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ChristopherCiavattaLIZ CLAIBORNE, INC.

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I N S I D E :

HR: Up the Challenge?

PwC Ulysses Programme

Paris-style "LITE" Packages

Business and...World Benefit

Europe: Lowest Company Taxes

Is Culture Coaching "the Prophecy"?

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Yes, life is getting easier producing and managing education conferences; producing and hosting radio shows;attracting, assembling and editing information for publication; and, orchestrating a marketing effort to enable allof it to happen in a timely manner. It wasn’t always that way. In the earlier days, even before ’97, it all seemedscary and hard, difficult, and full of problems.

It didn’t happen overnight but one day I woke up, probably at oh-dark-30 and I had a big idea, a solution-focused approach, a break-thru concept. Yes, I asked the Good Lord for some help and simultaneously I beganworking smarter by using better effort, by strenuously focusing concentration on specific elements of the totalproblem at hand (at the time). And also, I wasn’t afraid to be a success. I loved the feeling; I remember when itbegan. I can still feel it today. Thank You.

Effort and thought…we can control those.

I get into multi-tasking, sometimes feeling fragmented… I guess “ADD”-like, speeding, jumping from one thingto another. But then I remember my earlier times and I re-focus. Its like getting ready to shoot a photo, youfocus the camera to be sure the image is sharp, clear, and targeted. You snap it. And now we can get instantinfo using digital cameras, no longer having to wait for film to come back. So, lesson learned here: see yourtarget and aim for success and if doesn’t quite hit right, in an instant you can re-focus concentration, maybe tryanother approach, get ready and execute the drive… check it out.

OK, so what are the details… the how-to’s?

Almost everyday I’m thinking about what our consumers want and thinking of a way to service them at a reason-able, competitive price. Of course, first comes defining your customer identity by industry and by position, bycontact knowledge and more; and if I do not know them well.. then I find out who does …people of influence.I try to find a way that becomes mutually beneficial. I recognize that an honest approach and honest effort willbe recognized by others and on many occasions help will come.

Networking is what it’s all about; conversation, discussion, idea-sharing … professional networking, that is.

Global HR News Conferences are designed with our consumers in mind… that’s you…our consumer. We listento what you tell us; we adjust the education course to meet your needs and we strive to provide cutting-edgeleadership topics in order to “juice-up” thinking and practices; to create a demand…to make something goodhappen for people. Our education conferences provide delegates with key facts, new thinking. Points of differ-entiation will become evident to conference delegates and audience-interaction sprouts and the room is ener-gized again and again. Delegates become connected to each other and this enables problem-solving in a collab-orative learning environment. We all benefit from this increased communication.

To me, it’s exciting and the impact and results are measurable. After all, to me it’s not a game – it’s my liveli-hood. I want to encourage you, my best customers, to incorporate some of this thinking into your daily practiceand I think you will see how good you feel. And I know that many of you already do some of this and it is you… the leaders…who happen to be our repeat customers. And I thank you and I learn from you.

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GlobalHRNews

Volume 5 / Issue 44

CONTENTS

COVER STORYChristopher Ciavatta, Liz Claiborne, 10

GLOBAL MANAGEMENTIs HR up to the challenge? 6Globalized HQ, 8Culture Coaching, 10Business - Agent for World Benefit, 14LITE Expat Packages, 26PricewaterhouseCoopers -

The Ulysses Programme, 16

LEGALImmigration -

the Green Card Roller Coaster, 22Employment - Terminating Employees, 24London, 34Panama: Update, 40

WORLD TRADENorth Africa, 30Morocco, 31Company Taxes & Europe, 50

MANAGEMENTInsurance Without Borders, 32Attracting, Retaining Gen Y, 47In-Sourcing, 52

MOOSE CARTOON, 46

ADVERTISERS

ACE RELOCATION SYSTEMS, INC. . . . . . . . . . C3

ACS INTERNATIONAL SCHOOLS LTD. . . . . . . . . 7

AKA KORMAN COMMUNITIES . . . . . . . . . . . . 1

AIRES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

AIRINC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

ALLIANCE RELOCATION . . . . . . . . . . . . . . . . 49

APARTMENT SERVICE . . . . . . . . . . . . . . . . . . 48

AWARD-SUPERSTARS . . . . . . . . . . . . . . . . . . 40

BAR-PEREG . . . . . . . . . . . . . . . . . . . . . . . . . . 47

BURGDORFF . . . . . . . . . . . . . . . . . . . . . . . . . 41

CASEWESTERN RESERVE UNIVERSITY . . . . . . . 15

CHESTNUT GLOBAL PARTNERS . . . . . . . . . . . 23

CITI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C2

COLGATE-PALMOLIVE COMPANY . . . . . . . . . C4

CORPORATE APARTMENT PARTNERS . . . . . . . 49

CORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

DMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

ENTERPRISES GROUP . . . . . . . . . . . . . . . . . . . 13

EQUITY CORPORATE HOUSING . . . . . . . . . . . 35

EXECUTIVE MOBILITY GROUP . . . . . . . . . . . . 48

FOCAL POINT . . . . . . . . . . . . . . . . . . . . . . . . 44

FRAGOMEN DEL REY BERNSEN & LOEWY . . . . 3

FULL CIRCLE INTERNATIONAL RELOCATIONS . 32

GROSPIRON INTERNATIONAL . . . . . . . . . . . . . 47

IMPACT GROUP . . . . . . . . . . . . . . . . . . . . . . 39

INSURANCE SERVICES OF AMERICA . . . . . . . 52

JPMORGAN CHASE . . . . . . . . . . . . . . . . . . . . . 5

JACKSON LEWIS, LLP . . . . . . . . . . . . . . . . . . 27

LIVING ABROAD . . . . . . . . . . . . . . . . . . . . . . . 9

MOVEONE RELOCATIONS . . . . . . . . . . . . . . . 46

NATIONAL EAP . . . . . . . . . . . . . . . . . . . . . . . 48

ONE WORLD RELOCATION . . . . . . . . . . . . . . 36

PMI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

SULLIVAN MOVING & STORAGE . . . . . . . . . . 36

TRIPLICADO PORTUGAL RELOCATION . . . . . . 49

WEIDEL REALTORS . . . . . . . . . . . . . . . . . . . . 47

WILLIS RELOCATION RISK GROUP . . . . . . . . . 44

GlobalHRNews 7910 Ivanhoe Avenue, Suite 432, La Jolla, CA 92037PHONE 619.787.3100 EMAIL [email protected] WEB www.globalhrnews.com

EDITOR & PUBLISHER Ed Cohen DESIGN & PRODUCTION Jill St. Michael

©Copyright 2007, by Edwin B. Cohen. All Rights Reserved.

ConferencesLONDON 27-28 NOVEMBER

SILICON VALLEY 30 JANUARY ‘08RIO DE JANEIRO 20-21 FEBRUARY ‘08

NEW YORK 30 APR-1 MAY ‘08MEXICO CITY 1ST HALF ‘08

DALLAS SPRING ‘08SEATTLE SUMMER ‘08

PARIS 3-4 DECEMBER ‘08SOUTH AFRICA ‘09

PANAMA ‘09

MORE INFORMATION: www.globalhrnews.com


GlobalHRNews

As champions of human resource transfor-mation -- true, enterprise-wide HR trans-

formation—Deloitte Consulting firmly believesHR leaders and the HR function must play astrategic role in helping companies be success-ful and create business value. With peopleissues and talent now widely recognized asbeing critical to overall business success, withmonumental shifts in demographics, the waybusiness operates, and ever-changing risk andthreats, HR and the business must take bold,definitive action to improve how HR supportsthe organization. Yet, as straightforward asthis may sound, it’s not playing out this way.

Indeed, as revealed in the 2006 global DeloitteTouche Tohmatsu/Economist Intelligence Unitstudy, “Aligned at the Top,” while most HRfunctions are in the process of transformingthemselves—or thinking about it, mosthaven’t yet developed the capacity or capabili-ty to effectively address their companies’ peo-ple strategic challenges. More than 500 seniorbusiness and HR executives from over 400companies of every size, industry, and globalregion, responded to the survey.

If, like us, you eagerly await the day when itcan be declared that HR has shed its adminis-trative image and legacy and embraced thepeople strategist role, you will agree that anumber of our study’s findings are thoughtprovoking. More than 85% of all participantssaid that people are vital to all aspects of theircompany’s performance, particularly topstrategic challenges, such as responding toincreased competition, developing new prod-ucts and services, and capitalizing on advancesin technology. Nevertheless, there is a signifi-cant gap between business needs and HR’sperceived focus and capabilities: a mere 3%of senior executives described their companyas “world-class” in people management andHR and another 31% pointed to the need forsubstantive improvement. In a separate, sub-stantiating piece of research our firm conduct-ed last year with 150 of our largest clients, wefound that more than 80% claim to be

engaged in some level of HR transformation,but we would suggest that it is neitheraggressive nor comprehensive enough toachieve major transformational impact.

There is clearly a huge opportunity—and per-haps we are at a tipping point. HR leadersand decision makers must view people andthe HR function as a fundamental investmentin their future, and not as a cost center.Yes, there’s a billion dollar problem, but it’snot the cost of HR programs and processes,it’s the cost of not aligning people issueswith strategy.

So M&A deals fail because cultures collide.New market entry strategies fizzle becausetalent can’t be sourced.

Huge fines are incurred because the crossborder movement of personnel is not effec-tively managed.

Business leaders are and should be receptive.Both business and HR executives surveyedhad a common list of top people and busi-ness concerns which keep them awake atnight: the clear top four issues begin withleadership pipelines, talent, high perform-ance culture and training and development.Sixty percent of senior executives alreadyconsider people very significant to the strate-gic decisions they make, and that numbershot up to 90% when looking a few yearsahead. Business leaders were also clearabout creating a high performance culturefor their people (79%) and 82% expect HRto be perceived as a value-adding function inthree to five years. If one can assume thatorganizations view their people as a sourceof competitive advantage, then it would fol-low that the care and development of thatkey asset would be in the hands of HR strate-gists and stewards who align their activities(recruiting, training, rewards) with the needsand priorities of the company (new marketentry, globalization, M&A, etc). In effect,you must bake people issues into the busi-

ness strategy, make them inseparable, andthereby make the partnership between HRand business equally inextricable.

This move rests squarely on your shoulders asthe HR leader—both as business and peoplestrategist and HR operations steward. Getconfident with your strategy role first, thentake a close look at how your HR functionworks to make sure you have the right peopleand that they can provide what the organiza-tion needs to deliver on its strategy. Begin tolook at HR not in a silo, but with deep strate-gic perspective. Connect the dots: HR strate-gy, talent programs, real estate issues (virtualoffices), technology solutions and implicationson tax and risk and compliance issues. Lookto other functions in the organization andbuild relationships and bridges, not just theCEO. Finance, technology. They’re all instru-mental in helping you think more broadly.And, you know what; they’re grappling withtalent issues too. All these partners matter interms of what you do and how successfulyou’ll be in getting it done.

This is no time for an exercise based on incre-mental change, nor is it a cost-cutting initiative.This is a time for a seismic shift in the way HRdoes things and relates to the business.

Today’s market leaders and the acquirers put-ting together the big M&A deals are smartglobal companies who are investing hundredsof millions of dollars in people, because theyknow they must do so in order to meet theirstrategic objectives. For them, HR is nolonger a backroom function; it is perceptibly intransition to the C-Suite and a seat at theBoard Room table.

This challenge and this incredible opportunityhave a short clock.

We hear it ticking, do you?

The views expressed in this article are those ofthe author and not necessarily the views ofDeloitte Consulting LLP. ■

GLOBAL MANAGEMENT

Is HR up to the business and peoplechallenges facing global companies?HR Transformation: The clock is ticking

by JEFF SCHWARTZ, Principle & Global People and Change Practice LeaderDELOITTE CONSULTING LLP

sumer products companies requires aninternational assignment as one milestonein its leadership development program.But the manager of a U.S.-focused productline says she’s just begun to consider theimplications of her team being comprisedof managers from Latin America, Europeand Asia. “I thought of us as a U.S. team.It didn’t occur to me that we might havevery different ideas about the business.”

PROMPT NEW PERSPECTIVESThe looming question is how best to devel-op global leadership skills – or at leastawareness and recognition – when today’sbusiness environment seems perpetuallyshort of time and resources.

In a recent edition of Global HR News, Imentioned an international hotel and hos-pitality company that brings managersfrom around the world to an annual plan-ning meeting. In one recent exercise, par-ticipants were invited to solve a businesschallenge from their perspectives and shedlight on why their solutions made sense incultural context. No approach wasdeemed right or wrong, better or worse.One manager reported that his eyes wereopened to the challenge of establishingglobal policies while making room forlocally-sensitive adaptations.

Personally, I’m a believer in games and sim-ulations that invite a global exchange. Thevast majority of organizations are in theearly stages of shifting from being aware ofthe world to having a worldly outlook.Games and simulations are forms of guideddialogue that surface divergent and conver-gent views and can be incorporated into aconference or teambuilding workshop.Used strategically, they are mechanisms tohelp managers re-conceptualize “theirworld” in reference to the big, wide world.

When people’s perceptual maps expand,they are better equipped to identify atti-tudes and structures for global success.Any process that broadens horizons is con-sistent with The Fifth Discipline concept ofbuilding a learning organization. As authorPeter Senge proposed, human and organi-zational intelligence evolves when man-agers can see as systems thinkers, developpersonal mastery, and restructure mentalmodels in collaboration with others.

And I would add – that applies bothabroad and at home. ■


GlobalHRNews

importance of a global outlook for man-agers posted to international assignments.I was in the habit of thinking about bur-geoning business centers like Dubai,Mumbai and Shanghai as crossroads wherea multinational perspective is most impor-tant. That was a myopic view on my part.In the age of globalization, we can’t forgetthat a multinational mentality can be justas relevant in the offices and meetingrooms of one’s own headquarters.

Today, multinational companies come in allshapes and sizes and can be locatedalmost anywhere. The Miami metro areaalone has more than 750 multinationalheadquarters. Many are for U.S. compa-nies; others are North American sub-sidiaries of parent companies elsewhere.So, a manager doesn’t necessarily andabsolutely have to go global to need glob-al leadership skills.

CONSIDER THE CASES Case #1: The customers of a large U.S.-headquartered financial institution are pri-marily American. But a division led fromthe U.S. manages global credit productsand trade services supported by more than500 people in offices around the world.According to one of the group’s directors,“Our primary human resource challenge isto help our headquarters leadership teamwelcome global points of view when therest of the company is so U.S.-centric.”

Case #2: A U.S.-based company specializ-ing in data analysis for thousands of clientsin nearly 100 countries is proud of its globalpresence. But the HR manager for diversityand inclusion suggests, “We have so manynationalities right in our headquarters thatwe look like the United Nations. But wetend to take it for granted that we all havethe same perspectives.”

Case #3: One of the world’s leading con-

Increasingly diverse teams meanmultinational perspectives arepresent at home and abroad.

Games and simulations surfaceviews and integrate

decision-making.

In the last three years, our company hasdecided to set up an integrated model in

three parts of the world. A few people havebeen appointed to set up the Asia/Pacificarea. [The person] leading this organizationis an American born in India. Two Japaneseare doing all of the planning and support.We have one American woman doing train-ing and strategy, another doing marketing,and I am doing all of the operations support.I am French. I implement all of this in 15countries from Japan to Australia.

These are the words of a manager I inter-viewed in 2005 for a research initiative inmultinational corporations on five conti-nents. His role included responsibility forachieving an effective business model inthe Asia/Pacific region – one that blendsWestern and Asian approaches. As hisquote demonstrates, this manager is par-ticularly astute about cross-cultural diversi-ty – aware that moving a business forwardin a multi-cultural environment calls forequal parts task and relationship.

He described passionately his admiration forthe American sense of innovation, detailedJapanese planning, and the patience of theChinese. He talked about valuing thesestrengths to develop an improved regionalheadquarters operating plan.

I suggested he is a model of The NewHybrid Leader – a manager with the atti-tudes, skills and behaviors required to be atruly global leader.

At the time, my attention focused on the

GLOBAL MANAGEMENT

‘Globalized’Headquartersby PATRICIA SHAFER, PresidentCOMPEL ORGANIZATIONAL EXCELLENCE ALLIANCE, LTD.,and a Global Management [email protected]

GLOBAL HR NEWS: Hello Chris, couldyou please tell us a little about your busi-ness background?

