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Five things to know about international employee relocation

Are you contemplating expanding your business globally, with new offices in different countries? The key to a prosperous global expansion lies in how adeptly you manage international employee relocation. This critical process entails either hiring individuals already residing in the target countries or transferring current employees to the new office locations. These relocations offer numerous advantages, as experienced team members can act as guides to help your new international offices thrive.

Why Do Companies Opt for International Employee Relocation?

Businesses opt for international relocations for several compelling reasons, each offering substantial benefits. A primary motivation is to place knowledgeable and experienced team members in leadership roles at the new international offices. This not only facilitates a smooth launch but also saves valuable time that would otherwise be invested in local hiring.

International employee relocation also provides a way to test new markets without the commitment of local recruitment. Alternatively, existing employees can be temporarily relocated to the new market to train local employees on your company’s products and services before returning home at the assignment’s end.

Furthermore, relocating employees internationally increases the likelihood of success in the new location. While team members may already be well-versed in business operations, adapting to the cultural expectations and norms of the new country is vital. This firsthand experience enables them to tailor your company’s offerings to resonate effectively with the new market.

How Does Global Relocation Differ from Domestic Relocation?

While international and domestic relocations share similarities, key differences demand careful consideration when moving employees abroad:

  • Visa and Work Permit: International relocations necessitate securing work permits and visas for the target country, which can be a complex process. In contrast, domestic relocations within the same country do not involve immigration concerns.
  • Cost: International relocations are typically costlier due to higher travel expenses and customs costs associated with moving possessions abroad.
  • Language and Culture: Language barriers may limit the pool of potential employees in certain markets, underscoring the importance of finding candidates fluent in the local language.
  • Employee Wages and Benefits: Different countries have varying rules regarding wages and benefits, necessitating compliance with local regulations
  • Taxes: International relocations can lead to significant differences in tax obligations, requiring precise tax withholding for employees.

What Does a Company Need for Successful International Employee Relocation?

Moving employees to a new country demands thorough planning and preparation. Here are the essentials your company needs to ensure a successful international employee relocation:

A Global Relocation Policy: Create a comprehensive relocation policy outlining the services your company will provide to relocating employees. Clearly, detailed aspects employees are expected to handle are housing arrangements and paperwork.

Employee Agreement and Contract: Before relocating employees internationally, have them sign an agreement and contract. Precisely outline the assignment’s duration, role expectations, salary and benefits adjustments, and termination procedures.

A few bonus tips you should keep in mind:

  • Let them settle in: Offer ample time off for employees to get settled and recover from jet lag before diving into work.
  • Help them socialize: Plan a warm welcome event to introduce relocated employees to their new co-workers.
  • Stay in touch: Regularly check in with relocated employees to offer support and guidance during their adjustment period.
  • Ask for Feedback: Seek feedback from relocated employees to continuously improve future relocation programs.

Managing International Employee Relocation with Multiplier!

While international relocations offer substantial benefits, the associated expenses may be challenging for some companies to bear. Moreover, changes in visa regulations can complicate the process. To streamline international employee relocation, consider leveraging a global employer of record service like Multiplier. This approach eliminates high relocation costs and administrative burdens, allowing your company to establish operations in the new country swiftly.

At Multiplier, we understand the intricacies of international employee relocation and global compliance. Our global employment platform empowers you to hire in 150+ countries, providing in-country experts available 24/7 to handle onboarding and compliance. With us, you can focus on growing your business globally hassle-free.

Request a demo today to learn how we simplify managing international employees and help your business thrive on a global scale.

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Employ the best person for job, regardless of location

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