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Cisco Global Relocation Program – Focus on Policies

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Presentation on theme: "Cisco Global Relocation Program – Focus on Policies"— Presentation transcript:

1 Cisco Global Relocation Program – Focus on Policies
Shauna Page – Global Relocation Engagement Manager - Emerging and European Markets

2 Agenda Policy types International Assignment – components and rationale International Transfer Policies Q&A

3 Relocation Types IA (International Assignment)
On Company’s Request Follow Home Benefit Plan International Medical Insurance Temporary in Nature Short Term (STIA) – 4 to 18 months Long 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

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

5 **Average Cost for a Tier (1) 2-year LTIA – USD 1,500,000
International Assignment Benefit Aligned 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

6 *** Estimated cost for IT Personal Move – USD 6,000 to USD10,000
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

7 ***Average cost – USD 12,000 to USD 25,000 + lump sum
IT Lump Sum Move Benefits Tax Services Visa Services Enroute Travel Optional (If approved) Destination Service (house hunting trip) Temporary Living up to 30 days Features 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. 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

8 IT Managed Move Features Benefits
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

9 ***Average Cost – USD 350,000 to USD 450,000
IT Returnee 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 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) ***Average Cost – USD 350,000 to USD 450,000

10 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

11 IT Local Plus Features Benefits
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

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

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