On November 7, ATMA collected an esteemed panel to update our members on the latest information for Indonesia and the Philippines.  The latest in our Country Update webinar series offers many insights for global mobility professionals relocating talent.

Key Takeaways:

• The Philippines is strictly enforcing advertising requirements for the 9g Visa (Pre-arranged Employment Visa for 1-3 years)
• Indonesia has transitioned to a fully digitized immigration process, quickening the process. However, there have been some challenges with website downtime
• Challenges for apartment seekers in the Philippines include unreliable websites and high costs in popular expat neighborhoods
• Both countries have lengthy and often contentious processes for security deposit returns
• Landlords in Indonesia prefer corporate leases because the company pays the 10% withholding tax.
• Employers in Jakarta are starting to demand a return to the office, and there has been a shift towards lump-sum packages requiring expats to manage their budget and expenses

Many thanks to our speakers for taking the time to keep the ATMA membership updated.

This webinar focuses on two locations that were hard hit by the effects of strict COVID policies and geopolitics. International headlines have created some misconceptions, and the entire webinar is worth watching to dispel some of the market myths. In reality, both locations have strong talent movement.

A few key themes:

• 1.      Hong Kong has a strong influx of talent, especially from mainland China and returning HK expatriates, bolstered by the Top Talent Pass Scheme (TTPS), which has attracted 90,000 applicants.
• 2.      Corporate growth strategies continue to prioritize China as a destination, with a recent poll showing that over 78% of respondents indicated China was equally or more important post-pandemic.
• 3.      Domestic and international mobility is robust in China.
• 4.      95% of businesses in China consider domestic mobility essential to their growth, and many companies have defined relocation policies.
• 5.      Hong Kong remains one of the most expensive cities in the world and a high-cost housing destination.  Local high interest rates have kept home buyers out of the market and in rental housing, keeping demand high.
• 6.      International school spaces are more available than normal in Hong Kong, although top-tier schools remain oversubscribed.
• 7.      China’s low inflation and currency depreciation have led to deflation in some cities, potentially decreasing the cost of living for some expats.

To get the full benefit of our knowledgeable panel, watch the full webinar

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These webinars and all previous ones are also always available in the Resources Section of the Members Section of our website. 

The webinar recording is now available in the Members Resource Section.  Our thanks to Andy Flynn, Dermot Whelan, and Debbie Beynon for a session packed with key updates for those relocating employees to Thailand and Vietnam.

We’ve collected a few highlights here, but the full video is well worth watching!

•      Vietnam is increasingly focused on localizing roles, and Vietnamese nationals are filling more positions.
•      In Thailand, visas on arrival have been extended to 31 countries, and visa exemptions now apply to 93 countries, including China and India.
•       Vietnam has shown interest in joining the Hauge Apostille Convention, simplifying document authorization and easing the work permit application process.
•       There are a limited number of international schools in Vietnam: about 14 in HCMC and 7 in Hanoi.
•         There has been a decline in assignments to China and India with both countries now focusing on exporting expertise, especially in electric vehicle markets.
•         Companies are looking to reduce costs by localizing expatriates, using permanent transfers, and hiring foreign nationals locally.
•        Elections and geopolitical events are impacting mobility decisions while sustainability and environmental concerns are becoming critical factors in global mobility and relocation
•         Bangkok’s transport system has grown substantially since 2000, adding 100 stations that cover all points in and around the city.

The landscape of ESG reporting is undergoing a seismic shift. The introduction of the IFRS S1 and IFRS S2 standards in 2023 marked the beginning of a new era in sustainability reporting, bringing much-needed standardisation to the field. Effective for annual reporting starting January 1, 2024, these standards are now available for companies to adopt. While they will become mandatory as regulators incorporate them into financial reporting frameworks, their adoption across Asia varies, primarily affecting listed companies. As the region's regulatory environment evolves, the influence of IFRS S1 and S2 is set to grow, shaping the future of corporate transparency and accountability.

But what are the IFRS standards, and what do they mean for the global mobility industry in Asia?

IFRS and standards development

The IFRS Foundation is a not-for-profit organisation established to develop high-quality, understandable, enforceable, globally accepted accounting and sustainability disclosure standards. Two standard-setting boards, the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB), develop the standards.

