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The Xe Guide To Working Abroad

March 27, 2019 — 5 min read

How to Leverage International Assignments and/or a Laptop Lifestyle to Build Your Career

Digital nomad-ism and long-term international assignments are growing trends for ambitious professionals and creatives in 2019. According to a KPMG research study, 83% of international companies offer short-term work assignments abroad, and 97% offer long-term overseas assignments.

For businesses that are making their first forays into global markets, having an internal employee with an explorer's mindset, the courage of a pioneer and the instincts of an entrepreneur is very lucrative.  

Let's take a look at the opportunities and strengths of work-abroad assignments relative to digital nomad freelancers and full-time employees who work remotely at or close to home.

International Work Assignments

International assignments are a great way to:

Nurture the careers of future business executives

Establish a presence in an emerging market

Launch a new product

Reward a high-performing employee that has requested an international assignment

The KPMG study found that about 40 percent of international assignments fail, however many of those failures are typical because companies don't track overseas expenses accurately, and don't educate their employees on potential tax, cross-cultural and immigration issues when they are on assignment. Some assignees are cut off EAP programs and health benefits support when they move overseas, which can be profoundly isolating and counterproductive.

Paying employees for expenditures, and either a portion or all of their salary via an international money transfer is an excellent way to maintain accurate records of expenses.

Photo by Trinity Treft / Unsplash A PWC study found that 71% of millennials expect to experience an international assignment during their career. There is, however disparity in where millennials would want to work, as most would want an assignment in countries like the US, the UK, Australia or Canada. Only if the assignment would have a significant positive impact on their career trajectory would they consent to an assignment in an emerging country like India.  

Frequent overseas travel gets costly, and some employees that commute across borders on a frequent basis regularly get flagged for customs/security reasons and be denied access or visas if they decide to settle in the country on a long-term basis.  For these reasons, longer assignments, though less frequent is preferable to the opposite.

According to an SHRM study, a three-year assignment abroad for a senior professional can easily cost as much as US $3 million including benefits and living expenses.  

Many of the 60% of employees that are sent on a work assignment abroad are so successful there, and they create such a bond with the country they are assigned to that they become "accidental expats." If and when employees do return to their home country, however, their employers should have repatriation programs to get over the "culture shock" of re-acclimating to their native country.

Scott Redmond, the XE Managing Director for North America, moved his family from Australia, and he recently wrote about his experiences as an expat in the United States.

Digital Nomads Living the Laptop Lifestyle

According to a Citrix research report , by 2020, 50% of the workforce will be comprised of remote workers and telecommuters. This shift is in part a result of the ubiquitous nature of the cloud and mobile devices, and in part because of the environmental impact on ever-increasing highway congestion, urban gridlock and commute times.

Photo by Austin Distel / Unsplash Most Generation Z and millennial employees are very digitally savvy. Many companies are transitioning to having employees work remotely on a regular basis, which saves these companies significant real estate and infrastructure costs.

Whether a freelance writer, application developer or UX designer is working from their home office in the same country as their customer or a coffee house overseas is often a moot point. As long as project milestones are being met and projects are being completed on time, many businesses hiring digital expertise are happy to let their employees or contractors work where ever it suits them.

Digital nomads that change countries on the regular, and digital "slow-mads" that linger in specific countries for long periods of time are becoming more prevalent. Depending on whether they are independent contractors, freelancers or untethered full-time employees, they may be fortunate enough to have healthcare benefits . Others maintain a "home base" in their native country, but travel and work abroad as a location-independent worker.

Is your business considering starting a new venture or launching a new product overseas? Are you considering taking an international assignment, be it a short-term gig as a full-time employee, or a long term work assignment abroad as a contract consultant?

Check out our blog on a regular basis for strategies for expats, accidental expats, and even stealth expats that sometimes work among us.

For fast, easy payments abroad, such as mass payments for payroll or one-time project payments, register for a free account. Whether you are paying rental deposits on a London flat, receiving project payments or sending money to loved ones from overseas, XE Money Transfer enables you to live your best international life. And empowers your business to compete and win in international markets.

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What Is an Expatriate?

Understanding expatriates.

• Retiring Abroad

Foreign Earned Income Exclusion

Foreign tax credit, expatriation tax.

• Pros and Cons of an Expatriate

The Bottom Line

• Taxpayer Types

Expatriate (Expat): Definition, With Pros/Cons of Living Abroad

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Lea Uradu, J.D. is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer.

Investopedia / Julie Bang

An expatriate, or expat, is an individual living and/or working in a country other than their country of citizenship, often temporarily and for work reasons. An expatriate can also be an individual who has relinquished citizenship in their home country to become a citizen of another.

