There is a common misconception that the expatriate program entails a full coverage of the costs, including compensation differential, of relocating to work in the host country. This may be true for certain expatriates, but for most others, the coverage of the costs and support by the employer, ranges between “minimal to less than full” coverage. For example, minimal coverage could mean that the expatriate receives none, or some (not full) adjustment to the local cost of living, receive local compensation (which may be lower than the home compensation), and does not enjoy tax equalization.
This gives rise to the question: If the expatriate may potentially be worse off financially or otherwise, than working in the home country, why would he/she make the move? Some of the factors that may help explain such a decision include:
- Intangible reasons, e.g., attraction to the host country’sulture, living environment, or for personal reasons
- The desire to take up new challenges of working in the host country, such as having additional work responsibilities, change in work scope, a new job position or opportunities for learning, etc.
- Desire of the employee to seek a change in his/her work environment and team
- To meet new people, globally
- Gain global work experience
Global Mobility Checklist
Once the global mobility initiative is decided and approved, the next important step is to plan and execute successfully. The following checklist outlines the factors that should be considered by the company, when planning a global mobility initiative. This checklist is by no means exhaustive; it is intended to provide a framework that can be customized to each company’s unique parameters, for a successful global mobility roll-out. Thereafter, the external support from global business solutions service can help to successfully implement the global mobility framework and provides relocation assistance.