what means long term assignment

Everything you need to know about Long Term Assignments

Explore the world of long terms assignments in our latest blog post. Here we cover everything you need to know from planning to executing your company relocation policy, to ensure your assignments are a success.

Whether you’re considering embarking on a long-term assignment or managing employees on such assignments, it’s crucial to understand the intricacies involved.

Planning International assignments can be daunting if your company is implementing them for the first time. At MovePlus Mobility, we understand the intricacies of global assignments. In today’s blog post we’ll walk you through everything you need to know from planning to execution. Our mission is to empower HR teams like yours to make these assignments a success.

Long-term assignments typically involve an employee relocating to a different location, often in another country, for an extended period—typically one year or more. The objective? To fulfill specific business objectives, transfer knowledge, establish new markets, or simply nurture talent development in a global context.

Crafting a Comprehensive Relocation Policy

The cornerstone of any successful long-term assignment is a well-defined corporate relocation policy. This policy serves as the roadmap for your company’s approach to global mobility. Consider these key elements:

• Assignment Duration: Define what qualifies as long-term assignments within your organization. Is it six months, a year, or more?
• Compensation and Benefits: Ensure that employees on long-term assignments receive fair compensation, including salary, allowances, and benefits that align with their new location’s cost of living.
• Legal and Compliance: Stay informed about local labor laws and visa/immigration regulations. The tax implications of long-term assignments can be very complex. Employees may face tax obligations both in their home country and the host country, requiring specialized.
• Family Support: Acknowledge the role of families in the success of long-term assignments. Provide support services, such as spousal employment assistance and access to international schools.
• Cost Projection: Work with your RMC to run cost estimates of possible assignment scenarios to project the total cost for the company. Long term assignment come with higher costs due to several factors including extended duration, additional benefits (e.g., housing allowances, home leave trips), immigration and tax costs and repatriation.

Preparing Assignees for Success

Preparation is key to a smooth transition for your employees. Here’s how to get them ready:

• Cultural Training: Offer cultural orientation programs to help assignees adapt to their new environment.
• Language Proficiency: Encourage language training if necessary to facilitate communication and integration.
• Visa and Immigration : Facilitate the visa and immigration process, ensuring assignees have the necessary documentation to work legally in the host country.
• Relocation Services: Partner with a relocation management company like MovePlus Mobility to provide end-to-end support, including housing, transportation, household good shipping, school placement, and settling-in services.

Ongoing Support and Communication

Maintaining open lines of communication with assignees is essential for their well-being and productivity. MovePlus Advocates have ongoing regular check-ins with assignees so we can help address any challenges they may face.

Repatriation and Knowledge Transfer

The end of a long-term assignment is often overlooked but equally important. Repatriation should be just as well-planned as the initial assignment. Consider:

• Knowledge Transfer: Ensure that knowledge acquired during the assignment is effectively transferred to colleagues within the organization.
• Career Planning : Discuss career plans with returning assignees and explore how their newly acquired skills can benefit the company.

Partner with MovePlus Mobility

To streamline the entire process, it’s beneficial to partner with a relocation management company. Our expertise in corporate relocation and global mobility ensures a seamless experience for both HR teams and assignees. From relocation policy consulting to on-the-ground support, we’ve got you covered.

We invite you to schedule an introductory consultation with our team. Let’s discuss how MovePlus Mobility can tailor our services to meet your unique needs and help you navigate the world of long-term assignments with confidence.

Information

Have a question? HK: + 852 5700 8250 US: +1 415 666 2130 UK: +44 208 103 3200

Contact us at [email protected]

© Copyright MovePlus Mobility 2024

• Mobile Equity Services
• Mobile Workforce Management
• Mobility Tax Compliance and Consulting
• Private Client Services
• In the News
• Resource Center
• My GTN Portal

Pros and Cons of Different Assignment Structures for Mobility Programs

As companies adjust to the new reality of work and reassess their mobility programs, there is an opportunity for them to examine the costs associated with running their mobility programs and explore innovative solutions. We are witnessing a renewed interest in mobility as companies seek to adopt the best structure for their business and employees. While non-traditional forms such as remote and hybrid work are becoming more prevalent, there is also renewed interest in both short and long-term assignments. 

This innovation has already been reflected in the evolution of new mobility policies supporting employees working from outside of their usual office locations, including “ Work from Anywhere ” or “Virtual Assignment” policies. Many companies have also increased their use of non-traditional assignment types such as business travelers or short-term rotations.

Download part one of our "Future of Mobility Survey: Remote Work" to discover how HR and mobility managers are creating policies that tackle the unique challenges posed by a remote workforce.

Based on these evolving trends, it may be easy for organizations to overlook the use of more traditional mobility arrangements to support their business growth and talent management goals. However, long-term assignments, short-term assignments, and permanent transfers each have attributes that warrant consideration when determining the most appropriate way to meet the objectives for your company and employees.

As mobility programs continue to evolve, it is important to understand the advantages and disadvantages of traditional assignment types and permanent transfers. Let's take a closer look at the benefits and drawbacks of these options.

Traditional assignment types – long-term and short-term assignments

One of the most commonly used relocation types is an “assignment.” An assignment is the relocation of an employee from one country to another for a specific period of time. A long-term assignment will generally exceed one year, where a short-term assignment will generally be shorter than one year. Below we have outlined some of the benefits and drawbacks for these assignment types.

Benefits and drawbacks of long-term assignments

Long-term or expatriate assignments have long been a popular option for companies who need to transfer or obtain expertise, set up new entities/markets, or provide career development opportunities, especially for future global leaders within the organization. Here, the longer-term nature of the assignment lends itself to building better long-term relationships and in-depth knowledge that can be invaluable to your organization.

From an employee perspective, another benefit of a long-term assignment is the possibility of remaining on their Home country payroll. In this way, employees can often:

• Receive compensation in their Home country currency, avoiding the need to convert Host country currency in order to pay Home country expenses such as student loans or mortgages.
• Participate in the Home country benefit plans. For example, a US citizen/resident employee on a 3-year assignment to the UK can continue contributing to the Home country 401(k), flexible spending plans, and will remain covered by Home country incentive compensation plans.
• Continue participation in Home country social security. In this way, there will be no break in the required time period to meet the coverage requirement for receiving the social security payments upon retirement. For employees at a later stage in their career, continued participation in Home country social security may be a deal-breaker.

Despite these benefits, a major drawback of the long-term assignment is often cost. Assignments can be more expensive to the company due to several factors, including:

• Providing additional allowances and benefits for the assignee. Common examples of these additional compensation elements include cost-of-living adjustments, hardship allowances, Host country housing, and moving expenses.
• Meeting additional compliance requirements. Employees may now have Home and Host country tax filings. And your organization may have Home and Host country reporting and withholding obligations, including related administration expenses such as the cost of establishing and running a shadow payroll.
• Implementing a tax reimbursement policy for your assignee. Tax equalization remains the most common policy for long-term assignments.
• Handling on-going costs incurred for immigration, tax planning, budgeting, internal administration, etc.
• Failing to benefit from the expertise gained by your assignees by not retaining them as employees or finding a suitable position to use their new skills upon repatriation.

It is important to note that proper planning and policies can help to reduce or eliminate many of these drawbacks.

As many factors, including employment, tax, and immigration law, and the availability of bilateral tax and social security agreements can impact the tax and payroll requirements for an assignment, it is important to consult with your mobility tax and legal advisors to make sure the long-term assignment is structured in an appropriate way.

Benefits and drawbacks of short-term assignments

Short-term assignments may allow companies to achieve several of the same benefits as longer-term scenarios, while also addressing several of the challenges. Benefits to the company of using short-term international assignments include:

• Like long-term assignments, an employee on a short-term assignment will often continue to receive compensation in the Home country payroll, seeing the same benefits as described above.
• The company may be able to offer a more modest compensation and allowance package to the employee, helping to reduce the overall tax and assignment costs to the company.
• For US tax purposes, certain reimbursements such as temporary lodging and per diems may be paid tax-free for certain temporary assignments of one year or less. Other countries may have similar rules for temporary assignments.
• Depending on the availability of income tax treaties and social security agreements, Host country taxes may be avoided or limited. For example, an employee on a 5-month assignment from the US to the UK may be able to avoid UK income tax if they will spend less than 183 days in the UK during a 12-month period, remain on the US payroll, and have their compensation expenses continue to be borne by the US entity. The availability of a social security totalization agreement would also provide for the ability to continue on US rather than UK social security through obtainment of a certificate of coverage from the US Social Security Administration.
• Short-term international assignments could result in a larger pool of potential employees for the international assignment program.