IFRS S1: Comprehensive Sustainability Disclosure Framework

IFRS S1 establishes a holistic approach to reporting sustainability-related financial risks and opportunities. It mandates disclosure on:

• ·        Governance mechanisms for sustainability issues
• ·        Strategic approaches to sustainability challenges
• ·        Processes for identifying and prioritising sustainability concerns
• ·        Performance metrics and progress towards sustainability goals

This standard ensures that companies provide a 360-degree view of how sustainability influences their operations and future planning.

IFRS S2: Spotlight on Climate-Related Disclosures

Focusing specifically on climate issues, IFRS S2 requires detailed reporting on:

• ·        Strategies for addressing climate risks and opportunities
• ·        Integration of climate considerations into overall risk management
• ·        Performance against climate-related targets, including those mandated by regulations

IFRS S2 covers both physical risks (e.g., extreme weather events) and transitional risks (e.g., policy changes favouring low-carbon economies), emphasising their potential impact on a company's financial health and operational viability.

Global Adoption Landscape

IFRS adoption has been varied across regions, with different approaches in Asia, Europe, and the US. In Asia, Bangladesh has initiated requirements for banks and financial institutions to disclose sustainability and climate-related risks based on the ISSB standards, while Hong Kong plans to mandate these standards for listed companies starting in 2025. The European Union has also aligned its Corporate Sustainability Reporting Directive (CSRD) with the ISSB standards through its own set of European Sustainability Reporting Standards (ESRS).

In the US, the Securities and Exchange Commission (SEC) has introduced its own climate-disclosure standards, which share some similarities with the ISSB standards but are not recognised as an alternative reporting framework. This reflects a broader trend where jurisdictions either adopt the ISSB standards or align their existing frameworks to incorporate similar principles, with variations in scope, timeline, and mandatory versus voluntary application.

Starting from the 2027 fiscal year, large non-listed companies in Singapore with annual revenues of at least S$1 billion and total assets of at least S$500 million will be required to make climate disclosures. These disclosures must align with the standards set by the International Sustainability Standards Board (ISSB). With this move, Singapore becomes the first country in Asia to mandate climate-related disclosures for large non-listed companies, joining the European Union, the United Kingdom, and New Zealand in implementing such requirements.

Adapting to the New Reality and Implications for the Mobility Industry

The IFRS S1 and IFRS S2 standards impact listed corporations by shaping how they report and gather detailed information across their value chains. As a result, Destination Service Providers (DSPs), household good companies and Relocation Management Companies (RMCs) can increasingly anticipate the need for data gathering and sustainability reporting as part of the broader corporate value chain.

For DSPs, RMCs, and household goods companies, these new standards could mean:

1. Enhanced data collection on the environmental impact of relocation services.
2. Development of sustainable relocation policies and practices.
3. Integration of sustainability considerations and material impacts into vendor selection and management.
4. Training for mobility professionals on sustainability topics, reporting and best practices.
5. Requirement for increased collaboration between global mobility teams, RMCs, HR and corporate sustainability departments.

Keeping Up to Date: Recent IFRS developments

• ·        The GHG Protocol and IFRS have established an official partnership, marked by a memorandum of understanding to ensure ongoing compatibility between their standards and the ISSB's work. This collaboration includes governance arrangements that will keep the ISSB actively involved in updates and decisions regarding the GHG Protocol standards and guidance.
• ·        In July 2024, CDP, ISSB's primary global partner for climate disclosure, launched a new disclosure platform. The 2024 CDP questionnaire is now aligned with IFRS S2, using it as the foundational baseline for climate-related disclosures.
• ·        Building on their May 2024 interoperability announcement, the IFRS Foundation and GRI committed to working together through the ISSB and GRI’s Global Sustainability Standards Board (GSSB) to identify, align, and optimise common disclosures. This effort aims to meet the distinct scopes and purposes of their respective thematic and sector-based standards.
• ·        The ISSB has announced a two-year work plan to consolidate and harmonise the sustainability disclosure landscape. Over the next two years, ISSB will prioritise supporting the implementation of IFRS S1 and S2, including integrating disclosure-specific materials developed by the Transition Plan Taskforce into the IFRS Sustainability Knowledge Hub.

