1. Tax Costs
Sending your employees to work overseas can be an administrative nightmare. Navigating the difference in tax is a crucial step.
The employee might end up taking home less pay if they have to pay taxes and social security in their new country than if they'd remained in Australia. Taking steps to create a global solution for payroll and tax in your new location should be one of your top priorities.
It’s essential for regulatory compliance and ensuring the happiness of your employees working overseas. Navigating the right processes is challenging but going through a recruitment partner like Easy Skill can help. We give technical assistance where you need to get employees moving and make the life of your HR administration easier.
2. Legal requirements
To be able to mobilise employees in another country, it’s the employer's responsibility to research and get the right VISAs and work permits for the employee as well as updating employment contracts. This isn't an easy process and professional advice should be taken here.
3. Differences in law
Normally, laws apply where the work is performed. So, if your Australian employee moves to Papua New Guinea, PNG laws may apply to your relationship with that individual. The longer an employee works in that country, the more likely the local laws will apply.
Employers need to take into account the specific laws in the host country as well as the length of time of the employee plans to work from that location when thinking about employee mobility.
4. Assignment costs
There are many different costs involved when mobilising employees. Some of the common costs involved are:
- Reimbursements for flights and home leave
- Allowances for cost of living
- Language lessons
- VISAs and work permits
- Additional taxes and social security
It's essential that all these steps are done right the first time. Trying to organise all of this can make for an administrative nightmare. Getting technical assistance for employee mobility will take the stress away and make sure everything is done right.
5. Aligning talent
Mobilising employees to work overseas can be a costly venture. You'll want to make sure you're sending the right employees with the right skills and abilities for the job. Any type of international skill is valuable, such as the ability to speak another language.
Try to align employee talent to your global needs: which employees will benefit and deliver from an international assignment?
It's equally important to consider the employee's spouse and family needs before sending them on an overseas assignment.
6. Living safety
Physically moving employees and making sure they have all the right documents is only one part of the challenge. You'll likely also have to arrange their new housing and make sure their welfare needs are met in their new country.
Making sure they're close to the things they need, the distance they are from their new workplace, how they'll get about, and being in a safe and secure neighbourhood are all important factors that need to considered before you sending your employees on an overseas assignment.
7. Integration within the new country and workplace
Employees are more likely to be successful on foreign assignments if their employers take steps to make sure that they are familiar with the language and culture of the country where they will be working.
But don't forget that your employees will need time to get used to their new environment. You can help them to adjust by offering language lessons and cultural training sessions as well as providing access to local amenities such as shops and sporting activities.
If your employees' have children, make sure they have easy access to education and leisure opportunities if they have moved with them. A lot of overseas locations have international schools. It may be worth offering employees some sort of allowance which they can put towards their children’s education needs.
Share this Article