Contrary to what many might think, the term Digital Nomad isn’t an invention of the 21st century. The word, in fact, was first introduced in the homonym book “Digital Nomad” published by Wiley in 1997.

However, up until recently, people tended to connect this denomination with names of fancy Facebook groups where a small number of privileged and tech professionals were allowed. This is because until ten years ago, the typical graduate who entered the workplace would be shown their desk and be tied to it thereafter. If on the one hand, a few digital-first companies were already offering the possibility to work flexible hours and/or from home, on the other hand most employees could not even dream of working from a paradisiac location ten thousands miles away from the company’s office.

Nowadays, digital nomads are becoming a trend. In Global Mobility we speak of “Virtual Assignees” and “Digital Nomads” now as new assignment types. Millennials, are going to make up 75% of the global workforce by 2025, according to Inc.

In fact, in 2015, flexible remote work was already the top priority for Millennials and 85 percent expressed their preference for telecommuting 100 percent of the time (Flexjobs survey).

With this data at hand, it’s easy to see that we’re dealing here with a real new breed and not anymore a restricted circle of tech-savvy gurus. And at this point, it’s also easy to predict that the rise of this category of workers will obviously also have a strong impact on Global Mobility policies. 

The Six Points You Need to Make Sure to Check

Fatima is a young and determined woman who works as a freelancer. She has recently moved to Switzerland from where she continues to work, and she calls herself a Digital Nomad. If, like her, you too are a Digital Nomad and you’re about to or have just moved to Switzerland, this article might enlighten you on some fundamental technical issues that you need to be aware of in the Helvetic Confederation.

Despite this article being Swiss-specific, these points are worth considering wherever in the world you’re dreaming to live, either temporarily or permanently.  

This is an offer an overview of risks we see frequently. For deeper advice on your personal situation I recommend that you seek advice from specialists in the individual areas. I’m happy to introduce you to these specialists in Switzerland.

1 – Labor Law 

The labor law that applies to your case changes significantly whether you are classified as self-employed or employed. In Switzerland, being self-employed means that you work on your behalf, you are independent, and you assume the financial risk. You may decide on the type of company you build.

You will need your own infrastructure, you draw up invoices in your own name, you assume the risk of collection and you work out your taxes. Additionally, you decide on your organization and your method of working. You may outsource work to third parties and you work for more than one client. Based on this employed/self-employed differentiation, the aspects concerning your work permit vary as well.

It is as well possible that, due to different legislations across countries, the Swiss labor inspection authorities could qualify you as an employee of your current “employer” or “client”. This can happen even when in your country of origin your status is of self-employed or freelancer. If this should happen to you, you will need to provide various further documents to the competent authorities. 

Based on your host country you really need to familiarize yourself with the local employment law as well especially if you are planning to hire other people into your business.

2 – Immigration Law

If you share with Fatima the typical Digital Nomad spirit, you will probably travel often. Even during Corona-times, you will most likely travel more frequently than a traditionally employed person. For this reason, it’s important that you have the correct permits to enter the countries and actually work there. 

If you’re an EU / EFTA national not yet residing in Switzerland and working there over eight days per calendar year, you will need both a residence and work permit. If you only work here up to 90 days per calendar year your employer will have to register you via the online registration procedure. Usually, the permission will be given. However, you can then really only work here for 90 days in a calendar year. 

As a “third-country national”, you have to be aware that work visas are limited to quotas and they are therefore not so easy to obtain.  You are not allowed to work in Switzerland while on a tourist visa. You don’t want to get into trouble with the Swiss authorities.

The permits that allow you to work in Switzerland are L, B, C, and G. They have different purposes and durations. If you want to read more details about the characteristics of each permit, check our resources at the bottom. As an expat spouse you generally have the approval when you receive a B-permit. With the L-permit there is often a restriction.

Do you feel confused? Trust me, it’s normal. That’s why it’s always best to get advice from an Immigration Specialist. I suggest you contact Sonia Meier  of BecomeLocal. 

Special Digital Nomad Visas

You might be up-to-date already, but in case you didn’t know it, some forward-thinking countries have already introduced specific visas for Digital Nomads!

These visas are not for any Digital Nomads and every country has listed its own requirements and benefits, but it is worth it to check them out. Up to today, the countries that offer this opportunity are Barbados, Georgia, Estonia, Bermuda and Thailand, while Croatia is next in line. Check out our resources below if you want to find out more about the topic! 

With the Digital Nomad trend on the rise, Fatima wishes that Switzerland too will have this specific type of visa in the future, simplifying the bureaucratic burden she needs to go through.

3 – Personal Tax

Based on the Swiss federal tax law, you become a tax resident after living and working in Switzerland for a continuous period of 30 days, or after 90 days without earning any income. 

In Switzerland, you are responsible for paying your taxes. You are taxed only on the income generated in Switzerland and not on your worldwide income. This is regardless of whether you’re self-employed or not and it does not depend on whether you receive a one-time payment or a regular salary. 

It’s important that you learn to differentiate between your turnover and a potential salary that you are paying out to yourself. My most important advice is that you either find a good accountant like Joerg Blaettler of Winston Wolf or you learn accounting with a basic software such as Bexio.

4 – Corporate Tax

If you work for an international company without an office in Switzerland, be aware that your presence could create a “Permanent Establishment” for the company. This means that the company might have to pay corporate tax. If you decide that you want to keep  working from Switzerland, you should discuss this with them beforehand. 

If you own your own company and this is registered outside Switzerland, corporate tax issues could become even trickier, and you might incur in double taxation. Depending on the countries involved, treaties have their own specific clauses and you will have to look at your particular situation. 

5 – Social Security

For Digital Nomads like you and Fatima, it can become challenging to ensure at least basic insurance for retirement, disability or unemployment because social security is generally connected to the country of employment. 

The first thing you need to know is that Swiss social security is based on three pillars that I am going to briefly explain here. The first pillar is the basic insurance (old-age, survivors’, disability, and unemployment insurance): this is mandatory if you are a resident and earning an income in Switzerland.

If you are self-employed, you need to pay the full contribution through a self-declaration made to the authorities. If you don’t do this, the authorities will estimate and claim the contribution, and you incur a fine. 

Let’s focus on the pension scheme. When you reach the official retirement age, and if you’ve contributed for at least one year, you gain the right to claim the retirement annuity. Please keep in mind that the annuity is limited and calculated based on the years of contributions.

