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.
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.
Pros 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.
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.
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.
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.
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.
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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