-life balance – on the long run.

trust driver – the local mark of confidence

friendship

efficiency

China

Germany

Russia

ambition

„sacrifice“ of private time invitations to

„special“ spaces „exceptional“

favours

Dr. Fritz Audebert fritz.audebert@ icunet.ag ICUnet.AG www.icunet.ag 11 offices | 140 employees | 24 business awards | 25 languages Berlin | Bremen | Cologne | Frankfurt | Fürth | H amburg | Leipzig | Passau | Shanghai | Stuttgart | Vienna

Thank you very much for your attention!

Questions


Business

EY Human Capital Conference 2012: Intercultural awareness - the key to successful international cooperation