The second pillar is the employee’s pension scheme. This is mandatory and it covers the same risks as the first pillar, but it’s provided by the employer instead of the State. 

The third pillar is additional, private savings that you’re free to undertake or not, depending on your preferences.

And if you have a foreign employer? 

If you have a foreign employer who has the rights to apply for a certificate of coverage, they might be exempted from Swiss social security. If not, the foreign employer might have the obligation to register in Switzerland and seek for a first and second pillar solution for you while you’re based in Switzerland. 

6 – Health and Accident Insurance

As a Swiss resident, Fatima needs to have mandatory health insurance in Switzerland. She’s entering her third month in the country and her time to stipulate one is almost over. You have, in fact, up to 90 days to sign your health insurance contract from the moment you set foot in the country.

All health insurers in Switzerland provide the same benefits under basic insurance. However, if you want to be covered for other needs such as better hospital accommodation, legal assistance and so on, you need to add a voluntary supplemental insurance. 

In Switzerland, each person must pay health insurance premiums. The premiums are independent of the individual’s income but vary depending on age, residence and health insurer, so you are free to choose the health insurance company with which you wish to take out basic insurance.

If you move to Switzerland but still work in an EU/EFTA country, you must be insured in the country where your employer is based. This also applies if you are self-employed. In this case, it is not possible for you to purchase health insurance in Switzerland. If you feel lost and need guidance in making the right choice for yourself, we personally advise that you contact Ralph Endres of ExpatPartners or Domenico Bilotta at Helsana. 

As you figured out already, there’s a lot on the list of items that you need to take into account when deciding to work as a Digital Nomad for Switzerland. Having a clear vision of how everything works isn’t easy, especially if you need to understand bureaucracy in a language that you don’t speak well. This is why we always recommend that you reach out to a trusted expert in the field. If Fatima worked it out, you can certainly do it too! And remember it will be worth it, Switzerland ranks number 1 in the world for quality of life! 

Kind regards 

Angie Weinberger

Definitions

Digital Nomad

Online dictionaries such as Investopedia.com or Urbandictionary.com define Digital Nomads as individuals who are independent from their location by performing their work using “new” technologies, i.e. deriving their income by working remotely. A Digital Nomad is not required to commute to the employers’ office / headquarters to be physically present, as telecommuting is their preferred way of working. The typical digital nomad can be found in a myriad of locations, including using public co-working spaces, a home office or travelling around the globe.

Permanent Establishment (PE)

According to the OECD, it is a fixed place of business through which the business of an enterprise is wholly or partly carried on. The term includes a place of management: a branch, an office, a factory, a workshop, a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. A building site or construction site could also be a Permanent Establishment. However, tax authorities are adapting beyond this traditional definition. Overseas contractors, International Business Travelers (IBT), warehouse space, digital activities and so on could also create a PE.

Resources 

If you need to make a self-employment declaration and you don’t know where to start from,  you can check these resources out: 

Social Security in Switzerland

https://www.ahv-iv.ch/p/2.02.d

https://www.svazurich.ch/pdf/Checkliste_se.pdf

https://www.svazurich.ch/internet/de/home/private/arbeitssituation/selbstaendig.html

How to Develop Your Business

Here is a lot of general business advice from us. We can discuss this further. Please email Angie for a first consultation.

https://globalpeopletransitions.com/GlobalMobility/growme/

https://globalpeopletransitions.com/GlobalMobility/solopreneur/

https://globalpeopletransitions.com/GlobalMobility/global-entrepreneurs

World-Class Copywriting Courses

Ash Ambirge – The Middle Finger Project

Best Course on Building Digital Courses

Amy Porterfield

Best Podcast on Building a Global Expat Lifestyle

Sundae Schneider Bean

Dominic’s Advice for Swiss Compliance for Digital Nomads

https://feibv.nl/wp-content/uploads/2019/04/Dominic-Suter-MasterCourse-Human-Resources-and-Global-Mobility-Master-Paper-FINAL.pdf 

Details about the characteristics of the various Swiss work permits: https://www.swissinfo.ch/eng/work-permits/29191706 

More about Digital Nomads and immigration into Switzerland: https://newlandchase.com/digital-nomads-is-immigration-law-keeping-up-to-the-hype/ 

The guidelines published by the Small and Medium Enterprises (SME)

Other Countries

More information on the application procedure, supporting documents and the requirements to obtain a Digital Nomad visa in the countries that offer this: 

Barbados: 

https://www.fragomen.com/insights/alerts/12-month-remote-work-visa-introduced

Georgia: 

The application process is not yet up and running yet but the government is updating their website. 

Estonia:

https://e-resident.gov.ee/nomadvisa/ 

Thailand:

The SMART visa program is not only but also for Digital Nomads.

Bermuda:

Apply for their Work from Bermuda visa visit https://forms.gov.bm/work-from-bermuda/Apply

How was your week? Are you starting to feel the cheery holiday atmosphere? That nice blanket of snow I found Friday morning sure did jumpstart that magical feeling for me! Christmas lights and snow always bring an enchanted mood to Zurich, and after a week away at our RockMeRetreat, I feel even more present than usual and less anxious about the daily tasks. Don’t get me wrong, I’m still concerned about the state of the world, the health of my loved ones, and all the fatigue I hear from clients and colleagues. However, in this state of presence, with renewed energy and this joyous state of mind, it is a lot easier to focus my energy on what is really important.

Presence is important as we are constantly pulled in so many directions, and “energy flows where our attention goes” (Robbins, T n.d., para. 2).

I would like to share with you a small confession: Before I launched my business and when I started to blog I had a tendency to spend a lot of time on social media. There was a time when my family was concerned that I was getting addicted to Facebook or Twitter. Luckily, I got over this by developing healthy ways of interacting with social media. However, last week during our RockMeRetreat I enjoyed not engaging for a few days and now I feel ready for the online world again.

If you are like me you can hardly survive a day without your smartphones anymore, let alone access your bank account, google account, or any account for that matter.
When we are offline or have low batteries, it creates feelings of anxiety. I have an ongoing experiment where I am trying to increase my productivity and get more done by using less and fewer resources (money, paper, time, people). I would like to summarize the learning for you and you might want to follow me in this experiment. In my Mastermind Group, we are all considering getting a paper planner again because we feel that our digital tools are just not doing all the tricks. I also feel that often paper gives me a higher sense of security than an app. Obviously, I am trying to reduce paper where it is not needed but there are areas where paper just beats digital tools.