Conclusion

The introduction of IFRS S1 and S2 marks a significant shift in how the global mobility industry approaches sustainability. It challenges DSPs, RMCs, household goods companies, and HR to manage successful relocations with a keen eye on environmental impact and sustainability and a new focus on data gathering. As these standards become the norm, companies that proactively adapt their practices and reporting will be better positioned to meet the evolving expectations of clients, employees, and regulatory bodies in the global mobility landscape.

Useful resources

IFRS 1& 2 in full: https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/

There are too many insights from the information shared by our speakers to be captured in this posting, so be sure to watch the recording to get the full benefit.

• Both Japan and Taiwan are focused on attracting foreign talent.

Taiwan aims to increase its skilled workforce by hundreds of thousands over the next decade and is working on initiatives to make the country more attractive to foreign talent.

Taiwan launched the Employment Gold Card. This card offers flexibility for foreign workers in Taiwan. Unlike traditional work permits tied to companies, Gold Card holders can work for any employer and enjoy tax benefits. The number of Gold Card holders is around 10,000.

In Japan, special asset Management zones will be announced in four areas. Plans include supporting English translation and administrative procedures for establishing companies with the support of local governments.

Japan has a new resident card called the Specific Resident Card.  This card will combine the functions of the current resident card and the My Number card for Japanese and foreign nationals.

• Most central Tokyo leases (70%) are now held by Japanese residents, especially for long-term unfurnished apartments (80%). Tenant selection can be non-transparent, with processes like sealed bids giving landlords significant control.

• High-end rental prices for expatriates in Taiwan are increasing by around 10% annually. Due to demand, rental availability is tight in Taipei and Taichung, while Kaohsiung has more availability thanks to newer projects.

• International Schools

Tier 1 international schools in Taipei and Taichung have limited availability due to high demand, with waiting lists common for specific grade levels. Southern Taiwan has more availability, with Kaohsiung American School recently doubling its capacity. Expat families are encouraged to apply early and have backup options for schooling.

Japanese International schools are limiting third-party involvement in applications, and the high enrollment of Japanese students has reduced availability for expatriates. COVID-19 has worsened teacher recruitment challenges, mainly due to the weak yen, affecting staffing and educational quality.

• Cost of Living

Both Japan and Taiwan have seen falling cost-of-living indices despite inflation, mainly due to the weakening of their respective currencies (Yen and New Taiwan Dollar). This makes goods and services relatively cheaper for expatriates earning in stronger currencies like the USD.

International assignments are an essential part of talent development and organizational growth.  Companies with developed talent mobility programs spend extensive human and financial capital implementing the selection and support services that produce high assignment success rates.  From careful selection of the right employee at the right time to the right location to compliance and transition support, there is an intentional focus on positioning each assignment for success.

The transition back home, known as repatriation, is equally important and impactful to the employee and organization yet often fails to receive a fraction of the attention. Returning from an assignment requires a combination of support, some similar to the services provided at the departure, but there are unique offerings that help create a successful repatriation.

What are the realities of repatriation failure? Numerous studies state that 25 – 50% of returning expatriates will leave their jobs within two years of repatriating. Companies that fail to support employees' return home don’t just lose a high-value employee; they incur additional costs of employee replacement on top of the loss of funds spent on the assignment. 

McKinsey recently published an article outlining its reboarding program: “Our reboarding program: Building a better model for leave support.” The paper examines the structure and support McKinsey has implemented to help employees returning from personal leave, including parental and medical leave. While the study didn’t specifically consider repatriating employees, the parallels are evident.

Tailored Reintegration Plans

Just as reboarding programs emphasize tailored reintegration plans, repatriation services should offer personalized support to returning employees. This includes creating a detailed action plan that addresses professional and personal needs.

Ideally, the repatriation plan should be defined during the assignment planning process.  At a minimum, planning should happen several months before the repatriation.  Organizations can help employees navigate the complexities of returning to their home country and workplace by providing a clear roadmap, ensuring they feel valued and supported.

Individual Coaching and Support

Reboarding programs often include individual coaching from executive coaches to facilitate a smooth transition. Similarly, repatriation services should offer one-on-one coaching to help employees leverage their international experience and align it with organizational goals. This personalized support can boost confidence, enhance performance, and foster a sense of belonging.