Despite these additional benefits, the shorter duration of the assignment may ultimately not provide enough time to allow the organization and assignee to accomplish all the objectives of the assignment. Additionally, the employee may not have enough time to fully “settle in” and develop relationships with the Host country office and clients.

Short-term assignments, as compared to a long-term or expatriate assignment, typically (but not always) result in a lower tax and assignment cost to the company. However, it is important to consider factors that may lead to additional cost, such as:

• Depending on location and the scenario, paying an employee under the expatriate policy may be less costly than providing a per diem and reimbursement of expenses.
• Administering a short-term international assignment may take more time than a long-term assignment. This could happen due to the length of the short-term assignment changing and requiring more constant support by the program administrator and/or tax services provider (e.g., monitoring the assignment).
• There are certain exclusions (e.g., Foreign Earned Income, Housing) and foreign tax credits available on a qualifying employee’s US federal individual income tax return that help alleviate double taxation that might occur as a result of an international assignment. These exclusions and credits may result in a lower tax cost to the company if the assignment is just over one year, rather than short-term.
• An employee on an expatriate assignment will often break state residency during the assignment period; an employee on a short-term international assignment generally will not break state residency. Thus, the state tax cost for the company will often be higher for the short-term international assignment.

Benefits and drawbacks of permanent transfers

Another commonly used relocation type is a permanent transfer or “transfer.” A transfer is a one-way relocation of an employee to a Host country for an indefinite period. In a typical transfer scenario, the individual will become an employee of the Host country entity, with Host country payroll and benefits.

Transferees will typically receive less company support than assignees. For example, instead of receiving allowances designed to keep an individual in a neutral purchasing position in comparison to their Home location (i.e., through provision of housing, cost-of-living, and other allowances), a transferee may receive a local pay package with limited or no allowances. Instead of tax equalization, they may only receive limited tax compliance assistance such as tax return preparation in the Home and Host countries for the year of transfer. Due to reduced support, transfer cases may initially have lower overall costs for the company than assignments.

Permanent transfers are often considered in scenarios where specific skills are needed/not available in the Host location, where the cost of an assignment is considered too high, or for employee-initiated moves . Because of the transfer to local payroll, administrative costs and complexities may also be reduced as the Host country entity would handle any reporting or withholding obligations. In addition, the risk of creating a taxable presence for the Home country entity (e.g., permanent establishment) is also reduced as the individual has severed employment ties in the Home country. However, despite these potential benefits, a transferred employee will likely receive compensation in Host country currency, and Host country benefits may differ from Home country benefits. Transferees are generally not eligible to contribute to Home country retirement/benefit plans such as the 401(k) plan for US employees, or contribute to Home country social security, which may be a significant drawback for those that are at senior or executive level or those approaching retirement. Additionally, employees take on exchange rate risk, potential cost-of-living issues, and potentially higher taxes.

From a talent management perspective, it may also be more difficult or costly to later relocate an employee who has been transferred rather than assigned to a location. A transferee will now be tied to a pay package and cost-of-living in the Host location, which will create a new point of reference for future moves.

What is the best relocation type for your company?

As has been shown, the type of relocation best suited for a given employee and your organization will be based on many factors. Key questions to consider include:

• Why is the employee moving? Is the move initiated by the individual or needed by the organization?
• What are the organizational goals relating to the move? Is the timeline for the proposed relocation reasonable to achieve these objectives?
• Does the employee’s career and personal goals align with the proposed scenario?
• Does the scenario support the longer-term career development objectives for the employee—e.g., will there be ongoing support to make sure the investment in the employee is not lost due to not having an appropriate repatriation plan?

Effective management of cross-border assignments can help firms that are trying to grow their business in key global markets while simultaneously reducing costs. There is no one-size-fits-all approach, hence, every assignment type and policy should be closely reviewed by the company based on the specific assignment objectives.

If you have questions about different assignment structures or how they could impact your global mobility program, schedule a free consultation  with our team. We are happy to discuss your specific situation.

Author: Mark Tirpak

6900 Wedgwood Rd N, Ste 400

Maple Grove, MN 55311

+1.888.486.2695 | [email protected]

• Our Services
• Mobile Equity
• Mobile Workforce
• Mobility Tax
• Private Clients
• Your Resources
• Global Coverage
• Transition Process
• Philanthropy

© 2024 Global Tax Network      TERMS OF USE AGREEMENT       PRIVACY POLICIES       PRIVACY AND SECURITY

Support for you during the COVID-19 pandemic

31 May International Long-Term vs Short-Term Assignments

Global mobility professionals possess the difficult task of identifying the best candidate for an open position for an international assignment. While all may seem easy, relocating an employee internationally requires analysis and strategy.

As we go along another year with COVID-19, mobility leaders should keep themselves posted on the latest developments in the global mobility landscape. With more innovative options for assignments such as virtual assignments or the work-from-anywhere structure, mobility programs are becoming more and more complex.

But all these newer innovations can lead to global mobility professionals stuck in tunnel vision, overlooking the more traditional types of mobility arrangements. Long-term and short-term international assignments are the most common types that mobility professionals consider.

The length of time that qualifies an assignment to be considered long-term or short-term varies from company to company, but the general rule of thumb is that long-term assignments will range from 12 to 36 months in duration while short-term assignments may last from 3 months to a full year.

Defining the best assignment option can be tricky. Several intertwined variables are involved depending on the candidate and the available position. Moreover, relocation is a top stressor not only for the assignees themselves but for their families.

So, to increase international assignment success rates, mobility teams need to learn which option will best yield favorable results for the company.

One way to identify the best option is to see both the pros and cons of each assignment type.

Global Tax Network and other firms in the global mobility space help us by pointing out these advantages and disadvantages.

Long-term assignments

This assignment type is a popular choice for companies who desire to obtain specific expertise, target new markets, or offer career development opportunities for candidates who show exemplary performance within the organization. The nature of this type of assignment helps the assignee to build strong relationships and more comprehensive knowledge about the organization that can be valuable for the company.

From the assignee’s perspective, one benefit they gain from a long-term assignment is the possibility of being on their home country’s payroll. This way the employee can:

• avoid having to go through tedious and – at times – unfair currency changes to enable seamless home country payments such as student loans and mortgages 
• continue participation in his or her home country’s social security. This will prevent breaks in the required period of contributions so that they could meet the requirements for receiving social security payments in retirement
• enjoy his or her home country benefit plans

Long-term assignments are also seen to be the less risky option of the two types. With COVID-19 still around, it would make sense that employees in long-term assignments be better positioned and entail lesser movement in the whole relocation process. They can have longer immigration status and housing than short-term assignees.

A major drawback of long-term assignments is mostly cost-related. Long-term assignments can be more expensive due to:

• provision of additional allowances and benefits such as cost-of-living adjustments, host country housing, and moving expenses
• on-going costs from immigration, budgeting, tax planning, and more
• additional compliance requirements that are mandated by the host and home country.
• implementation of tax reimbursement for the assignee
• failure to benefit from the expertise acquired by the assignee by not retaining them as employees upon repatriation

Another thing to note is that employee dissatisfaction with long-term expatriates is known to be a common problem. It can be difficult for an assignee’s family members to become accustomed to a new environment causing a lot of stress and unfamiliarity. 

Short-term assignments

Short-term assignments may also offer the same benefits as long-term ones while addressing other points as well. Here are their advantages:

• employees receive compensation from their home countries to prevent currency exchanges that will cause delays in expenditures in the home country
• the company may offer modest compensation and allowance packages to mitigate preventable extra costs
• for tax purposes in the United States, temporary housing and per diems may be paid without taxes for some temporary short-term assignments

dDepending on the tax treaties imposed by a host country, assignees can avoid taxes if they do not exceed a certain time threshold

Short-term assignments might limit an assignee’s ability to achieve set goals and objectives due to time constraints. The nature of this type of assignment will make it more difficult for assignees to settle in and develop strong working relationships with both clients and colleagues in the host country.

Moreover, there are cost implications in shorter assignments from several factors such as:

• the longer processes in administering a short-term assignment caused by its susceptibility to change that require more constant support from mobility teams
• In some cases, the provision of a per diem and reimbursements will cost more than paying an employee under an expatriate policy
• higher state tax costs when a short-term assignee breaks state residency in the given period

Determining which assignment type will reign supreme will ultimately depend on the position and its objectives. Let’s just not forget how much influence employees now have over mobility policies and assignment practices, so it’s important for mobility experts to keep an eye on the latest developments in the field. 

