Ten tips for nailing a successful international work placement

Taking your business global is exciting, but it comes with its own set of challenges. According to a report by HSBCⁱ, UK businesses are increasingly eager to trade abroad, with many companies planning international expansion and established global players looking to broaden their reach.

However, while sending employees overseas can bring incredible opportunities for your company and your team, it’s not as simple as booking a flight and packing a suitcase. There’s much to consider including different employee regulations and tax regimes, setting up essential benefits, and ensuring everything aligns with local laws and expectations.

Firstly, its important employees have an open mind, free from any preconceived notions and they don’t judge. Working abroad successfully requires embracing cultural diversity and respecting local customs, such as greetings and communication styles. For instance, in the Middle East, one should not shake a woman’s hand unless she offers hers first.

Also, the stakes are high for companies, so they need to get it right. According to KPMG, the cost of a failed international assignment can range from USD $850,000 to $1.25 millionⁱⁱ. Common pitfalls include deficiencies in health, security, and wellbeing support for an organisation’s mobile workforce. Cultural misunderstandings can also cause offence.

Failing to prepare your employees properly and not adhering to country laws and cultures can spell disaster, including inadequate care in emergencies and company litigation.

With so much that can go wrong, here’s my essential tips to ensure your overseas assignments are a success:

1. Know your employee
   

Before even thinking about sending someone overseas it’s important to know everything about them. From the prescription medication they may be on, which might not be available where they are going, to what their personal life situation is. For instance, do they have a sick parent which may put additional strain on the assignment or are they leaving family behind? If the answer is yes, then extra support may be needed above and beyond the initial plans.

2. Communicate clearly and effectively
   

Language can be a challenge in any region, even in English-speaking regions. To avoid misunderstandings, employees need to be clear, direct, and concise, especially when working with colleagues for whom English is not a first language. Use humour and sarcasm sparingly too until familiar with what is acceptable, as these can easily be misinterpreted.

3. Understand local cost of living
   

Expats often assume that relocating to tax-friendly regions like Dubai will make them significantly wealthier. However, the cost of living can be surprisingly high. Familiarising employees with local expenses before arrival can help manage expectations and avoid financial surprises.

4. Different rules for different durations
   

Short-term assignments (six months or less) usually mean employees can stay under their home country’s tax and benefits systems. But for longer gigs, you might need to think about relocating families and sorting out local payroll to keep things financially smooth and tax-compliant.

5. Establish travel policies upfront
   

Create clear travel policies from the offset outlining the employee’s entitlements such as accommodation they can have, their flight allowances, and travel class. This helps prevent misunderstandings later and ensures smoother transitions.

6. Get to grips with local tax laws
   

Tax rules can vary wildly, so make sure you're on top of the local tax laws to avoid any nasty surprises. For longer assignments, getting your employee onto the local payroll can be a smart move to optimise tax benefits. Seeking expert advice is definitely a good idea here.

7. Be culturally savvy
   

A little cultural sensitivity goes a long way. Brief your employees on the dos and don’ts of their new location, from the cultural norms to safety advice. Understanding local health and wellbeing practices can boost the success of the assignment too. For example, mental health support, common in the UK and USA, may not be as appropriate or welcomed in other countries.

8. Immerse in the local social scene
   

Life abroad shouldn’t be all work and no play. Encourage employees to join local community groups, sports teams, or other social activities. Socialising with colleagues outside of work can greatly ease their transition, helping them to adapt more smoothly and build a strong support network. Companies often overlook this aspect, but ensuring employees settle in socially is vital to the success of an international assignment.

9. Tailor your employee benefits
   

One size doesn’t fit all when it comes to benefits. Make sure the package matches the assignment’s location and duration—think travel insurance, medical coverage, and social security. Pensions can work differently too. For example, expats in the UAE won’t be eligible for a pension but will get end of services benefits. And remember, in some places, once a benefit is offered, it can’t be taken away.

10. Always have a contingency
    

Have a plan in place of who will be the next person if the assignment doesn’t work out. This may mean starting to train someone up either locally or back home ready to take over. Also, as new locations open up firms should have a pipeline of people internally, or from a competitor, to call upon as the firm expands so they can jump on these opportunities.

Support employees every step of the way

Your support shouldn’t stop when the plane lands either. Check your employees have everything they need before, during, and after their assignment, from cultural briefings to reintegration programmes to help them transition back to their home country or prepare for their next assignment. Happy, supported employees make for successful assignments.

Also, as life circumstances change, such as getting married and starting a family, employees may need to reassess their housing and lifestyle choices, especially those working abroad for long periods. Providing support and guidance on long-term options like buying versus renting property can be valuable.

Going global is a thrilling journey, and with the right approach, international assignments can be a win-win for both your business and your employees. To find out more about global assignments listen to Howden’s webinar here

Seeking help from an experience adviser is recommended. Howden Employee Benefits & Wellbeing can support businesses and their people domestically and internationally. Find out more here: https://www.howdengroup.com/uk-en/multinational-benefits-global-programmes.

i https://www.business.hsbc.uk/en-gb/corporate/insights/international/uk-firms-hear-the-call-of-global-growth

ii https://www.internationalsos.com/return-on-investment?utm_source=pressrelease&utm_medium=media&utm_campaign=ROI