Why a Global Mobility Program?

In our last post, we wrote about different tax benefits available for international trips and we pointed out the importance and the benefits for the Organizations, of having an International Mobility Policy.

What is an International Mobility Policy?

It is an internal document, where it is possible to find the main guidelines that the Company must follow at the time of international assignments, depending on the different possible scenarios.

The international mobility, represents a key factor for Companies, that must be ready and prepared with the right tools to guarantee the management of the international trips of its employees. In addition, the possibility of working on remote from anywhere is currently added to the international mobility.

The main benefits of having an international Mobility Policy

I our intention in this post, is to highlight the main benefits that, in our opinion, the implementation of an International Mobility Policy will entail for the Organizations.

Efficiency in international assignments

Mobile employees will need support in different areas (payroll, immigration, tax, relocation, finance..).
Establishing an International Mobility program, identifying either internal sources in the Organization that will be impacted by the International Mobility, or internal gaps that will imply the necessity of having external providers, will allow the Company to move people in an efficient and appropriate manner.

Risk management

Mobile employees can generate significant risks such as an immigration, tax, social security, etc…). These risks may damage both the employees’ or the Company’s reputation, may lead to legal issues or even may imply the avoidance of traveling for the employees or the impossibility of doing business for the Company in certain countries.
The possibility for our employees of working on remote at anywhere will increase the possibility of not fulfill with relevant rules.
Having a International Mobility Program will help the company with the risk management.

Cost control

A proper planning of the international assignment may benefit from certain tax and social security benefits.
There are different tax benefits in the law, but it is important to identify what is the most advantageous, depending on the type of assignment.

Appropriate management of candidates

There are different factors, such as the length of the project, the commercial aspects, etc, that hat will impact on deciding about the best candidate, the corresponding compensation, or the support in both home and host country.
Having an International Mobility Program, the Company will be able to take accurate decisions about who is the best candidate, compensation and benefits, agreement conditions, tax assistance, etc…

Retention of employees

International assignments will represent not only a great experience and opportunity for the employee, but also a great effort for him, the family and for the Organization, what will have done an important investment with the purpose of guarantying the success of the assignment.
If there is not a repatriation plan, many employees will return to their old roles, without taking into consideration their new experiences and the acquired knowledge. And this will imply demotivation and may lead to talent drain within organization.

albea can help Companies with the implementation of an International Mobility Policy. Please contact us through info@albeatax.com and we can discuss what is the best solution, depending on your particular scenario.