The rise of hypermobility

07/04/21

International Employment Tax plays a key role in the future of work

As we find ourselves in the third wave of the COVID-19 pandemic, many organisations are starting to look ahead. Not only at the anticipated economic recovery, but also at how the pandemic has changed the way we work, perhaps indefinitely. Now that they are experiencing the possibilities of remote working first-hand, they are reviewing their business models. In some sectors this could lead to a form of ‘hypermobility’: almost one hundred percent of the global workforce could be mobile in some form.

Hypermobility is: not bound by borders or physical barriers and truly international. The corona virus pandemic, supported by modern technology, has provided the space for this new format of mobility to flourish. It showed us the way to cross-border working, from the comfort or our own home.

Geography has become subordinate to knowledge and skills, now that we see that entire virtual teams can achieve great successes despite not being able to physically meet.

Expansive and generous packages for expats

Of course, this development did not just appear out of nowhere. Over the past decade we have already seen a major shift in the way that companies are dispersing and acquiring strategic expertise or skill for a position abroad.

Where ten years ago offering expansive and generous packages for traditional expat assignments were still the norm, since then a broader variety of working abroad has arisen. Globalisation has led to an ever increasing number of companies operating across national borders. Flights got cheaper and it became easier to deploy employees to the place where and when they were needed.

Organisations starting using the possibility to work abroad for a stint (whether short, long, regular or occasional) in order to attract, develop, and retain talent.

An increase in flexible labour conditions

Millennials entering the jobmarket then also led to an increase in flexible working terms and conditions tailored to the individual. This new generation is eager, ambitious and willing to spend some time working abroad to enhance their career opportunities or simply have an adventure. 

The emphasis within HR policy moved towards facilitating personal development needs with a lighter assignment package to match, as opposed to the hefty compensation for additional costs and remuneration for what was long perceived as the ‘inconvenience’ of having to go abroad for work.

COVID-19 has brought forth new opportunities for HR

The pandemic has forced companies to fully embrace working from home for many jobs previously considered office-based, and has consequently showed them that it opens up possibilities, too. Companies are realising that recruiting staff that were seemingly thought to be ‘out of reach’ because of geography, is now easier than ever. 

We see that organisations are exploring to create permanent remote cross-border work and have supporting virtual tasks carried out, or even put together entire virtual teams and have them collaborate for shorter or longer periods by using technology. The ‘virtual assignment’ and remote working possibilities are some of the latest ‘trends’ we see developing.

The global mobility function will join in strategic thinking

Organisations that wish to prepare for the future of work, will have to decide on what their standpoint is now that more employees wish to commute or work remotely across borders and whether they would like to re-think their strategy and policy based on the latest developments.

Will they offer international remote working as one of their employee benefits? Or are they only going to focus on compliance risk and implement a framework that restricts working remotely on an international level? Will a new type of assignment arise from the ashes of the pandemic, that is specific to virtual or remote working across borders?  

When answering these questions, HR is not only expected to give their opinion, but should rather share a vision on how a company can make optimal use of existing options while taking into consideration the risks, cost effectiveness, the employee experience and safety. HR can play a key role in guiding organizations towards the future of work in that respect.

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Satisfied employees, productive organisation

Employees and their skills are the mainstay of every organisation. A well-organised employment conditions policy, an optimal Employee Experience and a professional HR function ensure that people with the right capabilities want to work for the organisation, that employees are satisfied and that they contribute optimally towards the organisation’s goals. To this end, the organisation offers appropriate employment conditions increasingly in line with the wishes of the individual.

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Daniël Sternfeld

Daniël Sternfeld

Partner, PwC Netherlands

Tel: +31 (0)61 089 28 89

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