Mobility Talent Deployment at Abbott

1. Mobility Talent Deployment at Abbott Lisa Rodriguez Director Talent Deployment, Abbott Laboratories And Michael Piker Partner, Mercer

2. New Complexity A convergence of forces has reshaped the mobility landscape: • Demographic imbalances • Foreign worker regulation • Non-traditional assignments • Emerging market destinations

3. New Contradictions – and Tough Choices Have talent surpluses for some positions… Talent shortages in other areas and Value and seek candidate diversity… Benefit from a single, cohesive culture and Operate with less hierarchy… Emphasize career development and Face deployment cost constraints… Need to put ‘best in front’ in new markets and Have scarce rewards… Need to retain talent with global experience and Face new global governance challenges… Adapt to growing regulatory complexity in many markets and Need to integrate individual mobility programs… Maintain high level of service delivery and

4. Putting People At The Heart Of Performance New Business Priorities Focusing on the right facts Deciding in real time Valuing the right talent Redefining “The Deal” Keeping Employees Engaged Being Passionate About Leadership 4

5. New Mindset • Mobility professionals as global talent portfolio managers • Global mobility investment in people to generate an appropriate, measureable return • Making smart investment choices • Increased focus on value, not cost; view global talent as an asset to manage and optimize • Manage the overall talent portfolio, not individual assignments • Use evidence-based approaches to balance cost and return • Establish objective measures to track the return on your investments

6. New Global Talent Deployment Strategy in the right Places and Roles The right People Talent management Strategy, Process, Governance, Communication Remuneration and benefits Resource planning Policy, process, HR service delivery, outsourcing for the right length of Time and Results Return on investment at the right Cost Objective and components of mobility strategy • Talent segmentation • Talent identification • Candidate profiles • Selection criteria • Selection process • Identification of need and locations • Critical roles • Key skill requirements • Contracts and, employment agreements (on assignment and repatriation) • Remuneration, benefits and support • Retention arrangements • Funding arrangements • Management of other related costs • Assignment purpose • Type and length of assignment • Assignment lifecycle management • Transition management

7. Low Business value High New Global Talent Deployment Segmentation High Development value

8. New demographic changes Demographic changes: Baby Boomers are starting to retire Fewer generation X’ers to replace them The incoming generation of workers (Gen Y) have different skills, values, ambitions and expectations of the world of work Gen Y 1977-89 Technology savvy, team-oriented, global mindset, multi-taskers, opinionated, need structure, value social networking Boomers 1946-64 Experienced, relationship builders, service oriented, driven, process before results, dislike conflicts Gen X 1965-77 Technology literate, not intimidated by authority, creative, skeptical, impatient “…the Gen Y workforce is less limited by country borders than previous generations. People are moving internationally because they want to move. As a global firm we can offer international job opportunities to this generation without offering an expat package” (Global European-based shipping and energy company)

9. Key Stages Of Global Mobility Career Development PerformanceManagement Service Delivery Information Strategy Rewards Planning Deployment Re-assignment

10. SHORT TERM LONG TERM Global Mobility Benchmark Research SummaryOverview of findings with short and long term implications Source:Global mobility consulting and benchmarking research, Mercer, 2010

11. New Mobility Department Design: (case study) CHRO Head Global Reward COE Head Global People & Organization Development COE Heads of Regional HR HR Services • Global Compensation • Global Benefits • Global Equity • Global Mobility • Global Sales Compensation • Executive Compensation • Regional Rewards Leaders • OD • Talent Acquisition • Talent Management • Learning & Development • Regional Business Partnering All HR Transaction Services including Mobility Mobility (outsourced model) Mobility Services (usually a large HR BPO) Tax Services (usually one of the big four accounting firms) These two areas Mobility & Talent Management are working much closer together

12. Pre-Assignment On Assignment Repatriation Assess if position is good fit for an assignment Assess attributes required to be successful in assignment Obtain high level cost estimate and approval to move forward Identify preferred candidate site visit Assignment agreement finalized Launch and deliver assignment Initiate repatriation process Matching assignee to business needs Repatriation cost projections confirmed Repatriation agreement finalized Returnee & family readiness and preparation Global Talent Deployment: (case study) Process and tools to support managers

13. Vision and strategy for global mobility Talent Deployment VisionA seamless, customer-centric program (both business and employee as the customer) facilitating movement of talent anywhere in the world. Preparation Assignment Repatriation Rebuild proactive ongoing support/process Significantly improve repatriation process Enhance the pre-assignment process

14. ValidationPre-assignment: gap analysis overview Preparation  = gap is urgent risk to address  = gap presents moderate risk = minimal to no gap

15. ValidationOn assignment: gap analysis overview Assignment  = gap is urgent risk to address  = gap presents moderate risk = minimal to no gap

16. ValidationRepatriation: gap analysis overview Repatriation  = gap is urgent risk to address  = gap presents moderate risk = minimal to no gap

