As the world gets smaller and tighter connected, companies have greater opportunities to expand internationally. The work-from-anywhere culture is opening up new opportunities for global economies, which are becoming more international. Organizations can now have access to global talent through remote and hybrid work, and they can – if they have the right values – keep it.
What does this mean for expat business employees? Let’s examine the current state of global mobility and the trends shaping the worlds of work and HR.
Global mobility phenomenon
When people are moved around the world for business purposes – it is global mobility. This could be an employer in the UK with employees based out of the UAE, or a multinational US corporation with employees based out of the UK.
Mobile workers are able to relocate permanently to another country or take on short or long-term assignments overseas. They can also cross international borders regularly. An increasing number of companies, of all sizes, are realizing the benefits of expansion outside of their home countries. They send their talent abroad to tap international markets, encourage innovation and gain new customers.
Such a strategy must be well-structured by HR departments. It is crucial to facilitate the relocation process and provide support for employees and their families as they settle into their new lives overseas.
Over the last 10 years, remote workers have increased by 160%. More than half of all companies have a remote or hybrid work policy. 6 out of 7 managers think that remote work will soon be the new normal.
The Great Resignation and how it affects business
In the past few years, there have been many changes in the world of work. But one of the most interesting developments is the tendency for workers to leave their jobs at historical rates.
There are many reasons why people change careers or leave the workforce. One thing is common – employee expectations have changed. Many people realized that a healthy work-life balance is important – often even more than salary and bonuses. Today’s employee-driven job market means that employees are more likely to leave companies that don’t value their personality and needs.
Recent PwC survey of 44 countries’ employees found that 20% of respondents were “extremely likely or very likely” to change employers within the next year. So, companies will need to provide attractive workplace environments if they are to survive the Great Resignation. HR departments may need to review their employee training and benefits programs. This means giving employees options in where they work and offering tailored benefits and emotional support for people who are moving abroad.
The dilemmas of Global Mobility…
There are many trade-offs and dilemmas that come with working with global mobile workers. Millennials, for example, want to work abroad while also wanting to reduce their carbon footprint.
Another problem for businesses is the fact that leadership skills can be developed faster, deeper and more effectively by living and working abroad. However, many of the tasks (the work) can be done online and via hybrid means, but without improving leadership skills.
9 global mobility trends shaping the world of work
Let’s have a glance at some top trends that are shaping the global workforce.
1. Remote work
There is an increasing demand for remote work. Some people will prefer to work on another continent, while others may prefer to work at home. This flexibility is crucial.
Job vacancies in many countries are at record highs and the war for talent is fierce. To attract and retain the best talent, it’s important to embrace hybrid and remote working, and to provide equitable relocation policies.
2. Being able to hire remotely
Companies around the world are having to rethink their strategies because of the fierce competition for the best talent on the job market, added to a qualified workforce shortage. Many times, they are unable to find qualified employees within their region, country or city. However, they can often find the right candidate quickly in another country. It is a big advantage for professionals to be able to work from wherever they like.
3. Moving people to the new roles
It’s time to look beyond the traditional career models as the work environment becomes more mobile. Talent will be encouraged and supported to take on new assignments, roles, and projects in a variety of geographies. According to one of Deloitte’s studies, 3 out of 4 executives believe that adaptability, reskilling, and taking on new roles are one of the top factors in navigating future disruptions.
4. Inclusive workplaces
Organizations should continue to prioritize fairness and equity. When more emphasis is placed upon diversity, equity, and inclusion (DE&I), employees feel a greater sense of belonging.
The Deloitte Study shared fascinating insights into global mobility and diversity:
○ while women make up more than 40% of the global workforce at the moment, only 1 out of 5 international assignments are female
○ by 2025, 75% of the workforce will consist of Millennials and 59% of them want to work abroad
5. Wellbeing of workers
To maintain a productive and happy workforce, health and wellness initiatives are vital – it’s a constant trend. It is important that wellness be integrated into the culture of every company’s structure and not be just a side matter. This is to be considered by expats who are making their decision to move to another country for work, as they may be surprised by the differences in workplace benefits at the previous and new workplaces.
Consider policies and resources to support employees’ mental, physical and financial health, wherever they are located.
6. Digital workforce, which is data-driven
It’s important to have a standard data platform in order to provide consistency and structure for mobile teams as many tasks become automated. Better results will come from being able to create, learn and collaborate. At the moment, less than 25% of organizations measure global mobility’s impact on their business using analytics or metrics.
7. Stick to sustainability
Companies that are ethically and sustainably responsible are desirable for the potential workforce. Climate change, travel costs, etc. – businesses have to rethink their travel policies.
Consider awarding employees for reducing carbon footprints. Also, invest in video-conferencing technology to replace short-term travel.
8. Immigration issues
Global mobility is crucial to attract top talent and skills. However, the landscape of immigration has changed – there are now more restrictions on immigration and periodically imposed border closings. International businesses must be prepared for protectionist trade policies. They also need to modify their mobility strategy in order to be more resilient to shortages of workers.
9. Tax global mobility
Tax is a complex issue. It’s even more difficult when staff is based in other countries or crosses borders frequently. Tax systems and labour legislation around the globe vary, and many governments are increasing tax compliance. You need to be familiar with the social security and income tax rules of each country and region, where your employees are located, in order to effectively manage a global workforce. Rut your eye on the following areas:
○ immigration legislation
○ global payroll management
○ tax equalization – when employees don’t pay more or pay less tax on business assignments than they would have paid at home
If you’re looking for new ideas, fresh perspectives and insights on the future of work, then you’ll want to attend HR Vision Events.
