What is Relocation Assistance?

A good place to begin a discussion on defining relocation assistance is to briefly discuss why companies relocate employees. Most organizations relocate employees for one or more of the reasons listed below:

    • To attract new talent
    • To fill key positions in different geographic locations
    • To support business expansion
    • To enhance organizational efficiency

If an organization needs to relocate an employee permanently or temporarily, offering relocation assistance can help ease the transition. Relocation assistance programs are designed to reduce the emotional and financial strain that often comes with moving to a new city or country by providing services and guidance throughout the process.

These services and guidance are either coordinated in-house by the HR/Mobility department or through a relocation management company like WHR Global.

Relocation benefits may also be offered to help an employee transition to a new role that requires specialized skills or to enable them to work in high-demand markets.

 

Relocation Assistance

How does a company decide what types of benefits an employee will receive?

Most companies have developed a formal relocation policy (or policies) that outline the specific guidelines and benefits available to an employee in conjunction with a job-related move or assignment. This policy typically details the types of relocation packages available, the scope of services offered, and the eligibility criteria for receiving assistance. Employers may offer different types of relocation packages based on the employee’s level, job role, or distance of the move.

Common relocation packages include the three options below, including: comprehensive full-service relocation plans, lump-sum payment and direct reimbursement.

1) Full-Service Relocation Package:

    • This comprehensive option may cover all aspects of the move, from hiring professional movers to providing temporary housing and helping with home-finding services. For high-level employees, this can also include additional support like spousal job search assistance and school placement for children.

2) Lump-Sum Payment:

    • A lump sum payment provides the employee with a set amount of money to cover their relocation expenses. It offers flexibility but places the responsibility on the employee to manage their moving costs within the given budget. The employee is responsible for any costs over and above the lump sum provided.

3) Direct Reimbursement:

    • This type of relocation support is not as common as those listed above. With a direct reimbursement package, a company will reimburse the employee for their moving-related expenses. Spending limits and the types of incurred costs covered for reimbursement are defined in the relocation policy. These costs are paid by the employee up front and reimbursed by the employer.
      • For U.S. Domestic assignments, benefits included in these packages might include travel allowances, home sale assistance, and the cost of temporary lodging until the employee finds a permanent residence.
      • For an international assignment, benefits may also include immigration assistance, destination services, and cultural/language training assistance.

Cost Perspective and Tax Implications:

  • When receiving relocation assistance, being aware of the potential costs involved is essential. In many cases, employees may be required to sign a repayment agreement. This means that if the employee leaves the company within a certain period after the relocation (usually a year or two), they may be required to pay back a portion or all of the relocation assistance provided to the employer.
  • From a tax perspective, relocation benefits are generally considered taxable income, and employees may need to account for the associated tax burden. Employers may offer a Gross-Up on relocation packages to cover the additional tax cost. A Gross-Up is an amount added to the relocation assistance to help employees offset the taxes owed on the benefit. The specifics of how the Gross-Up works will vary depending on the company’s policy, but it typically ensures that the employee doesn’t have to pay out-of-pocket for the additional tax liability.
Cost Perspective and Tax Implications with relocation assistance

Interactive Employee Relocation Reports

U.S. Domestic Relocation Cost Estimator

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Interactive Repayment Agreement

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Domestic Relocation Policy Designer

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Relocation Benchmark Comparison

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RFP – Relocation Request for Proposal Generator

Relocation Request for Proposal Generator

Understanding the Cost of a Relocation Services RFP 

Issuing a Request for Proposal, (RFP) for relocation services is a significant investment for any organization. It is crucial to understand that issuing an RFP is not just about evaluating Relocation Management Companies (RMCs) but also about the time, effort, and resources to manage the process effectively.

Cost considerations can vary depending on several factors, but direct and indirect costs are generally involved.

These costs stem from the time, resources, and effort required to manage the RFP process. Below are some key considerations in issuing an RFP for relocation services, followed by examples of associated costs and how this investment can lead to long-term benefits for your company.

6 Key Considerations include:

Understanding the Cost of a Relocation Services RFP

1) Internal Resources and Time Commitment

    • Personnel Involvement: The RFP process often requires input from HR/mobility, finance, legal, and procurement departments. Each department may need to review proposals, assess the RMC’s capabilities, and coordinate meetings. Depending on your organization’s structure, this can be a resource-intensive process.
    • Time Investment: The process typically takes several months, depending on the complexity of your relocation program, the staff’s schedules, and the number of proposals received.

