To achieve the flexibility and agility required to respond to changing business demands while operating within a cost-effective and compliant infrastructure, organisations should explore different types of global mobility assignments.
With a varied global mobility portfolio, organisations can optimise the return and value of its mobility activity by ensuring the most appropriate and cost-effective type of assignment is utilised for any given need, such as duration of assignment (short term, long term, permanent?), location (developed or emerging nation?) and overall strategic aim of the assignment (overseas expansion, talent development?).
Business travel
Business travel involves short-term trips, typically enabling individual employees to carry out specific business-related activities, such as attending conferences and meetings, negotiating contracts and networking, in a different country for a brief period.
Compared with other mobility types, business trips may be less costly and less administratively onerous where employees travel without a work permit. However, for many organisations, the volume of business travel is such that as a whole, it acts as the biggest drain on mobility budgets.
Since business travel tends to occur without triggering any organisational global mobility procedure or support, it can be challenging for organisations to have an accurate understanding of the total financial outlay. This is further complicated by expenses, with reimbursement processes for globally mobile employees creating an additional lawyer of cost and budget management.
Business travel also presents a range of immigration and tax compliance risks for both the employer and employee.
Local immigration laws constantly change and current trends in global immigration policy are seeing a move towards more stringent monitoring and management of business travellers. Where employees travel without first checking against local immigration rules, any reliance on a visa not specifically designed for business purposes, or travelling without express, prior work permission for the intended activity, could see the employee detained at the border at the discretion of the immigration officials.
Employees who travel extensively on business could also become ‘accidental expats’ by involuntarily or unknowingly triggering legal or tax rules that re-classify them as resident in the host country.
In response, employers are advised to support their travelling employees through ongoing training and explore technology solutions to improve data collection and storage in relation to monitoring business travellers’ movements and managing the associated compliance with immigration and tax regulations.
Short-term assignments
Short-term overseas assignments can be a flexible approach to developing talent within your organisation, by offering key employees highly valuable international exposure and experience, with potential career progression into managerial, executive and leadership roles on their return.
Short-term assignments can also enable employees to gain first-hand insight and industry knowledge to bring back and use to improve performance and operations in their home workplace.
There are however various inherent risks of short-term assignments, including seeking the relevant immigration approvals, which can become onerous and costly given the short-term nature of the assignment.
You will also need to ensure that the employee is aware of the relevant legal and cultural differences to enable them to maximise their time on assignment, and avoid any adverse impact on the success of the assignment or falling foul of the law.
Long-term assignments
Long-term overseas assignments can support longer-term business growth objectives either by establishing a foothold in a new regional market or driving growth efficiency programmes through existing operations.
Deploying existing employees can also be a more effective alternative to recruiting overseas in achieving the commercial objective, where knowledge of the organisation is critical and timescales are challenging.
One of the main challenges in long-term assignments however is controlling costs and ensuring their commercial viability.
In particular, you will need to factor in relocation costs for both the employee and their family, operational costs of providing ongoing support for supporting the assignee and ensuring the compensation package is at a level, which offers an attractive financial incentive that will motivate the employee. When assessing the value and return on investment of a long-term overseas assignment, you will also need to consider the cost of repatriation at the end of the assignment.
Failure to sufficiently invest in the assignment, either from the outset or throughout the lifecycle, especially any failure to offer sufficient personal support for a long-term assignee during their time abroad, can result in expatriate failure, early repatriation and employee attrition.
As an employer you have a moral responsibility and a duty of care, not to mention a vested financial interest, not only to ensure the personal safety of an employee but also their overall wellbeing and happiness.
Indeed, ensuring that you maintain a supportive, open and communicative working relationship throughout a long-term assignment can mean the difference between retaining the services of an employee either during or at the end of the assignment, and losing their global talent to a competitor.
Permanent relocations
For employers, permanent relocation is increasingly being seen as a cost and resource-intensive option, which may be too rigid and long term for the organisation’s requirement.
Administering the move and preparing the employee and their family for relocation is a financial commitment from initial orientation, destination and arrival services onwards.
Pre-travel training for the employee and their family will also be essential, for example, to overcome any language or cultural barriers.
It does however provide a more secure alternative to hiring someone local who cannot offer the organisational insight and knowledge necessary to drive forward a specific business aim, such as a regional reorganisation programme or expansion strategy.
Importantly, local visa rules may restrict and determine the availability of a permanent relocation as an option for global mobility. This means this type of global mobility is generally not suited to anything other than to fill skills gaps and to manage operations. If you are looking, for example, to transfer expertise or develop new talent within your company or organisation, either short-term or long-term assignments or even frequent business travel, are likely to be viable options from an immigration perspective.
Managing a global mobility portfolio
Global mobility can offer many advantages but also carries risks, depending on the type of global mobility assignment involved.
Importantly, travel and work rights between the EU and the UK are likely to be overhauled following Brexit, and organisations will need to quickly adapt to maintain a legally compliant global mobility programme involving employee movement into, out of and through Europe.
When assessing the benefits and risks of the different types of global mobility, there are various ways that you can help to maximise the potential success of an overseas assignment. In particular, by planning ahead, giving assignees sufficient support, training and time to prepare for their trip, both practically and mentally, will be critical factors in the overall programme outcome.
