International HR Adviser Winter 2021 by International HR Adviser

WINTER 2021/22

ISSUE 87 FREE SUBSCRIPTION OFFER INSIDE

International HR Adviser The Leading Magazine For International HR Professionals Worldwide

FEATURES INCLUDE: Revisiting The A-Z Of Travel And Immigration Global Tax Update • Alternative Employment Structures Experiencing The Future Of Work In Real-Time: Are You Evolving? Hiring in 2022 • 5 Cybersecurity Myths That Are Compromising Your Data The Top 10 Best And Worst Cities For Expatriates To Live In • Time To Stop Talking, Let's Grab The Seat At The Table HR Trends For 2022 • Why Every HR Professional Needs To Be Aware Of The Changes The Sustainability Agenda Will Bring ADVISORY PANEL FOR THIS ISSUE:

CONTENTS

In This Issue 3

Experiencing The Future Of Work In Real-Time: Are You Evolving? Danny Taggart, Deloitte LLP

Global Tax Update Andrew Bailey, BDO LLP

Alternative Employment Structures Andrew Bailey, BDO LLP

Time To Stop Talking, Let's Grab The Seat At The Table Holly Maria Creed, HMC Consultancy Group

Revisiting The A-Z Of Travel And Immigration Mark Chong, Santa Fe

The Top 10 Best And Worst Cities For Expatriates To Live In Internations

HR Trends For 2022 Melanie Robinson, Senior HR Director, ADP

The Future Of Corporate Knowledge Management Development After COVID-19 Mostafa Sayyadi, The Change Leader Consulting Inc.

Why Every HR Professional Needs To Be Aware Of The Changes The Sustainability Agenda Will Bring Neil Bradbrook, Managing Director, Ahead Business Consulting

Hiring in 2022: What Changed In 2021, And What To Expect In The Year Ahead Aleksandra Sulimko, Chief Human Resource Officer, TheSoul Publishing

5 Cybersecurity Myths That Are Compromising Your Data Barry O'Donnell, TSG

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Helen Elliott • Publisher • T: +44 (0) 20 8661 0186 • E: helen@internationalhradviser.com Ben Everson • T: +44 (0) 7921 694823 • E: ben@internationalhradviser.com International HR Adviser, PO Box 921, Sutton, SM1 2WB, UK Cover Design by Chris Duggan In Loving Memory of Assunta Mondello While every effort has been made to ensure accuracy of information contained in this issue of “International HR Adviser”, the publishers and Directors of Inkspell Ltd cannot accept responsibility for errors or omissions. Neither the publishers of “International HR Adviser” nor any third parties who provide information for “Expatriate Adviser” magazine, shall have any responsibility for or be liable in respect of the content or the accuracy of the information so provided, or for any errors or omissions therein. “International HR Adviser” does not endorse any products, services or company listings featured in this issue.

INTERNATIONAL HR STRATEGY

Experiencing The Future Of Work In Real-Time: Are You Evolving? Despite the many challenges and hardships the pandemic has inflicted upon us, it has also been an accelerant for many aspects of worklife associated with the Future of Work, providing an unprecedented, possibly once in a generation, opportunity to re-think work itself and how and where we carry it out. Thus, the Future of Work is still a critical agenda item for future-focused organisations, and we wanted to centre on this as a theme when developing our recent Deloitte GES global (virtual) client conference, which brought together clients, guests and Deloitte teams from across the world. Having also used the Future of Work as the theme for our previous year’s conference, we wanted to differentiate this year’s approach. The advent of the pandemic seemingly catapulted us into a future world of work overnight. Given the collective experience of the last two years we developed a curriculum very much grounded in the ‘here and now’, reflecting a focus on the practical challenges, priorities and opportunities that organisations are facing as they experience the Future of Work in real-time. Organisations have reassessed priorities, adjusted approaches and processes. Employers have adapted workforce strategies and policies, developed new management techniques and communication channels. Employees in turn have assimilated and developed new skills and capabilities, embraced remote communication and working, and even created and nurtured relationships in a virtual world. In the face of these shifting circumstances organisations have evolved and will continue to evolve. The pandemic has been a catalyst in setting in motion workforce changes that might have otherwise taken years or even decades to accomplish. During the conference, attendees provided their perspectives and debated topics across four broad ‘evolve focuses’ Talent, Reward, Work and Governance. Naturally, each of these evolve themes inter-relate, and certainly some of the constituent discussion topics, despite being categorised under one heading, have relevance to more than one focus area.

Some, for example, Remote Working, have aspects which satisfy each focus area. Key topic areas emerged based upon our research and insight, as well as organisational viewpoints on practical priorities, as workforce strategies evolve. These topics included the following:

evolve:Talent

• In light of a disrupted talent market and the desire of organisations to optimally manage the workforce, it is clear that there is an increased demand for talent, whilst organisations are also confronting the challenge of ‘the great resignation’, leaning into it to understand the positive impact it can have on attracting, securing and retaining talent, as well as creating more flexibility in jobs. • It has been argued that the pandemic has further exposed systemic inequities and biases. This has, however, produced a positive counter-reaction from leaders around the world to drive change through their organisations and industries. Making

Diversity, Equity and Inclusion (DEI) a central tenent of organisational purpose, which is critical to any successful talent strategy. • Employee physical and mental well-being has been highlighted many times during the pandemic and is a critical priority for any responsible employer. Recognising the inextricable link between work and life balance, and health, safety, and well-being, has led more organisations to think deeply about ways in which they can design wellbeing into work itself, so that both workers and the organisation can thrive.

evolve:Reward

• In reaction to the shifting business environment, accelerated by COVID-19, many employers have had to review and adapt their reward strategies, policies and working practices to ensure they are truly equitable and responsible. Organisations are striving to attract and retain top talent in a very competitive world, thus aligning corporate responsibility and equitable reward has never been more important.

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• In addition to delivering equitable reward, effective and meaningful employee engagement is critical for all employers. With the advent of remote/virtual working, as well as information overload, cutting through ‘white noise’ and ensuring healthy communication and engagement can be a critical business challenge. Global and local trends in employee engagement continue to evolve as the working landscape continues to change. • Over the last 20 months or so, organisations have experienced unprecedented change, which has in turn impacted corporate actions. Some have needed to raise capital within short timeframes, some have purchased new entities, and others have sold companies or divested divisions. All these corporate changes have a direct or indirect impact on employees; one particular aspect being how employers manage their incentive plans in light of these actions.

Over the last 20 months or so, organisations have experienced unprecedented change, which has in turn impacted corporate actions evolve:Governance

• As workforces becomes more distributed and virtual, old strategies and tactics for deploying talent may not necessarily remain optimal. With the mobility function’s remit often expanding to cover arrangements such as virtual assignments, remote work, and business travel, it is increasingly important that collaboration between mobility and the tax function is cohesive and effective, not only to manage corporate risk, but also to align and drive business Future of Work objectives. • Navigating the complexities of an everchanging immigration landscape with regulatory restrictions in a post-COVID-19 world is an ongoing ‘new normal’ challenge. Immigration is at the centre of talent

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deployment and business response strategies and is essential to the recovery of global growth. Traditional geographic barriers no longer apply in certain industries, and organisations are having to re-evaluate how and where employees need to work. • Many tax authorities around the world continue to apply increased scrutiny on employment tax compliance and many payroll functions are increasingly required to participate in internal audit reviews. It is critical therefore, that the payroll function understands the requirements and expectations of internal audits, and have optimised governance, processes and approach.

