EXPAND YOUR HORIZONS Make the Right Connections Fundamentals of Global Relocation

1. EXPAND YOUR HORIZONS Make the Right Connections Fundamentals of Global Relocation

2. Global Trends • International activity remains strong; globalization continuing into new markets • Return on Investment for an assignment continues to be an area of focus with Talent Management emerging as a stronger factor • More focus on analysis of international relocation/assignment costs to ensure Effective Use of Funds • Drive to make policies more flexible to “tailor fit” the assignment, leading to more policy tiers and more policy types; • Heightened focus on Risk Management

3. Focus on Talent Management Process • Improved candidate assessment and selection • Monitored assignment progress; provision of executive sponsor for assignees • Planning for successful repatriation at the beginning of an assignment • More effective communication of the objectives of the assignment Policy • Review of policy components to fully support talent management • More use of tiers and flexibility to meet the needs of talent development • Enhanced spousal/partner support

4. Focus on Use of Funds Process • Focus on analyzing costs and using funds in the right place rather than cutting back on benefits • Reviewing and streamlining processes to gain efficiencies • Increased benchmarking to ensure identification of new or creative solutions • Heightened focus on exception management Policy • Host plus and reduced balance sheet approaches increasing in popularity • Increased use of allowances vs. reimbursement to reduce cost, reduce administration, and allow more choice and flexibility

5. Focus on Use of Funds Process • Focus on analyzing costs and using funds in the right place rather than cutting back on benefits • Reviewing and streamlining processes to gain efficiencies • Increased benchmarking to ensure identification of new or creative solutions • Heightened focus on exception management Policy • Host plus and reduced balance sheet approaches increasing in popularity • Increased use of allowances vs. reimbursement to reduce cost, reduce administration, and allow more choice and flexibility

6. Focus on Risk Management Process • Review of security and evacuation processes • Continued focus on visa and immigration compliance • Continued focus on tax compliance • Increased use of technology for reporting, tracking, and managing spend Policy • A newly disciplined and action-oriented approach to policy including benchmarking of competitor programs/best practices • Scrutiny and update of policies to ensure risk and compliance factors are effectively addressed (particularly in the case of merger, acquisition, and divestiture activity)

7. Case Study

8. Assignee Need • Financial/Budget Process Expert’s job responsibilities would benefit host country • Host Country: Belgium • Estimated length of assignment: 12-18 months

9. Assignment Planning

10. Case Study “Candidate” • Candidate Home Country: USA • Candidate Family Size: 7

11. Where Global Relocation is Involved, Timing is Everything • Expatriate assignments can be costly to the employer and work permits take time to process • Therefore, planning is essential. Ideally, planning occurs at least 3-6 months prior to the assignee’s anticipated arrival • Emerging trend - more reliance on short-term assignments • In many cases, short-term assignees do not receive the same relocation support as expatriates • Many are left to handle immigration matters on their own • Assignees often obtain business visas for assignments that require work authorization

12. Examples of Compliance Issues • Foreign nationals entering as tourists to perform business-related activities • Noncompliance with exit procedures • Intentionally applying for the wrong type of visa • Starting an assignment without the proper work authorization • Working on a business visa

13. Business Visa or Work Permit? The primary determinant of whether work authorization is required is the nature of the activities to be undertaken in a country, and NOT the intended length of the assignment or the location of compensation.

14. Activities Generally Permitted for Business Visitors • Business meetings • Fact-finding missions (to establish an office, business contacts, house hunting, etc.) • Marketing and sales contacts to promote goods or services originating out-of-country • Professional or business conferences

15. Additional Permitted Activities • Many countries have exceptions to the general restrictions on business visitor activities: • Training (receiving, not providing) • After-sale installation and/or service or warranty work provided for in the sales contract • Intra-company consultation

16. Obtaining a Business Visa • Business visas are required for any foreign national whose country of citizenship does not have a treaty or agreement with the host country granting visa waiver eligibility. • Applications must be submitted to the embassy or consulate with jurisdiction over the applicant’s place of residence; a personal appearance may be required. • Average processing times range from 1 to 10 business days for most applications. • Exceptions in the case of security checks, restricted nationalities, etc…

17. Obtaining a Business Visa • Required documents normally include: • Application form • Passport with at least 2 blank pages, valid for at least 6 months from the date of application • Passport-style photograph(s) • Company letter of support • Proof of funds available to support applicant and any accompanying family members during the visit, such as a bank statement, pay stubs, proof of employment etc… • Proof of legal residence/immigration status in the country where the application is filed • Copy of round-trip airline ticket or copy of travel itinerary • Application fee • Certified copy of the articles of incorporation of the company or the employer’s certificate of good standing (may be required for some countries)