Performance Evaluations and Career Development

Calibrated performance evaluations are crucial to reboarding programs, ensuring that returning employees are assessed fairly and given growth opportunities. Repatriation services should also include performance evaluations recognizing the unique skills and experiences gained abroad. By aligning these evaluations with career development plans, organizations can retain top talent and maximize the benefits of international assignments.

Broader Support Systems

Reboarding programs provide broader support systems, such as supportive colleague communities. Returning from an assignment is unique in that the experience of the assignment changes the returning employee. It may be the exact same house being returned to, but a different person will walk through the door. 

Repatriation services should similarly offer comprehensive support, including mental health resources and community-building initiatives. These measures can help returning employees fully reintegrate their current lives, which have been changed by their experiences, into work and home. 

The cost of investing in repatriation services is small compared to the price of failure.  Support is not just nice to have; it is necessary for organizations that value their global talent.  The McKinsey article shares some proven tools that can also be useful for employees returning from assignments. It is best to start with a solid assignment plan that includes a roadmap for repatriation. The return should be part of the planning from the start, and employee support shouldn’t end upon arrival. 

As the world grapples with climate change, corporations are increasingly focusing on ESG. One significant area where companies can make a positive impact is by adopting electric vehicles (EVs) in their corporate relocation strategies. With China leading the way in global EV adoption, this shift aligns with global sustainability goals. However, this presents opportunities and challenges for Human Resources (HR) departments, Destination Service Providers (DSPs), household goods companies and Relocation Management Companies (RMCs).

The Potential of EV Growth in Southeast Asia

The adoption of EVs in Southeast Asia is gaining momentum, with the market showing significant growth potential. According to EY-Parthenon analysis, the ASEAN-6 EV market (Indonesia, Malaysia, Thailand, Vietnam, Philippines, and Singapore) is expected to record a compound annual growth rate of 16%–39% between 2021 and 2035. Potential annual sales opportunities are estimated to reach US$80b–US$100b by 2035, a substantial increase from about US$2b in 2021. According to a McKinsey report, Singapore, Thailand and Indonesia are the countries most poised for growth in this sector.

EY analysis forecasts total EV sales volume in Southeast Asia to reach about 8.5 million units by 2035. Indonesia is expected to be the region's largest market by volume, with estimated sales of 4.5 million units across all EV segments. Thailand is predicted to come in second with an estimated sales volume of 2.5 million units.

The global mobility industry's challenge is how its supply chain adapts to using EVs today. Transport providers interviewed by Relo Network Asia in Cambodia, Malaysia, and Singapore highlight 2 main issues: EVs are 20-30% more expensive than petrol vehicles, depending on the market, and there is a lack of EV chargers across each country. For example, Penang, a booming hub for the semiconductor industry, has only one EV charger in some locations outside George Town, according to Plugshare.

Benefits of EVs in Corporate Relocation

Integrating EVs into corporate relocation strategies offers multiple advantages:

1.Environmental impact: EVs significantly reduce carbon emissions compared to traditional internal combustion engine (ICE) vehicles.

2.Cost savings: EVs often have higher upfront costs but offer long-term savings on fuel and maintenance. This can be particularly beneficial for companies managing large fleets or offering car allowances to relocating employees.

3.Enhanced corporate responsibility: Adopting EVs demonstrates a company's commitment to sustainability, improving its reputation among industry peers and clients.

Mobility Case Study: Beijing

In a recent discussion with Sean Collins from ATMA’s ESG Committee, who managed a program in Beijing from 2006-2010, he highlighted the early challenges and efforts towards more sustainable vehicle policies. Sean recounted his experience, "Back then, the electric vehicle revolution hadn't really started yet, so it was pretty much all petrol-driven cars, and the pollution in Beijing was horrific."

Managing a large expat population with car leases, Sean noticed the preference for large fuel-inefficient cars and the severe impact of car pollution on both the environment and public health. To improve the situation, Sean collaborated with his company's environmental officer to introduce restrictions on car leases, favouring more fuel-efficient models.

