Graduates 4 International Growth 2015 A resource for market development Reference Document 1. Background The “Graduates 4 International Growth” (G4IG) initiative supports Irish based companies to identify, employ and train graduates in international business development. 2. Objective of G4IG The objective of G4IG is to assist companies with ambitious growth plans in key markets to: Employ a graduate entry level market research resource for the purpose of completing an overseas market research project; Train and develop the graduate in international business development with the aim of providing future business development capability for the company; Expedite the international sales growth of Irish SMEs. For graduates, the programmes: Provides excellent placement opportunities; Provides a practical graduate development opportunity through the study of a Postgraduate Diploma in International Business Development with the IMI; and Demonstrate that EI recognises the need to broker graduates with suitable placement opportunities. Companies that are supported will create one or more entry level graduate market research positions. The graduate employed will complete a project related to the company’s growth plan in an overseas market. Graduates will work within an infrastructure that supports them, both in their development and in the completion of the project, for the duration of the programme. Graduates identified as having the potential to become international business development executives will be employed by companies and provided with a structured means of developing new skills while completing a Postgraduate Diploma in International Business Development. G4IG is 18 months in duration, with participants based in an overseas market for a minimum 1 of six months and up to 12 months. G4IG has a strong focus on action learning and project work, coupled with education modules on relevant topics such as ‘strategic selling’, ‘international sales & buying process’ and ‘financing international growth’. 3. Overview of G4IG Companies that intend to apply for funding under G4IG should contact their Enterprise Ireland Development Advisor in advance of submitting an online application for funding. Enterprise Ireland has designed and developed a dedicated website for its graduate offers and initiatives called www.gradhub.ie . To support client companies to attract and recruit graduates, companies can advertise their opportunities via this website. Enterprise Ireland will also provide a recruitment system for clients to assist them in screening, shortlisting and selecting candidates for their opportunities. The client is asked to consider the visa requirements for the market in which they propose to send the graduate as the visa arrangements are the clients’ responsibility. G4IG Graduate employment cannot commence until Enterprise Ireland has confirmed that the company’s application has been approved, and no later than the first day of the Postgraduate Diploma in International Business Development. 4. Funding Funding for G4IG will be from Enterprise Ireland existing budgets. Projects submitted by eligible companies will be grant-aided to receive full or partial funding available under G4IG subject to: A Company De Minimis Limit of €200,000 over 3 fiscal years (i.e. have an available De Minimis balance - please discuss with your Enterprise Ireland Development Adviser). The number of projects, submitted by a company, approved for support. Large companies can only be supported for one graduate to a maximum of 50% of agreed eligible expenditure up to a maximum of €30K. Additional projects may be partially supported (Training Grant only). SMEs can only be supported for two graduates to a maximum of 50% of agreed eligible expenditure up to a maximum of €30K per graduate. Additional projects may be partially supported (Training Grant only). All companies must identify a suitable company mentor. G4IG is administered under De Minimis. Where companies have exceeded their De Minimis limits, they will not be eligible for the employment grant rates outlined in Section 11. 2 5. Legal Basis The legal basis for G4IG is Section 25 of the Industrial Development Act, 1986, as amended, and Section 7 of the Industrial Development Act, 1998. 6. State Aid Basis The State Aid basis is Aid under De Minimis Aid – EC 1998/2006. 7. Applicant Eligibility 7.1 Company Applicant Eligibility Eligible companies G4IG is open to all manufacturing and internationally traded services companies1. In addition to the above, companies must satisfy all of the following criteria: Have a minimum of 10 employees; Turnover of at least €1 million; Be generating sales for at least 2 consecutive years. Ineligible companies: Food companies and/or food ingredient companies with graduate projects targeting foods for human consumption, or horticulture companies, are ineligible. Bord Bia provides alternative programmes for graduates in this area. Companies who have received High Potential Start Up Funding in the past 3 years. 