For global companies, that means retaining existing employees is just as important as acquiring new ones. And with relocation on the rise, a global talent mobility framework that allows you to keep your best people, even when they move, is more important than ever.
The good news is that there are ways to avoid losing people to life plans. An Employer of Record partnership is arguably the best one. But before we get to that, let’s explore the implications of talent relocation for globally-minded businesses.
Employee relocation makes a comeback
In an age where it’s possible to hire anyone, anywhere, it may not be immediately obvious why companies would want to send employees elsewhere or retain those who choose to move. But there are, in fact, very compelling reasons to do so.
Firstly, as we mentioned earlier, talent retention is a vital priority in the era of global talent mobility. The more valuable an employee is, the more important it is to have a framework that can accommodate them should they choose to relocate.
With the resumption of international travel, relocation figures are up once more, and the ability to keep their jobs when moving to their dream location may soon become an expectation among highly skilled workers.
Secondly, while remote and hybrid work is certainly here to stay, there will always be great value in having boots on the ground in every territory where your company operates. Whether to test the waters in a new market or to create a more substantial presence, an on-site employee can be an invaluable asset.
The costs of employee relocation
There’s no getting around the fact that relocating employees is expensive. And given that around 40% of relocations don’t work out, getting it wrong can be disastrous for companies. To succeed, a global relocation policy should take into account a wide range of costs.
Getting there and setting up
Logistical costs are the most obvious: travel costs and visas at the beginning, and housing costs at the end. Depending on the benefits package offered, there may be ongoing supplemental costs to consider.
New country, new role?
Salary and contract adjustments may also have to be made, depending on conditions in the new country, and the length of service that the company expects from their now remote employee.
Handling compliance through local entities
Last, but definitely not least, are the steep costs of incorporating local entities to employ within a new territory and comply with tax and labour law regulations. This varies from country to country, but it invariably absorbs a great deal of time and money.
For a company sending a small number of people abroad, or trying to accommodate employees’ elective relocation, this simply may not be feasible.
Beyond the bottom line: additional steps to making relocations work
It goes without saying that moving to a new country is a drastic change, with important psychological, emotional and social implications. These can easily affect a person’s work life. To ensure they don’t HR teams need to provide adequate support to employees who find themselves in new surroundings.
If policies aren’t in place to provide this support, relocation is more likely to fail, incurring significant costs for the employer.
Streamline employee relocation with an Employer of Record
For global businesses, a global relocation policy needs to be well thought out, from all of these angles. One way to simplify the process, cut costs and reduce risks, is by partnering with an Employer of Record (EOR).
By leveraging the existing in-country entities of an EOR, businesses can sidestep the cost and risk of incorporating their own and move employees strategically into new, untapped locales.
Through our own network of international subsidiaries, Playroll enables our clients to hire in over 170 countries with built-in compliance, guaranteed by our in-country legal support. Employees who relocate can simply pick up where they left off, with payroll and HR management administered through our technology-enabled platform.
With Playroll, you never need to choose between talent and budget: your jet-setting employees can simply pick up where they left off, wherever they land. That creates new vistas of opportunity – and we’d love to talk more about them.