Key Takeaways

• An expatriate is somebody who has left their country of origin in order to reside in another country.
• Expats may leave home for work reasons and seek more lucrative employment in a different country.
• Expatriates may live for a while overseas or completely renounce their citizenship of one country in favor of another.
• Retiring abroad has become an increasingly popular option.
• The IRS may impose an expatriation tax on individuals who renounce their citizenship, usually based on the value of a taxpayer's property or income in the United States.

An expatriate is a migrant worker who is a professional or skilled worker in their profession. The worker takes a position outside of their home country, either independently or as a work assignment scheduled by the employer, which can be a company, university, government, or non-governmental organization.

If your employer sends you from your job in its Silicon Valley office to work for an extended period in its Toronto office, you would be considered an expatriate or "expat" after you arrive in Toronto.

Expats usually earn more than they would at home, and more than local employees. In addition to salary, businesses sometimes give their expatriate employees benefits such as relocation assistance and housing allowance. The expat will need to open a local bank account that will allow them to function in their new home.

Living as an expatriate can be exciting and present an excellent opportunity for career advancement and global business exposure, but it can also be an emotionally difficult transition that involves separation from friends and family while adjusting to an unfamiliar culture and work environment. Hence, the reason behind the higher compensation offered to these migrant workers.

Special Considerations: Retiring Abroad

Much expatriation occurs during retirement. While most Americans spend their retirement in the U.S., a growing number are opting to retire overseas . People are motivated to relocate abroad at an older age for several reasons , including lower cost of living, better climate, access to beaches, or some combination of those and other reasons. However, it can also be tricky to navigate taxes, long-stay visas, and the language and cultural differences experienced when settling down in other countries.

Popular retirement destinations include countries in Central and South America, the Mediterranean, and parts of Europe.

A common choice presented to a retiree expat is between permanent residency and dual citizenship. Note that neither dual citizenship nor residency gets you out of filing a U.S. tax return every year. It is both surprising and burdensome, but Americans still have to pay income taxes wherever they live, and they owe it no matter where their income was earned.

You may also have to file an income tax return in your country of residence, although most deduct the amount American residents pay to the U.S. via treaties that minimize double taxation.

If you're a retiree or near-retiree who's on the fence, you face a tough decision that will require some soul searching and research—and maybe a trip abroad (or several) to test the waters before you make any decisions.

For Americans working abroad as expatriates, complying with United States income tax regulations is an added challenge and financial burden because the U.S. taxes its citizens on income earned abroad. To avoid double taxation , the U.S. tax code contains provisions that help to reduce tax liability . Taxes paid in a foreign country can be used as a tax credit in the U.S., which when applied against the expat’s tax bill, reduces it.

The Foreign Earned Income Exclusion (FEIE) , for example, allows expats to exclude from their tax returns a certain amount of their foreign income, which is indexed to inflation. For 2023, this amount is $120,000. For 2024, it is $126,500. An expat that earns, say $180,000 in 2023 from their job in a foreign country that is tax-free will only need to pay U.S. federal income tax on $180,000 - $120,00 = $60,000.

The FEIE does not apply to rental income or investment income. Therefore, any income made from interest or capital gains from investments will have to be reported to the IRS. The Foreign Tax Credit (FTC) is a provision that ensures expats are not double-taxed on their capital gains.

For example, assume an expat falls in the 35% income tax bracket in the U.S. This means their long-term capital gain on any investment is taxed at 15%.

Since the FTC provides a dollar-for-dollar credit against taxes paid to a foreign country if the expat paid 10% tax to the country where they work, they'd only have to pay 5% tax to the U.S. Likewise, if they pay no tax to the foreign country, they’ll owe the full 15% tax to the U.S. government.

If the income tax paid to a foreign government far exceeds the amount of the credit (because the foreign tax rate far exceeded the U.S. rate), the expat will forfeit that amount. The credit, however, can be carried into the future.

An individual who has renounced their citizenship in their home country and moves to another is also referred to as an expatriate for tax purposes and is subject to an exit tax known as expatriation tax .

According to the Internal Revenue Service (IRS), the expatriation tax provisions apply to U.S. citizens who have renounced their citizenship and long-term residents who have ended their U.S. residency for tax purposes, if one of the principal purposes of the action is the avoidance of U.S. taxes .

