India Mobility Report

98 Pages·2012·13.1 MB·English

2012
Volume 1

The SIRVA India Mobility Report
Volume 1, 2012

© Copyright 2012 - SIRVA Pty Ltd
SIRVA is a registered service mark and the SIRVA LOGO DESIGN is a service mark of a subisdary of SIRVA, Inc
About SIRVA
A leading worldwide provider of relocation and moving solutions, SIRVA operates in more than 150 countries with
over 2,300 mobility specialists and provides more than 230,000 relocations per year to corporations, government
employees, and individual consumers.
The company delivers all aspects of relocations end-to-end within its own network, including services in international HR
consulting, international compensation, visa and immigration, assignment management, destination services, expense
management, and household goods moving and storage.
SIRVA has an unrival commitment to thought and industry leadership, and is currently engaged in a range of related projects
including:
Roundtable discussions on global mobility policies and practices at a variety of conferences and seminars, i.e.
visa and immigration, assignment management.
Sponsorship of the Australian Human Resource Institute (AHRI) Convention, global mobility special
interest groups, HR Directors’ Forums and the Worldwide Employee Relocation Council
Benchmarking mobility policies and practices, assisting organisations in reviewing and redesigning their
global mobility infrastructure
Conducting research on mobility policies and practices for emerging locations, i.e. China, India
Integrating and developing higher performing organisations through cultural awareness and diversity
Delivering global mobility trends to our clients
SIRVA University, a learning platform for organisations
SIRVA Relocation is also the Australian representative for ORC mobility products. Mercer acquired ORC Worldwide in 2010.

