Top 10 Global Mobility Issues

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Padmaja Gedapar
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What is Global Mobility

Global Mobility is a Human Resources function that refers to a multinational corporation’s ability to move its people to offices in various geographies. Any international assignment calls for employees to move abroad as part of their jobs.

Benefits of global mobility

  • Right talent at the right time: The value of skill is seen only when the skill is deployed at the right place at the right time. Simply put, skill is seen only when utilized, which global mobility brings in.
  • Transfer of knowledge: Exchange of knowledge and expertise brings in enhanced additional value to the company.
  • Unity in diversity: It is essential for international businesses to reflect their global presence through a diverse workforce.
  • Accelerated career and visibility: Deployment overseas brings invaluable experience and exposure that has a tremendous impact on their career.

There are a lot of questions that arise during global mobility. Numerous behind-the-scenes activities are required to create successful global mobility. Issues related to paperwork, logistics, etc are frequent.

A lot of things could go wrong. One way to be prepared is to understand the top ten global mobility issues.

1. Travel papers

Travel papers must be perfect. There is no adjustment involved. Immigration does not and should not compromise if any documents are missing. Paperwork must have all the required information, all of which must be accurate. Any false declarations will lead to disembarkment.

2. Compliance issues

Compliance is key to any overseas travel. The laws and rules of different countries vary. It is vital to stay updated on any changes that could be made in the last minute. Don’t let ignorance deny you an opportunity to grow global

3. Misunderstanding of formalities

Formalities can be complicated and ambiguous. That does not allow room for those who have misunderstood it. Such situations call for an expert to go through the fine lines and ensure that everything goes according to plan.

4. Entry into new markets

Entry into new markets will not be easy. A local partner with the right network is required to ease your entry into new markets. Without inside contact, global mobility could run into a few hurdles.

5. Permanent establishments

When an MNC deploys contractors or employees as part of a global mobility strategy, the question of permanent establishment arises depending on the type of business activity. During expansion, it indicates additional sites or affiliates of a company which are established as places of business, but which are dependent on the head office.

6. Corporate tax issue

Global mobility could create corporate tax issues. Create a smooth tax strategy to reduce compliance and tax risks.

7. Reporting requirements

For example, if the deployed employees are not reported, it could put a full stop to future transactions. Worldwide compliance with employees’ individual and payroll reporting, immigration and tax filing requirements, etc. are some of the important reporting requirements.

8. Cross-border employment structures and related documentation

Structuring employment contracts for employees crossing borders can be tricky. Payroll is a critical aspect of this process and no organization can afford to go wrong here.

9. Deferred compensation and foreign pension arrangements

When it comes to compensation, delays could lead to penalties. Organizations must keep in mind the laws of the homeland as well as the country of operation.

10. Mergers, acquisitions and dispositions of business interests

Entering into any transaction involves mergers, acquisitions and dispositions of business interests and it must be seamless. Errors result in blackmarking of the organization.

Each assignment or secondment is unique and will require a separate review in order to comply with international law. With regulations not being standardized, one must be prepared to outsource global mobility to an expert to ensure that everything is taken care of. It requires experience, expertise and dedicated resources and might not be a feasible operation for an organization looking to concentrate on vital global expansion only.

The value of skill lies in its utility. Do not let your resources be denied what they deserve by keeping them too close to the home ground. Expand their wings and enable them to experience life overseas. Global mobility benefits not only the employees, but the organization as well. Give us a call and we will tell you more about how

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