This emigration tax applies to individuals who:

• Have a net worth of at least $2 million on the date of expatriation or termination of residency
• Have an average annual net income tax liability that is more than $190,000 if the expatriation date was in 2023 ($201,000 if the expatriation date is in 2024) over the five years ending before the date of expatriation or termination of residency
• Do not (or cannot) certify five years of U.S. tax compliance for the five years preceding the date of their expatriation or termination of residency

Advantages and Disadvantages of Becoming an Expatriate

Living and working in another country for an extended period of time can have its benefits. These can range from new experiences and adventure to more practical considerations like a lower cost of living or being closer to extended family abroad. Depending on where you settle, you may also get government perks like free healthcare and education and more favorable taxation.

There are also some potential drawbacks. Regarding taxation, unless you fully relinquish your American citizenship, you will still need to file tax returns each year and may need to pay taxes to Uncle Sam, even on income earned in your new country.

You'll also be a long way from home, potentially. This can make seeing friends and family more difficult, and time zone differences can also interfere with finding a good time to link up by phone or video chat. Learning a new language and customs can also be difficult for some, and certain items or products that you like may not be available where you live. And remember that not all countries enjoy the same level of political and economic stability that the U.S. does.

New experiences and maybe a better climate

Potentially lower cost of living

Potential access to affordable healthcare

Potential for double taxation

Long way away from friends and family

Language, cultural, political, and economic barriers

Potential challenges securing the proper visa

What Does It Mean to Become an Expatriate?

An expatriate or "expat" is somebody who leaves their country of origin and settles abroad for an extended period of time, often permanently.

What Is Expat Taxation?

Americans living overseas still have to file U.S. tax returns unless they relinquish their American citizenship. Several international tax treaties exist to help minimize double taxation.

What Is an Expat Community?

When people relocate to a foreign country, they often find comfort in seeking out other foreigners, especially from their home country. Expat communities are enclaves of people from a similar national origin, often with their own school and shopping options. In many countries, English-speaking enclaves are called "Anglo" communities.

Expats typically have to navigate a complex web of tax rules and regulations, which can be challenging to understand and comply with. Though retiring abroad to a lower cost of living, there are retirement considerations to comply with. In addition, expat U.S. Federal taxes are complicated, though they may rely on tax credits and income exclusions to receive favorable U.S. tax treatment.

Bonache, Jaime, and et al. " The Interaction of Expatriate Pay Differential and Expatriate Inputs on Host Country Nationals' Pay Unfairness ." The International Journal of Human Resource Management , vol. 20, no. 10, October 2009, pp. 2137.

The Wall Street Journal. " Americans are Saving Money by Retiring Overseas ," Slide 2.

International Living. " The World’s Best Places to Retire in 2023 ."

World Economic Forum. " The World's Best Retirement Destinations Might Surprise You ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 3.

Internal Revenue Service. " Tax Treaties ."

Internal Revenue Service. " IRS Provides Tax Inflation Adjustments for Tax Year 2024 ."

Internal Revenue Service. " Foreign Earned Income Exclusion ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 15-16.

Internal Revenue Service. " Foreign Tax Credit ."

Internal Revenue Service. " Topic No. 409, Capital Gains and Losses ."

Internal Revenue Service. " Foreign Taxes that Qualify for the Foreign Tax Credit ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 24.

Internal Revenue Service. " Publication 519, U.S. Tax Guide for Aliens ," Pages 23-24.

Internal Revenue Service. " Expatriation Tax ."

Internal Revenue Service. " 26 CFR 601.602: Tax Forms and Instructions; Rev. Proc. 2023-34 ," Page 21.

Internal Revenue Service. " 26 CFR 601.602: Tax Forms and Instructions: Rev. Proc. 2022-38 ," Page 19.

Internal Revenue Service. " Publication 519, U.S. Tax Guide for Aliens ," Page 24.

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Working abroad?

• Global Guide
• Working Abroad
• Your Assignment Abroad: Its Career Impact

International Assignments and Soft Skills

Becoming a Valuable Employee

Their global perspective on their field of work and their cultural awareness make employees with overseas work experience valuable for international companies. Employers with multicultural teams, or brands and products with a multinational focus also prefer employees with this kind of experience.

In today’s globalized world, it is essential to work with people – be they colleagues, clients, or business partners – from all kinds of national, cultural, and ethnic backgrounds. International work experience will therefore make you a real asset for every employer and pave your way towards further international assignments.

Soft Skills

Among other things, an international assignment will give you the opportunity to develop new interpersonal skills. After all, you will be dealing with a different culture, work ethic, business etiquette, and lifestyles. This exposure to a new way of life is something you can benefit from in various ways during and after your assignment.

While it may take you some time to adjust to your new company environment, you’ll almost certainly gain and improve some essential soft skills such as patience, perseverance, flexibility, and communication skills. These qualities are just as important for your employer as any of your hard skills, professional knowledge, and academic qualifications.

