Developing Global Compensation & Benefits Program

GPHR® bODy OF KNOWLEGE

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GPHR bODy OF KNOWLEDGE at-a-GLaNCE G P H R b O D y O F K N O W L E D G E

» Strategic HR Management (25%)

» Global Talent Acquisition and Mobility

(21%)

» Talent and Organizational Development

(22%)

» Global Compensation and Benefits (17%)

» Workforce Relations and

Risk Management(15%)

i F L aW s C H a N G E We realize that employment laws change constantly. Candidates are responsible for knowing the HR laws and regulations that are in effect as of the start of each exam period.

The GPHR Body of Knowledge is updated periodically (approximately every five years) to ensure it is consistent with current practices in the HR field. All questions appearing on the exams beginning with the 2014 exam period are linked to the responsibility and knowledge statements preceding above.

GPHR EXam The Global Professional in Human Resources (GPHR®) exam is created using the GPHR Body of Knowledge, which outlines the responsibilities of and knowledge needed by today’s HR professional. The GPHR Body of Knowledge is created by HR subject matter experts through a rigorous practice analysis study and validated by HR professionals working in the field through an extensive survey instrument. It is updated periodically to ensure it is consistent with current practices in the HR field.

functional area o1: s t R at E G i C H R m a N a G E m E N t ( 2 5 %)

The development of global HR strategies to support the

organization’s short- and long-term goals, objectives,

and values.

R E s P O N s i b L iti L iti E s

01 Participate in the development and implementation of the organization’s global business strategy, plans, and structure.

02 Develop HR strategies to support the organization’s global strategic plans and the business requirements (examples include outsourcing, off-shoring, new product development, transfer of technology and human capital, talent management, shared services, mergers and acquisitions).

03 Develop an HR infrastructure and processes that supports global business initiatives where HR serves as adaptable subject matter expert and credible business partner.

04 Participate in strategic decision-making and due diligence for business changes (examples include entry strategy, expansions, mergers and acquisitions, joint ventures, new operations, divestitures, restructuring).

05 Develop HR processes to establish operations in new countries (examples include greenfield operations and integration of acquired companies).

06 Develop measurement systems to evaluate HR’s contribution to the achievement of the organization’s strategic goals.

07 Stay current on economic, geopolitical, legislative, employment, cultural, and social trends in countries of operation and develop appropriate HR strategies and responses.

08 Provide leadership for the development and integration of the organization’s culture, values, ethical standards, philosophy on corporate social responsibility, risk management, and employer branding.

09 Establish internal and external global relationships and alliances with stakeholders (examples include diversity councils, joint venture partners, employers’ groups, unions, works councils, business leader forums, governments).

10 Determine strategies and business needs for outsourcing and vendor and supplier selection for HR operations (examples include centers of excellence on benefits and payroll processing, relocation and employee services, training, global assignment management).

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11 Develop strategies for optimizing workforce and minimizing related expenses using various staffing options (examples include consultants, contract, temporary, seasonal workers).

12 Participate in the development and implementation of global change management strategies.

13 Determine strategy for HR technology (examples include HR information systems, intranet) to meet organizational goals and objectives in a global environment.

14 Participate in the development and implementation of the organization’s social media strategy and policies.

15 Participate in the development and implementation of Corporate Social Responsibility (CSR) programs consistent with corporate philosophy and goals, host country legal requirements and/or external influences.

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K N O W L E D G E O F

0001 The organization’s vision, values, mission, business goals, objectives, plans, processes, and culture

0002 Strategic/business planning and continuous improvement processes and their implementation

0003 Concepts and processes to align the global HR function as a strategic business partner (examples include business environment, markets, consumer segments, industry specific trends and cycles, key business factors)

0004 Financial planning processes and budget development

0005 Strategies and business models (examples include joint ventures, wholly owned subsidiaries, representative offices, outsourcing/off-shoring) and their implications

0006 Organizational structures (by geography, business unit, product line, and functional discipline) and their design and implementation

0007 HR analytics, methods, and processes for assessing the value and results of HR programs (examples include return on investment [ROI], cost/benefit analysis)

0008 The organization’s values and culture and their fit with the culture, legal systems, and business practice contexts of other countries, including local and regional differences

0009 Business ethics standards and practices at a global level, while maintaining local relevance

0010 Role and expectations of customers, suppliers, employees, communities, shareholders, boards of directors, owners, and other stakeholders