CC: Yes; I would love to chat. I startedmy professional career as a tax analyst withone of the Big 6 accounting firms.. now ofcourse there are only the Big4 firms. Asexciting as corporate and individual taxcompliance can be (and no offense to myfriends in the tax industry) I decided that Iwanted to be involved with somethingmore exciting…to be involved with dealingwith people.

GLOBAL HR NEWS: Is that how you gotinto Global Mobility?

CC: Yes, there was an opportunity to workwith the firm’s internal international assign-ment program and I jumped at the chance.I worked on the firm’s program for over fiveyears and then moved on to manage theexpatriate program for one of the world’slargest insurance and financial services com-panies, American International Group.


GlobalHRNews

GLOBAL HR NEWS: So, how did youbecome involved with Liz Claiborne Inc.?

CC: Liz Claiborne’s international assign-ment program was in its infancy comparedwith my previous companies, both ofwhich had very established and advancedprograms. I could not pass up the oppor-tunity to be involved with the developmentand strategic business alignment of anassignment program.

GLOBAL HR NEWS: Would you pleasetell us about Liz Claiborne Inc, about itsfounding and about the organization?

CC: It’s really an incredible story. In 1976,a relatively unknown dress designer, hertextile veteran husband and two partnersestablished, Liz Claiborne Inc., a design-driven company that would revolutionizethe fashion industry – from how womendress for work, to where product issourced, to how it is sold into and atdepartment stores. With less than half amillion dollars and with a clear focus ondesign, quality and value, these four part-ners – Liz Claiborne, Art Ortenberg,Leonard Boxer and Jerome Chazen – creat-ed what is now a nearly $5 billion publiccompany.

Liz Claiborne Inc. became a large companyin a fragmented industry very quickly andin 1981 went public to much fanfare. In atime when apparel company IPOs were notwell received Liz Claiborne’s offering washighly successful. And this was just thebeginning… by 1985 Liz Claiborne Inc.was the first company founded by awoman to be listed in the Fortune 500.

Now, Liz Claiborne Inc. creates fashion foreveryone – women and men, girls andboys, apparel and non-apparel, modernand classic, career and casual. From MainStreet to the mall, department stores tospecialty stores, and luxury retailers to dis-count retailers, our product reaches con-sumers wherever and whenever they shop.

GLOBAL HR NEWS: Can you please tellus about the person, Liz Claiborne.

CC: Yes, but sadly, the founder and name-sake of our company, Liz Claiborne, passedaway this June. She was considered an

inspirational woman who revolutionizedthe fashion industry 30 years ago.

GLOBAL HR NEWS: Now, lets take breakfrom the “business” questions to find moreabout you…so will you please answer thefollowing questions: Do you have a family?

CC: Yes indeed. My beautiful wife, LeaAn,and I have been friends for over 25 yearsand have been married for the last twelve.We have three very active boys, Chris (9),Jack (6) and Michael (3). We live in a veryquaint Jersey Shore town, which makes fora long commute, but there is nothing bet-ter than taking a walk down to the beachwith the family after a hard day’s work.

GLOBAL HR NEWS: Now, what are youreading, or just finished reading… what’snext?

CC: I recently finished reading Mr. Chinawhich is a memoir of Tim Clissold’s experi-ences in mainland China during the1990’s. I’m looking forward to therelease of Dean Foster’s upcoming book,The Culture Prophecy: Revealing theHidden Destiny of Nations.

GLOBAL HR NEWS: And, do you enjoyeating and cooking specialty things?

CC: I love to cook and I sure love to eat!More specifically, I love to grill, which I doall year long. There is nothing better thana grilled sirloin steak, with a little koshersalt, cracked black pepper and maybe a lit-tle drizzle of extra virgin olive oil. Top itoff with some fried onions, blue cheeseand a cold Anchor Steam Ale. Perfect!

GLOBAL HR NEWS: OK, now thinkback… can you tell us …what was theBEST ADVICE you ever received?

CC: Early in my career, I was told by one ofmy “mentors” that the most importantthing in the business world is relationships.I’m glad I took his advice because he was100% correct.

GLOBAL HR NEWS: And tell us about this

COVER STORY

Christopher CiavattaDirector – Global Mobility

LIZ CLAIBORNE, INC.

11Volume 5 / Issue 4

GlobalHRNews

favorite role model, your mentor…

CC: My dad was the biggest influence onmy development as a person and a profes-sional. He is a man of principle, with astrong work ethic and most of all, he is aman of his word. I consider him to be themost honorable person I know, so I havetried to model myself after him.

GLOBAL HR NEWS: And what about atwork…?

CC: There are a number of people whohave been very influential in my career andthe decisions I have made along the way.There are two people from my days inpublic accounting that I still rely very heavi-ly on for guidance in both my professionaland personal life. I consider this type ofrelationship invaluable and I considermyself very lucky.

GLOBAL HR NEWS: Liz Claiborne Inc. hasbeen making headlines recently….

CC: In July, our management teamannounced a five year growth strategy thatis centered on one key principle: BuildingPowerful Brands. In support of the strate-gy, the Company has been divided intotwo business segments – Direct Brands andPartnered Brands. The focus of the strate-gy is on our Direct Brands which representthe retail, direct-to consumer businesses.Partnered Brands represent the wholesalebased business which are also critical tothe strategy.

GLOBAL HR NEWS: What specificallydoes that mean for the numerous brandsin the portfolio?

CC: Some tough decisions had to bemade in support of the strategy whichresulted in sixteen of the 40 plus brandsbeing placed under strategic review.These brands will be reviewed for possibledivestiture, licensing to another companyor discontinuation.

Although this would appear to have adrastic impact on the portfolio, it is actual-ly a very focused approach that will allowus to devote the capital, resources, andinnovation required to develop powerful,sustainable brands on a global basis.

GLOBAL HR NEWS: Please explain moreabout Global strategy.

CC: As a part of the growth strategy, fourof our direct brands – Juicy Couture, LuckyBrand Jeans, Kate Spade and Mexx havebeen designated as power brands. Thebrands will focus on a multi-channel, multi-category and, of particular interest to me,a multi-geography platform.

GLOBAL HR NEWS: Please tell us aboutyour employees…

CC: Liz Claiborne, Inc. currently has approx-imately 17,000 employees worldwide, rep-resenting a wide variety of very specializedskill sets. We have knit designers, wovendesigners, colorists, and wet processing spe-cialists to name a few. I can honestly saythat prior to working for Liz Claiborne, Inever realized or had an appreciation forthe complexities of designing apparel.

GLOBAL HR NEWS: OK, now lets dialogabout “mobility issues”: Why does LizClaiborne relocate its employees?

CC: OK, we relocate employees bothdomestically and internationally for the fol-lowing reasons: Professional develop-ment; Business Development; Revenuegrowth potential as well as for Cost sav-ings opportunities; Risk Management;Future management planning and leader

development; Knowledge growth andgain via culture exchange.

GLOBAL HR NEWS: Who are you relocat-ing? Where?

CC: We relocate a number of retail peopledomestically… in the U.S…. although wehave not historically moved retail peopleinternationally. However, at the presenttime, we are in the process of developingprograms that will promote and support themovement of retail staff internationally.That said, we are opening Lucky Brandstores in Macau and Hong Kong later thisyear and we are moving one of our US retailstore managers to assist with the opening.

GLOBAL HR NEWS: Now lets drill-down…can you please describe the demo-graphics ?

CC: Yes, our mobile employees are a truerepresentation of Liz’s diverse workforce.The population ranges from senior execu-tives to junior designers with all genera-tions represented. By generations I mean,baby boomers, Gen X and Gen Y. I amalso proud to say that we currently havemore female employees on assignmentthan we do male employees.

GLOBAL HR NEWS: The challenges ofrelocating Gen Y is a very current topic.Can you comment?

CC: As you know, I’ve participated in afew presentations on this topic over thepast year. With approximately 76 millionof Gen Y’s in the US workforce alone, it isa very real challenge that is forcing compa-nies and global mobility professionals toevaluate and adjust the way they operateand manage.

Gen Y’ers grew up in a very different worldthan the Baby Boomers and GenerationX’ers. An example that is often used isthat China, Eastern Europe and the SovietUnion are popular travel destinations forGen Y’ers, whereas for most Boomers andX’ers the thought of doing business inthese locations was unthinkable.

CONTINUED — PAGE 28


GlobalHRNews

Mr. & Ms. Smith and their three chil-dren were relocated from Chicago,

Illinois in 2005 to Shanghai, China whenMs Smith’s company needed to havesomeone with her kind of successful trackrecord in sales back home open and runthe new Shanghai office of the companybased in Pudong, China. Of course, MsSmith’s company, an established Fortune500, aware of the significant investment itwas making in the Smith’s relocation, andexperienced in the risks of more than afew previously failed international assign-ments, provided the Smith’s with all thetraditional support services they needed toinsure that their relocation to Shanghaiwould be a success. The company con-tracted with a globally connected interna-tional mobility services provider, whicharranged for a full battery of services,including household goods moving, adapt-ability assessment, career support servicesfor Mr Smith, international schooling forthe kids, language training, settling-in doc-umentation support, etc. Most important-ly, the entire family received cross-culturaltraining to provide them with the criticalinformation they needed in order to under-stand the significant differences theywould encounter in both daily life and theculture of work in Shanghai, China.

Fast forward to summer, 2007: two ofthe Smith children, enrolled in theAmerican School in Shanghai, are havingproblems, one falling behind in theirMandarin studies, and the other getting introuble at school around behavioral issues.Ms Smith has increasingly expressed highlevels of frustration with her work, and isconcerned that she will not succeed at hermain task in China. As she describes it, itis a combination of not managing theChinese team to a level she feels isrequired in order to produce the results she

and her company expect, as well as nothaving the skills and knowledge requiredto work throughout the region, beyondthe Shanghai office. As Ms Smith discov-ered once she arrived in Pudong, runningan office based in Shanghai that representsher US-based company throughout theAsian region requires intercultural compe-tencies with 15 other major countries, aknowledge of how to build good on-goingrelationships with key Chinese bureaucratsin Beijing, and how to handle the wholehome-office/field-office dynamic of beingfar, far away from disconnected headquar-ters in Chicago. And to top it all off, bothshe and her husband were beginning toget concerned that the assignment wastaking its toll on their relationship: MrSmith was increasingly depressed and feel-ing at a loss to maintain a sense of profes-sional and personal worth. From a per-sonal perspective, the Smith’s were in crisis;from a corporate perspective, the successof the international assignment – and thesignificant investment being made by thecompany in the entire China venture – wasat risk.

To the rescue: The intercultural consultingcompany that provided the Smith’s withtheir pre-departure cross-cultural trainingwas contacted by Ms Smith’s company,and informed of the situation.Fortunately, the intercultural training com-pany selected by the client company pro-vides, as part of the initial training pack-age, for constant on-going contactbetween the Smith’s and their interculturaltrainer for the full length of the Smith’sassignment in China. This means thatonce on-site, the Smiths have constant andon-going e-contact with the training teamthat they worked with in their interculturaltraining, whenever they need their sup-port, at any time while they are on assign-

ment in Shanghai. And in a recent com-munication between the Smith’s and theirtrainer in Chicago, the trainer recognizedthe need for on-site intervention in a num-ber of areas, and informed the interculturaltraining company, which, in turn, informedthe client, and outlined the kind of supportthey could provide to help turn the situa-tion around: on-the-ground, guided inter-cultural coaching, targeted to the specificadaptation and work-related issues theSmith’s were currently facing.

Cross-Cultural Coaching?Isn’t that the same thingas cross-cultural Training?

The Smith’s situation is not unique, and ithighlights several important issues thatcompanies and international transfereesneed to consider:

• Intercultural coaching is a significantlydifferent intervention from interculturaltraining, and providers of interculturalconsulting must be able to seamlesslygraduate from training to consulting on-the-ground wherever and wheneverneeded.

• Initial cross-cultural training programs(and providers of such) must include,built-in and included at no extra price,on-going trainer contact and assessmentthroughout the entire length of theassignment.

• Developing cross-cultural competencies isnot a one-time event, but a three-stepprocess that is ideally implementedthroughout the entire cross-culturalencounter, whether that encounteroccurs due to an international transfer,or in the course of working across cul-tures from a home-base location.

Let’s take a closer look at these issues, start-ing with the first point: what exactly is cross-cultural coaching, and how does it differfrom cross-cultural training? First, as wesaw with the Smith’s, a three year interna-tional assignment is a long time, and peo-ple’s needs, and their ability to even identifyand recognize those needs, change overtime. Ms Smith never could have anticipat-ed the kind of Asia-general knowledge andskills she would ultimately need in her posi-tion, since the company’s goals and situation


GLOBAL MANAGEMENTCulture Coaching: Insuring theLessons Learned in Cultural Training

by DEAN FOSTER, PresidentDEAN FOSTER ASSOCIATES • [email protected] • 718.287.9890


GlobalHRNews

Iwish I could share his full name. Dan isthe Executive VP of Human Resources for

one of the largest multinationals in theworld. He is a quiet and respected leader,a member of the Office of the CEO, andthe architect of a top secret “empower-ment” strategy.

That’s why I can’t share the name, as thiscompetitive strategy has all the makings offirst mover advantage. Dan’s goal: toturn on and elevate the imagination andpassion of an entire workforce leading,ultimately, to whole new magnitude ofbusiness innovation.

I know this case well because I am an advi-sor to Dan. He first shared with me thecomplexity of the conglomerate, and howthe dizzying diversity of businesses made italmost impossible to communicate thecompany’s identity or to rally the 57,000employees around any unified, corporate-wide vision. But Dan had an idea.And I immediately high-fived him saying“Dan, there is no power greater than whatyou are talking about, for turbo-chargingthe talent, uniting the strengths, turningon the imagination of everyone.”

So what is Dan’s extraordinary idea?

It’s calling the entire corporation to “be aworld solution-provider to the 10 largestglobal problems facing humankind.” OK,let’s use more familiar language. It’scalled “corporate citizenship.”

In the world of ideas, as Thomas Friedmanwrote, to name something is to own it: “ifyou can name an issue, you can own theissue.”

Like Friedman’s analysis of the word“green” the one thing that always struckme about the term corporate citizenship

was the degree to which, for so manyyears, it was defined the opposite of thereal business. Especially opponents, peo-ple who wanted to disparage it, would rolltheir eyes if you brought it up at a seniorexecutive strategy think-tank, defining it as“charity”, “expensive regulatory compli-ance”, as “liberal”, “a side-line distrac-tion”, “vaguely relevant.”

Well its time to rename “corporate citizen-ship.” We need to rename it globalstrategic, opportunity producing, innova-tion magic, and HR turbocharged.

It’s what is happening—if you really payattention—to the leading stars in virtuallyevery industry. Just as the internet boomsent people scrambling to invest in the nextGoogle, the same thing now is happeningto companies that are emerging as pioneersin clean tech, micro-enterprise (eradicatingpoverty through profitability), and sustain-ability. Who is going to be first to marketwith the next new “Prius” or who will bethe next new “Whole Foods”? Likewise,why is there so much investor excitementwith NanoSolar — with its workforce on fire— and its promise of building a world thatis clean and profoundly renewable in itsenergy options?

So Dan—from a senior HR perspective—could sense it. He could sense this re-naming I’m talking about. So what didhe do? He organized the largest globalsummit this Fortune 500 Company hasever held, using a process calledAppreciative Inquiry.

The focus was on “the ten largest globalproblems facing humankind.” Andthen the five hundred employees—frommachine operators to the head of corpo-rate finance and information technology,as well as customers and representatives

from throughout the supply chain — allwent to work with a big, inspiring ques-tion: “How might we turn these socialand global environmental issues into inven-tive business opportunities to ignite innova-tion in new products and operations, opennew unexpected markets, ignite customerpassion and loyalty, turn on and energizean entire workforce, accelerate learning,build better supply chains, reduce risks,radically bring down energy costs, and pro-duce tangible and intangible value such asbrand loyalty and higher market cap?”

Friends in HR and OD, just as BP’s beyondpetroleum ads admit ‘it’s just a start”,Dan’s story of leadership is just at its cre-ative, beginning stages. But it is part of amuch larger mosaic.

I was recently in Switzerland entering asecond phase of the most exciting project Ihave ever worked on. A few years earli-er, in 2004, a representative of theSecretary General of the United NationsKofi Annan called me at Case WesternReserve University’s Weatherhead School ofManagement. He wanted our team tofacilitate the largest meeting in historybetween the UN and almost one thousandCEOs, from companies such as HewlettPackard, Nokia, Microsoft and many others.It was an exploration into the next phasesof global corporate citizenship, where KofiAnnan reached out his hand to the busi-ness leaders and said: “Let us choose tounite the strengths of markets with thepower of universal ideals, let us choose toreconcile the forces of private entrepre-neurship with needs of the disadvantagedand the well-being of future generations.”

