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Global Assignment

This article covers meaning, importance, steps & example of Global Assignment from HRM perspective.

What is Global Assignment?

Global assignments are business projects which are allotted to some employees outside the home country. Global assignments are employers assigning their employees on projects which are globally implemented. Global assignments are mostly taken place in multinational companies and may involve employees to relocate from their current country to a different country where the assignment is assigned.

Since globalization has taken place rapidly and the world has become more connected, it has become a very common phenomenon. Many countries face skill shortage or require an expert for a particular assignment so they would hire the person with the requisite skills or knowledge from other countries and pay the person a hefty compensation as demanded by the person.

Steps in Managing Global Assignment

Some steps in managing global assignments & international projects are:

1. Evaluating objectives of the international project

2. Identifying team members & giving pre-requisite training

3. Pre-departure preparation of activities & work to be done

4. On job activities on global assignment at international location

5. Project completion

6. Evaluation & reassignment if required

Importance of Global Assignment

Global assignments as identified by experts in international human resource management are of three types

1. Technical assignments: Employees may be assigned global assignments if they have the technical skills that are required by the MNC for a particular assignment and the MNC is not able to find anyone as capable as that person internally and in that particular country, if a person is located within the MNC in another country then that person is sent on a technical assignment.

2. Developmental assignments: Developmental assignments are typically used to develop a project or concept that is new to a different location or develop skills in a different location which is not implemented in that location, it is also used by institutes to bring in faculties from different parts of the globe to give the students an exposure to different perspectives and cultures and their thoughts on the scenario of the subject.

3. Strategic Assignments are global assignments in which a key partner is sent to launch a product in a key location, develop the market or get necessary changes in the business strategy or even sign Memorandum of Understandings and Joint Venture deals.

Advantages of Global Assignments

Some advantages of global assignments are

1. Skills and knowledge which are not available in a country can be brought from other countries.

2. MNC’s are able to get their projects done more effectively and not having the problem of talent not being available.

3. Employees may be motivated to join an MNC which assigns global assignments to its employees regularly.

Example of Global Assignment

Here is an example of global assignment for a hypothetical organization Company A. Company A could not find a person who could communicate in French, German and Hindi in their main headquarters in USA as they felt that there would be a gap in understanding if the language is translated to English, and then to either of these languages. So, since they did not find the any person who had proficiency in these three languages in their headquarters and started finding for a person with the language skills throughout all their office. Company A found a person in their international office in India with the knowledge in these three languages. So, they assigned her the project under a global assignment and she was asked to relocate to the main headquarters located in the United States for the duration of the project.

Hence, this concludes the definition of Global Assignment along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team . The content on MBA Skool has been created for educational & academic purpose only.

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global assignment

Quick reference.

Is a job assignment within a multinational corporation that involves expatriation; that is the relocation of an employee to another country. Specialists in international human resource management identify different types of global assignment. Technical assignments occur when employees with technical skills are sent from one country to another to fill a particular skill shortage. Developmental assignments, in contrast, are typically used within a management development programme and are used to equip managers with new skills and competencies. Strategic assignments arise when key executives are sent from one country to another to launch a product, develop a market or initiate another key change in business strategy. Finally, functional assignments resemble technical assignments but differ in one important respect. Technical assignments do not require the assignee to interact extensively with employees in the host country but this is a requirement of functional assignments and for this reason assignees are often prepared through cross-cultural training.

From: global assignment in A Dictionary of Human Resource Management »

Subjects: Social sciences — Business and Management

A Successful International Assignment Depends on These Factors

Boris Groysberg
Robin Abrahams

Your marriage, your family, and your career will all benefit from advance planning.

The prospect of an international assignment can be equal parts thrilling and alarming: Will it make or break your career? What will it do to your life at home and the people you love? When you’re thinking about relocating, you start viewing questions of work and family — difficult enough under ordinary circumstances — through a kind of high-contrast, maximum-drama filter.

BG Boris Groysberg is a professor of business administration in the Organizational Behavior unit at Harvard Business School and a faculty affiliate at the school’s Race, Gender & Equity Initiative. He is the coauthor, with Colleen Ammerman, of Glass Half-Broken: Shattering the Barriers That Still Hold Women Back at Work (Harvard Business Review Press, 2021). bgroysberg
Robin Abrahams is a research associate at Harvard Business School.

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5 Types of Global Assignments: What’s Best for Your Company?

Last Updated on August 22, 2024

Employers and employees have many reasons for sending employees and other talent on different types of global assignments worldwide . Sometimes, companies need to relocate their employees temporarily for a short-term finite assignment. In other scenarios, they must send talent abroad to work for a more extended assignment to facilitate a business objective successfully.

No matter the type of, or reason for, an international assignment, they are essential in global mobility programs and allow for avenues to ensure international organizations’ success.

What are Global Assignments?

Global assignments require an employee to relocate internationally and undertake work in a destination country for a specified time. Global assignments can vary in duration , often differentiated by being classified as either short-term or long-term.

Types of Global Assignments

HR professionals may wonder, “What is an example of a global assignment our company can utilize for the needs that arise in our industry?” Companies have various options for assignments when devising an optimal global mobility strategy.

Employers can leverage multiple forms of global assignments to meet their needs and maximize their ROI by choosing impactful yet cost-effective assignments based on assignment length, location and ultimate business need.

Short-Term Assignment

A short-term international assignment usually lasts for a year or less. Employers generally have a specific goal for the employees they send on short-term assignments, such as facilitating training, completing a particular project, or temporarily filling a vacancy.

Many short-term assignments are single-status, whereby only the employee travels, and dependents do not join for the time abroad. Companies may also make use of short-term assignment options when trying to reduce the cost of conducting work abroad despite a need to have talent present on location abroad.

Long-Term Assignment

Companies also often leverage long-term work assignments for various reasons. Employers often contemplate long-term assignments lasting one to three years. However, it is commonplace for employers to extend assignments due to continuing business needs, the preference of the employee, or a variety of other reasons. Many companies contemplate a maximum assignment length of five years, primarily due to cost. A stay of up to five years is still often considered temporary. Still, assignments longer than five years are more likely to be seen as permanent.