1 – Start with an Inbox List

To write this I started an inbox list I am regularly checking. The list became very long. I am not even sure I finished it yet. I’m not surprised that I am occasionally concerned about inbox anxiety. Once you have completed your inbox list, review my simplification principles and check which ones apply to you. Once you have completed your list review my simplification principles and check which ones apply to you. 

2 – Develop Your Simplification Principles

Here are examples of your simplification principles.

• People over Robots! Any personal message is better than an automated response.
• Move from DIGITAL to ANALOGUE on purpose. Use paper strategically.
• Delete unused apps from your smartphone.
• Turn your phone off from 9 PM to 6 AM. Give it a space for the night outside of the bedroom. (You will still hear the alarm!)
• Use Post-it for visualizing what is important to you. The idea is One thought, one post-it.
• Say “No, thank you…” or “yes, if…” to any proposal for meetings, work, and tasks right away. Commit fast and decline fast. Don’t ponder on decisions forever.
• When asked for meetings give two time-slot options only.
• Always set a deadline by when another person should come back to you.
• Wear black most of the time. On Wednesdays add a color. Stop ironing during a pandemic.
• If you don’t know what to wear because you don’t know if the occasion is formal or not, wear a black suit.
• Choose your social media channels wisely. You probably have more than necessary.

3 – Write your 2021 Accomplishment List

Go through the RockMeApp archive and review all that you have accomplished in 2021. For those who are not on our RockMeApp, go through your daily planner or your journal: I’m sure you have accomplished more than you realize in your professional, as well as in your personal life. Check if there are open items that you wish to close within the next two workweeks.

4 – Participate in our Online Workshops

I bet you’re wondering how participating in our online workshop is going to simplify your life? HireMeExpress is not just a course, it’s a group of people wanting to evolve on the Swiss job market. Global People Transitions is a community of people with connections always willing to give a helping hand.
There are many advantages to joining our online workshops: this group offers the opportunity to meet others who are in a similar situation, looking for a job. Together, you will acquire and exchange knowledge, practice networking techniques, give each other feedback. The shared journey offers you peer support, fresh points of view, encouragement through collaborative work. Personal and professional development is not always easy, but these online workshops will help you grow confident, are motivating, make the journey less lonely, and give you the keys to make it easier. Who knows! you might even meet people who can introduce you to someone who knows someone… You might even make long-term friendships!
To simplify your life in 2022, start right away with a few simple changes like getting rid of the apps you are not using (or shouldn’t use), go back to analog, where it’s relevant, think of your achievements and reflect on what you want to achieve in the upcoming year, and think of the HireMeExpress program if one of your goals for next year is looking for a new job in Switzerland! You won’t regret it!

Please join us and celebrate your accomplishments and let’s practice what we preach. Let’s build even more personal connections this December, make friends, work on our fame and improve our finances. I look forward to seeing you on 1 December in our first free workshop.

Workshop 1: Partnering Masters – Building Effective Relationships (FRIENDS)

Wednesday, 1 December from 17:00 PM CET till 18:00 PM CET

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Workshop 2: Powerful Missions – Having a Voice in a Sea of Noise (FAME)

Thursday, 9 December from 17:00 PM CET till 18:00 PM CET

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Workshop 3: Persisting Mindsets – Designing Work to Support a Global Lifestyle  (& Gluehweinparty)(FINANCES)

Wednesday, 15 December from 17:00 PM CET till 18:30 PM CET

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All dates and updates will be shared if you sign up on our #HireMeExpress list. Please sign up here by SATURDAY to get further updates and our 19 FRESH RESUME CHECKPOINTS.

A study by Learnlight shows that four in ten international assignments are judged to be a failure. And yet the number of overseas assignments continues to rise. Global companies are under considerable pressure to determine what makes a successful overseas assignment and to understand why they so often fail. However, what has been so often overlooked is why it is difficult to measure expatriate performance. Since both assignment failure and success depends on how expats perform on the job, it becomes pertinent to consider how expats perform and why it is difficult to measure their performance. In the following points, I will highlight and elaborate on five reasons why it is difficult to measure expatriate performance.

• Goals for Expats are often not clearly defined. They are often conflicting as they have to take into account the interests of the home and host company, or headquarters and subsidiaries. It becomes difficult to work effectively when expats are trying to achieve the home company goals while simultaneously trying to fit in the expectations of the host company. More expats would perform well if the goals of the host company align with the objectives of the home company.
• Performance ratings have been calibrated for years. However, we know that there is an unconscious bias in the data. The first rater is usually a direct manager.  This person potentially judges their own weaknesses less and thinks that the expat is responsible for failure alone. However, often the manager in the host country does not help the expat to solve dilemmas. The home country manager should consider it a responsibility to make it seamless for the expatriate to integrate well into the system. One of the biggest factors that determine whether or not an assignee would be successful is who his or her line manager is. 
• Cultural concepts of performance are biased. Definitions of “high performance” have been largely influenced by Western values and did not take team performance into account. The gig economy will need stronger team collaboration and fewer individual players. Eastern values and approaches might have an advantage now.
• Management by Objectives is outdated. We need a new conceptual framework of performance. Even in the past setting annual targets was not always the best method of judging performance (irrespective of expat or local).
• Expat managers usually lack the informal network and access to the host culture so it is not surprising if their performance drops in Y1. It is quite impossible to know how to navigate in a terrain that you are not familiar with. Also, they are busy adjusting and have a family to integrate into the new life abroad. One might think that we can accelerate the cultural adjustment and then just go “back to the normal way of judging performance” but I would advise against such thinking. It takes time to fit into the system and culture of a new location. Hence, the whole process of cultural adjustment takes its tolls on expat performance.

Expatriate Performance and Potential Assessment

Scullion, Collings (2011) describe the performance assessment system at Novartis which will be used as a generic example for global companies. The system “…grades employees on (a) business results (the “what”) and (b) values and behaviors (the “how”). While the business results are unique to each business area, the values and behaviors (ten in all) are common across the entire firm.” Together with the potential assessment talents are assessed in a nine-box matrix. (Scullion, Collings, 2011, p. 29)

Basing expats’ performance solely on business results may not give the overall picture of all that transpires to make an assignment either a success or a failure. There should be a holistic overview of all the processes that go into cultural adjustment and family acculturation. 