The latter are, of course, essential as well. After all, the head of an international petroleum company will not hire you if you are a Music and Theatre major and lack any significant qualifications. If that is the case, it doesn’t matter how well you are suited for international assignments. Still, soft skills are as important as having a diploma and work experience.

Acquiring Intercultural Skills

Hans-Peter (51) works as the head of the human resources department of a big software company in Germany. When he reviews applications for international assignments, he has to keep in mind that the applicant needs to fit in with an international team of co-workers. “We do pay great attention to the international work experience of our applicants. After all, we are working with people from all kinds of cultural backgrounds here. You can really tell the difference. Those who have worked abroad blend in much easier than those who have never left Germany before. They are more readily aware of potential obstacles on an international assignment, and they find more common ground with non-German citizens who may have moved here for work-related reasons.”

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5 Tips for Managing Successful Overseas Assignments

• Andy Molinsky
• Melissa Hahn

Stay in constant touch and have a plan for their return.

Sending talented employees overseas can be a promising way to leverage the benefits of a global economy. But expatriate assignments can be extremely expensive: up to three times the cost of a person’s typical annual salary, according to some statistics. And despite the investment, many organizations lack the know-how for optimizing the potential benefits, leaving them disappointed with the results. The unfortunate reality is that even companies providing well-crafted relocation packages (including the all-important cultural training) may not have the talent management mechanisms in place to truly leverage the valuable skills expatriate employees gain during their assignments.

• Andy Molinsky is a professor of Organizational Behavior and International Management at Brandeis University and the author of Global Dexterity , Reach , and Forging Bonds in a Global Workforce . Connect with him on LinkedIn and download his free e-booklet of 7 myths about working effectively across cultures .
• Melissa Hahn teaches intercultural communication at American University’s School of International Service. Her new book, Forging Bonds in a Global Workforce (McGraw Hill), helps global professionals build effective relationships across cultures.

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Pros and Cons of International Expat Assignment 

Are you trying to work out if a short-term international assignment is for you you may be considering applying for an opportunity or you may have an offer of an overseas role on the table, either way there’s a lot to think about. making the decision to work overseas, even in the short-term, has the potential to have long-term repercussions for your life and career., what is a short-term international assignment [sia].

A short-term international assignment is the deployment of an employee overseas to complete a task usually within a period of three months to a year.

Short-term international assignments became popular early in the millennium as a means of addressing recruitment gaps, talent shortages and focusing on strategic global projects. Their popularity grew during the financial crises as a less expensive form of global mobility.

In the post-Covid world, SIAs are a means of offering increased flexibility to employees who want to gain some international experience without committing to the traditional three to five years overseas.

Like every decision in life, there are positives and potentially some challenges when it comes to moving abroad for work.

What are the pros of a short-term  international assignment?

Opportunity to work overseas, increased experience of global marketplace, leadership potential, improved network.

Working overseas will enable you to broaden your network. While completing a short-term expat assignment you are likely to work with:

·         Global mobility team

·         Human Resources/People Department

·         Senior Management

·         Colleagues at all levels in your new office

·         A new range of stakeholders

·         Customers in a different market

Opportunity to travel 

Opportunity to learn a new language.

Depending on where your short-term assignment is based it may provide an opportunity to learn a new language. You do not necessarily need to be fluent in a language for it to have positive benefits for your career.

Attempting to speak another language allows you to engage with colleagues in your short-term home in a more meaningful and immediate way. It has also been shown to have cognitive benefits too. People who speak more than one language have improved:

·         Critical thinking skills

·         Problem solving skills   

·         Memory

Spouse can retain their career

Children can stay in their current school, what are the cons of a short-term international assignment.

Of course, any kind of change has potential negative side effects to be aware of too. What these are will depend on your circumstances, but some potential downsides may include:

1. Potential for interrupted career progression

Moving overseas may mean you are ‘out of sight, out of mind’. Depending on your company, not being around every day and difference in time zones may mean the good work you are doing is not as visible to centralised management. This isn’t always a difficulty, but it might be something to be aware of depending on your business. 

2. Pressure to deliver 

As a short-term assignee, you are likely to be under pressure to hit the ground running and achieve a lot in a short period of time. You are unlikely to have the luxury of spending the first few months settling in. There may be pressure on you to make changes quickly before you have had a chance to build relationships or get colleagues at a local level on board.

3. Culture shock

The risk of culture shock is even higher with short-term assignees because you may not have the same time to adjust as your long-term counterparts. Comprehensive pre-departure training is important, so you have as much information as possible about life in your temporary home. 

