When onboarding an employee or recruit through an international corporate relocation, there are so many things to consider. We choose the top five in this article so that you will be well on your way. Check them out:
Research the details about what the employee needs to get a visa and work authorization in the new country. You may find it complicated to navigate the documentation, so you may want to engage a consultant to manage the process.
A Relocation Management Company can manage many immigration providers within its supplier network. If the family is travelling with the employee, the consultant can also assist with their visas and immigration details.
Knowing the pros and cons is important. Don’t forget that all relocations with intentions of permanency start as temporary work permits.
Tax is a complex subject. Leaving one country and going to a new country means bridging two tax regimes. There may be tax-related consequences from exiting a jurisdiction improperly. If an employee or recruit holds any assets or investments, an exit tax interview is crucial. The assignee also needs to understand the tax regime they are entering with all assets or possible investments in tow.
Filing taxes in a new jurisdiction is hard. Imagine doing it in the country left behind and the one you relocated to as well?
Some relocation expenses may be taxable in either the origin country or the receiving country. You don’t want to surprise the employee with large tax bills because they did not know how to plan their relocation. Pre-relocation tax guidance and help in tax filing in both jurisdictions can help you.
3. Destination Services
The next service that you should cover is destination services, as they are also a productivity play. You are investing this much in your employee; you would like them to be productive as soon as possible.
Relocating to a new country can be scary. There is a new city to learn about, a home to find, and the need to address all those administrative tasks. In Canada, local registration includes obtaining a Social Insurance Number, health insurance and a driver’s license. In other parts of the world, it may be necessary to register with either the police or the government.
It is possible to figure all these things out alone, of course, but how much time does it take? How much anxiety does it cause, and how many mistakes could be avoided? Destination Services takes care of all these concerns in as little as 2-4 days. And the service is also self-serving for the employer. After immigration and tax services, Destination Services are usually the next service that an employer purchases.
Global mobility is expensive. Whether you provide defined benefits or capped Relocation Allowances, or a blend of the two, you will want to be sure of your numbers. A corporate relocation services provider can get the budget for you along with other important factors. It is a good idea to get a budget of the total relocation costs and determine how much you will support as a company.
Ask your RMC to help you arrive at reasonable budgets for different employees’ levels to remain competitive and reasonable.
5. Household goods move
The first recommendation is not to let your employee select the cheapest mover. Use a Relocation Management Company to get two or more competitive quotations, and then manage the moving company.
You do not want your employee or recruit skimping on these costs. Poor judgement for a financial reason can negatively affect the employer and the employee. An incorrect step can lose you an enormous amount of productivity and give your employee and HR many headaches.
If you need to work with a capped allowance, ask your Relocation Management company to ensure a worthy relocation budget. Air shipments can also be valuable benefits: an employee’s sea shipment will take 6-10 weeks to get to their destination. But air shipments are very expensive. Ask us for an alternative approach.
But you’ll see that many transferees will conclude that their furniture’s value is not worth the shipment cost. So, allowing them to buy furniture once at their destination is quite reasonable.
In most countries, the cost of a household goods shipment is non-taxable. But, buying furniture is. You’ll need to guide your employee on this.
Do you think your company is ready to relocate an employee globally? International corporate relocation is not easy, but All Points is here to help. Contact us at allpointsrelocation.com.