![]() For example, locally employed peers may begrudge their new colleague working in the same location as them while still on an overseas pay structure that compensates for higher tax and higher living costs in that country. If the priority is retention of valuable talent, you may wish to actively ensure that the pay will be sufficient for the upkeep of the living standard that the employee was accustomed to in the home location.Ĭonversely, if an employee is hoping to save costs and enhance their pay – by moving to a location with a lower cost of living or lower tax burden – this might guarantee their satisfaction but present a problem with equity. However, you are likely to find that doing nothing is not always best for the business. If an employee requests to work from another country, your first instinct may be to make no changes to their compensation – if the move is initiated by the employee and is being facilitated by the company solely for the employee’s benefit, it may seem obvious that it is for the employee themselves to bear the consequences for their net pay. Pay for these international flexible workers is complex and difficult to get right, but essential to the success of these arrangements. The question of remuneration, however, cannot be neglected. The best known and most discussed are compliance issues – with income tax, social security, permanent establishment risk and immigration rules all notoriously difficult to navigate. This said, there are some substantial challenges that come with international remote working. In some cases, it could also help companies to reduce their climate impact, if replacing regular cross-border commuting by car or air. But regardless of the parameters – in the context of the ‘Great Resignation’ and battle to attract and retain global talent, offering flexibility and prioritising the employee experience can be an effective way for employers to gain a competitive advantage. ![]() the employee having the right to work, and the organisation having an entity, in the country in question – as well as business needs. Across the board, organisations report that approval for these kinds of moves hinges on the legal implications – i.e. At the other extreme, one in five companies would allow these working arrangements to continue indefinitely. Some companies have adopted a ‘work from anywhere policy’ that allows employees to work in another country for up to 30 days – our survey found that one in four companies impose this time limit. As we found in our recently published Global Mobility Now Survey, approaches to this kind of remote working vary wildly. One version of remote working that’s been gaining traction and making headlines is international flexible working. ![]() Organisations across the world have adapted, and are still adapting, to widespread working from home, hybrid working and flexible working patterns – a dramatic shift made necessary by the COVID-19 pandemic, but one that has proven successful. The great shift to remote working during the past two years is now firmly rooted and seemingly here to stay.
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