With services designed to reduce risk exposure and relocation costs, streamline administration and improve employee
satisfaction SIRVA delivers:
International HR Consulting
International compensation data products ORC products and services
Visa and Immigration
Assignment Management
Cross-Cultural and Intercultural Programs
Destination Services, including orientation, home, education search
Expense Management
Household goods moving and storage
Housing Reports and services
Insurance and Claim Management
Move Management
4 The SIRVA India Mobility Report - Vol. 1, 2012
The SIRVA India Mobility Report
Table of Contents
Section A
Introduction 6
Report structure 7
1. Assignment Analysis 10
1.1 Location demographics 10
1.2 Assignees represented by industry in Tier 1 and Non Tier 1 locations 11
1.3 Assignment types represented across industries in Tier 1 and Non Tier 1 locations 12
1.4 Assignment types and definitions 14
1.5 Mobility patterns – current and planned 16
2. Policies and Practices 17
2.1 Policy differences between international and domestic assignments 18
2.2 Policy differences between industries 21
2.3 Policy elements for International Assignments 22
2.3.1 Cost projections 22
2.3.2 Orientation 23
2.3.3 Cross cultural transition program 24
2.3.4 Language training 24
2.3.5 Partner career support 24
2.3.6 Remuneration approaches 24
2.3.7 Cost of Living allowance 24
2.3.8 Remote or Hardship allowance 25
2.3.9 International assignment premium 26
2.3.10 Incidental or Relocation allowance 26
2.3.11 Housing assistance 26
2.3.12 Home leave travel 30
2.3.13 Rest and Recreation leave 30
2.3.14 Private transportation 31
2.3.15 Education assistance 31
2.3.16 Transportation of household goods, pets and storage 31
2.3.17 Home and education search services 32
2.3.18 Repatriation 32
2.4 Policy elements for Domestic Assignments 33
2.4.1 Cost projections 33
2.4.2 Orientation 33
2.4.3 Remuneration approaches 34
2.4.4 Remote or Hardship allowance 34
2.4.5 Incidental or Relocation allowance 34
2.4.6 Housing assistance 34
2.4.7 Private transportation 35
2.4.8 Education assistance 35
2.4.9 Transportation of household goods, pets and storage 35
2.4.10 Home and education search services 35
2.4.11 Home sale and purchase assistance 36
3. Assignment Management 37
4. HR and Mobility challenges 39
5. Acknowledgements 40
6. About the Research Leader 41
Section B
1. About the SIRVA India Mobility Report 44
2. Participants of the research 45
3. Industry reports 46
4. Participants of the research
Banking/Financial Services 47
IT/Telecom 58
Manufacturing / Petrochemical 75
Miscellaneous 93
The SIRVA India Mobility Report - Vol. 1, 2012 5
Introduction
SIRVA Relocation has created this unique India Mobility Report immigration processes, new social security rules, taxation
to address the lack of readily available benchmark information regime, cultural differences, security concerns – and a highly
on international and domestic mobility policy and practices. The disorganised real estate market – have created a particularly
report also addresses local insights pertinent to challenges faced challenging human capital and workforce environment.
by international assignees or business managers and explanation
of some of the policy elements which are crucial when interpreting Additionally, India’s broad ethnic and linguistic diversity
and implementing mobility policy and practices in India. (with more than 300 known languages; 24 of these spoken by
at least one million people) creates further challenges in both
With heightened activity in India, this data and information is international and domestic assignments. English enjoys the
vital for HR and business managers to make informed decisions status of subsidiary official language but is the most important
when supporting and leading mobility strategies for their language for national, political, and commercial communication;
companies and employees. Hindi is the most widely spoken language and primary tongue of
41% of the people; there are 14 other official languages.
India, the second fastest growing economy, is expected to
accelerate its GDP by an annual average rate of 8.3% over the next Major challenges as reported by participants include the
five years. This growth can be sustained, at least in the medium changing business and talent environment, coupled with high
term, with its favourable demographic profile of a young and cost of assignments, lack of qualified resources to manage
rapidly growing population(1). As reported by McKinsey Global these assignment programs and increasing tax and immigration
Institute, India requires thriving cities if that dividend is to pay compliance, the sourcing and deployment of talent has become a
out. McKinsey estimates that there will be a nett increase of 270 critical issue for all organisations.
million people in the working age population, and cities could
generate 70 percent of new jobs created to 2030, produce more The SIRVA India Mobility Report, a central source of information
than 70 percent of Indian GDP, and drive a near four-fold increase about the trends of key policy and practices components of
in per capita incomes across the nation. Additionally, 68 cities international and domestic assignments across industries in
will have a population of one million people or more up from 42 India, will assist to strengthen leadership development, facilitate
cities today. (2) a diffusion of talent, link business and mobility strategies and
address these global mobility imperatives vital to achieving a
Expansion into Non Tier 1 cities is inevitable and evolving at a true competitive advantage.
faster pace, while India is still waking up to its urban realities and
opportunities. Although the reality is that some urban cities or The report provides a detailed reference tool benchmarked by a
Non Tier 1 locations are attractive in terms of better quality of life, number of variables (industry sector, policy type, locations) to
growing affluence levels, improved physical connectivity, more help organisations comprehend not only the evolving mobility
purchasing power. The consumer base is also large and growing policy and practices in India, but its complexity in the application
but the infrastructure for expatriate living is not ideal. (3) of these policies and practices.
India has been investing heavily in creating opportunities for
global organisations to launch new operations in the country.
Generally in these organisations, foreign workers are engaged
in key and higher level positions. However, the complexity
associated with the employment of foreign workers with
(1) Global Forecasting Service, Economist Intelligence Unit
6 The SIRVA India Mobility Report - Vol. 1, 2012 http://gfs.eiu.com/Article.aspx?articleType=rf&articleid=758667860&secId=0
(2) McKinsey Global Institute – India’s urban awakening: Building inclusive cities, sustaining economic growth
(3) An Increasingly Affluent Middle India is harder to ignore – India Knowledge@wharton
Report Structure
The SIRVA India Mobility Report represents an up-to-date analy- a best-fit approach and to preserve the confidentiality of partici-
sis of data provided by 10 industries spanning short term, long pating companies, where there were three or less participants for
term and permanent one-way assignments for both international a single industry. The industry groups are consolidated as shown
and domestic moves across Tier 1 and Non Tier 1 locations in In- in the following table:
dia. Several industries were consolidated into four groups using
Industry type reported Industries consolidated
Banking/Financial Services Banking, Financial Services
IT/Telecom IT, Telecom
Manufacturing/Petrochemical Manufacturing, Petrochemical
Miscellaneous Agriculture, Pharmaceutical, Professional Services, Publishing
SIRVA Relocation wishes to acknowledge and thank the 22 The results of this research have been divided into two sections:
leading companies that contributed to this new report. Their
contribution to this unique SIRVA research initiative provides 1. Section A provides:
the foundation for valuable policies and practices benchmark for analysis of the key findings across all industries, for
HR and business professionals. assignment policies, separated against international and
domestic assignments
Research contributions closed in mid-2011, ensuring this report
provides recent information for HR professionals to compare their analysis of the key findings across all industries, for
mobility policies and practices across all major industries − as assignment practices and management challenges
well as against assignment type − and crucially, across Tier 1 and
Non Tier 1 locations. local insights pertinent to the various policies and practices
elements
The SIRVA India Mobility Report is an ongoing ‘living’ research
initiative that enables participants to update policies and practices explanation of various policy elements to provide
online. SIRVA Relocation will publish biennial comprehensive clarification and overcome interpretation concerns.
updates to the Report to:
2. Section B provides detailed reports for each of the four
Ensure ongoing insights into variances of assignment types and consolidated industry sectors across:
policy applications
International: Tier 1 and Non Tier 1 locations
Establish a template for tracking and exploring emerging policy
trends and administration practices Domestic: Tier 1 and Non Tier 1 locations
Provide a reference point from which to develop strategies that Terminology
challenge traditional thinking versus flexible and fit-for-purpose
application of policy When reading the information and interpreting the data, please
note that the percentages are calculated based on the companies
who responded to each particular question. Not every question is
relevant to all of the companies, so percentages will vary between
questions. All percentages are rounded to the nearest whole
number.
The SIRVA India Mobility Report - Vol. 1, 2012 7
Contact Details
Lorraine Jennings
Senior Manager, IHR Consulting Services
Asia Pacific and Middle East
SIRVA Relocation Australia
[phone]
[email protected]
Nigel Smith
General Manager
SIRVA Relocation Australia
[phone]
[email protected]
8 The SIRVA India Mobility Report - Vol. 1, 2012
Section
A