Employers typically send their employees on long-term international assignments for strategic reasons such as expanding the business into new markets, opening new offices, developing talent and establishing teams of global leaders.

Since long-term assignments last an extended period, employers have more factors to consider than those classified as short-term. One key consideration is that employees on long-term assignments will likely need to find housing, which may include renting or buying a house. Another is the tax component, as there are likely to be more significant tax implications where there is an extended stay in a given destination.

Employees with families are more likely to bring their dependents along on longer assignments, which means their family members may also need to find work or education options. You’ll also want to consider transportation and healthcare needs and tax obligations.

Business Travel

Business travel resembles a short-term work assignment because employees don’t stay at the destination for an extended period. The main differentiator is the type of activities undertaken during business travel are much less associated with what’s classified as work and are, instead, typically limited to hands-off activities and business meetings.

Employees often stay in a foreign country for just a few days . However, business travel trips can last multiple weeks in some scenarios. Employees may also travel for business between several countries, creating added considerations employers should consider to ensure compliance.

Remote Work Visas

Remote work visas are available in many countries around the world. Some countries introduced them during the COVID-19 pandemic to stimulate their economies and encourage companies with remote work policies to send their talent there without formally relocating.

Remote work visas quickly gained traction, and governments continued establishing similar statuses. They are an increasingly popular option for companies that allow employees to work from anywhere on a remote basis.

The application cost per visa varies from country to country, as does the visa’s duration. Some countries will extend the validity of temporary remote work visas , while others contemplate only a finite period of stay for visa holders. Countries often require proof of income as part of these types of visa requests and may also have provisions for bringing dependents that potential applicants should consider.

Commuter Assignments

An image from the Envoy Global 2024 EMEA Immigration Trends Report showing that employers Employers want more rotational and short-term work programs for moving employees across the EMEA region.

Commuter assignments differ from long-term and short-term assignments because employees regularly commute from their home country to the destination jurisdiction.

While companies use short-term and long-term global assignments worldwide, commuter assignments are typically regional because employees cross neighboring borders. Commuter assignments can be good alternatives for employees who need to work in another country but prefer not to relocate entirely for personal reasons.

What Types of Global Assignments Should Companies Leverage?

HR professionals often ask, “What are the different types of global assignments we can use?”.

Businesses have different reasons for needing to send talent abroad for work assignments. Therefore, employers should carefully consider what they are trying to achieve when deciding what type of global mobility strategy to implement.

Along with the duration of the assignment, employers should consider the employee’s circumstances – are they hesitant to leave family behind, or do they have other obligations that would impact the length of the assignment? Cost is another critical consideration for employers when deciding on a global mobility strategy and will be a decision driver for most programs.

Employers must use various services to ensure a smooth transition no matter how long employees stay in another country. A global immigration services provider such as Envoy Global can partner with your organization to decide on the proper assignment strategy for the company and employee and support the acquisition of the necessary immigration status to allow for a compliant work engagement in the destination country.

Envoy offers valuable services to educate employers on all global assignment types and advise on the assignment strategy that will best ensure your organization’s success. Every company’s HR team partners with a Global Account Manager to create a successful and sustainable global mobility program, including guidance on best practices for leveraging global assignments.

With so many moving parts to global mobility, HR managers can rest assured that working with Envoy’s experienced team helps make relocating talent worldwide a seamless and efficient experience.

Learn About Envoy's Global Immigration Services

Content in this publication is for informational purposes only and not intended as legal advice, nor should it be relied on as such. Envoy is not a law   firm, and   does not provide legal advice. If you would like guidance on how this information may impact your   particular situation   and you are a client of the U.S. Law Firm, consult your attorney. If you are not a client of the U.S. Law Firm working with Envoy, consult another qualified professional. This website does not create an attorney-client relationship with the U.S. Law Firm.

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Managing International Assignments: Employer Guidance

Anne morris.

28 August 2024

IN THIS SECTION

Organisations deploy personnel on international assignment for many reasons. Whether you are addressing an internal skills gaps, supporting leadership development or looking to improve working relations across borders, for any international assignment to be successful, there will be a multitude of legal, immigration, tax and pensions risks to manage when sending employees overseas.

Global mobility programmes have traditionally been developed with a uniform approach, driven largely by cost management and operational efficiencies. However, organisations are increasingly taking a more flexible and bespoke approach to overseas assignments in order to attain advantage in areas such as compliance and talent development and retention.

While a one-size-fits-all approach to the fundamentals of mobility management may be a commercial reality, overlaying this should be areas of specific consideration and capability that can be adapted to the specific needs and risks of each international assignment. This allows for greater focus on the assignment’s commercial objectives and the agility to respond to the organisation’s changing global mobility needs .

International assignment objectives

From the outset of any successful assignment project, there should be clarity of objectives. Why as an organisation is the decision being made to invest in sending an employee to perform services in a different country?

International assignments can offer value in many areas, many of which typically present in the longer-term.

Internal knowledge transfer is a common assignment objective to address talent or skills shortages within overseas regions. Deploying key talent with specialist knowledge and skills to train and upskill local team members can help to resolve local labour or skill supply issues. The cost/benefit analysis can explore potential missed opportunities or delays resulting from shortages in the local talent market.

International assignments are also highly effective in building relationships and improving intercultural working. This could be relationships within an organisation, with local clients and intermediaries or local authorities. Face to face interaction remains highly effective and valuable in building influence on the ground and can offer significant potential for advantage over competitors.

Beyond relationships, value is also created in the knowledge gained by assignees working overseas, from insight into local customs and culture, improved language capability and a general understanding of how business is ‘done’ within the region and helping to adapt organisational protocol to suit the local environment. Combined with the assignee’s existing market and organisational knowledge, they can offer a global perspective with local details, bringing considerable potential to build competitive differentiation.

With clarity of objective, you can then consider whether an international assignment is the most appropriate solution . Is it possible to hire or promote locally? Would multiple, shorter trips be as effective in performance terms but with lower cost implications? International assignments demand significant investment and it will be important to assess cost projections against expected return and value to the organisation.