7.2 Graduate Applicant Eligibility Eligible graduates G4IG is open to graduates in all disciplines: Seeking graduate entry level market research positions; Willing to relocate to an overseas market, as advised by participating companies, for a minimum of six months and up to 12 months: Have a recognised undergraduate degree not less than Level 8 (minimum grade 2:2) on National Vocational Qualifications Framework, or recognised equivalent, or a postgraduate degree not less than Level 9 of the National Vocational Qualifications Framework, or recognised equivalent; Have been awarded that qualification in 2013, 2014 or 2015; 1 Traded services are defined under the Industrial Development Act 1986 and Industrial Development Services Order 2010 (SI No. 81 2010) see http://www.enterprise-ireland.com/en/About-Us/Our-Clients/Eligibility-criteria.html 3 Have a valid work permit to work in Ireland (if required) to cover the 6 month period in which the Diploma in International Business Development Modules will take place. Where language competency is required (outside of English speaking markets), graduates will need to illustrate appropriate fluency. Appropriate language capability is deemed to be (1) equivalent of the language component in a mixed undergraduate degree, i.e. marketing and languages or (2) a native speaker. Final assessment of academic eligibility will rest with the IMI Registrar’s office. Ineligible graduates: Graduates who cannot provide evidence of having reached the required academic standard on the National Vocational Qualifications Framework or demonstrate equivalence; Graduates/Postgraduates from a graduating year other than 2013/2014/2015 Graduates who do not at time of application have a valid work permit to work in Ireland. 9. Project Eligibility Projects eligible for consideration must meet the following criteria: Are submitted by eligible companies; The project is part of the strategic development plan of the company in international markets; The project is of sufficient size to require the creation of an entry level graduate market research position; The project will require the graduate to be located for a minimum of six consecutive months and up to 12 months in an overseas market. The required overseas period will commence six months after the graduate commences the Postgraduate Diploma in International Business Development. The company clearly demonstrates that it has an appropriate infrastructure to enable the graduate to fulfil the aims of the programme. Eligible Activities within the Project Eligible activities Market research activities against a specific project in a specific market that is aligned with the company’s overall strategic development plan. Market research for: a new product in a new market a new product in a existing market 4 an existing product in a new market Activities that support the development of the graduate specifically in relation to the graduate attaining the Postgraduate Diploma in International Business Development. Ineligible Activities Activities relating to foods for human consumption or horticulture. Investigations on the feasibility of expanding (either solely or primarily) domestic market activities. Activities relating to export aid which includes, for example, any support towards the setting up of an overseas office, the setting up of a distribution network, or any costs which could subsidise the unit costs of the final product or service. 10.Eligible Expenditure There are two eligible expenditure categories: employment costs and training costs. 10.1 Eligible Company Employment Costs: Eligible company employment costs are costs directly associated with the payment of a salary to a graduate, and are capped at a maximum with no distinction on market destination: Eligible company employment costs will vary depending on the size of the company: Large companies are eligible to receive funding support, in the form of an employment grant, for one graduate only up to 50% of eligible expenditure to a maximum of €60,000 per graduate; SMEs are eligible to receive funding, in the form of an employment grant, for up to two graduates, up to 50% of eligible expenditure per graduate to a maximum of €60,000 per graduate. In order to be eligible for salary support on a second graduate market research position, SME companies will need to demonstrate a strong business case and demonstrate an appropriate infrastructure to enable the graduate to fulfil the aims of the programme. 10.2 Training Costs: Training costs, to cover all costs associated with the Diploma in International Growth, of up to €7,000 for each eligible graduate who is on the programme. There is a limit of three graduates per company that can be supported for the training costs. On acceptance of a training grant offer, companies will mandate Enterprise Ireland to pay the training costs to the relevant service provider. 5 10.3 Ineligible Expenditure Bonuses related to the graduate’s salary Employers PRSI contributions Travel and subsistence in Ireland and Overseas. Accommodation costs 11. Funding Limits LARGE COMPANY Maximum Eligible Company Salary Costs (one €60,000 graduate only) Company Employment Grant Rate at 50% €30,000 Maximum Eligible Training Programme Costs €7,000 (Training Grant at 100% up to a max of €10,000) Total Company Contribution for Graduate 1 €30,000 Total Maximum Amount Paid by EI for 1st graduate €37,000 = Company De Minimis Plus up to €7,000 training for maximum of two €37,000 + additional additional graduates graduates * €7,000 number of SME COMPANY Maximum Eligible Company Salary Costs (up to two €60,000 graduates) Company Employment Grant Rate at 50% Maximum Eligible Training Programme €30,000 Costs €7,000 (Training Grant at 100% up to a max of €10,000) Total Company Contribution for Graduate 1 €30,000 Total Company Contribution for Graduate 2 €30,000 Total Amount Paid by EI for 1 graduate = €37,000 for 2nd graduate = €37,000 st Company De Minimis Support Total Amount Paid by EI Company De Minimis Support Plus up to €7,000 training for one additional €37,000/€74,000 + €7,000 for one graduate additional graduate 6 12. Company Responsibility Companies are responsible for the setting of appropriate graduate salaries, having a policy in place in relation to payment of Irish and overseas expenses, graduate visa applications, the cost of processing visas and, where applicable, the payment of host country graduate employment related taxes. Enterprise Ireland requires that companies have adequate health insurance in place for graduates located in markets outside the EU. Companies are also advised that graduates must have achieved the minimum qualification standards for the Programme. 