This policy change both reduced pollution and sparked awareness among assignees about the importance of vehicle efficiency. This early initiative highlights the gradual, yet impactful steps corporations can take to embrace sustainability and reduce their carbon footprint, paving the way for more sustainable mobility solutions in the future.

The Important Role of HR, DSPs and RMCs

HR departments, DSPs, and RMCs play vital roles in promoting EV use during relocations:

1.HR initiatives:

• Educate employees on the benefits of EVs
•  Integrate EV options into mobility policies and compensation packages
• Consider offering incentives for employees choosing EVs

2.  DSP contributions:

•  Assist expats in accessing EV resources and infrastructure
• Provide orientation and training on local EV regulations and charging options
•  Partnering with providers who have EVs in their fleet for their area orientations and home search programs

3. RMC strategies:

• Partner with EV-friendly vendors and service providers where available
• Develop policies that prioritize EV use in relocation packages

4. Household goods:

• Pioneering household goods companies are now integrating electric vehicles and trucks into their fleet. Crown Relocations, for example, has recently introduced electric trucks in both Hong Kong and Singapore.

Overcoming Challenges

Despite the benefits, several challenges need addressing:

• Charging infrastructure: Many Southeast Asian cities lack extensive charging networks. The EY-Parthenon analysis highlights that charging stations' availability and ease of use are vital for driving EV demand. Companies can collaborate with local authorities and property managers to install charging stations at offices and residential areas.
• Cost: While EVs offer long-term savings, their initial cost can be higher. The EY-Parthenon analysis emphasizes that EV affordability is a significant challenge to adoption in Southeast Asia. Companies might consider leasing options or providing financial incentives to offset this difference.
• Market readiness: EV readiness varies across the ASEAN-6 countries. Businesses should consider demand, supply and infrastructure factors that impact EV readiness in each market.
• Ethical sourcing and supply chain: Access to raw materials is critical for battery production. Several Southeast Asian countries have substantial reserves of key materials like nickel and copper, which could influence the regional EV ecosystem. However, this often comes at a significant cost to the environment, workers and indigenous communities. “Battery passports” could be one way to help overcome these serious issues.

The Role of Hybrids

EV sales accounted for just 2.1% of total vehicle sales in Southeast Asia in 2022, compared to 2.3% in India and 29% in China. While full EVs are the ultimate goal, hybrid vehicles, offering improved fuel efficiency and reduced emissions compared to traditional ICE vehicles, can be an excellent transitional option in areas with limited charging infrastructure.

Mobility Case Study: Integrating EVs into Crown Worldwide Group’s Household Goods Business

Crown Singapore has long been committed to integrating sustainability into its global mobility operations. As Luis Contreras, Regional Director of Crown in Singapore highlighted, “One milestone in this journey was the shift to electric trucks, motivated by the company’s goal to reduce its carbon footprint and align with Singapore’s national sustainability goals.” Crown Singapore recognised the increasing availability of EVs and government incentives as fundamental to this transition. Integrating electric trucks into their fleet is central to their broader sustainability strategy, aimed at decarbonising operations and enhancing energy efficiency.

Adopting electric trucks came with challenges like adequate charging infrastructure and managing vehicle range limitations. Crown Singapore tackled these issues by investing in new infrastructure and optimising fleet management. Comprehensive driver training ensured a smooth transition to the new technology, significantly reducing greenhouse gas emissions.

Building on its success in Singapore, Crown Worldwide Group has expanded the use of electric trucks to other markets, including the UK, UAE, Malaysia, and Hong Kong. This expansion aligns with Crown’s broader ESG strategy to support the global shift towards a low-carbon economy. Electric trucks help Crown achieve its targets for reducing its environmental footprint and enhancing the sustainability of its transportation services.

Looking Ahead

The future of corporate mobility in Southeast Asia is increasingly electric. The EY-Parthenon analysis estimates the region's EV ecosystem to be worth about US$100b–US$120b by 2035. Companies that proactively integrate EVs into their relocation strategies will be well-positioned to meet future regulatory requirements and attract environmentally conscious talent.

However, the success of EV adoption across mobility programs in the region will require a deep understanding of local markets, available vehicles and synergies within the value chain. Amidst fast-paced technological improvements and EV battery charging efficiencies, recent battery safety concerns also point towards potential broader regulatory changes.

