AIRINC recently hosted a group of EMEA Global Mobility Senior Leaders for a virtual roundtable. The discussions kicked off reviewing the results from our recent One-Way and Host-Plus benchmark surveys. Here’s a closer look at all the themes that emerged.
Diverse Assignment Structures
Global organizations deploy various assignment models, each offering unique benefits and complexities. Home-based packages provide comprehensive support—covering housing, education, and tax equalization—while maintaining a strong connection to the home country. However, they can be costly and administratively demanding. In contrast, host-plus and local-plus assignments integrate employees into host countries with selective home-country benefits, offering flexibility but adding taxation and compliance challenges. One-way transfers are gaining popularity for their cost efficiency in permanent relocations but require careful planning to address long-term concerns like retirement and social security.
Managing Retirement and Social Security Challenges
One of the most significant challenges in global mobility is ensuring continuous social security and retirement benefits. The discussion highlighted the critical need for clear communication and transparency for employee. Companies face tough decisions: Should they maintain home-country contributions or switch to host-country systems? Each option impacts employees differently, especially upon repatriation. Aligning policies with regulatory requirements—particularly in countries like France and Germany—adds further complexity.
Fairness in Hardship Allowances
Determining fair hardship allowances is an ongoing debate. Some companies apply a universal mobility premium, while others tailor allowances based on host-country conditions. Cultural expectations also vary, complicating efforts to standardize policies. Simplified, transparent approaches can help balance fairness and consistency across diverse global assignments.
Optimizing Short-Term Assignments (STAs)
Short-term assignments (3-12 months) present unique cost challenges, particularly when supporting families. Many organizations are adopting leaner STA models, such as reducing allowances for families or focusing on single-assignee moves. Flexibility in policy design is essential to balance cost control with employee needs, ensuring assignments remain viable and effective.
Policy Segmentation and Transparency
Segmenting global mobility policies based on employee roles and assignment types is becoming more common. This targeted approach allows companies to customize support for strategic leaders, skilled professionals, and developmental roles. However, clear criteria and transparency are crucial to maintaining fairness and managing employee expectations.
Key Takeaways for Global Mobility
The insights from this session underscore the need for simplified, transparent, and well-communicated policies. By balancing cost efficiency with employee satisfaction and ensuring clear communication around social security and retirement planning, companies can manage the complexities of international assignments more effectively.
As global mobility continues to evolve, these strategies will help organizations stay agile, fair, and responsive.