The crucial role of HR in managing international assignments
The process of managing international assignments can be complicated. HR departments play a crucial role in making sure they run smoothly. Our managing partner, Stefan Remhof, lays out the specific tasks and challenges in this process, including additional complexities like sensitivity to our rapidly changing world and new roles within a company.
The challenge of international assignments for everyone involved
Sending employees abroad is challenging for everyone involved. From the employees and their families to the employer and company, international assignments are a huge change. More than a geographical shift, there are logistical, operational and operational nuances to consider. Financially, committing to international assignments signifies more than a mere allocation of resources; it symbolises a strategic investment in a company’s human capital.
Navigating the complexities of international assignments requires a modern approach. Gain additional perspectives on this topic through the collaborative insights found in LinkedIn’s article on Managing International Assignments Effectively, which explores the challenges and strategies in managing these assignments effectively.
International assignments as part of career development
International assignments are designed to give employees’ careers a boost. Traditionally, they focused on knowledge transfer across borders. But this can now occur in a digital environment. Although international assignments remain an attractive asset, how people approach them has changed. Employees want to further their personal and cultural enrichment, as well as enjoyment. They have a desire to learn from foreign cultures, enhance their educational level and professional development. Their quality of life is more important to them than workplace performance. This modern shift places greater emphasis on employer attractiveness and employee retention.
The Growing Importance of HR’s Role in International Assignments
For a successful company attachment, structured collaboration from all stakeholders is vital. This is where the HR department becomes increasingly important. It’s their job to ensure the entire expat management process occurs without issues. HR helps provide solutions to support employees and their families, allowing them to successfully complete their objectives during the assignment. For a comprehensive understanding of how HR managers can ensure a smooth transition for employees, ARC’s detailed guide offers a Guide for HR Managers and Employees.
7 essential HR responsibilities in managing international assignments
- Preparing Employees: HR plays a crucial role in properly preparing employees for their expat assignment. This can include simple things like information about the destination country, its culture, lifestyle and work ethic. And it can also include more detailed intercultural training.
- Visa and Work Permits: This involves the procurement of all necessary visas and work permits, not just for employees but also their families. Here, HR plays a vital role in minimising stress for the employee and ensuring a smooth transition to their international assignment.
- Legal Issues and Compliance: International assignments can involve complex legal issues. But by closely monitoring legal standards and staying up to date, the HR team works to make sure international assignments align with both global regulations and the company’s internal compliance policies.
- Housing and Relocation Support: Relocation is complicated and cause unnecessary stress for employees when trying to adjust to a new environment. Taking an active role in supporting employees in the search for suitable housing makes a huge difference to the entire international assignment experience.
- Health Insurance Support: Ensuring employees and their families receive comprehensive and correct health insurance coverage throughout the entirety of their international assignment relieves the burden of trying to navigate new healthcare systems.
- Payroll and Taxes: Handling payroll processes and taxation in accordance with local regulation to ensure accuracy and compliance at all times.
- Post-Assignment Support: Extending support beyond the international assignment by assisting in the repatriation and reintegration process supports employees and reduces challenges upon return.
Naturally, HR departments may not have enough resources to manage all these responsibilities. External service providers can take over some or all of these tasks, with support and coordination from HR. Companies can choose how to delegate these responsibilities but they are nonetheless highly important and should not be overlooked.
In order to support and offer international corporate global mobility, companies must develop the structures to offer security to employees and help contribute to their personal learning and professional development.
Developing a Global Mindset
Companies that operate on a global scale face the challenge of trying to maximise opportunities but minimise risks with global mobility. Strategically planning for staffing needs, especially for highly skilled workers, gives them a competitive edge.
H2: The Evolving Role of International HR Management
International HR management is constantly changing and adapting. Managing a culturally diverse global workforce across countries and cultures is a significant challenge requiring innovative solutions. Developing a global mindset is essential here, as well as ensuring an understanding of leadership among executives.
Sensitivity to a Changing World is essential for HR strategies
As the world undergoes shifts from globalisation to nationalisation once again, public sentiment is changing. Companies are now re-evaluating their global activities. Transparency is vital as companies relocate more of their operations back to their home countries.
Adapting to Changing Needs in International Assignments
The need for and importance of international assignments is changing for global companies. HR professionals and expat management specialists must integrate into different value systems to create a common work environment that encourages effective communication and common goal achievement.
More than ever, global companies need a deep understanding of local business practices and must understand the needs of local customers and stakeholders. Developing a global mindset among leaders and employees is essential. International HR management must take on a new role with different strategies and solutions in order to guide organisations through the uncharted waters of globalisation.
This changing and modern role around the global workforce should also be reflected in university and college curricula.
Visit our content page for more information on expat management, international assignments and HR solutions for the global workforce.
Author: Prof. Dr. Stefan Remhof is a Professor of International Management at IU International University and Managing Partner of the People Mobility Alliance. He has many years of professional and management experience in the fields of education management, politics, the consumer goods industry, and financial services.