Virtually every employee has experienced some form of remote working during the pandemic, through necessity or choice evolve:Work

• Virtually every employee has experienced some form of remote working during the pandemic, through necessity or choice. As organisations continue to evolve their ’new normal‘, they have had to swiftly adapt, develop and deliver successful and long-lasting remote working strategies, balancing employee support as well as ensuring employer compliance. • As the global workforce adjusts to postpandemic ways of working and travel restrictions potentially start to lift, organisations are beginning to evaluate what sustainability gains were achieved during the COVID-19 pandemic. Beyond that, the wider challenge for the HR/talent functions is how best to support their organisation in maintaining and building on those gains and truly embedding Environmental, Social and Governance (ESG) into their workforce strategy. • The recent disruptions caused by the pandemic have escalated changes to work

and the workplace, which are now required to evolve at a much faster pace than many organisations anticipated. Looking forward, employers are now evaluating where they sit on the ‘return to work spectrum’, how workforce philosophies may change going forward, and what that means for re-architecting work and the workplace, balancing both business need and talent demands for the short and longer-term. Hopefully some or all of these issues will resonate as you continue your own workforce evolution. We will return to focus on some of these topics in more detail in future International HR Adviser articles, but if your organisation has a particular challenge referenced above which you would like to discuss, please do get in touch. In the meantime, embrace the challenges that lie ahead, and continue to evolve.

DANNY TAGGART

Director, Global Employer Services Deloitte LLP 2 New Street Square, London, EC4A 3BZ D: +44 (0)20 7007 1447 dtaggart@deloitte.co.uk www.deloitte.co.uk/globalworkforce Danny is a Director in the Deloitte Global Employer Services (GES) practice, working with clients across EMEA, helping them realise the benefits of digital and related services, developing practical approaches to support and enhance service delivery to their global workforces. As part of the Clients & Industries team Danny also acts as Conference Director for the Deloitte GES Global Client Conference, responsible for conference curation, approach and delivery. If you would like to know more about Deloitte Global Employer Services, please do make contact. www.deloitte.co.uk/globalworkforce

GLOBAL TAXATION

Global Tax Update BELGIUM

Revision Of The Current Belgian Special Tax Regime The Belgian Government has announced a revision of the current Belgian Special Tax Regime for Foreign Executives. In general, the intention is to align the Belgian special regime with the Dutch 30%rule. Moreover, the current benefits (i.e. the tax free nature of certain allowances and the so called travel exclusion) would no longer apply and access to the special regime is expected to be limited to certain executives and specialists. Although no official texts are yet available, it seems that the most significant amendments will most likely be: • Residency status: beneficiaries of the new special tax regime will most likely be considered resident tax payers (vs. nonresident under the current system) • Duration: the expectation is that the benefits of the new special tax regime will be limited in time • Salary threshold: a minimum salary level is expected to be introduced in order to be eligible for the new special tax status • Tax free allowances, travel exclusion: these would be abolished and replaced by a lump-sum exemption from taxation of 30% of the remuneration (possibly with a ceiling). At present however, nothing has been confirmed by the Belgian Government. There is merely an intention to revise the current regime which finds its origin in the Administrative Circular of 1983. Therefore, no information is currently available with respect to the following important matters such as the date of entry into force of this new special tax regime and the introduction of a possible transition or phase-out period. BDO Comment Once further details are known a review should be undertaken of the direct impacts to those individuals under the existing Special Tax Regime and the eligibility requirements for future intended assignees into Belgium for the revised regime.

DENMARK

Danish Ruling On Potential Permanent Establishment (PE) For Sales Rep Working From Home (WFH) In Denmark But Focused On Sweden/Finland & Norway Sales The Danish tax authority has issued a ruling refusing to confirm no PE exists where a foreign company employed a sales rep, working from his home in Denmark, carrying

out sales activities for customers in Sweden, Finland and Norway. Emphasis was placed on the fact the employee had a central sales function with an objective of developing the Nordic market and therefore the employees geographical location in the region had an independent value – irrespective of the fact he was not focused on customers in Denmark. This meant that the fact that the employee performed part of his work from Denmark was not solely due to private circumstances. He was considered to be carrying out an income generating activity (sales) from his home office in Denmark such that there could be a Fixed Place Of Business. The tax authority did not focus on the fact there was no Danish source revenue. Instead the tax authority focused on the economic value to the company of having any employee in that geographic location (i.e. the Nordics). This serves as a clear warning to think more widely than simply giving a risk assessment on whether local revenues are or aren’t being generated. It also appears that tax authorities are increasingly focused on differentiating the business drivers for the employee location from the personal/private circumstances. While it is helpful to have the example that regard would be taken to location choice being purely for personal circumstances, differentiating when the location might have an independent value, especially considering regions, not just countries, will be more complex. Also of interest in the decision: • The individual was estimated to spend 60% to 70% of his time working away from his home office so “on the road” and only 40% - 30% in Denmark – in other words the fact that the individual spent more time out of the country on the road than his home was not an extenuating factor • Reference was made to OECD guidance stating that a home could be regarded as available to the enterprise where the enterprise requires the person to carry out the business there by not providing an office in the employing territory (para 18) versus where the enterprise makes an office available in the employing territory state and does not require the employee to work from home (para 19) – this shows the importance of the employment contract in considering what has become an issue of even more interest given the focus on flexi-working post covid. BDO Comment This ruling demonstrates that authorities will delve into circumstances in detail

to determine whether a PE exists. Tax assumptions made regarding individuals working remotely and/or generally working across borders may not stand up to such scrutiny, and careful checking of the exact circumstances and potential risks is required in each situation.

NETHERLANDS

Tax Treatment Of Employee Stock Options In September 2021, the Dutch government published its tax proposals for 2022 and onwards and some other tax measures, some of which had already been announced. The following affects employers and their employees directly. Based on current legislation, a stock option is taxed when such right is exercised. A problem that arises, especially in cases of start-ups and scale-ups, is that the owners of the option rights do not always have sufficient funds available to pay the tax at the moment of exercising the options. This makes it less attractive to use share option rights as a form of remuneration. Stock option rights are a useful instrument to attract and keep personnel, especially for start-ups and scale-ups. With the proposed legislation, taxation is shifted from the moment of exercising the option to the moment when the shares obtained as a result of exercising an option become tradeable. In that case, shares can be sold to generate cash to pay tax. The tax is due on the difference between the value of the shares at that moment and the acquisition price. If shares are not immediately tradeable at the moment of exercising the option right, the employee can opt to pay tax on the value of the shares at that moment (provided that the employee has sufficient funds available). This choice has to be made by the employee in writing, ultimately at the moment of exercising the option. The withholding agent should keep this confirmation in its wage tax administration. Further rules may be introduced or specific situations. Especially since the possibilities of trading shares of non-listed entities are usually different from trading shares of listed entities.

Health and Social Care Levy In September 2021, the UK Government announced the creation of a new Health and Social Care Levy which commences from 6 April, 2022. For the 2022/23 tax year, the levy will be implemented by a simple increase

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in the rate of Class 1 NIC (including Class1A and Class 1B paid by employers on employee expenses and benefits) and Class 4 NIC. The increase will be 1.25% for employees, employers and the self-employed, so a total increase of 2.5% in respect of employed workers (split between the employer and employee) and 1.25% for the self-employed. From April 2023, this will be replaced with a new tax - the "Health and Social Care Levy" and will be shown separately on payslips and self-assessment payments. When this takes effect, the 1.25% levy will also apply to those still working above state pension age (who do not pay NIC). Therefore, in 2023/24, NIC rates will return to their current levels. The new levy will apply to the same population and income as Classes 1 and 4 NIC and will be collected via PAYE and self-assessment.