Living Room

Dining Room

• Global Relocation Services
• Global Consulting
• Partnerships
• Atlas World Group
• Social Responsibility

Relocation Insights

International Long-Term Assignments

International long-term assignments enable companies to expand their global reach, extend their network of resources, and increase in-house experience, while building a diverse and culturally aware workforce. Long-term assignments are generally a minimum of one year and may last 3-5 years total. The benefits offered typically support both the employee as well as their family.

Program Development

Historically, long-term assignment programs were unilateral – one policy applicable to all employees – and used to deploy highly-skilled talent. However, as globalization continually changes business requirements along with the need to grow and retain a strong global talent pool, some of the reasons companies use long-term international assignments have changed. The employee experience has also become a key consideration of talent retention and growth. As such the need for flexibility, scalability, and efficiency through cost containment has changed the long-term assignment program landscape.  With companies taking different approaches to their talent strategies, more are using alternative program configurations, such as tiered policies (often by assignment objective or job level), or structured core/flex programs which provide a set of core benefits to each tier, with flexible options also delineated by tier. For example, in a structured core/flex program, core benefits across all tiers may include compliance items such as tax counseling and immigration assistance as well as basic relocation support such as temporary living, travel to/from the host location, household goods shipment and home leave. A lower-level tier may have only a few flex options available such as language and cultural training or a small miscellaneous expense allowance. A higher tier may include a greater number of flexible options, such as a pre-assignment trip, education assistance, etc. There are many configuration options to support the need for employee flexibility and contain cost, but structure is an essential component of a core/flex program and helps keep exceptions to a minimum.

When developing a long-term assignment program, these initial steps are recommended:

• Consider the overall company culture, mobility philosophy, business objectives of the international long term assignment program, and common assignment  objectives.
• Identify employee job levels and demographics.
• Reflect on the importance of the employee experience as well as how the assignment policy can support DEI  initiatives.
• Determine the potential traffic patterns, if possible, to estimate the anticipated cost of the benefits under consideration. 

These initial steps will, in turn, help the company determine the desired program structure and ultimately, the policy parameters. In addition, having an established, comprehensive program with clearly defined parameters will help the company focus on global compliance with applicable immigration, tax, and employment laws.

A brief description of the components commonly found in international long-term assignment programs follows. It is important to note that not every component has to be included to have a successful program. The business reason for the assignment, regional variances, company culture, employee experience and cost all play a part in a company determining what components are included. It is also important to note that there may be variations on the descriptions included below.

International Long Term Assignment Program Components

Enable cookie tracking

You must enable cookie tracking to continue. For more details please consult our Privacy Policy.

• 02074940118
• [email protected]

Types of Global Mobility Assignment (A Guide!)

Anne morris.

• 19 September 2019

IN THIS SECTION

To achieve the flexibility and agility required to respond to changing business demands while operating within a cost-effective and compliant infrastructure, organisations should explore different types of global mobility assignments.

With a varied global mobility portfolio, organisations can optimise the return and value of its mobility activity by ensuring the most appropriate and cost-effective type of assignment is utilised for any given need, such as duration of assignment (short term, long term, permanent?), location (developed or emerging nation?) and overall strategic aim of the assignment (overseas expansion, talent development?).

Types of Global Mobility: Business travel

Business travel involves short-term trips, typically enabling individual employees to carry out specific business-related activities, such as attending conferences and meetings, negotiating contracts and networking, in a different country for a brief period.

Compared with other mobility types, business trips may be less costly and less administratively onerous where employees travel without a work permit. However, for many organisations, the volume of business travel is such that as a whole, it acts as the biggest drain on mobility budgets.

Since business travel tends to occur without triggering any organisational global mobility procedure or support, it can be challenging for organisations to have an accurate understanding of the total financial outlay. This is further complicated by expenses, with reimbursement processes for globally mobile employees creating an additional lawyer of cost and budget management.

Business travel also presents a range of immigration and tax compliance risks for both the employer and employee.

Local immigration laws constantly change and current trends in global immigration policy are seeing a move towards more stringent monitoring and management of business travellers. Where employees travel without first checking against local immigration rules, any reliance on a visa not specifically designed for business purposes, or travelling without express, prior work permission for the intended activity, could see the employee detained at the border at the discretion of the immigration officials.

Employees who travel extensively on business could also become ‘accidental expats’ by involuntarily or unknowingly triggering legal or tax rules that re-classify them as resident in the host country.

In response, employers are advised to support their travelling employees through ongoing training and explore technology solutions to improve data collection and storage in relation to monitoring business travellers’ movements and managing the associated compliance with immigration and tax regulations.

Types of Global Mobility: Short-term assignments

Short-term overseas assignments can be a flexible approach to developing talent within your organisation, by offering key employees highly valuable international exposure and experience, with potential career progression into managerial, executive and leadership roles on their return.

Short-term assignments can also enable employees to gain first-hand insight and industry knowledge to bring back and use to improve performance and operations in their home workplace.

There are however various inherent risks of short-term assignments, including seeking the relevant immigration approvals, which can become onerous and costly given the short-term nature of the assignment.

You will also need to ensure that the employee is aware of the relevant legal and cultural differences to enable them to maximise their time on assignment, and avoid any adverse impact on the success of the assignment or falling foul of the law.

Types of Global Mobility: Long-term assignments

Long-term overseas assignments can support longer-term business growth objectives either by establishing a foothold in a new regional market or driving growth efficiency programmes through existing operations.

Deploying existing employees can also be a more effective alternative to recruiting overseas in achieving the commercial objective, where knowledge of the organisation is critical and timescales are challenging.

One of the main challenges in long-term assignments however is controlling costs and ensuring their commercial viability.

In particular, you will need to factor in relocation costs for both the employee and their family, operational costs of providing ongoing support for supporting the assignee and ensuring the compensation package is at a level, which offers an attractive financial incentive that will motivate the employee. When assessing the value and return on investment of a long-term overseas assignment, you will also need to consider the cost of repatriation at the end of the assignment.

Failure to sufficiently invest in the assignment, either from the outset or throughout the lifecycle, especially any failure to offer sufficient personal support for a long-term assignee during their time abroad, can result in expatriate failure , early repatriation and employee attrition.

As an employer you have a moral responsibility and a duty of care, not to mention a vested financial interest, not only to ensure the personal safety of an employee but also their overall wellbeing and happiness.

Indeed, ensuring that you maintain a supportive, open and communicative working relationship throughout a long-term assignment can mean the difference between retaining the services of an employee either during or at the end of the assignment, and losing their global talent to a competitor.

Types of Global Mobility: Permanent relocations

For employers, permanent relocation is increasingly being seen as a cost and resource-intensive option, which may be too rigid and long term for the organisation’s requirement.

Administering the move and preparing the employee and their family for relocation is a financial commitment from initial orientation, destination and arrival services onwards.

Pre-travel training for the employee and their family will also be essential, for example, to overcome any language or cultural barriers.

It does however provide a more secure alternative to hiring someone local who cannot offer the organisational insight and knowledge necessary to drive forward a specific business aim, such as a regional reorganisation programme or expansion strategy.

Importantly, local visa rules may restrict and determine the availability of a permanent relocation as an option for global mobility. This means this type of global mobility is generally not suited to anything other than to fill skills gaps and to manage operations. If you are looking, for example, to transfer expertise or develop new talent within your company or organisation, either short-term or long-term assignments or even frequent business travel, are likely to be viable options from an immigration perspective.

Managing a global mobility portfolio

Global mobility can offer many advantages but also carries risks , depending on the type of global mobility assignment involved.

Importantly, travel and work rights between the EU and the UK are likely to be overhauled following Brexit, and organisations will need to quickly adapt to maintain a legally compliant global mobility programme involving employee movement into, out of and through Europe.

When assessing the benefits and risks of the different types of global mobility, there are various ways that you can help to maximise the potential success of an overseas assignment. In particular, by planning ahead, giving assignees sufficient support, training and time to prepare for their trip, both practically and mentally, will be critical factors in the overall programme outcome .

More and more, employers are segmenting their expatriation policy, not just by assignment duration (long-term versus short-term) but also by expatriate assignment purpose (strategic assignment versus developmental moves or moves requested by the employees themselves) to achieve better alignment between the mobility programs and the business/talent needs of the organisation.

Policy segmentation is a way to address the limitations of the one-size-fits-all types of policies, reconcile the cost control versus international expansion dilemma in a context of budget constraint by shifting budget from less essential moves to assignment that are critical to the business, present options to management to understand the cost and business implications of sending expatriates, manage effectively exceptions into well-defined framework and process as opposed to one-to-one ad-hoc deals and reconcile talent management and reward.

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.

She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.