International assignment structures

As well as clarity of objectives, a successful international assignment also requires clarity of contractual terms, both to manage the expectations and understanding of the assignee, and also for the mobility team to identify support needs and potential risks.

Now more than ever, organisations are developing portfolios of mobility programmes to enable an agile approach to global mobility that responds to the organisation’s changing needs for international personnel mobility. Assignments come in increasingly different shapes and sizes, from permanent relocations or temporary exchanges, secondments or transfers to a different region or to a different organisation.

While organisations demand greater flexibility and agility from their global mobility programmes, underpinning the activity should be an appropriate assignment structure with a supporting contractual agreement that enables compliance with regulatory and legal duties.

When considering which structure to adopt, organisations will need to consider a range of factors including the type of assignment and the relevant environmental context such as regulatory, immigration, employment law, tax, pension implications.

For international assignments, where the employee is moving from the home country employer to a host country employer, the employer could consider a number of assignment structures, including:

The employee continues to be employed solely by the home employer.
The employment contract with the home employer is suspended for the duration of the assignment while the employee enters into a new employment contract with the host employer.
The employment contract with the home employer is terminated with a promise of re-employment at the end of the assignment while the employee enters into a new employment contract with the host employer.
The employment contract with the home employer is suspended and the employee enters into a contract with an international assignment company (IAC) within the employer group
The employment contract with the home employer is suspended and the employee enters into a contract with both an IAC and the host country employer.
The employee remains resident in the home country and works in a host country under a commuter assignment.

Each type of assignment structure offers advantages and disadvantages which should be considered in light of the individual assignment. For example:

Do employment laws in the host country require the assignee to be employed by a local entity?
Would the assignee be agreeable to ending their home country contract and starting a new agreement with a new entity in the host country?
Are there terms in the home country contract that would need protecting in any new agreement, such as restrictive covenants?
Which jurisdiction would prevail, the host or home country?
How would local laws interpret a situation where there is no contract of employment with the employer in the host country?
Issues such as income and corporate tax, pension and employment rights and responsibilities will need to be identified and assessed against the specific assignment objectives and budget and the assignee profile and circumstances.

Employment law

Employment law implications come hand-in-hand with selecting an appropriate assignment structure.

Home-country employment contracts for employees on assignment from the UK to an overseas jurisdiction should generally be interpreted under the laws of England and Wales. If a host country contract is used, there should be specific provision in the agreement to determine which jurisdiction would prevail. However, neither position is guaranteed, for example where issues of domicile arise which may supersede any contractual provisions. Again the need is to assess on an individual assignment basis.

As well as explicit contractual considerations, employers should also be aware of any statutory rights or implied terms under UK law that may continue to apply even in the host country.

Specific provisions may also need to be made to ensure confidentiality and appropriate handling of commercial and sensitive information. While this may be standard or expected for senior employees, those on assignment should also be considered for such terms relevant to the type of assignment and the commercial objectives of the project.

Immigration options

Successful international assignments will invariably require careful consideration of the immigration requirements. Governments across the globe are adopting increasingly protectionist stances towards economic migrants, as policies seek to favour domestic workers. This means business travellers and visa holders are now facing greater scrutiny when applying for work visas and when trying to gain entry at the border.

Visa options and criteria vary between countries and are subject to frequent change. Where permission is required for the assignee to work in the host country, it will be important to ensure the assignee applies for the most appropriate route to meet the assignment need, whether that is a work permit or a business visitor visa. The immigration requirements and options will be determined in most part by the rules of the home and host countries, the nationality of the assignee (and any of their dependants who will be joining them overseas) and the nature of the activities the assignee intends to perform during their time in the host country.

For example, a British citizen may be eligible to travel to the US to attend sales meetings and work conferences for up to 90 days without having to apply for a visa but to conduct ‘gainful employment’ they would need to look at a specific work visa, such as the L-1 visa for intracompany transfers.

A further factor will be the specific requirements of the visa or permit. Work visas, for example, may require sponsorship of the employee by a local entity with valid sponsor status. The application process for work visas are typically resource-intensive and in many cases will require the employer to provide compelling evidence as to why the role or work cannot be performed by a worker resident in the host country.

Preparation will, therefore, be critical, ensuring there is sufficient time to consider the relevant immigration options in light of local rules, and to then make the required application. Complications may also arise where the employee does not meet certain requirements under the local rules, for example if they have a past criminal conviction or negative immigration record. This will require careful handling and, depending on the host country’s rules, may require submission of a visa waiver to explain the issue and provide assurances of the employee’s eligibility by requesting a discretionary decision on the application.

Assignee remuneration

Relocation packages are typically the biggest expense associated with an international assignment. While cost control will remain a concern, it is important for employers to ensure they are offering packages that are competitive within the market and that the package will support both the commercial objective of the assignment and compliance with associated legal and tax risks.

Home-based packages remain common, including those which may be markedly above local market compensation levels, particularly in circumstanecs where the assignment need is business-critical.

It may be possible however to look at offering a lower package than the home-based option, by either localising the package to harmonise with host nation levels or to develop a ‘local-plus’ offering that maintains a degree of competition, but this can be challenging to apply consistently across all assignment types and locations.

Again, consideration should be given to the individual assignment and the assignee. Millennial workers for example are generally understood to value international experience and the remuneration package may not be their primary concern where the opportunity for overseas exposure is available.

For organisations with a substantial cohort of international assignees and travellers, it may be more appropriate to build a compensation scheme specifically for globally-mobile personnel.

Importantly, assignees who will remain under an employment contract in their home country may continue to be subject to home country payroll while on assignment. This will also enable pension and benefits to be offered in the same way through the home country. Taxation, however, raises more complex issues, for example where withholding rules apply in the host country. This will require specialist guidance to ensure tax liabilities in the home and host country are correctly managed and met withiin the appropriate timeframes.

Need assistance?

International assignments are demanding on the employer and the employee, but have become critical given the business imperatives to meet talent and development needs and achieve competitive advantage .