Expat adjustment as a success factor – The Term “Expat Failure” and what it commonly refers to

When discussing the success of an international assignment or project a common way to measure “success” is expat adjustment which in contradiction to “expat failure” is often equalized with completing an assignment for the planned assignment period.

“The authors leave open how long it may take an expatriate to attain the same level of applicability and clarity abroad as at home, stressing that one or two years may not suffice. To reach higher levels, the person may very well have experienced an identity transformation far more profound than passing through a cycle of adjustment.” Hippler, Haslberger, Brewster (2017, p.85)

“A “comprehensive model of success is missing” and Caligiuri’s (1997) suggestion that future studies should clarify what is meant by adjustment, as opposed to performance, indicated the need for definitional and discriminant clarity when examining performance.” Care and Donuhue (2017, p.107)

Talent management approaches in Germany and Switzerland and most of Europe are driven by the U.S.-based ideas about talent identification and definitions and use the “nine-box grid” to select key talents with a halo-effect towards white males. 

Influence of psychological contract on expatriate retention

An issue in expatriation is often the lack of clarity around the role after repatriation. A psychological contract exists between the expat and the company but there is no written agreement or clear understanding of the next role or roles in the process. Expectations are not properly managed and often expats are disappointed with their title, pay or role content in the next role when returning from an assignment.

Two years after repatriation there are several factors influencing retention significantly. 

1. a) re-entry cultural adjustment, another 
2. b) role expectation mismatch and 
3. c) the lack of applicability of the learning from the previous assignment.

The Integration of Global Mobility and Global Talent Management

One of the reasons for this lack of synchronization is the missing integration of global mobility and global talent management activities and functions in today’s organizations. The only guidance focuses on academic concepts of expatriate return on investment.

A Holistic Competency Model is Needed

I claim that we not only need a better integration of Talent Management and Global Mobility (hence the term Talent Mobility) but we also need to look at our performance management systems, global competency models, recruiting and talent identification process under a new light. We finally need to advance HR to an interculturally competent function and reduce the inherent bias in all of our processes, tools and leaders. This will be a major task in a post-colonial BANI World.

My Global Competency Model has been an attempt to integrate Eastern and Western mindsets into a model. Our coaching approach builds on Eastern and Western coaching practices. We included the ethics by the International Coaching Federation (ICF). The holistic approach of my coach, educator Drs. Boudewijn Vermeulen, further developed by Dr. Eva Kinast into a holistic, body-oriented and intercultural coaching method. This method focuses on building and maintaining effective trust-based relationships, the body-mind-heart connection and is linked to the psychology of Carl Gustav Jung. 

The model also assumes weekly reflection, regular practices, which originate from Eastern mindsets and concepts such as ZEN. We integrated body learning which was taught to me by Dr. Jay Muneo Jay Yoshikawa in a course of Eastern Mindscapes (back in 2005 at the Summer Institute of Intercultural Communication in Portland, Oregon). Reflected experiences are based on the single-loop and double-loop learning theory of Argyris and Schoen. Also, experiential learning that I first learned from Thiaggi about 20 years ago and have further developed into all of my programs.

Trust and Relationships are Collaboration Glue

In almost every coaching session right now leaders talk to me about the need to get better at building trust (also in a virtual setting) and relationships. Relationships in my view are the glue to working well together within a monocultural but also multicultural environment. Collaboration (as opposed to Cooperation) requires a higher level of trust among project team members. Agile needs it. And Diversity, Equity and Inclusion demand it. 

WHAT DOES THIS MEAN FOR GLOBAL MOBILITY?

“Better alignment between global mobility and companies’ global talent agenda is a precondition for making mobility truly strategic and helping companies achieve a significant return on investment with their international assignments.”

• Widening the scope of Global Mobility to include international hires, cross-border commuters, international transfers, lifestyle assignments, global digital nomads and other groups of internationally mobile professionals.
• Reviewing all HR models and processes to reduce bias and White Supremacy should be on the priority list of every HR leader but you can also make it your personal mission. Help us create a world where everyone has a chance and invite those to the table that are often overlooked.
• Defining assignment objectives up front and tracking progress throughout assignment. You must ensure that not only the home company or headquarters have clear cut objectives for the expat  but also that the host company’s objectives are in sync and align with that of the headquarters. Coach the expat or send them to me for coaching. Help them be a success rather than a failure.

• Improving productivity by addressing development areas such as communication, process and culture barriers. Key problem areas should be identified. Oftentimes, expats complain about loss of connection to the home company. Nobody from the headquarters or home company is interested in how they fare in the new environment. If expats feel deserted, it could adversely affect their performance output. Proffering viable solutions to pain points of expats, such as cultural roadblocks would help improve expats performance. Give them the vocabulary to speak about their blockers, send them to intercultural awareness training. 

• Helping coordinate annual talent review of all expatriates. Reviews like this give expats the opportunity to express their perception of the international assignment. 

• Increase the expat’s self-awareness. Let expats learn more about themselves. We use the IDI (Intercultural Development Inventory) and ICBI™ (Individual Cultural Blueprint Indicator) for example for self-awareness assessment and the outcomes can be a great conversation starter in a coaching session.

You already know that I am on a mission to bring the Human Touch back into Global Mobility and therefore we would also like to contribute to research in the growing body of knowledge around Global Mobility. Our Academic Intern Monica Kim Kuoy is running a research project and I hope you would like to support us by being an interview partner or sounding board for our ideas.

We look forward to hearing from you.

RESOURCES

Who is an Expatriate Employee?

https://expatfinancial.com/who-is-an-expatriate-employee/ 

https://feibv.nl/wp-content/uploads/2019/04/Master-Thesis_Weinberger-Angela_Jan-2019_Final.pdf

“Just reinvent yourself!” 

This phrase is advice Expat Spouses (partners of expats) often hear when they cannot find a job in Switzerland. You are a typical Gen X professional in New York, London, Frankfurt, or Mumbai. You have a career image stamped on yourself. Telling you to reinvent yourself is like saying “Why don’t you just run a marathon after you just recovered from COVID-19.”

