Survey Results: Global Short- Term Business Travel

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1 Survey Results: Global Short- Term Business Travel JUNE 2015 Global Benchmarking Associa'on

2 SPONSORS The Foreign Trade Council (NFTC) is the premier business organiza'on advoca'ng a rules- based world economy. Founded in 1914 by a group of American companies that supported an open world trading system, the NFTC and its affiliates now serve more than 300 member companies through offices in Washington and New York. The Global Benchmarking (IBA) provides in- house immigra'on professionals with the tools and informa'on they need to navigate the increasingly complex world of global immigra'on. Through regional chapters in the United States, Australia, APAC, La'n America and the United Kingdom, IBA par'cipants gain insight into global immigra'on trends and industry prac'ces. Berry Appleman & Leiden (BAL) is a global corporate immigra'on firm providing representa'on to employers and their personnel worldwide. Founded in 1980, the firm has offices in seven countries, and its 600 immigra'on professionals represent a wide range of companies, from some of the world s largest corpora'ons to small start- ups in emerging growth industries.

3 METHODOLOGY Global business travel is more important than ever for companies engaged in the interna'onal economy. With the need for employee mobility on the rise, companies must contend with complex visa rules and must understand the related risks of heightened scru'ny. In May 2015, the Global Immigra'on Benchmarking Associa'on (IBA) conducted a survey regarding short- term global business travel prac'ces. One hundred and fi^y companies par'cipated. The results provide valuable insight into how companies around the world manage short- term business travelers. The data can assist businesses in benchmarking their own policies and understanding industry prac'ce. The survey was widely distributed to IBA members and the membership of the survey s sponsoring partners. The survey was open to all companies with employees who travel interna'onally for business purposes. Respondents came from a wide range of industries, including: technology, recrui'ng, entertainment, energy, communica'ons, biotechnology, legal, research, educa'on, consul'ng, travel, reloca'on, finance, design, tex'les, manufacturing, electronics, so^ware, banking, construc'on, engineering, mechanics, arts, hospitality, pharmaceu'cals, automo've, commerce, health, and goods and services. The survey was comprised of seventeen ques'ons that covered areas central to short- term business travel policy and prac'ce.

4 KEY FINDINGS Over three quarters of the respondents reported increased scru'ny of business travelers in the past year. One third of the companies reported that a short- term business traveler had been denied entry into a country. Although about 60% of companies reported that their employees take over 500 interna'onal business trips annually, only one third of all respondents has a wricen business visa travel policy. The overwhelming majority of respondents (77 percent) would like to have improved capability to track business visa travel. Today, only one in five global mobility programs track all business visa travel. Authoriza'on for business travel is generally approved by the business unit or employee manager in the employee s home country. Companies then rely on a variety of resources (e.g. law firm, visa processing company, internal resources) to process the business visas. The majority of companies use an electronic tool, outside counsel, a visa services company, or internal resources to evaluate travel requests for permissibility in the host country, but over one third of companies have no formal approach to assess host country business travel requirements. Companies worry about a number of risks when it comes to business travel, including employees using business visas to circumvent work visa obliga'ons, viola'ons of tax laws, the inability of their company to track length of trip stays, and employees misrepresen'ng their business travel ac'vi'es.

5 Approximately how many business trips to another country are taken annually by employees of your company? Less than % 501 to 1, % 1,001 to 5, % More than 5,000 26% Prefer Not to Answer 17.3%

6 Have your business travelers experienced any of the following in the past year (check all that apply)? Increased scru'ny by immigra'on authori'es at port of entry 78.8% Employee(s) denied entry into a country Employee(s) delayed entry into a country 33.3% 45.5% Inves'ga'on or inquiry by government authori'es regarding business 6.6% 17.7%

7 What do you consider to be the most significant risk(s) to your business traveler program (check all that apply)? Employees misrepresen'ng business travel ac'vi'es Inability of company to track employee length of stay in country Viola'ons of tax laws Employees using business visas to circumvent work visa 54.3% 56.1% 57% 62.2% No risks at this 'me 8.7% 7%

