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.
¿Qué es una misión de larga duración para expatriados?
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.
Pros
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.
Cons
Las empresas saben que la insatisfacción de los empleados con las asignaciones a largo plazo de los expatriados es un problema. El ejemplo más llamativo de insatisfacción de los empleados es cuando los trabajadores trasladan a toda su familia al extranjero. Es habitual que muchos empleados tengan remordimientos de comprador, ya que el estrés y la falta de familiaridad con el nuevo entorno empiezan a afectar a sus seres queridos.
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.
¿Qué es una misión de corta duración para expatriados?
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.
Pros
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.
Cons
Los contras de las asignaciones de expatriados a corto plazo giran en torno a la exigencia de rotar una variedad de personal, lo que requiere más tiempo de planificación y administración para todos los involucrados. Existe un equilibrio entre una serie de asignaciones a corto plazo y una única asignación a largo plazo. Lo que funciona para su empresa puede no funcionar bien para otras.
Viajero de negocios prolongado
Este tipo de asignaciones para expatriados pueden realmente acumular millas de viajero frecuente. Si sus trabajadores viajan internacionalmente por negocios por una duración de sólo una o dos semanas, siguen siendo, técnicamente, expatriados. Por lo general, estos empleados no están en una asignación formal; sin embargo, todavía hay consideraciones fiscales y de inmigración potenciales que deben hacerse al enviar a alguien en estos viajes de negocios prolongados.
Pros
Para todos los implicados, los viajes de negocios simplemente causan menos trastornos. Su personal tiene mucho más control sobre la forma en que realiza sus tareas y usted no tiene que asignar permanentemente recursos a un lugar extranjero.
Cons
Los requisitos de los visados de trabajo difieren mucho de un país a otro y pueden verse afectados por los lugares de origen y de acogida. En algunos casos, un trabajador puede entrar en el país con una exención de permiso de trabajo, pero en otros países puede ser ilegal realizar un solo trabajo sin tener los visados de trabajo adecuados.
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.
Más información: La importancia de la ayuda a la repatriación
Lea cómo la preparación de sus expatriados puede facilitar su transición