Anne is an active public speaker, immigration commentator , and immigration policy contributor and regularly hosts training sessions for employers and HR professionals

• Anne Morris https://www.davidsonmorris.com/author/anne/ Employment Case Law Update May 2024
• Anne Morris https://www.davidsonmorris.com/author/anne/ Updated Absence Rule for EU Settled and Pre Settled Status Holders
• Anne Morris https://www.davidsonmorris.com/author/anne/ Switching from Pre Settled to Settled Status
• Anne Morris https://www.davidsonmorris.com/author/anne/ EU Settled Status & Absences from UK

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility .

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners , we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.

Contact DavidsonMorris

Sign up to our award winning newsletters, find us on:.

Trending Services

DavidsonMorris Ltd t/a DavidsonMorris Solicitors is a company Registered in England & Wales No. 6183275

Regulated by the Solicitors Regulation Authority No. 542691

Registered Office: Level 30, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AB

© Copyright 2024

Terms of Use | Privacy Policy | Cookies Notice

Website design by Prof Services Limited . 

CLICK HERE to access our printable catalog

Helping Students Plan Long-Term Assignments and Projects

Posted by Erica Warren on May 25, 2021

Planning the Overall Approach:

Planning the details:.

Share this post

← Older Post Newer Post →

Leave a comment

Please note, comments must be approved before they are published.

• News Mobility News Mobility Minute Mobility Magazine
• Events Conferences Webinars Corporate HR Networking
• Learning Certified Relocation Professional Certification Global Mobility Specialist Certification Learning Portal
• Research ResearchPage Infographics
• Public Policy
• My Tools My Account Career Portal Forms Portal Learning Portal Mobility Magazine

Is This the End of the Long-Term Assignment?

This article originally appeared in the January 2019 edition of Mobility magazine .

Companies are seeing a rapid increase in permanent transfers

It’s no secret that companies have been increasingly using alternatives to long-term assignments to manage their mobility programs in recent years. While many companies still expect their numbers of long-term assignees to increase, successive surveys by ECA International have found that the rate of increase is slowing each year. In contrast, the use of short-term assignments, commuter assignments, and permanent transfers is on the rise.

ECA’s January 2018 “Permanent Transfers Survey” found that nearly 40 percent of international transfers lasting more than one year are made on a permanent basis, where there is no expectation or commitment for the employee to return to the home country. Four years earlier this figure was only 22 percent. Nearly two-thirds of companies have seen the proportion of permanent transfers increase in the last three years, and a similar number forecast further increases in the next three.

Given this rate of increase, will traditional long-term assignments soon become a thing of the past?

Why Permanent Transfers Are On the Rise ‍ As more employees want and expect to be internationally mobile to satisfy their own professional and personal ambitions, 38 percent of companies reported that they will increasingly use permanent transfers to meet employee demands. However, the results indicate, overall, that the rise is being driven primarily by the needs of businesses rather than employees.

The most common reason for the increasing use of permanent transfers, cited by 65 percent of companies, is that they are more cost-effective than traditional long-term assignments. This may be due to employees being more likely to be employed on local salary terms and provided with fewer benefits than assignees.

A little more than half of companies expect their permanent transfers to increase simply because the role requires the employee to be in the host location permanently. Where companies are struggling to fill a role with a local national, they must search internationally to source the talent they need. It makes sense to first advertise to interested parties, offering a cheaper permanent transfer package before resorting to incentivizing less-eager candidates with a more generous assignment package.

When to Use Permanent Transfers ‍ The main reasons companies use permanent transfers are to fill skills gaps and to manage operations, which are also common purposes of international assignments. Companies are far more likely to use assignments, however, as a way of transferring expertise or corporate values. Broadly speaking, then, companies are more likely to use assignments for strategic purposes, whereas permanent transfers are more suitable when there is simply a job that needs to be done. That may depend on where the job is based, however; assignments are more likely to be used for postings to more challenging locations—the engineering and construction sectors, for example, use permanent transfers less than the finance and technology sectors, which tend to be based in well-established urban centers.

Permanent transfers work better for some combinations of home and host countries than others. The top 10 home-to-host combinations reported in the ECA survey suggest that geographical proximity and the existence of a common language influence the likelihood of a transfer being made on a permanent basis. Another finding was that companies headquartered in Europe are expecting a bigger rise in the use of permanent transfers than other regions; this may be because it is easier for Europeans to integrate into other European countries due to similarities in culture and the relatively short distance from home, plus the fact that it is easy for employees to relocate permanently within the European Union without visas.

Most importantly, unless they have personal reasons for wanting to relocate and request a transfer themselves, employees are unlikely to undertake an international move if it makes them poorer. Although companies look to provide leaner packages for permanent transfers compared with international assignments, if the employee is moving at the company’s request, the package on offer still needs to ensure that they will be no worse off than they would have been at home.

Are Permanent Transfers Cheaper?

Relocation Costs ‍ Just over 40 percent of companies reported that they provide a less generous package of relocation assistance for their permanent transfers than they do for their long-term assignees, but this finding may be due to companies having different understandings of what counts as a “relocation benefit.” A comparison of one-time benefits typically provided within long-term assignment and permanent transfer policies suggests that average levels of provision are broadly similar for each, whereas ongoing benefit provision tends to be more generous for assignees.

Salary ‍ It is intuitive to pay a host-based salary for someone being transferred permanently to another country, and that is what the majority of companies do. Salaries for international assignments are more commonly calculated using a home-based approach, which is often perceived as being more expensive due to the various included allowances. However, paying a host-based salary does not automatically guarantee cost savings.

For more information and survey results, including an example comparing the costs of a typical home-based salary calculation, with COLA and mobility allowance, to the host-based salary for the equivalent job grade for a move from the U.K. to the U.S., read the rest of this article in the January 2019 edition of Mobility magazine .

Immigration help for your business

• News & Reports

What to Consider When Sending a Foreign Employee Overseas for Work

Nov 1, 2023.

In today’s interconnected world, companies often deploy their employees on overseas assignments. While there are many different factors to consider when sending a U.S. worker abroad, the situation gets more complicated when dealing with foreign national (FN) employees. A company needs to take various steps to ensure FN employees adhere to both U.S. immigration laws and the regulations of their host country.

Assessing the Impact on Visa Status

Before sending an FN employee on a short- or long-term international assignment, it’s a good idea to consult your immigration attorney to evaluate how the overseas work assignment may affect their current visa status, be it positively or negatively.

For example, employees holding H-1B visas are not considered in “H-1B status” while working outside the U.S. This means that the days spent abroad do not count towards the maximum six years allowed in the U.S. under H-1B status. Consequently, a temporary work assignment overseas could extend the duration an employee is permitted to work within the U.S.

Conversely, an employee who has obtained a green card through your company may have specific compliance requirements. Lawful permanent residents (LPR) must spend at least six months of the year within the U.S. to maintain their green card status. Failure to meet this requirement could result in losing the green card. While exceptions exist, it’s a good idea to get guidance from your immigration attorney before proceeding. If an LPR employee needs to travel abroad for an overseas assignment lasting six months or more, you may want to consider applying for a re-entry permit ( Form I-131 ).

Visa Requirements for the Host Country

Although your FN employee is presently employed in the U.S., the visa regulations in the country they are sent to will be contingent on their current citizenship. It’s essential to understand the specific visa requirements for your FN employee’s travel to and employment in the foreign country. You’ll also need to factor in the time frame required for obtaining the necessary visa.

Interested in our biweekly business immigration newsletter?

Enter your email below.

Thank you for your interest in our BIZ newsletter!

We’ll be in touch.

Payroll Considerations for International Assignments

When sending an FN employee on an overseas assignment, keeping them on the U.S. payroll is typically a good idea. Transferring them to a foreign company’s payroll could result in a loss of their employee status with your U.S. company, potentially jeopardizing their current visa status. In such cases, your company might need to initiate a new petition with USCIS before the FN employee can return to their U.S. position with approved visa documents.

Additionally, the U.S. has tax treaties with several foreign nations, enabling reduced tax rates and exemptions. However, if the host country lacks such a treaty, standard tax obligations apply.

Valid Travel Documents

An often overlooked but crucial aspect is verifying that the FN employee’s travel documents are up-to-date. You want to make sure they can re-enter the U.S. on their existing or previously-held visa. Consult with your immigration attorney to confirm the FN employee has a valid U.S. visa stamp in their passport, a passport that remains valid for re-entry, and evidence of ongoing employment with the U.S. company, typically shown by recent pay stubs and, if necessary, a sponsorship letter.

Which Service?

Looks like you were working on a application just now. Applicants typically only require one service at a time.

You unlocked a $50 discount!