13. Application Process 13.1 Company Application Process Guidelines and application forms for companies are available on the Enterprise Ireland website www.enterprise-ireland.com/G4IG. The application form must be submitted through this site no later than 3pm on Friday 18th September 2015. Companies should contact their Development Advisor in advance of submitting an application. A pre-requisite to the company submitting an application is that the company has a clearly developed project related to the company’s growth plan in an overseas market. Following the approval of their application by Enterprise Ireland’s Investment Committee, the company can then progress the shortlist of graduates to final interview and offer stage. The client can select the graduates to interview from the G4IG recruitment system. 13.2 Graduate Application Process Application forms and guidelines for graduates are available on the corporate website: www.enterprise-ireland.com/G4IG or the following website www.gradhub.ie. Graduates will apply directly via this dedicated graduate recruitment site. 14. Committee Projects will be approved by Enterprise Ireland’s Investment Committee. 15. Evaluation Process 15.1 Evaluation of Project Applications Applications will be evaluated by the company’s Development Advisor and put forward for recommendation by the appropriate Department Manager in Enterprise Ireland. Applications will be assessed using the criteria below for each project submitted: The potential impact of the project on the strategic direction of the company; The commitment of the company to develop its business development capability; 7 Quality of graduate project proposed The quality of the proposed infrastructure within the company to enable the graduate to fulfil the aims of the programme; The incentive effect of Enterprise Ireland funding; Previous Enterprise Ireland financial support and performance against targets 15.2 Reporting of Recommendations Following a review of the evaluations carried out a summary of each application and an initial recommendation for support or otherwise is presented to an internal Enterprise Ireland panel which will adjudicate and make a final recommendation. The panel’s recommended projects will be presented to the Investment Committee for decision. 15.3 Graduate Recruitment Process When a company application is approved, a company job specification will be developed for the approved role(s). This job specification will be used to match suitable candidates from the graduate recruitment site (www.gradhub.ie) to the company opportunity. Enterprise Ireland will also provide a recruitment system for clients to assist them in screening, shortlisting and selecting candidates for their opportunities. Companies will be assisted by the G4IG team on how to use the G4IG I.T. recruitment system for shortlisting, interviewing and hiring graduates. 16. Post Approval All companies will be notified by email on the outcome of their application following the Investment Committee decision. Unsuccessful applicants will also receive an email informing them of the Committee’s decision. Feedback will be available to companies if requested. Workshops for company mentors will take place before the start of the graduate academic modules in the IMI (scheduled for November 2015). The purpose of the company workshop is to outline the specifics of companies’ responsibilities in relation to mentoring. All company mentors should be in attendance at this workshop. Companies must release graduates to attend relevant skills modules associated with the Postgraduate Diploma in International Business Development, which will take place over 15 days in Dublin during the 18 months of the programme. Eleven of these skill modules will take place in the first six months of the programme. Graduates must attend all modules associated with the Postgraduate Diploma in International Business Development, and submit in a timely manner required course work associated with the course, or else medical certificates must be supplied to the course provider for unexplained absences or delays. 8 The graduate will be requested to fill out progress updates and submit them to the training provider over the period of the six to 12 month overseas assignment. The EI Client Skills Unit will liaise with the service provider over this period. 17. Duration of G4IG Graduates must be recruited before the first date of the Postgraduate Diploma in International Business Development training programme. G4IG will end on completion by the graduate of the six to 12 months in an overseas market and provision of a market research report to the company and to Enterprise Ireland. 18. Time period for approval and drawing down grants There will be two claim periods. The first claim period will be on receipt by EI of the company signed letter of offer, graduate employment contract and a tax clearance certificate. This claim will be for 50% of the agreed eligible employment costs up to a maximum of €60,000 for 18 months. The second claim period will be payable on completion of the programme, for the remaining 50% of the approved eligible employment costs. The company will need to provide a valid tax clearance certificate, proof of graduate payment, copy of graduate payslip, director’s statement and the relevant claim form. Full details of making a claim and claim periods are available on http://www.enterprise-ireland.com/en/Process/Companies/Graduates-4-International-GrowthG4IG.html 9