Initial Tax Proposals Released From The US House Ways & Means Committee In September 2021, the US House Ways and Means Committee released draft legislation that proposes a series of tax increases, tax incentives, and tax credits for individuals and corporations. The draft legislation will undergo further changes as it passes through committee markup, and then again as it goes to a vote in the US House and Senate. A number of the proposals will have an impact on high-income individuals, including those individuals currently working abroad. INCREASE IN INDIVIDUAL INCOME TAXES Top Marginal Tax Rate The current top marginal individual income tax rate is 37%. Under the draft legislation, the top marginal rate would increase to 39.6%. The table below compares the income level subject to the current top rate with the income level subject to the proposed top rate based on the Joint Committee on Taxation projection for calendar year 2022. Filing Status

Current Proposed (37%) (39.6%) Married Filing Jointly $646,151 $450,001 Head of Household $538,451 $425,001 Single $538,476 $400,001 Married Filing Separately $323,076 $225,001 The proposal would be effective for taxable years beginning after 31 December 2021. Capital Gains The maximum tax rate on long-term capital gains is currently 20%. The proposed legislation would increase the capital gains rate to 25% and would be effective for sales that occur on or after 13 September 2021. However, the provision does not apply to any sale or exchange of stock executed pursuant to a written binding contract which was in effect on 12 September, 2021, and which is not later materially modified.

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Surcharge on High-Income Individuals A surcharge is currently not imposed on high-income individuals. The proposal would impose a 3% surcharge on individuals with modified adjusted gross income greater than $5 million ($2.5 million for married individuals filing separately). The proposal would be effective for taxable years beginning after 31 December, 2021. Note: To arrive at modified adjusted gross income, the foreign earned income exclusion and foreign housing exclusion/ deduction are required to be added back to adjusted gross income. Foreign Tax Credit Currently, excess foreign tax credits can be carried back one year and carried forward ten years. The proposal would reduce the foreign tax credit carryforward period from ten years to five years and repeal the foreign tax credit carryback. The proposal would be effective for taxable years beginning after 31 December 2021. Estate & Gift Tax For the 2021 tax year, the estate tax basic exclusion amount is $11.7 million. The proposal would accelerate the expiration of the temporary increase in the estate and gift tax exemption amount. For decedents dying and gifts made after 31 December, 2021, the exemption equivalent amount would be $5 million (the estimated amount in 2022 would be $6.02 million, as indexed for inflation). RETIREMENT PLANS Limitations on Annual Contributions Under current law, annual contributions to retirement plans are not limited by the value of the retirement plans owned by a taxpayer. The proposed legislation would prohibit further contributions to a Roth or traditional IRA if the total value of an individual’s applicable retirement accounts exceeds $10 million at the end of the previous taxable year. The limitations apply to those individuals in the proposed 39.6% tax brackets (see table above), and would be effective for taxable years beginning after 31 December, 2021. Rollovers to Roth IRAs Taxpayers who currently exceed existing Roth income limits can make non-deductible contributions to a traditional IRA, and shortly thereafter, convert the non-deductible contribution from the traditional IRA to a Roth IRA. This is known as a “back-door” Roth IRA strategy and the proposal seeks to eliminate this. The proposal would prohibit Roth conversions - from both traditional IRAs and employer-sponsored plans - for individuals with taxable income in the proposed 39.6% tax brackets (see table above). The provision would be effective for taxable years beginning

after 31 December, 2021, and applies to distributions, transfers, and contributions. The Impact Of US State Taxation On Mobile Workers The taxation of telecommuters and nonresident workers varies by state, and can have significant consequences for a mobile worker. As individuals continue to work across multiple locations, it is important to understand the state tax impact of such activity. STATE TAXATION IN THE US General Most US states assess an income tax on wages and other income that an individual earned in the state. State income tax generally funds a state’s budget and is imposed on an individual in addition to Federal income tax. States assess income tax based on residency status, and either assess tax at a flat rate or a progressive rate. A small number of states assess no income tax at all. De Minimis Exceptions Many states tax income earned by a nonresident - an individual who is not a resident of the state and who has its income tax laws applied to such individual - who performs services within their borders, even if the employee works in the state only for one day. Some states, however, have a de minimis threshold of days worked in the state or earnings amount that must be met before nonresidents are subject to income tax in those states. Reciprocity Agreements Some states that border one another have entered into reciprocity agreements with each other. Under these agreements, one of the border states agrees not to tax the wages of the other border state’s residents who work in the other state. As a result, the individual does not need to file a non-resident income tax return with the border state where they are physically performing services. In addition, the employer often does not need to withhold nonresident income taxes from that individual’s wages, even if the resident individual works primarily in the nonresident state. Convenience of the Employer Generally, in the case of non-resident workers, states will tax only income that is earned in the state. However, some states take the position that wages paid to a nonresident worker who regularly works in the non-resident state are subject to income tax if the employee is working outside the state for the worker’s own convenience, rather than as a condition of employment. Under the convenience of the employer rule, for income tax to not be imposed, there must be a direct business benefit to the employer in having the employee working outside the non-resident state.

GLOBAL TAXATION Impact on Teleworkers Employees working remotely are generally subject to the taxation rules of the jurisdiction where they are physically present and regularly performing services. Even though some employees have changed their normal work locations because of the COVID-19 pandemic, many jurisdictions have not changed withholding requirements or income tax filing thresholds based on an employee’s temporary telework location. Therefore, an employee who was previously commuting to a non-resident state for work, and who is now working from home in their resident state, may continue to have tax assessed in the non-resident work state. STATE DISPUTES New Hampshire v. Massachusetts The US Supreme Court recently declined to review New Hampshire’s petition to sue Massachusetts over its taxation of remote workers. The Supreme Court’s involvement would have provided clarification on states’ ability to tax individuals beyond their borders. Under Massachusetts’ current emergency regulation, the state will tax non-residents who worked in the state prior to the pandemic, but who are now working from home in their resident state.

The Court’s decision not to intervene, along with the need for tax revenue, could encourage other states to issue similar teleworker tax policies. The State of New York has been criticised for its non-resident tax policy and has recently broadened the scope of tax audits that target remote workers. FEDERAL LEGISLATION Remote and Mobile Worker Relief Act of 2021 The Remote and Mobile Worker Relief Act of 2021 (US Senate Bill S. 1274), previously introduced in the US Senate as The Remote and Mobile Worker Relief Act of 2020 (US Senate Bill S. 3995), seeks to limit the authority of states to tax certain employment income that is earned from work performed in other states. The legislation would establish a permanent 30-day threshold before an income tax obligation can be enforced by a non-resident state. For the 2020 and 2021 tax years, the threshold is set at 90 days to help ensure that medical professionals and other workers who travelled to support areas impacted by the COVID-19 pandemic, do not face unexpected or increased state income tax bills from these non-resident states. The bill also would allow employers to continue to withhold taxes on wages based on the employee’s pre-pandemic location.

Multi-State Worker Tax Fairness Act of 2021 The Multi-State Worker Tax Fairness Act of 2020 (H.R. 7968) also was recently reintroduced in the US Senate as the MultiState Worker Tax Fairness Act of 2021 (US Senate Bill S. 1887). The bill establishes non-resident taxation based on a worker’s physical presence and prevents a state from assessing an income tax on the compensation earned by an individual who is not physically present in the state. The legislation also ensures that teleworkers and mobile workers are not subject to out-ofstate income taxes. The bill was created in response to Massachusetts’ emergency regulation, which allows the state to continue to tax residents of other states who worked in Massachusetts prior to the pandemic, but who are now working from home in their resident state. BDO Comment The above illustrates the tax challenges remote working brings and the different potential interpretations that may apply for those who work remotely whether within a specific country or across borders. Prepared by BDO LLP. For further information please contact Andrew Bailey on 0207 893 2946 or at andrew.bailey@bdo.co.uk

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Alternative Employment Structures Traditionally individuals working internationally are often employed by either their home country employer entity or the host country employer entity. Alternative methods of employment or access (in the case of non-employment arrangements) have always existed. There has been much discussion throughout the COVID-19 pandemic of alternative working arrangements with a particular focus on international remote working and virtual assignments and these developments will only accelerate as the global war on talent intensifies. We have seen a significant rise in the level of queries regarding the different ways of employing talent in new jurisdictions and locations where the corporate body may not have a presence. In this article we consider a few of the alternative employment arrangements, including some of the opportunities they offer and challenges they present.