Conclusion

Integrating EVs into corporate relocation strategies in Southeast Asia is a forward-thinking business decision. For HR departments, DSPs, and RMCs, the transition to EVs presents an opportunity to innovate and add value to their services. Mobility professionals can play a pivotal role by staying informed about EV developments, collaborating with local partners, and continuously educating both their staff and clients. The road to full EV adoption may be long, but every step taken today will have positive future impacts.

An ATMA corporate HR workshop in collaboration with Schneider Electric

On the 26^th of July, the Asia Talent Mobility Alliance held a half day workshop for its corporate HR members to help them kick start their global mobility sustainability journey. The workshop was hosted and led by Sanjala Hari, from Schneider Electric’s Sustainability Business consulting practice, alongside Stephen Park and his global mobility team.

Following up on the inaugural ATMA ESG event in April, which attracted nearly 40 participants for educational sessions from industry experts on ESG within global mobility, this workshop focused on a hands-on approach for HR members eager to begin their sustainability journey, build a business case and develop a strategy.

The Schneider team kicked off by reviewing the participant companies’ climate ratings and commitments to net zero covering scope 1,2 and 3. With some commitments starting in 2025, this added great context and highlighted the urgency for global mobility functions to start planning how they can begin tracking and meeting their organisation’s commitments around reducing their greenhouse gases (GHGs). The group then identified the global mobility activities that contribute towards scope 3 emissions, especially around:

• ·        Purchased goods and services
• ·        Upstream transportation and distribution
• ·        Waste generated in operations
• ·        Business travel
• ·        Employee commuting

Participants then set to work on building a compelling business case for executing a sustainability program for global mobility.  Following the workshop Stephen Park and his team gave an update on their global mobility sustainability journey at Schneider, having already successfully built their business case and embarked on their sustainability roadmap. Stephen outlined how they are working with the consulting team at Schneider to identify the operational elements and type of data collection needed for emissions accounting.

Sanjala rounded up the workshop by sharing what the next steps would look like during the emissions measurement phase and how the consulting team can partner with organisations to achieve target setting & decarbonization roadmap development.

If you are keen to learn more about ESG and global mobility, would like to attend a future workshop or are interested to join the ATMA ESG committee please reach out to Sean Collins, Director of ESG at ATMA on esg@asiatma.com.

Sanjala Hari

Sustainability Business

Schneider Electric

https://www.linkedin.com/in/sanjala-hari-981b8a91/

Stephen Park

International Talent Mobility

Schneider Electric

https://sg.linkedin.com/in/stephenparksingapore?trk=public_post-text

The recording for the recent webinar from our ESG committee is now available in the Members Resources Section.

A Few Takeaways:

1. Mandatory ESG Reporting: Organizations globally are increasingly required to report on their ESG activities, aligned with the 17 UN Sustainable Development Goals and various global reporting standards like GRI and ISSB. The EU mandates such reporting, with APAC following soon.
2. Greenhouse Gas Emission Targets: Many multinational companies are setting ambitious greenhouse gas emission targets according to the Science-Based Targets Initiative, with net-zero goals by 2050 and some aiming for 2030.
3. Impact on Global Mobility: ESG criteria significantly impact global mobility, focusing on gender equality, climate action, and energy and water consumption. Environmental criteria emphasize greenhouse gas emissions social criteria cover aspects like gender pay ratio and diversity, and governance criteria include incentivized pay and anti-corruption measures.
4. Scopes of Emissions: Companies must understand and report on three scopes of greenhouse gas emissions:
   • Scope 1: Direct emissions from company-controlled sources.
   • Scope 2: Indirect emissions from purchased energy.
   • Scope 3: Other indirect emissions, including supply chain and business travel.
5. Growing Focus on Scope 3 Emissions: There is an increasing requirement to report Scope 3 emissions, necessitating preparedness in internal processes and vendor collaboration.
6. Carbon Offsets: These play a significant role in achieving net-zero targets, with costs expected to rise significantly. Companies should integrate carbon offset costs into relocation budgets.
7. Sustainable Mobility Practices: Virtual assignments, discard and donate programs, and using low-emission vehicles can reduce the carbon footprint of relocations. Companies are encouraged to set carbon limits and choose sustainable vendors.
8. Local Talent Sourcing: It is more sustainable to source talent locally or regionally rather than relocating individuals, reducing the carbon impact of frequent travel.
9. Equity and Compliance: Ensuring roles are accessible to diverse talent populations, providing necessary cultural training, and complying with local labor laws and right-to-work regulations are essential.
10. Social Development: Global mobility can support social development by hiring displaced talent or building local teams in developing regions.
11. Stakeholder Engagement: Engaging stakeholders, measuring data, and setting realistic targets are crucial for achieving sustainability goals.
12. Leadership and Accountability: A sustainability champion should lead ESG initiatives, develop a roadmap, and communicate the strategy effectively.
13. Policy Review and Quick Wins: Reviewing and revising existing policies, such as developing a green move policy and implementing quick policy wins, can make a significant impact.
14. Educational and Incentive Programs: Providing CO2 data education, green services, public transport allowances, and incentivizing sustainable decisions among employees are important.
15. Comprehensive Data Collection: Collecting and analyzing data from vendors and stakeholders helps set baselines and measure progress toward sustainability targets.