2) RMC Selection Process

    • Evaluation: Companies must establish criteria to assess RMCs’ capability of managing their programs, including service offerings, reputation, and past performance. Some organizations do this through a formal Request for Information process.

3) RFP Preparation and Administration

    • Document Drafting and Design: Preparing the RFP requires a comprehensive understanding of your company’s relocation program needs and may include the help of specialized consultants or internal subject-matter experts.
    • Reviewing and Responding to RMC Questions: Clarification questions are part of the RFP process. Upon receipt of the questions from potential RMCs, the company will consult with relevant internal teams and/or subject-matter experts to craft the responses.

4) RMC Proposal Evaluation

    • Time spent reviewing proposals: Reviewing multiple RMC proposals requires time and careful consideration. This is especially true if numerous individuals are involved in the review process. Organizations may allocate time from various departments, including HR/Mobility Managers, Procurement Officers, and finance experts
    • RMC Presentation Costs: In most cases, shortlisted RMCs are invited to present their proposals in person or via virtual meetings. Cost considerations include time spent by internal resources planning and attending the presentation. This includes follow-up discussions.
    • Contract Negotiation: Once the RMC is selected, a detailed contract negotiation occurs, which may involve legal counsel reviewing terms and conditions.

5) Estimated Process Cost

While the cost of the RFP process can vary, companies should be prepared for an investment of anywhere between $30,000 – $40,000 (or more), depending on the scope and complexity of the relocation program being outsourced, the level of internal resource involvement, consultants/advisors involved, and any 3rd party procurement platforms used. For smaller companies with fewer relocations, the cost may be lower. Larger organizations with a high volume of moves may see higher costs due to more complex programs, detailed evaluations, and vendor negotiations.

Cost Example

Below is an example of how RFP costs might break down for a typical relocation RFP for a mid-sized global organization with 100 relocations per year. The costs can be higher for more extensive programs, depending on loaded salary costs, the number of people involved, program complexity, and scale (U.S. Domestic, International, Global).

Resource
Procurement Manager or Equivalent
Global Mobility Manager or Equivalent
Global Mobility Director or Equivalent
Compensation Manager or Equivalent
CHRO or Equivalent
Legal Review
Estimated Hourly Salary
$62
$80
$64
$71
$176
$87
20% Added Benefits
$12
$16
$13
$14
$35
$17
Hourly Weighted Cost
$74
$96
$77
$85
$211
$104
Est. Hours Required for RFP
120
80
80
60
40
40
Weight
100%
100%
100%
100%
100%
40%
Total Cost
$8,928
$7,660
$6,144
$5,100
$8,433
$1,666
Total: $37,951

6) Other Cost Considerations:

    • Opportunity Costs: While more challenging to quantify, the company should also consider the opportunity cost of dedicating resources to the RFP process. During the time spent managing the RFP, these resources may not be available to focus on other vital projects, such as supporting ongoing employee relocation efforts or other core business operations.
    • Consulting or External Expertise Fees: In some cases, companies may hire external consultants or experts to assist with drafting the RFP, evaluating proposals, or providing industry insights. This can add additional costs to the process, ranging from a few thousand dollars to tens of thousands, depending on the level of support required.
    • Software & Tools: If the company chooses to utilize software or platforms to help streamline the RFP process (such as automated RFP platforms, vendor management systems, or third-party procurement tools), there may be additional subscription fees or costs associated with these tools. Depending on the platform, these costs can range from hundreds to several thousand dollars.
Issuing an RFP for relocation services can be a substantial financial and time investment for a company

Issuing an RFP for relocation services can be a substantial financial and time investment for a company.

However, the benefits often far outweigh the costs when the process is conducted strategically by investing the time to evaluate multiple providers and choosing a partner that offers value, high-quality services, long-term flexibility, and better alignment with your company’s needs.

These savings, combined with improved employee satisfaction and retention, can yield a significant return on investment, particularly as your relocation program scales over time. 

WHR Global's Free RFP Generator

Our free tool takes less than 1 minute to complete!

Answer a few simple questions, and you’ll be ready to run your RFP!

WHR Global,a leader in global mobility, is an independent, full-service relocation management company with offices in the US, Switzerland, and Singapore. WHR strives to offer cost-effective relocation benefits without compromising empathy, ethics, or service

Information Systems Security: A Good Defense is a Good Offense

Security – whether online or offline – is extremely important.

