1. Mercer webcast
April 2011
Latest Trends in International
Assignment Policies and
Practices
James O'Neill, Chicago
Dan Mikes, Chicago
www.mercer.com

2. Mercer’s 2010 Worldwide Survey of International Assignment
Policies and Practices
 1,000+ Worldwide participants
– 480 Americas
– 103 AsiaPac
– 239 EMEA
 Longest continually running survey of it’s kind
 Covers all major areas of global mobility policy & practices
 Data cuts:
– 2010 Worldwide & Regional Cuts
– 2008 Worldwide & Regional Cuts
Mercer webcast 1

3. Number of expatriates (2010)
1000 Average
860 Median
800
600
400
257 258
200 127
26 20 24 41
0
WW Americas AsiaPac EMEA
Mercer webcast 2

4. Changes implemented in last two years
60.0%
Americas 2010
Americas 2008
50.0% AsiaPac 2010
AsiaPac 2008
EMEA 2010
40.0% EMEA 2008
34.8%
33.3%
31.3%
25.9%
25.6%
30.0%
25.3%
24.1%
24.0%
23.0%
22.8%
22.0%
21.7%
21.0%
20.0%
19.0%
18.0%
20.0%
14.0%
12.0%
10.0%
0.0%
Decreased use of expatriates Heavier reliance on localizing Increased use of efficient cost-
em ployees of-living allow ances
Mercer webcast 3

5. Changes implemented in last two years
60.0% WW 2010
WW 2008
Americas 2010
50.0% 48.0%
Americas 2008
44.0% 44.0%
42.0% AsiaPac 2010
AsiaPac 2008
40.0% 36.8%
34.3% EMEA 2010
32.8% EMEA 2008
31.3%
30.0%
20.0%
10.0%
0.0%
None of the above
All potential choices were decreasing use of expatriates, reduced incentives offered, reduced vendor fees, heavier reliance on localizing
employees, increased use of efficient cost-of-living allowances, and changed tax policy.
Mercer webcast 4

6. Global mobility policy elements under review
Worldwide & Americas
WW Americas EMEA Asia Pac
2010 2010 2010 2010
None 12.2% 12.7% 9.4% 10.8%
Global policy development 39.1 42.6 40.6 33.3
Intraregional policy development 20.0 23.7 20.1 26.5
Policy development for assignments to HQ country 13.7 13.1 8.1 12.7
Short-term assignment policy development 34.3 40.4 39.7 35.3
Multi-tier policy development 28.3 35.1 28.2 32.4
Delivery of expatriate compensation 23.6 23.9 23.9 30.4
Expatriate localization 31.3 35.7 32.9 44.1
Implementation of cost-effective COLA 21.1 18.9 23.1 33.3
Foreign service and/or mobility premiums 20.1 17.4 17.5 14.7
Hardship premiums 21.8 13.1 19.7 24.5
Housing policies 26.9 29.5 28.6 31.4
Tax equalization 22.8 26.5 23.5 32.4
Car practices 15.2 15.1 15.0 21.6
Overall cost-effectiveness 45.8 50.1 44.0 43.1
Overall competitiveness 29.5 38.7 24.4 36.3
Program administration 29.9 34.6 26.1 35.3
Mercer webcast 5

7. Use of expatriates
70.0% WW 2010 70.0% Americas 2010
60.0% WW 2008 Americas 2008
55.0% 60.0%
52.0%
50.0% 47.1% 47.4%
50.0%
40.0% 40.0%
27.6% 28.6%
30.0% 25.3% 25.0% 30.0% 25.0% 24.0% 23.0%
20.0%
20.0% 20.0%
10.0% 10.0%
0.0% 0.0%
Increasing Decreasing No Change Increasing Decreasing No Change
70.0% AsiaPac 2010 70.0% EMEA 2010
AsiaPac 2008 61.0%
60.0% 60.0% EMEA 2008
52.0%
50.0% 44.1% 50.0% 46.8%
40.0% 34.3% 40.0%
30.0%
28.8%
30.0% 30.0% 24.5% 23.0%
21.6%
18.0%
20.0% 20.0% 16.0%
10.0% 10.0%
0.0% 0.0%
Increasing Decreasing No Change Increasing Decreasing No Change
Mercer webcast 6