Employers should not lose sight of the need to understand the specific risks of each individual assignment, which increasingly demand bespoke solutions. While compliance , efficiencies and cost control should be underpinned by a solid global mobility infrastructure of policies, systems and procedures, the current shift is away from a uniform approach to assignment management, instead moving towards more agile management of each assignment, shaped by the specific assignment objectives, budget and risks in relation to immigration, tax, remuneration and employment law.

DavidsonMorris’ specialist global mobility consultants provide expert guidance to employers on all aspects of international assignments, from programme management and implementation to strategic consultancy to ensure value and return on the mobility investment. We understand the commercial drivers behind mobilising workers and the need to ensure compliance without impacting return on mobility investment.

We work with senior management teams, HR and mobility professionals to develop strategies that ensure effective compliance risk management while supporting delivery of the organisation’s global mobility objectives. For advice on making the most of international assignments, speak to us .

International Assignment FAQs

What is an international assignment?

An international assignment is when an employee is temporarily relocated to work in another country on behalf of their employer. These assignments can vary in length and purpose, ranging from short-term projects to long-term placements or even permanent moves.

How long do international assignments typically last?

The duration of an international assignment can vary greatly. They can be as short as a few months or extend to several years. It depends on the needs of the business and the specific goals of the assignment.

Do I need to provide cultural training for employees going on international assignments?

Cultural training is highly recommended. It helps employees adapt to the cultural nuances of the host country, improving their effectiveness and reducing the risk of culture shock. This training can also support better communication and integration within the local team.

What legal considerations should I be aware of for international assignments?

There are several legal considerations, including obtaining the correct work visas and permits, understanding employment laws in the host country, and ensuring compliance with both UK and local regulations. It’s crucial to consult legal experts to avoid any pitfalls.

How can I support employees and their families during an international assignment?

Supporting employees and their families involves providing relocation assistance, helping with accommodation and schooling, offering language courses, and ensuring access to healthcare. Regular check-ins and a clear repatriation plan also help maintain their well-being.

What is the process for repatriating employees after an international assignment?

Repatriation involves planning for the employee’s return to the UK, both in terms of logistics and reintegration into the workplace. It includes arranging their move back, addressing any reverse culture shock, and ensuring they have a clear role and support upon their return.

How can I measure the success of an international assignment?

Success can be measured through various key performance indicators (KPIs) such as the achievement of business objectives, employee satisfaction, skill development, and the impact on the company’s global operations. Regular reviews and feedback from the employee and host team are also essential.

What risks are associated with international assignments?

Risks include geopolitical instability, health issues, and the potential for the assignment to fail if the employee cannot adapt. Mitigating these risks involves thorough planning, offering support systems, and having contingency plans in place.

Is it necessary to have a contingency plan for international assignments?

Contingency planning is vital to address any unexpected issues that may arise during an international assignment. This includes plans for emergency evacuation, alternative work arrangements, and ensuring continuous support for the employee and their family in case of unforeseen events.

Term	Definition
International Assignment	The temporary relocation of an employee to work in another country on behalf of their employer.
Global Mobility	The practice of managing the movement of employees across international borders for work assignments.
Tax Residency	The status of an individual that determines their tax obligations in a particular country.
Double Taxation Agreement	A treaty between two countries that prevents individuals from being taxed twice on the same income.
Work Visa/Permit	An official document that allows an individual to legally work in a foreign country.
Cultural Training	Education provided to employees to help them understand and adapt to the cultural differences of the host country.
Repatriation	The process of returning an employee to their home country after completing an international assignment.
Key Performance Indicators (KPIs)	Metrics used to evaluate the success and effectiveness of an international assignment.
Relocation Assistance	Support provided by the employer to help employees move to another country, including housing, transportation, and more.
Reverse Culture Shock	The psychological and emotional adjustment experienced by employees when they return to their home country after an assignment abroad.
Contingency Plan	A backup plan designed to address potential risks and unforeseen events during an international assignment.
Compliance	Adhering to local and international laws and regulations during an international assignment.
Geopolitical Risk	The potential impact of political instability or conflict in the host country on the assignment.
Global Talent Development	Strategies for enhancing employee skills and capabilities through international experience.
Cost Forecasting	The process of predicting the financial expenses associated with an international assignment.

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 Morris https://www.davidsonmorris.com/author/anne/ Govt Shelves Predictable Hours Act for Rights Under New Employment Rights Bill
Anne Morris https://www.davidsonmorris.com/author/anne/ Changes in Home Office Visa Processing Providers
Anne Morris https://www.davidsonmorris.com/author/anne/ Refused Tier 1 Entrepreneur Extension Overturned: Home Office Error
Anne Morris https://www.davidsonmorris.com/author/anne/ UK Register of Licensed Sponsors Guide

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility .

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners , we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

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Managing International Assignments: Compensation Approaches

A new international assignment landscape is challenging traditional compensation approaches

For many years, expatriate compensation has been focused on a dilemma: having assignees on expensive home-based expatriate package versus localization - which is about replacing expatriates with locals or at least transition expatriates from an expatriate package to a local salary. Many predicted that the traditional home-based balance sheet approach would gradually disappear. The predictions of the demise of the typical expatriate approach have been greatly exaggerated. We are witnessing the emergence of new compensation challenges instead, due to the complexity of having to manage multiple types of assignments and assignee categories.

The home-based approach still retains its utility for certain kinds of moves (e.g. business-critical assignments or moves to hardship locations). Local strategies are becoming more common but, due to the difficulty of applying them consistently in all transfer destinations, they are used only in some cases (moves between similar countries, developmental moves) and take multiple forms as “purely local” or local-plus approaches. Additional approaches like international compensation structures have emerged to address issues of global nomads.

The challenge for HR managers is, therefore, not so much to find the best approach applicable for all assignments as to deal with individual assignment complexity, envisage greater mobility policy segmentation and, if relevant for the company, map each compensation approach to a particular assignment in a consistent way.

The increasingly complex international assignment landscape: One size does not fit all anymore

Expatriates vs. Locals

One size fits all?

Let's localize assignees as soon as possible!

Expatriates

Rise of the third-country nationals

Need to add a cost efficient category for junior employees/developmental moves?

Traditional expatriates

Global nomads

Permanent transfers

Employee-initiated moves

Local or local plus?