According to Identity Theft Resource Center, the number of data breach notices issued in 2024, was 1,350,835,988 (and those are just the ones that were officially reported!).

Every day, we entrust our information to others, hoping that they will keep it safe. But what steps are they really taking? And, are they following through? Just one mistake on the company’s part can leave thousands of individuals primed for an attack.

It’s an epidemic.

That’s why it’s imperative that companies focus on physical, infrastructure, and operational security. As they say, a good defense is a good offense! There are a variety of ways companies can strategically approach security. But to be truly effective, more than one measure should be taken and used in conjunction with the others.

Cyber Security is a top priority for WHR Global and we have always taken proactive measures to secure confidential data for clients and their transferring employees.

Information Handling

    • The way your organization chooses to manage your electronic information is the foundation of a strong security plan. Data encryption translates your data into concealed code, which greatly reduces the vulnerability of attacks from hackers and data thieves. Utilizing a Transport Layer Security (TLS) certificate on your website encrypts any data communicated over the internet.

Secure Infrastructure

    • To keep pace in the ever-changing security landscape, it’s important to have measures in place to protect infrastructure. Firewalls, guest networks, and endpoint protection are additional critical components. Coupled with encrypted backups and off-site storage of information assets, you’re looking even better.

Security Best Practices

    • Organization-level security is important, but a culture of security is also crucial. Best practices surrounding password creation should be relayed to your teams. With the number of online tools available, it is highly likely that your employees are creating their own passwords. Instruct them not to use easily found information (i.e., birthdays, anniversaries, pet names, etc.). You should also host an annual security training to remind your staff of your protocols.

Audit

    • Another way to ensure data is continually protected within your organization is to complete frequent internal and third-party audits. At WHR, we undergo an annual
      SOC 1® (SSAE18 Type II) audit. A third-party organization extensively evaluates our systems design, operating effectiveness, and internal controls. We elect to participate in this audit to uphold our client commitments to data integrity.

Following Security Regulations

    • Beyond what a company can choose to do, there are many things that companies must do. There are a plethora of security regulations depending on the industry and the type of work completed. The most recent regulation buzzword is “GDPR” – the data protection rules set forth by the EU. Other regulations across many industries include the Federal Information Security Management Act (FISMA), the Health Insurance Portability and Accountability Act (HIPAA), the Family Educational Rights and Privacy Act (FERPA), the Payment Card Industry Data Security Standard (PCI-DSS), the Gramm Leach Bliley Act (GLBA), and so many others.
WHR Global Security Icon

Data Security – A Top Priority at WHR Global

The fact is, data security must be a top business priority and become part of the corporate culture.

It’s something that we take very seriously at WHR Global. We ensure that our employees are up-to-date on information security best practices, not only for our company, but for their personal safety as well.

We understand that we possess sensitive and confidential data relating to our clients and their transferring employees. We have always taken proactive measures to secure information against accidental or unauthorized access, disclosure, modification, or destruction and to assure everyone involved of the availability, confidentiality, and integrity of our data.

A Security Tip from Jeff Beyer,
WHR’s IT Director

Everyone loves online shopping!

It’s important to remember that you’re exposing yourself to threats each and every time you enter your credit card online.

Many sites offer two factor authentication, and I strongly recommend you enable that when possible.

It definitely doesn’t eliminate attacks, but it can help protect you when there is one.

Our Custom Technology Solutions and on-site IT Team are available to cater to your mobility program’s specific needs:

9 Items to Include in Your Next Relocation Management RFP

If you have ever been through the Request for Proposal, (RFP) process for employee relocation services, you know how stressful and time-consuming it can be.

An integral part of every RFP is the detailed timeline.

This timeline explains when the RFP was sent, the due date, when questions are due from bidders, when you are to respond to questions, and dates for the next steps (presentations, start date, and more). However, the timelines often underestimate how long some items take to complete.

Sometimes, Relocation Management Companies (RMCs) will have dozens of questions requiring responses, which can add several business days to the process. This often results in extensions and delays that you did not anticipate when going out to bid.

In this post, we have outlined 9 of the most common questions that RMCs ask after receiving an RFP.

RFP proposal timeline includes deadlines and 9 Items typically asked by RMCs

The 9 questions below are actual questions
from RMCs in actual RFPs from the past 24 months.

