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Home » Articles » What is a global mobility strategy?

What is a global mobility strategy?

What is a global mobility strategy

Companies expanding internationally are on the rise. Remote employees who work for international companies can now experience what it is like working for them in the same time zone.

To do this, a good relocation plan needs to be implemented. In order to come up with one, you will also need a well-thought out global mobility strategy.

This article talks about what a global mobility strategy is and its importance in helping employees relocate from one place to another.

Global mobility strategy defined

A global mobility strategy is a business plan executed by companies to help their employees relocate either domestically or internationally.

This plan covers the guidelines and procedures that will smoothen the employee’s relocation process and allow them to settle in their new place. 

Companies help their employees adjust to both the working environment and their personal lives. To some employees who are moving to a different country, this includes cross-border mobilization.

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Global mobility strategy defined
Global mobility strategy defined

Importance of a global mobility strategy

The goal of a good global mobility strategy is to ease the moving process of employees transferring to a new location or country while still fulfilling their duties at the company.

With more businesses achieving globalization and expanding their workforce overseas, this is an opportunity for new players on the market to do the same thing.

Creating a global mobility strategy allows your company to reach new markets and work with a diverse pool of international talent.

Apart from that, this strategy ensures that companies follow immigration laws when deploying their employees to another country. It also ensures that communication and work-related policies continue to be followed.

Key factors of a global mobility strategy

When creating a global mobility strategy, there are several different elements to consider. Here is a breakdown of the key factors to remember:

Legal structure

Does transferring your employees abroad have any legal implications both on your and their part? Will they still be able to uphold their legal obligations both from home and abroad?

This is mainly in terms of tax requirements. If the employer or employee fails to adhere to the tax requirements, they may face dependent agent permanent establishment, which is when employees must pay income tax in that country.

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It is important to consider all factors of immigration, such as visas, work permits, resident permits, and immigration fees.

Coordinate with your employees and with a consultation team to determine which of these requirements will be handled by the employee and the company.

Employment law and tax requirements

An employee cannot go into a new country without learning about its employment laws and tax regulations. Businesses may consider seeking professional advice on international tax laws.

One possible solution to this is a tripartite agreement, which is a document that lists down all the conditions between the employee, parent company, and target country.

Employment law and tax requirements
Key factors of a global mobility strategy

Compensation and benefits

Companies must create a solid compensation plan for their employees. Apart from salary and benefits, companies must also consider:

Duties and responsibilities

Of course, as employees move to a new place, they must be familiar with their roles in the company. Clearly outline your expectations and their responsibilities as they live in their new place.

It is up to the discretion of the company if the employees will perform the same assignments or be tasked with new ones.

Tips to optimize your global mobility strategy

Achieving global mobility may have its share of challenges, which is why you must come prepared. 

Here are some tips to help ease the transition:

Create an employee-first experience

The employee should be the priority. With some additional investment, companies can ensure their employees are able to relocate easily and without any hassle.

Not only will the process be easier, but it will increase employee satisfaction and retention.

Invest in the right technology

Having the right set of tools to help determine factors like cost, budgets, and communication will help streamline the process. Investing in the right technology will eliminate any obstacles that the employee may face.

Review international requirements

Take the time to double-check if employees are fully-equipped with everything they need to relocate. This includes the necessary travel requirements, funds, and taxation requirements.

Sometimes, missing just one document is enough to significantly set an employee back. Make sure all requirements are attended to and complete before they move.

Stay flexible

Your global mobility strategy must have clear set of plans and policies for everything to run smoothly. However, these plans can change at any instant, so it is best to remain flexible and adjust if needed.

Come up with appropriate countermeasures if something out of your control happens. That way, your employee can proceed with relocating with minimal disruption.

Stay flexible
Tips to optimize your global mobility strategy

Perfecting a global mobility strategy

Creating a perfect global mobility strategy takes a lot of time and there is a lot that can go wrong. That is why companies must invest in the best plan possible to keep their employees safe and compliant as they relocate.

Once the plan is carefully set in motion, opportunities for growth and development, both in the business and personally, will follow once the employee settles in.

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