The summit was powerful. And threeyears later, this summer, the second summit


GLOBAL MANAGEMENT

Business as an Agent of World BenefitThe Top Secret Innovation Strategyby DAVID COOPERRIDER, Professor and Chairman of the Department of Organizational BehaviorWEATHERHEAD SCHOOL OF MANAGEMENT, CASE WESTERN RESERVE [email protected]


GlobalHRNews

THE ULYSSESPROGRAMME

Editor’s Note: In May, Global HRNews was pleased to present

their first Corporate CitizenshipAwards to Caterpillar Inc fortheir International EmployeeAssistance Program, Pfizer Incfor their Global Health Fellows

Program, andPricewaterhouseCoopers(PwC)

for their Ulysses Programme. Inour last issue, we featured the

Pfizer program. In this issue wefeature the

PricewaterhouseCoopers UlyssesProgramme. In an upcoming

issue we will feature theCaterpillar program.

THE PWC ULYSSESPROGRAMME IN PARAGUAY“They were like sailors on a long journey.They came to our port. We were withthem and they were with us. We are all onthis journey,” says Martin Burt, ManagingDirector, Fundacion Paraguaya, Paraguay.

He was describing thePricewaterhouseCoopers (PwC) partnerswho participated in their UlyssesProgramme, a unique leadership develop-ment experience in which PwC partners indifferent areas of the firm’s practice fromdifferent parts of the world work togetherin collaboration with a social organizationfor eight weeks on a project in a develop-ing country.

Fundacion Paraguaya is a private, not-for-profit organization that promotes entrepre-neurship, enabling people of limitedresources to create jobs and increase theirfamily income.

In 2005 Ulysses participants from Germany,Hong Kong, and Malaysia first workedwith the Fundacion to develop a businessplan for the Agricultural School, one of theFundacion’s four major programs, one that

works to enable poor rural youth toachieve financial self-sufficiency.

In 2006 the Ulysses team in Paraguayconsisted of PwC partners from India,Canada, and France. They worked toestablish a draft strategic plan for theFundacion as a whole.

One of the 2006 Ulysses participants wasTracey Jennings, a PwC tax partner fromToronto, Canada.

Her experience illustrates the exceptionalleadership training program named afterthat most resourceful and wily ancientexplorer/sailer—Odysseus (in Latin calledUlysses), the hero of Homer’s Odyssey.The story of Odysseus’s ten year journey toreturn home after the Trojan War is one ofthe seminal tales of civilization and hasbeen reenvisioned in poetry, fiction, song,film, —and a creative and seminal leader-ship training program for a global business.

In the 2006 PwC Annual Report fromCanada an article on the Ulysses Programmequotes Alfred Lord Tennyson’s poem Ulysses:“I am part of all that I have met.”

Tracey Jennings would certainly agree withTennyson, especially following her experi-ence in the Ulysses Programme.

Born in Nova Scotia, Tracey earned a

Bachelor of Business Administration degreefrom the University of New Brunswick andbecame a Chartered Accountant specializ-ing in tax in Halifax. She moved toToronto in 1997 and was recently appoint-ed the Canadian leader of theEntertainment and Media practice and con-tinues her role as Tax Learning andEducation leader for PwC. She leadsteams of 2-20 on dozens of projects at atime with a variety of clients. She is mar-ried and has three young children—Stephanie (12), Mathew (8), and Craig (2).She is an avid runner.

In early 2006 Tracey learned that she hadbeen chosen to participate in the presti-gious and coveted Ulysses Programme.While a major honor it would be a signifi-cant personal and family commitment—eight weeks away from her family in somedeveloping corner of the world. Previousparticipants had worked on such challeng-ing projects as an HIV/AIDS project inUganda, a rural electrification project inMadagascar, and a waste managementproject in Peru.

In February 2006 Tracey learned that herPwC Ulysses partners would be Joy, aPartner in the Advisory practice of PwCIndia, and Stephane Piffero, a Partner inthe Assurance practice of PwC France.They received eight possible projects and

Ulysses partners in Paraguay - From left to right - Stephane Piffero (France) Tracey Jennings (Canada) ,Joy Jain (India).


GlobalHRNews

were asked to put together a business caseon their top three. They communicatedby e-mail and conference calls with someclarifying assistance from the UlyssesProject office in London. They made theirpreferences known and submitted their

opment programme.

(1) Four weeks of preparation while onthe job. In Tracey’s case this includedonline cultural diversity training, a“360 degree feedback programme”,

PwC’s Key Objectives• To develop responsible leaders who

are capable of assuming senior lead-ership roles in a high performingorganisation, at both a territory andinternational level.

• To build a global network of leaderswho understand the importance ofvalues in developing trust-based rela-tionships with a diverse range ofstakeholders and who can create asustainable brand that is differentiat-ed by the quality of these relationshipswith our clients, our people and thebroader community.

• To help our leaders to understand thechanging role of business in influenc-ing the economic, political, social andenvironmental well-being of commu-nities and markets across the world,and our responsibility to work in col-laboration with a broader group ofstakeholders to achieve sustainablesuccess through responsible world-wide business practices.

• To develop a model of leadership forPricewaterhouseCoopers that willenable the next generation to leadresponsibly within a global networkedorganisation, and to position thisresponsible leadership model as thefoundation of all development pro-grammes across the firm.

Tracey Jennings tries her hand at weaving the blanket with a microfinance client in Carapegua.

Luis Fernando of the Fundacion Paraguay visiting one of their microfinance clients. This client sup-ports a family of 8 by cleaning the innards of a cow. The loan from Fundacion Paraguaya allows herto purchase the innards of a cow which she then cleans and sells earning about $8.

business case. Working with theFundacion Paraguaya was either the first orsecond choice of all three. In April theywere excited to learn that they were goingto Paraguay.

This was not going to be easy work insome plush tourist stop. It would beworking in a country of “extreme poverty”to use Martin Burt’s words. Tracey hadworked as a volunteer with an associationdedicated to the prevention of child abusewhen she was in Nova Scotia, but in recentyears she had been very busy with hercareer and her family. She was living a fulland comfortable life. Now PwC was chal-lenging her to a larger vision of leadership.

The Ulysses Programme consists of fivemodule units. A summary of these unitsoutlines a dynamic global leadership devel-


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development of key goals and objec-tives, preparing a draft leadershipvision statement, and independentlyresearching information on Paraguay(including e-mail correspondence withprior team members who had gone toParaguay).

(2) One week of intensive residentialtraining. The 2006 FoundationProgramme took place in Quebec,Canada. The Programme involvedUlysses Participants, facilitators andcoaches, representatives from theleadership of PwC, and, in Tracey’scase, representatives from theFundacion Paraguaya. This uniquelearning environment focused on suchthings as improving cultural awarenessand dilemma reconciliation, sharpen-ing dialogue skills through listeningand, through its unique design, facili-tating the creation of deep relation-ships with key participants in a veryshort period of time.

(3) Eight weeks of in-the-field work onspecific projects. In Tracey’s case thisincluded eight weeks in Paraguay trav-elling to and talking with stakeholdersin all four of the Fundacion’s pro-grammes—microcredit, the agricultur-al school, Education forEntrepreneurship (JuniorAchievement), and Teach a Man toFish ( an international network ofagricultural schools and partner NGOscommitted to sustainable approachesto reducing poverty)—and workingwith the Fundacion staff to draft astrategic plan to provide the structureto meet the foundation’s ongoingneeds. The Ulysses partners had tolearn to overcome their own culturalbiases and ways of looking at prob-lems at the same time they werelearning to work to create unique,workable solutions to problems in anunfamiliar and poverty stricken cul-ture. It was a real world immersion inthe issues of three prongs of theUlysses Programme— leadership, cul-tural diversity, and sustainability. Inthe midst of this intense experiencethe Ulysses participants absorbed theunique, homogenous mestizos(Spanish and Guarani Indian) culture

of their host country— tucked awaybetween Argentina, Bolivia, andBrazil—and shared their own French,Indian, and Canadian cultures.

(4) A week of residential review. The2006 programme took place in theHague, Netherlands. It was similarlyorganized as the first residential week.All 22 participants, coaches, andinstructors came back to cover detailsof the projects, share experiences, anddebrief on the three prongs of theprogram. Final statements on leader-ship were made by all the participantsand video taped for future reference.

(5) Ongoing communication among theparticipants is carried on through vis-its, via telephone, e-mails, and at theannual Network Meeting. More than40 Ulysses participants, includingTracey, participated in the four-daymeeting in South Africa in November2006, and exchanged updates onefforts to apply what they had learnedin the Ulysses Programme to theirhome environments.

So what are some things that Traceylearned from this intensive leadership train-ing and CSR experience?

What follows are some excerpts fromTracey’s various statements regarding theProgramme, observations from her person-al journal, and her video taped statementduring the review week.

• “The residential week of preparationwas the most unique environment I haveever experienced. The dialogue skillstaught there are still with me today—learn-ing to give space to others to share in theconversation (especially those whose nativelanguage is not English), recognizing thatthe art of conversation is different andsome cultures require a significant pause,realizing that connecting at a personal leveland showing the people that I work withthat I genuinely care about them is reallyimportant. This has changed the way Ideal with staff on a day-to-day basis.”

• “At the end of the intensive trainingweek, the Fundacion representative suc-cinctly summarized one of our goals—‘learn how to learn.’ I took that to mean—start with a blank page and, understandingthe different cultural perspectives and ways

of communicating, and within the parame-ters of our own values—learn to providebenefits to all.”

• “The difficulties in Paraguay seem to becomplicated by the corrupt government.Operating a surplus, they spend less than24% on capital expenditures. The peoplesee this and the small micro entrepreneursare not so eager to register to becomelegitimate businesses. They say ‘whyshould I pay taxes, none of the moneygoes to improvements but just into thehands of the government.’ Walkingthrough the city all the leaded gas exhaustfumes encapsulate you. The streets aredark, large holes where the culverts lack agrate. One is very aware of the povertyand you need to be constantly aware ofyour surroundings. We are told to onlywalk on main streets. We definitely noticethe lack of pedestrians at night.”

• “ The farm is about a 45-minute driveNorthwest from Asuncion [the capital]—what a great place! Really felt like I wasback in Nova Scotia when I was there—defi-nitely at peace with myself. The feel fromthe moment we arrived was great. Situatedamongst the trees, the students keep thearea immaculate! We spent the daylearning a great deal about the agriculturalschool and the more we learned and sawthe better feeling we had that this was agreat thing they were doing. [The 2005



GlobalHRNews

PwC Ulysses Programmein MadagascarMy Ulysses Journey

by GRIFFITH WELTON, Partner, AssurancePractice - New York RegionPRICEWATERHOUSECOOPERS

What did a PricewaterhouseCoopers(PwC) Partner do in the rural villages

of Northern Madagascar for 8 weeks dur-ing the summer of 2005?

Lived without electricity, traveled the worstroads imaginable, ate several tons of rice,enjoyed a complete disconnection fromBlackberries, e-mail and voicemail, gaineda more complete understanding of thetrue human challenges and tragedies inthe world, and made a small difference inthe lives of the impoverished people in theSava Region of Madagascar.

What is the PwC Ulysses Program?

The ideas behind it are good ones - buildleaders in the firm that embrace the valuesof sustainability and corporate socialresponsibility; create a network of partnersthat share a powerful life-experience withother partners from the culturally diversenetwork of the global firm; and, nurturethe programs and values that contribute tothe distinctiveness of PwC.

To do this, PwC has developed a uniqueleadership development experience where15 to 20 partners from around the globecome together each year to deepen anunderstanding of the these values, and drillthem in the field by working in a develop-ing country on a humanitarian mission.

A number of organizations have corporatesocial responsibility (CSR) programs and ini-tiatives; a bit different is the PwC approachthat builds future leaders that have CSR asa core value and the high potential for amultitude of great works in this changingand challenged world.

My fieldwork assignment seconded myteam to the United Nations to work on TheGrowing Sustainable Business for PovertyReduction Initiative being implemented

Four PwC Ulysses partners from the Indonesia, US, France, and Russia working on locationat the UN offices in Antananarivo, Madagascar, researching sustainable rural developmentsolutions while expanding their individual leadership capabilities. Griff Welton is the secondfrom the left.

through the U.N. Development Program.

I along with 3 other PwC partners fromFrance, Russia and Indonesia, performed asocio-economic study of the Sava Region ofMadagascar (interestingly where over half ofthe world's vanilla beans are produced) aspart of larger initiative to provide rural elec-trification in the area. The output from ourwork made recommendations to the UN onhow to optimize the development opportu-nities in the region and provided a set ofmicro-business and portable electrical gener-ation data to guide next stages of the over-all rural electrification project.

This was one of the most powerful person-al experiences I have ever had in my life. Ioften describe the experience as "balanc-ing" and one that taught me importantlessons about the implied responsibility weat PwC have to improve the communitiesin the world around us. The disconnec-tion from Blackberry and e-mail was agreat liberation, and I was amazed andhumbled to see that all my client work andother projects could get along just finewithout me for awhile - a real testament to

the great teamwork culture at PwC.

On a personal level, it has made me moredeeply appreciate the values of family andhow to better put my work priorities andrewards into the greater context of a lifemission. It has made me very proud to bepart of a firm that has these values, andinvests in developing and needy communi-ties around the world. Like Genesis Park,Turning Point, and many other programs,Ulysses sets PwC apart from other organi-zations and enhances the distinctiveness ofour great firm.

One final observation I would share - likemany people perhaps, I went into thisexercise convinced that electricity to ruralvillages must be a good idea, bringing animproved life and well-being to the vil-lagers -- but now I am not so sure.

Through our work on the project, webecame very close to the people ofMadagascar, and we observed the wonder-fully simple lifestyle of the rural villages.As these people generally have no connec-tivity to the outside world, they are blissful-


GlobalHRNews

ly ignorant of wars, crimes, vices and allthe things that they don't have. Electricitywill change this, and I wonder if theincreased "knowing" of those things willcorrupt this simple and secluded culture.

Time will tell - the electricity will be turnedon in about 4 years, and I along with myproject partners plan to return to see ourfriends, and to understand how thingshave changed - for better or worse. ■

OrganizationPricewaterhouseCoopers (PwC) is a net-work of member firms providing assur-ance, tax, and advisor services. Memberfirms are connected through membershipin PricewaterhouseCoopers InternationalLimited, a UK based membership compa-ny. The firms operate locally in 149countries around the world, but by work-ing together, member firms also comprisea vigorous global network. This struc-ture provides PwC firms with the flexibili-ty to operate simultaneously as the mostlocal and the most global of businesses.

PwC’s Ulysses Programme is a leader-ship development program for futureleaders of PwC. Ulysses is a HumanCapital (i.e. human resource) initiative.The question of how the workload iscovered for each participant is an indi-vidual participant/territory decision,which may or may not involve HR.Usually the decisions are taken at abusiness level within the local territory.

CONTACTS REGARDING ULYSSES:

Ralf Schneider, Head of global talentmanagement; Frankfort+49 (0) 69 9585 5421

Kellie Roberts, Ulysses programmemanager; London+44 (0) 207 804 2548;www.pwc.com/ulysses

Griffith Welton (with clipboard), PwC Assurance Partner based in New York City on hisUlysses project, interviewing a tradesman in Madagascar.

illagers viewing portions of a crop - vanilla beans: a very important export crop fromMadagascar.

COMINGNEXT

EDITION

Caterpillar Inc.winner

Global HR NewsCorporate Citizenship Award


GlobalHRNews

Over the last few months, foreign nationals seeking to immi-grate to the United States on the basis of an employer’s spon-

sorship have had their green card hopes lifted, shattered and liftedagain in an extraordinary series of actions by the Department ofState (DOS) and U.S. Citizenship and Immigration Services (USCIS).On June 13, 2007, DOS issued its monthly Visa Bulletin andannounced that nearly all categories of foreign national workerscould apply for permanent residence starting on July 2. Up untilthe preceding month, several of these categories were significantlybacklogged, some by many years. The announcement causedtremendous excitement as thousands of foreign national workers,many of whom had expected to wait for years, suddenly had theopportunity to complete the last step in obtaining permanent resi-dence in the US.

Backlogs appear because only 140,000 employment-based immi-grant visas (commonly referred to as ‘green cards’) can be grantedannually. DOS is responsible for managing the number of greencards that may be granted in any given year. Where the demandfar exceeds the annual limit, categories become backlogged. Aforeign national’s place in the visa waiting line is determined by hisor her priority date – the date that an application for labor certifi-cation is received by DOL or, if a labor certification is not required,the date that an immigrant petition is received by USCIS.