Global Employment Companies (GEC)

A Global Employment Company is typically a separate legal entity set up within the existing corporate group structure. It can take many forms/variations and be used in slightly different ways depending on the needs of an organisation, but in its purest form it becomes the legal employment and pay vehicle for a specified group of employees, often individuals working in global roles, career expats, and talent working in locations where the corporate body has no legal entity, and more recently those with international remote working arrangements. Employees may be temporarily seconded but are more usually transferred to or directly employed by the GEC, with the GEC then providing the services of those individuals to other entities within the group structure for client projects and work. The GEC is generally the legal employer of the individual. Typically, a fee will be charged on a costplus model ensuring that the GEC pays the relevant employment costs of the individual employees and has substance in terms of the income and profit it receives based on appropriate transfer pricing principles. A GEC structure can be attractive as it can allow for the standardisation of

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Choosing the location of the GEC entity is one of the initial challenges, with far more emphasis in the current market focused on the available network of tax treaties and reciprocal social security agreements management processes, compensation and benefits package design. It is also an opportunity for a business to tighten up and have only one or an overarching global mobility policy which will assist in limiting exceptions to company policy. Furthermore, it is considered useful to have globally mobile individuals in the one entity to enable robust governance, efficient management and a centralised approach to compliance. A GEC can also ensure fairer comparisons and consistent performance reviews of mobile employees and enables the organisation to be aware of all its global talent and have them under one entity for ready deployment. There is also the benefit of additional buying power for the provision of employee benefits, such as pension and insurances.

Movement into new territories is seen as one of the major advantages of a GEC, with rapid deployment of staff achievable, flexibility in the hiring of new staff possible but the risk of creating Permanent Establishments contained within the one centralised entity. Choosing the location of the GEC entity is one of the initial challenges, with far more emphasis in the current market focused on the available network of tax treaties and reciprocal social security agreements. The economic stability of the location and the availability of local experienced business support staff are also considerations, all of which outweigh the previous focus on lower tax rates that was a feature of GEC structuring in earlier years. It should be noted that the implementation of a GEC structure is complex, requiring the creation of a new business entity, and it can be relatively expensive to establish when properly considering all relevant issues. The GEC should have real substance and staff to run the company and administer and manage all employees. It should not be a ‘brass plate’ entity! Policies will need to be in place and there needs to be consideration of the appropriate staff to be seconded or transferred to the GEC entity for deployment and the relevant communications plan that will be needed within the organisation. It will also require contractual changes of employment, meaning that employment law considerations will need to be addressed, as well as matters such as social security, income tax and pension eligibility reviews for the impacted staff.

Professional Employment Organisations (PEOs)

A Professional Employment Organisation (PEO) is a commonly used term for an HR outsourced solution, unconnected to the corporate body that can handle many elements of the employment relationship including payroll processing, staff onboarding, recruitment and benefits management on behalf of the corporate entity. The term is often used interchangeably with Global Employment Companies or Employers of Record, but there are subtle and important differences between these alternatives. Typically, the PEO will not be the legal employer and will not employ staff on behalf of the corporate entity but will share some of the administration burden and process related to the employment of the staff, offering

TAXATION clients an outsourced HR management solution and a payment vehicle in locations where the corporate body has no legal entity. It is important to note that in the USA, PEO organisations operate a ‘co-employment’ model, which is a format that largely does not exist outside the USA, and the PEO can become a ‘co-employer’ of an individual and be responsible for the legal employment and payroll of the individual with the original employer managing their day-to-day activities. Advantages of use of the outsourced HR function include the availability of a support function being in place when moving into a new territory, freeing up in-house HR resource for other matters, and reductions in the cost of a move into a new territory. The challenges of such an approach are to have a clear understanding of where the responsibility ultimately lies and what is covered by the service offering and whether registering of a legal entity by the corporate body is necessary if using a PEO. Additionally, please note that use of a PEO does not change the need to consider the activities of individuals working for the company in the country and whether a Permanent Establishment exists. There is also the internal company prevailing attitude to be considered. Is senior management going to look upon the movement to a PEO as the outsourcing of normal HR activity and will they have a perception that there is a loss of control over the relevant employees and is this the case? What level of activity is the business planning to undertake in a particular country in the future, and if or when would it make sense to bring such matters/services in-house?

Employers Of Record (EORs)

In any situation it is imperative to understand which entity is the legal employer of the individual. As mentioned above, the Employer of Record (EOR) approach is often used interchangeably with Professional Employment Organisations, but in an EOR relationship the contract of employment would change from being with the original employer to being held by the EOR. The EOR employs the individual on behalf of the corporate body and will manage the elements of the employment relationship mentioned above in reference to the PEO service provision. They will also be responsible for ensuring compliance with local labour laws while the direction of the activity of the individual worker remains with the corporate body. The EOR solution is generally used in circumstances where the corporate body may be testing a marketplace and does not want to commit to opening a branch or subsidiary immediately. The route is also being used for remote workers where the main corporate entity desiring employment of an individual/s, does not have a local country entity.

The EOR takes on the administrative compliance, and as there should be no need for a separate legal entity to be established the lead time for deployment or employment of talent to projects is reduced. As the EOR generally has an existing in-country entity they can typically employ the individual and obtain the relevant work permit/business visa much faster. Additionally, they usually have a payroll established in the country. The relative ease and speed of being able to start operations or employ/pay in another country can make the EOR route very attractive.

The EOR takes on the administrative compliance and as there should be no need for a separate legal entity to be established the lead time for deployment or employment of talent to projects is reduced The challenges of using an EOR are the loss of control over the direct employment relationship and whether that causes any issues with benefit provision, such as access to pension schemes (both state and occupational) and availability of expatriate concessions as the individual is now locally employed. These matters may not be a consideration with remote domestic workers. It will also be important to review any shares and incentive planning that is in place, as eligibility to remain or be in an employee incentive award scheme may not be available where the individual is not directly employed. Additionally, employment via an EOR may be more costly at least initially as the arrangement is often based

on a salary cost-plus basis percentage. After initial access to and set up in the country, costs typically decrease whereas EOR charges may not. Consideration of longerterm business plans for that specific country is recommended, as well as the trigger points for when a direct entity may be preferable. Finally, there is the risk of creation of a Permanent Establishment either through the duties or the presence of the individual in the new jurisdiction. Care should be taken to determine how the potential risk to the corporate body is handled, given that the individuals will be acting on behalf of the corporate and at their instruction, despite the altered employment relationship. This altered employment relationship will generally not shield the corporate body from Permanent Establishment questions/creation and potential corporate tax exposure.

