Planning overseas assignments involves a complex process to ensure both the employee and the company are well-prepared for a successful international relocation and work period. This planning typically covers legal, financial, logistical, and cultural aspects.
Key Planning Stages
Here are the essential steps and considerations when planning an overseas assignment:
1. Pre-Assignment Assessment and Selection
- Identify Needs: Determine the specific business need for the assignment and the required skills/experience.
- Candidate Selection: Choose a suitable employee based on competence, adaptability, and family readiness.
- Feasibility Check: Assess the viability of the assignment (e.g., security, living conditions, work permits).
2. Policy and Compensation
- Assignment Policy: Define the terms, duration, role, and repatriation expectations.
- Compensation Package: Establish a competitive and equitable package, often using a Balance Sheet Approach to ensure the employee’s purchasing power remains the same as in their home country. This includes:
- Base Salary
- Allowances (e.g., cost-of-living adjustment (COLA), housing, education, transportation)
- Incentives (e.g., mobility premium, hardship allowance)
- Tax Equalization/Protection: Address the complex tax implications in both the home and host countries to ensure the employee isn’t unfairly burdened by dual taxation.
3. Legal and Immigration
- Visas and Work Permits: Secure the necessary documentation for the employee and their accompanying family members to legally live and work in the host country.
- Employment Contract: Draft a contract compliant with both home and host country labor laws.
4. Logistics and Support
- Relocation Services: Arrange for moving household goods, temporary accommodation, and final housing search.
- Healthcare and Insurance: Ensure comprehensive medical coverage, including emergency evacuation, and other necessary insurance (e.g., property, liability).
- Travel Arrangements: Organize flights and initial settlement support.
- Security Briefing: Provide information and training on safety and security specific to the host location.
5. Training and Cultural Adaptation
- Cross-Cultural Training: Offer training for the employee and family on the host country’s culture, customs, business etiquette, and language. This is crucial for successful integration and job performance.
- Language Training: Provide instruction in the local language, if necessary, for daily life and work.
Post-Assignment Considerations
- Performance Management: Set clear goals and establish a performance review process aligned with the assignment’s objectives.
- Ongoing Support: Maintain communication and provide continuous support for challenges related to work or personal life (e.g., Employee Assistance Program access).
- Repatriation Planning: Begin planning for the employee’s return to the home country or a subsequent assignment well in advance to ensure a smooth transition and retention of the acquired global experience.