Align your objectives with the business.
Providing relocations to employees can be a powerful tool for attracting and retaining talent, is it truly advancing your company’s core business objectives? Ensure your strategy compliments your organisation’s aspirations for growth, global expansion plans, and talent management initiatives.
Collaborating internally and externally will enable you to align and understand the strategies that will be successful for your organisation.
Identify suitable relocation destinations for employees.
One way to support the overall growth strategy of the business might be to choose which countries you want to include in your global mobility strategy and restricting other countries.
This decision will be influenced by many factors including industry, business goals, workforce, and the guidance you receive from legal and financial experts. You’ll need to comply with the varying legal and tax regulations of each country. The following will help shape the location(s) you choose:
- Which markets are a priority for you?
- What regulations and legislations will impact both the employee and the company?
- How will these regulations and legislations affect employee taxes?
Tailor your global mobility options.
As your company expands or enters new markets, it’s essential to prepare assignees through a well-defined global mobility strategy. Provide cultural and inclusion training, hire a translator, or offer foreign language classes to help employees adapt.
Outline the various assignments and travel opportunities available to your employees:
- Business travel: Brief international trips intended for attending conferences, participating in meetings, conducting negotiations, or building professional connections.
- Short-term assignments: Spanning three to twelve months, these placements are designed to accomplish specific objectives, such as upskilling local employees or addressing staffing gaps.
- Long-term assignments: Lasting one to three years, these roles are focused on meeting organizational priorities, such as expanding into global markets or establishing new offices.
- Permanent assignments: Workers relocate abroad on an indefinite basis, usually obtaining residency in their destination country. These assignments often arise when tasks require a local presence or when specialised expertise is available only in the host nation.
Timing: Implement a probationary period for visa sponsorships to assess an employee’s fit before investing in sponsorship. Visa application timelines vary, so identify critical deadlines, and incorporate them into your strategy. Consider budgeting for premium processing to expedite applications and ensure a smooth visa process.
Understand and manage costs
Maintaining a global mobility programme can be expensive, encompassing tax, payroll, immigration fees, and international relocation costs. These expenses will differ based on the destination country and the services needed. Compensating international assignees involves different considerations compared to a domestic relocation, necessitating a distinct compensation strategy.
Cost breakdown: The costs associated with global mobility vary by country and may be covered by either the employer or the employee, depending on company policy and assignment type. Employers often cover visa application fees and associated legal costs unless the employee engages an independent law firm.
Additional costs: Costs may include travel and moving expenses for both employees and their dependents, as well as accommodation costs. These expenses can be substantial and should be accounted for in the overall budget.
Return costs: It’s crucial to maintain visibility of all costs throughout the process, including return costs. This ensures that both the employer and employee are aware of potential expenses, allowing for better financial planning and management.
By understanding and managing these costs, you can create a more effective and sustainable global mobility program.
There are many tools to help Global Mobility experts manage their relocation costs all in one place. These tools enable budgeting and cost visibility as well as many other aspects of relocations that can be customised to your needs.
At BTR we use Equus to enable our clients to stay connected.
Consider all aspects of employment law, immigration, tax, and payroll
Managing a global workforce means complying with various legal and tax regulations. There are many elements to consider:
Employment agreements:
- Employment regulations are different across nations and even between regions. Contracts enforceable in one country may not hold in another. Key differences include employee classification, taxation structures, compensation, working hours, holidays, entitlements, and leave policies.
Immigration:
- Employees must obtain the proper visas and work permits. Violations can result in major delays, and penalties. Use experienced immigration partners familiar with the countries in question for visa applications and compliance.
Global payroll and tax compliance:
- Always provide a streamlined and efficient payroll service. International payroll involves high fees, exchange rates, and complex tax compliance. Implement a streamlined global payroll system with automated tax calculations and global data dashboards.
- Cost of Living Allowance should be considered so that any relocating employee is no worse, or better, off in the new location. Data provision experts can provide Home and Host tables based on standard goods and services in both locations. This can then be provided to the employee through Home or Host payroll.
- Another payroll consideration is implementation of the correct shadow payroll approach. International shadow payroll is a system used by companies to manage tax and social security obligations for employees working abroad. It is a vital service to ensure Home and Host country tax compliance and the necessary reporting requirements to the necessary authorities.
Permanent establishment risk:
- Avoid activities that could establish a taxable presence in a foreign country, such as regular business operations or using local facilities.
By understanding and managing these aspects, you can create a more effective global mobility strategy.
Make the move easy
The immigration process is complex. Mistakes like misunderstanding laws, missing deadlines, or applying for the wrong visa can slow things down and hurt your employee’s productivity. We would always recommend seeking professional advice, managing a rigorous process, and ensuring absolute clarity on timelines and deadlines.
Whether your employee is moving for a month, a year, or longer, they need support every step of the way. Here’s how you can help:
- Family support: Assist with visas and permits for spouses and children.
- Visa help: Guide them through renewals and applications for permanent residence or naturalisation.
- Personal admin: Help with banking, shipping belongings, travel bookings, and finding accommodations.
- Flexibility: Offer paid time off, lighter workloads, or flexible hours during the move.
- Financial support: Provide cost of living adjustments and relocation bonuses.
Ensuring your employees feel supported makes their transition smoother and keeps everything on track.
Streamline your process and ensure compliance
Developing and sharing a clear global immigration policy helps everyone in your company understand the guidelines. Here’s how to get started:
- Outline eligibility for short-term and long-term relocations.
- Define the purposes for relocation.
- Explain how to request a relocation.
- Detail reimbursement of relocation expenses.
- Clearly outline the approval process and criteria for relocating an employee.
- Provide information on company support for relocating employees.
- Include necessary paperwork, permits, and visas.
- Address support for employees moving with dependents.
- Adjust employee compensation as needed.
Document compliance:
- Keep thorough records of compliance with international laws, including legal, financial, and employment regulations.
- This protects your employees and company, helps secure future visas and work permits, and maintains a good reputation.
- Remember, failing to comply can result in civil or criminal penalties for unauthorized work or overstaying visas.
By formalising your processes and ensuring compliance, you can support your employees effectively and keep everything running smoothly.
To thrive in today’s global landscape, a strategic approach to mobility is not just advantageous—it’s essential. By embracing innovative solutions and addressing key considerations, businesses can unlock new growth opportunities and enhance their global presence. Start crafting your winning global mobility strategy today to drive success across borders and secure your competitive edge.