At parties, you say “I’m a Senior Consultant / Director / Lawyer / Doctor / Scientist” and with that, you talk about the pleasure of long-distance travel in times of terrorism or you mention that your partner is away too often and that the kids know the nanny better than their parents, or you explain that you never get to the city because you feel that childcare is too expensive and you rather stay at home than trusting your kids to another person.

Your professional reputation has fueled your ego and you did everything to improve it. You attended courses, webinars, conferences, networking events and you read everything you could about the topic on your commute to work. Not to mention that you had a routine of ensuring that your social media profiles reflected your success only and you ensured your name was published at least once a year.

Then out of the blue (or even because you were following a long-term idea), your spouse gets a job offer in Basel, Switzerland or your job is outsourced to Pune, India. After the initial excitement or shock, you start to consider what a career change means for you right now. You might even consult blogs and books on the matter. From one day to the next, you worry about your branding as a professional. And you might even notice that you don’t really know what you want.

It is not so easy to find out what you want so I recommend you work with a career coach to develop a vision of your next role and probably a long-term career vision too. What I personally found even harder though is to let go of my old career image. I had acquired a status in HR and in my new roles, I felt like a beginner again.

In our cultural context here in Switzerland we say “Schuster bleib bei Deinen Leisten!”. We are discouraged from changing our chosen career path.

Break in Your new Career Image

We know well that a shoe we have worn for a while is comfortable. A new shoe often feels too tight or too big for us to fill. If you imagine now you have to get out of your patent leather shoe and into a hiking boot that is comparable to the change you are going through.

You need to break your career boot in. You might know already consciously that the hiking boot is more practical, fits better to your personality, and has more value on icy mountain grounds but you still feel the burden of a heavier shoe.

Seven Steps to Let Go (of Anything)

You need to throw your old patent leather shoe into the mental “Altkleidercontainer” (the recycling bank for old clothes and shoes). 

These are seven ideas on how can let go of your old career image and start with a new business idea or career.

If you are looking for further insights you can book a consultation with our team or join one of our programs.

We have been living in a world dominated by political, economic, and environmental uncertainty for many years now. However, the past two years have been particularly exceptional and tough for most of us. The global health crisis caused by Covid-19 has brought the entire planet to its knees. The pandemic impacted all aspects of life and radically changed the way we work. The world of Global Mobility has not been spared. Considering the extent of the impact caused by the pandemic, it doesn’t take a fortune teller to foresee that Global Mobility teams will have to deal with the blow of the crisis in the years to come.

However, it’s not all bad news! We need to think positively and see the good in all situations. For example, the crisis showed that Global Mobility teams continue to be incredibly resilient and are constantly coming up with immediate and particularly creative solutions to face issues that arise overnight. Imagine the difficulty of having to suddenly repatriate an expat (or an expat family) who was temporarily on holiday in a third country and remains stuck there without any other assistance. Or the complexity of finding a quick solution for someone who was about to go on assignment but suddenly had to postpone their departure, despite all their household goods having already been shipped to the host location. The following section will briefly outline the top eight Global Mobility (GM) trends to watch in 2021.

1 – Diversify the Assignment Types in Your Guidelines

A constantly changing and diverse population like today’s requires closer alignment between mobility types and support levels and more flexibility and agility. Since the 1990s, the mobility types have evolved enormously from only having long-term or short-term assignments. In the 2000s, new types of assignments emerged, such as the rotator, the international transfer, the globalist, and the commuter. Then, the 2010s saw the rise of business travelers, international new hires and domestic relocations. In the present decade, we will see the assignment type evolve and diversify further with new possibilities like the “flexpat”, the virtual roles, the contingent workers, remote working, and other future mobility options we haven’t thought about. Predictably, there will be more variety in the range of mobility locations as well. The “global approach,” which Global Mobility has seen increasing over time, will become the leading type of move. 

Even though Long-Term Assignments (LTAs) remain an important and widely used relocation model, it is also true that the deployment of shorter and more flexible approaches, such as Short-Term Assignments (STAs), business trips, immersive experiences, and commuter models, are constantly gaining traction (Deloitte, 2019). The Global Assignment Policies and Practices Survey from KPMG (2020) confirm the same trend, with survey participants expecting to rely the upcoming five years more on STAs (46%), Commuter (52%), and Permanent Transfers (52%). On the other hand, 44% of respondents expect a reduction in the use of traditional LTAs, and 42% believe that it will remain the same. The diversification of assignment types directly brings us to the next trend; the need for flexibility. 

2 – Become More Flexible in Dealing With the Needs of a Diverse Workforce

Flexibility has dominated HR headlines for several years. It continues to be a trending topic, driven by several factors such as a constantly changing expat population and assignment types, employee expectations, modern technologies, and tools. This trend has also been driven lately by the unexpected global halt caused by the COVID-19 pandemic, as it has been a severe stress test of flexible policies and has raised essential questions in the flexibility debate (Mercer, 2021a). 

For a GM program to be successful, it needs to work well both for the organization and the expats. But having a policy both flexible and defined enough to be used as the foundation for any mobility scenario is a big challenge even for the most evolved GM programs, as data from Mercer’s 2019 Flexible Mobility Policies Survey report.

The expat population is changing. Nowadays, a more diverse population than ever is embarking on International Assignments. Employees are more diverse in cultural backgrounds, family situation, age, gender, etc. It is impossible to address all the needs of these various groups in a one-size-fits-all policy.

A more diverse workforce equals a larger variety of individual assignees’ expectations, with the result that a proposition might be very attractive for one employee while not being appealing at all for another. This is clearly pinpointed by the 2018 How Global Mobility is Responding to New Dilemmas Survey: expectations from millennial generation employees are impacting mobility programs for 43% of surveyed companies, while the aging workforce has 36% of companies re-evaluating their program policies.

The need for flexibility is clear, and organizations have come to understand its importance as 65% of respondents of the AIRINC Mobility Outlook Survey 2021 (MOS) believe that demand for flexibility from the business will increase. Furthermore, 33% of respondents state that increasing flexibility within policies is their top priority to focus on in the next couple of years. The survey also shows that the number of policies that companies support increased each year, with an average amount of 4.5 policies in 2017 to 6.2 in 2021. 

