Expanding globally is a common strategy for growth, with many UK companies currently planning international expansion. For businesses already trading internationally, a report from HSBC[i] found 87% aim to expand further in the next year, while 10% of UK-focused firms are eyeing overseas opportunities.
Relocating employees overseas can offer exciting opportunities for a company and its employees, however, it requires careful consideration and planning.
Companies must navigate different employee regulations, contracts, taxes, benefits, and local laws effectively. Here are ten essential tips for successful global assignments:
1: Consider the assignment’s duration
Short-term assignments (six months or less) usually keep employees under their home country’s tax and benefits systems. Long-term assignments (over six months) often require relocating families and integrating employees into local payrolls to optimise financial benefits and tax compliance.
2. Establish travel policies
Create clear travel policies outlining the employee’s entitlements such as accommodation type, flight allowances, and travel class before they travel. This helps prevent misunderstandings later and ensures smoother transitions.
3: Understand local tax laws
Tax regulations can vary widely depending on the location. For long-term assignments, integrating employees into local payrolls can optimise tax benefits and more companies are choosing this option. Complying with local tax laws is crucial to avoid penalties and ensure fair treatment, so it’s important to seek expert advice in this area.
4: Comply with visa regulations
Stay updated on visa and passport regulations, as they can frequently change. Don’t assume you know the rules or that an employee’s passport status aligns with their current work location. Reciprocity agreements, like the Schengen Area, can simplify visa processes and make a smoother transition.
5: Consider cultural sensitivities
Provide employees with briefings on the cultural norms, expectations and safety protocols in their new location. Understanding local health and wellbeing practices can improve employee satisfaction and assignment success.
6: Provide appropriate benefits
It’s also important to tailor benefits to the assignment’s jurisdiction and length including having appropriate travel insurance, medical coverage, and social security programmes. Ensure benefits adhere to local laws and cultural norms and understand regulations regarding benefit withdrawal.
7: Understand social security programmes
Each country has unique social security requirements. Ensure compliance with local regulations and collaborate with local experts to avoid legal penalties and ensure employees receive essential benefits.
8: Implement effective HR procedures
Develop robust HR procedures to support employees throughout their assignments. As the workforce grows, consider partnering with global benefits advisers to manage costs effectively.
9: Adapt as your workforce grows
As your international presence expands, you may need to establish local entities or works councils to comply with local laws and enhance employee relations. A global employee benefits adviser can support businesses both small and large at each stage of their growth and development.
10: Offer comprehensive support
Provide support before, during, and after assignments, including cultural briefings, safety advice, and reintegration programmes as these are key to ensuring good employee wellbeing and morale.
Key takeaways:
- Plan ahead: Develop a comprehensive global strategy.
- Know tour assignees: Ensure employees have appropriate coverage.
- Tailor approaches: Regulations vary by country; manage expectations.
- Provide support: Offer robust support packages and cultural integration.
- Be flexible: Adapt strategies as your business evolves.
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