Global mobility, the movement of employees from one country to another, can bring a host of complexities for international payroll professionals to manage. There are many reasons an organization may decide to send employees to different locations and many benefits that companies may have not initially considered.
First, it’s important to look at the willingness of people to make a move and companies to be aware of who wants to relocate. It might surprise some that the desire to work internationally is as strong as ever despite the pandemic.
Understanding the willingness of your workforce to move is vital, but how can it then be used to support strategic business initiatives?
In some situations, companies will use a mobile workforce to their advantage to support growth ambitions. As companies look to set up in new geographies or where companies may be onboarding employees because of M&A activity, sending key personnel to these locations for extended periods can be the difference between success and failure.
Global mobility, in this instance, can support closing any skills gaps and provide a means to solve any localized shortages in talent on a permanent or temporary basis. For others, it can help them to deploy key personnel and their experience into new locations quickly. Plus, moving employees also helps to support knowledge sharing and training as the company opens new offices or enterprises in a new country.
Diversity and inclusion (D&I) have become a huge area of focus for businesses. Along with equality across all areas being the right thing to do, companies are seeing how a more diverse workforce supports business success. Although inclusion is not limited to gender alone, the gender gap in the workforce is probably the area where businesses start when they begin their D&I journey. And, maybe surprising to some, global mobility is something to consider as you map equality plans -an area many women view as important when considering a move to a new employer. The statistics to support this approach offer valuable insights:
This paints a clear picture that global mobility should be reviewed and offered where possible as part of a more comprehensive D&I strategy.
Although there are excellent outcomes from an effective global mobility strategy, processing payroll for employees on assignments in other locations can put additional pressure on payroll teams. They must understand the legislation as it applies in the new location and ensure that all tax obligations are met for the employee and the organization.
Tips to ensure success with managing payroll for overseas employees:
When looking at your global mobility strategy, ask yourself:
In considering the future of global mobility, the advantages are clear when it comes to supporting business expansion and in areas such as inclusivity where you might not have initially had that marked as part of your D&I plans. As we get back to increased business travel, it’s important that businesses look at the strategies they have in place and begin plans to implement improvements to benefit the organization and fulfill the want and willingness of employees, regardless of circumstance have expressed.