Congrats! Because your friend referred you, your application with Boundless is discounted. Start the application with Boundless within the next 14 days, and you'll save $50.

Mobility Basics: Common international assignment allowances

When calculating remuneration packages for globally mobile employees, many companies include additional allowances in recognition of the assignment that the employee is about to undertake.

The assignment allowances that companies most commonly provide are mobility allowances and location allowances. They are usually calculated as a percentage of home gross salary but paid net.

Location allowances , sometimes called hardship allowances, are paid in recognition of the challenges assignees and their families face when adapting to a new environment. Allowances vary by location in line with the degree of adaptation that is required for a move, and typically reach up to 30%.

It is worth noting that COLA is not considered an assignment allowance. The term COLA stands for ‘Cost of Living Adjustment’ and accounts for the difference in living costs between the assignee’s home and host locations. The purpose of COLA is to maintain assignees’ home country purchasing power while on assignment in the host country, and the amount can be positive or negative – it is a differential rather than an allowance.

Why do companies pay assignment allowances?

Companies have different reasons for paying assignment allowances. The intention may be to compensate assignees, to incentivise them, or to contribute towards monetary costs.

Compensation

Just over 60% of companies who pay location allowances do so as a means of compensating assignees for the difficulties they may face when adjusting to life in the host location. This is certainly the purpose for which ECA’s Location Ratings system is designed. In contrast, only 30% of companies who pay a mobility allowance do so with a view to compensating assignees and their families for the general impact of uprooting and relocating overseas. 

54% of companies view their mobility allowances as a means of motivating employees to accept assignments. Providing a financial incentive can be an essential recruitment tool: more than half the participants in ECA’s Managing Mobility Survey cited “compensation considered insufficient” as a concern for potential assignees, leading to difficulties with recruitment. 

On the other hand, location allowances are not specifically designed to act as an incentive for employees to accept assignments in less desirable locations, but about a third of companies do use them this way. 

Covering costs

Only 11% of companies intend mobility allowances to cover the assignees’ miscellaneous expenditure associated with relocating. Presumably this is because most companies provide a dedicated one-off relocation allowance or ‘settling-in’ allowance to assignees at the start of their assignment for this very purpose. Even fewer companies (just 3%) provide location allowances to cover expenditure on practical measures taken to improve life in the host location, e.g. the purchase of air purifiers. Location allowances are in no way designed to reflect the monetary costs of such measures, so it is more appropriate for companies to pay for these separately.

Essentially, the different motivations for providing assignment allowances come to the same thing. Companies pay these allowances to ensure that the package being offered is attractive enough to promote mobility and overcome a candidate’s concerns about temporarily relocating abroad.

When are assignment allowances provided?

When applying the home-based approach.

Mobility allowances are paid to assignees by around two-thirds of companies applying the home-based approach . Location allowance systems are even more prevalent; some 78% of these companies have such a system in place. 

This is not surprising, given that one of the main reasons companies apply the home-based approach is to ensure that the assignee does not suffer financially regardless of which location they are assigned to. In the absence of a financial incentive such as a mobility allowance, employees may not be eager to relocate. Similarly, if location allowances are not provided, assignees may avoid locations that are perceived to be challenging to adapt to.

When applying the host-based approach

Paying mobility and location allowances as part of a host-based salary system may initially seem counter-intuitive, as a common reason to use this approach is to ensure equity of pay between assignees and their host-country peers (who would not receive such payments). Yet location allowances are provided by 43% of companies applying the host-based approach and mobility allowances by just over a third. 

Companies can have different motivations behind applying the host-based approach, however. Topping up a local salary with allowances may be justifiable when the main aim is to promote equity between assignees from different countries working in the same location, or to encourage mobility from high-salary to low-salary countries. 

For short-term assignments

Many companies perceive that ‘hardship’, or difficulty adapting to conditions in a particular host location, has an impact regardless of the length of the assignment. It is therefore not uncommon for location allowances to be paid to short-term assignees – nearly 50% of companies do so. 

However, relocating on a short-term basis is generally seen to bring less disruption to the assignee and their family than a long-term assignment, particularly as home accommodation arrangements are usually unaffected and dependants are rarely uprooted. Therefore, only a quarter of companies always pay short-term assignees a mobility allowance. 

Assignment allowances are used to incentivise mobility and compensate assignees for the costs and challenges of relocating. Mobility allowances are usually intended as an incentive to relocate, whereas location allowances are designed as compensation for the difficulties an employee may experience when trying to adapt to a new location. Both these allowances are typical elements of the home-based approach, but also feature (less commonly) in other remuneration approaches. 

ECA’s Location Ratings ensure your assignees are appropriately compensated for the differences in adjusting to life in a new country using an objective scoring system that creates equity across your mobile population. Our Location Allowance Calculator provides detailed point-to-point breakdowns of the scoring and a downloadable matrix of allowances for 480 locations.

Many statistics in this report come from our Expatriate Salary Management Survey , which examines trends and best practice in international assignment pay and policy. The next survey opens in April – take part to get a free copy of the results!

Our experienced consultants can provide expert advice about different remuneration models , enabling you to choose the model that best fits your mobility strategy and assignee population. For more information, please get in touch!

Pros and cons of an international assignment

Will it boost or harm your career.

• February 1, 2021

There is no suspicion that working abroad is romantic. Living in a culture with different languages, habits, and working styles is an exciting and once-in-a-lifetime experience. It can not only much promote your career development, but also broaden your horizons. However, what many companies now call “global” assignments has some disadvantages. Some parts of the world are indeed dangerous for some visitors, but in most postings worldwide, the challenges are related to different cultures and ways of doing business. Here are some pros and cons of an international assignment to help you decide if it is a smart career move.

Table of Contents

Pros of international assignment, international work experience.

Indeed, the world is growing and becoming more and more mobile and accessible. This is the main driving force. Business leaders today are not geographically constrained. Work experience in an international corporate environment and culture is often described as a prerequisite for most senior positions at major international companies. Instantly add diverse and multicultural elements to your portfolio and experiences to make them more appealing to your position on a global scale.

Global companies are paying more and more attention to international diversity, and there is no sign that this trend stops. Therefore, the overseas experience gained by international mission professionals will help those seeking senior management positions. If you are one of these ambitious professionals, the question should be whether you can afford not to participate in the international assignment?

The company devotes substantial resources to expats international assignments. Allocation itself is usually performed for a specific purpose, and ROI is an important goal. For example, you can transfer assignees with specific skills to a new location to lead a project that is considered essential. Therefore, being selected for a job is usually a compliment, but it is also an opportunity. A successful project overview allows you to prove that you are the assignee and develop your career from the benefits of success. If you can withstand the pressure, then your international assignment can prove beneficial. Are you ready to move forward and succeed?

Experience Different Ways of Doing Business

Learning a particular field and working in that field in the same country means a fairly fixed set of expectations and assumptions. Overall, understanding how other countries treat your industry and business can be an excellent way to open yourself to new ways of doing things. The best part? Wherever you are, you will get these learning outcomes.

Diversify Your Income

When it is difficult to predict what will happen politically, earning income in different currencies is an excellent way to diversify risks and protect the financial future. For example, in the past two years, the pound sterling value has changed 30% from the value of the euro. If you are particularly interested in the domestic economy, relocation is still a way to obtain better salaries and employment opportunities in a more stable business environment.

Explore the world

If you are passionate about traveling, nothing is better than working abroad. Not only you experience the country more deeply, but you can also get rewarded for it. You do not need to spend two weeks to get to know the country’s culture and personality directly. This is also an excellent opportunity to explore neighboring countries. If you are learning a language, immersion in the countryside is also an excellent way to quickly improve your skills.

Cross-Cultural Communication

Cons of an international assignment, emotional problems.

Life as an expat is a rewarding experience. However, it can be challenging. Loneliness, culture shock, and nostalgia usually overwhelm foreigners, and not all migrants are ready to face this strong, perhaps new emotion. The combination of pain and diligence described above has reportedly resulted in high burnout among professional immigrants.

Less Job Flexibility

You love your new country, but do you hate work? Unlike going home, if your position is not suitable for you, you can shop here. Working abroad may mean that your job is linked to your visa. Even if you are not restricted by a visa, your lack of language skills and local experience may limit your escape options.

Interrupted Career Progression

For outsiders, “Out of sight, out of mind” can be a very familiar word. Even if you live in the same company, you do not go out every day or work in different time zones. This means that good impressions are slowly disappearing and are no longer the number one promotion. In the country of visit, it may be necessary to take a junior position due to a lack of local experience or limited language skills, which can feel like a step back professionally.

