Global mobility leaders, much like the rest of the business community, are under continued pressure to deliver operational efficiencies and make cost savings. But improving global mobility efficiency translates into benefits beyond cost reductions.
Enhanced operational precision and accuracy creates more robust compliance practices, and alleviating demands on mobility professionals’ time enables focus on strategic contribution.
There is however a balance to be achieved. Strip back your mobility programme too much and you risk exposure to compliance issues, difficulties in attracting and retaining talent, and reputational harm.
How can organisations improve the efficiency of their global mobility programme without impacting effectiveness?
Role of global mobility efficiency
Global mobility efficiency refers to the ability of organisations to manage international employee transfers in a streamlined and cost-effective manner. UK employers involved in relocating staff abroad or hiring international talent must consider various factors to ensure smooth operations while remaining compliant with legal and regulatory requirements.
Employers need to address immigration laws, tax obligations, and employment rights in both the UK and host countries. Failure to comply with visa and work permit regulations can lead to fines, delays, or reputational damage. Tax liabilities for both the business and employees must be managed carefully to avoid unexpected financial burdens.
Employee experience is an important consideration, as relocation challenges can affect retention and productivity. Cultural adaptation, housing arrangements, and support for family members all contribute to a successful transition. Without proper planning, businesses risk high attrition rates and reduced engagement from internationally mobile employees.
Cost control remains a priority, with expenses such as relocation packages, compliance costs, and foreign payroll requirements requiring careful budgeting. Employers must also consider permanent establishment risks, which could lead to tax exposure in overseas jurisdictions if employees trigger a taxable presence.
Automation
Global mobility is arguably one of the more complex areas of HR; operating and co-ordinating multiple, sophisticated processes; ensuring compliance; managing and financing supply chains; and delivering employee move support.
Among these complexities, many elements are in fact capable of being simplified, improved, automated.
Immigration compliance has fast become a popular area of automation.
UK employers are under a duty to check that all employees have, at the point of onboarding and throughout the course of their employment, permission to undertake the work in question.
A technology-led approach to capturing, authenticating and storing immigration and ID documentation is a highly effective approach to mitigating this substantial area of risk for HR teams, while avoiding the threat of a civil penalty notice.
Self-service technology also offers an automated solution for employers looking to provide a high standard of support to relocating employees.
Through a self-service system, employees are able to access up-to-date information to help in organising their move, from budget management, to accessing preferred suppliers, and finding out more about their destination.
Through automation, you are aiming to operate seamless mobility processes. But more than this, automation also has the advantage of enabling metrics and data collation. This not only allows you to measure return on investment, it also provides intelligence for wider strategic application, benchmarking and best practice purposes.
Data collation & analysis
It is paramount for organisations to understand the full extent of their mobility activities. This goes beyond cost counting.
Organisations should look to capture data relating to the full mobility life cyle. Process leadtimes and workflows. Career progression metrics. Attrition rates.
This also includes the basics – employee data such as dates of birth, addresses and assignment lengths, through to salary and compensation details, and details of employees’ bonuses.
The performance of your mobility programme can be tracked through advanced reporting and analytics capabilities, ideally reported in real-time. Which means organisations need to develop the supporting infrastructure and systems integration.
But the return on this investment is there for the taking. Collation and analysis of relevant data can drive efficiencies and better decision-making, improved value, enhanced performance and increased return.
Internal collaboration
For many organisations, global mobility remains a discrete function of the HR department. The mobility function’s contribution to organisational initiatives such as succession planning tend to be limited to operational support.
But closer alignment of global mobility to other internal functions such as talent management, tax and finance can both improve internal processes and operations.
For example, a prime area for collaboration is candidate selection, by bringing together expertise from reward, talent and mobility functions.
While technical skills are a priority, the potential success of an overseas post also depends on an individual’s ability to cope with the relocation experience as a whole, not just undertaking the job at hand.
Failure of an assignment due to candidate selection results in the premature return of a demotivated employee, leaving you behind schedule, at cost, with a vacant overseas post to fill.
An efficient approach would ensure all criteria are addressed together at an early stage – dependants, competency, readiness, career progression – to avert issues and ensure the success of the assignment.
Training
Achieving consistency in mobility processes across your organisation will enable you to derive the cost benefits at scale. This includes your approach to cost management, mobility processes, onboarding processes and ongoing compliance processes.
Training of key internal personnel can help to improve knowledge and performance of global mobility. Remember to consider who within your organisation is required to have a global mind-set, both now and in the future, and include them in your training programme. This should take you outside the central HR function, to also include for example line managers, assignees and business travellers.