DOS indicated that it was opening virtually all of the employment-based categories in the July Visa Bulletin to maximize the allocationunder the annual limit for fiscal year 2007. DOS supported itsposition by analyzing USCIS adjudication patterns from earlier inthe year. After the July Visa Bulletin was issued in mid-June, specu-lations on the actual number of immigrant visas available prolifer-ated with estimates reaching as high as 40,000. These speculationsfueled a race to file the applications for permanent residence asearly as possible to secure a visa number before the numbers wereexhausted. Foreign national workers scrambled to obtain the requi-site documents, including medical exams, birth certificates, andmarriage certificates, to file their applications on the first possibleday, Monday, July 2.

Instead, July 2 brought remarkably negative news: DOS issued aSupplemental July Visa Bulletin, announcing that despite its previ-ous July Visa Bulletin (issued June 13), there were no more immi-grant visas available for the remainder of the fiscal year. It turnsout that after DOS released its July Visa Bulletin, USCIS greatly

accelerated its processing of earlier filed applications, purportedlyusing up all of the remaining visa numbers. USCIS then announcedit would not accept the thousands of applications it had receivedon Monday, July 2.

These events were publicly and vociferously criticized. A number ofnews articles and scathing editorials were published in local andnational news media. A large group of foreign nationals expressedtheir disappointment by sending thousands of flowers to theUSCIS Director’s office. Rep. Zoe Lofgren (D-CA), Chair of theHouse Subcommittee on Immigration, Citizenship, Refugees,Border Security & International Law, sent letters to both DHSSecretary Michael Chertoff and DOS Secretary Condoleeza Ricequestioning their agencies’ actions. A large class action lawsuitagainst the government was being prepared. Behind the scenes,stakeholders were urging government officials to come up with afair solution to the crisis without the need for litigation.

In response to these efforts, the agencies reversed their stand. OnJuly 17, 2007, DOS reinstated the original July Visa Bulletin, mak-ing available once again virtually all employment-based visas.USCIS announced shortly thereafter that it would accept employ-ment-based green card applications for a 31-day period, throughFriday, August 17, 2007, and that its scheduled filing fee increases(beginning July 30) would not apply to these filings. In short, thou-sands of foreign national workers once again became eligible tofile cases during this period. Applications had to be received byUSCIS no later than Friday, August 17 in order to be accepted forprocessing. USCIS announced that applications would be acceptedwithout the required medical exam and, as noted above, thatthese applications would be exempt from the July 30 USCIS filingfee increase.

Human Resources professionals should be aware that once anapplication has been accepted for processing, in many cases agreen card will not be issued promptly. If the government receivesa large number of applications, then the backlogs will return andapplicants will find themselves waiting for years for their greencard. In the meantime, however, foreign national workers and theirfamily members will benefit from work and travel authorizationthat is granted to applicants for lawful permanent residence statusin the U.S.

Copyright © 2007 by Fragomen, Del Rey, Bernsen & Loewy, LLP ■

LEGAL: IMMIGRATION NEWS UPDATE

The Recent Green Card Rollercoasterby MICHAEL D. PATRICK, Partner, New York and NADIA YAKOOB, Attorney, San Francisco

FRAGOMEN, DEL REY, BERNSEN & LOEWY, LLP


GlobalHRNews

Terminating a U.S. expatiate employee(“expat”) while the person is on inter-

national assignment in the host countrypresents many challenges. One challengeis determining which country’s law applies?Does U.S. employment law apply or doesthe host country’s law dictate? Or can bothcountries’ law apply?

In deciding which country’s law appliesconsider the following two general rules:First, the law of the country where theemployee works will most likely apply. Insome countries, a small business exemp-tion exists to some of their employmentlaws. In other words, the local subsidiary(and its employees) will be covered by thehost country’s workplace law only if theworkforce of the local subsidiary exceedsthe minimum threshold required by thestatute. If the local subsidiary is a “cov-ered employer”, most employment lawsapply from the employee’s first day ofemployment. However, some statutoryprotections, notably against unfair dis-missal, may apply only if the expat hascompleted a minimum period of service inthe host country. For example, inGermany the expat will be protectedagainst unfair dismissal only if the localsubsidiary has 10 or more employees andthe expat has competed six months ofemployment in Germany. In the UK, theexpat must have completed 12 months ofcontinuous service before the Englishstatutory protection against unfair dis-missal applies.

Second, in limited circumstances U.S.employment law will “follow” the expatand continue to protect the expat evenwhile working in the host country. As ageneral rule, statutes (i.e., law by the legis-lature, such as the U.S. federal anti-dis-crimination laws and state human rightslaws) only cover conduct which takes place

in the U.S. or the particular state. Thepresumption is that the statute will notapply extraterritorially (i.e., outside the U.S.or the State). The U.S. Congress, howev-er, expressly legislated that in limited cir-cumstances three federal anti-discrimina-tion statutes will apply extraterritorially.The three federal statutes are: 1) Title VIIof the Civil Rights Act of 1964 (prohibitingworkplace discrimination on the groundsof sex, race, color, national origin, and reli-gion); 2) the Age Discrimination inEmployment Act of 1967 (“ADEA”) (pro-hibiting discrimination against employeesover the age of 40); and 3) the AmericansWith Disabilities Act of 1990 (“ADA”).The federal Fair Labor Standards Act,which regulates basic wage-and-hourissues, does not apply extraterritorially.

Under these three federal anti-discrimina-tion statutes an expat will be protectedagainst workplace discriminatory conductwhich takes place in the host country onlyif: a) the expat is a U.S. citizen; b) theemployee works outside the U.S., as theexpat will be doing; and c) the expatworks in the host country for a U.S. cor-poration or a company which is controlledby a U.S. corporation.

Depending on the expat’s continued rela-tionship with the U.S. corporate office dur-ing the period of international assignment,state human rights law might also apply.The facts in the recent case of Hart v.Dresdner Kleinwort Wasserstein Securities,LLC, 2006 U.S. Dist. LEXIS 56710 (SDNY2006), illustrate how an expat may be pro-tected under state law while on interna-tional assignment. In this case, a numberof female executive at an investment bankclaimed a “glass ceiling” existed whichprecluded advancement and compensationcommensurate with their male colleagues.One of the female executives, Ms. Smith,

was transferred to London about fouryears prior to filing the lawsuit. Theclaims by this expat in London included aclaim of discrimination under the NewYork State Human Rights Law (“NYSHRL”).The provisions of NYSHRL apply to discrim-inatory conduct committed in New Yorkand “an act committed outside this stateagainst a resident of this state…” BecauseMs. Smith was not a resident of New Yorkwhen the lawsuit was filed, the extraterri-torial provision of NYSHRL was not applica-ble. That did not end the legal analysis.The alleged facts included a claim thatwhen Ms. Smith moved to London, thecompany promised her duties wouldremain the same. While in London, Ms.Smith reported to two supervisors, one inLondon and the other in New York. Also,decisions about Ms. Smith’s pay, bonusesand promotions were made in New York.On these facts, the court held that becauseMs. Smith maintained sufficient connec-tions with New York during her interna-tional assignment to the UK, and that dis-criminatory decisions regarding her com-pensation continued to be made in NewYork she could bring claims of discrimina-tion under New York State law.

Depending on the specific circumstances,an expat most likely will be protectedagainst unfair dismissal and discriminationunder the host country’s workplace laws.The expat also likely will be protectedagainst discrimination under three U.S.federal laws – Title VII, ADEA and ADA.In addition, if the expat maintains suffi-cient connections with the U.S. office ordecisions regarding the expat’s compensa-tion are made in the U.S., the expat mightbe protected against discrimination understate law.

Which law applies, requires a careful analy-sis of the facts. The relevant facts include:

• Whether the expat is a U.S. citizen;• The number of employees working at

the foreign location;• The time-period the expat has been

working in the host country;• The legal relationship of the employer in

the host country and a U.S. corporation:is it a U.S. corporation or a companycontrolled by a U.S. corporation?;

• Whether the expat has a dual or CONTINUED — PAGE 51

CROSS-BORDER EMPLOYMENT LAWTerminating U.S. Expatriate Employees:Which Country’s Law Applies?

by E. JOHAN LUBBE, PartnerJACKSON LEWIS, [email protected]


GlobalHRNews

In Paris during May 2007, the MagellanNetwork held a benchmark session on

alternatives to standard expatriation pack-ages[1]. This benchmark session wel-comed forty-nine international groups, infour meetings of three hours each. Whilethe needs for these new policies vary, themost urgent need, as discovered, was andis reducing the cost of “hiring” expatriates.

The benchmark session also concerned thefollowing subjects: career management,simplifying and decentralizing employeemanagement, increased demand fromyoung employees to work abroad, instillingloyalty among employees in developingcountries, and, facilitating integration inthe host country. It was noted that localstaff members often consider expatriationas an unfair practice.

Finally, it is the stated goal of these com-pany policies to try to meet the needs ofinternational companies by harmonizingdifferent cultures, by developing mobilitybetween subsidiaries, and by promotingawareness of mobility among employees.

The companies at the benchmark sessionidentified several criteria in deciding on thetype of employment contracts for theirstaff (expatriation, “local +", or local):

• the position of the person (members ofthe Management Committee, Executive

Officer, top management, or staff posi-tion)

• experience (<2 years or >2 years orexperts)

• source of the request: the company orthe employee

• the company’s structure: centralized ordecentralized, and the degree of auton-omy of the subsidiaries

• the person’s area of expertise: finance,technical...

• geographic choices (mobility within thesame zone, or to certain countries)

There are important differences accordingto company culture, especially regardingsuccess in international employee recruit-ment and retention. For this reason, thegeographic localization of host countriesand cities is a major factor in a company’ssuccess or difficulty in enticing employeesto working abroad.

Most of the participants in the benchmarksession either have, or intend to offer“light” expatriation packages in additionto the standard expatriation packages.

In contrast, there are companies thatrefuse to offer “light” packages and onlyoffer standard ones.

Other companies prefer using the “local”contract as if it were the only internationalmobility policy available.

The benchmark session revealed five typesof approaches to “light” contracts:

1 the localization of expatriate employees,2 “local +” contracts,3 specific local contracts for young

employees,4 a special approach for expatriates within

the same geographical zone as theircountry of origin, and

5 local recruitment of foreign nationalsabroad.

1 The localization of expatriates isalways provided in the clause to the origi-nal expatriation contract. This clause cantake effect no later than six years, some-times even less. This is due to the factthat the expatriation contract must remainexceptional and be limited to employeeswho are mobile. Nevertheless, localizationis rarely resorted to because in cases whereit is used, it systematically leads to case-by-case negotiations due to an expatriate’sreluctance to renounce a package that isvery attractive. Often, the pressure of theManaging Board is needed to compelemployees to renounce their expatriationpackages. Uncertainties over retirement isoften another thorny issue in negotiation.

All the companies at the meeting considerthat localization is only possible in countrieswhere remuneration is high, such asWestern Europe, the USA, and Canada.

It is interesting to note that some compa-nies have chosen not to implement policiesthat lead to “anchoring” the employee inthe host country with a “light” package fortwo reasons: it creates differencesbetween employees abroad, and the com-pany quickly becomes the target of com-plaints and discrimination. This raises thequestion: upon which criteria should suchadvantages be given?

Other companies confirmed that such poli-cies become an obstacle to expatriationbecause employees do not want to leave towork abroad. On the other hand, “light”packages allow a flexible approach to inter-national mobility, especially for short-termassignments abroad, which average fromeleven to eighteen months.

There are companies that almost systemati-cally use the “local +” contract instead of


GLOBAL MANAGEMENT

Corporate Policy:“Light” Expat Packages

EDITOR’S NOTE: Paris-based “Magellan Network”, an internationalnetwork for the exchange of information for International HR Directorsand Mobility and Comp & Ben Managers of multinational companies,recently reunited its members to discuss the implementation of “light”expatriation packages: why, how, for who, in what conditions, advan-tages, and the inconveniences. The following summarizes thesediscussions which were facilitated by Claude MULSANT, Director.


GlobalHRNews

• CIAVATTA INTERVIEW – CONTINUED

GLOBAL HR NEWS: Are they STA’s(short-term assignees)?

CC: There is a pretty even mix of short-term and traditional long-term assignees,however, we are seeing an increase in theuse of short-term assignments.

GLOBAL HR NEWS: And what aboutcompensation for the internationalassignees?

CC: Currently, we have a traditional long-term and short-term expatriate assignmentpolicy. Both policies are based on the bal-ance sheet approach to expatriate com-pensation.

GLOBAL HR NEWS: Do you have multi-ple policies?

CC: Now that the growth strategy hasbeen outlined, we are working to createprograms that foster and promote thedevelopment of global knowledgethroughout all levels of the organization.The new policies will be aligned with thebusiness needs of the brands as theyendeavor into the multi-geography format.

GLOBAL HR NEWS: To what extent is thedestination relevant to the package?

CC: I am firm believer that the intent of anassignment should dictate the policy orcompensation package provided. That said,I think the destination is often a primaryfactor which is why we are exploring whatis known in the industry as a “local plus”.

GLOBAL HR NEWS: Destinations?Where?

CC: We send employees to Vancouver,Montreal, London, Amsterdam, HongKong, Shanghai, India, Mexico, LosAngeles and New York.

GLOBAL HR NEWS: With many locations,how do you stay connected with the

expats and on top of things happening inthe region?

CC: I travel to the regions several times ayear to meet with the assignees and,whenever possible, their families. On arecent trip to Hong Kong I had the oppor-tunity to have a family dinner at one of theexpatriate’s home. I interviewed hisspouse and their teenage children abouttheir experiences on assignment, both pos-itive and negative, and asked for sugges-tions to enhance our programs.

I also dedicate time with management andthe HR teams to understand their needsand challenges in the ever changing busi-ness environment.

We work very closely with our service part-ners in the regions and take every opportu-nity to meet with them to review trendsand best practices in the local marketplace.

Additionally, I am always reachable to ourexpats with my Treo and mobile phone.I’ve had countless number of latenight/early morning phone calls.

GLOBAL HR NEWS: Do you regard“InterCultural Preparedness” a critical ele-ment ?

CC: As I benchmark through industry,unfortunately, cultural training is often over-looked or secondary when sending employ-ees and their families on assignment. I per-sonally believe this is one of, if not themost, critical success factor to an interna-tional assignment. It should be considereda tool that will help the assignee do theirjob, just like a computer. For example, youwon’t send someone on assignment with-out a computer, would you? Anyway, weactually require our assignees and their fam-ilies to attend cross-cultural training. And,further, we are also exploring different toolsthat can be used to enhance the cross cul-tural experience.

GLOBAL HR NEWS: Now lets look aheadto the Summer of ’08, what will be anurgent issue?

CC: Our most urgent issue will be equip-ping our business with the policies andtraining necessary to support our expan-

sion into foreign markets.

GLOBAL HR NEWS: Back to today, what’sthe number 1 challenge?

CC: It’s definitely compliance! We deal withso many different jurisdictions that have var-ied and, it seems, constantly changingreporting and regulatory requirements. Aprime example is around equity compensa-tion. Governments all over the world areimplementing different reporting, trackingand tax measures, as its use becomes morecommon and the types of equity becomesmore mixed (Options, Restricted, RSU’s,etc.). To help us get it right, we work veryclosely with our tax and legal advisors tostay current with the requirements.

GLOBAL HR NEWS: And now, let me askyou… What’s next for you? What wouldbe a “dream-job”for you?

CC: I plan to go on an internationalassignment sometime in the very nearfuture, preferably to Hong Kong.Ultimately, I would like to be involved withglobal strategy and initiatives.

GLOBAL HR NEWS: Following-up, whatwould you like to be doing in, say, 2010?

CC: I hope to have completed an expatri-ate assignment by 2010 and will be wellequipped for the next global challenge. Iwould like to be involved with businessstrategy as it relates to the expansion intoforeign markets. The position would beresponsible for identifying and researchingthe cultural, social, legal, tax and regulatoryhurdles to opening and growing a businessin said market.

GLOBAL HR NEWS: Chris, we thank youand Liz Claiborne Inc. for your time andinteresting information, and for your lead-ership. ■

globalhrnews.com


GlobalHRNews

The number of foreign workers beingrelocated into Africa is on a steady

upward trend and the area of North Africais no exception to the rest of the conti-nent. This area is becoming the focus ofa increasing number of corporationssending workers on both short and longterm assignments.

