Global Mobility and Its Role in Business Planning

Business

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October 31, 2024

As companies plan to meet the growing demands of a globalized world, global mobility emerges as a crucial aspect of their business strategies. This approach allows businesses to deploy their talent across borders, whether through short-term assignments, business travel, or permanent relocation, all aimed at expanding operations internationally.

As global markets become increasingly competitive, the need for skilled professionals willing to work across regions is more pressing than ever, positioning global mobility as a central element in companies’ growth strategies.

The Growing Significance of Global Mobility

In recent years, global mobility has evolved beyond merely relocating employees; it now serves as a core strategy for businesses aiming to build an international presence. Companies have adopted various methods to implement this, including hybrid working models and flexible relocation options that align with the dynamic expectations of today’s workforce. Flexibility is key in today’s evolving work environment, where organizations prioritize flexibility in where and how employees work.

Key Global Mobility Strategies for 2025

Freepik | Global mobility is driving business growth, with companies prioritizing international workforce expansion.

A recent report sheds light on how global mobility strategies are shaping business operations. Companies surveyed shared that expanding their workforce internationally is a core priority for their growth in the coming years, with a significant focus on retaining high-performing employees and establishing new regional offices. Some of the major highlights include:

1. Increased Budget Allocations

Nearly 55% of companies reported an increase in their global mobility budgets, while 32% maintained consistent funding levels. This trend underscores the recognition of global mobility as a valuable business investment rather than an overhead cost.

2. Visa Renewals and Relocations

The demand for relocations and visa renewals remains strong, especially in countries like Germany and the UK, where immigration policies are changing. German employers, for instance, are adapting to the country’s new naturalization laws, while UK firms navigate visa requirements post-Brexit.

These insights highlight the growing importance of global mobility for companies aspiring to expand internationally. This trend shows that businesses are investing heavily in global mobility to ensure they remain competitive in the talent market and maintain a foothold in key regions worldwide.

Adapting to a New Era of Flexible Work

The shift to flexible working has redefined how global mobility functions within organizations. Businesses are gradually replacing fully remote setups with hybrid and flexible work models, which not only meet operational needs but also provide employees with additional perks that enhance their work-life balance.

“Worktations” and Business Trips

One of the most popular mobility benefits among organizations is the “workation”—a blend of work and vacation—allowing employees to work temporarily from another location. This option has gained popularity, with 58% of companies offering workations as a way to give hybrid workers some flexibility without being tied to a single workspace. Notably, in the Netherlands, workations are highly valued, with 62% of businesses providing this benefit to employees.

Balancing Opportunity and Risk

Compliance with immigration and labor regulations remains a crucial aspect of global mobility. Navigating visa regulations and maintaining documentation for cross-border employees is a challenging task for companies, especially for those managing larger workforces.

Outsourced Compliance Support

Outsourcing support in Global Mobility compliance.

Freepik | Companies outsource mobility compliance to better navigate regional regulations.

To manage this complexity, a significant percentage of businesses rely on external support for compliance reviews. The report reveals that 77% of companies outsource at least some aspects of their mobility-related compliance efforts, which helps them address region-specific regulations more effectively.

Policy Consistency

Nearly all respondents indicated that they maintain internal policies to manage time abroad for their employees. However, enforcing these policies can be difficult, with around 36% of companies reporting challenges in consistently applying these guidelines across all teams.

With compliance becoming increasingly complex, especially as international business continues to grow, companies are leaning on external expertise to ensure their mobility practices align with legal requirements without sacrificing their expansion goals.

The Role of Technology in Global Mobility

While technology offers many solutions, such as streamlined documentation and monitoring systems, companies are still cautious about adopting new tools, particularly emerging technologies like generative AI, to handle the intricacies of compliance and cross-border employee management. Although there is interest in these tools to enhance efficiency, experts believe that the strategic oversight of global mobility leaders will remain indispensable.

Future Focus for Global Mobility in Business Planning

Looking ahead, the focus on global mobility will continue to shape international business strategies. As companies prepare for 2025 and beyond, they will continue to prioritize long-term relocation and visa renewals to attract and retain top talent globally. Simultaneously, short-term mobility options like business trips will remain crucial for strengthening relationships in new markets and offering employees flexible work arrangements.

By embracing the evolving landscape of global mobility, businesses can unlock new opportunities for international growth, build resilient teams, and navigate the complexities of a globalized economy.