Cultural and Language Barriers

Among foreigners who cannot establish the necessary business relationships or live daily lives, posting emails in places where there is a tremendous cultural difference or where communication in a new language is required can cause trouble. Non-traditional families, such as gay couples, may face cultural resistance and pressure, making assignment management difficult in the long run

Legal risks

Domestic work laws and regulations regarding wages, taxes, and pensions usually differ between residents and foreigners. As with immigration requirements, compliance with legal requirements must be ensured.

Technological change

Your country’s technology can lag foreign countries for several years. After returning home, it may take several months to digest all the changes.

As global mobility increases, many employees want foreign stamps on their passports to support their personal growth and career development. They are increasingly looking for commuters, rotational, expatriate, or other alternative jobs to build resumes. International assignments are an essential tool for international career development. In this case, employees with international experience are the greater wealth for the organization.

Some potential business traveling international career in which global travel is usually necessary like international accountant, marketing and sales International missions help improve cultural literacy, promote foreign language learning, expand professionals’ network, and broaden their horizons. But of course there are always pros and cons of an international assignment.

If you need a Global Digital Nomad insurance, make sure to check out SafetyWing.   Booking through this link will get you a 5% discount. 

Subscribe to the Globexs newsletter

We are passionate about Global Mobility, and we would love to share our enthusiasm with you. But we are also dedicated to efficient communication. Please let us know what topics you are interested in so that we only send you newsletters with relevant information.

Join the local Globexs expat community

Join our Facebook groups in Spain:  Expats living and working in  Valencia,   Madrid , Malaga , Barcelona , Asturias and Basque Country . 

Join our Facebook groups in Belgium:  Expats living and working in Antwerp , Brussels and Ghent .

Join our Facebook group in Holland:  Expats living and working in Holland

Looking for a furnished apartment?

Are you a digital nomad, a teleworkers or a remote worker and you have the freedom to work from anywhere? Check out our selection of furnished rental apartments.

Related blogposts

Why digital nomads are moving to Malaga

Forbes business magazine has named Malaga the “Best Alternative Capital City” in the world. So what is it that makes the city so attractive and

Monthly furnished apartments in Madrid

Madrid is proving to have a siren-call for digital nomads seeking a new life in sunny Spain. The capital, it has an urban population of

Digital nomads are chasing the best monthly rentals in Valencia

Digital nomads are chasing the best monthly rentals in Valencia Valencia has been voted best city in the world for expats, as reported in Forbes

• Corporate housing (6)
• Corporate rentals (1)
• Expats in Belgium (19)
• Expats in Spain (50)
• Global mobility (104)
• Info for owners (2)
• Invest in Valencia (4)
• Legal advice for expats (4)
• Moving to Madrid (1)
• Moving to Malta (2)
• News from Globexs (14)
• Property management Valencia (2)
• Valencia city (30)

Recent Posts

• April 26, 2024

• April 2, 2024

• March 26, 2024

Foreigners in Valencia are trying to wrap their head around Fallas

• March 11, 2024

The flamingos are back in town!

• February 24, 2024

Relocation tips when moving to Valencia

• February 7, 2024

Best areas to live in Madrid

• January 2, 2024

Living in Madrid: Exploring the Pros and Cons

• December 18, 2023

Moving to Madrid: Everything you should Know

• December 14, 2023

Living in Malta as an Expat: The Pros and Cons

• November 29, 2023

The Globexs experience

At globexs we all agree that our job is making people feel welcome. globexs is, in essence, a people-company: people working for people. us working for expats. we are the little tap on your shoulder and the voice whispering in your ear that everything will be allright 👌., this is the globexs experience, and this is what distinguishes us from traditional rental companies..

Short-Term Assignments: Key Considerations and Essential Information

By Tracy Langlois, CRP, GMS

Short-term work assignments have been steadily increasing over the years and certain factors like the pandemic have shined a light on vulnerabilities within numerous industries. For instance, the demand for travel nurses has never been higher, as certain staffing agencies need to fill voids and provide additional support at hospitals all over the US. Other companies are asking employees to train new hires at different locations or attend workshop programs and conferences out of state. Those working in media may need to spend days, weeks, or months in different locations covering news stories. HR representatives are focusing on talent mobility, which may require employees to take on short-term work assignments for specialized training and upward growth within a company.

No matter the industry or reason, employers are recognizing the value of short-term assignments, as well as the logistical steps required to smoothly transition their employees from point A to B. With that in mind, CapRelo put together an overview of short-term assignments, so your company knows what is needed to assist your employee during the hectic transition of a short-term assignment.

What is a Short-Term Assignment?

A temporary assignment is defined as a work stint lasting for one year or less. A short-term assignment can be a series of shorter rotational assignments or an assignment that requires an employee to stay in one place for the entire duration. Similar to temporary duty assignments in the military, short-term assignments are not permanent and are meant to carry out a specific purpose. Companies may send one employee or a whole team out on temporary assignments, depending on the industry and work goal.

What is the Purpose of a Short-Term Assignment?

There are plenty of different reasons why companies would send their staff out on short-term assignments. For instance, an employee may need to assist a branch that’s struggling to perform and help them to increase their sales numbers. It’s also not uncommon for staff to oversee different departments during a company merger, requiring temporary assignments to ensure company policies are being carried out consistently across the board. Perhaps limited resources have prevented staff at different locations from being properly cross-trained, necessitating the need for temporary work trips.

Whether three weeks or three months long, short-term assignments typically require companies to cover lodging, food, transportation, and other travel-related expenses with stipends.

Benefits and Challenges of Short-Term Assignments

While short-term assignments sound like a breeze, they can pose some serious challenges for both the employee and the company itself. International short-term assignments can pose tax and immigration issues if companies don’t comply with the laws and regulations in each country. Secondly, some countries have turbulent landscapes, which could potentially put staff at risk. Employees may also get stranded in the assignment country due to canceled flights or COVID-related concerns, further implicating the company when temporary assignments do not go according to plan.

On the flip side, a company can create a robust talent mobility strategy with initiatives that reward current and new hires willing to take on short-term assignments. For instance, paying employees during travel time can lead to higher retention rates. Companies can also train staff across locations to improve their skills, eliminating any consistency errors. A change of scenery might help employees to improve productivity as well, especially in locations that offer plenty of sunshine and warm weather for post-work relaxation.

Short-Term Assignment FAQs

• Are Short-Term Assignments International? Short-term assignments can be either domestic (within a country) or international (across country borders). Certain companies like Amazon, FedEx, and Apple are known for leading the way with the most corporate travel, requiring employees to rack up airline miles to fulfill their job duties.
• How Does the IRS Define Short-Term Assignments? The IRS defines short-term assignments as work in one location that can be reasonably completed in one year or less (and is). Employees typically file taxes with their home state. If a work assignment lasts for longer than a year then it is considered an indefinite assignment, prompting an employee’s tax home to change.
• What is Relocation Tax Assistance? Before 2018, any moving-related payments or reimbursements to employees were not included in their annual reportable wages. These expenses did not require withholding taxes and would have been paid by the employee and later deducted. The Tax Cuts and Job Act of 2017 changed the way payroll handled relocation expenses. Nowadays, employers can offer relocation tax assistance or tax gross-ups . A tax gross-up simply means that a company provides a larger payment sum to the employee to compensate for the taxes that will be withheld from their payment if that employee is relocating somewhere new.
• Do Family Members Join Employees on Short-Term Assignments? When it comes to temporary assignments, most companies do not assist families to join the employee in the new location if the assignment is expected to have a duration of six months or less. Assignments greater than six months may include company support for family accompaniment. Some companies will offer to pay for visits home after a certain amount of time has passed for employees who are not accompanied. This could be anywhere from 8 to 12 weeks after the start of the assignment but depends on the company’s unique policies.

How Can Companies Assist Employees?

Companies should have well-defined relocation policies in place before sending employees out on temporary assignments. The policy should include details on the relocation services and benefits which will be provided to employees and who will be assisting them with these services. It is important to note for international cases that proper immigration documentation is required before the start of the assignment. Letters of assignment (LOA)s should also be created for employee and company signature and should include specifics on the location and duration of the assignment and specific benefits. Companies should have a dedicated budget in place to assist with short-term assignment relocation expenditures; a comprehensive cost estimate including tax costs can be prepared in advance to ensure appropriate approvals can be obtained. A survey of HR professionals conducted in partnership with CapRelo found that 33% of participants stated their relocation policies have been updated to accommodate employees’ mental health and well-being, which is another factor that should be taken into consideration to help employees cope better with their new surroundings.

Do You Need a Relocation Program?

So, you’re ready to send your employees out on short-term assignments, but don’t know where to start? Whether you need help transferring one employee intra-country, or flying a whole team across the globe for specialized training, we can help.