4. Expat loneliness

If you decide leaving family in your home country is the best option then there is a chance you may suffer from expat loneliness while you are away. Building new and maintaining existing relationships while overseas is really important. If you feel lonely , check whether your international health insurance has an expat assistance programme that provides you with access to a trained professional for assistance. 

5. Maintaining relationships at home

Your relationships with friends and family at home are important. Leaving may prove difficult but technology makes it easier than ever to stay in touch. 

6. Relationship issues

If you decide to take the assignment, your partner may have to remain at home for work or family commitments. This can impact your relationship . While you struggle with a new role in a new country, they are left carrying the emotional load at home and often completing all the tasks you used to help with. 

7. Repatriation

Do not underestimate the challenge of returning home once your assignment is complete . Particularly if you settled well and enjoyed the work. Changes may have happened in your home office that mean:

• You are not returning to the same role you left

• Goals and objectives may have changed since

• You may have to readjust your ways of working once again 

Agreeing to an international assignment is a big decision for a range of professional and personal reasons. We hope this will help you to work out what yours are so you can make the right decision for your circumstances. 

If you do decide to accept an assignment, don’t forget you will need international health insurance to access private healthcare should you need it while you are away.

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International Assignment Agreement

Jump to section, what is an international assignment agreement.

An international assignment agreement is a contract between an employer and employee that formally assigns the latter to a position in a foreign country. Several pieces of important information are contained within this contract, such as where the assignment is, how travel and lodging costs will be paid, how much the compensation is, and how long the assignment will last. It also lays out specific terms and conditions surrounding how to shorten or lengthen the assignment and what will take place if unforeseen circumstances occur, such as random acts of nature.

Common Sections in International Assignment Agreements

Below is a list of common sections included in International Assignment Agreements. These sections are linked to the below sample agreement for you to explore.

International Assignment Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-10.10 25 dex1010.htm INTERNATIONAL ASSIGNMENT AGREEMENT - JOHN TOWNSEND , Viewed September 16, 2022, View Source on SEC .

Who Helps With International Assignment Agreements?

Lawyers with backgrounds working on international assignment agreements work with clients to help. Do you need help with an international assignment agreement?

Post a project  in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate international assignment agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

Meet some of our International Assignment Agreement Lawyers

I'm an employment lawyer. I counsel and represent employees in all professions, from hourly workers to doctors and executives, and all in between. I also counsel and represent employers in many aspects of employment law.

Small firm offering business consultation and contract review services.

Scott graduated from Cardozo Law School and also has an English degree from Penn. His practice focuses on business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, data security and compliance. While he's worked with large, established companies, he particularly enjoys collaborating with startups. Prior to starting his own practice in 2011, Scott worked in-house for over 5 years with businesses large and small. He also handles real estate leases, website and app Terms of Service and privacy policies, and pre- and post-nup agreements.

Michelle F.

I provide comprehensive legal and business consulting services to entrepreneurs, startups and small businesses. My practice focuses on start-up foundations, business growth through contractual relationships and ventures, and business purchase and sales. Attorney with a demonstrated history of working in the corporate law industry and commercial litigation. Member of the Bar for the State of New York and United States Federal Courts for the Southern and Eastern Districts of New York, Southern and eastern District Bankruptcy Courts and the Second Circuit Court of Appeals. Skilled in business law, federal court commercial litigation, corporate governance and debt restructuring.

I am a corporate and business attorney in Orange County, CA. I advise start-ups, early-growth companies, investors, and entrepreneurs in various sectors and industries including technology, entertainment, digital media, healthcare, and biomedical.

Oscar is a St. Petersburg native. He is a graduate of the University of Florida and Stetson University, College of Law. A former US Army Judge Advocate, Oscar has more than 20 years of experience in Estate Planning, Real Estate, Small Business, Probate, and Asset Protection law. A native of St. Petersburg, Florida, and a second-generation Gator, he received a B.A. from the University of Florida and a J.D. from Stetson University’s College of Law. Oscar began working in real estate sales in 1994 prior to attending law school. He continued in real estate, small business law, and Asset Protection as an associate attorney with the firm on Bush, Ross, Gardner, Warren, & Rudy in 2002 before leaving to open his own practice. Oscar also held the position of Sales & Marketing Director for Ballast Point Homes separately from his law practice. He is also a licensed real estate broker and owner of a boutique real estate brokerage. As a captain in the US Army JAG Corps, he served as a Judge Advocate in the 3rd Infantry Division and then as Chief of Client Services, Schweinfurt, Germany, and Chief of Criminal Justice for the 200th MP Command, Ft. Meade, Maryland. He is a certified VA attorney representative and an active member of VARep, an organization of real estate and legal professionals dedicated to representing and educating veterans. Oscar focuses his practice on real small business and asset protection law.

