The war to attract top talent has placed employee well-being in the spotlight, with many companies adopting hybrid work models to retain their best performers. This shift towards flexibility isn't just about work-life balance and mental health; it can also lead to cost savings and a reduced carbon footprint.

Given these advantages, it's natural to wonder if Global Mobility (GM) departments can adapt the hybrid model and offer similar flexibility to employees on international assignments.

The Rise of the Flexible Assignment

There are significant advantages to both employers and employees when it comes to flexible assignments. Here's a closer look:

• A Wider Talent Pool: Flexible assignments make relocation less of a barrier, opening up opportunities to a more diverse range of qualified candidates. Companies can tap into a global talent pool, finding the best person for the job regardless of location. A McKinsey report highlights the increasing importance of building a "borderless workforce" to access a wider range of skills and perspectives.
• Reduced Relocation Costs: Employers can potentially save money on relocation costs associated with traditional assignments. These costs can be significant, encompassing everything from shipping household goods to finding new housing and schooling for children.
• Improved Assignment Success Rates: Flexible arrangements can help address challenges like family integration, potentially leading to fewer assignment cancellations. According to a report by Weichert Mobility Services, family concerns are a major reason for assignment failure, with up to 40% of assignments failing due to family issues.

However, navigating this new landscape requires careful consideration of several factors:

• Regulations: Tax implications, social security regulations, and permanent establishment risks need to be addressed to ensure compliance. Consulting with international tax and legal specialists is crucial for navigating the complexities of global assignments.
• Technology and Onboarding: While technology facilitates remote work, some aspects of the job still require face-to-face interaction. Effective onboarding is crucial for successful integration into the new work environment, especially across cultures. Investing in virtual onboarding tools and intercultural training programs can help bridge the gap.

The EU: A Perfect Testing Ground

The European Union (EU) offers a unique environment for piloting flexible assignments due to several factors:

• Comprehensive Social Security Agreements: Existing agreements within the EU simplify social security arrangements for employees working across borders.
• Double Taxation Treaties: Treaties in place help avoid double taxation for assignees.
• High Concentration of Small Countries: The close proximity of EU member states makes flexible arrangements more manageable.

Navigating Flexible Assignments: An Example

Imagine this: a company headquartered in Austria has a new project in their Italian subsidiary. They need the expertise of a specific employee, but relocation isn't an option for the individual's family. Traditionally, this could mean searching for a new candidate. However, a more flexible approach offers a potential win-win.

By enabling a split work arrangement, with the employee working partly from home in Austria and partly on-site in Italy, both parties can benefit. EU regulations allow the employee to stay under Austria's social security scheme while working in Italy, with tax treaties preventing double taxation. This approach requires a strong initial onboarding period in Italy to ensure a smooth transition before transitioning to a more regular remote work schedule.

For the employee, this eliminates the major stress of family relocation. Spouses can continue working in their home country, and children avoid disruption to their social circles and education.

The advantages for the employer are clear: no need to cover children's tuition, lower relocation and rental costs, and potentially reduced partner support and expatriation allowance packages. This approach requires a strong initial onboarding period in Italy to ensure a smooth transition before transitioning to a more remote work arrangement.

Enhancing Well-being Through Remote Work

Flexible assignments offer substantial advantages for both employees and employers:

• Reduced Stress for Families: Keeping families together minimises the disruption caused by relocation, particularly for spouses who may struggle to find work or for children who need to adapt to a new school system.
• Cost Savings for Employers: Companies can potentially save on expenses like children's tuition, relocation costs, rental contributions, partner support packages, and expatriation allowances.

The ability to work remotely from their home country can benefit both single and family assignees. As mental health concerns become increasingly recognised, addressing factors like loneliness and isolation becomes crucial. For single assignees, maintaining ties with their existing social network can significantly improve their well-being.

Focus on Talent Mobility, Not Just Relocation

Ultimately, flexible assignments aim to achieve the core objective of Global Mobility: deploying talent where it's needed most and investing in employee development. Every situation is unique, with each country having its own regulations and each individual having their own preferences. Some thrive in new environments, while others prioritise stability. Recognising this diversity is key to designing effective future assignments.

Employees will readily embrace flexible work options if given the opportunity. The onus is on companies to offer compliant and well-structured programs that cater to individual needs. If you're considering adopting a more flexible approach to international assignments, seeking expert guidance can help you explore the possibilities while ensuring regulatory compliance.

For companies seeking to navigate the exciting world of flexible assignments, numerous resources are available. Consulting with specialists in global mobility, international tax law, and intercultural communication can help ensure a smooth and successful transition. By embracing flexibility, organisations can unlock a wider talent pool, reduce costs, and enhance employee well-being, ultimately achieving a competitive edge in the globalised marketplace.

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