Individuals will also require training and guidance to support adaptability, so training also needs to extend to relevant local culture.
Focus on efficiency
As non-standard mobility requirements are driving fundamental changes in traditional mobility functions and operations, global mobility programmes will continue to be under pressure to operate with optimal efficiency.
We are experienced advisers to organisations on global mobility, strategy and compliance issues. For more information, please contact us.
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Global mobility efficiency FAQs
What is global mobility efficiency?
Global mobility efficiency refers to the ability of businesses to manage the movement of employees across international borders in a cost-effective and compliant manner. This includes handling immigration, tax, payroll, and employee well-being while ensuring minimal disruption to business operations.
Why is global mobility important for UK employers?
Businesses operating internationally or expanding into new markets rely on global mobility to transfer talent where it is needed most. A well-managed mobility programme supports business growth, ensures compliance with international regulations, and enhances employee experience.
What are the main risks associated with global mobility?
Key risks include non-compliance with immigration and work permit requirements, unexpected tax liabilities, legal issues related to employment contracts, and cultural or logistical challenges for employees relocating to a new country. Failure to address these risks can lead to fines, legal disputes, or reputational damage.
How can employers ensure compliance with immigration laws?
Employers must stay up to date with visa and work permit regulations in both the UK and the destination country. Seeking legal guidance, ensuring correct documentation, and monitoring changes in immigration policies help prevent compliance issues.
What tax considerations should be addressed in global mobility?
Businesses must assess tax liabilities for both the company and employees, including income tax, social security contributions, and potential permanent establishment risks in overseas jurisdictions. Employers should seek expert tax advice to minimise financial exposure.
How can businesses control costs while managing global mobility?
Careful planning is needed to manage relocation expenses, tax implications, and compliance costs. Employers should evaluate the necessity of international assignments, explore alternative work arrangements, and optimise relocation packages to balance cost and employee support.
What factors impact employee experience in international assignments?
Relocating employees may face challenges such as cultural differences, housing issues, and family considerations. Providing support through cultural training, relocation assistance, and ongoing communication can improve engagement and retention.
How can UK employers reduce the risk of permanent establishment issues?
A presence in another country can trigger local tax obligations if an employee’s role meets the criteria for permanent establishment. Employers should assess assignment structures, work locations, and local business activities to ensure they do not inadvertently create tax liabilities abroad.
What are the benefits of having a structured global mobility strategy?
A clear strategy ensures compliance, reduces costs, improves employee satisfaction, and enhances business agility. Employers with an effective mobility programme can respond quickly to international business opportunities while minimising legal and financial risks.
Glossary
Term | Definition |
---|---|
Global Mobility | The process of managing the movement of employees across international borders for business purposes. |
Global Mobility Efficiency | The ability to handle international employee transfers in a cost-effective, compliant, and streamlined manner. |
Immigration Compliance | Ensuring that employees have the correct visas and work permits for the country in which they will be working. |
Tax Liability | The legal responsibility to pay taxes in a given country, which can apply to both employers and employees in international assignments. |
Permanent Establishment | A taxable presence in a foreign country that may arise when employees conduct business activities there for an extended period. |
Employment Contracts | Legally binding agreements outlining the terms and conditions of employment, which must comply with the laws of the relevant jurisdictions. |
Relocation Package | A set of benefits provided by an employer to assist an employee with moving to a new country, including housing, travel costs, and support services. |
Social Security Contributions | Payments required by law to fund social welfare systems, which may vary depending on the country of employment and assignment duration. |
Assignment Duration | The length of time an employee is expected to work in a foreign country, which can affect tax status, visa requirements, and legal obligations. |
Cost Control | The process of managing expenses related to global mobility, including relocation costs, tax obligations, and compliance fees. |
Remote Work Compliance | Adhering to legal and tax requirements when employees work remotely from a different country than their employer’s primary location. |
Secondment | A temporary work assignment in another country, where an employee remains employed by their home organisation while working in a different jurisdiction. |
Tax Equalisation | A policy used by employers to ensure that employees on international assignments do not pay more or less tax than they would in their home country. |
Shadow Payroll | A payroll mechanism used to ensure that tax and social security obligations are met in a host country while the employee remains on the home country payroll. |
Cultural Adaptation | The process of adjusting to a new country’s customs, work practices, and social norms, which can impact employee well-being and productivity. |
Author
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 Morrishttps://www.davidsonmorris.com/author/anne/
- Anne Morrishttps://www.davidsonmorris.com/author/anne/
- Anne Morrishttps://www.davidsonmorris.com/author/anne/
- Anne Morrishttps://www.davidsonmorris.com/author/anne/