According to official UN listings , the areaconsists of the countries Algeria , Egypt ,Libya , Morocco, Sudan, Tunisia andWestern Sahara. Northern Africa in manyways seems a world apart from the rest ofthe African continent. Unlike other areasof Africa, it is inhabited predominately bypeoples that are of Arab and Berberextraction. Whereas in other areas ofAfrica, religious belief of the population isquite mixed, the predominate religion ofall Northern African countries is Muslim(mainly Sunni Muslim ), with Christians,Coptic, Jewish and indigenous beliefs mak-ing up the remaining small percentage.

Having been colonized by various othernations in the past, each Northern Africancountry has had specific influence of othercultures, which is still reflected in theirlegal and justice systems as well as in thelanguages spoken.

THE COUNTRIES –A SNAPSHOT OVERVIEWAlgeriaAlgeria, is the second largest country inAfrica, after Sudan. The main expatriatedestination in the country is Algiers, thecapital. Algeria’s population is 99%Arab-Berber origin, less than 1%European; and 99% of the population areMuslim. The country was dominated byFrance for more than a century and waswar -torn for many years during the 1950suntil independence was achieved in 1962.Between 1992 and 1998 there was aninsurgency with intense fighting whichresulted in an estimated 100,000 deaths.

EgyptUnlike other the populations of other coun-tries in Northern Africa, the population ofEgypt is made up of 98% Egyptian , 1%Berber, Nubian and Bedouin, and 1%European; and, 90% of the population areMuslim, 9% Coptic and 1% other Christian.The country was ruled by many dynastiesthroughout history and came under Britainfrom 1882 untill after WW2. The officiallanguage is Arabic but English is also widelyspoken and French is also understood andspoken by the educated. Main destinationsfor foreign workers is Cairo the capital,Alexandria in the north, as well as archaeo-logical digs throughout the country.

Libya97% of the population are Berber and theother 3% being made up of Greeks,Maltese, Italians, Egyptians, Pakistanis,Turks, Indians, and Tunisians; and, 97% ofthe population are Muslim. The country’slanguage is Arabic, and Italian and Englishare widely understood in the main cities.Almost all US unilateral sanctions againstLibya were removed in April 2004, helpingLibya attract more foreign direct investment,mostly in the energy sector. Main expatri-ate destination is Tripoli as well as the oilfields out in the desert - Around 95% ofexport earnings come from the oil sector.

SudanEthnic groups making up the populationare mixed; 52% are black, 39% Arab,6%Beja, and 3% are foreigners . SunniMuslim is the predominant religion with70% of the entire population being of thisbelief, located mostly in the north; 25%hold indigenous beliefs; the 5% of thepopulation that are Christian live mostly inthe south and in Khartoum.

The official language of the country isArabic (official), with also Nubian anddialects as well as English being spoken.Sudan obtained independence from UK in

1956 , since then has been through twocivil wars , famine and on going conflictsleading to thousands of death and dis-placement of millions of people. The coun-try is still location of on – going genocide,and the political situation has caused seri-ous issues in humanitarian aid reachingthose sorely in need of it. Capital isKhartoum. Most relocating there are ofNGOs and Humanitarian organizations withsome Multinationals.

TunisiaThe population of Tunisia is 98% Arab and1% European with Jewish and other mak-ing up the remaining 1%. 98% areMuslim, 1% Christian and 1% Jewish.Arabic is the official language of the coun-try and one of the languages of commercewith French being the other. Tunisia wasliberated from French rule in 1956 and hasmaintained a moderate stand in its foreignrelations. Islam fundamentalism is lessstrong here than in the other NorthernAfrican countries and there is growingpressure for a more open society. Tunis thecapital is a main expatriate destination.

Western SaharaWestern Sahara is listed by UN as being anon-self-ruling territory since 1991 whenguerilla warfare ended with a ceasefire.The Kingdom of Morocco and The PolisarioFront Independence movement as well asthe government of the Saharawi ArabDemocratic Republic dispute control of theterritory, most of which is presently con-trolled by Morocco. All trade and other eco-nomic activities in are controlled by Moroccoand in 2006 a trade agreement was signedbetween EU and Morocco, allowing EU fish-ing off Morocco’s coast, including the dis-puted waters of Western Sahara. BothMorocco and The Polisario Front have inter-ests in exploration for oil off the coast.

Source of statistics and data; CIA World Fact book

WORLD TRADE

Destination North Africa

by SARAH LANGMEAD, COOENTERPRISES GROUP • [email protected]


GlobalHRNews

FOCUS ON MOROCCODestination in Detail

Morocco, officially called The Kingdom ofMorocco and known locally as Al Mamlakahal Maghribiyah… or just Al Maghrib, islocated in Northern Africa between Algeriaand Western Sahara, bordering the NorthAtlantic Ocean and the Mediterranean Sea.The present population is estimated to besome close to 34 million.

Morocco has a thriving expatriate commu-nity, located predominately in Rabat, thecapital and the city of Casablanca.Whilst many of the international communi-ty are free-lancers, attracted to the countryby relatively low real estate prices, a grow-ing number of multinational companies arerelocating workers into the area.

COUNTRY SPECIFICS FORRELOCATION OF FOREIGN WORKERSThe CultureHaving been ruled by many differentnations throughout history, by Moorishdynasties as well as Spain and France.Present day Morocco is a blend of differentcultures with the contrast of traditional andmodern life coexisting side by side. 99.1%of the population are of Arab-Berber originand over 98% of the population are of theMuslim religion. This naturally has a greatimpact on the culture of the country. Theofficial language of Morocco is Arabicalthough French is often the language ofbusiness and government and is spoken bymost of the population.

Expatriate HousingBoth Rabat and Casablanca are very livablecities with good roads and a range ofexpatriate suitable housing on the rentalmarket. Both have a large internationalcommunity and offer many facilities as wellas opportunities for recreation. Rabat hasexpatriate suitable housing in the areas ofHassan, Agdal, Souissi, Hay Riad (Ryad),les Orangers, and Ocean. The Quartierdes Ambassadeurs, is preferred by diplo-matic staff. Residential areas popular withforeigners in Casablanca include Cornicheand Maarif where much of the architecturewas influenced by the French and theJewish, who built elegant town homes.California is a newly built area of apart-ment housing and facilities near the

motorway to Rabat and the road comingfrom Marrakech, it is also the location ofan international school.

The budget required to rent expatriate levelproperties in both cities is similar, withFurnished 2 bedroom apartments costingaround 14000 Moroccan Dirham monthly (approx 1700 USD ) and 30000 – 40000MAD ( approx 3600 – 4900 USD ) for a fur-nished house with garden and garage.Non-furnished properties of the same typeand level cost around 600 USD less. RealEstate Agency fees for rental property areusually equivalent to one months rent, to bepaid by both the landlord and the tenant. Arefundable security deposit is generallyasked of between 1 and 2 months rentalvalue. A Landlord is required by law to regis-ter a lease contract, the taxes of the regis-tration being the landlord’s responsibility.

International SchoolingThe American School (www.ras.ma) is locat-ed in Rabat . Casablanca has 2 internation-al schools: the Casablanca AmericanSchool (www.cas.ac.ma) , located in theCalifornia area which is home to manyexpatriates, and The George WashingtonAcademy (www.qwa.ac.ma ). Both citieshave a selection of French private schools.The UK University of Sunderland has a jointdelivery programme in Morocco with theSIST in both Casablanca and Rabat.

IMMIGRATION REQUIREMENTSFOR FOREIGN WORKERSEntry VisasCitizens of the EU and of the followingcountries do not require a visa for stays ofup to 90 days in Morocco : Algeria, SaudiArabia, Argentina, Australia, Bahrain,Brazil, Canada, Chile, Congo (Brazzaville),South Korea, Cote d’Ivoire, Croatia,Andorra, UAE, USA, Monaco, Guinea,Indonesia, Iceland, Japan, Kuwait, Libya,Liechtenstein, Mali, Mexico, Niger, Norway,New Zealand, Oman, Peru, Philippines,Qatar, Senegal, Switzerland, Tunisia,Turkey, and Venezuela. Citizens of HongKong and Singapore do not require a visafor stay up to 30 days.

Upon arrival, it is very important to have anentry stamp entered in the passport or onecould be liable to be prosecuted for irregu-lar immigration. For security reasons, it isrecommended that foreigners inform thelocal police of their address of stay and it is

also important that expatriates register atthe consulate of their country of originupon arrival (proof of consulate de-regis-tration is a requirement when the foreignworker leaves the country at the end ofhis/her assignment – note below )

For stays exceeding the allowed time of thefirst entry visa, foreigners must request a cer-tificate of registration or residence card(Certificate d’immatriculation or Carte deséjour). This is applied for within the country.

Work Permit - Contrat de Travail D’EtrangerFor any foreign national to be able to workin Morocco both a valid Work Permit andresidency registration are required. Thisapplies for both local hires and workersseconded from a foreign mother company,although documents required and processvary slightly for each category.

A Work Permit, or a Work Contract for for-eigners (‘contrat de travail d’étranger’)must be validated by the Ministry of Labor(Ministère de l’Emploi). The applicationfor a Work Permit must be submitted atthe Immigration division of the LaborMinistry which is located in Rabat alongwith documents from the local and foreigncompanies attesting to the agreement , evi-dence of previous experience and qualifica-tions of the worker in question as well asfinancial status of the local company. Nofee is required. Local hires also requirethe attestation of the ANAPEC (Agencenationale pour la promotion de l’emploi etdes competences)

Unlike Work Permit applications in mostcountries, in Morocco, the work contract is

CONTINJUED — PAGE 51


GlobalHRNews

THE NEED FORINTERNATIONAL COVERAGEMost times, when living overseas, tradi-tional sources of US private, group, orHMO health insurance will not meet youremployees’ needs. Geographical exclu-sions and provider limitations common tothese policies will restrict or even eliminatethe health insurance coverage available tothem while they are outside the USA.

At the same time, they may not be eligiblefor participation in a foreign governmentrun health care system. Most Americansdesire not to get involved with governmentrun health care, but want access to healthcare in other countries on their own terms.

WHEN EMERGENCIES HITIn the event of a dire emergency, where anemployee needs to be air evacuated fromone country to another for proper treat-ment, who pays for this tremendousexpense? Medical evacuations can easilyreach into the tens of thousands of dollars!

In the event of a death overseas, who paysfor the return of remains back to Americafor burial? It is not uncommon for agrieving family to be left with the burdenof paying tens of thousands of dollars tohave a body returned from overseas.

THE GOOD NEWS!The good news is that US style health insur-ance plans are now available at very reason-

able rates for individuals or groups, who areliving overseas. These plans can cover upto $5,000,000.00 of major medical expens-es, plus emergency medical evacuation,repatriation of mortal remains, accidentaldeath, and they automatically include otherimportant features such as a 24-hour,worldwide assistance telephone number.

LIFE INSURANCEOne last item to consider for anyone goinglong term is life insurance. Many US lifeinsurance companies frown on insuring thelife of workers living in other countries. Tofulfill this need, seek out an "international"life company. Lloyds of London, for exam-ple, provides affordable coverage for USworkers and expatriates living overseas.

NOW WHAT?Now the obvious question as an employeris - where do I get more information and aquote on international health or life insur-ance? Well, the average insurance brokerdoesn't have a clue! These types of poli-cies are not found on every "street cor-ner". However, there are some insurance


MANAGEMENT

Insurance Without Bordersby MARK SNEED, Vice President • INSURANCE SERVICES OF [email protected] • +1-480-821-9052

33

GlobalHRNews

• BUSINESS AS AGENT – CONTINUED

took place. During the period of time inbetween summits an explosion of energyoccurred: there are now four thousandcompanies that are now part of the UNGlobal Compact’s new corporate citizen-ship movement.

Yes it’s a symbol of a huge macro-trend.

But what’s the bottom line for HR? I havethree conclusions, all sharpened by the UNGlobal Compact’s Leaders Summit inSwitzerland held on June 14th-16th 2007.

First, almost all the delegates at the sessionwere business CEO’s and they are bringingcorporate citizenship into their companieswith a dual mind-set: “Doing good anddoing well” is the business innovationmindset of the 21st century, said the ChiefFinancial Officer of Fairmount Minerals,Jennifer Deckard.

Lesson One: HR needs to be going whereour top executives are heading — towarda business savvy conception of sustainablevalue creation.

Lesson Two: People everywhere want com-panies to be part of the solution, and theyare proud of their own CEO’s when theystand up and speak up. One of the mostelectric moments of the summit was whenthe Chairman and CEO of the Coca-ColaCompany, Neville Isdell, raised the question:

“As we meet here today, global businessfaces one of the most important questionsof our time. Are we a barrier to sustain-ability? Or are we the greatest hope?”

He then went on to describe how sustain-able value-creation is sending a wave ofinnovation throughout the Coca ColaCompany in arenas such as protecting bio-diversity, clean water, climate change, andeconomic empowerment in poverty strick-en arenas.

But what struck the crowd was the passionand conviction of his words. “The timefor abstract debate and hopeful assump-tion is gone. Business must becomeagents of transformation. We have theresources. We have the talents. And let'sbe clear here, we have the self-interest.”

Lesson Three: For the future of HR:

Again quoting Neville Isdell; “its time tostep up, speak up, and scale up” this newsolution-focused approach to business.

Lesson Four: The business case for all thisis becoming crystal clear. Two groundbreak-ing studies, one by Goldman Sachs and theother by the McKinsey Company, weresimultaneously released. McKinsey’s studyof CEO’s showed that 92% of global corpo-rate CEO’s see corporate citizenship in envi-ronmental, social and governance areas assignificantly more important to businessstrategy than was the case five years ago.And the Goldman Sachs financial analysisdiscovered, in stunning detail, exactly why.Goldman Sachs, one of the world’s leadinginvestment banks, showed that among sixsectors covered – energy, mining, steel,food, beverages, and media – companiesthat are considered leaders in implementingenvironmental, social and governance (ESG)policies in order to create sustained com-petitive advantage have outperformed thegeneral stock market by 25 per cent (thiswas over a one year period). In addition, 72per cent of these companies outperformedtheir peers over the same period.

In other words, and I say this to all my HRcolleagues, we are in a game-changingmoment. Let’s call it the eclipse of “thegreat trade-off illusion” …or the belief thatfirms must sacrifice revenue or outstandingfinancial performance if they choose to dowell. It simply is not true. It’s a myth. Infact the opposite is true.

That’s precisely why Dan’s HR proposal tounite his whole company around “the tenlargest global problems facing humankind”is so brilliant.

This is the re-named “corporate citizenship”in action. Stay tuned. In forthcoming fea-tures I am going to share exactly how this isall being done, not just at Dan’s place but atplaces such as Fairmount Minerals (thisyear’s corporate citizen of the year at the USChamber of Commerce) as well as thelargest corporation in the world and others.It’s a tremendously exciting time to be alivein the field of Human Resources.

ABOUT THE AUTHORProfessor Cooperrider is past President of theNational Academy of Management’s ODDivision and has lectured and taught atHarvard, Stanford, University of Chicago,Katholieke University in Belgium, MIT, University

of Michigan, Cambridge and others.

Currently David serves as Faculty Director of theCenter for Business as an Agent of WorldBenefit. The center’s core proposition is thatsustainable value creation is the business oppor-tunity of the 21st century, indeed that everysocial and global issue of our day is an opportu-nity to ignite industry leading innovation, eco-entrepreneurship, and new sources of value.

David has served as researcher and advisor to awide variety of organizations including theBoeing Corporation, Fairmount Minerals, GreenMountain Coffee Roasters, McKinsey, Parker,Sherwin Williams, Verizon as well as AmericanRed Cross, American Hospital Association,Cleveland Clinic, World Vision and United Wayof America. Most of the projects are inspiredby the Appreciative Inquiry (AI) methodology forwhich Professor Cooperrider is best known.

His founding work in this area is creating a posi-tive revolution in the leadership of change; it ishelping institutions all over the world discover thepower of the strength-based approaches to multi-stakeholder innovation and collaborative design.Admiral Clark, the CNO of the Navy, for examplebrought AI into the Navy for a multiyear projecton “Bold and Enlightened Naval Leadership.” Andin June 2004 Cooperrider was asked by theUnited Nations to design and facilitate a historic,unprecedented Summit on global corporate citi-zenship, a meeting between Kofi Annan and 500business leaders to “unite the strengths of mar-kets with the authority of universal ideals to makeglobalization work for everyone.”