8. Assignment length trends
70.0% WW 2010 70.0% Americas 2010
60.0% WW 2008 Americas 2008
54.4% 60.0%
52.0%
51.5%
48.0%
50.0% 50.0%
40.0% 40.0%
29.0%
28.0% 28.4%
30.0% 24.8% 30.0%
16.8% 16.0%
20.0% 20.0% 14.1%16.0%
10.0% 4.0% 4.0%
10.0% 6.1% 7.0%
0.0% 0.0%
More short More long No change Don't know More short More long No change Don't know
term term term term
70.0% AsiaPac 2010
70.0% EMEA 2010
60.0% AsiaPac 2008
52.0% 60.0% EMEA 2008
51.0% 52.4%
50.0% 50.0%
50.0%
40.0%
40.0% 36.0%
27.5% 29.2%
30.0% 26.0%
30.0%
21.0%
17.6%
20.0% 20.0% 15.5%
11.0%
10.0% 3.9% 10.0%
2.0% 3.0% 4.0%
0.0% 0.0%
More short More long No change Don't know More short More long No change Don't know
term term term term
Mercer webcast 7

9. Highest use of expatriates – top five locations
Inbound
100.0%
100.0%
WW
Americas
75.0%
75.0%
63.7%
60.1%
50.0% 41.3% 50.0% 43.0%
25.0% 25.0% 18.0%
15.1% 15.1% 17.3% 17.0%
12.7%
0.0% 0.0%
China USA India UAE Brazil China USA UAE India Brazil
100.0%
AsiaPac 100.0%
EMEA
73.9%
75.0%
75.0%
57.3%
50.0% 46.9%
50.0%
21.6% 27.1%
25.0% 18.2% 18.2%
25.0%
21.9%
18.8%
13.6%
0.0% 0.0%
China USA India Australia Japan China USA UAE India Brazil
Mercer webcast 8

10. Highest use of expatriates – top five locations
Outbound
100.0% 100.0%
WW Americas
84.4%
75.0% 75.0%
55.2%
50.0% 50.0%
29.4%
22.3%
25.0% 17.0% 25.0% 17.9%
14.1% 13.4% 12.1% 11.3%
0.0% 0.0%
USA Japan India Canada Australia USA Canada India Australia China
100.0%
AsiaPac 100.0%
EMEA
75.0%
75.0%
46.9% 51.7%
50.0% 40.6% 50.0%
29.7% 31.9%
21.9%
25.0% 25.0% 18.1%
15.5% 14.7%
7.8%
0.0% 0.0%
Australia USA India China Japan USA India Australia China Canada
Mercer webcast 9

11. Compensation approach for global assignment
80.0% WW
71.3%
69.3%
Americas
67.2%
70.0% AsiaPac
EMEA
60.0%
52.3%
50.0%
40.0%
27.9%
30.0%
16.3%
14.5%
14.1%
20.0%
13.0%
12.2%
12.8%
7.0%
7.0%
6.6%
6.5%
5.8%
5.6%
5.6%
5.1%
5.1%
10.0%
4.7%
3.7%
3.8%
3.8%
3.5%
3.0%
2.8%
2.0%
0.0%
Hom e based Headquarters Host based Higher of Hom e plus Host plus Other than
balance sheet based balance approach hom e or host approach approach above
approach sheet approach
approach
Mercer webcast 10

12. Delivery of expatriate remuneration
46.5%
44.7%
WW
40.5%
50.0%
Americas
34.6%
31.5%
40.0% AsiaPac
27.6%
EMEA
21.9%
21.9%
19.4%
30.0%
19.0%
18.3%
16.5%
16.2%
14.6%
20.0%
9.9%
6.2%
4.9%
2.5%
1.9%
1.5%
10.0%
0.0%
Pays entirely in hom e Pays entirely in host- Pays in third-country Splits pay betw een Handles on a case-by-
currency country currency currency hom e- and host- case basis
country currencies
Mercer webcast 11

13. Split pay
44.8% WW
44.4%
50.0%
Americas
34.8%
31.5%
40.0% AsiaPac
26.8%
24.6%
22.9%
EMEA
19.7%
30.0%
17.2%
17.2%
15.5%
15.3%
14.8%
13.4%
13.3%
12.2%
10.0%
20.0%
8.7%
7.8%
5.2%
10.0%
0.0%
Splits according to Splits based on Splits according to Splits based on tax Splits based on
expatriate’s w ishes consultants’ com pany policy considerations governm ent
recom m endations regulations
Mercer webcast 12

14. Provision of incentive premium
WW Americas
27.80%
36.70%
42.80%
48.50%
20.50%
19.50%
16.80%
13.50%
AsiaPac EMEA
On-going paym ent
(foreign-service
37.10% prem ium )
40.20% 36.90% 37.40%
Lum p sum am ount
(m obility prem ium )
Yes, other
Does not provide
23.70% 17.50%
17.60% 18.90%
Mercer webcast 13