Foreigners hired locally

Commuters (cross-border or regional

Multiple types of short-term/project/rotational assignments

Increasing number of home locations

Reviewing international assignment approaches in three steps:

Step 1: Understand the options available

Approaches linked to the host country (local or local-plus)

While these approaches sound logical and natural (when relocating assignees to a new country, they will be paid according to the local salary structure in that destination country) their practical implementation is often tricky. Few employees accept a salary decrease when moving to a low-paying country. It is often difficult to reintegrate assignees relocated to a high-paying country into their original salary structure due to their inflated base salary.

The host approach was historically not the most common for assignees on long-term assignments. However, we have witnessed a growing interest in recent years in host-based approaches – either a host approach or local-plus approach (host salary plus selected benefits or premiums) – as companies are trying to contain costs and as significant salary increases in many emerging markets make host strategies more attractive.

Approaches linked to the home country ("balance sheets")

Home-based approaches have been traditionally the most commonly used to compensate international assignees. Assignees on a home-based approach retain their home-country salary and receive a suite of allowances and premiums designed to cover the costs linked to expatriation. The equalization logic behind the balance sheet approach (no gain/no loss) encourages mobility by removing obstacles. Retaining the home-country salary facilitates repatriation. The balance sheet approach can, however, be costly. Many companies either look for alternatives or try to reduce the benefits and premiums included for less significant moves.

Step 2: Assessing assignment patterNs and business objectives

Assignment patterns

Are assignees moving between countries with similar salary levels, which would make the use of local or local plus easier or, on the contrary, are expatriates sent to host countries with different pay and benefits structures (low-paying to high-paying, or high-paying to low-paying country moves)? Are moves for a fixed duration – e.g., assignments lasting one to five years – or will the company rely on permanent transfers with no guarantee of repatriation?

Assignee Population

Are assignees coming mainly from the headquarter countries (typical for early stages of globalization) or is the number of third-country nationals already significant? A growing number of multinational companies report that the number of moves between emerging markets (“lateral moves”) is catching up with or exceeding the number from the headquarters, prompting a review of compensation approaches.

Are some assignees becoming true global nomads who move from country to country without returning home during their career? Employees, and especially the younger generations, are becoming much more mobile, but only a minority would be global nomads. These assignees are usually top-level managers, experts with unique skills, or globally mobile talent sourced from small or emerging countries where the absence of career opportunities perspective would preclude repatriation perspectives.

Company's philosophy and sector

Some industry sectors like services and finances relocate employees between major regional and financial hubs which facilitate the use of local approach, whereas energy and engineering companies transferred employees to hardship locations are a key feature of the business – and requires comprehensive expatriation packages often based on balance sheets and international salary structures.

Step 3: Assess segmentation needs

An increasing number of companies rely on expatriate policy segmentation to reconcile the cost control versus international expansion dilemma – how to have the same number of assignments or more without increasing the budget dedicated to international mobility. Segmentation means reallocating part of the budget to business critical assignees and limits the costs of non-essential moves.

Some of the commonly used assignment categories include strategic moves (business-critical), developmental moves (which benefit both the company and the employee), and self-requested move (requested by the employee but not essential to the business).

A consistent policy segmentation approach allows HR teams to present business cases or assignment options to management and provide a clearer understanding of the cost and business implications of relocation for different assignees.

It could also help manage exceptions into a well-defined framework based on a consistent talent management approach, as opposed to ad hoc deals.

Example of segmented compensation approach: the four-box model

Chart showing segmented compensation approach: the four-box model

Want to learn more about Expatriate Compensation Approaches?

Make sure to download our free guide to understanding compensation strategies

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International Assignments: Who's Going Where and Why?

What does the global-mobility landscape look like today?

According to global relocation services provider Cartus’ recent 2013 Trends in Global Relocation Survey, younger employees are most interested in taking international relocation assignments, with career development being the main reason, and sequential assignments are on the rise.

The survey’s findings shed light on who companies are moving (and where), what criteria they are using to select their mobile talent, and how they’re linking talent management to global mobility.

Assignee Demographics

The demographics of the expatriate population appear to be steady in terms of gender, with the percentages of both men (79 percent) and women (21 percent) shifting only slightly from 2012.

Generation X employees (56 percent) represent the largest age group of transferees. Baby Boomers (20 percent) posted a slight increase over 2012, while the youngest group—Millennials, or Generation Y (20 percent)—showed a significant increase.

Married expats with accompanying families are still the most common but have become a smaller percentage of global workers over the past six years. The category of those “married and traveling solo” has gained the most in percentage points over this period.

In general, younger, single male employees are showing the highest interest in global assignments, according to the survey. Women, Baby Boomers and employees with families are showing less interest in working abroad.

This profile holds true when the destination is an emerging market.

“Given the issues with schooling, housing and in many cases security, the lack of interest among assignees with families is not surprising,” the report said.

Some of the respondents’ comments include:

“Dubai and the Middle East have their limitations for certain lifestyles. People with family are not so open to move their family to areas with little infrastructure.”
“There is low interest in African regions.”
“Employees seem to be less interested in going to certain locations if assignment allowances do not properly reflect the hardships that exist in the new work/life environment.”
“As the quality of lifestyle in emerging markets can vary when compared to a developed country, it is difficult for entire families to relocate to these types of countries. We have implemented two-year assignments in these regions, which seem to be working, with a limited time in more challenging environments.”
“Although Millennials are interested in these types of assignments, we need highly experienced people to go in and develop our emerging markets, so sometimes the interest and the experience needed to be successful are out of sync.”
“Employees with families tend to shy away from emerging markets. They look for places with more stable economies and social systems, especially for reasons of safety, security and schooling. They are also concerned about fluctuations in currency and overall earning and savings power.”

Most and Least Desirable Locations for Assignments

When asked which of the developed countries generated the most employee interest for assignments, the clear choices were the U.S., U.K., Australia, Singapore and Canada.

Tier I India and China (developed cities such as Mumbai and Shanghai) ranked as the locations that workers were most resistant to relocating to among the developed countries, indicating these are still perceived as challenging markets.