David’s often serves as meeting speaker andleader of large group, interactive conferenceevents. His dynamic ideas on appreciativeinquiry and sustainable design have been pub-lished in journals such as Administrative ScienceQuarterly, Human Relations, Journal of AppliedBehavioral Science, The OD Practitioner, and inresearch series such as Advances in StrategicManagement. More popularly, ProfessorCooperrider’s work has been covered by TheNew York Times; Forbes Magazine; Science, FastCompany, Fortune, Christian Science Monitor,San Francisco Chronicle, and Biz Ed and others.He has been recipient of Best Paper of the YearAwards at the Academy of Management andwas name top researcher of the year at Case in2005. Likewise numerous clients have receivedawards for their work with Appreciative Inquiry.

KEY WEBSITES:http://appreciativeinquiry.case.edu/http://worldbenefit.cwru.edu/ ■

Volume 5 / Issue 4


GlobalHRNews

While the international markets andtheir commentators look East to the

growing economies in China and the restof Asia, we should not lose sight of theWest, as London stakes its claim as thelead destination for an increasing range ofbusinesses looking to establish world head-quarters or lay the ground for an expan-sion into the European continent, theMiddle East or Asia.

Global HR Directors with a feel for theLondon expat community and educationoptions continue to benefit as firmsincreasingly choose to relocate workers tothe City of London.

Research from the agency responsible forforeign direct investment (FDI) for the UK’scapital, recently reported that foreign busi-ness investment accounts for over one-quarter, 27 per cent, of the city’s economy,and brings in over £52 billion to the UKeconomy each year. The research, under-taken by DTZ and commissioned by ThinkLondon also identified that foreign directinvestment (FDI) had brought more than500,000 jobs to London, 13% of the total.

According to the research, American busi-nesses continue to conduct the most busi-ness out of London, with 31 per cent ofthe city’s international business activityresulting from the States. Evidence indeedthat overseas investment and Expatriatesare a pretty fundamental part of theLondon and UK economy.

Well, I hear you say… They would say that,wouldn’t they? Their role is to encourageinvestment and jobs to our capital city.

So how about a few more facts: GMAC’sGlobal Relocation Trends Survey 2006,identifies the United Kingdom as the sec-ond most popular destination forExpatriate relocation, with a 17 per cent

share and second only to the US.

For those of us who call London our home,we’ve seen the growing number of inter-national workers piling onto the‘Underground’ (subway) each morning, anever increasing range of nationalities mak-ing London one of the most cosmopolitancities in the word; in fact it’s hard to thinkof a more culturally exciting city anywhere,and an increasingly international mix ofchildren taking places at UK state, inde-pendent and international schools.(Figures from the Independent SchoolCouncil (ISC) here in England, informs usthat children of foreign nationals are grow-ing more quickly that any other group).Here at ACS, we can certainly vouch forthat, with extremely high demand forschool places.

The above-mentioned facts are convincingthat one of the developed world’s oldestcities is experiencing rapid growth andtransforming itself into a dynamic hub,particularly for overseas companies tolocate. Here’s a little more to convinceyou. National statistics from theGovernment show quarter two 2007 GrossDomestic Product (GDP) rising again fromquarter one and 3% higher than the sec-ond quarter last year. The growth has beendriven by both manufacturing and theservice industry, but the lead growth sectoris business services and finance, up a full1.5% in the quarter to June 2007.

Recent reports in the media have also indi-cated that “London has overtaken NewYork as the financial capital of the world”as figures confirm that London overtookNew York as the location of choice forIPO’s and Europe (lead by London) sur-passed the USA in value of all new listings.

We also hear from our IT colleagues that

London is the Wi-Fi capital of the world,too, again overtaking New York this yearwith an amazing 7,100 wireless networksaccording to the annual survey by RSA,claiming this “stellar growth was driven bybusiness”. Then there’s the shiny newCanary Wharf district with a claimed95,000 people currently working in thearea and a vision to expand to accommo-date up to 200,000. All this before I evenmention the 2012 Olympic Games and the£9billion, yes that’s right, £9billion UKpounds sterling investment in the games,transportation and redevelopment of a notso affluent part of town.

So why is this important to us involved inRelocation?

Well, for global HR Directors looking tokeep their fingers on the pulse of trends ininternational relocation, it may come as asurprise that while continuing to exploreemployee relocation options in emergingmarkets like Asia, the Middle East andEastern Europe, Think London’s reportshows that the number of internationalworkers assigned to work in London willcontinue to steadily increase over the nextdecade.

While London has always been an appeal-ing location for international relocationsfrom the US, with a shared language and


GLOBAL MANAGEMENT

London: Business Destination& Global Education

by Fergus Rose, Head of MarketingACS International Schools


GlobalHRNews


GlobalHRNews

• “LIGHT” PACKAGES – CONTINUED

the expatriation contract. These compa-nies are often in the consultation business,whose approach to career managementfalls under the responsibility of both par-ties; in other words, the participatingemployees must take risks and the compa-nies must assist them.

2 The term “local +” contract offers thebenefit of consolidating the diverseapproaches of each company. “Local +”contracts can be quite generous dependingon the importance of the employee’s posi-tion in the company. This generosity canlead to a blurring between what defines the“local +” contract and the expatriation con-tract, leading to problems in negotiation.

When it is the employees who request towork abroad, they are given “lighter” con-tracts.

It should be pointed out that the first fac-tors subject to change in a standard expa-triation benefit package are the premiumand the housing benefit in the host coun-try. Next, family advantages are progres-sively eliminated (for example, yearlyroundtrip airline tickets, spousal assistance,schooling). As a sensitive issue, efforts aremade whenever possible to maintain“social protection” in the country of ori-gin, and where impossible, is transferred toprivate companies specialized in interna-tional “social protection”.

More generous policies should be consideredas “expatriation” policies (“anchoring” ofthe employee in the country of origin,net/net approach; reducing or removing cer-tain extra advantages). The purist approachwould place the contract and remunerationat the local level, and add some “comfort”features for the employee abroad.

3 Young employees are often given“local +” packages, and some companypolicies are formalized on this point. Socialprotection is sometimes the only aspect thatdifferentiates the young employees fromthe employees from the host country.Although in Europe, certain companiesfavor the coordination of social securityschemes at the level of the European Unionand affiliate these young employees to thesocial protection scheme in the host coun-try. In other companies, these contracts fall

within the framework of a formal develop-ment program where being assigned abroadis part of the work experience.

4 Some companies have thoughtabout, or are currently thinking about,expatriation policies tailored to a geo-graphic zone (Asia, Europe, NorthAmerica, Africa, etc.) with “local +” con-tracts. These policies would have theadvantage of reducing gaps in remunera-tion between employees on interregionalassignment. However, other companieshave noticed that these policies couldresult in selling and recruitment difficulties.

5 Finally, certain employees are recruit-ed directly from the labor market out-side of their country of origin and aretreated as local employees. However, mostHuman Resource Management Boards arestill not aware of these recruitments.Employees sometimes find a position abroadeither through a company job exchange orthrough direct contact with local HRDirectors. However, if the post is notspecifically designated for an expatriate, theemployee will not have any particular status.Certain benefits (social protection) in thehost country may be added upon therequest of field staff or of local HR Directors,including assistance in moving.

During this benchmark session, the partici-pants, in particular the InternationalMobility Managers, brought up numerouscriticisms and negative aspects concerningthe expected advantages. In regards tointernational mobility management andthe estimated savings entailed, every com-pany agreed that these approaches makemobility a complex procedure, especiallyconsidering that it must be handled in thecontext of local legislation. The assistanceof local consultant firms becomes neces-sary due to the time-consuming effortspent in preparing the expatriation and thedifficulty in applying the legislation.

The end result is that employees are man-aged on a case-by-case basis in function oftheir personal situation, and with regard tothe legislation in the country of origin andthe host country. The long-term risks,namely in terms of retirement, are more dif-ficult to manage. With all this in considera-tion, the idea of saving money through thisprocess is not necessarily guaranteed.

In summary, “light” contracts are not veryattractive, and in consequence decreaseemployee motivation, even if the assign-ment abroad includes a career promotion.“Light” contracts also pose difficulties inrecruiting high-potential and motivated can-didates, and in fostering employee loyalty.

Also, managing employees with expatriateand “local +” contracts is ill-accepted byemployees and managers alike, who havedifficulties in accepting differences intreatment. These differences can lead toreal discrimination issues between employ-ees, and in certain companies, these poli-cies have even resulted in complete fail-ure. Employees no longer ask to goabroad, but wait until the companyapproaches them to negotiate a morefavorable expatriation package.

Even for persons who receive a promotion,the financial aspects present many shortcom-ings, as the spouse may have to give up theirsalary and benefits, representing a crucialfinancial loss for the couple. In the casewhere the retirement contributions are notmaintained in the expatriate’s country of ori-gin, local contracts take the relay and pro-voke insecurity issues because the employeesthen fall under several retirement regimes,even within the European Economic Area(EEA). This is a major drawback with a viewto developing such policies.

Finally, the Mobility Managers presentaddressed the difficulty encountered inmaintaining a coherent policy over timewithin a system that allows numerousexceptions in negotiating a small compen-sation, and the inequalities betweenemployees are created by this “case-by-case” approach.

Perhaps some of these problems may beresolved by a company that clearly states inthe policy why it uses “light” contracts.For many companies, the use of “local +”contracts could be justified if the careersfor the expatriates concerned are managedand a system is set up for this purpose,however, this is not always the case.

And to be consistent, setting up a policy of“local” or “local +” contracts should occuronly after answering three basic questions:

• What do we mean by “internationalmobility”?



GlobalHRNews

• LONDON – CONTINUED

similar values, recent growth in the expatri-ate community has meant that there aremore options than ever before available tohelp employees establish their families andtheir professions in the capital.

With the much commentated competitionfor global talent and the predicted shortfallin young workers the balance is shifting,giving employees greater opportunities tochoose where they locate. In such a cli-mate non-work-based criteria rate evenmore highly in expatriate’s choice of desti-nation; will it be an exciting place to liveculturally rich with good arts, relaxationand leisure opportunities?

And if I have a family how will they fair?What are the education opportunities formy children?

Like it or not, these issues are being forcedto the top of the agenda of InternationalHR professionals in securing the righttransferees and attracting the top talent tothe business-driven locations of theirorganisations.

If we reflect on this, there’s nothing sur-prising here really. However importantwork and career are, there are few thingsmore important to a parent than their chil-dren. This has all got rather more impor-tant for employers right now, with manymatured developed economies set to expe-rience a shortfall of new labour cominginto the marketplace (some predictions sayfor every new worker entering the work-force, two will “retire”).

LONDON’S LEARNING LANDSCAPEUnlike many business hubs, London hasalways been seen as a family-friendly loca-tion for international businesspeople, par-ticularly North American’s, facing theprospect of moving overseas with a spouseand children. With a shared languageand a common set of cultural values,London offers children and spouses anexciting place to learn, explore andbecome part of a new community. Theeducational options are seemingly endless,be it top world class universities, other fur-ther learning opportunities or for schoolage education. In London there’s choice.From the 500-year-old plus private schoolssteeped in ancient tradition, the local

state-funded schools, and a range of inter-national schools which have grown updeveloping various expatriate communitiesaround them, which thrive in London.

Both the state and private schools in the UKoffer a traditionally British curriculum, whichcan broadly be described as one planned ona strongly defined traditional knowledgeand memory based approach. Key exami-nations are at the end of primary school(around 11 years of age and then aroundtwo sets of exams, the first of which pupilstake at 16 (GCSE’s) and the second, morespecialised exams, are taken at 18: the socalled A levels. The key difference betweenUK school leaving qualifications and thosein other Western countries is that studentsmust choose specialist areas of study at 16,which then effects what they go on tostudy at college or university.

The British curriculum tends to measurestudent achievement with an emphasis oncomprehensive exams as opposed tocumulative grading systems which takeinto account a pupils’ progress throughouttheir school career.

International schools in London offer arange of curriculum options, and vary fromniche schools which offer specific nationalcurricula to more multi-national institutionswhich tend to offer the InternationalBaccalaureate curriculum.

Developed by educationalists in Geneva dur-ing the 1960s, the IB was designed to pro-vide internationally mobile children with asingle global curriculum model which wouldbe recognised at schools and universitiesaround the world. The InternationalBaccalaureate (IB) Diploma provides a multi-cultural curriculum, as well as a broad selec-tion of courses and is recognised by leadinguniversities worldwide for its challengingcoursework which prepares students foruniversity-style learning. Since developingthe IB Diploma, the InternationalBaccalaureate Organisation has created cur-riculum models for younger children – the IBPrimary and Middle Years programmes –which are on offer at a handful of London’slarger international schools.

WHICH SCHOOL IS BEST FOR MY CHILD?When choosing the right London-basedschool for a relocating family, it is critical totake into account the child’s learning

needs, the institution’s dedication to cultur-al integration and pastoral care, and, final-ly, where the child is in their educationalcareer and which institution will best pre-pare that child for the next level of school-ing they will receive.

For children with specifically diagnosedlearning needs or those who have proven toexcel in a certain area such as art or musicat a young age, seeking the advice of aneducation consultant is a good first step.While on the whole international, state, andindependent schools in the UK have pro-grammes in place to help students withlearning disabilities, education consultantswill be able to put parents in touch withinstitutions and experts which cater to theirchildren’s specific learning needs.

For students whose focus is on non-aca-demic pursuits or those who have specificlearning needs, it is important to under-stand that most UK independent schoolshave selective entry requirements, whichoften require children to sit exams beforesecuring a place. While this is not true ofall schools, it is an important question toask in the first instance, as entrance exams,interviews or other pre-entrance processesmust be factored into a family’s pre-moveplanning. Schools with rolling admissionspolicies and different types of selectiveassessment schemes offer more flexibilityfor families whose move is dictated bywork schedules as opposed to the academ-ic school year.

MAKING THE TRANSITIONAND SETTLING-INMoving a family overseas is never easy, butis worth the hard work because of theexperiences it opens up for you. London,with it’s internationally diverse workforceand cosmopolitan feel, offers a wide rangeof cultural and professional opportunities,and because of all the new options sur-rounding them, foreign nationals tend tofind that the transition into being a“Londoner” easy.

However, to ensure the transition is smoothfor employees and their families, Londonboasts expatriate social and business groupsfor nearly all major nationalities. Thesegroups are often supported by their nationalembassies in some context, and serve as anintroduction to expat life in the capital, as



GlobalHRNews

the lease. It is not registered in theHousing Ministry, but it is notarized.To protect our clients from owners thatdo not want to return the deposit at theend of the lease, we are negotiating toinclude a clause in the lease stating thatthe deposit can be used as the lastmonth payment after we send the 30days notification letter and an inspectionof the property is done and both partiesagree that everything is acceptable. ■

properties or properties where ownersdeclared that they would occupy the res-idence in order to avoid the FECI. TheFECI is charged when the mortgage isfor an investment property. Owners donot want to pay this extra 1%, butwhen they do it will increase the rent ofthe property. In the private lease,owners hold the deposit instead of thegovernment (Housing Ministry) and theyare responsible to return it at the end of

Kathy Paddock, CRPVice President - Relocation Services

E-MAIL: [email protected]

1-800-821-1411MEMBERS:

WORLDWIDE ERC • INRELCO • RDC

Online Homesearch-Assistancehttp://www.c21superstars.com

• ACCREDITED WITH MAJOR RELOCATION COMPANIES

• CERTIFIED RELOCATION AGENTS; ON-GOING EDUCATION COURSES

• FULL-SERVICE RELOCATION DEPARTMENT

– Rentals – Area Tours and Maps – Expert Community and School Guidance – Personalized Info-Kits and

Cost of Living Comparisons – Spouse Employment Guidance – Mortgage Services – Group Move Expertise

• FINE HOMES & ESTATES DIVISION

• CENTURY 21 SUPERSTARS #7 IN U.S.

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WORLD TRADE

PanamaUpdateby ELVIRA VILLALAZLARM Panama • [email protected]

Republic de Panama is in a growthmode. This is primarily due to a lot of

investments in the country and the newlyapproved Canal expansion. Panama hasbeen growing very fast in the last monthsand there are some important items thatwe would like to inform you for managingexpats relocating to Panama:

1. Schools: Spaces in schools arebecoming an issue. Most grades are fulland with waiting lists. InternationalSchools have more possibilities as kidscurrently enrolled may be moving toanother country as well, but this is stilla matter of concern to all parents whoarrive in the country. Local schools(calendar year from March toDecember) are usually full as well ormay not have space available for allkids in the family (in case there is morethan 1 child in the same family).