We help simplify every transaction and provide a superior level of customer service to create long lasting and trusted relationships with our clients. Our goal is to guide our clients with practical and zealous legal representation and eliminate the difficult nature of any legal transaction.

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Who is an Expatriate Employee?

Who are expatriate employees and are you considered one.

We’ve all been hearing this term expat employee or expatriate worker. Living abroad and working on expat assignments are part of being an expatriate employee. Sometimes, the assignments are short, and sometimes it takes more than a year. Other times, expat employees travel from one country to another to complete their job tasks. So what exactly does it mean? In this article, we will explore the definition and what exactly it is to be an expatriate employee .

Definition of Expatriate Employees

A person living/working in a country other than his or her country of citizenship is considered an expat. Expatriate employees are often working in another country temporarily. Expatriated employees are usually sent abroad by a multinational employer (profit or non-profit) on a long-term job assignment over a year. Often, the organization has to send a senior manager to oversee the operation abroad or set up a new branch office. Often, there will be local nationals in the office – which would be the employees who are citizens of the country or have been domiciled there for a long period of time.

Woman on beach resting in hammock and working on laptop

Understanding Expat Employees

When it comes to expat workers, they earn more than they would at home and more than local employees. Furthermore, if you’ve chosen to become an expat employee, your company will also give your expat employee benefits such as relocation assistance and housing allowance. Becoming an expatriate has a lot of benefits, from getting opportunities for career advancement and global business exposure to living abroad and exploring exotic cities and cultures.

On the other hand, it can also be a difficult transition emotionally for some expats as they will have to leave their friends and family back home and adjust to a new culture and work environment. It is also one of the main reasons companies offer higher compensation and benefits to expat workers.

Expat Employees are “Special”

Generally, expatriate employees expect and deserve higher levels of pay, international health insurance , benefits and more from global employers for a variety of reasons:

• Expats are often in high demand, and their positions are more often than not senior management level
• They fulfil essential positions abroad that are critical for your organization’s financial success
• International experience is considered to require additional income
• Expats are moving abroad by themselves, especially with their families making a big financial and emotional commitment. Picking up stakes and moving your life abroad to a new country is also a big deal.
• Expat assignments are expensive. Not only do they often get paid more, but you have to factor in costs such as housing , schools, insurance, travel and much more. A failed expat assignment can cost hundreds of thousands.
• Finding the right expat employee can be very expensive, especially if a “head hunter” is used as their fees often range between ten and twenty percent of the annual wage.

Who are Expatriate Employees?

Expat employees are professional or skilled workers in his or her profession. The employer can become an expat employee by taking job opportunities outside of their home country , either independently or through his or her employer. The employer can be a company, university, government, or even non-governmental organization. A simple example is if you are working in the Silicon Valley office, and your employer sends you to work for a year in its Hong Kong office. In the Hong Kong office, you’re an expatriate employee.

Who is NOT considered as Expatriate Employee?

Business traveller.

Business travellers are those who are still employed and have a payroll with their employers in the home country. They can be sent on short-term global mobility assignments, and their place of employment is still in their home country. For example, someone can go overseas on a business trip for a few days or longer, yet it’ll still be a short-term assignment. Most business traveling employees are going on trips in under six months. Companies should make sure they secure a robust business travel plan for their entire company if sending employees abroad for short-term trips.

Accidental expat

An accidental expat is when a business traveler stays overseas for too long, and sometimes with the host country’s law, the place of employment may shift to the host country. They may work for a year, coming home only on the weekends. In such a scenario, business travel risks becoming an accidental expatriate. In other cases, even global nomads who move from one country to another without returning home become accidental expat. The COVID-19 pandemic has certainly added a lot of accidental expats as employees traveling are now stranded in overseas locations.

Foreign hires

Other than business travelers, another type of false expatriate employee is foreign hire. Multinational companies occasionally recruit candidates from one country to work in another country. For example, contractors in the Middle East recruit laborers from Indonesia, Phillippines, and other developing Asian countries.

Another example is giant tech companies in the USA recruiting graduates from top universities in India for jobs in California. Foreign hires also include US multinational companies hiring American security guards to work in the Middle East . All these employees are considered foreign hires and not expatriate employees because their employer is in just one country. However, one may certainly disagree with this description – you might just call these valued hires ex-pats.

Expat Contractors

Some global mobility managers will not consider contractor employees if the person is sent or hired abroad for a short or long-term assignment. They are not on the company payroll and are often considered contractors or consulting employees. However, if that “contractor” is only working for your company and indeed if the contract is extended beyond a year, is he or she really a contractor? If something goes wrong or if there is a sickness or injury, that expat contractor might be seen as an employee by the courts – local or back in the home country.