Contractors And The Use Of Personal Service Companies (PSC’s)

A further option for the completion of work projects may be to look outside an employment relationship and hire contractors, providing their services either as a sole trader or through their own limited company - referred to as a Personal Service Company (PSC). A PSC is a limited company usually set up by an individual contractor to provide services to an end client. The contractor is typically the company’s only shareholder. Use of PSC’s has grown due to a tendency for organisations to prefer to work with companies rather than through sole trader arrangements, which may sometimes lead to arguments as to whether an employee/ employer relationship has been formed with its associated obligations in terms of tax, statutory entitlements and otherwise. It is important to note however, that hiring contractors operating through a PSC does not remove the obligation for an organisation to make a status determination, and in doing so, decide whether PAYE and NIC should be deducted from the payment for those services. HMRC legislation in this area (colloquially known as ‘IR35’) is designed to ensure that contractors operating through a PSC are not ‘disguised employees’ and can be proven to be truly ‘self-employed’. Initially the IR35 legislation was targeted at the individual contractor who had the obligation to selfassess whether the relationship with their end client was one where, had they not operated through a PSC, it would have amounted to an employment. If they concluded that it would, the PSC was then required to operate PAYE/NIC. However, since 6 April, 2021 for large and medium sized businesses (or 6 April, 2017 for public sector clients) that obligation to determine whether the underlying nature of the engagement is one of ‘disguised employment’ and the responsibility

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for operating PAYE/NIC has shifted to the organisation hiring the contractor. The tests to apply whether IR35 applies are the same as they are for determining whether a worker is self-employed (in particular, does the contractor personally provide those services, to what extent does the hirer control how/when/where the services are provided, is there an expectation of work being offered and accepted), the only difference being that IR35 refers to engagement via a PSC. Should the worker be deemed to be an employee, the hirer will be required to pay that contractor via the payroll, even in circumstances where the engagement is through a PSC. In the context of PSCs, it should be noted that if the engagement is to take place in the UK (wholly or in part), if the engagement is via a non-UK PSC, for tax purposes the UK duties will be deemed to be one of employment and payment via the payroll required regardless of the fact the engagement is via a PSC or the worker is not necessarily tax resident in the UK. Naturally, different countries will have different rules regarding contractors and self-employed individuals. It is often thought that simply calling an individual ‘a consultant’ makes them self-employed but that will often not be the case. You do need to consider local country rules and do bear in mind switching from employment to self-employment status or vice versa can create issues with expatriate concessions (which are often only available to seconded or locally hired employees), pensions, social security and stock incentive and bonus schemes. Careful attention to all relevant issues is required.

Umbrella Companies

One of the more immediate consequences of the IR35 reforms which came into force in the private sector in April 2021, has been an increase in the use of so-called umbrella companies. These are essentially vehicles for paying individual workers (e.g., a consultant, contractor or temporary worker) as an alternative to individuals providing services via a PSC. In addition to this, there is (incorrectly) a perception by some that engaging workers via an umbrella company immediately removes all the risks associated with engaging with PSCs. This view is based on the approach some public sector bodies took when the IR35 reforms were introduced in the public sector in April 2017, and is a view that has been exacerbated by the extension of those rules into the private sector. Typically, this type of arrangement is put in place after an introduction by an agency that is seeking to place a worker with an end client, and in a manner which does not require the end client to employ the worker nor either party to otherwise become responsible for the deduction of PAYE and NIC through the various taxing provisions that govern “off

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payroll labour”. Tax is however, not the only driver, the mere fact that an agency will by its nature be dealing with a large and fluid workforce, means that being able to outsource the administrative obligations that would otherwise arise through a direct engagement provides significant cost and time savings. Furthermore, the contractor may be attracted to supplying their services through this model as it provides more flexibility in their working life than traditional employment, and in certain circumstances may be tax advantageous. There is no strict definition of “umbrella company” and therefore it can mean different things to different people. At its fundamental level, an umbrella company should be the legal employer of the individual worker and, as such, supply the services of that worker to the end client. The umbrella company is responsible for accounting for PAYE/NIC deductions on payments made to the worker and should also provide statutory protections such as pension auto enrolment, holiday pay, sick pay, maternity pay etc. However, a worker could also be paid by a payroll bureau operating PAYE/NIC but without being the employer. In the context of the IR35 off-payroll labour reforms many organisations ceased to engage directly with contractors who were operating via Personal Services Companies and instead requested that contractors operate through third parties in order to minimise the risk under the IR35 provisions (as the third party would be expected to operate PAYE and NIC). However, if the third party is not actually treating the contractor as its own employee, for example it is just the payment intermediary between the organisation and the contractor, then the PAYE/NIC risks have not been minimised. As part of the IR35 reforms, HMRC also acquired powers to transfer any tax debt associated through the engagement of workers via PSCs through a supply chain where PAYE/NIC is not/incorrectly operated by the correct party in the supply chain. Care still needs to be taken when working with these structures and relevant due diligence must be carried out to ensure that organisations do not fall foul of the IR35 provisions and be held responsible for PAYE and NIC. While many umbrella companies are fully compliant with their obligations, there are some that are not, and these have attracted significant media attention with risks including involvement in perceived tax avoidance schemes, potential fraudulent activity and loss of employment rights cited as areas of concern. HMRC has released guidance on the use of umbrella companies as it sees this as an area of tax risk, releasing first Spotlight 45 warning against umbrella companies which offer high ‘net pay’ for workers and then latterly released guidance on how an umbrella company should operate to combat what

it sees as potential fraud by so-called mini umbrella companies. HMRC has also recently opened a “call for evidence” on the use of umbrella companies which is seen as a sign that possible future greater regulation of umbrella companies, building on the recent appointment of a Director of Labour Market Enforcement whose remit includes the monitoring of umbrella companies.

Summary

As you will have read, there are a multitude of different routes that employers can adopt when moving employees around the world or when hiring them locally. All will have their advantages and disadvantages in comparison with alternative routes. Corporate entities will need to carefully consider what is the most appropriate route to engage with their workforce both immediately and in the longer-term. The impact of the COVID-19 pandemic has been an increase in the operation of these alternative employment structures as organisations seek more efficient or simply quicker ways of engaging workers, particularly when moving into new jurisdictions where there is no established business presence or when engaging with or hiring remote workers. Many options are available, but all require careful due diligence and consideration to ensure that the chosen solution is the correct one for the business, and that all relevant compliance obligations can and will be met.

ANDREW BAILEY

Andrew Bailey is head of Global Employer Services at BDO LLP. He has over 30 years’ experience in the field of expatriate taxation. Andrew is indebted to Stuart Strong, Rob Woodward and John Weston for their major contribution to this article. BDO can provide global assistance for all your international assignments. If you would like to discuss any of the issues raised in this article or any other expatriate matters, please do not hesitate to contact Andrew Bailey on +44 (0) 20 7893 2946, email Andrew.bailey@bdo.co.uk

INTERNATIONAL HR ADVISER WINTER

Time To Stop Talking, Let’s Grab The Seat At The Table The Global Mobility Function for many years has sat outside of the wider Human Resources or People Function as a distant cousin who is part of the family but not the inner circle. The Global Mobility Function can be centralised, decentralised or have a centre of expertise to undertake the day to day operations or strategy that make the Global Mobility Function “unique”. However, the Global Mobility Function uniqueness can mean a lack of understanding of the function and its importance to the overall objectives of the company. The last eighteen months has seen the rise of remote working that has adjusted the role of the Global Mobility Function due to the large number of Assignments and Permanent Transfers being placed on hold. The rise of remote working has meant that the Global Mobility Function can no longer be a distant cousin but should be part of the inner circle and utilise the opportunity to grab a seat at the table. The concept of remote working is when the employee chooses to work in a location that is not stipulated in their employment contract. Remote working typically occurs outside of the employment contract country - this is not flexible working, that comprises compliance issues such as corporate tax, employment law, immigration, income tax, payroll withholding and social security. However, whilst the employee wants flexibility to undertake remote working for a fixed or permanent period of time, it is clear that the Global Mobility Function may not support remote working. A survey undertaken by HMC Consultancy Group highlighted that only 33.33% of external respondents allowed the employee to become an international remote worker. However, this was for two weeks at Christmas in 2020 and for thirty days per annum only. Furthermore, 0% of external respondents provided additional benefits and support to the employee who became an international remote worker with the only “benefit” being flexible working hours. The Global Mobility Function may not support remote working, but for the company

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to remain competitive there is a requirement to provide flexibility to the employee given the growing requirement for an improved work life balance. Remote working raises many questions and the simple solution is to work together versus against one another. The remote working policy and process do not need to be complex or multi-layered like other processes or policies but align to what is currently in existence within the Global Mobility Function and the wider Human Resources and People Function. There are already processes to handle compensation and benefits, onboarding, offboarding and the employment contract and legislation applicable for the employee but the value that the Global Mobility Function brings is on compliance and the relocation process as remote working increasingly becomes the future of work. The PwC Talent Mobility 2020 Survey found fifty five percent of the CEOS interviewed “said they would look to change their approach to global mobility including international secondments”. Furthermore, for the Millennial and Generation Z Workforce, the undertaking of international working is seen “as a rite of passage” highlighting the next generation of workers value international working as a standard benefit for working in a multinational company. Short answer, remote working, whether it is liked or not, is here to stay.