15. Calculation of incentive payments
Foreign Service Premium WW Americas AsiaPac EMEA
Percentage of base pay 62.0% 73.5% 57.5% 58.8%
- Average % 17.3 14.2 14.7 15.5
Flat amount 11.3% 2.9% 7.5% 2.4%
- Average amount ID $3,010 ID ID
Mobility Premium WW Americas AsiaPac EMEA
Percentage of base pay 44.2% 53.3% 23.1% 37.2%
- Average % 11.8 11.5 ID 10.4
Flat amount 11.7% 9.8% 0.0% 16.3%
- Average amount $6,386 $7,438 ID $4,983
Mercer webcast 14

16. Tax approaches
100.0% WW 2010 100.0% Americas 2010
WW 2008 83.1%85.0% Americas 2008
80.0%
76.1%
75.0% 75.0%
50.0% 50.0%
25.0% 25.0%
4.5% 5.0% 6.5% 5.0% 4.8% 4.0%
3.7% 4.0%
0.0% 0.0%
Tax equalize Tax protect Laissez Faire Tax equalize Tax protect Laissez Faire
100.0% AsiaPac 2010 100.0% EMEA 2010
AsiaPac 2008 EMEA 2008
72.4%
75.0% 70.0% 75.0%
65.0%
61.6%
50.0% 50.0%
25.0% 25.0%
13.8%
6.1% 8.0% 8.2% 6.0% 6.9% 9.0% 8.0%
0.0% 0.0%
Tax equalize Tax protect Laissez Faire Tax equalize Tax protect Laissez Faire
Mercer webcast 15

17. Expatriate housing policies
Americas, AsiaPac, and EMEA
Americas 2010
80.00%
Americas 2008
AsiaPac 2010
65.0%
60.4%
AsiaPac 2008
55.3%
60.00% EMEA 2010
50.00%
EMEA 2008
49.0%
44.60%
37.60%
33.00%
40.00%
31.0%
26.8%
20.0%
16.8%
15.8%
14.00%
12.00%
14.0%
20.00%
10.2%
8.0%
8.0%
5.70%
7.7%
6.9%
6.0%
3.00%
0.00%
Com pany pays housing Com pany pays housing Com pany pays a housing Com pany m akes no
costs but deducts hom e- costs and does not deduct differential contribution to foreign-
country offset as a hom e housing offset housing costs
em ployee’s contribution (free assignm ent housing)
Mercer webcast 16

18. Expatriate housing policies
Worldwide
80.0%
WW 2010
WW 2008
60.0%
46.0%
43.3%
41.4%
39.0%
40.0%
20.0%
11.0%
9.0%
6.3%
4.0%
0.0%
Com pany pays housing Com pany pays housing Com pany pays a housing Com pany m akes no
costs but deducts hom e- costs and does not deduct differential contribution to foreign-
country offset as a hom e housing offset (free housing costs
em ployee’s contribution assignm ent housing)
Mercer webcast 17

19. Housing: further analysis (of Americas cut)
Provides Home Sales Provides Property Provides
Joint Provides Both
Assistance¹ Management² Neither
Distribution
(8%) (21%) (40%) (30%)
Pays host housing costs and
withholds norm 4% 12% 23% 6%
(44%)
Pays host housing costs and
does not withhold norm 3% 8% 10% 16%
(37%)
Provides housing differential
1% 2% 6% 4%
(12%)
Makes no contribution to host
housing costs 0% 0% 1% 4%
(6%)
1) Provides home sales assistance, but not property management
2) Provides property management, but not home sales assistance
Mercer webcast 18

20. Housing: further analysis (of Americas cut)
Conditional Provides Home Provides Property Provides
Provides Both
Distribution Sales Assistance¹ Management² Neither
Pays host housing costs and
witholds norm
9% 26% 52% 14%
(44%)
Pays host housing costs and
does not withhold norm
9% 21% 27% 44%
(37%)
Provides housing differential
8% 15% 47% 30%
(12%)
Makes no contribution to
host housing costs 4% 7% 21% 68%
(6%)
1) Provides home sales assistance, but not property management
2) Provides property management, but not home sales assistance
Mercer webcast 19

21. Spousal support
Provides Spousal Support
60.0% 56.5% 55.0%
53.1%
47.1% 46.0% 49.0%
39.0%
40.0% 32.0%
2010
2008
20.0%
0.0%
WW Americas AsiaPac EMEA
Mercer webcast 20