For emerging-market locations, Brazil topped the list of nations to which employees most wanted to go, followed closely by the United Arab Emirates. Among the emerging-market countries that professionals were reluctant to work in are Nigeria, Saudi Arabia and Russia. Notably, Tiers II-IV for both India and China show up as generating significant interest and resistance. “This is likely attributable to the fact that as booming markets, they offer significant opportunities but also major challenges in infrastructure and other areas,” the report explained. “They are likely to be perceived differently depending on the assignee’s experience, appetite for adventure, and perception of the market’s importance to company goals.”

Motivating Factors

When asked for the main reasons why employees accepted an international assignment, companies said that while attractive compensation was named by a third of respondents (34 percent), the main motivating factors for employees were career development and advancement.

“This finding is a clear indicator that now is the time for companies to really start focusing on creating synergies across HR and businesses in order to ensure assignees are no longer ‘out of sight, out of mind’ and they are aware that the company is also focusing on their career. If employees’ value is not recognized, particularly the Gen Y/Millennial population, attrition rates will continue to rise,” according to the report.

Qualifying Criteria

As for the business criteria and qualifications that organizations seek when considering someone for an international assignment, leadership potential (80 percent) and technical skills (75 percent) were cited the most. A significant number of respondents (61 percent) also noted that the criteria depended on the project. Notably, only 33 percent are factoring in minimum performance ratings in selection criteria.

Flexibility and the ability to adapt to fluid circumstances (71 percent) led the list of behavioral characteristics businesses look for when considering an employee for an assignment abroad.

Second and third on the list of behavioral traits were career orientation and the desire to advance (63 percent), and the ability to work productively in an independent setting (57 percent).

Questioned about the family criteria their organization takes into account when considering someone for an international assignment, 68 percent of respondents said family status was not considered, while 25 percent said family criteria depended on the project.

Linking Talent Management and Global Mobility

When asked whether they agreed with the statement “The impact of an international assignment on an assignee’s career is positive,” 82 percent said yes, a 30 percent increase from 2009. “This supports the feeling that companies are paying more attention to, and realizing the importance of, how international assignments support employee growth, business value and retention,” the report said.

Building effective linkages between talent and global mobility will help ensure that assignments truly contribute to company business strategies, the report said.

According to respondents, the most frequently implemented strategies were:

Ensuring assignment objectives are incorporated into the employee’s performance review while on assignment (62 percent).
Collaborating with HR to ensure that employee performance ratings are considered for all workers on overseas assignments (60 percent).

The top three strategies under consideration:

Tracking postassignment employee advancement (63 percent).
Tracking postassignment employee retention (57 percent).
Developing a global talent pool for future assignments (56 percent).

Sequential Assignments Rising

Not all expatriates get to return home after an assignment. Fifty-eight percent of respondents have either many (13 percent) or a few (45 percent) “global nomads” who are on back-to-back assignments. More than half (57 percent) expect the sequential-assignment trend to stay about the same, and about a third (31 percent) expect the trend to increase.

Of organizations that said they have sequential assignments, 80 percent said they were typically long term, and the most frequent demographic profile was an older employee, Generation X worker or a Baby Boomer. This supports a general trend of companies sending more senior employees on this type of assignment, often with newer employees accompanying them for professional development, the report said.

Repatriation Lacking

Responding organizations ranked repatriation and career development highest among aspects of their relocation programs they most want to improve.

More than half (58 percent) of companies said they did not offer formal repatriation programs. Of those that offer these programs, only a third (33 percent) typically offer repatriation programs for long-term assignments. The most common reasons given for not offering these programs were lack of perceived value by the organization (60 percent) and cost considerations (35 percent).

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Understanding Global Assignment Costs

By LaQuita Morrison, GMS

As confidence in the U.S. economy surges, more companies are seeking to establish, strengthen, or expand their global presence. This often involves expatriating talent to fill key positions in other countries. For many organizations, providing global assignment opportunities is a strategic way to enhance employees’ knowledge and skills, which is vital for staying competitive in today’s interconnected world. The Financial Impact of Global Assignments

Whether your company is experienced or new to managing global assignments, the associated costs can be daunting. However, with proper management, these assignments can significantly contribute to achieving your company’s global business goals.

Consider this: Sending an employee and a family of three on a three-year global assignment could cost over $1 million. It’s no wonder that many global companies perceive traditional overseas assignments as cost-prohibitive. Some have even reduced, frozen, or eliminated their global assignment programs. Despite this, companies still need to place the best talent in the right locations, and sometimes that talent requires a global transfer. This makes managing relocation costs crucial.

Key Strategies for Managing Global Assignment Costs

If your organization is planning global assignments, there are ways to reduce costs without compromising operational efficiency or employee productivity. Balancing employee support with cost management is challenging but achievable. Here are some of the major expenses associated with a global assignment and how to manage them effectively:

Candidate Assessment : Evaluate whether the employee is the right fit for the assignment.
Pre-Decision Assessment: Ensure that the employee’s needs and family align with the business goals of the assignment.
Immigration: Obtain the necessary documentation for the assignment, which will vary based on the purpose of the transfer.
Tax Implications and Assistance: Understand the tax responsibilities in both the home and host countries and provide necessary assistance, including consultation and preparation.
Host Country Housing: Offer reasonable housing and utility costs according to regional guidelines based on family size and location.
Cost-of-Living Allowance (COLA): Compensate for the cost difference between home and host locations.
Transportation Allowance: Provide a car for the duration of the assignment.
Hardship Allowance: Offer additional compensation for assignments in challenging locations.
Cultural and Language Training: Help the employee and their family adapt to the host country’s culture and language.
Home Finding and Destination Services: Assist with locating housing and setting up necessary accounts in the host country.
Departure and Repatriation Services: Manage home sale, lease termination, and the return of the employee to the home country after the assignment.
Global Household Goods and Temporary Living: Handle the transportation or storage of household goods and provide temporary housing.

Enhance Your Global Mobility Program

To effectively manage these costs, it’s essential to partner with experienced relocation service providers. Our Global Mobility Services offer comprehensive solutions to support your organization’s global assignment needs while optimizing costs.

To learn more about managing global assignment costs, download our free guide.

