PwC in Scotland

Working overseas - making the undesirable, desirable and the process hassle-free

PwC — Thu, 23 May 2013 11:54:55 +0100

Erika Campbell, human resources director, PwC in Aberdeen

Having employees who are up for the challenge of working abroad can be a boost for businesses looking to grow existing overseas operations or expand into emerging markets. But the challenge comes when the location is perhaps deemed to be a little less desirable.

With wanderlust the norm among millennials (those born after 198o) this is certainly a workforce businesses will want to tap into, however, even this group has a discerning side. In our recent Millennials at Work survey, only 11% said they would work in India with a mere 2% saying they would work in China or Iran.

So how can businesses make the seemingly undesirable, desirable?

Throwing money at employees in the hope of incentivising them is one option. The offer of an attractive financial package is a route that has been used in the past by industries such as oil and gas, which has a long track record of sending people to work in less attractive locations such as Nigeria and Algeria.

With governments in fast growing economies and destination cities now offering tax breaks or lower tax rates and investing in infrastructure, this can be a useful route for businesses – and for the employee.

International assignments are also increasingly being seen as way of getting on a promotion fast track, with many employers placing a premium on mobility and how successful – professionally and personally – short or long term experiences have been.

While this seems to be a win-win for businesses and employees, there are some clouds on the horizon. With immigration becoming more of a global political football, we are seeing the erection of barriers to mobility - and this could have a real impact on Scottish businesses.

We are already hearing from some CEOs that these restrictions are holding them back from pursuing a market opportunity or forcing them to delay or cancel a strategic initiative.

Tightening of immigration requirements could make life difficult not just for long term assignees but also for the short-term business traveller or energy worker on a long run rota system, working four weeks on four weeks off. In many countries, unless it is a short-stay to attend a meeting, workers are likely to require a work permit and this will post major challenges for firms needing to deploy people quickly.

For those businesses with overseas operations or planning international growth, it is vital that they not only consider the risk agenda of target locations and navigate the intricate and dynamic nature of national and regional tax regulations, but adapt quickly to increasingly complex immigration policies.

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For more information, contact:

Erika Campbell, human resources director, PwC in Aberdeen, tel: 01224 253253

Alan Milburn appointed Chairman of PwC’s new Health Industry Oversight Board (HIOB)

PwC — Thu, 23 May 2013 02:00:00 +0100

PwC has announced the creation of a new Health Industry Oversight Board (HIOB) to be chaired by Rt Hon Alan Milburn, former Cabinet Minister.

The HIOB marks a key investment by PwC in its newly formed Health Industry sector, which capitalises on PwC’s existing strength servicing public health, private health and pharmaceutical and life science clients.

Alan Milburn, Chair of PwC’s Health Industry Oversight Board, commented:

“I’m delighted to be working with PwC in this new role. The health industry in the UK offers strong opportunities for growth in the wider economy and for PwC. My aim is to bring together a panel of industry experts to help catalyse change across the health sector and to help PwC grow its presence in the health market.”

“PwC has a great team with strong technical skills and a tremendous breadth of industry knowledge combined with a real desire to help organisations succeed. PwC is well placed to drive innovation in health solutions given its long standing commitment to this market.”

Commenting on this appointment, Richard Oldfield, head of markets and industries at PwC, said:

“This is an exciting development for PwC. Alan’s appointment and the creation of the Health Industry Oversight Board mark a significant investment in this sector and a consolidation in our approach to the market.

“Alan and the HIOB will add further to our strong position that is focused on creating value relevant to health care payers, providers and patients."

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Falling fuel prices push down April inflation

PwC — Tue, 21 May 2013 14:52:00 +0100

April’s lower than expected inflation rate is the first dip in UK inflation since September 2012, according to today’s data from the Office for National Statistics (ONS).

Inflation, as measured by the consumer price index (CPI), fell to 2.4% in April from 2.8% in March, with around half of the fall attributable to lower fuel prices.

Declining air fares were the other major contributor to the decline.

Between March and April, average petrol and diesel prices fell by 2.1p and 3.9p a litre respectively, however the ONS said that food prices continued to rise due to reduced crop production resulting from prolonged bad weather.

Average food prices have now risen by 40% since 2007, as successive years of bad weather hit farming and crop yields, the ONS said.

Commenting on today’s UK inflation figures Dr Esmond Birnie, PwC chief economist in Scotland said:

"This latest drop in the inflation rate is more than most observers expected, but its welcome nonetheless as it relieves some of the squeeze consumers have experienced between rising prices and falling incomes.

“With wages having increased at less than half the rate of inflation for almost five years, any slowdown in inflation is welcome.