The SIRVA India Mobility Report
Volume 1, 2012
The SIRVA India Mobility Report series is the first ever
mobility policy and practices benchmark spanning major
industries, various assignment types and, crucially Tier 1
and Non Tier 1 locations. It assists businesses with the
creation of their India mobility strategies and promotes
informed decision-making.
1. Assignment Analysis
1.1 Location demographics
The following table represents the locations that participating
companies reported working in during 2011. A total of seven Indian
Tier 1 cities were represented, while participating companies
reported that they had operations in 12 Non Tier 1 cities.
Tier 1 Non Tier 1
Bhopal
Bangalore
Bhubaneswar
Chennai
Chandigarh
Hyderabad
Dehradun
Kolkata
Gandhinagar
Mumbai
Itanagar
New Delhi
Jaipur
Patna
Jammu
Lucknow
Panjim
Raipur
Ranchi
There is no established definition of Tier 1 and Non Tier 1 locations. on population and business infrastructure. This concept is not
Research indicates that the status of Indian cities comprises two dissimilar to SIRVA Relocation’s definition.
ranking systems A and B used by the Government of India to
allocate compensatory city allowances and House Rent Allowances SIRVA Relocation, through its research, has created the following
for employees who are mobile. The category A cities comprises criteria to explain the differences between Tier 1 and Non Tier 1
national capitals and category B further ranks cities dependent locations from an expatriate living perspective:
Tier 1 Non Tier 1
Tier 1 or top-tier cities are classified as national capitals or The primary distinction to determining whether a location is
recognised national economic hubs, which have experienced designated Tier 2 or Tier 3 or beyond has been broadly based on
exponential growth. economic considerations, including:
For historical and geographic reasons, these cities have better • Level of annual GDP per capita
infrastructure as well as stronger, most enduring links with • Whether a city is located in a region of strategic
the outside world. development
• Level of business infrastructure
• Growing domestic demand and government spending
Some of the Non Tier 1 locations have seen a much faster rate of
growth than Tier 1 cities.
In addition, from an ‘expatriate standard’ infrastructure
perspective, Tier 2 locations have limited expatriate standard
infrastructure including international-standard housing,
schooling and health care, while Tier 3 locations would have
minimal or no expatriate-standard infrastructure in place.
10 The SIRVA India Mobility Report - Vol. 1, 2012