2. Housing: Prices of housing are goingup, especially in Costa del Este, wheremost communities are gated in the city.Houses in this area are preferred byexpats with families, where the highdemand is also increasing the price. Acouple years ago, houses for rent couldstart at $2,200, but right now there isnothing below $2,800 - $3,000. Forfamilies looking for a 4 bedroom house,prices are over $4,000.

3. Lease Contracts: New regulations inthe Housing Ministry procedures havecaused apartment/home owners torequest a private lease. The HousingMinistry is requesting now a letter fromthe bank before leasing a property,which automatically adds 1% FECI inter-est rate over the regular mortgage tothe owners. This is applicable to NEW


GlobalHRNews

• LONDON – CONTINUED

well as a connection to back home.

For employees whose children attend inter-national schools, families have the opportu-nity to meet other foreign nationals livingand working in London. Because of thetransient nature of much of London’s expatcommunity, the international schools thatservice London foreign employees and theirfamilies offer a range of whole-family activi-ties. Such schools often serve as a socialhub for not only expat children, but offerfacilities and social activities that encouragethe wider family to use the school as ameeting point for the capital’s growingcommunity of international professionalsand their families.

DESTINATION LONDONThis week, at the time of writing this arti-cle, I’ve witnessed the greatest range ofnationalities commence our new schoolyear at ACS, attended the Notting HillCarnival, Europe’s biggest street carnivalcelebrating London’s ethnic diversity, andconducted business in the high-rise towersof Canary Wharf.

To me, proof positive that as more andmore corporations choose London as a des-tination to conduct business and more for-eign employees find that they slot in well toliving and working in one of the world’sbusiest commerce hubs, the education, cul-tural and social offerings for expats in theUK will only increase. When it comes toeducating children and supporting familiestransitions overseas, London’s facilities, serv-ices and schools offer busy HR directors andrelocation officers the confidence that relo-cating employees and their families will bein good hands.

But don’t take my word for it, come andvisit yourself. ■

• “LIGHT” PACKAGES – CONTINUED

• Does international mobility make sensefor my company?

• At what point does international mobili-ty no longer make sense?

The MAGELLAN Network is a Company Networkthat provides its members, mostly InternationalHuman Resources, C&B and Mobility Managers,with the opportunity to discuss and share infor-mation online. For further information, please

call Anne-Laure BUDIN, DirectriceCommunication et Développement du CercleMagellan: + 33 (0)1 42 34 78 78 or write anemail: [email protected]

[1] Localization: when an expatriation contractis changed to a local contract

“Local +” Contract: a single local contract in thehost country plus several incentives given to anemployee from abroad; “Local” Contract: localrecruitment or hiring an international staff mem-ber under a single contract in the host country;other similar practices. ■

LONDON27 & 28 Nov

10th Anniversary conference20 education classes

info: [email protected]


GlobalHRNews

• CULTURE COACHING – CONTINUED

morphed over the two years she had been there. While the Smith’s ini-tial cross-cultural training provided them with all the critical informationthey needed to know about Chinese daily life and work culture (specifi-cally as it plays out in Shanghai), it did not provide the critical informa-tion about working with 15+ additional Asian cultures that became sonecessary in Ms Smith’s job, precisely because such a need was simplynot identified at the beginning of her assignment. Both Ms Smith andthe company did not recognize the significant investment Ms Smithwould have to make with then unknown individuals in Beijing in orderfor the office in Shanghai to succeed, and now Ms Smith was facedwith the challenge of building and maintaining those relationships in afar-away city she was not initially trained for. Finally, while Ms Smithherself will be the first to announce to anyone who even thinks aboutgoing on assignment without cultural training that is a recipe for failureand that her cross-cultural training was more valuable than she couldhave ever anticipated, she will also be the first to recognize that suchtraining can never prepare you for the strategic and tactical problem-solving that is necessary every day in response to immediate work situa-tions. How helpful it would be, Ms Smith remarked once to her HRcontact in Chicago, if she could have someone on-site in Shanghai withwhom she could periodically work with to solve immediate work-relatedissues as they developed. And on a personal level, how helpful itwould be, Ms Smith continued to her HR contact in Chicago, if therewere someone on-site in Shanghai whom she and Mr Smith could turnto, in order to periodically explore solutions to the family and relation-ship problems that develop over time in response to the pressures of theinternational assignment, on-going as they developed.

Enter Mr Lu, Shanghai-based cross-cultural coach extraordinaire,identified and prepared by the intercultural training consultancy tostep in and assist the Smith’s with an on-going, on-site, issues-drivencoaching plan around their critical business and personal concerns.

Cross-cultural Training isa Pre-Requisite for

Cross-Cultural Coaching

One leads to the other: training precedes coaching, laying thegroundwork for the on-going, on-site, issues-driven interventionthat is coaching. A coaching relationship is a dynamic partnershipdesigned to support people as they take action to clarify and realizetheir visions and goals in response to real-life, real-time adjustmentor business issues. It is an efficient and effective way to “actual-ize” the cross-cultural learning toward success in both work andlife, by supporting people as they deal “real-time” with their “real-world” professional and personal issues. Coaching can be especiallyhelpful for those facing specific challenges around global work andis particularly effective as a follow-up “next-step” after formalcross-cultural and global skills training. “Cross-cultural coaches”partner with individuals and small groups to support them as theyapply the learning they received in their cross-cultural training to“real-life” global issues.

One of the benefits of coaching is its flexibility. In coaching there is noplanned agenda, though there can and should be specific objectives.Coaches respond to the needs of the client as they arise on-going. For

individuals working globally, these needs can range from the personal toprofessional, and include as we saw with the Smith’s:

• assisting with the adjustment to specific difficulties faced by theassignee and/or family transitioning into and adjusting to a “for-eign” environment

• working through cross-cultural conflict or negotiation issues withcolleagues and associates

• managing foreign nationals on teams in work-related projects• etc.

Cross-cultural and global skills coaching differs from cross-cultural andglobal skills training in that coaching is a support intervention designedto assist the individual in applying their knowledge specific to a particu-lar project or issue. Typically, coaching occurs after training, and achievesits goals best when coach and recipient work as a partnership in identi-fying goals, strategies and tactics for on-going success.

So What Does a Cross-CulturalCoaching Plan Look Like?

For one thing, it represents an on-going process, not a one-timeevent: it is a “PLAN”, and as such is a package of mini-sessionsbetween the coach and the participants. Generally, the plan involvesthree steps, and can be applied to either individuals or small groups.

STEP ONE: The cross-cultural consultancy and trainer/coach on-siteassess the issues with a 360° assessment relevant to the client’s situa-tion focusing on the areas of cross-cultural adjustment difficulties,project or work management, negotiation, communication, problem-solving, etc., in order to identify the issues that need to be addressed.

STEP TWO: The cross-cultural consultancy and the coach partner withthe participants to agree on the terms and the objectives of the rela-tionship: the deliverables to be achieved, the time commitmentsrequired, the number and structure of the coaching sessions, and for-mat (whether for an individual or a group).

STEP THREE: Delivery and on-going feedback and evaluation of coach-ing sessions, assessment of degree of performance improvement, andplans and implementation for follow-up. Good mentoring and coachingrequires results that can be quantifiably measured on-going.

Individual or group coaching is typically conducted via telephone, webor in-person, depending on the needs and logistics required. Virtual(telephone or web-based) coaching ideally can follow-on after an ini-tial in-person meeting, but whether coaching is face-to-face or virtual,a hallmark of cross-cultural coaching is that it is always real-time,trainer-driven, and never passive learning.

The Secret to Good Cross-Cultural Coaching: AGlobal Cross-Cultural Service Provider

If the best cross-cultural coaching follows onto the fundamental cross-cultural training that both transferees and individuals working acrosscultures receive, then the transition between training and coaching ide-ally must be as seamless as possible. There must be transparent andimmediate, clear and flawless communication between the initial cross-cultural trainers and the cross-cultural coaches and trainers on-siteadministering the coaching sessions. Only a fully staffed, globally


GlobalHRNews

competent and experienced cross-culturalconsultancy organization can provide thiskind of network, facilitating the flow of com-munication between trainer, coach, client andparticipants, around the world. Most impor-tantly, only such a globally experienced andcompetent cross-cultural organization canguarantee for the client and the participantsthat everyone involved in the information,delivery and logistical coordination requiredfor effective cross-cultural learning, whethertraining or coaching, has been trained to thehighest standards and meets the pedagogicaland business criteria of excellent training andcoaching. Only a globally competent andexperienced cross-cultural consultancy caninsure that the deliverables from both trainingand coaching are available anywhere, for anyculture, around any issue, at any time. Thismeans working with a cross-cultural serviceprovider who, at a minimum, includes initialtrainer e-communication throughout theentire length of the international assignmentas part of the initial training package at noadditional cost.

The Three Steps TowardDeveloping Globally CompetentIndividuals…and Organizations

Remember earlier we said that coaching is aprocess, not a one-time event, and that itshould be part of a larger three-step processfor developing global competencies aroundthe world. Global Competency is the ulti-mate goal for any individual living and work-ing cross-culturally, and for any organizationworking across cultures. When looking todevelop “global competency”, cross-culturalcoaching plays a major role, but not the onlyrole. The larger “road map” for developingglobal competency involves three steps, ofwhich cross-cultural coaching is one:

STEP ONE: INTERCULTURAL AWARENESSTRAINING: for both individuals and their fam-ilies contemplating an international move,and individuals within any level of the organi-zation needing to work across cultures on aday-to-day basis.

STEP TWO: CULTURE-SPECIFIC & SKILLS-SPE-CIFIC TRAINING: for transferees and theirfamilies, either on-site or pre-departure, thisis training specific to the daily life and workchallenges of the new host culture; for work-force development, this is training that is tar-geted to those specific cultures and/or skills

(i.e., negotiation, project management, team-building, etc.) that individuals working on aday-to-day basis need information about inorder to do their job more effectively.

STEP THREE: CROSS-CULTURAL COACHING:issues-driven, on-site, periodic intervention,based on a plan created by both the partici-pants and the coach, focused to the solutionof specific issues and concerns, as they arise.

Cross-cultural coaching, as the third step inthe development of globally competent indi-viduals and organizations, is the insurance

policy for cross-cultural learning. It is the“glue” that makes the learning “stick” to thereal-world, real-life challenges that peopleface working and living cross-culturally, and itapplies the concepts and information inresponse to problems and challenges, as theyoccur. It cannot work alone: it is best whenadministered after both cross-cultural aware-ness and culture-specific training hasoccurred. But it is a necessary and final stepin the development of globally competentindividuals and organizations, a fundamentalcriteria for success in the 21st century. ■


GlobalHRNews


GlobalHRNews

• PWC PARAGUAY – CONTINUED

Ulysses Project worked on plans to help theschool become self sufficient.] Giving the stu-dents hands-on training and helping them toreally learn about entrepreneurship and the workethic is great. Since the public schools are insuch bad shape as a result of lack of sufficientresources, it is extremely important to find otherways to better educate the poor.”

• [An important part of the Ulysses programmeare frequent feedback sessions, where teammembers provide feedback to each other andreconcile cultural and other differences. Whatfollows are comments summarizing one ofthese feedback sessions:] “Well tonight, from aleadership training perspective was somewhatpivotal to me. We learned a great deal aboutthe importance of understanding other people’sperspective and not prejudging people butlearning their cultural perspective so the dilem-ma can be reconciled. We experienced that thisweek and were discussing it tonight. [She thentalks about a particular example.] “We then gotinto a discussion of the sense of protection thatthe French and Indian have over women. I cansee my interests are always being taken care ofby Stephane and Joy. I have decided to let itgo—take what comes and do not let it botherme. I really think today was the beginning ofthe new “open” me, one who really listens andtries not to dominate and “push” one’s views,but really understands the perspective and ideasof others…. The gift of unleasing the potentialin others represents a true leader.”

• “I learned a few more cultural differences.North American cultures are more advocacybased. If you are vocal and state what is onyour mind you are considered to be engaged inthe process. However the French cultures aremore silent in this regard and if you are socommunicative you are not consideredfavourably and are looked down upon. Frenchis a very formalistic culture—proper, rules, placein society, background is very important to theFrench. Joy’s Indian culture tends not to becommunicative and only speaks if there is a dis-agreement with the process. We discussed theapproach to discussing a different point of viewin India—small talk, talking around the issuebefore anything negative is said.”

• “We visited a lady who takes care of eightpeople with the money she earns cleaning outand selling the organs of cows. I took somepictures of her grandchildren. They saw thepictures and were very excited and kept askingfor another.”

• “We visited two clients—the first a farmthat had about 30 cows, sold milk. Very neatyard with pigs and chickens running around.

realize the impact our firm and this programactually achieves. This is all about ResponsibleLeadership—about sustainability, diversity andleadership development. It’s about listeningto others, appreciating their perspectives andacting ethically and with integrity. ThroughUlysses, I not only learned about these con-cepts but I had the opportunity to put theminto practice.”

• “When you listen and enter into a dialoguewith people it makes you feel very, very goodinside. It is important to share with others, notjust at work and at home, but in every con-nection you make. You can’t change theworld, but you can have an impact on everyindividual you interact with, and that is what Iwant to do. Seeing people in Paraguay thathad nothing, but in every interaction we hadwith them, they were happy. It made merealize that you need to make the world a bet-ter place, but wealth isn’t all you need tomake it a better place.”

• “The Ulysses Programme compels us tothink about more than profitability or the bot-tom line, but about how our leadership andour firm can help make society a better placefor everyone.”

• “I cannot express how excited I am to begoing home. I keep imagining over and overwhat it will be like when I see Brian and thekids when we land,” Tracey wrote in her journalon the flight back to Toronto, echoing thefamilial motivation of the legendary Ulysses.

Since returning from her Ulysses experience,Tracey has been actively working to implementthe lessons she has learned. She is determinedand optimistic about the programme’s value, asare the 80 PwC partners and 26 project partnerorganizations that have participated in theUlysses Programme.

The Journal of Business Strategy wasimpressed: “ The program joins together com-munity development with executive leadershiptraining in a way that moves corporate socialresponsibility in a new direction. In a devel-oping world economy simultaneouslyimpressed with and oppressed by ‘American-style’ globalization, Project Ulysses offers anexciting glimpse of how private enterprise cancontribute to the evolving public/private dia-logue about how to build trust and under-standing across the globe.”

—written by Judson Scruton

Global HR News presented PwC with theirCorporate Citizenship Award on May 23rd 2007in a New York ceremony. ■

I understand that to be very typical ofParaguay. No savings in the bank, just buy ananimal when you can and when you needmoney, sell the animal. We also saw a verygood client of the Fundacion—a tobaccofarmer. The tobacco company investedmoney to build the dryer and his loan waspaid back out of the crop proceeds.”

• “We spent all of last week in the officeworking on the key deliverables, assumptionsin the business plan, and the strategic plan.We then spent some time with the heads ofeach of the divisions of the Fundacion to iden-tify some key strategies and action plans tomeet their goals.” [Tracey brought up thepossibility of separating out some of thefinancing possibilities for the different divi-sions. There was significant disagreement onsome key considerations and Tracey was feel-ing as if her ideas were being sidelined.] “Wethen centered the discussion around beingdirect and the unwillingness of Joy andStephane to challenge my ideas. Then Joysaid that out of respect for a woman a manwill never disagree with a woman. Wow! Thisreally provided me with the whole picture. Itwas like the light bulb went off. Now Iunderstand their frustration. Joy did not real-ly agree with me, but did not say anything. Itcame out in the feedback sessions.”

• “So, my focus—really pay attention, especiallywhen talking to a man. Convert my statementsinto questions. Catch myself before I say any-thing and reflect on the wording. Consider theimpact on others!”

• “The day just flew by today! We were verybusy. Joy and Stephane taking the projectionsout another year and me working on redraftingthe strategic plan. The decision to allocatework this way came very easily. Our approachto the plan was a bit slow at first with a littlebit of inefficiency, but once we got focused inthe work and on goals and objectives, thingswent better. From Monday-Wednesday, I wouldsay we were working very well together.Everyone was busy, each contributing in theirown way.”

• “By the end of today, we had a rough draftthat was ready to be distributed around forcomments. I think based on what he haveheard thus far, it is in pretty good shape.”

• “They will have some tough issues to dealwith in the future of microfinance in Paraguay,but the good for society that organizations likethis provide is remarkable. I would like, atsome point, for Brian [Tracey’s husband] and Ito go back and work with them a bit and helpthem out.”

• “Ulysses is a wonderful experience. I didn’t


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get ready for...