17. Building process and toolsPre-Assignment tools Preparation Purpose of Assignment Questionnaire Segmentation Model with Policy Parameters Approach to Fill Position Questionnaire High-level cost estimate Career Case Examples Assignment Role Profile Personal Information Form Existing Abbott tool

18. Building process and toolsOn assignment Assignment Improved communications throughout the process Monthly dashboardsatisfaction surveys Mandatory cultural training Sharepoint site for networking & building community; Houses e-learning & assignee information Significantly improved payroll process Improved vendor management Abbott to develop

19. Building process and toolsRepatriation tools Repatriation Discussion Guides for Planning Next Move(Business HR/Mentor and Assignee) Repatriation Role Profile Career Experience Overview Measuring ROI: Return on Total Assignment Investment Assignee Planning Business HR Repatriation Guide Abbott tool in development Abbott tool in development Abbott tool in development Assignee repatriation survey Existing Abbott tool

20. Implementation/improvement plan: long-term

21. Determining an Assignee vs. a Local • Determining whether a talent/skill gap needs to be filled by an assignee is a business decision made in consultation with mobility • Level of urgency in filling talent gap tends to affect rigor in each step Source:Global mobility consulting and benchmarking research, Mercer, 2010

22. What Types Of Support Are Provided to Assignee’s? Some flexible benefits may include: Additional relocation allowance Appliance allowances – in addition to relocation allowances Pre-move trip for housing Higher level or flexibility regarding housing assistance Additional home leave – 2 per year or more Additional hours of language lessons/cultural training Loss on sale of automobile Incentive premiums Educational premiums Supplementary medical benefits Depending on business need, companies may establish a core set of supports with the option to provide additional benefits in some cases Tier 1 • Covers most common and largest items needed for the move • Ensures employee treatment is consistent with compliance and safety Tier 2 • Intended to cover the basic needs with some flexible options • Meets the business need for the most typical assignments • Ensure adequate support is provided with appropriate offsets Tier 3 • A full package to be used for assignments where employee and business needs are more extensive • Provides adequate support with incentives to ensure that key people can be moved Source:Global mobility consulting and benchmarking research, Mercer, 2010

23. What metrics are used to measure success?Advanced measures: ILMTM analysis “maps” the flows setting what the workforce is today and will be tomorrow Hires Exits Level 8 168 38 11 17 16 Lateral Moves 7 517 81 72 49 81 Career Level 640 186 6 125 123 129 830 341 190 5 184 134 963 234 4 312 227 85 Promotions 3 45 383 116 86 Illustration Expatriate assignments take place in a system. Assignments are but one of several practices influencing employees and the business Source:Global mobility consulting: point of view

24. High Manager’s span of control Number of jobs held within firm Pay growth Position tenure Unit size Low Lower Promotion likelihood Higher What metrics are used to measure success?Advanced measures:Are current/former assignees more successful employees? Check perception & reality Illustration High Performance Ratings International Experience Amount of training Highly-rated manager Despite a prevalent perception that careers of expatriates was limited upon repatriation, movement through an international assignment increased wage level, total compensation, and likelihood of a promotion and a lateral transfer. Source:Global mobility consulting: point of view

25. Repatriation Process(Case Examples) CASE STUDY (Shell) Leading practice in managing end-to-end talent mobility. 95% of expats are considered exceptional talent. Typical mobility mindset is for longer term assignments. There is constant dialog with expats about career planning; managers are talent coaches. Most mentors at Shell have been assignees themselves. There is high transparency with employees on where they are in their careers, where they can go and how to get there. Company takes a long-term outlook (5 – 10 – 15 years look in workforce planning) considering overall career life cycle. Every manager looks at people as a long-term asset. Expatriate center in Hague – there is a dedicated unit providing end to end services in career support, vendor management, repatriation planning. Also facilitates spousal network – helps spouses adjust quickly, provides tips on issues such as work permits Dedicated global deployment company looks at the whole spectrum, from transaction to strategic aspects; it is a consulting arm, CoE for Shell. CASE STUDY (Cisco) Mobility is a vital part of a global talent management process. Annual talent management / technology platform provides a check box for global assignment interest. Company conducts strategic deployment of assignee talent using fact-based decision making. Talent, performance data of all 50,000 employees is cross-referenced with workforce planning gaps by country and business unit to bring all data points together. Repatriation is managed as part of career cycle. A few months before the assignment is done, talent planning triggers at home location. HR assigns a dedicated mentor who helps the assignee to identify a new job that reflects new skill set; HR performs analytics around new competencies to help assignee repatriate at a higher level or with bigger capacity.

26. Benefits of Embracing the New Mindset Improved Business Performance Program Efficiency Effective Global Leaders Friction Free Deployment Workforce Optimum Use Of Rewards A unique source of competitive advantage Thrive in a dynamic global marketplace The Right People In The Right Places A Strong Candidate Pipeline Improved Governance Mobility Strategy Linked To Business Strategy