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The family in the center of international assignments: a systematic review and future research agenda

State-of-the-Art
Published: 19 January 2018
Volume 68 , pages 77–102, ( 2018 )

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Julia Goede ORCID: orcid.org/0000-0003-4652-9340 1 &
Nicola Berg 1

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Over the past 30 years, the number of studies investigating the family interface of international assignments has risen substantially. While alternative forms of international assignments have been gaining importance, this article focuses specifically on the family interface of traditional organization assigned expatriation as the most prominent and most researched form of global work. Thus far, research has investigated a broad array of topics ranging from the family’s willingness to relocate over family adjustment to work-family balance and utilized a large variety of theoretical foundations. Given this variety in the literature, the field is fragmented and lacks a consistent theoretical argumentation. As a first step to provide some organization, we synthesize the family expatriation literature by developing a comprehensive multi-level framework of the determinants and dimensions of family outcomes. To achieve this objective, we critically assess publications between 1985 and 2017 in peer-viewed international journals, examine theoretical foundations and review the extant literature based on our framework. With this we uncover similarities and inconsistencies in the field, which allows us to deduce an agenda for future research and offer recommendations for practice.

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Elucidating the Positive Side of the Work-Family Interface on International Assignments: A Model of Expatriate Work and Family Performance

Some future directions for work-family research in a global world.

Individual Offshoring: An Emerging Trend for Global Careers

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Goede, J., Berg, N. The family in the center of international assignments: a systematic review and future research agenda. Manag Rev Q 68 , 77–102 (2018). https://doi.org/10.1007/s11301-017-0134-2

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Have you ever wondered how a product manufactured in one corner of the world can be in your hands within days? The answer lies in the seamless system of Global Logistics. But What is Global Logistics? It’s not just about transporting goods from one place to another – it’s the backbone of global trade, ensuring that everything from electronics to fresh produce reaches you on time, no matter the place it starts.

In this blog, let’s explore What is Global Logistics, breaking down what it involves and why it’s so crucial for modern businesses. Ready to uncover the magic behind how your favourite products travel the world? Let’s dive in!

Table of Contents

1) What is Global Logistics?

2) Types of Global Logistics

3) Importance of Global Logistics

4) Examples of Top Global Logistics Providers

5) Conclusion

What is Global Logistics?

Global Logistics entails coordinating the flow of goods, information, and resources (including energy and people) from their point of origin to their destination on a global basis. This process includes information technology, transportation, managing inventories, warehousing, material handling, and packaging across an international network.

It takes into account numerous factors, including trade laws, political boundaries, economic fluctuations, and geographical challenges. These considerations ensure the efficient and effective movement and storage of goods and services.

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Types of Global Logistics

Here are the primary types of Global Logistics:

1) Air Freight

a) The quickest mode of transportation for international shipping.

b) Ideal for urgent deliveries of electronics, medical equipment, or expensive goods.

c) Provides rapid delivery compared to other logistics options.

d) Expensive because of higher fuel costs and limited space on planes.

e) Typically used when speed is a priority over cost efficiency.

2) Ocean Freight

a) A most common method for transporting large quantities of goods internationally.

b) Involves shipping containers loaded onto cargo ships for ocean travel.

c) Cost-effective for heavy or bulk goods.

d) Suitable for long-distance transportation.

e) It has longer transit times compared to air freight.

3) Rail Transport

a) Widely used in landlocked countries or regions with strong rail infrastructure.

b) Reliable and cost-effective for moving goods across large land areas.

c) Ideal for heavy or bulk items.

d) Often slower than road or air freight.

e) Less flexible in terms of delivery locations compared to other modes.

4) Road Freight

a) Involves transporting goods by trucks, ideal for short to medium distances.

b) Commonly used for domestic shipments or part of a multi-modal system.

c) Offers flexibility in delivery times and locations.

d) Can face delays due to traffic or weather conditions.

e) Versatile and widely applicable across various industries.

5) Multi-modal

a) Combines two or more modes of transportation to ensure an efficient flow of products.

b) Products are transported via ocean freight and then loaded into a truck for final delivery.

c) Increases flexibility in shipping routes and delivery points.

d) Cost-effective by utilising the strengths of each mode of transport.

e) Ideal for optimising logistics for long-distance, complex shipments.

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Importance of Global Logistics

Here are some of the key reasons why Global Logistics is so important:

1) Enhances Supply Chain Efficiency:

Ensures goods are delivered on time, reducing delays and streamlining operations.

2) Cost Reduction:

Optimises transportation, reduces warehousing expenses and minimises fuel consumption.

3) Facilitates Global Trade:

Enables businesses to expand into new international markets and reach global customers.

4) Supports Economic Growth:

Efficient logistics contribute to economic development by improving trade and creating jobs.

5) Sustainability Focus:

Reduces environmental effects by optimising routes, adopting eco-friendly technologies, and utilising resources efficiently.

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Examples of Top Global Logistics Providers

Several companies are leading the way in Global Logistics, offering comprehensive services to businesses worldwide. Some of the top Global Logistics providers include:

a) DHL: Known for its extensive network and innovative solutions, DHL offers a wide range of logistics services, including express delivery, freight transportation, and supply chain management.

b) FedEx: A major player in the logistics industry, FedEx provides reliable and fast shipping services, along with advanced tracking and logistics solutions.

c) UPS: UPS is renowned for its efficient parcel delivery services and robust logistics infrastructure, catering to businesses of all sizes.

d) Maersk: As one of the biggest shipping companies in the world, Maersk specialises in ocean freight and integrated logistics solutions.

e) DB Schenker: This company offers a comprehensive range of logistics services, including land transport, air and ocean freight, and contract logistics.

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Conclusion

Understanding What is Global Logistics shows its critical significance in promoting international trade. It is an invisible force that keeps goods moving smoothly across borders, connecting businesses and consumers all over the world. Global Logistics, whether by air, sea, or land, is the driving force behind modern trade and keeps the world turning.