At CapRelo , we provide relocation solutions for companies that need them, covering a host of services including cost estimate preparation, corporate housing, auto shipment, property management, travel services, immigration coordination, and much more.

Our team specializes in seamless transfer operations and sorts out all of the logistical steps before your employee’s short-term assignment so you can have peace of mind knowing that they are in the best of hands. Allow us to take one more thing off your plate and contact our highly qualified team at CapRelo today to get started.

• Share on Facebook
• Share on Twitter
• Share on LinkedIn
• Share with Email

Insights + Resources

Unpacking corporate policies: understanding the impact of household goods shipment weight caps, navigating the skyrocketing rent crisis: insights from major cities worldwide, bridging borders: the evolution of cultural and language training, global visa digitalization and its impact on immigration in business.

• Domestic Services
• International Services
• Corporate Moving Services
• Small Shipment Solution
• Lump Sum Management
• Consulting Services
• U.S. Government Services
• Moving Services
• Global Footprint
• Security & Compliance
• Powerful Technologies
• Recognition
• Global Supplier Network
• Success Stories
• Real Estate Rewards
• Global Leadership

July 18, 2022

Short-term Assignments Can Give High-Potential Employees a Reason to Stay

Counter the “great resignation” by offering short-term assignments to your high-potential employees and build engagement.

Short-term assignments, whether in the same country or abroad, have been a major trend in relocation over the last few years and we believe this trend will continue in the years to come. Short-term assignments, which are typically less than 12 months, can be a way to attract and retain talent by offering interesting challenges as the employee gains new skills, experiences, and builds a network of colleagues.

While there are clear benefits to utilizing this policy type – especially instead of a long-term assignment that can be quite costly – corporations must maintain compliance with respect to payroll, taxation, and immigration if the assignment is overseas.

In the U.S., a short-term assignment must have a clear start and end date and must be less than 12 months to claim some expenses tax-free for the employer, and in many cases, international short-term assignments can avoid host country taxes if there is a totalization agreement between the home and host country and the employee spends less than 183 days there.

Whether it’s for finite projects, developmental job positions, new business or branch openings, there are many reasons and benefits for sending an employee on a short-term assignment. Instead of tradeoffs, we often see synergy across different priorities, such as when productivity is maintained, headcount is not increased, and high-potential employees are given an opportunity to build leadership qualities.

Benefits of Short-Term Assignments

A short-term assignment costs less than permanently relocating an employee Short-term assignments can be more cost-effective than a long-term assignment (typically 1 to 3 years) or permanently relocating the employee. In fact, it allows company initiatives to proceed without the costs of selling a house and asking members of an assignee’s family to relocate with them.

A short-term move is less stressful on employees than a permanent move Unlike long-term assignments or permanent relocation, employees do not typically move with their families during a short-term assignment. Whereas this eliminates some added challenges that could arise from searching for adequate housing, enrolling children in a new school, or a spouse looking for employment, we recognize that living apart from family can be stressful and therefore recommend regular home leave to ensure a successful assignment.

Short-term assignments are great opportunities for employees to grow Short-term assignments can give your staff opportunities to learn additional skills and gain new perspectives, helping to create a more diverse and inclusive organization. Knowledge sharing upon their return to the origin location is a bonus to going on short-term assignment, benefiting the employee, colleagues, and the company.

Most short-term assignments range between 3 and 12 months; assignments that are shorter tend to be considered Extended Business Travel with some different considerations to keep in mind. There are employers that allow accompanying family members on an assignment that is less than 1 year; other organizations consider any assignment under 2 years as short-term.

Setting up your Employee for a Successful Short-Term Assignment

While the needs of employees will vary, it’s important for companies to have a standard program that allows some flexibility. Setting clear expectations and communicating those to the employee helps achieve success.

Here’s our key advice for employers to consider when creating a short-term assignment policy.

Help employees find short-term housing Short-term rental agreements with corporate housing specialty companies are often the best option because they are fully furnished and typically offer a variety of amenities to help renters feel at home.

Some of these organizations own properties while others source properties and fill with furniture, and if your organization frequently sends people to the same location, they can set up rotational agreements whereby the accommodations are maintained for your organization and employees can rotate in and out as necessary. This can eliminate the hassle of searching for new housing each time an employee is relocated for a short time. Alternative housing options can include extended-stay hotels or vacation-type rentals such as Airbnb.

Cover all host-location expenses A short-term assignee retains their home property while on assignment, therefore, the employer assumes responsibility for most expenses, including but not limited to housing, utilities, parking fees, as well as travel expenses in the host location and for home leave visits.

In addition, most employers will provide an allowance to offset the cost of meals and incidentals, sometimes in the form of a cost of living adjustment (COLA) or per diem.* This decision is typically based on the expected duration of the assignment.

Provide benefits that will help employees adjust Family separation during a short-term assignment is one of the most common challenges for employees, making the power of continued connection critical. Therefore, taking home leave on a regularly scheduled basis throughout the duration of the assignment promotes closeness, and many companies allow family members to visit the host location in lieu of the employee travelling home. We also suggest offering self-directed online cross-cultural training if the assignment is overseas.

Offer resources to help employees acclimate Whether the assignment is in-country or abroad, Sterling Lexicon recommends providing at least a ½ day orientation tour to ensure your valued employee feels comfortable in the host location.

Employees will appreciate knowing how to navigate in the host location, knowing the location of medical facilities, and knowing how to go about their daily life in a different environment helps people adapt more quickly.

Choose the right relocation management company (RMC) for your relocation and assignment needs Whether relocating permanently or going on a short-term assignment, the right counseling can help mitigate worry while providing an exceptional employee experience. The right RMC can help develop equitable policies and should have an extensive supplier network to identify appropriate corporate housing within budgetary requirements, Destination Services Providers to manage an orientation to the host location, and online tools to support their stay. Additionally, an RMC like Sterling Lexicon can manage the entire expense process from start to assignment completion.

*There are distinct differences between a per diem and COLA, and are usually applied to different global mobility policy types:

Per Diem: a per day payment structure that is designed specifically for employees on assignment lasting from 1 month to 1 year. A per diem is intended to provide a fixed daily living allowance that is equitable to all assignees in the same host location, regardless of salary level or home country.

Cost of Living Adjustment (COLA): a payment structure that is designed to protect assignees from the increased costs of goods and services at the host location by supplementing their salaries. The calculation also takes into account the longer-term nature of living and working in a host location while reflecting the expatriate’s spending patterns. Data providers offer multiple index options and the ability to customize according to company policies.

Leah Johnson

Leah Johnson is Sterling Lexicon’s Director, Client Solutions, and has worked in the global mobility industry for more than 20 years. She has held management positions in business development, operations, account management, and consulting, and had the opportunity to live and work in Tokyo and Hong Kong for six years. She initiated destination services in Hong Kong for a relocation management company and directed global mobility for Goldman Sachs in the APAC region. She graduated from Colgate University, earned an MBA from the University of Alabama in Huntsville, and maintains a Senior Certified Professional (SCP) certification from SHRM.

Popular Posts

Moving Overseas | What to pack, store and give away

Work from Anywhere? The U.S. Visa Situation Explained

Victory win for thousands of South Africans who wrongly lost citizenship

Retire in Europe | The Best Island

What is Shadow Payroll?

Related Posts

• Connecticut
• United Kingdom
• Switzerland
• Americas Privacy Policy
• California Notice of Collection
• Multimodal Bill of Lading – Contract for Carriage
• Supplier Code of Conduct

Advertisement

What Penalties Could Trump Face if He Is Convicted?

Each of the 34 counts carries the possibility of up to four years in prison, but incarceration is not a given: Justice Juan M. Merchan could instead opt to impose a sentence of probation, with no prison time.

• Share full article

By Kate Christobek

• May 29, 2024 Updated 3:26 p.m. ET

If Donald J. Trump is convicted, it will be up to Justice Juan M. Merchan to decide whether his punishment will include prison time.

Mr. Trump is charged with 34 counts of falsifying business records related to the coverup of a $130,000 hush money payment that was made to the porn star Stormy Daniels in the days leading up to the 2016 election.

All of the charges are class E felonies, or the lowest category of felony in New York State.

Each count carries the possibility of up to four years in prison. But if Mr. Trump is convicted on more than one count, Justice Merchan would likely impose the punishment concurrently, meaning he would have Mr. Trump serve prison time on each of the counts simultaneously.

Incarceration is not a given: Justice Merchan could instead opt to impose a sentence of probation, with no prison time. Mr. Trump would then be required to regularly report to New York City’s Probation Department. He could also be jailed immediately if he committed additional crimes.

