Enhancing Global Mobility: Why Companies Need to Prioritise Employee Support
In today’s interconnected global economy, businesses face significant challenges in managing a mobile workforce, making global mobility support more essential than ever. Companies often rely on the expertise of the Big Four accounting firms for tax planning and financial consulting. However, there’s a growing need for these firms to go beyond mere compliance and truly support employees during relocations.
The Reality of Global Mobility Support
Many clients express frustration with the support they receive from the Big Four, particularly regarding the lack of meaningful advice for Australian expatriates. Often, businesses feel they are being charged for insufficient Employee Mobility and Tax Advice. While it’s common for clients to receive complimentary tax services during the initial years of relocation, this period is critical for ensuring a smooth transition without unexpected tax liabilities.
The initial years are vital for expatriates to establish themselves correctly abroad, yet many receive subpar advice masquerading as free services. While I have friends and colleagues at these firms, it’s clear that change is necessary to enhance global mobility support.
Why Global Mobility Matters
Global mobility is not just a logistical exercise; it’s about valuing a company’s most important asset: its people. Unfortunately, many organisations fall short in providing adequate support for relocating employees. This oversight can lead to stress, decreased productivity, and ultimately harm business performance.
The Big Four firms are uniquely positioned to fill this gap. With their expertise in tax planning, they can ensure compliance with tax laws in both home and host countries. However, their role must extend beyond compliance to include comprehensive support that addresses the full spectrum of an employee’s relocation needs.
A Call for Comprehensive Relocation Support
Clients often feel like mere account numbers, with tax questionnaires filled out and returns lodged without any personalized support. To truly enhance global mobility support, firms must provide holistic employee mobility solutions that address the full spectrum of an employee’s relocation needs. This should encompass:
- Housing Assistance: Help employees find suitable accommodations in their new locations.
- Cultural Understanding: Offer insights into local customs and practices to ease transitions.
- Financial Guidance: Extend financial advice beyond tax planning to include wealth management and asset protection.
Employees who know their employers are invested in making their transition smoother often report higher morale and loyalty. Providing these comprehensive solutions not only supports employees but also strengthens the overall workforce, driving business success.
Employer Responsibility
Employers also have a crucial role in creating a robust support system for their mobile workforce. This includes:
- Leveraging the expertise of accounting firms for tax and compliance issues.
- Providing resources that help employees acclimate to their new environments, such as:
- Finding schools for their children
- Understanding local healthcare systems
- Offering language training
Companies that prioritise these aspects tend to see better employee retention, higher job satisfaction, and a more motivated workforce.
Conclusion
While the Big Four have the technical expertise necessary for effective tax planning, it’s imperative that they broaden their focus to include comprehensive relocation advice. Strategic tax and wealth management advice should consider employees’ asset bases and tax residency issues. Employers, in turn, should actively seek and demand this level of support to truly excel in global mobility.
To stay competitive and foster a thriving mobile workforce, both employers and the Big Four must elevate their standards and practices. By investing in comprehensive support systems, companies can ensure a smoother transition for their employees and enhance overall business success.