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Frequently Asked Questions

Companies can reduce costs in Global Logistics by:

a) Optimi s ing shipping routes

b) Consolidating shipments

c) Utili s ing multi-modal transportation

d) Negotiating with carriers

e) Leveraging technology for efficiency

f) Adopting eco-friendly practices to lower fuel consumption

Global Logistics involves managing the transportation of goods across international borders, which requires an understanding of customs and international laws and regulations. Domestic logistics , on the other hand, deals with transporting goods within a particular nation.

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COMMENTS

Global Assignment
Hence, this concludes the definition of Global Assignment along with its overview. This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team.The content on MBA Skool has been created for educational & academic purpose only.
Global Assignment Best Practice Guide
The management of global assignments can be one of the hardest areas for employers and HR experts to master, not least when trying to control costs whilst adapting to the shifting demands of the global business environment. ... Definition; Global Assignment: The temporary relocation of an employee to another country to perform work duties for a ...
Managing International Assignments
Often, international assignment leads to outsourcing for global expertise. Payroll, tax, employment law, contractual obligations, among others, warrant an investment in sound professional advice ...
Global Assignments Enhance Employee Development
For the first time in years, building international management experience has appeared as one of the top two reasons for sending employees on international assignments, Brookfield Global ...
Global assignment
"global assignment" published on by null. Is a job assignment within a multinational corporation that involves expatriation; that is the relocation of an employee to another country. Specialists in international human resource management identify different types of global assignment.
Managing the Entire Global Assignment Cycle: Establishing Best Practic
receive in-depth international management training in master of business administration (MBA) programs, in in-house executive education programs, or from their work. experience (Porter & McKibbin, 1988). Less than a quarter of the CEOs in America have. gone on an international assignment (Carpenter, Sanders, & Gregersen, 2001; Gregersen. et al ...
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A global manager is a specialist who balances the local, regional, and global demands of transnational companies. Learn about the three types of global managers and how they work together to ...
A Successful International Assignment Depends on These Factors
The prospect of an international assignment can be equal parts thrilling and alarming: Will it make or break your career? What will it do to your life at home and the people you love?
5 Types of Global Assignments
Global assignments are when employees relocate internationally and work in a destination country for a specified time. Learn about five types of global assignments, such as short-term, long-term, business travel, remote work and commuter, and how to choose the best option for your company.
Life Cycle of an International Assignment: Supporting Employees Before
Learn how to support employees before, during and after an international assignment to prevent failure and increase success. Explore the common challenges for assignees, such as family concerns, host country issues and cultural differences, and the strategies to overcome them.
Managing International Assignments: Employer Guidance
While compliance, efficiencies and cost control should be underpinned by a solid global mobility infrastructure of policies, systems and procedures, the current shift is away from a uniform approach to assignment management, instead moving towards more agile management of each assignment, shaped by the specific assignment objectives, budget and ...
PDF International Assignment Handbook
It's helpful to think of the international assignment as a lifecycle—moving from pre-assignment to repatriation. Here's a quick overview of each phase of the assignment lifecycle: Pre-assignment—Your direct manager and your HR manager will share the personal and career opportunities that the international assignment will provide. The Global
PDF The life cycle of a global assigment
Having officially launched the global assignment, it is crucial that a strong line of communication and support is upheld between the employer and the employee. Working in a foreign country can be daunting as every aspect of the assignee's life will be impacted by new responsibilities and unfamiliar routines. On
Managing International Assignments & Compensation
It is, however, often very expensive and doesn't solve all assignment-related issues (e.g., currency issues, pension, taxation). It is typically used in specific industry sectors (e.g., energy and engineering) and for a few assignees (top level managers and global nomads.) Step 2: Assessing assignment patterNs and business objectives
Full article: The organizational value of international assignments
However, whilst there is considerable literature investigating the value of IAs to the individual assignee (Takeuchi et al., Citation 2009), and an emphasis on the importance of global performance management and staffing practices (Engle et al., Citation 2015), extant literature does not give a clear explanation of the value of IAs at the ...
International Assignment Management 2022
Discover how it is impacting international assignment management in 2022. The pandemic sparked change across the business world. Discover how it is impacting international assignment management in 2022. ... Initial research conducted amongst global businesses in 2021, as Covid-19 was controlled showed that a mobile workforce was still integral ...
International Assignments: Who's Going Where and Why?
Linking Talent Management and Global Mobility When asked whether they agreed with the statement "The impact of an international assignment on an assignee's career is positive," 82 percent ...
Understanding Global Assignment Costs
If your organization is planning global assignments, there are ways to reduce costs without compromising operational efficiency or employee productivity. Balancing employee support with cost management is challenging but achievable. Here are some of the major expenses associated with a global assignment and how to manage them effectively:
The family in the center of international assignments: a systematic
Over the past 30 years, the number of studies investigating the family interface of international assignments has risen substantially. While alternative forms of international assignments have been gaining importance, this article focuses specifically on the family interface of traditional organization assigned expatriation as the most prominent and most researched form of global work. Thus ...
2318799
This is a collection of useful articles related to Global Assignments. SAP Knowledge Base Article - Public. 2318799 ... GA, International Assignment, Performance Management, Managing Global Assignments and Concurrent Employment in SAP SuccessFactors, FAQ, GA, EGA, AGA, BGA, OGA, event , KBA , LOD-SF-EC-GA , Global Assignment , LOD-SF-EC-CON ...
2537481
With the Global Assignment Management function, you can send an employee on a global assignment to another company. The administrator or manager can add a global assignment for an employee. Once the global assignment is active, there is one home and one host employment for this employee (which are also called 'expatriate' for the time of their ...
2557683
Concurrent Employment: An employee who has more than one job at the company (and this results in 1x UserID per employment).; Global Assignment: The employee has been sent on a Global Assignment to another part of the company somewhere in the world for a limited period of time (sort or even long term).For example, an employee works in Ireland but is sent on an assignment to France for 1 year to ...
What is Global Logistics? Definition, Types, and Examples
The Knowledge Academy takes global learning to new heights, offering over 30,000 online courses across 490+ locations in 220 countries. This expansive reach ensures accessibility and convenience for learners worldwide. Alongside our diverse Online Course Catalogue, encompassing 19 major categories, we go the extra mile by providing a plethora of free educational Online Resources like News ...