Justice Merchan would likely hand down Mr. Trump’s sentence several weeks after the guilty verdict. But it’s possible that any punishment could be delayed.

Mr. Trump, who is again the presumptive Republican presidential nominee, will undoubtedly appeal any conviction, a lengthy process that could take months or longer and would likely not be resolved before Election Day. In that case, he would likely remain free until the appeal is resolved.

There has been no indication yet of what Justice Merchan would decide, though he has made it known that he takes white-collar crime seriously. Mr. Trump has continually attacked and decried him as “biased” and “corrupt.”

Kate Christobek is a reporter covering the civil and criminal cases against former president Donald J. Trump for The Times. More about Kate Christobek

Our Coverage of the Trump Hush-Money Trial

News and Analysis

After seven weeks of legal wrangling and tawdry testimony, Donald Trump’s criminal trial is in the hands of the jury , the final stage of the landmark case. Here’s how the deliberations work .

If Trump is convicted, it will be up to the judge, Justice Juan Merchan, to decide whether his punishment will include prison time. Incarceration is not a given .

The scene outside Trump’s trial mellowed a bit as deliberations began, but even a more sedate day includes spectacle and confrontation .

More on the Trump Investigations

Case Tracker:  Trump is facing multiple criminal cases related to his business and political activities. Follow the latest developments .

What if Trump Is Convicted?: Will any of the proceedings hinder Trump’s presidential campaign? Here is what we know, and what we don’t know .

Election Interference Cases: In Arizona , Georgia , Michigan  and Nevada , several allies of Trump are facing charges  related to efforts to keep him in power after he lost in 2020.

Trump on Trial Newsletter: Sign up here  to get the latest news and analysis  on the cases in New York, Florida, Georgia and Washington, D.C.

More From Forbes

A psychologist explains what it means to be ‘aromantic’—or on the ‘aro-spec’.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

New research offers a deeper understanding of aromanticism, based on what members of the community ... [+] have to say.

Aromanticism refers to experiencing little to no romantic attraction to others. People who identify as aromantic may have little interest in romantic relationships or may not desire romantic involvement at all. Aromanticism exists on a spectrum, referred to as the aromantic-spectrum or the “aro-spec.”

A 2024 study published in the International Journal of Sexual Health examined the experiences of aromantic individuals. Here are two important insights into the aromantic experience, according to the study.

1. Aromanticism Involves A Wide Range Of Experiences

Aromanticism encompasses a wide range of experiences and attitudes towards romantic attraction.

“It is not as simple to dichotomize between experiencing or not experiencing romantic attraction, as many Aro-spec folks have broad perspectives toward romance (often ranging between repulsion, lack of interest and confusion) or experience romantic attraction under specific conditions,” the researchers state.

For many aromantic individuals, the concept of romance is puzzling. They often do not understand or relate to the purpose and appeal of “romantically-coded” activities such as kissing and dating. Societal norms around romance can feel alien or unnecessary for some, while romance may be aversive to others.

The 82 Best Memorial Day Sales To Shop Now Before They re Gone

Apple brings back iphone 14 pro for first time at lower price refurbished, janet yellen issues serious $34 trillion warning as bitcoin predicted to surge to $1 million price.

“When you listen to all those songs about romantic love, you wonder if people really feel that way that they would let people ruin them. Would they really let another person make them their own? These contracts don’t seem fair. When I think that they might mean it, it makes me flinch,” explains one participant.

Some aromantic individuals also view their identity as a rejection of traditional societal constructs of romance and relationships.

“For me it’s that not only that I don’t experience romantic attraction, it’s also that I don’t agree with the societal script of romance and would like to opt out of the traditional structure altogether,” explains a 25-year-old participant from the study.

The aromantic-spectrum also includes identities such as greyromantic, for those who occasionally feel romantic attraction and demiromantic, for those who only experience romantic attraction after forming a strong emotional bond. This diversity underscores the importance of recognizing and respecting the varied experiences within the aromantic community.

2. Aromanticism Is Highly Misunderstood

Members of the aromantic community often face stigma for being part of the LGBTQIA+ community and are subject to discriminatory cultural tropes, being referred to as “ robots, aliens or monsters ” for not experiencing romantic attraction or love in a conventionally accepted way.

Here are three common misconceptions about aromanticism that contribute to this stigma.

• Aromantics are incapable of loving relationships. This belief overlooks the deep, meaningful connections aromantic individuals form with friends, family and other non-romantic partners. “You can still fall in love platonically with your friends, or your pets, or even aesthetically for a really pretty sunset or whatever else. It’s just not romantic,” explains a 26 year old participant from the study.
• Aromanticism is synonymous with asexuality. Aromanticism is often misunderstood as being the same as asexuality. However, these are distinct identities—aromanticism relates to a lack of romantic attraction, while asexuality pertains to a lack of sexual attraction. Although some people identify as both (aroace), many do not. Researchers found that 90% of participants believed that the two should be respected as separate identities.
• Aromantics are emotionally deficient or traumatized . Another harmful stereotype is that aromantic individuals must be emotionally deficient, traumatized or mentally ill. This perspective suggests that their lack of romantic attraction is a problem to be fixed and they are just choosing to abstain from it due to negative past experiences. While they may have experienced trauma like anyone else, this does not invalidate their identity.

Amatonormativity—the societal expectation that everyone desires romantic love and that romantic relationships are superior to other forms of relationships—fuels much of the stigma against aromantic people.

This perspective devalues friendships, queer-platonic relationships and other non-romantic bonds, painting aromantics as sad and lonely or needing the “right person” to enter their lives, even though singlehood is just as fulfilling for them.

“Perhaps influenced by a misunderstanding of aromanticism and dominance of amatonormativity, many aromantic people felt that they were perceived to be immature, attention-seeking, selfish or cruel, having commitment issues or missing something that made them human,” the researchers explain.

Heterosexual marriage is still the most highly valued type of relationship in society, receiving significant legal and social recognition. This marginalizes aromantic individuals whose relationships do not fit this mold.

These stereotypes contribute to a harmful narrative and several negative consequences, such as feeling pressured to conform to romantic norms, hide one’s true identity to avoid judgment and facing social isolation and a lack of acceptance.

While the stigma aromantics face is deeply challenging, researchers found that for many participants, connecting with their aromantic identity is also a transformative and empowering experience.

Many describe this connection as a turning point that allows them to stop conforming to societal expectations, accept themselves, redefine and nurture their relationships and start living authentically.

While these insights cannot speak to the experience of every single aromantic person, they highlight the importance of questioning amatonormativity and respecting individual identities. Challenging these misconceptions and advocating for greater recognition and respect for diverse relationship structures is a crucial step towards creating a safer and more inclusive world.

Wondering if you are a true ally to non-traditional communities? Take this test to find out: LGBT Allyship Scale

• Editorial Standards
• Reprints & Permissions

Join The Conversation

One Community. Many Voices. Create a free account to share your thoughts. 

Forbes Community Guidelines

Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.

In order to do so, please follow the posting rules in our site's  Terms of Service.   We've summarized some of those key rules below. Simply put, keep it civil.

Your post will be rejected if we notice that it seems to contain:

• False or intentionally out-of-context or misleading information
• Insults, profanity, incoherent, obscene or inflammatory language or threats of any kind
• Attacks on the identity of other commenters or the article's author
• Content that otherwise violates our site's  terms.

User accounts will be blocked if we notice or believe that users are engaged in:

• Continuous attempts to re-post comments that have been previously moderated/rejected
• Racist, sexist, homophobic or other discriminatory comments
• Attempts or tactics that put the site security at risk
• Actions that otherwise violate our site's  terms.

So, how can you be a power user?

• Stay on topic and share your insights
• Feel free to be clear and thoughtful to get your point across
• ‘Like’ or ‘Dislike’ to show your point of view.
• Protect your community.
• Use the report tool to alert us when someone breaks the rules.

Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's  Terms of Service.

• My View My View
• Following Following
• Saved Saved

The FLiRT COVID variants: What are they and are they more contagious? 

• Medium Text

HOW ARE THE FLIRT VARIANTS DIFFERENT FROM PREVIOUS VARIANTS?

Are the flirt variants more contagious or likely to cause more severe illness, do current vaccines work against the flirt variants.

Sign up here.

Reporting by Michael Erman; editing by Caroline Humer and Bill Berkrot

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Business Chevron

Investors relieved BHP walked from $49 bln Anglo takeover deal

BHP Group investors welcomed the top global miner's decision to walk away from a $49 billion plan to take over Anglo American , which rejected three proposed offers from its bigger rival over the past six weeks.