Duty of Care for Expatriate Employees

We have written some articles on the global mobility manager’s duty of care. It is a hot topic in global mobility circles these days. Suffice it to say it is critical for managers to ensure that expat employees, local nationals, contractors, and business travelers are protected and well-insured. All too often, we see people sent abroad for short and long-term assignments with inadequate global healthcare coverage, disability, evacuation, and life insurance coverage on a group or individual basis.

Many expat employers do not place adequate kidnap and ransom coverage for employees in high-risk locations. This puts employees and employers at risk – either because global mobility managers are not being well-advised or the employer wants to save money. Many countries, including the USA and Canada , have issued guidelines for meeting the duty of care for overseas employees. This can extend to adequate insurance but also health and safety as well. International employers need to take a proactive stance to insure, prepare, and protect their employees everywhere.

As part of TFG Global Insurance Solutions Ltd, we can discuss your organization’s duty of care from an expat insurance specialist perspective. If your organization would like to have us examine your global benefits plan , please feel free to reach out to us today. If possible, you can send us the details on your global health insurance plans, expat census, and contracts. We have often been able to find holes in current insurance coverage that were putting employees and the company at risk.

Our firm hase been able to secure thousands in savings for clients when our firm has been appointed as broker of record for their existing insurance policy, often keeping them with the existing insurer after conducting an expat benefit plan RFP. It really makes sense to work with an expat insurance specialist firm .

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| Working abroad: assignment and global mobility

10 Apr | Working abroad: assignment and global mobility

International mobility is an increasingly widespread and challenging factor for many companies . But what drives a company to invest in international mobility? Why are both medium-sized companies and multinational groups opting to gamble on this sector?

What is the value of the human capital employed? What does it mean for an employee to start such a challenging path? What are the risks for the company? There is no universally agreed upon answer to these and many other questions. Over the last decade , there has been a strong growth in the number of assignments abroad , with a trend that is profoundly different from that seen in the previous decades. What has changed is both the approach and the concept of assignment that, obviously, are affected by the impact of market globalization and the need to develop and disseminate organizational and managerial technical knowledge, which are increasingly fundamental factors of our daily life. Contrarily to past views on the subject, it is now common knowledge that, over time, a person’s skills can arise and develop in any part of the world .

In these new assignment processes, therefore, from a purely operational point of view, it is no longer just the large American and European multinationals that send their personnel abroad for medium to long term missions.

It is, thus, necessary to provide a more specific definition to the term “ Assignment “. This term involves, in fact, a broad category of workers – not necessarily sent in posting – called to carry out their activities outside the national borders , according to different schemes and methods of service performance.

The simplest definition is “ Expat “. This term usually indicates those employees who move to a foreign country for a limited period of time in order to carry out a mission by virtue of an agreement between the “mother” company, which sends him/her on a mission, and the “host” company, where said mission will be carried out. Over the years, companies interested in the phenomenon of international mobility have given rise to different types of assignments, which differ according to the type of service performed and the duration of the mission. In general, it is possible to distinguish between:

• Assignments that require the constant presence of the worker abroad (in this case, in light

of the Italian legislation, we will talk about foreign posting)

• Missions that are activities carried out both in the home and the host countries

(employees on occasional transfers or foreign transferees).

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IESE Insight

Whom to send where? International assignments and multinationals

In multinationals with subsidiaries scattered around the world, communication is key — and complex. So what's the best way to get firm knowledge flowing in the right directions?

One of the greatest changes to global staffing practices over the past two decades has been the dramatic rise of international assignments as a means to transfer knowledge where it needs to go.

Sending a trusted manager from headquarters to a foreign subsidiary is the most common kind of international job assignments. These are your traditional "expatriates." Next to them, researchers have observed an even more significant surge in the number of "inpatriates" — i.e., managers who are local to the subsidiary site and have been sent to HQ. Mirroring the expat logic, these inpats are meant to help knowledge flow between multinational offices and HQ.

So, does it work? Research published in Human Resource Management , co-authored by Anne-Wil Harzing, Markus Pudelko and IESE's B. Sebastian Reiche , says yes and reveals quirks specific to certain international posts. The large-scale survey of more than 800 majority-owned subsidiaries across Asia, Europe and North America reveals both the benefits and the limitations of international assignments for managers as a means to better transfer knowledge within multinationals.

The role of the manager sent abroad

The international assignee arrives from another country, either to headquarters or to a subsidiary unit, with the goal of promoting knowledge transfer. But what does that mean on the ground?