Short answer, remote working, whether it is liked or not, is here to stay The Global Mobility Function needs to work together with the wider Human Resources and People Function to highlight a conjoined approach with dynamic processes, clear responsibilities and technology that contributes to talent retention and emphasises why the Global Mobility Function

deserves a seat at the table. The Global Mobility Function skillset is in demand, and now is the perfect time to highlight the value of the Global Mobility Professional and how there should be a place in the inner circle.

HOLLY MARIA CREED

Holly is a highly motivated and driven leader who has been shortlisted, highly commended and winner of multiple industry awards with over ten years Human Resources and Global Mobility experience including ten years of management experience. She has an impressive and proven track record of creating and structuring worldwide teams through implementing innovative, streamlined and dynamic operating models with an ability to secure senior leadership and multiple function stakeholder support in both a start-up and established company. Holly also combines leadership with the ability to coach and train employees and managers in employment law, income tax, immigration, policy understanding, people leadership and processes. Holly can prepare processes and develop strategies alongside prepare and implement policies, technology and vendors that enhance the team and eliminate millions in costs alongside align to the talent objectives of the company utilising flexible and international remote working. Holly is a passionate and inspiring leader who presents and writes as a subject matter expert internationally and established a Forum in 2018. To date Holly has been nominated for thirteen industry awards, receiving commendations for seven categories and winning three categories including the 2019 FEM EMEA EMMA Global Mobility Innovator Of The Year.

REVISITING THE A-Z OF TRAVEL AND IMMIGRATION

Revisiting The A-Z Of Travel And Immigration It’s coming close to two years since the World Health Organisation declared the COVID-19 outbreak a Public Health Emergency of International Concern. Not long after, we saw projects halted, streets emptied and the entire global supply chain disrupted. Planes were grounded and borders were forced to close to prevent the coronavirus variants from being imported and spread locally. Movements of people were restricted and cities locked down with some countries not allowing interstate travels. Healthcare struggled in major economies across the globe as doctors had to decide who should be given the respirator and who should not. Today, with the roll out of vaccination programmes globally, higher vaccination rates as well as mutual recognition of vaccination certificates, things are slowly starting to progress as borders re-open with safety measures in place globally. With the EU and the US taking the lead with the opening, most parts of Asia have now started to re-open, progressively connecting the Eastern and Western hemispheres through the setting up of vaccinated travel and reciprocal travel lanes. Singapore, for one, is reclaiming its spot to be an international travel hub with various Vaccinated Travel Lanes formed with lower risk countries such as the EU, US, UK, Australia and South Korea, and it is possible the list will get longer, however, for some other locations like Hong Kong and China, quarantine is still necessary, thus making travelling to these locations a cumbersome process. As the world takes smaller steps to progress the opening of borders, there are still possibilities where a third, fourth or fifth wave will turn things backwards, and countries will start to ban travellers from higher risk locations all over again. As the world puts the past behind and borders are now reopening, it is important for us to start planning and importantly recalibrate our knowledge on travel as things are no longer the same as before. We came up with the A-Z of immigration and travel in hopes that you can refer to them as we get back into the new normal. Many companies are concerned about the bureaucracy, procedures and cost on future travel, and this is especially so when many processes remain uncertain as each country

has its own set of measures in place. The possibilities of halting the processing of visa applications and further implementation of quarantines can take place anytime, including sudden findings of drop in efficacy rates of vaccines and thus an increase in infections and spread. A. Allay any concerns your employees have when it comes to travel. Provide support and continue to communicate any adjustments made due to unforeseen circumstances. After all, governments are still fine tuning their immigration protocol in the hope that it will benefit the economy, as well as prevent any unnecessary surge in imported coronavirus cases. Setting expectations early with your traveller can help reduce any stress, especially as many of us have not boarded a plane for a long while.

Eligibility for quick deployment based on nationality and travel history. Many borders are still imposing a time specific rule where the traveller must not have travelled to high-risk countries prior to arrival in the host location

B. Budget more expenses than necessary. As things are totally uncertain even though borders remain open, there could be additional payments needed for pre-event testing. This is especially so when the traveller is required to ensure a negative PCR test to be able to attend major seminars and events with a huge delegation. Such tests can be expensive, especially for those needing express processing of test results. In any case, it is common for all airlines to impose pre-flight testing prior to being allowed to board, and there on its own sees two tests including a return trip. C. Compliance remains a key issue, thus doing things right in the first instance should be of utmost important. Ensuring the correct rights of entry and the rights of employment permits is crucial as failure to adhere to such may see a business losing its license and on the wrong side of the law. What’s worse, is the unfortunate ban on the said employee for future travels, and this could possibly lead to denied entry to many other countries due to a possible breach of immigration rules in the past. D. Decide if travel is at all necessary. In this age of technology, Microsoft Teams and Zoom meetings have served corporate meetings well in the past year, unless of course it is necessary to be present in person to troubleshoot or decommission equipment or plant. This decision to travel may also require other aspects to be looked at, on whether a certain activity requires added permissions prior to entry e.g., a work permit may be necessary for certain activities that need to be carried out. E. Eligibility for quick deployment based on nationality and travel history. Many borders are still imposing a time specific rule where the traveller must not have travelled to high-risk countries prior to arrival in the host location. Where the traveller visited high-risk countries prior, a possibility of denied entry or an imposed quarantine of up to two weeks may be possible, therefore keeping a record of travellers and their last visited locations play an important aspect on deciding who is eligible to attend that important meeting. F. Formulate country specific checklists and processes to ensure travellers are made aware of the regulations of the countries they are visiting. Familiarising of healthcare protocols and restrictions

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will help travellers prepare for unforeseen circumstances. This also gives travellers assurance on what to expect on foreign land with the Do’s and Don’ts. G. Guidance should also be provided to travellers’ family members on emergency numbers to connect with within the organisation should any hospitalisation or medical treatment take place. Given that treatments for serious cases with underlying conditions can prolong for weeks and months, it is important connectivity with family members remains open. H. H ybrid working arrangements for travellers upon return helps to reduce any spread of possible infection to colleagues within the same office. It is often suggested by health authorities that refraining from unnecessary physical interaction via self-isolation will mitigate any risk in health and safety. I. Insurance coverage for COVID-19 is now mandatory for visitors into a foreign country. It is important to ensure the insurer covers any hospitalisation or treatment required overseas, and to facilitate any emergency repatriation if necessary. Border officers will now require that evidence of insurance is up-to-date, and covers not only the duration of travel, but over a longer period in case of prolonged stay due to quarantine or longer-term medical treatment in local hospitals. J. Justification may be needed when travellers seek approvals into a country, be it an application for a business visa or some form of COVID-19 related control. This is necessary when countries want to control the number of foreign visitors allowed, and thus applications are scrutinised based on the reasons a traveller needs to enter a country. Approval can be based on different factors such as economic contribution of a business deal, contractual obligations on services rendered, as well as setting up a new entity to promote a new venture. K. Knowledge on the basic legalities of the country your traveller is visiting, as some locations may blacklist travellers from entering in the future should they make false declaration on health and travel history. This has now become a main deterrence for most governments as they try to root out imports of the coronavirus. L. Lockdowns may happen again any time, therefore it is important for both HR and travellers to keep track of local news. The loosening of restrictions does not mean future lockdowns is not possible. Time and again governments have decided to restrict movements and close borders when infection cases rise, therefore having a prepared mindset that a trip may either be prolonged or shortened depending on circumstances is essential.

