Where do employees most want to relocate to? 

There are a host of countries that employees are interested in, but Canada tops the list for US employers, with one in five Americans saying it’s their preferred destination if they were to relocate. The United Kingdom and Japan are also popular choices.  

How should employers support employees that are seriously considering moving abroad? 

First, it’s important to understand the rationale behind the desire to relocate. It's essential to engage in open dialogue to understand employees’ motivations. Sometimes, flexible work arrangements such as remote work options or international assignments can help retain talent, without the need for them to permanently move abroad.  

Detailed discussions also give you the opportunity to talk about practical information such as visa requirements and tax considerations, which will help employees make informed decisions. 

Providing resources such as relocation assistance programs, counselling on cultural adaptation, and guidance on legal and financial matters is advised. Finding a trusted partner, specialising in international relocation with knowledge of particular regions can also ensure that both the company and the employees are well-prepared for the transition. 

How hard is it to manage employees who have moved abroad? 

Managing a dispersed workforce across different countries introduces complexities related to compliance with various labor laws, tax regulations, and communication across time zones. It's crucial to establish clear policies and support systems to navigate these challenges effectively. 

There are a host of questions you need to ask yourself before allowing any number of employees to head overseas. 

• Immigration: What are the visa and work permit requirements for foreign nationals working remotely in a particular country? Is a special visa needed after a certain period of time? 

• Compliance: Do we need to establish a permanent business presence in a particular country? Could this trigger additional corporate tax obligations? Do we know the legal situation around payroll taxes, overtime, mandatory benefits, termination rights, etc. in any country where employees may wish to move?  

• Payroll: Don’t assume that setting up a direct deposit is easy! It may involve knowledge of tax treaties, dual taxation issues, social security withholding, exchange rates, currency volatility, local payroll regulations, and whether you can even deposit into a foreign bank account. 

• Data privacy and IT security: Do we have to send employee or customer data across borders? Does this mean we are subject to additional data privacy rules? Do we have mitigations for associated cybersecurity risks? 

• Policies:  Do we have, or do we need, to implement policies around requests to relocate and work from new countries, similar to remote working policies that have become commonplace? 

• Practical implications: Are we prepared to compete with our benefits packages? Is the time zone conducive to your business needs? Does the country have a different work week? Will you need them to come to the home office for meetings? Who bears that cost? 

Are there long-term implications if the relocation trend continues?  

A sustained interest in relocation could lead to a more globally distributed workforce. This could have huge upsides; unlocking diversity and global perspectives within companies, as well as a workforce that covers more time zones.  

But there may be a cost. The need to manage and accommodate employees across the globe calls for robust processes to maintain cohesion, ensure compliance, and support employee well-being wherever they are. 

It’s worth recognising the ongoing strain that these can put on internal teams – particularly HR.  The need to stay on top of changing rules and regulations in new and unfamiliar regions, this takes time and introduces risks around non-compliance. Common pitfalls include misclassification of employees as contractors, a lack of awareness of local minimum wage and overtime laws, and permanent establishment risk, where a business may be considered as having a taxable presence in a country due to its activities there.  

There are other table stakes for international relocation. Like remote working, it requires tools for video conferencing, project management, and real-time collaboration to ensure seamless communication and teamwork. Managers also need to be mindful of workflows and communication with remote teams. Considerations include building centralized communication channels, setting clear expectations and deadlines, conducting regular check-ins, being aware of local norms, laws, and time zones. 

How likely are employees to really want to relocate?  

Interest is high, but actual relocation rates are typically lower. A recent survey found that nearly 60% of Americans considering moving abroad said they would be "very unlikely" to do so, with only 2.6% indicating they were "very likely" to make the move.  

That said, there was a real increase in relocations from US to Canada with the first Trump Administration. In 2015, around 6,800 Americans tried to apply for permanent residency in Canada. But in 2017, with the new Administration taking over, that figure jumped to over 9,000. The pandemic also caused a jump in the number of Americans interested in working abroad. Research from MBO found that the number of digital nomads grew from 7.3 million in 2019 to 10.9 million in 2020. The majority, however, stayed in the United States, with only 24% of all digital nomads saying they planned to travel abroad.  

It’s worth regularly reassessing employee sentiment and developing flexible policies and establishing or expanding international offices to provide more opportunities for employees seeking relocation. Staying informed and building a global mobility program will also help the company better adapt to changing employee dynamics. 

How Atlas Can Help 

There are many reasons why a company would want to employ people in other countries, and in an increasingly international marketplace for talent, there are many benefits to be realised.  

Companies with a global outlook have a better understanding and better processes for managing international teams. In our experience, these companies are better at expanding into new markets, appeal to a broader pool of available talent, and increase activity in different time zones, creating expanded coverage for sales, support, client services roles. 

Regardless of employee interest in moving abroad – which can change with the news cycle – organisations that accommodate international teams are better placed to keep the best employees and outperform their competitors.  

Atlas’s direct Employer of Record services make us the ideal partner in relation to employee relocation. We have a track record of delivering the goods, even in the most difficult circumstances. For example, when Russia invaded Ukraine, we helped an IT company relocate its employees, achieving a 100% approval rate for over 100 work and residence permits, ensuring uninterrupted business operations and safeguarding employee well-being. This included securing office space and providing personalized assistance through local immigration experts.  

If Atlas can do all this in a conflict zone, we are confident we can address immediate relocation needs and foster sustainable growth in conflict zones, during pandemics, in times of political upheaval, or when it is business as usual.