Finding the right person for an open position can be difficult, so when you find that perfect fit, you’ll do what it takes to get them to their new location, even if that new location is abroad. However, relocating someone internationally has never been an easy task. Even if you offer your employees a pay raise, ship their household goods, or help them find the most amazing new home, expatriate assignments often go awry over time. The industry experts at WHR Global can help with your company’s expatriate assignment and implementing an expat program.
Housing, cultural adjustment, family adjustment, and a new work environment can all lead to poor productivity, especially if the assignment takes someone far away from their loved ones for an extended.
Many preparations and arrangements go into sending your workers abroad, which is why you must understand the advantages and disadvantages of the most common types of expatriate assignments: long-term, short-term, and typical business travel.
Some companies choose to use just one type of assignment or include multiple different options, depending on the employee and the position available. Either way, finding the best expat program for both your company and your employee will ensure both are successful long term.
Was ist eine langfristige Entsendung von Expatriates?
There is no single definition of what constitutes a long-term expatriate assignment because companies vary in how they define long-term versus short-term. Still, a long-term expatriate assignment generally has a 12-month to 36-month duration. Some companies may define a long-term expatriate assignment as work that lasts a minimum of two years but not longer than five years. One of the most important things to note is that this type of assignment is not a permanent transfer; the employee intends to return to his or her home country after the long-term assignment is complete.
Profis
The benefits of expatriate work go both ways. You can dispatch your best talent to international partners and help them build and grow their international business; and your workers can expand their knowledge of different cultures and markets and enhance their careers with overseas experience.
The specifics of each long-term expat assignment vary greatly depending on industry and location. In the past, it was important to instill the culture of the parent company into the foreign entity and help drive revenue growth in the overseas location. Today this still exists, but the opposite is also true. Overseas workers are being deployed to the parent country or other countries to gain experience, transfer knowledge, and run specific project-based work. How companies handle expatriate assignments is changing as global travel is now just as common as traveling within your own country.
Other benefits can include payment/payroll in their country of origin. This means no currency conversions. Along with the payments, benefits such as a 401(k) can continue regular contributions and other incentive plans.
Nachteile
Die Unternehmen wissen, dass die Unzufriedenheit der Mitarbeiter mit langfristigen Auslandseinsätzen ein Problem darstellt. Das auffälligste Beispiel für die Unzufriedenheit der Mitarbeiter ist der Umzug ihrer gesamten Familie ins Ausland. Viele Mitarbeiter haben Gewissensbisse, da sich der Stress und die Ungewohntheit der neuen Umgebung auf die Angehörigen auswirken.
Costs are extremely high for expat assignments and many companies don’t properly vet the individual taking the assignment. They don’t test the person’s ability to thrive in a “foreign” location and adapt culturally. Additionally, many companies forego cultural and language training which is essential in providing a foundation for a successful transition. Simple things like how to conduct a business meeting or learning the norms for handing out a business card. Other pieces could include finding what time is appropriate for arriving at meetings or knowing what to do if invited to dinner, etc. are just some of the numerous and subtle social and business norms that will ensure success.
However, many companies choose not to or don’t know the importance of this investment.
Consequently, increases in employee dissatisfaction and high costs with long-term assignments have led many companies to reevaluate their long-term policies. Implications such as paying taxes in a foreign country can come into play or implementing a tax equalization plan for long-term expat employees. There are countless compliance requirements as well, and without the assistance of a relocation company, it can be hard to navigate. Many companies have chosen another route: short-term expat assignments.
Was ist eine kurzfristige Entsendung von Expatriates?
This type of expatriate assignment can last between three months to a full year. Like long-term assignments, each company defines short-term assignments differently. Because the employee plans on returning home after such a short amount of time, there are additional benefits that must be considered. Short-term expatriate assignments can offer great flexibility and less commitment, but less fluidity and insurance. Many companies will not allow the family to accompany the employee on these short-term assignments but will provide other options such as more frequent trips home, furnished accommodations, per diems, travel allowances, etc. Relocation management companies, such as WHR Group, can help manage short-term expatriates and provide the structure and benefits available to this group of assignees.
Profis
The problems of dissatisfaction and homesickness became apparent with long-term moves, so short-term overseas engagements were developed as an alternative to pulling up roots and moving families across the globe for extended periods. From your company’s perspective, a short duration generally costs less upfront, and it gives you more flexibility when developing a mobile, global workforce. Additionally, the consequences of individuals becoming “taxable” in the foreign location can be managed effectively, thus significantly decreasing the cost of the expat assignment. Lastly, the pool of candidates willing inevitably increases as it’s a short-term expat assignment, which has reduced impact potential on families and financial ramifications.
Nachteile
Der Nachteil kurzfristiger Auslandseinsätze besteht darin, dass eine Vielzahl von Mitarbeitern ausgetauscht werden muss, was für alle Beteiligten mehr Planungs- und Verwaltungszeit erfordert. Es besteht ein Kompromiss zwischen einer Reihe von Kurzzeiteinsätzen und einem einzigen Langzeiteinsatz. Was für Ihr Unternehmen gut funktioniert, ist für andere möglicherweise nicht so gut geeignet.
Erweiterte Geschäftsreisende
Bei dieser Art von Auslandseinsätzen können sich die Vielfliegermeilen wirklich summieren. Wenn Ihre Mitarbeiter für eine Dauer von nur ein oder zwei Wochen auf internationale Geschäftsreise gehen, sind sie technisch gesehen immer noch Expatriates. In der Regel handelt es sich bei diesen Mitarbeitern nicht um einen formellen Auftrag, aber es gibt immer noch potenzielle steuerliche und einwanderungspolitische Überlegungen, die angestellt werden müssen, wenn jemand auf diese längeren Geschäftsreisen geschickt wird.
Profis
Für alle Beteiligten sind Geschäftsreisen einfach mit weniger Unterbrechungen verbunden. Ihre Mitarbeiter haben viel mehr Kontrolle darüber, wie sie ihre Aufgaben erfüllen, und Sie müssen nicht ständig Ressourcen an einem fremden Standort einsetzen.
Nachteile
Die Anforderungen an Arbeitsvisa sind von Land zu Land sehr unterschiedlich und können von den jeweiligen Heimat- und Gastländern beeinflusst werden. In einigen Fällen kann ein Arbeitnehmer mit einer Ausnahmegenehmigung einreisen, aber in anderen Ländern kann es illegal sein, eine einzige Arbeit zu verrichten, ohne die entsprechenden Arbeitsvisa zu haben.
Regardless of the assignment type that is considered, each type of expatriate assignment has its strengths and pitfalls. Every company needs to determine what is optimal for their workforce and the business needs requiring these assignments. Let the experts at WHR Global help guide your employees and company through these types of decisions and implementations.
Lesen Sie, wie die Vorbereitung Ihrer Expats den Übergang erleichtern kann
