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:

1. Candidate Assessment: Evaluate whether the employee is the right fit for the assignment.
2. Pre-Decision Assessment: Ensure that the employee’s needs and family align with the business goals of the assignment.
3. Immigration: Obtain the necessary documentation for the assignment, which will vary based on the purpose of the transfer.
4. Tax Implications and Assistance: Understand the tax responsibilities in both the home and host countries and provide necessary assistance, including consultation and preparation.
5. Host Country Housing: Offer reasonable housing and utility costs according to regional guidelines based on family size and location.
6. Allowances:
   • 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.
7. Cultural and Language Training: Help the employee and their family adapt to the host country’s culture and language.
8. Home Finding and Destination Services: Assist with locating housing and setting up necessary accounts in the host country.
9. Departure and Repatriation Services: Manage home sale, lease termination, and the return of the employee to the home country after the assignment.
10. 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.