10 Years After “Frankenschock,” 5 Years After the Global Pandemic — Where Does Global Mobility Stand in February 2025?

Frankenschock

In January 2015, the Swiss National Bank (SNB) shocked global markets by removing the Swiss franc’s peg to the euro, triggering the so-called “Frankenschock.” The abrupt appreciation of the Swiss franc immediately impacted Switzerland’s economy, particularly for globally mobile professionals, expatriates, and multinational companies. Fast-forward to 2020, and the world was grappling with another seismic event—the COVID-19 pandemic—which disrupted global mobility on an unprecedented scale. Now, in February 2025, we take stock of where Global Mobility stands a decade after the Frankenschock and five years after the pandemic reshaped work and relocation.

The Evolution of Global Mobility Post-Frankenschock and Pandemic

The Frankenschock and the pandemic, though vastly different, both forced companies and individuals to rethink global mobility strategies. The Frankenschock led to cost-cutting measures, localization of expatriate packages, and a more cautious approach to international assignments. Conversely, the pandemic accelerated digital transformation, hybrid work models, and the rise of virtual assignments. Today, global mobility professionals navigate a landscape shaped by these two defining moments.

Key Trends in Global Mobility in 2025

1. Remote Work and Hybrid Assignments as the Norm

One of the most lasting effects of the pandemic is the widespread adoption of remote and hybrid work models. Companies now embrace global talent without requiring physical relocation, allowing for more flexible international careers. However, tax and compliance challenges remain a key concern as governments have adopted policies to regulate cross-border remote work.

2. Compliance and Corporate Due Diligence in a More Regulated World

With stricter corporate due diligence laws coming into effect across Europe and beyond, organizations must ensure compliance with labor laws, taxation, and social security regulations for their global workforce. The focus on ethical employment practices, fair wages, and ESG (Environmental, Social, and Governance) considerations means that global mobility professionals must align relocation policies with corporate sustainability goals.

3. Cost-Conscious Mobility Strategies

The financial impact of both the Frankenschock and the pandemic has led companies to reassess their global mobility budgets. The trend toward local-plus packages, commuter assignments, and regional mobility hubs continues. Cost-conscious mobility strategies mean that expatriates receive fewer traditional benefits, while companies expect them to integrate more quickly into local markets.

4. Talent Shortages and the War for Skilled Workers

Despite economic uncertainties, talent shortages persist in key industries such as healthcare, technology, and engineering. Companies rely on global mobility to fill critical roles, but immigration restrictions, skills shortages, and changing employee expectations make it challenging to attract and retain top talent. The rise of “talent passports” and fast-track visa schemes in countries like Switzerland, Germany, and Singapore highlights the need for agile mobility solutions.

5. The Rise of AI and Digital Solutions in Global Mobility

Artificial intelligence and automation are transforming how companies manage expatriate assignments. AI-driven tax and immigration compliance tools, digital relocation platforms, and predictive analytics help organizations streamline mobility programs. Virtual reality (VR) and augmented reality (AR) are now commonly used for pre-departure training, cultural onboarding, and property searches, enhancing the expatriate experience.

Where Do We Go From Here?

A decade after the Frankenschock and five years after the pandemic reshaped the world, Global Mobility stands at a crossroads. The industry has become more flexible, digital, and cost-conscious, but challenges remain. As companies navigate economic uncertainty, regulatory complexities, and evolving employee expectations, one thing is clear—Global Mobility will continue to grow, adapting to the needs of a borderless workforce in a rapidly changing world.

For global mobility professionals, the challenge is not just about moving talent across borders; it’s about creating mobility programs that are resilient, sustainable, and aligned with the future of work. February 2025 marks a moment to reflect on lessons learned and prepare for what’s next in the ever-evolving world of international work and relocation.

 

More Resources

https://podcasts.apple.com/ie/podcast/episode-08-immigration-and-the-global-fight-for-talent/id1667646654?i=1000606512167

Inclusive Leadership in Global Mobility

https://www.ifo.de/publikationen/2015/aufsatz-zeitschrift/der-franken-schock-die-freigabe-des-schweizer-franken-wer

https://www.nzz.ch/wirtschaft/der-mindestkurs-ein-experiment-das-die-schweiz-auch-nach-zehn-jahren-noch-praegt-ld.1864669

 

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