18. Business Visa Limitations • Duration of stay • Period of intended stay must be a limited, pre-set period of time consistent with the intended purpose of the trip • “Work” activities • Business visitors cannot officially represent an entity located in the host country • Business visitors cannot perform activities which compete directly with the activities of local citizens or permanent residents of the host country • Business visitors cannot earn wages or commissions in the host country, or receive any remuneration from an entity located in the host country • Business visitors must have a residence and an employer outside of the host country

19. Business Traveler Best Practices • When entering a foreign country: Do • Carry proof of your travel itinerary • Carry a copy of the letter of support signed by your employer which was filed with your visa application • Carry a valid passport with at least 6 months remaining validity and at least two blank visa pages • Know the purpose of your business trip and be prepared to provide an accurate and detailed explanation of your intended activities

20. Business Traveler Best Practices • When entering a foreign country: Do not • Misrepresent the purpose of your visit (i.e. enter the host country as a tourist) • Carry a business card indicating an office address in the host country • Maintain a desk or a direct phone line at an office in the host country

21. Employment Authorization Process Step 1: Obtain required documentation and prepare the application materials • 2 to 3 weeks for destinations that do not require legalized documentation • 2 to 12 weeks for destinations that require legalized documentation Step 2: Work Permit application filed in the destination country • Processing times range from 1 to 24 weeks Step 3: Visa application filed at a consulate that has jurisdiction over the applicant’s place of residence • Processing times range from 1 to 5 business days Step 4: Residence permit or registration application filed post-arrival • Processing times vary significantly by country

22. Employment Authorization Eligibility Criteria • Academic credentials (i.e. Bachelor’s or Master’s degree) • Proof of relevant work experience, usually in the form of a resume • No previous immigration violations in the destination country • No prior criminal record • Work permit sponsor in the destination country • Salary comparable to what a local national would receive in the same position • Employment contract or assignment agreement • Valid passport, with remaining validity period of at least six months and two blank visa pages • Passport photos • Criminal background check (not always required) • Medical exam (not always required) • Age & Gender play a factor in certain locations

23. Common Pitfalls and Red Flags • Former Nationality Issues • Overstay • Post-arrival processes missteps • Cancellation/de-registration processes • Unmarried partner/common law partner • Overage dependents • Medical issues • Criminal Records • Past immigration violations

24. Case Study Illustration • Financial/Budget Process Expert’s job responsibilities would benefit host country • Host Country: Belgium • Estimated length of assignment: 12-18 months • Candidate Home Country: USA • Candidate Family Size: 7

25. Case Study Illustration (continued) • Transfer Visa for Specialists • Family Visa Options • Processing takes 8 weeks to complete • Employee enters as a visitor for initial training and returns to receive work permit and visa

26. Current Global Environment • The synchronized recession has resulted in unprecedented tightening of immigration requirements in a number of jurisdictions • Driven by domestic political considerations rather than any practical outcomes • Government requirements juxtaposed to business trends: • Governments enacting more restrictive immigration policies with heightened scrutiny VS. • Business needs to decrease costs and find new opportunities globally where time is of the essence

27. Global Economic Downturn • Governments are enacting restrictive immigration regulations in response to the current global economic downturn: • Reduction in skilled worker programs • Heightened application requirements • Quota systems and other restrictions on the issuance of business visas and work permits • Policies favoring stricter enforcement of immigration and labor laws

28. Global Migration Trends • Increase in new legislation restricting access to labor markets by foreign workers, often introducing new penalty regimes for employers engaged in non-compliance • Increasing Governmental emphasis on Compliance in the form of increased penalties for immigration non-compliance and increased enforcement • Apart from immigration compliance, there is also a focus on enforcing tax regulation through requiring Work Permits

29. Global Migration Trends (continued) • More restrictive interpretation of existing laws • Focus shifting from duration to activity based review for business travelers • Nature of International Assignments changing from traditional expatriate assignment to short-term business travel • Increased movement of employees from developed countries impacted by the economic downturn to emerging markets

30. Global Trends in Immigration Enforcement • Increase in governments’ efforts to punish noncompliant companies and individuals • Introduction to more severe penalties for noncompliance • Significant investments in biometric and information-sharing technology • Greater emphasis on employer accountability • Increase in frequency of worksite inspections and audits • Negative publicity for noncompliant companies • Comprehensive plans to deport hundreds of thousands of immigration violators

31. Specific Challenges for Global Corporations • Accountability for monitoring employees deployed worldwide • Nuances of varying immigration laws from country to country • Wide variance in definition of “work” • Application procedures vary country by country, consulate or even from city to city • Unknowing failure to comply is generally actionable • Increased financial exposure due to sheer volume of employees

32. The Global Move • Space consideration/Density • Communication: Consistent and timely updates as move progresses • Scorecard and Performance Measurements • Setting Expectations

33. The Global Move • Understanding account directives and transferee/assignee needs • Education and Direction for Transferee/Assignee • Selection of Origin and Destination Move Agents • Use of packers/move crews with international packing knowledge and skills

34. Questions?