“However airfares and fuel prices, which contribute to April’s decline, are among the more volatile components of inflation and these could easily reverse.

“That means the drop we have seen in April may not be sustained, so we cannot assume that inflation is on a steady decline towards the Bank of England’s 2% target and regrettably we could see inflation moving upwards again over the summer.”

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Businesses urged to tackle disaster risk reduction in new UN / PwC led initiative

PwC — Mon, 20 May 2013 12:29:06 +0100

UN Global Platform for Disaster Risk Reduction (19-23 May)
PwC / UNISDR report warns that business growth in hazard-prone parts of the world is leaving the private sector more exposed to disaster risk
New business initiative responds to the UN’s call for more action from the private sector on disaster reduction

A new report by the UN International Strategy for Disaster Reduction (UNISDR) and PwC warns that large multinationals’ dependencies on international supply chains, infrastructure and markets poses a systemic risk to ‘business as usual’.

The findings come after a separate report, the UN’s Global Assessment of Risk (GAR13) report warned that direct losses from floods, earthquakes and drought were under-estimated by at least 50%. The GAR13 warned that business needed to act to protect itself better, as mounting losses this century from catastrophic events top $2.5 trillion and economic losses were described as ‘out of control.’

The UNISDR/PwC report Working together to reduce disaster risk examined disaster risk management approaches and experiences in 14 leading global businesses, including Nestle, Walmart, General Electric, Citigroup and BG Group. It was launched to mark a new initiative led by UNISDR and PwC to link private sector businesses of all sizes in disaster planning.

Businesses taking part in the report undertook a pilot assessment of their risk management activities which showed that while good practices existed for disaster risk reduction for corporate-owned assets, the level of understanding and ability to manage risks in local supply chains was far lower.

The private sector has witnessed increasing numbers of occasions of indirect impacts of natural disasters amplifying losses globally through commodity price rises, supply chain disruption, workforce dislocation, asset damage, and lost or damaged infrastructure. The report highlights how:

Even businesses with established risk management systems in place need to do more to protect themselves fully against natural disasters;
Small more vulnerable enterprises in developing economies, do not have the capacity to strengthen their risk management and overall supply chain resilience alone;
Global businesses need to consider shared risks with suppliers, SMEs and local businesses in their supply chain, particularly in developing and emerging economies, where disproportionate economic and human impacts of disasters are being felt;
Few global corporations collaborate actively with governments across countries in which they operate
Some large businesses rely on the insurance industry alone for risk assessments, with most having only limited access to disaster risk information on which to base investment decisions.

Oz Ozturk, PwC partner and leader of the global initiative, said:

“The risks posed by natural disasters go well beyond the boundaries of a company’s operations. The damaging effects of disasters are reaching beyond protection insurance covering physical assets, and businesses need to consider productivity, declining customer demand and goodwill, and employee morale and stress.

“The businesses we interviewed understand they need to do more than just do business in the communities they are working in. Collaborating on disaster risk management is a strong platform on which to create local partnership with governments and cities, and demonstrates that business is having a full and positive impact on society.”

The new initiative, facilitates the involvement of private and public sector organisations of all sizes and in all sectors, to take steps on disaster risk reduction, offering an assessment tool to help companies identify where their companies’ plans stand, and where gaps exist in the management of disaster risk.

Margareta Wahlstrom, UN Special Representative of the Secretary-General for Disaster Risk Reduction said:

“While many private sector players are demonstrating an improved understanding of how their operations could be affected by natural hazards, there is a huge need for businesses worldwide to play a more central role in reducing disaster risk. The economic losses speak for themselves.

“The other side of the equation is that disaster risk management is a business opportunity. For example, the development of new crop insurance products or more disaster resilient infrastructure are major emerging needs in response to extreme weather events, rapid urbanization and growing exposure to disaster risk.

“This is ultimately about improving safety for all, and the security of supply chains and economic growth, and this initiative will provide a common platform for understanding disaster risk management in the private sector across businesses of all sizes, in any industry or sector.”

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A tale of two businesses - a view on complexity

PwC — Fri, 17 May 2013 15:57:56 +0100

Removing complexity creates an organisation that’s agile and can respond efficiently and effectively to market changes. They also know how their people, processes and systems add value to customers and the business. This can be challenging to get right, but the benefits are significant and will ultimately lead to improved business resilience and growth that outstrips the market.

In the brief introductory video below - 'A tale of two businesses' -we show how addressing the complexity issue, will improve the performance of your operations, reduce your costs and give your customers a better experience.

This creates a real opportunity to deliver business value and set you on course for a platform for growth.