8 What would you like to change about your business visa policy or process (check all that apply)? Fewer inquiries from emloyees or business units about business visas Becer coordina'on between internal departments Improved tracking of business visa travel Increased internal compliance with policies or processes Easier process to ini'ate business visa travel U'liza'on of online tool regarding business visa travel requirements 13% 6.9% 38.2% 34.7% 54.7% 62.6% 77.3%

9 Does your mobility program track or monitor all business visa travel? Yes 20.6% No 48% No, but our tax provider monitors days in country 3.3% 8.6% Prefer Not To Answer 19.3%

10 Who in your company must authorize ini'al business visa travel (check all that apply)? There is no requirement to obtain advance authoriza'on 23.1% Legal department 4.9% Human Resources or Global Mobility in host country Human Resources or Global Mobility in home country Business Unit or Employee Manager in host country 11.5% 15.7% 19% Business Unit or Employee Manager in home country 54.5% It depends on the country 19.8% 1.6%

11 How does your company assess whether business travel is permiced under the laws of the host country (check all that apply)? We use an electronic tool to evaluate eligibility 11.6% We don't have a formal assessment approach 37.5% All travel requests are evaluated by our outside legal counsel All travel requests are evaluated by an outside visa services We assume all trips of less than 30 days qualify as a business visit 12.5% 13.3% 16.6% 2.5% 28.3%

12 Who in your company is authorized to provide business visa suppor'ng documenta'on (e.g. client lecers) to an employee or a vendor s employee? There is no formal policy or process Legal department Human Resources or Global Mobility Business Unit or Employee Manager Prefer Not to Answer 12% 4.6% 8.6% 1.3% 6.6% 20% 46.6%

13 Is there a requirement for short- term business travelers to use your company s travel services? Yes, always 57.9% Yes, most of the 'me 17.3% No 0% 1% 4.6% Prefer Not to Answer 19.3%

14 Who does your company use to process business travel visas (check all that apply)? Law firm 41.1% Visa processing company 61.3% Company handles internally 45.3% Employee handles on his or her own 36.9% 1.6% 8.4%

15 Do you have a wricen global business visa travel policy? Yes 35.3% No 56% Prefer Not to Answer 8.6%

16 Why doesn t your company have a wricen global business visa travel policy (check all that apply)? Not a business/legal priority Uncertainty about what the policy should say or do 26.1% 27.3% Too difficult to implement Internal disagreement about policy Our company does not favor formal policies 13% 9.5% 7.1% 16.6% 39.2%

17 Does your policy limit the number of trips that a business visa traveler may make to a specific des'na'on country in a year? Yes 4.6% No 21.3% 4.6% Prefer Not to Answer 69.3%

18 Does your policy limit the length of 'me a business visa traveler may remain in the country on each trip (check the answer that is most similar to your policy)? No It depends on the des'na'on country Employee may not remain for more than 15 days Employee may not remain for more than 30 days Employee may not remain for more than 60 days Employee may not remain for more than 90 days Employee may not remain for more than 180 days Prefer Not to Answer 8.6% 10% 0% 3.3% 1% 2% 1% 1.3% 2.6% 70.6%

19 Does your company allow a business visa traveler to extend or change his or her visa status while in country? Yes 6.6% No 14% There is no formal policy 30% It depends on the country 22.6% 6% Prefer Not to Answer 20.6%

20 Does your company bill or seek reimbursement from clients for employee services rendered while on business visas? Yes 14.6% No 23.3% Company policy does not address 14% 17.3% 9.3% Prefer Not to Answer 21.3%

21 Does your company impose any restric'ons or compliance requirements on vendors and their use of business visitor visas when working with your company? Yes No I do not know 22.6% 27.3% 26.6% 1.3% No Answer 22%

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