Académique Documents
Professionnel Documents
Culture Documents
Availability of Talent
R
eduction in the
Costs of International
Assignments
Impact of New
Government on Mobility
F ocus on Immigration
Compliance
Despite the long term impact of the global recession and a decline in outside investors, India
continues to remain one of the fastest growing economies in the world. The Indian economy,
now the fourth largest globally, has experienced significant economic growth over the last 10
years, and this growth is due in part to increased capital, a growing labour force and increased
productivity. Forecasters expect this increased growth and opportunity to continue in 2015 and
for many years to come.
With the median age of the population around 25 years, Indias labour force is young and
thriving. This strong labour force, along with the low cost of living, has been a driving factor
behind companies investing in the Indian market. Companies continue to establish offices,
employ local Indian talent and relocate their employees to India as they continue to grow
and build on the expanding business opportunities within the Indian market. This surge of
investment along with population growth has resulted in a rebirth of sorts in the large cities.
Cities such as New Delhi, Mumbai and Chennai are barely recognizable with the many new
outcroppings of office buildings, luxury hotels, restaurants, shopping centers, schools, hospitals
and new roads. To plan, build and maintain all this new development, many skilled workers are
needed such as engineers, architects, designers, project managers, supervisors, managers and
service staff.
While the face of India may be changing, there are aspects of life in India which have remained
relatively the same. There is still enormous poverty, developing infrastructure, quality of life
challenges, and a strong divide among the social classes. These and other aspects of living in
India may not easily be supported within standard global mobility policies. So, it is important
that companies develop appropriate mobility strategies to navigate these issues and to best
ensure assignment success for employees relocating both into and out of India. The mobility
strategies should successfully assist employees in their mobility efforts and mitigate the
overall cost of mobility, while aligning with company goals. Many mobility leaders have and
are continuing to evaluate and make key adjustments to their mobility policies and programs.
These changes will likely position their policies and programs favorably no matter what the
economic future for Indian mobility holds.
India Mobility
A
ttracting and Sustaining
Indian Millennial Talent
India Mobility
Over the past several years, as more companies reviewed and modified their policies
and programs, Brookfield Global Relocation Services (Brookfield GRS) has seen practices
emerge and then become commonplace as companies continue to learn from each other
and implement strategies that prove successful. We continue to identify mobility trends that
companies are likely to see as a result of the changing economy. Some of these are new trends
we are currently seeing, some are trends we have seen in the past but may be resurfacing in a
different form, and some are ones that we anticipate will emerge in the future.
We discuss below what we see as some important trends, insights and emerging practices
in 2015.
Availability of Talent
Companies are being challenged to not only attract but to retain employees with in-demand skill sets for the long term once
theyve been hired and trained. Many companies are looking for opportunities to take an employee away from another company
once they have been trained and have job experience. Although there is replacement talent available, companies need to ensure
their investments in human capital are protected. This means companies need to provide wages, benefits, and mobility programs
that are not only competitive, but leading edge. In order to best capitalize on the current talent landscape and work to ensure it
future viability:
India Mobility
Todays competitive business environment continues to increase pressure on employers as they seek talent to fill key positions
within their company, and companies need to be in a position to leverage and support this new Indian workforce. With a
comparatively low cost of living and salary wage, the employment of Indian nationals has become a viable answer for many
companies, fulfilling the need for talent while balancing cost containment. Companies are now focused on learning how to
attract, retain and capture the full value of the workforce that India offers.
Impact on mobility:
Mobility leaders will need to think outside the box to find mobility solutions that are attractive to potential employees and
that have an edge over the competition, while still remaining conscious of any wider cost constraints. In addition, the
implementation and use of Repayment Agreements will become more imperative as companies compete over the same
pool of talent and employees may be offered lucrative offers to quit and join a competing company.
Brookfield Global Relocation Services
India Mobility
Talking to local recruiters to understand what support employees are seeking and incorporating where feasible into policy
Creating a process which enables companies to assess the holistic impact of its cost containment initiatives on mobility and
ensuring senior level visibility to the results
Impact on mobility:
Companies need to be aware of the risk that is inherent in a single-minded focus on cost reduction alone. A program
that is too lean may not allow the company to attract or retain critical key talent, and providing inadequate support for
employees who are mobile runs the risk of impacting return on investment. Employees who are unable to effectively
assimilate or become productive in the new location can have a long term negative impact on the bottom line, which in
turn ultimately impacts the success of the mobility function overall.
While it is still too early to determine the ultimate effectiveness of the new government, there are many new initiatives that are
underway. It will be important for companies to keep a close tab on upcoming changes and to proactively assess their potential
business impact and their bearing on mobility overall.