SILICONVALLEY

30 Jan '08

info? [email protected]

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GlobalHRNews

MANAGEMENTAttracting, RetainingGeneration YProviding Relocation Assistance

The workforce is undergoing a majordemographic shift as throngs of baby

boomers retire and competition to recruitemployees is increasing with low unem-ployment rates. Combined, the two trendshave increased the pressure on employersto recruit and retain talent, especiallyamong new entrants to the workforce –Generation Y professionals.

Over the past four years, the portion of theU.S. workforce comprised of Americansunder the age of 30 grew from 14 percentto 21 percent. Companies of all sizes arenow targeting Gen Y for up to half of theirnew hires in an effort to replace an agingworkforce. These young workers, born inthe 1980s are, by far, the fastest growingworkforce segment today, at a time when90 percent of companies surveyed by theEmployee Relocation Council (ERC) report-ed difficulty finding quality job candidates.

Competition for top performers has ledemployers to extend recruiting effortsbeyond local talent pools. As a result,more young professionals are being askedto relocate for a job. But before organiza-tions can attract and retain top Gen Y tal-ent, they must come to terms with these


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P.O. Box 3115 Cold Hill Road South, Suite 28Mendham, New Jersey 07945-0311www.pmipmi.com

Peter A. FehnelPresident

(973) 543-6001Fax (973) 543-7911

[email protected]

Personal Mail International, Inc.PMI Expatriate Mail Services

• GEN Y – CONTINUED

professionals’ unique perspectives oncareer, work-life balance and finances.

Fully familiar with today’s communicationtechnology tools and juggling packedschedules from a young age, Gen Y profes-sionals have been groomed to be high per-formers. Unfortunately for humanresources professionals, experts also charac-terize this group as particularly high main-tenance. Today’s young professionals aremuch more likely to change careers orswitch jobs if they believe that their expec-tations aren’t being met. Few experiencescan be more disappointing than a stressful,unsupported move to a new city.

EVOLVING CORPORATERELOCATION POLICIESFew organizations today are prepared toeffectively support the relocation of the GenY hires who arguably represent the future ofbusiness success. In fact, according to a2006 Employee Relocation Council survey,only 25 percent of companies offered newhires a preview trip to the new location.

Historically, relocation policies have beendesigned carefully to meet a broad scopeof homebuyers’ needs. Gen Y profession-als, however, are more likely to rent whenthey relocate for a new job. The redesignof corporate relocation policies with a freshlook at the unique rental-related needs forGen Y employees can be a competitiveadvantage when recruiting and, later,retaining high performance employees.

In addition, the prevailing policy of award-ing lump sum packages to cover relocationexpenses is viewed as fitting these highlyindependent, tech-savvy Gen Y profession-als. The same ERC survey showed thatmore than half of the companies offered alump sum relocation reimbursements tonew hires. When it comes to managingthe many variables that determine a suc-cessful move to a new city, however, manyGen Yers are at a loss because most ofthem have never relocated before.

A young new hire might, for instance, relytoo heavily on Internet searches to deter-mine which housing option offers the opti-mal commute to work. Without having anopportunity to visit those locations, however,he might miss the fact that the main artery

he intended to take will be under construc-tion for the next three years. Another maydecide that a 50-inch flat screen TV is a per-fectly sound way to allocate part of a lumpsum package without carefully consideringthe complexities of relocating.

A distracted, unhappy Generation Y newhire can potentially cost companies thou-sands of dollars in lost productivity. Withfewer financial responsibilities and oftenlimited ties to their new communities,these talented young professionals are like-ly to leave their new jobs in search ofgreener pastures. By that time, the organ-ization will also have lost the investmentmade to recruit the employee. Accordingto 2006 data from the NationalAssociation of Colleges and Employers, on-campus recruiting costs companies, onaverage, $5,400 per new hire.

INNOVATIVE POLICY OPTIONSOne of the strategies forward-thinking com-panies have begun to employ to avoid thecostly loss of Generation Y new hires is toearmark a portion of the standard lump sumpackage for providing relocation counseling.Relocation experts can help employees learnabout cities before they actually move andprovide advice to help ensure a successfuland cost-effective relocation.

Area tours from local-market experts wholive and work in the communities they servecan help companies and their employeesavoid one of the most common pitfalls ofGen Y relocations: poor choice in housing


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arrangements. An area tour can ensurethat the relocating employee visits rentalcommunities that best match specificrequirements and also have availability.

Other services that can ensure a smoothtransition for Generation Y new hires mayinclude arranging for utilities hookup,

guidance in obtaining renter’s insuranceand even recommendations for temporarylodging. By acting as a single point ofcontact for all matters related to a youngprofessional’s relocation, counselors cansignificantly minimize employee anxiety



GlobalHRNews

WORLD TRADECOMPANY TAXES:Europe lowest; helpsinward investment

LONDON — The lowest corporate taxesamong the developed economies are still tobe found in the countries of the EuropeanUnion, KPMG International's latest globalcorporate tax rate survey has found.

KPMG International's Corporate Tax RatesSurvey has been run every year since1993. It now covers 92 countries,including the 30 member countries of theOECD, the 27 EU countries, 19 countriesin the Asia Pacific Region and 19 coun-tries in the Latin America Region. Thisyear's survey compares corporate incometax rates as at January 1, 2007 with theirequivalent each January 1 back to 1993.For the first time, the survey also includesinformation on Value Added Taxes orGoods and Services Taxes in 84 countries.Tax professionals from across KPMG'sglobal network of member firms havecontributed to the survey.

In a review of corporate tax rates at thebeginning of 2007 in 92 countries, theaverage rate in the EU was 24.2 percent,compared with 27.8 percent in the OECDcountries, 28 percent in Latin America and30.1 percent in Asia-Pacific.

This is the fourth year that European rateshave been below those of the LatinAmerican countries and the sixth that theyhave been below those of Asia Pacific.Additionally it is 11 years since averagerates in the OECD nations were belowthose of Europe.

But the survey also found that indirecttaxes in Europe are the highest in the

world. Value Added Tax (VAT) or Goodsand Services Tax (GST) rates in the EUcountries average 19.5 percent, comparedwith 17.7 percent in the OECD, 14.2 per-cent in Latin America and only 10.8 per-cent in Asia Pacific.

"This is the first year that we have addedindirect taxes to our long-running survey ofinternational corporate tax rates," saidKPMG's Global Head of Tax, LoughlinHickey, "and the figures seem to confirm atrend for indirect taxes to rise to compen-sate for lower corporate tax rates."

"We only have one year's figures for indi-rect taxes, so it is too early for us to saydefinitively that there is a link. But thisdoes coincide with what governments sayabout the decisions they are making."

The highest indirect taxes in the world,over 25 percent, are found in Denmark,Norway and Sweden. Each of thesecountries has a corporate tax rate of 28percent, which puts them at the upper endof the corporate tax rate scale.

However, they are still some way behindthe U.S. and Japan, whose corporate taxrates of 40 percent and 40.7 percentrespectively make them the most expensiveof the developed economies for corporatetaxpayers. Japan's main indirect tax rateis 5 percent, while the U.S. does not havea federal GST, but the states impose theirown sales taxes at various rates.

Across the OECD countries, the averageVAT rate has held steady over the past sixyears at around 18 percent, while theaverage corporate income tax rate hasfallen by more than a tenth, from 31.4percent to 27.8 percent. So withoutchanging rates, VAT and VAT type taxeshave become steadily more important tonational governments.

This seems to be a trend, but a cautiousone, and some commentators have askedwhy governments do not rely even moreheavily on indirect tax revenues. Oneanswer is that higher indirect taxes arepolitically difficult to introduce. The linkbetween higher indirect taxes and higherprices is obvious to anyone who buysgoods and services, but the link betweenlower corporate tax rates and increasedinward investment, with the increasedemployment and infrastructure develop-ment it can bring, is less well understood.

"Governments have a difficult task in com-municating the benefits of a low corporatetax strategy, especially if it is combinedwith higher indirect taxes." said Mr. Hickey."It may well be in the long term interestsof a country to follow this path, but votersneed persuading of the benefits of payingtoday for a better economy tomorrow."

Globally, the reduction in corporate taxrates from 2006 to 2007 has been veryslight, from 27.2 to 26.8 percent. This ismuch less than the year-on-year reductionsof the 1980s and 1990s.

But some countries have made significantcuts, such as Turkey's reduction from 30percent to 20 percent and Bulgaria's reduc-tion by 5 percent to 10 percent. There arealso reductions in the pipeline fromGermany, Spain, the U.K., Singapore, Chinaand possibly in France, which should bereflected in future KPMG surveys.

"It might be tempting to say that interna-tional tax competition has forced corporatetaxes, in Europe particularly, close to theirlowest point", said Mr. Hickey. "But whileother sources of revenue remain available,the headline, showcase rate will continueto matter for countries wanting to attractinward investment."

"I think that international corporate tax ratecompetition has some way to go yet." ■

RIO DE JANEIRO, BRASILFEBRUARY 20-21

South American Conference on World Trade & International Assignmentsproduced in association with

PricewaterhouseCoopers South America Ltda.info? [email protected]

• NORTH AFRICA – CONTINUED

usually validated on the same day of theapplication. The maximum period of awork contract for seconded workers is 3years. Within 15 days of its validation, theindividual must register for residency.

Residence Registration - Carte de SéjourApplication for residency must be submit-

• GEN Y – CONTINUED

and ensure that productivity levels are notcompromised.

By earmarking $1,200 or so that would beput towards a new hire’s lump sum reloca-tion package, companies can betterensure that employees and their familiessettle into their new positions quickly andefficiently. To the Gen Y professional,that may mean settling for a 37-inch flatscreen television in an apartment commu-nity that is ideal for them with all theirrelocation needs met so they can hit theground running and be fully focused ontheir new job from day one; not a badcompromise when you consider the manyavoided headaches he and his new co-workers will be getting in return.

Mark Koepsell, CORT’s Senior Vice President ofNew Business Development, joined the companyas the National Accounts Manager. During histenure, Mark was responsible for developingCORT’s National Accounts, Federal Sales andGlobal Furniture Rental teams. For more infor-mation, please visit www.cort.com. ■


GlobalHRNews

ted at a local office of the DirectionGénérale de la Sûreté Nationale (DGSN) i.e.at a local police office – also called Brigadede Contrôle des Etrangers.

In the case of a seconded foreign worker,along with other documents, authenticatedcopies of the work contract validated by theLabor Ministry must be presented. Copiesof a property lease contract and utility con-tract or bill, one of each of which must beauthenticated, are also required. There is aminimal charge of approx 6 euro.

The applicant is given an official receiptand the residency card is usually issuedwithin 15 days. If the card is not readywithin 30 days, the receipt must be validat-ed for further 30 days at the police station,and so on until the card is finally issued.Residence Cards are issued for one yearand must be renewed yearly.

Accompanying FamilyThe same documentation is required forspouses and children over 16 years of age,all of whom require residency status. If anaccompanying spouse wishes to work, theyrequire their own validated work contract.

De-registration at End of AssignmentAt the end of the term of the assignment,the holder of a Work Permit must regular-ize his/her tax position before leavingMorocco. A certificate of final discharge‘quitus fiscal’ must be obtained from theTax Agency.

Both the employer and employee have toconsult an Inspecteur des Impôts who willtake care of verifying if taxes are due ornot and who will thereafter issue the finaldischarge certificate. (“quitus”) 5 certifiedcopies are necessary.

The employee has also to de-register fromhis Consulate (radiation des listes du con-sulat) and request a certificate of cancella-tion (“certificate de radiation”).

He/she must then go with the above doc-uments and his/her residency card, attes-tation from landlord and/or last 6 rentalpayment receipts and final discharge fromutility companies contracts to the localoffice of the DGSN (police – Brigade deContrôle des Etrangers). The Police willgive a receipt of cancellation which mustbe shown at the border authorities whenleaving the Country.

• TERMINATING EXPATS – CONTINUED

continuing relationship with the U.S.corporate office; and

• Where (geographically), decisions aremade about the expat’s salary increases,bonuses and other benefits.

Which law applies is an important determi-nation. It defines the nature and scope ofthe potential legal claims. If the hostcountry’s workplace law applies, the expatmight be protected against unfair dis-missal. The decision to terminate theexpat cannot be made at-will. Instead, thecompany must have a good reason to ter-minate the expat and follow fair proce-dures. Further, if U.S. law – either federalor state - covers the discriminatory con-duct, the terminated expat may have a dis-crimination claim even if anti-discrimina-tion law in the host country has limitedprotected categories. Practically, if theexpat will be repatriating to the U.S. upontermination, an increased risk of litigationmay exist when U.S. anti-discriminationlaw applies; the expat may prefer to liti-gate in the U.S. courts when she is backhome as opposed to litigating in theunknown foreign legal system.

Determining which law applies should beone of the first steps in planning the termi-nation of an expat on assignment.Understanding the applicable legal land-scape will allow the decision-maker to planand implement the termination, preventinadvertent legal oversights and reduce therisk of litigation.

In a series of forthcoming articles in Global HRNews, www.globalhrnews.com, and in "livepresentations" at the Global HR NewsConferences, we will keep you well-informedon new developments and trends in cross-bor-der employment issues. ■

LAW REFERENCES:Law n° 02-03, dated 11 November 2003, related toforeigners’ entry to and stay in Morocco – (Dahir n°1-03-196 of 16 Ramadan 1424). ■

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TALK RADIOwww.globalhrnews.com

MANAGEMENTIN-SOURCING … a few thoughtsfrom a niche-player

Ward Naughton, President of HiFX,(www.hifx.com) has some good

thoughts about alternatives to traditionaloutsourcing that allow more flexibility andbargaining power. Ward calls this approach“in-sourcing.”

Many, if not most mid-sized companieshave not yet reached their full potentialwhen it comes to exploiting growth oppor-tunities particularly internationally, wherethe demand for U.S. made products isreaching new highs. Whether this reflects agrowing client base, fueled by China’stremendous GDP growth of 7-10% annual-ly, or simply the weaker U.S. dollar is hardto measure precisely, but regardless, suchinternational opportunities are significant.

According to a recent McKinsey survey(March 2007): “Executives around theworld largely agree that technologicalinnovation, the free flow of information,and the rise of a new class of consumers inemerging markets, are developments thatwill have a positive impact on the prof-itability of their companies”. To successful-ly capitalize on these trends will requirethat mid-sized organizations think differ-ently about how they assemble theresources required to compete effectivelyin this broader marketplace.

So what is the mid-sized company to do?

While larger organizations have turned tooutsourcing to free up internal resources,smaller mid-sized companies have general-ly been less interested in this strategy, andfor good reason. In a recent edition ofGlobal HR News, there was an article thatnoted, “Traditional outsourcing contractlanguage creates a relationship lackingflexibility to effectively respond to chang-ing business needs.” Smaller companiesrequire more, not less flexibility.

Fortunately for many mid-sized companiesthere is an alternative called IN-SOURCING,where such companies can access largecompany expertise at a fraction of thecost. They can also do so without need-


GlobalHRNews

• INSURANCE – CONTINUED

agencies that specialize in providing inter-national health & life quotes. A few thatyou may wish to look up are:www.GlobalCitizenInsurance.com,www.WorldWideMedical.com andwww.OverseasHealth.com.

In a post-9/11 world, as people continue totravel and live abroad, the need for interna-tional health & life insurance is no longer aluxury, but has become just as important asobtaining a passport! So, when youremployees leave our borders make sure thattheir insurance goes with them!

Mark Sneed is the Vice President of InsuranceServices of America, a company that specializesin international health and life insurance. Withover 4000 agents nationwide, they are one ofthe largest marketers of international health,travel and life insurance in the US. Utilizingsome of the oldest and most respected insur-ance companies in the industry ISA is able tooffer a wide variety of plans for groups of anysize as well as the individual expatriate. ■

ing to invest in the infrastructure requiredto carry out such functions.

Working with specialist firms that provideniche offerings, whether they be uniquemanufacturing capabilities, specific marketexpertise, established networks, or a widerange of management solutions (includingpayroll processing, and HR benefits man-agement), the mid-sized North Americancompany can compete by effectively creat-ing a “virtual” operating platform akin toits larger competitors.

Unlike traditional companies that havedecided to build such capabilities internallythis new-era competitor is aligning itselfever more so with business partners, whoprovide a focused core competency thatthe mid-sized company is neither capableof nor interested in replicating. In largepart this reflects such company’s desire tore-invest in its own business processes,people, and infrastructure. Given the limit-ed amount of capital that is generally avail-able in this sector such capital allocationsapproaches are clearly advisable.

IN-SOURCING is dramatically different fromits often criticized counterpart…outsourcing.In upcoming Global HR News editions, WardNaughton will continue his thoughts. ■

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