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M. Monitor your travellers’ health and wellbeing before, during and after travels. This allows you to know immediately if a traveller is unwell so the necessary steps can be taken to avoid further exposure to loved ones at home and colleagues in the office. N. Notify the relevant authorities depending on the jurisdiction of travel as certain countries require immediate notification when there is exposure to a possible coronavirus infection. Failure to report may result in prosecution and affect a company’s standing as well as branding.

Working remotely remains a hot topic perhaps due to the success of employees who remain stuck overseas and continuing their daily work activities efficiently remotely without operational disruptions O. Obligations of both employers and travellers should be spelt out through a travel policy to ensure duty of care from all parties. This can include type of accommodation reviewed as safe e.g. a non-quarantine hotel, away from hospitals and coverage of travel expenses on what is reimbursable and nonreimbursable expenses. P. Planning for business continuity should not be taken for granted as we experienced broken supply chains, disruptions of technology infrastructure as well as manpower shortage during the outbreak. Travellers may get stuck for months due

to airport closures if borders get shut, resulting in the inability to return home to perform work activities, thus disrupting business operations. Q. Quarantine and isolation have been key measures in containing the outbreak, and organisations should be mindful of the psychological impacts this can cause travellers should this be imposed. Checking requirements and the duration one needs to fulfil will help travellers prepare themselves mentally to serve out the isolation. R. Reward travellers with incentives for taking the risk of possible exposure to the coronavirus during travels. This can be in the form of days off or other allowances in kind which the company can offer to encourage the resumption of important travels approved by the organisation. S. Self-Testing kits have helped detection of the coronavirus without the need to visit a clinic and this is likely a game changer for the future where self-isolation is imposed upon testing positive. Having test kits issued to travellers will enable them to track a week or two after returning home as incubation of the virus may take days or weeks before symptoms surface. T. Time needs to be factored in when applying for the necessary approvals and visas for overseas travel. In some countries, this can take as long as one month, or more especially when government offices are facing a backlog of applications which have not yet been processed. Giving a lead time of one to two months prior to travel should be a healthy timeline to work around. U. Understand that past procedures can no longer be applied given the new normal we are living in. Free and easy travel is something of the past and treatment of visa waiver programmes are no longer available. Added approvals are likely needed and prior submission of vaccination certificates may be required to be shared with foreign authorities so as to allow travel into the country. V. Vaccination Certificates are likely going to be as important as your passport when it comes to travelling. Without this document validated and recognised in the host country, the likelihood of you being allowed into the country is close to zero. As countries develop a framework to recognise each other’s vaccination, not all are treated equal, as some are still not approved in some countries. W. Working remotely remains a hot topic perhaps due to the success of employees who remain stuck overseas and continuing their daily work activities efficiently remotely without operational disruptions. This may come triggered with additional tax exposures and permanent establishment risks for organisations if proper planning has not been carefully thought through.

REVISITING THE A-Z OF TRAVEL AND IMMIGRATION X. X out any unnecessary travels or events which will possibly put travellers at risk. The health and safety of employees should be foremost importance given the current situation globally. If a meeting can be carried out virtually, it helps to keep travelling costs minimal. Y. Yearly vaccination and booster shots will likely be needed to reduce severe illness from the coronavirus. It is important to ensure vaccination records are kept up to date and validated prior to travel to allow transparency and reduce any awkward questioning at the immigration border. Z. Zip up in Personal Protective Equipment and mask up prior to boarding your flight as this now seems to be a social media trend these days. Don’t forget the PIN to your mobile as your phone will not likely work for facial recognition with that mask on. To help companies re-start travel and ensure up-to-date tracking of border restrictions as well as managing immigration compliance, multiple vaccination and booster shots will likely be needed to reduce severe illness from the coronavirus. There are industry tools available, including Santa Fe*. These ease the burden for HR with a click of a button, through either a web browser or an App on both IOS and Android platforms making it a seamless process.

MARK CHONG, GMS-T

Regional Leader (Commercial) – Asia Immigration Email – mark.chong@santaferelo.com Mark has been in the immigration industry for 15 years and have assisted numerous MNCs and Start-Ups with relocating talents across different jurisdictions. Having led the immigration practice and global mobility teams in previous roles, he brings with him vast experience in handling corporate immigration matters. He continues to work on unique and difficult cases as he believes every immigration file has a story to tell. Having a passion in advisory and consulting, he enjoys engaging with clients to discuss immigration trends and insights as such topics often help clients find solutions to their immigration woes.

*Business Travel Tool from Santa Fe Immigration is an innovative risk and compliance management system that enables HR and global mobility teams to mitigate immigration, tax and social security regulations for business travellers, globally. The logic in the technology is based on both best practice, international tax treaty data and Santa Fe Immigration’s expertise in making the visa process simple and easy as possible for your users to navigate. Indeed, the tool was designed and developed in co-ordination with our own in-house team of immigration lawyers and experts.

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INTERNATIONAL HR ADVISER WINTER

The Top 10 Best And Worst Cities For Expatriates To Live In Expat Insider City Ranking Report According to our recent research, Kuala Lumpur (1st), Málaga, Dubai, Sydney, Singapore, Ho Chi Minh City, Prague, Mexico City, Basel, and Madrid (10th) are the top 10 cities for expatriates to live in 2021. On the other hand, expatriates consider Rome (57th), Milan, Johannesburg, Istanbul, Tokyo, Cairo, Paris, Maastricht, Moscow, and New York (48th) the world’s worst cities to live in. Munich, 1 December, 2021 - Kuala Lumpur (1st), Málaga, and Dubai are the top 3 cities in the Expat City Ranking 2021 by InterNations, the world’s largest expatriate community with over 4 million members. All of them rank very well in the Getting Settled Index - expatriates feel at home there and find it easy to make friends. What is more, Dubai and Málaga are appreciated for their high quality of life, while Kuala Lumpur and Málaga outperform Dubai in terms of cost of living, as well as finances and housing. At the other end of the list, Rome (57th), Milan, and Johannesburg are the worst cities worldwide according to expatriates. They rank particularly poor in the Urban Work Life Index, but expatriates are also unhappy with the low quality of life. Johannesburg outperforms the two Italian cities in the Finance and Housing and the Getting Settled Indices. The Expat City Ranking is based on the annual Expat Insider survey, which is one of the most extensive surveys about living and working abroad, with 12,420 respondents in 2021. This year, 57 cities around the globe are analysed in the survey, which offers in-depth information about five areas of expatriate life: Quality of Urban Living, Getting Settled, Urban Work Life, Finance and Housing, and Local Cost of Living. Together, the first four topics make up the Expat City Ranking, which reveals the best and worst cities for expatriates to live in.