India Mobility
India has experienced the largest economic boom in its history over the last 10 years, and Indian voters and foreign investors
want to see the economy continue to rise. This, however, may prove to be difficult given the persistent high inflation, high interest
rates and rising number of bad loans at banks across India. If inflation continues to increase and the value of the Indian Rupee
decreases, this will also have an impact on the Cost of Living Allowances currently paid to relocating employees and can also affect
overall assignment costs.
Impact on mobility:
Mobility leaders may be expected to provide India-specific updates and to be knowledgeable about government related
changes. In order to do so, they will need to rely on local HR, local supplier partners, and internal teams that support
employees in India to regularly receive and understand country level updates. Staying in frequent communication with
their global team members will allow mobility leaders to more effectively support mobility into and out of India.
Brookfield Global Relocation Services
India Mobility
To ensure the companys global mobility programs are compliant, mobility leaders know that immigration compliance is
nonnegotiable for todays multi-national company. Ensuring they have the right policies in place and the best supplier partners
selected are foundational. Making sure the mobility program has transparent and compliant processes and developing the right
controls to make certain that the program stays compliant are also critical, key responsibilities for mobility leaders.
As regulatory pressures increase and governments around the world are stepping up enforcement of laws and regulations,
mobility leaders are increasingly focused on ensuring compliance as a top priority and those dealing with India mobility are no
different. Most mobility leaders today are well versed in the need to ensure their mobility programs are compliant; however, it is
critical to remember that the immigration landscape is in constant flux. India has made a number of changes to their immigration
laws over the past year. And although the new Prime Minister has affirmed a desire for India to become more business-friendly,
Indian immigration law remains complex. The stringent enforcement of immigration law has become increasingly the norm. The
penalties linked to non-compliance range from fines to imprisonment of key officers, and can include a permanent ban on the
employee being able to work in specific countries, so the stakes are certainly high.
Impact on mobility:
Depending on the changes and employees circumstances, employees on international assignment may be impacted
by changes to immigration law. It is important that companies engage their immigration provider quickly and ask for an
analysis of any areas where they may have risk exposure. Once assessed, it is critical that the company be proactive to
mitigate any risk and to determine any potential increase in cost that could result.
Brookfield Global Relocation Services
India Mobility
Companies will continue to be attracted to India because of its labour market, so finding a way to engage Millennials will be
vital. Learning how to induct Millennials into the business while providing the appropriate eco-system for them to share their
expertise all the while further developing their capabilities can be challenging. Mobility leaders will need to become well-versed in
understanding what Millennials expect and will need to balance that against the consistency of the overall program. The unique
characteristics of the Indian talent landscape will also demand special consideration for this generation.
Companies across the globe are driving to design new and innovative approaches to identify, attract and retain the right Millennial
talent. And as we learned above, a large portion of Indias labour force falls into this generation. In general, Millennials have a
different mindset than other generations and are typically tech savvy, well-traveled, do not expect to spend their career working for
the same company and are not driven as much by money but instead by experience or opportunity. They typically do not wait for
the company to approach them with an assignment but instead seek out opportunities on their own. Millennials will usually want to
negotiate the assignment terms because they feel a standard approach does not apply to them.
Aligning and working closely with talent management to develop effective global and India-specific strategies to attract
Millennial talent
Surveying current Millennial employees to discover how mobility plays into their overall career objectives
Allowing for flexibility where possible, while still adhering to policy where necessary, in ways which will appeal to Millennials
Networking to better understand how other companies approach Millennials and what changes they are making or planning to
make to accommodate this generation of employees
Impact on mobility:
As the talent landscape continues to evolve, companies operating in India are seeking to align mobility strategies
to attract and retain Millennial talent. Selection and assessment of potential candidates will be key as the future
supply of global leadership and talent will come from this generation. Companies will be successful in recruiting and
retaining Millennials if they understand their generational preferences and are able to move toward aligning those with
international employee mobility approaches that maximize their interests and strengths.
Concluding Thoughts
The trends and insights presented explore many of the current issues in the India mobility industry and have an important role
in mobility management. Mobility leaders should filter the trends presented through the lens of their companys culture and
consider that the best approaches may be, in some cases, quite divergent from the trend or common practice.
Our recent consulting engagements with Indian companies suggest an increased commitment to consistent policy review and
revisions as a way to ensure program competitiveness. The pressure to leverage the expanding Indian workforce while continuing
to manage spend and program compliance, all the while watching for business climate changes brought forth from the new
government, will challenge companies operating in India in the upcoming year. And mobility leaders will be tasked with balancing
these sometimes competing objectives throughout 2015.
India Mobility
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