0011 HR technology (examples include HR information systems, Intranet) to support global human resource activities.

0012 Procedures and practices for cross-border operation, integration, and divestiture

0013 Company and site start-up practices and procedures

0014 Organization business philosophies, financial models, and financial statements

0015 Due diligence and restructuring processes appropriate to specific regulatory environments and countries.

0016 Best practices and application of community relations, environmental initiatives, and philanthropic activities

0017 Corporate social responsibility practices and policies

0018 Strategies to promote employer of choice or employment branding initiatives and best practices

0019 Social media technologies, trends, and best practices including knowledge of evolving legislation and regulations

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functional area o2: G L O b a L ta L E N t a C q u i s i t i O N a N D m O b i L i t y ( 2 1%)

The development, implementation, and evaluation of global staffing strategies to support organizational objectives in a culturally appropriate manner. This includes utilizing the employer brand; performing job and cost analysis; and attracting, recruiting, hiring, and managing global mobility to meet business objectives.

R E s P O N s i b L iti L iti E s

01 Make sure global talent acquisition and mobility policies, practices, and programs comply with applicable laws and regulations.

02 Develop a strategic approach for global talent acquisition and mobility that is aligned with business needs and a diverse workforce.

03 Develop, implement, and evaluate orientation and onboarding processes that are culturally relevant and aligned with organizational strategy.

04 Monitor staffing metrics to evaluate results against global staffing plan (examples include cost- of-hire, retention, return on investment [ROI]).

05 Comply with required talent acquisition and mobility regulations (examples include immigration, tax, visas, work permits).

06 Lead all aspects of vendor/supplier management (independent contractor, consultant, agency, and third-party organization) in the areas of staffing and mobility (examples include researching vendor options, conducting contract negotiation, vendor selection, managing ongoing relationship, conflict resolution, termination of engagement).

07 Utilize and promote the employer branding strategy to attract diverse talent from global and local markets.

08 Identify, utilize, and evaluate sources of global talent (examples include personal networks, professional and business organizations, college recruiting, job boards, social media, other technological tools).

09 Develop a global staffing plan with key

stakeholders that supports business needs.

10 Develop, implement, and evaluate pre- and post-hire policies and procedures that are culturally appropriate (examples include selection criteria and tools, employment and expatriate agreements, background checks, medical evaluation).

11 Create position descriptions that define job-specific responsibilities, knowledge, skills, and abilities.

12 Prepare cost estimates for global assignments and advise management on budgetary impacts.

13 Provide consultation to potential global assignees and their managers on terms and conditions of the assignment.

14 Manage and coordinate relocation services and expenses (examples include host location destination services, housing disposition including property management, household goods shipment and storage, travel and temporary living arrangements, logistics of repatriation).

15 Manage and coordinate mobility services and expenses for global assignments (examples include culture and language training; spouse or partner assistance; employee, spouse or partner and family mentoring and coaching, repatriation planning and implementation).

16 Establish and maintain ongoing communication practices with global assignees, host and home country management.

17 Develop repatriation programs for global assignees.

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K N O W L E D G E O F

0020 Applicable laws and regulations related to hiring and employment

0021 Strategies to promote employer of choice or employment branding initiatives

0022 Methods for developing, sourcing, and implementing a global workforce staffing plan

0023 Global and country-specific recruiting and hiring practices, methods and sources

0024 Position description development

0025 Culturally appropriate interviewing techniques and selection systems

0026 Employment contract content requirements by country

0027 Deployment activities (examples include relocation, mobility services, immigration)

0028 Company onboarding programs

0029 Staffing metrics (examples include cost- of-hire, new hire attrition, return on investment [ROI])

0030 Policies and processes related to types of assignments (examples include short- term, long-term, permanent, commuting) that address specific needs (examples include technology transfer, leadership and management development, project management)

0031 Assessment and selection tools and models for global assignments

0032 Global assignment management, tracking, and reporting

0033 Intercultural theory models and their application to overall business success

0034 Critical success factors for global assignees (examples include spouse or partner and family adjustment, support, communications)

0035 Global assignee preparation programs (examples include cultural and language training, host country site orientation, relocation services, destination services)

0036 Expenses related to global relocation and mobility services (examples include destination services, housing, travel and temporary living, shipment and storage of household goods, culture and language training, dependent education)

0037 Assignment assessment measures to evaluate global assignee fit and impact on the business

0038 Immigration issues related to global mobility (examples include visas, work permits, residency registration)

0039 Techniques for fostering effective communications with global assignees, management, and leadership

0040 Tools, best practices, and support services for repatriation

0041 Corporate income tax ramifications of employee and employment activities in various jurisdictions, including unintentional permanent establishment

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functional area o3: G L O b a L C O m P E N s at i O N a N D b E N E F i t s ( 17 %)

The establishment and evaluation of a global compen- sation and benefits strategy aligned with the business objectives. This includes financial and non-financial rewards.

