The world of work is in a very different place than it was a few years ago. Priorities and expectations have changed, with staff in some industries having more flexibility than ever before.
With opportunities for remote work presenting themselves to many employees, and work concepts such as ‘digital nomad’ being introduced, businesses have seen more of their employees moving abroad, or working for extended periods outside of the country that their employment contract originated in.
Whether that’s a three-month project with an overseas team, or permanently relocating, the desire to embrace new opportunities also presents new business challenges with compliance, tax, holiday allowances and in-country mandated support, such as sick leave or maternity/paternity packages.
Such moves across borders bring complications and risks for both the employee and the employer. Truly understanding how global mobility impacts your team, your organisation and your customer’s organisation shouldn’t be underestimated - enabling a smooth transition of a workforce, or individual employee from one country to another is as important for the business as it is for the person making the move.
Implementing a global mobility strategy
Choosing not to implement a global mobility strategy will ultimately cause problems for both parties further down the line and may result in complex challenges needing to be investigated retrospectively, creating frustrating inefficiencies and potentially navigating expensive penalties in the process.
Operating cross-border employment smoothly involves several critical factors being taken into consideration, including:
- Payroll, Pension and Benefits
The employer must identify, consider and manage all payroll-related aspects. This includes complexities such as payment currencies, tax withholding, reporting, and remittance obligations. For example, - companies are responsible for providing all global employees with home and host country pensions and benefits.
- Employment Law
Ensuring that employees have the knowledge required and are fully supported when it comes to what their host country’s requirements are in order to live and/or work in that part of the world is key. Understanding local legislation requirements, the importance of setting correct contractual obligations (and meeting them) and creating assignment letters are only a small part of the process.
- Securing Permits and Relocation
Did you know - whether an employee requests to move, or accepts a project on short-term assignment, it’s the employer’s responsibility to organise and secure employee visas, resident permits and work permits for those moving abroad. The company should also assist employees with housing and educate them, where required, on their legal and financial obligations once in the country.
- HR
Supporting with career development and retention strategies as well as country-specific support remains important. For example, onboarding, appraisals, grievances etc that will have unfamiliar processes need to be created, followed and/or adhered to. Nuances from country to country are many, and laws to support the employee vary significantly. Do you know your liabilities?
- Taxes
The importance of managing income tax and social security obligations perhaps does not need explaining but it would be remiss not to mention it as part of the list of checks. Responsibilities for tax compliance, payroll, pension, and benefits need to be clear, as each carry their own complications and trying to fix issues retrospectively can be expensive, resource intensive and stressful all round.
Best practices for optimising your global mobility strategy
Whilst the above list is exhaustive and potentially overwhelming, there is a vast pool of advice and guidance to seek support from and, in the online world, learning from other’s mistakes before you make them yourself is a significant business advantage. To be successful with global mobility strategies, today’s businesses can implement effective best practices to ensure they are making the most of global talent opportunities, to become a successful cross-border employer.
- The Employee Experience
When it comes to global mobility, investments in employee experience and satisfaction can enhance employee productivity in the host country. This could come in the form of finding jobs for family members, housing, education or social opportunities. Companies need to lean into the areas that they can help; maintaining employee wellbeing after the move, and once in the new role, is critical to long-term success.
- Technology
Everest Group’s recent Global MCP Solutions PEAK Matrix highlighted the crucial nature of technology and automation in today’s global economic landscape, praising our activ8 platform and its ‘redesigned customer experience and engagement approach.’
A scalable, repeatable, global mobility experience requires appropriate supporting technology to run smoothly. This can help with the estimating of operational and international transfer costs, forecasting revenue, budgeting and analysing previous international assignments and estimating future costs.
Businesses are also experiencing a revolution in their respective industries because of Generative A.I.
Repetitive tasks are being automated, promoting innovation and turbo-charging operational performance. Digital tools are modernising global mobility management. They offer boosted accuracy, real-time tracking of assignments, and leaner administrative procedures.
- Requirements
While it might be a mammoth task, reviewing international requirements for host countries is key to creating a successful global mobility strategy. This means knowledge of global mobility’s different aspects, including immigration requirements, taxation, procedural challenges, deployment workflows, host country assistance and necessary documentation.
Everest Group’s report also recognised our solutions as a ‘Star Performer’ and ‘Major Contender’ in Multi-Country Payroll capabilities and technology innovation. The report highlighted ourwide geographic presence and expanded scope of services, as well as employee-centric solutions that provide greater flexibility to clients. You can read the full report here.
Make life easier with global payroll solutions
At activpayroll, we help you get ahead. Our people, processes and technology help you navigate the complexity of global payroll, ensuring your people are paid compliantly, on time, every time. We bring visibility and clarity to your global payroll performance, supporting businesses in over 150 countries by navigating the intricacies of local legislation.
Organisations can spend years trying to figure out how best to manage global payroll operations, but sometimes, the right partner is all you need.