The goal should be to answer these questions up front in your RFP before ever sending it to an RMC.

This will save you a significant amount of time during the Q&A process and enable each bidder to provide you with a response that more accurately addresses your needs.

1) Can you please provide copies of your relocation policies?

RMCs require access to your relocation policies or a detailed summary to tailor their pricing and responses accurately to your needs

This is the most commonly asked question.

RMCs want to look at your policies to tailor their responses and pricing to your program. It helps to provide all of your relocation policies or, at a minimum, a detailed summary of your original bid package so that prospective bidders know exactly what you are looking for.

Some RMCs suggest policy changes that suit your needs and budget without adversely impacting the employee’s transition.

2) Do you have any preferred or company-designated third-party suppliers or vendors?  If so, can you please provide the company names?

Including existing relationships and specific requirements in the RFP allows RMCs to show how they’ll work with your current providers and disclose any related management fees.

Typically, RMCs will work with client-designated service providers.

However, they expect your provider(s) to meet their quality standards to maintain a consistent, excellent experience for your relocating employees.

Describing any existing relationships and specific requirements in the RFP gives the RMC an opportunity to demonstrate how they will interact with your existing preferred providers and disclose any associated management fees that may occur. 

3) What is your annual volume?

Include detailed annual volume information in your RFP and a clear transition profile ensures a more accurate bid.
When answering this question in your RFP, include:
  • Number of homes sold per year
  • Number of renters you relocate
  • Any short-term domestic assignments
  • Lump Sums
  • Internship programs
  • Other relevant information
A precise transition profile results in a more accurate bid response.

4) What type of home sale benefits does your company offer?

The most common home sale benefit types include a Guaranteed Buyout (GBO) or Buyer Value Option (BVO) program and Direct Reimbursement (DR) program

Do you offer Buyer Value Options (BVOs), Guaranteed Buyouts (GBOs), Direct Reimbursement (DR), or marketing assistance only?

    • If so, how many of each do you typically offer in a given year?

This information tells the RMC what areas and processes to focus on in their response and provides the most accurate pricing structure.

An experienced RMC will also help you to evaluate each method and determine which is most beneficial for your company.

5) What is your average home sale price?

Knowing the average home sale price helps each RMC determine a fee structure for your home sale program

This information is essential if you offer home sale benefits to your employees.

  • Knowing the average home sale price helps each RMC determine a fee structure for your home sale program.

Additionally, providing the average home purchase price gives the RMC a good idea of the type of home you are interested in finding for your employee.

6) What are the top challenges that you have with your current program?

Sharing any challenges you're facing and areas for improvement in your RFP allows the RMC to propose solutions that can improve the process for you and your employees.

RMCs are well-acquainted with the myriad of challenges that occur when relocating employees.

  • Do you need help with exceptions or failed relocations/assignments?

Letting the RMC know some of the problems you are having and the areas you would like to see improved in your RFP allows them to suggest solutions that will enhance the process for you and your employees.

7) What are your historical locations?

Including historical information in your RFP helps the RMC identify volume discounts, particularly if you frequently relocate to the same destinations.

Listing out historical information allows the RMC to scout volume discounts, especially if you frequently move to the same location.

  • What are your top departure location(s)?
  • What are your top destination location(s)?
  • Do you have locations that have been historically challenging?
    (e.g., remote/small towns.)

Providing these details enables the RMC to share their knowledge and familiarity with the locations you list and provide any creative solutions to meet the needs of your relocating employees.

8) Will the RMC be taking over any existing files?

It's crucial to inform your prospective RMC whether they will need to take over any ongoing relocations or assignments. If so, specify the number and outline the expectations.

It’s important to let your prospective RMC know whether or not they will be required to take over any existing relocations or assignments. If so, indicate how many and what the expectations will be.

  • Primary considerations for the RMC include where the employee is in the process

    • Domestic – is there a home sale involved?
    • International –  how much time is left on the assignment?

Providing some detail on this upfront in the RFP will enable the RMC to provide you with their criteria, which determines how certain types of files will be transitioned, as well as recommendations for those files that should stay with your current provider until completion.

9) If you have international assignments, does the global scope of work include any compensation services?

By providing detailed information on International assignments, including compensation services, the RMC can share its capabilities and processes and offer accurate pricing for these services.