R E s P O N s i b L iti L iti E s

01 Develop and implement compensation, benefits, and perquisite programs that are appropriately funded, cost- and tax-effective and comply with applicable laws and regulations.

02 Establish and communicate a global compensation and benefits strategy that aligns with business objectives and supports employee engagement.

03 Design and/or negotiate compensation and benefits programs for business changes (examples include start-ups, restructuring, mergers and acquisitions, joint ventures, divestitures).

04 Develop, implement, and assess job valuation systems aligned with global business strategy.

05 Establish and maintain compensation, benefits, and perquisite programs for key executives and employees in each country of operation, including base salary structures, short- and long-term incentive plans, supplemental benefits programs, and tax-effective compensation arrangements.

06 Develop and implement global assignment compensation terms and conditions (examples include balance sheet and alternative approach calculations, allowances, premiums, end-of- assignment bonuses, localization).

07 Develop and implement global assignment benefit and perquisite programs (examples include health care, employee assistance programs, club memberships, company cars).

08 Develop, implement, and assess programs to address income and social insurance tax obligations, including portability for global assignees.

09 Develop, implement, and manage compensation, benefits and perquisite programs for global assignees and local employees for each country of operation.

10 Manage and evaluate global assignment- related payments, payroll, and activities.

11 Research, develop and implement technological tools (for example, HRIS, performance management systems) to support the compensation and benefits programs.

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K N O W L E D G E O F

0042 Local laws regarding compensation, benefits, and taxes (examples include tax equalization or protection, mandatory or voluntary benefits)

0043 Global assignment tax planning and compliance requirements and processes 0044 Payroll requirements and global assignment payment methods (examples include split payroll, home and host country payments)

0045 Localization concepts and processes (examples include compensation and benefits adjustments, tax implications, social insurance issues)

0046 Global assignment compensation packages (examples include net-to-net, regional and host location based, headquarters based, balance sheet, host country-plus)

0047 Cost-of-living models and their impact on global assignments (examples include goods and services allowances, efficient purchaser indices)

0048 Global and country-specific benefit programs (examples include retirement, social insurance, health care, life and disability income protection)

0049 Global and country-specific perquisite programs (examples include company cars, club memberships, housing, meal allowances, entertainment allowances)

0050 Equity-based programs (examples include stock options, phantom stock, restricted shares, stock purchase) and their global application and taxation issues for the employee and the company 0051 The impact of cross-border moves on long- and short-term incentive programs

0052 Portability of health and welfare programs (examples include retirement, social insurance, health care, life and disability insurance)

0053 Finance, payroll, and accounting practices related to local compensation and benefits

0054 Procedures to collect and analyze data from global, regional, and local compensation and benefits surveys

0055 Appropriate mix of compensation and benefits for different local and regional markets

0056 Global executive compensation, benefits, and perquisites programs (examples include bonuses, deferred compensation, long-term incentives, tax-effective compensation methods)

0057 Financing of benefits programs, including insured programs, multinational insurance pooling and retirement funding options

0058 Information sources on global and local compensation, benefits, and tax trends

0059 Due diligence procedures for business changes (examples include mergers and acquisitions, joint ventures, divestitures, restructuring) with respect to compensation, benefits, and perquisites

0060 Job valuation tools (examples include point-factor systems, salary surveys, benchmarking)

0061 Tax treaties and bi-lateral / reciprocal social security agreements (Totalization Agreements)

0062 Collective bargaining agreements and works council mandated compensation and benefits

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functional area o4: ta L E N t a N D O R G a N i z at i O N a L D E v E L O P m E N t ( 2 2 %)

The design, implementation, and evaluation of organiza- tional development programs and processes to effec- tively develop a global workforce supporting business goals, culture and values.

R E s P O N s i b L iti L iti E s

01 Make sure talent development programs comply with applicable laws and regulations.

02 Align local and regional practices with corporate vision, organizational culture, and values.

03 Create and implement awareness programs (examples include diversity, non-discrimination, bullying, cultural sensitivity, multigenerational workforce) that are aligned with the organization’s philosophy and adapt to local cultural perspectives.

