Even in today’s age of remote work, there are times when nothing can replace having employees physically present on the ground for international expansion.
However, although global mobility is invaluable to today's businesses, anyone who has traveled internationally knows that dealing with visas, immigration paperwork, and work permits can be a lengthy and complex process. A 2021 study by the American Psychological Association (APA) found that immigrants dealing with visa and green card applications experience high-stress levels, comparable to a job loss or serious illness.
Employees have personal needs, such as ensuring access to quality schools, healthcare, and a salary that covers living expenses abroad.
A well-constructed global mobility plan is an effective way to reduce the complexity of sending workers to new countries, and to make the process of moving home, family, and job to a new country a little smoother for the employee.
How a global mobility plan can benefit employers and employees
When it comes to global mobility, numerous complexities must be addressed, and employers need a well-structured program to guide employees throughout the process. For example, a comprehensive global mobility plan could streamline the experience for an American employee, James, who is relocating abroad for work.
A well-designed plan would help James manage essential tasks, such as obtaining visas and expat healthcare. For example, HR could use the plan to assist James in acquiring a Swedish work permit by ensuring all required documents are correctly filled out and submitted on time.
The plan would also provide detailed guidelines on sending workers to the EU, outlining how long the sponsorship process takes, making the experience easier for the company. This level of clarity helps to avoid delays, ensuring that James’s permits were sorted well before his arrival in Sweden.
In addition to handling permits, the global mobility plan would also help James’s employer do the legwork when organizing his healthcare. As a foreign worker with a Swedish work permit, James is entitled to access Sweden’s national health system, which ranks as one of the best in the world. This means that enrolling him in the company’s private healthcare service could be seen as optional, rather than a necessity.
The plan wouldn’t only benefit James’ employer — it would also help him personally. By interacting with his firm’s plan, James discovered that Sweden offers significantly cheaper access to childcare, saving him the equivalent of tens of thousands of dollars. Childcare costs in the USA can take up to 32% of a couple's average income, whereas in Sweden these costs average around just 5%.
Despite Sweden’s higher cost of living, thanks to the global mobility plan James realized he was financially better off in Sweden than in the USA, even though his salary remained unchanged. In fact, the plan helped him offset living expenses by saving hundreds of dollars a month on daycare.
Furthermore, the global mobility plan helped James understand how the move would affect his US tax obligations and how to leverage the US-Sweden tax treaty to avoid double taxation. American citizens are expected to pay income tax to the US government even when based in foreign countries, but tax treaties, such as those offered by countries like Sweden can avoid this if applied correctly.
In short, a global mobility plan not only facilitates a smooth transition for employees but also ensures the employer retains control over the logistical and financial challenges of international assignments.
What to consider when designing a global mobility plan
However, global mobility plans require a high level of depth to be effective. When it comes to complex issues like taxation and immigration, guidelines need to be detailed and comprehensive.
It is also important to keep salary thresholds within your global mobility plan up to date, as countries can close the door to expat workers, particularly lower-paid ones, sometimes without advanced warning.
Some countries, such as the UK, can rapidly change salaries for migrant workers, throwing a spanner in the works of a company's expansion plans. The UK raised its salary threshold for skilled workers on 11th April 2024 to a basic rate of £38,700, an increase of £12,500.
It is also important to include purchasing-power-parity (PPP) in your mobility plan, as this can constantly fluctuate. For example, an expatriate employee stationed in Hanoi, Vietnam would need a lower salary than an employee stationed in New York, even when accounting for issues like retirement savings or keeping employee remuneration fair between employees.
How EORs can support your global mobility plan
While basic information about relocating to another country is available online, having local expertise is invaluable. This is why many companies with a global workforce partner with an Employer of Record (EOR). An EOR handles onboarding, managing, and paying staff on your behalf, acting as the legal employer, while you retain control over hiring, compensation, assignments, and termination.
For example, if you're hiring across multiple European countries, you provide the EOR with details on the employees, locations, and salaries. The EOR then navigates local laws and completes all the necessary paperwork, freeing your company from the time, costs, and bureaucracy of international hiring—allowing you to focus on business growth.
The value of partnering with a third-party EOR is especially clear when sponsoring employee visas. The visa process can be lengthy and complex, often taking months — for example, the average processing time for an H-1B visa for a tech worker moving to the U.S. can be up to eight months, with family sponsorships taking even longer.
A local presence is crucial if issues arise, as local lawyers or tax consultants may not always speak English fluently. Therefore, having an EOR who has overseen countless visa sponsorships is ideal. Additionally, in jurisdictions like the USA, firms need to demonstrate a certain level of financial stability to sponsor employees, making an established EOR an invaluable partner.
Atlas’s foreign presence in over 160 countries across the continents makes building a truly global mobility plan simple and accessible. From healthcare to taxation, Atlas has the local experience needed to guide your firm when trying to become globally mobile, whether you are sending employees to Bangkok or London.
Looking to simplify your business operations and global expansion? Discover how Atlas' Employer of Record services can streamline your entity setup today.