2. Assignments into New & Challenging Locations

3.  Understanding the issues  Providing support  Alternative options  Proper career planning Agenda Topics

4. Understanding the Issues

5. We are sending someone to Myanmar to start up operations there. The assignee has already agreed to take the assignment. It’s a new location for us. Make it happen! Aaaaaah!

6. Internal Security Department New country setup protocol or a cross functional team Vendors who can help with immigration, tax, etc.

7. Mobility Policy: Many “expat goodies” and soft services were eliminated during the recession and policies were adopted that were not well suited to challenging locations. Does your policy have Hardship? R&R? Cultural Training? DSP? Duty of Care: Evacuation and contingency plans are critical. Reputational and employee risk if not properly planned. Mobility Framework: Recruitment and retention issues will occur if your mobility framework is not adapted to meet the needs of challenging locations. Flexibility is important.

8. Lack of International Schools Security Concerns Inadequate Medical Care Substandard Housing Frequently changing immigration or tax laws Limited Goods and Services Small or no Expatriate Community Remoteness Boredom Political Instability What makes a location challenging?

9. Addressing Challenges Assignee Family Business Company Perception of risk for taking assignment to a less “visible” location Recognition for taking an assignment to a difficult location Perception of risk for taking assignment to a less “visible” location Recognition for taking an assignment to a difficult location Knowing when to allow or not to allow for accompanied status Providing support to accompanied or unaccompanied families Knowing when to allow or not to allow for accompanied status Providing support to accompanied or unaccompanied families Need to attract talent to the host location Balancing operational requirements with frequent leaves Developing markets may not have funds to support assignment Need to attract talent to the host location Balancing operational requirements with frequent leaves Developing markets may not have funds to support assignment Coordinating with security department Need to focus on duty of care Retaining employee in talent pipeline Coordinating with security department Need to focus on duty of care Retaining employee in talent pipeline

10. Classifying Challenging Locations International School C C Diverse and large expatriate community Only one or limited international option Security department recommends driver or other precautions Local routine care is adequate; major care not available Limited international quality housing available Some international brands unavailable Moderate size expatriate community; may be of limited diversity No accredited schools Security department recommends major precautions; guards Limited clinic services Only substandard or temp. accommodation available Basic goods only Very limited expatriate community Security Medical Care Housing Shopping Expatriate Community Variety of accredited international schools Security risk low; no additional company support required Security risk low; no additional company support required Top quality medical care; all urgent needs met Wide range of international quality housing available All goods and services available

11. Alternative Approaches

12. ABCABC A, B, and C Locations Standard Long Term Assignment Benefits -PLUS - Additional Provisions to meet Host Location Needs Standard Long Term Assignment Benefits -PLUS - Additional Provisions to meet Host Location Needs Alternate Mobility Approach Tailoring the mobility package to host location conditions adds to the safety and success of an assignment. Flexibility is important! Tailoring the mobility package to host location conditions adds to the safety and success of an assignment. Flexibility is important!

13. PRE-ASSIGNMENT VISIT  Allow the assignee to visit the location before moving; help set the right expectations SETTLING IN SERVICES  Ensure the assignee and family have adequate support from DSP; extra days may be needed MEDICAL  Assignee and family should have a medical check prior to travel  Evacuation insurance should be in place INVOLVE SECURITY  Corporate security department should review host location and approve residential areas  Evaluation of need to provide car and driver, guard, or other security measures EMERGENCY PLAN  Ensure you have an evacuation plan in place and assignee knows what to do in case of emergency and what is covered for self service HARDSHIP  Hardship should be offered and tailored to host location  Ensure your scale is high enough: 40% is becoming a more common max among non-Oil companies; among Oils, up to 80% REST & RELAXATION LEAVE  An R&R benefit should be part of the Standard LTA offerings for challenging locations  Up to two trips per year to a nearby location Resident Assignment in a “B” Location

14. Alternative Approaches for “C” locations Unaccompanied: Employee resides in host location, family stays behind at home Additional home leaves provided Commuter: Employee travels to host location and returns home weekly or monthly Accompanied, Proxy: Worksite and assignment location are different, but both in an international location Family lives in assignment location and employee travels to worksite during week Rotator: Assignee alternates between a scheduled amount of time working when in the host location and not working when at the home location