More and more, employers are segmenting their expatriation policy, not just by assignment duration (long-term versus short-term) but also by expatriate assignment purpose (strategic assignment versus developmental moves or moves requested by the employees themselves) to achieve better alignment between the mobility programs and the business/talent needs of the organisation.
Policy segmentation is a way to address the limitations of the one-size-fits-all types of policies, reconcile the cost control versus international expansion dilemma in a context of budget constraint by shifting budget from less essential moves to assignment that are critical to the business, present options to management to understand the cost and business implications of sending expatriates, manage effectively exceptions into well-defined framework and process as opposed to one-to-one ad-hoc deals and reconcile talent management and reward.
Need Assistance?
For expert guidance on your organisation’s global talent mobility programme, including how to select and optimise different types of mobility, contact our specialist advisers.
Types of Global Mobility FAQs
What is global mobility?
Global mobility refers to the movement of employees across international borders for work purposes. It involves various types of assignments, such as short-term and long-term placements, permanent transfers, and virtual assignments. Global mobility is essential for businesses looking to expand into new markets and develop their global talent.
Why is global mobility important for UK employers?
Global mobility allows UK employers to access international talent, develop their workforce, and expand into new markets. It also helps in retaining key employees by offering them diverse career development opportunities. Moreover, managing global mobility effectively can enhance a company’s competitiveness and ensure compliance with international regulations.
What are the different types of global mobility?
The main types of global mobility include short-term assignments, long-term assignments, permanent transfers, commuter assignments, and virtual assignments. Each type serves different business needs and involves varying degrees of employee relocation and support.
What should UK employers consider when planning global mobility?
UK employers should consider several factors, including the business objectives of the assignment, the legal and compliance requirements (such as immigration laws and tax regulations), the costs involved, and the support needed for the employee and their family. Strategic planning is crucial to ensure the success of global mobility programmes.
How can UK employers ensure compliance with global mobility regulations?
Compliance can be ensured by staying informed about the legal requirements in both the home and host countries, including visa and work permit regulations, tax obligations, and social security arrangements. Employers should also regularly review their global mobility policies and seek expert advice when necessary.
What challenges might UK employers face with global mobility, and how can they overcome them?
Common challenges include managing costs, ensuring legal compliance, and supporting employees during their transition. These challenges can be addressed by thorough planning, effective use of technology, and providing comprehensive relocation support. Employers should also be prepared to address cultural differences and potential family issues that may arise during an international assignment.
How do virtual assignments fit into global mobility?
Virtual assignments allow employees to work remotely from their home country while performing duties for a role based in another country. This type of assignment has become more common due to advancements in technology and the shift towards remote working. Virtual assignments can reduce relocation costs and offer flexibility, but they also require careful management of time zones, communication, and compliance with local laws.
What is the role of HR in managing global mobility?
HR plays a crucial role in managing global mobility by developing and implementing policies, ensuring compliance with laws and regulations, supporting employees through the relocation process, and aligning global mobility initiatives with the company’s strategic goals. HR also coordinates with other departments, such as finance and legal, to manage the various aspects of global mobility effectively.
Glossary
| Term | Definition |
|---|---|
| Global Mobility | The movement of employees across international borders for work, encompassing various types of assignments. |
| Short-Term Assignment | A work assignment typically lasting from a few weeks to less than a year, often for specific projects. |
| Long-Term Assignment | A work assignment that generally lasts from one to five years, requiring significant relocation support. |
| Permanent Transfer | The relocation of an employee to another country indefinitely, often involving permanent settlement. |
| Commuter Assignment | A situation where an employee regularly travels between their home country and another country for work, without relocating. |
| Virtual Assignment | A work arrangement where an employee performs their duties remotely from their home country, often for a role based in another country. |
| Immigration Laws | Legal regulations governing the entry, stay, and work rights of individuals in a foreign country. |
| Tax Regulations | Rules and laws related to the taxation of income earned in a foreign country, often affecting expatriates. |
| Social Security | A government system that provides financial support to individuals in retirement or during periods of unemployment or disability. |
| Compliance | Adherence to local and international laws, regulations, and policies, particularly in the context of employment and taxation. |
| Talent Development | The process of enhancing the skills and capabilities of employees, often through international assignments and exposure to different markets. |
| Risk Assessment | The identification and evaluation of potential risks associated with global mobility, such as legal, financial, or cultural risks. |
| Cost Management | The process of planning and controlling the budget related to global mobility, including relocation costs, tax implications, and assignment allowances. |
| HR (Human Resources) | The department responsible for managing employee relations, including recruitment, benefits, and compliance with labour laws. |
| Relocation Support | Assistance provided to employees moving to a new location, including moving expenses, housing, and settling-in services. |
| Expatriate | An employee who is temporarily or permanently residing in a country other than their native country for work purposes. |
| International Market Access | The ability to enter and operate in foreign markets, often facilitated by deploying employees internationally. |
| Employee Rights | The legal entitlements of employees, including fair wages, working conditions, and protection against unfair dismissal. |
| Strategic Planning | The process of defining a company’s direction and making decisions on resource allocation, including global mobility initiatives. |
| Technology Solutions | Software and tools used to manage global mobility processes, such as tracking assignments, compliance, and communication. |
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