Flexibility is needed to cater to individual needs. According to the Mercer 2019 Flexible Mobility Policies Survey, the most popular policy elements for which the participants introduced flexibility are family-related: housing, spousal support, child education, and home leave tickets are all items that can help improve the Expat Experience while on assignment.

However, with the crisis, the importance of duty of care over excessive flexibility was acknowledged: policies should not be made flexible if they are essential for the wellbeing of employees. Flexible policies have prepared some companies to deal more efficiently with urgent repatriations and unforeseen mobility scenarios. Other companies adopting flexible policies have found them inapplicable and inappropriate in the context of urgency. 

3 – Expect more Balance in Dual-Career Expat Couples 

Dual-Career Expat couples have been a topic in GM for the past years. The 2017 Worldwide Survey of International Assignment Policies & Practices (WIAPP) survey report pinpointed dual-career/family-related issues and cost as the main barriers to mobility. Similarly, the expected advantages of a flexible mobility program were also closely related to these issues. Also, the report published by Crown (2019) highlights the same problem. But if this is not a new phenomenon, why is it considered a trend to watch in 2021?

Because nowadays many more households, globally, rely on two salaries. This means that when an employee is asked to take on an international assignment, the economic impact on the family is more significant than it used to be. Consequently, an increasing number of companies are struggling with the challenges posed by the dual-career demographic and are in search of creative solutions. According to the report published by Crown in 2020, dual-career couples are more the norm, and often the accompanying partner has left a career for the move. Interestingly, research also shows that often, the expat partner has the most challenging time adjusting. Lack of spousal/partner career support is, according to the latest AIRINC MOS (2021), even among the top five reasons why assignments fail. 

To deal with the dual-career factor, companies have put in place several strategies. Many have put in place policies to support split families, offering more frequent home leave. However, this is generally limited to 12-24 months, after which the employee runs a higher risk of suffering from burnout with a negative impact on work productivity as well. Another solution is the increase of commuter assignments, especially across the EU, where distances are limited. The downside of this could be that the commuter status will impact the employee and their family and the team’s morale in the home and host location after some time. Another strategy, the one for which we advocate, is putting Expat Spouse support at the core of GM policies. The most standard support comes in the form of reimbursements for job search assistance, professional affiliations, and credential maintenance.

4 – Facilitate and Organize “Virtual Assignments”

The first trend highlighting the continuous diversification of GM also encompasses a higher number of Virtual Assignments. Differently than managers who oversee a region or frequent Business Travelers who might occasionally be involved in operations abroad from remote, a virtual assignee does remotely the same job as an assignee who has relocated to the host country. Virtual Assignments have been the breakout topic since the pandemic (Crown, 2021). The COVID-19 crisis is changing all the debate around the possibilities of working from home and Virtual Assignments. Never in history have so many employees worked remotely to guarantee essential business continuity. Virtual Assignments also raise a lot of new questions. 

Virtual mobility does not necessarily imply that employees remain in the home country while being responsible for operations in other locations. It allows expats to ‘’work from anywhere’’, meaning that employees can also work in a third country of choice (not the home country or the location benefiting from the task performed). This possibility enables expats to become digital nomads as they are no longer bound to a specific location. Implementing a more significant number of Virtual Assignments also means acknowledging and accepting that working arrangements are changing fast in response to technology, generational changes, and sudden business disruptions. 

Of course, there are limits to this as well. The most obvious of which is that not all jobs can be performed remotely, which is also one of the reasons why virtual mobility will not replace traditional mobility. Tax and compliance issues can pose a risk too. The company having no existing operations and not wishing to have a permanent establishment in the location where the employee would like to be based is another possible barrier to Virtual Assignments. Some organizations are also concerned that Virtual Assignments could hinder company culture and teamwork, with the risk for the employee to feel like a perpetual outsider. The final point worth considering is that cost saving is not necessarily automatic. In some cases, the assignee wants to live in a high-cost country where sending them will cost the company much more (Mercer, 2021b). 

It is now easier to see how the popularity of virtual mobility is closely related to the increase of a more dispersed international workforce. As companies upgrade their technology and become more agile, they could decide to assign projects and tasks to mobile people rather than moving defined jobs as such. In other words, instead of trying to fit assignees into predefined boxes, the aim is to manage a diverse workforce in a more fluid and coordinated way (Mercer, 2021d). 

Moving jobs to people instead of moving people to jobs will not substitute the traditional way of thinking GM, but it is one more tool companies can use in their global operations. We live in an era where recruitment is not limited by geography, and hiring can occur in any global location to fill open positions. As organizations gradually embrace best practices to manage a distributed international workforce, it will be essential for Global Mobility teams to adapt to a new way of thinking and learn to implement Virtual Assignments successfully. 

5 – Expand Your Skills and Become More Agile 

According to the Cambridge Dictionary, multi-skilling is “the practice of training employees to do several different things, or of using employees who can do several different things,” or, in other words, the ability to master a wide range of skills relevant for different types of functions and jobs. Research from Hershbein and Khan (2018) provides broad-based evidence of how firms demand even more upskilling from workers when the local economy suffers a recession. Thus, this practice will likely be even more helpful in the aftermath of the crisis, when more agility is required in all business areas. 

The “future of work” (#FoW) is skill-driven, and the expansion of the gig economy brings proof to the statement. Since organizations are becoming flattered and more digital, corporate positions or job titles will not matter as much as skills and the capacity to update and renew these skills. Mercer listed a series of skills that GM professionals should acquire to thrive under these conditions. Below is a summary. 

Now more than ever, global mobility teams are asked to be advisers to the business and help anticipate risks and compliance issues. Mobility professionals should function as bridges between departments and geographies and serve as facilitators to coordinate arising matters. One possibility is that the mobility functions will be gradually more oriented towards consultancy. In one sentence, Global Mobility teams need to master compliance issues.

Ensuring that the basics are in place in terms of metrics and cost tracking will be essential, but what will make a difference for HR professionals is turning the results of newly developed metrics into concrete suggestions to improve people management.

It is also fundamental that mobility professionals speak the same language as general management and finance departments, linking mobility with compelling business cases.

Another crucial point Global Mobility teams need to bring to the top of their agendas is developing the ability to be good storytellers. Explaining the bigger story behind talent mobility and to what extent employees’ tasks relate (even distantly) to the overall economy and the society’s well-being is a differentiator. Storytelling is also about clearly summarizing the mobility program policy’s main principles or what the very mobility program entails. 