Staff members may transfer knowledge directly — by sharing information on HQ culture and management practices with their colleagues and relaying learning outcomes back to the home unit. Knowledge is often complex and tacit and requires direct personal contact to impart.

Employees may also transfer knowledge indirectly — by acting as bridges to link home and host-unit staff, developing social capital between units and acting as facilitators and connecters. The survey developed and updated by Harzing et al. captures both types of knowledge flows.

Where you come from and where you're going

Expats are old news. What's novel in the 2015 research is that inpats are almost as easy to find at a multinational. In fact, in this extensive survey, the co-authors find that for every 100 employees at a subsidiary, on average, 1.22 are expatriates from HQ and 1.16 are former inpatriates (i.e., back from an assignment at HQ).

Granted, different countries continue to approach staffing in different ways, the study reveals. Japanese multinationals, for example, are still more prone to post parent-company nationals to manage subsidiaries, as are Korean and Chinese companies. Meanwhile, multinationals based in Northern European countries are most likely to hire local managers or third-country nationals to manage their foreign offices, which has its advantages.

When expats are found in subsidiaries, they are likely to take the top spot (managing director). In fact, 33 percent of subsidiaries in the survey have expats on top. Meanwhile, local R&D and marketing departments are also relatively likely to be led by expats (weighing in at 18 and 16 percent, respectively). While conventional wisdom might suggest a local hire to best understand local market needs, tapping expats to direct the marketing department is still surprisingly common, the co-authors find. At the same time, expats head up fewer than 10 percent of manufacturing departments and 6 percent of human resources departments.

Knowledge flows

The research finds the presence of expats and former inpats in subsidiaries usually helps knowledge flows — but not always.

More specifically, the presence of an expat manager at a subsidiary helps knowledge transfer from HQ to that subsidiary in all functions studied except marketing. Benefits are especially visible when there's an expat heading a subsidiary's manufacturing department, where HQ's technical knowledge may help not only manufacturing, but HQ understanding in other units, too.

Summing up detailed analyses presented for different cases, the co-authors conclude that expatriates are more effective transferring knowledge from HQ than doing the reverse. To achieve knowledge flows to HQ, it makes more sense to inpatriate local hires (i.e., send them from subsidiaries to HQ) and then send them back home again. It's an office shuffle that may make multinationals grow wiser on the whole.

Is knowledge transfer a challenge in your company? The first question to ask yourself might be which direction you need the knowledge to flow in. It could make all the difference as to which company employees pack their bags.

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Thoughtfully articulated to help find jobs overseas for the millions of job seekers in India, with enough of choices, Assignments Abroad Times hit upon the news stands, way back in February 27, 1993. That turned out to be an event and history. A weekly newspaper on Saturdays carrying ads to cater job seekers an opening abroad. It had its own trials and tribunals and never regretted for having launched it. AAT was born out of conviction to help poor job seekers, so say everybody. Adjusting to all sorts of privations. AAT has acquired the quality of piety and willingness to forgive and forget. Now AAT is well on its pursuit and have acquired epitome of composure. In 1997 AAT has turned a Biweekly bringing out another edition on Wednesdays. This has also clicked in the market very well. EPAPER

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The secret of remaining cynosure.

If a country continues to receive plaudits or don top rankings as a cynosure of visitors and travellers, there must be some permanent exceptional elements. The uae is one such attraction of a permanent nature. year after year the country remains on the top list, whether as the most-favoured destination for expatriates for living, travel or business. Travelling abroad is one thing, but starting a new life overseas is another. expats who’ve moved abroad say the uae, Bahrain and singapore are the top three places where it is relatively easy to settle in. a survey of nearly 12,000 expats around the world by inter-nations, an expat community group with 4.5 million members in 420 cities around the world, ranked locations based on what it. calls the expat essentials index, which considers newcomers’ assessments of their digital life, like access to administrative services online, housing affordability and ease of finding, administrative topics like the ease of opening a local bank account or getting a visa. newcomers say it is easy to get a visa, find housing, access government services online and get around without speaking the local language. all offer easy communication without big language barriers and also pose minimal bureaucratic issues. They also note that english is widely spoken in these places, which can make it easier for foreigners to deal with bureaucratic and administrative to-dos when moving. These locations are well known as popular expat destinations, and because of this, they may have adapted to make things easier for new arrivals from abroad. many expats moving to the uae, Bahrain and singapore are from india and are moving for work-related reasons, to find a job on their own, for a foreign assignment, because they are an international recruit, or they are starting their own business. The authorities continue to surprise the world with new and irresistible attractions.

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