In the age of globalisation, companies are seeking more opportunities in international markets and expanding their business abroad. However, before embarking on this exciting journey, pause for a moment and consider some of the critical issues that will certainly affect the outcome.
One of these factors to consider is people: should you hire new people or transfer existing employees from one country to another?
What is global mobility?
Global mobility refers to the movement of employees across international borders for work purposes. This practice not only enhances a company's competitive advantage by tapping into a wider talent pool and market opportunities, but also fosters cultural exchange and innovation within the company.
For employers, global mobility requires activities related to labour rights, taxation, labour law compliance and best practices in both home and destination countries. As companies expand into new regions, they often face unique challenges, including cultural differences, regulatory complexities and local market dynamics. A robust global mobility strategy allows organisations to effectively address these challenges and ensure they have the right talent in the right place at the right time.
A good global mobility strategy ensures the integration of the employee into the new environment, culture and practices. As an employer, it is also important to consider the employee's spouse and dependents and include them in the overall solution to ensure that mobility is ultimately managed properly and successfully.
As companies expand their operations globally, effective global mobility strategies are essential to manage the complexities of international assignments.
What are the benefits of global mobility?
While hiring new employees from local markets is a viable strategy, global mobility provides unique benefits that can lead to greater long-term success. Existing employees possess valuable institutional knowledge, understanding the company’s mission and values, which leads to smoother transitions. They also have established relationships that facilitate business operations and a cultural fit that aligns with the organization’s values.
International assignments offer valuable opportunities for leadership development and employee retention. Identifying high-potential employees for international assignments can enhance their career development while addressing organizational needs. These employees who take on global roles gain critical insights into different business environments, enhancing their ability to lead diverse teams.
Furthermore, global mobility enables organizations to tap into diverse talent pools, allowing companies to recruit individuals with the necessary expertise and cultural understanding. This can enhance their competitive advantage and drive innovation through diverse perspectives.
How to build an impactful global mobility strategy in expansions
As companies venture into new markets, it's up to leadership and HR to recognise that effective global mobility strategies can have a significant impact on the success of these initiatives. Tax, legal and payroll expertise should be involved in developing strategies to ensure process effectiveness and compliance.
- Develop comprehensive mobility policies
Establishing clear and comprehensive global mobility policies is essential. These policies should outline eligibility criteria, compensation and benefit packages, tax implications for both the company and the employees, relocation support, local affairs, and ensuring meet compliance requirements in both home and destination countries. A well-defined policy framework ensures that employees understand their rights and responsibilities, resources and supports, fostering a positive experience during their relocation.
- Invest in cultural training and support
Cultural training is vital for employees relocating to new countries. Understanding local customs, business practices, and social norms can significantly impact the success of an assignment. Companies should prioritize providing resources and support to help employees and their families adapt to their new environments, ensuring a smoother transition and enhancing overall satisfaction. - Ensure compliance and risk management
Navigating the legal and regulatory landscape of international assignments is complex. In many cases companies do not have in-house expertise ready, and as such might need to to work shoulder to shoulder with local partners and vendors to ensure local matters are well addressed. The aim should be compliance with immigration laws, tax regulations, labour laws, company law and international law in both the home and host countries. Developing a robust compliance framework helps to mitigate risks associated with global mobility, protecting both the organization and its employees. A well-designed global payroll process enables correct payments to employees and ensures that the company meets legal requirements both locally and internationally.
Global mobility services to meet your needs
At Greenstep, we take pride in our ability to stay ahead of local compliance and regulatory requirements alongside our trusted partners. This allows our customers to focus on what truly matters - growing their business and achieving their goals.
Collaborating with Greenstep, you get access to MSI Global Alliance and other esteemed partners who have fostered an ecosystem of globally scalable financial and compliance services. At the core of this ecosystem lies a commitment to people, human resources, and cutting-edge technology.
Published 18.03.2025