04 Develop systems that support the implementation of global change management initiatives.

05 Develop and implement communication programs that are effective for a global workforce and other stakeholders.

06 Make sure employees have the appropriate knowledge, skills, and abilities needed to meet current and future business requirements.

07 Implement and evaluate a process to measure the effectiveness of organizational development programs based on global HR metrics/measurements (examples include employee engagement surveys, turnover rates, training return on investment [ROI], benchmarking data, scorecards).

08 Develop and implement processes, programs, and tools to support organization and workforce development at all levels of the organization (examples include career and leadership development, succession planning,

retention, repatriated employees, short-term assignments).

09 Develop programs, policies, and guidelines to support geographically dispersed and/or virtual teams (examples include team building, project management, performance management).

10 Establish work-life balance programs (examples include job sharing, flextime, telecommuting) and their application and appropriateness to different cultures.

11 Implement culturally appropriate performance management processes that support both global and local business objectives.

12 Develop and implement global programs to support the organization’s growth, restructuring, redeployment and downsizing initiatives (examples include mergers and acquisitions, joint ventures, divestitures).

13 Develop and implement competency models to support global and local business goals.

14 Identify and integrate external workforce to provide services to support global and local objectives (examples include consultants, independent contractors, vendors, suppliers) as it relates to talent and organizational development.

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K N O W L E D G E O F

0063 Applicable laws and regulations related to talent development activities

0064 Work-life balance programs

0065 Techniques to promote and align corporate vision, culture, and values with local and regional organizations

0066 Global organizational development programs and practices (examples include succession planning, leadership development)

0067 Needs assessment for talent and organizational development in a global environment

0068 Training programs and their application in global environments

0069 Global learning models and methodologies

0070 Performance management, feedback, and coaching methods as they apply locally and globally 0071 Techniques to measure organizational effectiveness in a global business environment (examples include engagement surveys, benchmarking, productivity measurement tools)

0072 Retention strategies and principles and their application in different cultures and countries 0073 Redeployment, downsizing, and exit management strategies and principles and their application in different cultures and countries

0074 Career planning models

0075 Critical success factors for global assignees (examples include family adjustment and support, communication, career planning, mentoring)

0076 Best practices and processes for utilizing the experience of repatriated employees

0077 Competency models and their global applicability

0078 Trends and practices for employee engagement

0079 Interpersonal and organizational behavior concepts and their application in a global context (examples include the use of geographically dispersed teams, virtual teams, culture training, cross-cultural communications)

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functional area o5: W O R K F O R C E R E L at i O N s a N D R i s K m a N a G E m E N t ( 17 %)

The design, implementation, and evaluation of process- es and practices that protect or enhance organizational value. This includes managing risk, ensuring compli- ance, and balancing employer and employee rights and responsibilities on a global basis.

R E s P O N s i b L iti L iti E s

01 Make sure activities related to employee and labor relations, safety, security, and privacy are compliant with applicable laws and regulations, from initial employment through termination.

02 Comply with extraterritorial laws to mitigate risk to the organization (examples include US Title VII, US Americans with Disabilities Act, US Foreign Corrupt Practices Act, EU Data Privacy Directive and Safe Harbor Privacy Principles, UK Bribery Act).

03 Make sure the organization complies with globally recognized regulations to enable effective workforce relations and meet acceptable workplace standards (examples include OECD Guidelines for Multinational Enterprises, ILO conventions, Mercosur, NAFTA, WTO).

04 Monitor employment-related legal compliance and ethical conduct throughout the global supply chain (examples include consultants, independent contractors, vendors, suppliers) to mitigate the risk to the organization.

05 Develop assessment procedures for HR internal controls, evaluate results and take corrective actions.

06 Comply with all regulations related to employee records and data (examples include EU Data Privacy Directive, US HIPAA, Australian Federal Privacy Act).

07 Establish alternative dispute resolution and grievance processes, disciplinary procedures, and investigative processes in compliance with applicable laws and practices.

08 Develop and implement programs to promote a positive work culture (examples include employee recognition, constructive discipline, non-monetary rewards, positive reinforcement).

09 Confer with employee representative groups in compliance with statutory requirements (examples include works councils, unions, joint action committees).

10 Develop, implement, and communicate employment-related corporate policies (examples include ethics and professional standards, codes of conduct, anti-discrimination, anti-harassment, anti-bullying).