22. Usage of efficient purchaser indices for COLA
66.70%
80.00%
70.00%
54.70%
49.20%
60.00%
44.90%
43.50%
42.30%
WW
36.60%
50.00%
31.90%
Am ericas
40.00%
AsiaPac
30.00% EMEA
10.10%
20.00%
7.40%
7.30%
2.30%
2.90%
1.00%
2.30%
1.80%
1.40%
1.40%
0.00%
0.00%
10.00%
0.00%
From the start of From the start of After a transition Handles on a case- No
the assignm ent the assignm ent period by-case basis
w ith an additional
protection
allow ance
Average number of months:
• WW: 22.5
• Americas: 7.1
• AsiaPac: ID
• EMEA: 20.3
Mercer webcast 21

23. Market basket items modification
70.0%
61.3% WW
60.7%
Americas
60.0% 55.2%
53.5%
AsiaPac
EMEA
50.0%
38.7%
35.2%
40.0%
27.0%
30.0%
23.1%
21.1%
20.2%
16.7%
16.9%
20.0%
12.4%
11.5%
8.5%
6.4%
10.0%
0.0%
Does not m odify m arket Transportation Furnishings Medical
basket
Main reason for modifying the market basket items is to avoid duplication of payment of items already included in policy.
Mercer webcast 22

24. Transportation allowance
Americas, AsiaPac, and EMEA
Americas 2010
Middle Management and Above
Americas 2008
AsiaPac 2010
45.0%
AsiaPac 2008
39.0%
38.2%
EMEA 2010
40.0%
36.0%
35.0%
35.0%
EMEA 2008
33.50%
33.30%
35.0%
31.0%
30.9%
29.20%
30.0%
27.50%
30.0%
25.0%
18.60%
18.20%
17.0%
20.0%
15.0%
13.70%
14.0%
11.00%
15.0%
11.0%
11.0%
10.0%
9.7%
9.0%
9.0%
8.10%
6.90%
10.0%
7.0%
6.2%
6.0%
5.0%
0.0%
Alw ays provide Provide, if expatriate had Provide, but only w hen Provide, but only in Not provide
use of a com pany car at job requires a car countries w here it is
the hom e location local practice for
com parable positions
Mercer webcast 23

25. Transportation allowance
Americas, AsiaPac, and EMEA
Americas 2010
Other Expatriates
Americas 2008
AsiaPac 2010
40.70%
45.00%
41.0%
AsiaPac 2008
EMEA 2010
40.00%
36.0%
EMEA 2008
33.30%
31.90%
31.40%
35.00%
30.50%
31.0%
30.0%
30.00%
25.0%
21.30%
25.00%
21.0%
19.50%
20.0%
18.00%
18.0%
17.00%
16.70%
20.00%
16.0%
15.0%
12.70%
13.0%
11.90%
12.0%
15.00%
10.60%
8.0%
10.00%
6.0%
4.40%
5.0%
5.00%
1.00%
0.00%
Alw ays provide Provide, if expatriate had Provide, but only w hen Provide, but only in Not provide
use of a com pany car at job requires a car countries w here it is
the hom e location local practice for
com parable positions
Mercer webcast 24

26. Transportation allowance
Worldwide
45.0% Middle Management and Above
37.0%
40.0%
34.1%
35.0%
30.0%
29.6%
30.0%
25.0%
20.0%
15.7%
13.0%
12.6%
15.0%
11.0%
8.0%
8.0%
10.0%
5.0%
0.0%
Always provide Provide, if expatriate had use Provide, but only when job Provide, but only in Not provide
of a company car at the home requires a car countries where it is local
location practice for comparable
positions
Mercer webcast 25

27. Transportation allowance
Worldwide
45.0%
Other Expatriates
40.0%
31.7%
35.0%
31.0%
30.0%
30.0%
25.9%
25.0%
19.2%
18.5%
18.0%
20.0%
15.0%
15.0%
10.0%
5.0%
4.7%
5.0%
0.0%
Always provide Provide, if expatriate had use Provide, but only when job Provide, but only in countries Not provide
of a company car at the home requires a car where it is local practice for
location comparable positions
Mercer webcast 26

28. Questions and contacts
Questions
James O’Neill
Chicago
Please type your questions in the web Q&A and we will do our best to
+1 312 917 9683 answer as many questions as we have time for.
james.oneill@mercer.com
To submit a question simply click on the Q&A link at the top of your
screen. A box will appear on the screen in front of you. Simply type in
Dan Mikes your questions and then click on the ‘ASK’ button.
Chicago
+1 312 917 9441
daniel.mikes@mercer.com
www.mercer.com/webcasts
View past recordings and sign up for upcoming webcasts
Mercer webcast 27

29. www.mercer.com