Cisco Global Relocation Program – Focus on Policies
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© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential Presentation_I D 1 Cisco Global Relocation Program – Focus on Policies Shauna Page – Global Relocation Engagement Manager - Emerging and European Markets
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Cisco Global Relocation Program – Focus on Policies. Shauna Page – Global Relocation Engagement Manager - Emerging and European Markets. Agenda. Policy types International Assignment – components and rationale International Transfer Policies Q&A. IA (International Assignment) - PowerPoint PPT Presentation
Transcript of Cisco Global Relocation Program – Focus on Policies
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1
Cisco Global Relocation Program – Focus on Policies
Shauna Page – Global Relocation Engagement Manager
- Emerging and European Markets
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2
Agenda
Policy types
International Assignment – components and rationale
International Transfer Policies
Q&A
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Relocation Types IA (International Assignment)
– On Company’s Request
– Follow Home Benefit Plan
– International Medical Insurance
–Temporary in NatureShort Term (STIA) – 4 to 18 monthsLong Term (LTIA) – 2 to 5 years
IT (International Transfer)– Long Term Career Plan in
the New Location
– Follow Benefit, Payroll in the New Location
IT Lump Sum
IT Managed Move
IT Local Plus
IT Returnee
IT Personal
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 4
International Assignment A long term international assignment is normally leveraged to
fill a role with leadership talent to meet a long term business need that requires continuity of 2 to 5 years in the role to meet the objectives.
Business Drivers Start-up of a function or the start up of a new location/new legal entity
A critical long term business initiative
Business turnaround
Relationship building with government
Talent Considerations Establish or build a presence in a new location
Start or build a function in a new or existing location
Identify and develop local talent to be a successor
Gain needed experience and development to be positioned as a global leader
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International Assignment BenefitAligned with home payroll and retirement plan.
Global medical coverage.
Relocation Assistance
– Visa Assistance
– Destination Service
• Househunting Trip
• Settling Assistance
– Household Goods Shipment
– Storage at Home location
– Temporary Housing (60 days)
– Tax Assistance
– Repatriation Assistance
Assignment Related Allowances
– Host Housing Allowance
– Education Allowance
– Transportation Allowance
– Annual Home Leave Allowance
– Utility Allowance
– G&S Differential
– Miscellaneous Relocation Allowance (Equivalent to purchasing Power of USD 15,000)
**Average Cost for a Tier (1) 2-year LTIA – USD 1,500,000
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IT Personal Move
Features
This is an employee-initiated move for personal reasons.
Employee is responsible for all expenses related to the transfer.
Benefits
Visa Services
Tax Services
*** Estimated cost for IT Personal Move – USD 6,000 to USD10,000
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IT Lump Sum MoveFeatures
Employee manages all other assignment related costs not included in the benefit
Lump sum relocation allowance provided to offset costs incurred while moving
Allowance amount is a factor of family size and base salary of new position.
Benefits
Tax Services
Visa Services
Enroute Travel
Optional (If approved)
Destination Service (house hunting trip)
Temporary Living up to 30 days
Family Size Allowance
3 or less 3 X new monthly base salary
4 or more 3.5 X new monthly base salary
***Average cost – USD 12,000 to USD 25,000 + lump sum
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IT Managed MoveFeatures
More expensive option than IT Personal Move or IT Lump Sum
A company managed move
Extended benefits & reduced relocation allowance
Benefits Destination Services including look-
see trip
House lease cancellation reimbursement (Home Location)
Loss from sale of automobile in Home Location
Shipment – Air & Surface
Temporary living up to 60 days
Enroute Travel
Tax Services
Visa Services
Relocation Allowance of USD 7,500***Average Cost – USD
100,000
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IT Returnee
Features
Used for returning citizens
Have been away from origin country for at least 3 years
Long term career plan in host location
Transition support
Declining allowances for 2 years (100%-50% of allowance base)
Benefits
Allowance base: 50% of IA Housing, Utilities & Education
Housing and Vehicle assistance in current location
Shipment – Air & Surface
Pet shipment allowance (subject to approval and local regulation)
Destination Services
Temporary Living up to 60 days
Relocation Allowance of USD15,000 (1 payment)
Enroute Travel
Tax Services
Visa Services
***Average Cost – USD 350,000 to USD 450,000
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Localisation Policy
Only applicable to employees currently on assignment
Phased approach to provide financial support from assignee to local status.
Employee transfers onto local payroll and benefits.
2 year localisation – 100% of assignment allowances in Year one/50% in year two.
3 Year localisation – 100% of assignment allowances in Year one/66% in Year two and 33% in year three
***Average Cost – USD 750,000/1,200,000
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IT Local PlusFeatures Used for Employees who
are Non-citizens hired or transferred, on permanent basis
Provide transition support
On going Allowance for 3 Years
Benefits Allowance Base – 50% of IA
Housing, Utilities & Education, Home Leave
Housing and Vehicle assistance in current location
Shipment – Air & Surface Pet shipment allowance (subject to
approval and local regulation) Destination Services Temporary Living up to 60 days Relocation Allowance – 2 payments
of USD 15,000 on starting and 3rd anniversary day
Enroute Travel Tax Services Visa Services
***Average Cost – USD 750,000
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 12
Relocation Policy Exception Process
Core benefits should not be removed or decreased (i.e. shipment of HHG’s, temp housing, lump sum allowance)
Cash in lieu of benefits is not authorized
Exception request: direct to Relocation Leader for approval/denial
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 13