Today we live in an unprecedented abundance of information. The crucial issue is determining which data are true and relevant and interpreting them to draw appropriate conclusions for the business. GM professionals also have a role to play in the digitalization of companies. They need to familiarize themselves with the concepts and technologies revolving around AI and develop statistical and technology literacy.

Now that companies diversify more and more their compensation approaches, GM professionals need to dig deeper into Expat base pay, benefits, short-term and long-term incentives to have a more comprehensive financial understanding of the implications of an international move. It’s time to broaden reward skills. 

6 – Consider Adding “Human Touch” 

The days when careers were only about moving up the ladder are forgone. Nowadays, it’s about moving across the structure and the expat experience (KPMG, 2021). For employees, this results in a heightened focus on wellbeing, development, and recognition. At the same time, expats have started perceiving the mobility experience differently: They once used to see compensation as the primary incentive for global relocations but now tend to value providing validation on both a personal and professional level. Nowadays, the global workforce is attracted and motivated by a more personalized, agile, and holistic experience. Therefore, adding the human touch is needed which predictably results in a better relationship between employees and employers.

Employers picked up this trend and refer to it as improving “employee experience.” 47% of respondents of the AIRINC MOS 2021 mentioned this as a top priority to focus on in the upcoming years. However, it would be unfair to deny that it is too often difficult to prioritize employee experience if teams are too busy focusing on the many operational aspects of the mobility program. A well-designed human-centric global mobility program does not simply consider individual employee needs but also considers all the people involved. 

If you wish to embrace the human touch in your global mobility program, you successfully should focus on the following four core aspects:

• Operational Support. Structure of operations and satisfaction with external vendors.
• Financial Welfare. Rewards, benefits, and other types of support provided to the employee. 
• Professional Engagement. Successful integration into the host location and career progression.
• Expat well-being. Employee resilience and focus outside of work life.

The COVID-19 crisis has particularly highlighted the very last aspect of the above list, expat well-being. According to Deloitte’s 2020 Global Human Capital Trends, 80% of the respondents identified well-being as an important priority for their organization’s success over the next 12-18 months, making it this year’s top trend. Yet, only 12% feel “very ready” to address this issue, showing a clear “readiness gap.” Expat well-being does not stop at healthcare considerations and should not only be prioritized during emergencies. Expat well-being should also entail social, emotional, and financial aspects. Those are natural aspects in which highly mobile employees are automatically more at risk. Factors such as stress, mental health, family and financial issues, and demotivation or failed assignments should put the mobility team on full alert. We need to get back to providing a service that is essentially a human experience. Especially, to improve the expat’s well-being it is extremely important that they have contact with people from inside and outside the company to which they can talk to. 

Undoubtedly, the current crisis pushes companies to accelerate their strategies to ameliorate expat well-being, potentially enabling a better work-life balance. There are plenty of good reasons to make investments to improve well-being: Burnout impacts employee retention, employees with higher well-being are more likely to feel engaged at work and recommend their organizations, and to some extent, well-being drives organizational performance (Deloitte, 2020).

7 – Deal with Harder Immigration Compliance 

Even before this global pandemic, the waiting time organizations had to face before holding all the authorizations required for an employee to travel abroad for business was becoming increasingly longer. The quicker visa to obtain, that for short-term business travels, are not intended for productive work or long-term assignments. Many countries are enforcing measures more actively against illegal employment. A growing number of employees have to pay pricey fines, and some even undergo criminal punishments. 

Problems only increase when the employee is accompanied by their spouse who travels on a holiday visa and then tries to find a job in the new host country or get a local driver’s license. 

Undoubtedly, the unexpected crisis caused by the widespread presence of COVID-19 has made immigration compliance and timelines for assignments even more complicated for organizations wanting to send their employees abroad, repatriate or transfer them to a third country. Also, companies might be losing key talent now that the job market is picking up if they had to wait for their assignments, sitting on packed suitcases for more than a year.

In a world where business travel, secondments, and overseas relocations are routine, the resulting level of disruption caused by the restrictions on movement that governments set in place to combat the spread of the pandemic is unprecedented. With companies working hard to prioritize their staff’s well-being, another whole set of legal challenges arise. In such a rapidly changing scenario, some mobile employees might remain stranded in their host country or a transit country or even risk overstaying their visas. Some of the measures that governments around the world are enacting are temporary, but others could have a more negative effect on business in the near future. 

1. Entry restrictions and an increased number of admission criteria for citizens of certain countries, including bans on some high-risk locations.
2. Heightened eligibility criteria and application requirements where visas are issued, including suspension of visa waiver agreements and more detailed document requirements for new applications.
3. Longer lead times for applications and discrimination in the selection leading to class systems of vaccinated versus non-vaccinated applicants.

8 – Embrace Digital Innovation

In the past 24 months, many organizations have focused on digitization (moving to more digital formats) and digitalization (strategically shifting to digital processes and activities) of the mobility function. Many consider technological breakouts to be a megatrend. One of the biggest challenges is to incorporate technology into the business in a way that adds value to the company and its employees. One positive example of digitalization is reporting assignees through an intuitive HR system and tracking assignees through security apps such as the International SOS assistance app.

Companies’ level of ‘digital engagement’ depends on how “digitally mature” their global mobility programs already are. Some might be just ‘exploring digital,’ using robotics to carry out simple and repetitive tasks, while others might be already ‘becoming digital’ with a formal digital strategy set in place. 

Mobility functions are already experiencing success where automation is implemented to perform tasks that humans would generally be assigned, such as ending routine emails or copying and pasting information from public or private sources. In turn, workers are given higher-value tasks for the benefit of the mobility function. By adopting and introducing those techniques into existing processes, GM teams will focus on diminishing costs, increasing productivity by improving operational efficiency, and retaining talent. Some of the latest HR systems like Success Factors or Workday offer basic workflow functions for international assignments but cannot yet run the full process with all the external vendors involved. Data needs to be shifted from the HR System to the vendor platform but an integrated solution has to be found to do this efficiently while still respecting GDPR and Data Security.

Robotic Process Automation (RPA) technology is another interesting use of AI in the field. It is already being used to speed up administrative/transactional processes in mobility functions. Equally important is that automation can also reveal itself as crucial in reducing hierarchical thinking. If you want to read more about this topic then this article on our blog might be of interest to you. 