Compensation services would include:

  • Creating the compensation calculations and balance sheets
  • Updating the balance sheets
  • Tracking the compensation data
  • Working with your payrolls to ensure proper payment and reporting
  • Providing the year-end compensation summary report to your third-party tax provider to prepare the assignee tax return

By providing as much detail as possible about this, the RMC will provide you with its capabilities, processes, and appropriate pricing for this service.

Including all of these points in your RFP does not guarantee
that there will not be any questions.

However, it will make the responses more uniform, reduce the number of questions from the responding RMCs,
save you some time, and ensure that you are comparing similar responses.

WHR Global's Free RFP Generator

Our free tool takes less than 1 minute to complete!

Answer a few simple questions, and you’ll be ready to run your RFP!

WHR Global,a leader in global mobility, is an independent, full-service relocation management company with offices in the US, Switzerland, and Singapore. WHR strives to offer cost-effective relocation benefits without compromising empathy, ethics, or service

Buyer Value Option (BVO) vs Guaranteed Buyout (GBO) Home Sale Programs. How Do they Compare?

In the realm of corporate relocation, home sale assistance programs play a crucial role in easing the transition for employees and companies alike.

Among the relocation home sale programs, the most popular options are the Buyer Value Option (BVO) and the Guaranteed Buyout Option (GBO) programs.

Each option offering distinct advantages tailored to different needs, our blog will review:

BVO vs GBO Home Sale Benefit home sale with contract

Buyer Value Option
(BVO)

In a Buyer Value Option program (BVO), the employee is responsible for listing their home for sale, with marketing assistance from the Relocation Management Company (RMC). The employee must secure an outside buyer willing to purchase the home at a fair market value. A buyer value option program provides all the tax benefits to the employer and employee, but it depends on the employee securing an outside buyer. The employee is funded their equity, if the contract is deemed valid, based on the outside offer amount. The RMC closes the sale with the buyer at a future date. In a BVO home sale scenario, home appraisals are never ordered.

Buyer value options are a good way for an employee to oversee the entire process and ensure the best fit for their home. The risk of the home sale falling through falls onto the employee in this home sale option.

Guaranteed Buyout Option
(GBO)

What is a Guaranteed Buyout (GBO) program and how does it differ from a Buyer Value Option (BVO)?

Under a GBO program, the RMC orders two home appraisals and then averages the two to determine a guaranteed offer, with a fixed acceptance period. If the employee cannot sell their home on their own, the employer takes the home into inventory. The employer must maintain it until the company can resell it. This carries potential risks and additional costs for an employer.

A BVO home sale, on the other hand, minimizes this risk since the employer only purchases the home after the employee has secured an outside buyer. BVO and GBO home sale programs provide tax benefits to the employer and employee.

BVO Home Sale versus GBO Home Sale

When comparing the two, the choice between BVO and GBO depends largely on the company’s risk tolerance, market conditions, and the level of support they wish to provide to their employees.

BVO programs are cost-effective for companies but can place additional burdens on employees, making them more suitable for strong housing markets.

Conversely, GBO programs, while more expensive, offer greater assurance to employees, making them a preferred choice in uncertain markets or when a company prioritizes employee satisfaction and seamless relocations.

Relocation Home Sale Comparison reviews Buyer Value Option versus Guarantee Buyout Option

Here’s a side-by-side comparison of Buyer Value Option (BVO) and Guaranteed Buyout Option (GBO) home sale programs

Program Structure
Risk to Employee
Risk to Company
Home Sale Timeline
Employee Involvement
Financial Considerations
Market Impact
Flexibility
Appeal to Employees
Usage
Buyer Value Option (BVO)
Employee secures an outside buyer before the company purchases the home
Low risk if the home is sold quickly; however, the employee bears the risk if the market is slow
Lower financial risk since the company only purchases the home after an offer is secured
Typically, longer as the employee must find a buyer before the company purchase
High, as the employee is responsible for marketing and negotiating the sale of their home
Costs are generally lower for the company, but the process can be more stressful for the employee
The success of the BVO depends heavily on the current housing market
More flexible for companies that prefer to minimize upfront financial commitment
May be less attractive to employees due to potential delays and uncertainties
Preferred in stable or strong housing markets where homes are likely to sell quickly
Guaranteed Buyout Option (GBO)
Company provides a guaranteed buyout offer to the employee before listing
No risk to the employee as the company guarantees a buyout, regardless of market conditions
Higher financial risk for the company as they commit to buying the home regardless of market conditions
Generally faster, as the company buys the home directly if it doesn't sell within a set period
Lower, as the company takes over the home sale process after providing the buyout offer
Higher costs for the company due to the guaranteed purchase but provides more certainty and support for the employee
The GBO is less impacted by market conditions as the company assumes the risk
Less flexible due to the company’s financial commitment but provides more stability for employees
Generally, more appealing to employees due to the certainty and reduced personal risk
Often used in slower or volatile markets where securing a buyer may be difficult

Our countless years of BVO and GBO Home Sales experience can help you better navigate your journey.