The Rise of Flexible Policies

We are immensely grateful to Des McKell of NetExpat for sharing the report on Core/Flex, which was a major topic during the recent ATMA India webinar. Thank you so much for your generosity and for contributing valuable insights to our discussions.  A copy of the report, From core flex to care flex: A practical approach to mindful flexibility is now available in our Members Resources, or you may request a copy here.

In recent years, there has been a significant shift towards flexibility in corporate policies. According to Mercer’s Worldwide International Assignments Policies and Practices survey, 57% of companies had flexible policies in 2022, up from 37% in 2019. In 2023, 62% of companies reported reviewing or planning to review their policies to enhance flexibility.

The Drive for Better Experiences

The primary goal of introducing flexibility is to improve the experience for assignees, with 57% of companies recognizing this as a crucial benefit. However, implementing flexible packages presents challenges, including inadequate technology infrastructure, potential cost increases, tracking difficulties, and insufficient guidance from management and HR.

Measuring Impact and Expectations

Despite the push for flexibility, only 12% of companies regularly measure its impact against set objectives, while 18% do so randomly. Businesses aim to balance practicality with workforce satisfaction, benefiting both employees and their families.

Forms of Flexibility

Flexible talent mobility can take several forms:

• Swapping Benefits: Exchanging one benefit for another of similar value.
• Cashing-Out: Receiving benefits in cash instead of kind.
• Lump-Sum Payments: Providing a cash amount to cover multiple components of the assignment package.
• Cafeteria Model: Allowing employees to select benefits from a predefined list.
• Core Flex Benefits: Distinguishing between essential (non-negotiable) and optional benefits.

Pros and Cons

While cash-based and lump-sum approaches are easy to administer and meet employee expectations, they can be tax inefficient and may not enhance the assignee experience. In hardship locations, flexibility may need to be limited for safety reasons.

Changing Mobility Patterns

Companies are increasingly adopting permanent one-way moves, appealing to relocation budget holders but posing complexities for employees and their families. Maintaining dual family income is crucial, with over 70% of families considering it a critical factor in mobility decisions.

Structured Flexibility: The Core Flex Approach

Companies are exploring more structured flexibility, such as core flex approaches that separate essential benefits from optional ones. Challenges include balancing flexibility with duty of care, ensuring consistent employee experiences, and providing informed choices.

Introducing Care Flex

The care flex approach refocuses on employee and family well-being, starting from the desired employee experience. It emphasizes financial affordability, relevance, and measurable outcomes for satisfaction and retention.

Implementing Care Flex

Key steps include:

• Setting Minimum Support Levels: Ensuring compliance and well-being.
• Defining the Experience: Prioritizing family experience and well-being.
• Ensuring Relevance: Understanding and addressing diverse employee needs.
• Fostering Collaboration: Involving all stakeholders in decision-making.

Measuring Success

Success metrics for care flex include awareness surveys, adoption rates, satisfaction rates, and monitoring talent retention and assignment outcomes. Positive indicators suggest that family support enhances assignment acceptance and job performance.

By adopting these flexible approaches, companies can better support their mobile workforce, improve satisfaction, and enhance overall organizational effectiveness.