15. Choosing the Right Assignment Package Are host location conditions adequate to support a fully resident long term assignment? YES NO Is there adequate schooling? YES NO Standard LTA Unaccompanied Assignment Do operational requirements require full time staffing of position? YES NO 1 month on 1 month off Rotation 1 month on 1 month off Rotation 6 weeks on 2 weeks off Rotation 6 weeks on 2 weeks off Rotation Is there schooling in a nearby city? YES NO Proxy Assignment

16. Joe Accountant  Needed in Lagos for 2 year assignment  Spouse is a high income earner in UK  Has a special needs child and proper education not available in Lagos Case I: Assignment from UK to Lagos Unaccompanied assignment: 4-6 Home Leaves a year to visit with family No R&R Standard Lagos hardship payment Host Location allowances based on single status No housing deduction (Norm) Unaccompanied assignment: 4-6 Home Leaves a year to visit with family No R&R Standard Lagos hardship payment Host Location allowances based on single status No housing deduction (Norm)

17. Julie Plant Manager  Needed in Samara for a 5 year assignment  Has two children  No international school in Samara, but Samara is 2 hour flight from Moscow Case II: Assignment from Australia to Samara, Russia Proxy assignment: Family on assignment in Moscow Assignee commutes to Samara on Monday, returns on Friday Hardship premium based on Samara COLA and host housing based on Moscow Assignee’s lodging and transportation covered in Samara Proxy assignment: Family on assignment in Moscow Assignee commutes to Samara on Monday, returns on Friday Hardship premium based on Samara COLA and host housing based on Moscow Assignee’s lodging and transportation covered in Samara Samara Moscow

18. Sam Engineer  Needed in UAE to complete 12 month construction project  Construction site in remote field location  Camp environment; no local housing, shopping, recreation Case III: Assignment from US to a Remote Construction Site in UAE Rotator Assignment: Employee works 6 weeks on, and is home 2 weeks not working Hardship premium for days spent in UAE only No cost of living support as daily needs provided in camp Rotator Assignment: Employee works 6 weeks on, and is home 2 weeks not working Hardship premium for days spent in UAE only No cost of living support as daily needs provided in camp

19. Alternative Approach Watch-outs Unaccompanied: COST: If the assignee has a large family, unaccompanied status may be less expensive because education costs would not be paid and the housing budget would be less. But if the assignee has a small family, the cost of extra home leaves and potential additional taxes may cause an unaccompanied assignment to be more expensive than an accompanied one FAMILY: Separation from family for extended periods may put strain on the assignee and family POLICY: If rationale for unaccompanied status not clearly stated, policy may be abused Unaccompanied: COST: If the assignee has a large family, unaccompanied status may be less expensive because education costs would not be paid and the housing budget would be less. But if the assignee has a small family, the cost of extra home leaves and potential additional taxes may cause an unaccompanied assignment to be more expensive than an accompanied one FAMILY: Separation from family for extended periods may put strain on the assignee and family POLICY: If rationale for unaccompanied status not clearly stated, policy may be abused Accompanied, Proxy: TAXES: The worksite and the resident location should, preferably, be within the same country. If in two separate countries additional and complicated tax liabilities may arise. Accompanied, Proxy: TAXES: The worksite and the resident location should, preferably, be within the same country. If in two separate countries additional and complicated tax liabilities may arise. Rotator: POLICY: A separate policy is needed to govern this assignment type TAX: Employee may not be able to break home residency; additional tax costs may accrue Rotator: POLICY: A separate policy is needed to govern this assignment type TAX: Employee may not be able to break home residency; additional tax costs may accrue

20. Proper Career Planning

21. The biggest complaints from assignees in challenging locations are: Out of Sight, Out of Mind When I returned from assignment, the valuable skills I learned working in a difficult location were not used or valued. I am worried about finding my next job in the company; it is hard to network while I am here. This assignment location is not a key center for the company; I feel like I am missing out on opportunities. Proper career planning is critical for assignments to new or challenging locations and can serve as more of an incentive than Hardship or other cash allowances Proper career planning is critical for assignments to new or challenging locations and can serve as more of an incentive than Hardship or other cash allowances I found it challenging to settle into the assignment because I did not receive adequate company support.

22. Talent Management Following the assignment lifecycle, there are three phases of talent management: Pre-assignment Candidate assessment & selection On-assignment Mentoring, monitoring assignee engagement, career planning Post-assignment Job placement, utilizing skills, tracking attrition

23. Targeting employees with “Global Mindset” and ability to adapt culturally Setting assignment goals to drive success Identifying potential roles for the next job within the company Rewarding assignment with future career growth International assignment as part of a well developed career plan Assignee mentoring Career Planning