Core office technologies such as telephone, word processing platforms, and email have already evolved to expand connected and collaborative working possibilities. Expats can now access the latest information, join video conferences, share and work on the same documents or workspace at their convenience, from a device and location of their choice. It is a great aid tool for managing assignee package creation. It makes it possible for Global Mobility teams to stay in close communication with their assignees abroad. 

As for Augmented and Virtual Reality (AR and VR, respectively), they can transform the employee’s onboarding experience into the organization or allow them to meet and collaborate with colleagues in other countries. Additionally, it can be used to virtually recreate cities to immerse oneself in the new environment before deciding to move there.

According to Deloitte (2020), AI is projected to add US$13 trillion to the global economy over the next decade. It is no wonder that in their 2020 Global Human Capital Trends Survey, 70% of the respondents stated that their organizations were exploring or using AI to some extent. At this point, the question is not whether AI will affect jobs but rather how. Reducing costs by replacing the workforce with AI technology is not the only viable path: 60% of the surveyed organizations use AI to assist rather than replace workers. 

By using smart devices to predict, detect and prevent risks in moving people around the globe, AI is already helping organizations go beyond traditional ways of managing the global workforce. With the massive increase of the data volume available to organizations, the emergence of advanced AI-based algorithms, and the growing availability of data scientists, systems become increasingly self-managing and potentially self-defending against risks.  

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References 

Websites

Dictionary.cambridge.org. (2021). multi-skilling. Retrieved 18 August 2021, from https://dictionary.cambridge.org/dictionary/english/multi-skilling

Mercer. (2021a). Global mobility policy flexibility in practice. Retrieved 18 August 2021, from https://mobilityexchange.mercer.com/Insights/article/Global-mobility-policy-flexibility-in-practice 

Mercer. (2021b).The rise of virtual assignments. (2021). Retrieved 18 August 2021, from https://mobilityexchange.mercer.com/insights/article/the-rise-of-virtual-assignments 

Mercer. (2021c). Upskilling the Mobility Function. (2021). Retrieved 18 August 2021, from https://mobilityexchange.mercer.com/Insights/article/Upskilling-the-Mobility-Function 

Mercer. (2021d). Talent mobility: looking ahead. Retrieved 18 August 2021, from https://mobilityexchange.mercer.com/Insights/article/Talent-mobility-looking-ahead

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AIRINC. (2021). Mobility Outlook Survey 2021. Retrieved 18 August 2021, from https://www.air-inc.com/mobility-outlook-survey-2021/ 

Crown. (2019). Big Global Mobility Trends to Watch in 2019. Retrieved 18 August 2021, from https://www.crownworldmobility.com/wp-content/uploads/2019/02/Big-global-mobility-trends-to-watch-in-2019-CWM.pdf 

Crown. (2020). Big Global Mobility Trends to Watch in 2020. Retrieved 18 August 2021, from https://www.crownworldmobility.com/wp-content/uploads/2020/03/Big-global-mobility-trends-to-watch-in-2020-CWM.pdf 

Crown. (2021). Five Standout Talent Mobility Trends for 2021. Retrieved 18 August 2021, from  https://www.crownworldmobility.com/wp-content/uploads/2021/03/5-standout-talent-mobility-trends-for-2021_digital-CWM.pdf

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Deloitte. (2020). ‘2020 Deloitte Global Human Capital Trends Survey. Deloitte.’ Deloitte. Retrieved 18 August 2021, from https://www2.deloitte.com/content/dam/insights/us/articles/us43244_human-capital-trends-2020/us43244_human-capital-trends-2020/di_hc-trends-2020.pdf 

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KPMG. (2021). Global Mobility Forecast: Trends in Risk, Talent and Digital. Retrieved 18 August 2021, from https://assets.kpmg/content/dam/kpmg/xx/pdf/2021/02/global-mobility-forecast-trends-in-risk-talent-and-digital.pdf 

Mercer. (2017). Worldwide Survey of International Assignment Policies and Practices. Retrieved 18 August 2021, from https://www.imercer.com/products/WorldwideIAPP

Mercer, (2019). ‘Flexible Mobility Policies Survey.’ Retrieved 18 August 2021, from https://mobilityexchange.mercer.com/solutions/data-solutions/policies-and-practices-surveys/flexible-mobility-policies-survey

PWC. (2016). Women of the World: Aligning Gender Diversity and International Mobility in Financial Services. Retrieved 18 August 2021, from https://www.pwc.com/gx/en/industries/financial-services/assets/women-of-the-world.pdf 

More Sources

Baker McKenzie. (2019). ‘The Global Employer: Focus on Global Immigration and Mobility.’ Baker McKenzie. Retrieved May 27, 2020, from https://www.bakermckenzie.com/en-/media/files/insight/publications/2019/12/the-global-employer-focus-on-immigration-and-mobility_041219.pdf

Beck, P., Eisenhut, P. and Thomas, L. (2018). „Fokus Arbeitsmarkt: Fit für die Zukunft?”. Stiftung Zukunft.li. Retrieved 28 May, 2020, from https://www.stiftungzukunft.li/publikationen/fokus-arbeitsmart-fit-fuer-die-zukunft 

Bertolino, M. (2020). ‘How Covid-19 Is Disrupting Immigration Policies and Worker Mobility: A Tracker’. Ernst and Young. Retrieved May 28, 2020, from https://www.ey.com/en_gl/tax/how-covid-19-is-disrupting-immigration-policies-and-worker-mobility-a-tracker

Hauri, D., Eisenhut, P., and Lorenz T. (2016). „Knacknuss Wachstum und Zuwanderung: Hintergründe und Zusammenhänge.” Stiftung Zukunft.li. Retrieved 28 May, 2020, from Knacknuss Wachstum und Zuwanderung

Robb, A., Frewin, K. and Jagger, P. (2017a). ‘Global Workforce Trends: The Impact of the Digital Age on Global Mobility.’ Deloitte. https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/tax/deloitte-uk-global-mobility-trends-latest.PDF 

Robb, A., Frewin, K. and Jagger, P. (2017b). ‘Global Workforce : Digital Innovation in Mobility.’ Deloitte. https://www2.deloitte.com/content/dam/Deloitte/fi/Documents/tax/deloitte-uk-digital-innovation-in-mobility.pd