This can include the range of tax implications, relocation variables, benefit payouts/amounts, and marketing work.

Let the experts at WHR Global help you with your BVO or GBO home sale relocation
and other global mobility program needs

WHR Global,a leader in global mobility, is an independent, full-service relocation management company with offices in the US, Switzerland, and Singapore. WHR strives to offer cost-effective relocation benefits without compromising empathy, ethics, or service

U.S. Domestic Relocation Cost Estimator

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Interactive Repayment Agreement

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Domestic Relocation Policy Designer

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Relocation Benchmark Comparison

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RFP – Relocation Request for Proposal Generator

Relocation Request for Proposal Generator

The Best Types of Expatriate Assignments for Your Mobility Program

Finding the right person for an open position can be challenging, especially in today’s job market. Offering international assignments can be a powerful tool for retaining (and attracting) top talent.

Employees who are given the opportunity to work abroad feel more valued and motivated, leading to higher levels of engagement and loyalty.  Additionally, international assignments can be seen as a prestigious career move, which can attract high-caliber candidates and enhance the company’s reputation as an employer of choice.

The complexities of an international move have intensified in recent years.  Beyond offering a pay raise, covering relocation expenses, or finding them an incredible new home, it is crucial to address the broader needs of expatriates and their families.

In today’s dynamic work environment, assignments can quickly go off course if not managed with a focus on flexibility, cultural integration, and the overall well-being of the employee. 

A lot of preparation and planning goes into sending your employees abroad, which is why it is important to understand the advantages and disadvantages of the most common types of expat assignments: long-term, short-term, and extended business travel.

Pros and Cons of the 3 Types of Expatriate Assignments including Long Term, Short Term and Extended Business Traveler

Some companies may choose to use just one type of assignment or include multiple different options, depending on the employee and the position available. Either way, finding the best expat program for both your company and your employee will ensure both are successful long term.

Long-Term Expat Assignment (LTA)

A long-term assignment (LTA) refers to the relocation of an employee from their home country to work in a foreign country for an extended period, typically ranging from one to five years or more.  Unlike short-term assignments (STA’s), which might last only a few months, LTAs involve a deeper commitment and often require significant personal and professional adjustments for the expat employee.

During an LTA, the employee is expected to fully integrate into the local work environment, often taking on key roles that contribute to the company’s strategic goals in the host country.  This could include tasks like establishing new operations, leading a local team, implementing corporate strategies, or facilitating knowledge transfer between the home and host offices.

One of the most important things to note is that this type of assignment is not a permanent transfer; the employee intends to return to his or her home country after the long-term assignment is complete.

Long Term Assignment container shipment of household goods

Pros_Green-CheckmarkPros of a Long-Term Expat Assignment

LTAs provide a unique opportunity for employees to develop leadership skills in a global context.

By exposing them to different markets, cultures, and business practices, companies can groom future leaders who are adaptable, culturally aware, and capable of managing diverse teams. These global experiences are invaluable for shaping executives who can drive the company’s international strategy.

Expat employees often serve as a vital link between the headquarters and the host country’s office, ensuring that the company’s global strategies are effectively implemented at the local level. In the past, it was important to instill the culture of the parent company into the foreign entity and help drive revenue growth in the overseas location.

Today this still exists, but the opposite is also true. Overseas workers are being deployed to the parent country or other countries to gain experience, transfer knowledge, and run specific project-based work.

 

Con-Red-Checkmark Cons of a Long-Term Expat Assignment

One of the biggest challenges of long-term expatriate assignments is the potential strain on personal and family life. Relocating to a foreign country can disrupt children’s education, create challenges for a spouse’s career, and lead to feelings of isolation due to cultural differences and distance from extended family and friends.

