costs associated with the transfer of the employee and any accompanying family members to the new location, as well as set-up costs such as finding accommodation in country. While
it is likely that
the
organisation will need to provide support for the start-up of this type of arrangement, once established, the employee and family are unlikely to receive a large amount of ongoing support compared with what might have been provided under a long- term assignment policy. As such, the use of permanent
also provide career growth and development for employees. They offer employers flexibility, for example, in meeting employee requests, as well as improve equity, diversity and inclusion in the assignee workforce. Short-term assignments can be used for early career development moves too. Short-term assignments are
typically unaccompanied and have home-based terms and conditions applied to them. However, they do present employers with challenges, particularly in relation to managing costs, extensions and tax issues. These factors are interrelated.
Anyone opting for a short-term assignment needs to be clear that tax and compliance must be carefully considered and checked out ahead of a move taking place, as well as linked with appropriate tracking technology so that any extension to the assignment is managed effectively. Wellbeing is also a vital consideration because family separation is stressful.
COMMUTER ASSIGNMENTS Commuter assignments are among the options employers and employees are using primarily for project-based work and to provide flexibility for employees. As with short-term assignments, they can also be used to promote career growth and development and in response to employee requests. They are commonly used for locations where it might be difficult to relocate an accompanying family. Commuter assignments are,
by nature, unaccompanied. Yet long-term travel to service an assignment or project does represent
30
considerable wear-and-tear on employees who need to travel regularly to and from their host locations. Frequent travel and family
separation also cause family disruption and stress. So, if commuter assignments are to be used over the long term, then there should be regular check-ins with employees to ensure their wellbeing is being looked after.
COST-EFFECTIVENESS Short-term assignments and commuter arrangements are typically considered to be cost- effective ways of servicing international mobility. It is important to ensure that
cost projections are carried out and that comparisons are made between these and long-term assignments. For example, a long-term assignment of one year’s duration, when compared with a short-term assignment or a commuter arrangement of similar length, may not prove to be that much less cost-effective. The mix of the package elements
will be different, but additional costs that might flow from travel arrangements and compliance may raise the cost associated with the more flexible approaches to mobility beyond what might be originally expected.
PERMANENT TRANSFERS One aspect of global mobility gaining prominence is the use of a permanent transfer or one-way international assignment instead of a traditional long-term assignment. In such circumstances, the use of a permanent move would typically be on local terms, although there will be
transfers where an assignment is envisaged to be long-term is generally considered to be more cost-effective than providing a full, home-based, long-term assignment package. An issue that needs to be
considered when using one- way international transfers is the location where the employee and accompanying family members will be based. For instance, whether or not accompanying partners can work and children can find an appropriate school. Families will need to cover the cost of living in the new host location on a permanent transfer basis. So, two incomes will most likely be required if there is a lack of other supporting allowances and benefits that would have otherwise flowed from a long-term assignment policy. Given that companies wish to
transfer their talent effectively and ensure that they are productive in the new location quickly, support must be tailored to ensure that families can make this transition to local terms and conditions smoothly. If the assignment appears to be undersupported financially, it is unlikely to be attractive. Where this type of policy is used, employees need to be motivated by the support and role on offer if they are to accept the posting and remain in post once they have accepted the role.
CASH VERSUS CARE A further trend that has become apparent
recently is the use of
lump sums to support international transfers. It can be easier to provide a lump sum than tailored benefits and support services. It is also argued that employees like lump
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