11 Coordinate global risk management, emergency response, safety, and security practices (examples include intellectual property, occupational health and safety, disaster and crisis management, duty of care).

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K N O W L E D G E O F

0080 Applicable laws affecting employee and labor relations (including termination of employment), workplace health, safety, security, and privacy

0081 Major laws that apply extraterritorially (examples include US Title VII, US Americans with Disabilities Act, US Foreign Corrupt Practices Act, EU Data Privacy Directive and Safe Harbor Privacy Principles, UK Bribery Act)

0082 Globally-recognized regulations, conventions and agreements (examples include OECD Guidelines for Multinational Enterprises, ILO Conventions, Mercosur, NAFTA, WTO, UN Compact) 0083 Employment-related legal compliance and ethical conduct of vendors, suppliers and contractors

0084 Internal controls, compliance, and audit processes

0085 Employee rights to privacy and recordkeeping requirements (examples include EU Data Privacy Directive and Safe Harbor Principles, US HIPAA, Australian Federal Privacy Act).

0086 Individual employment rights (examples include employees’ rights to bargain, grievance procedures, required recognition of unions)

0087 Appropriate global and local techniques for managing employee relations (examples include small group facilitation, dispute resolution, grievance handling, employee recognition, constructive discipline).

0088 Legal and customary roles of works councils and trade unions

0089 Local collective bargaining processes, strategies, and concepts

0090 Employment litigation

0091 Workplace security risks including physical threats and piracy of intellectual property and other company-proprietary information

0092 Local conditions relating to personal security (examples include kidnapping, terrorism, hijacking)

0093 Emergency response and crisis management planning (examples include plans for medical emergencies, pandemics, disasters, evacuation, riots, civil disorder, other physical threats, facility safety)

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C O R E K N O W L E D G E

0094 Basic business, global, political, and socioeconomic conditions, demographics, law, and trade agreements, and how they relate to business operations

0095 Globalization and its drivers, opportunities, consequences, and trends

0096 Global management techniques, including planning, directing, controlling, and coordinating resources

0097 Global project management methods and applications

0098 Global application of human resource ethics and professional standards

0099 Change management strategies, processes, and tools

0100 Global leadership concepts and applications

0101 Qualitative and quantitative methods and tools for analysis, interpretation and decision- making purposes and their application 0102 Intercultural theory and specific cultural behaviors

0103 Cross-cultural management techniques

0104 Strategies for managing global vendor/ supplier relationships, selection processes, and contract negotiations

0105 Communication processes and techniques and their worldwide applicability

0106 Effective use of interpreters, translators, and translations

0107 Techniques to promote creativity and innovation

0108 Principles and practices that foster a diverse workforce

0109 Strategies of globalization versus localization of HR policies and programs

0110 HR capability within the organization (both global and local)

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76 Needs assessment and analysis

77 Third-party or vendor selection, contract negotiation, and management, including development of requests for proposals (RFPs)

78 Communication skills and strategies (for example: presentation, collaboration, sensitivity)

79 Organizational documentation requirements to meet federal and state guidelines

80 Adult learning processes

81 Motivation concepts and applications

82 Training techniques (for example: virtual, classroom, on-the-job)

83 Leadership concepts and applications

84 Project management concepts and applications

85 Diversity concepts and applications (for example: generational, cultural competency, learning styles)

86 Human relations concepts and applications (for example: emotional intelligence, organizational behavior)

87 Ethical and professional standards

88 Technology to support HR activities (for example: HR Information Systems, employee self- service, e-learning, applicant tracking systems)

89 Qualitative and quantitative methods and tools for analysis, interpretation, and decision-making purposes (for example: metrics and measurements, cost/benefit analysis, financial statement analysis)

90 Change management theory, methods, and application

91 Job analysis and job description methods

92 Employee records management (for example: electronic/paper, retention, disposal)

93 Techniques for forecasting, planning, and predicting the impact of HR activities and programs across functional areas

94 Types of organizational structures (for example: matrix, hierarchy)

95 Environmental scanning concepts and applications (for example: Strengths, Weaknesses, Opportunities, and Threats [SWOT], and Political, Economic, Social, and Technological [PEST])

96 Methods for assessing employee attitudes, opinions, and satisfaction (for example: surveys, focus groups/panels)

97 Budgeting, accounting, and financial concepts

98 Risk-management techniques

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