Not all LTAs succeed. If an expat employee fails to adapt to the new environment or if personal issues arise, the assignment may need to be cut short, leading to significant costs. Costs are extremely high for expat assignments and many companies do not properly vet the individual being offered the assignment.

There are benefits available including candidate assessments and pre-decision services that are designed to assess the person’s ability to thrive in a “foreign” location and adapt culturally.  Additionally, many companies forego cultural and language training which is essential in providing a foundation for a successful transition.  Simple things like how to conduct a business meeting or learning the norms for handing out a business card are just some of the subtle social norms that will ensure success. Unfortunately, many companies choose not to or do not know the importance of this investment.

There are countless compliance requirements as well, and without the assistance of a relocation company, it can be hard to navigate. Many companies have chosen another route: short-term expat assignments.

 

 

Short-Term Expat Assignment (STA)

A short-term assignment (STA) typically refers to a temporary work arrangement where an employee is relocated to a foreign country for a limited period, usually ranging from a few months to a year.  Unlike long-term assignments (LTAs), which often involve significant life adjustments such as family relocation and long-term planning, STAs are more focused on specific projects, skill development, or filling immediate business needs.  STA’s can offer great flexibility and less commitment, but less fluidity and insurance.

Many companies will not allow the family to accompany the employee on these STAs but will provide other options such as more frequent trips home, furnished accommodations, per diems, travel allowances, etc.

Relocation management companies like WHR Global, can help manage short-term expatriates and provide the structure and benefits available to this group of assignees.

Short Term expat assignment with small shipment of items

Pros_Green-Checkmark Pros of a Short-Term Expat Assignment

The problems of dissatisfaction and homesickness became apparent with long-term moves, so short-term overseas engagements were developed as an alternative to pulling up roots and moving families across the globe for extended periods. Short-term assignments involve fewer personal and professional disruptions for employees. Family members often remain in the home country, minimizing the impact on schooling, careers, and social networks.

From your company’s perspective, a short duration generally costs less upfront, and it gives you more flexibility when developing a mobile, global workforce. Additionally, the consequences of individuals becoming “taxable” in the foreign location can be managed effectively, thus significantly decreasing the cost of the expat assignment.

Lastly, the pool of willing candidates inevitably increases as it is a short-term expat assignment, which reduces the potential impact on families and financial ramifications.

Con-Red-Checkmark Cons of a Short-Term Expat Assignment

The cons of short-term expatriate assignments revolve around demands to rotate a variety of personnel, which requires more planning and administrative time for everyone involved.

There is a trade-off between a series of short-term assignments versus a single long-term assignment.  What works for your company may not work well for others.

These assignments allow companies to leverage global talent efficiently while providing employees with international exposure and professional growth opportunities without the extended commitment of a permanent move.

Extended Business Traveler (EBT)

An Extended Business Traveler (EBT) program is a structured framework designed to manage employees who frequently travel internationally for business over extended periods, typically ranging from a few weeks to a few months.

Unlike traditional expatriate assignments, EBT programs cater to employees who remain officially based in their home country but spend significant time working in foreign locations. These programs are increasingly popular in global companies as they allow for flexibility and quick deployment of talent across borders without the need for full relocation.

Typically, these employees are not on a formal assignment; however, there are still potential tax and immigration considerations that need to be made when sending someone on these extended business trips.

Extended business traveler

Pro_Green-Checkmark Pros of an Extended Business Traveler

EBT programs allow companies to deploy talent quickly and efficiently across multiple locations without committing to long-term relocations. This flexibility is ideal for addressing short-term business needs, project launches, or client demands. For everyone involved, business traveling simply causes less disruption.

Your workforce has much more control over how they perform duties, and you do not have to permanently allocate resources to a foreign location.

Con-Red-Checkmark Cons of an Extended Business Traveler

Work visa requirements differ widely from country to country and can be impacted by the home and host locations involved.

In some instances, a worker may enter the country on a work permit waiver, but in other countries it may be illegal to perform a single work duty without having the proper work visas in place.

Conclusion

How companies manage expat assignments has changed in this post pandemic world. Ever changing immigration policies, unpredictable travel restrictions, and increased costs make managing these assignments more challenging than ever before.

Regardless of the assignment type that is considered, each type of expatriate assignment has its strengths and pitfalls. Every company needs to determine what is optimal for their workforce and the business needs requiring these assignments. Let the experts at WHR Global help guide your employees and company through these types of decisions and implementations.

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