Top 10 Cities 1 - KUALA LUMPUR

Kuala Lumpur is the World’s Best City for Expatriates, and is at the top of the Expat City Ranking 2021. Kuala Lumpur excels in the Getting Settled Index (1st): 75% of expatriates feel at home there (vs. 65% globally), and 78%

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find it easy to get used to the local culture (vs. 65% globally). Most are also happy with the friendliness of the local population in general (81% vs. 69% globally) and towards foreign residents (77% vs. 67% globally). A US expatriate said: “I love Kuala Lumpur’s culturally diverse environment and the overall friendliness”. Kuala Lumpur also ranks 1st out of 57 in the Finance and Housing Index. Expatriates find housing both affordable (74% vs. 42% globally) and easy to find (91% vs. 60% globally). Another 80% are satisfied with their financial situation (vs. 64% globally), and 64% say that their household income is more than enough (vs. 52% globally). The city ranks 3rd out of 57 in the Local Cost of Living Index as well, with 78% rating this aspect positively (vs. 48% globally). However, it gets average results in the Urban Work Life Index (30th). Expatriates are happy with their working hours (6th) and their work-life balance (7th), but not so much with the local economy (40th) and the career opportunities (44th). Lastly, Kuala Lumpur only ranks 41st in the Quality of Urban Living Index. For factors such as political stability (35% happy vs. 64% globally) and public transportation (57% vs. 69% globally), satisfaction is below the global average.

2 - MÁLAGA

The Best City for Making Friends and Socialising. Málaga comes 2nd out of 57 in the Expat City Ranking 2021 and even 1st in the Local Cost of Living Index: 86% of expatriates rate this factor positively (vs. 48% globally). It also does very well in the Finance and Housing Index (5th). Expatriates consider housing both affordable (67% vs. 42% globally) and easy to find (70% vs. 60% globally). Málaga ranks 3rd in the Getting Settled Index and 1st in the Friends and Socialising Subcategory: 69% find it easy to make new friends (vs. 48% globally), and 78% are happy with their social life (vs. 57% globally). Many expatriates describe the local people as friendly in general (86% vs. 69% globally) and towards foreign residents in particular (82% vs. 67% globally). Coming 15th in the Quality of Urban Living Index, Málaga earns another top rank in the

Leisure and Climate Subcategory (1st). Not a single expatriate (0%) is unhappy with the weather (vs. 17% globally), and 86% rate the local leisure options favourably (vs. 72% globally). “Málaga has everything to offer for downtime,” says an Australian expatriate. However, the city lands in the bottom 10 of the Urban Work Life Index (51st). While ranking 32nd in the Work-Life Balance Subcategory, it performs poorly in the Job and Career (56th) and the Job Security (50th) Subcategories.

3 - DUBAI

Easy for Settling-In but Hard to Afford, Dubai ranks 3rd out of 57 in the Expat City Ranking 2021. Receiving its best results in the Getting Settled Index (6th), it is the easiest city in the world to live in without speaking the local language (94% vs. 54% globally). Moreover, 81% describe the local people as generally friendly towards foreign residents (vs. 67% globally). Expatriates feel at home in Dubai (75% vs. 65% globally) and find it easy to make new friends there (59% vs. 48% globally). Dubai also performs very well in the Quality of Urban Living Index (11th). Expatriates are happy with the political stability (90% vs. 64% globally), and 97% feel safe there (vs. 84% globally). However, it falls behind in the Urban Work Life Index (38th). It even ranks among the bottom 10 for job security (51st). Expatriates are also unhappy with their work-life balance (22% vs. 17% globally), and only 65% are satisfied with their job in general (vs. 68% globally). Lastly, Dubai gets mixed results in the Finance and Housing Index (21st). It ranks well in the Housing Subcategory (12th): 86% say that housing is easy to find (vs. 60% globally). However, 41% find it unaffordable (vs. 39% globally), and the city does poorly in the Finance Subcategory (49th): 31% say that their disposable household income is not enough (vs. 23% globally).

4 - SYDNEY

A Sunny Destination with Great Career Opportunities for Expatriates, placing 4th out of 57 in the Expat City Ranking 2021. Sydney performs best in the Quality of Urban Living Index (10th): expatriates are particularly happy with the leisure options

EXPAT INSIDER CITY RANKING REPORT (89% vs. 72% globally), climate and weather (95% vs. 66% globally), quality of medical care (89% vs. 71% globally), and urban environment (92% vs. 71% globally). “I like the clean environment, the beautiful scenery, and the diverse community with its mix of cultures”, says an expatriate from Pakistan. Moreover, 81% of expatriates in Sydney find it easy to get used to the local culture (vs. 65% globally) - just one reason for its excellent ranking in the Getting Settled Index (11th). Another 80% describe the local residents as generally friendly (vs. 69% globally), and 72% feel at home in Sydney (vs. 65% globally). It also ranks 11th in the Urban Work Life Index: 66% are happy with the career opportunities (vs. 45% globally), and 78% rate their work-life balance positively (vs. 66% globally). However, Sydney only places 37th in the Local Cost of Living Index: 56% rate the cost of living negatively (vs. 34% globally). In the Finance and Housing Index, it comes 29th. While 67% say it is easy to find housing (vs. 60% globally), 68% describe it as unaffordable (vs. 39% globally).

Expatriates find it easy to make new friends and are happy with their social life 5 - SINGAPORE

High Quality of Life but Poor Work-Life Balance, coming 5th out of 57 in the Expat City Ranking 2021. Singapore does best in the Quality of Urban Living Index (3rd), particularly in the Safety and Politics Subcategory (1st): 95% of expatriates are happy with the political stability (vs. 64% globally), and 99% feel safe (vs. 84% globally). Singapore also performs well in the Transportation Subcategory (4th). However, it receives mixed results regarding healthcare. While most expatriates are satisfied with its availability (89% vs. 76% globally) and quality (84% vs. 71% globally), 43% find it unaffordable (vs. 21% globally). Singapore also scores high in the Getting Settled Index (12th).

Expatriates find it easy to make new friends (56% vs. 48% globally) and are happy with their social life (60% vs. 57% globally). However, the results in the Urban Work Life Index (37th) are below average. Singapore even ranks in the bottom 10 of the Work-Life Balance Subcategory (52nd). While expatriates rate the local economy positively (85% vs. 62% globally), the career opportunities are fairly average (47% vs. 45% globally). Lastly, Singapore comes 43rd in the Local Cost of Living Index: 63% rate this factor negatively (vs. 34% globally). Another 66% also find housing unaffordable (vs. 39% globally).

6 - HO CHI MINH CITY

The Cost of Living Is Excellent, the Quality of Life Less So, ranking 6th out of 57 in the Expat City Ranking 2021. Ho Chi Minh City makes it into the top 10 of four indices. It ranks 2nd out of 57 in both the Local Cost of Living Index - 84% rate this factor positively (vs. 48% globally) - and the Finance and Housing Index: 75% of expatriates say that their disposable household income is more than enough (vs. 52% globally), and 77% are satisfied with their financial situation (vs. 64% globally). They also find housing affordable (61% vs. 42% globally). The city does well in the Urban Work Life Index (10th), too. It is even voted the best worldwide for overall job satisfaction (1st). Ho Chi Minh City also scores high in the Getting Settled Index (10th). Expatriates find it easy to make new friends (77% vs. 48% globally), are happy with their social life (74% vs. 57% globally) and describe the local people as generally friendly towards foreign residents (93% vs. 67% globally). However, the city lands in the bottom 10 of the Quality of Urban Living Index (52nd): 65% are unhappy with public transportation (vs. 20% globally), and 49% rate the urban environment negatively (vs. 16% globally). A Canadian expatriate explains: “The environmental quality can be challenging, such as pollution, lack of recycling, and noise”.

7 - PRAGUE

A Great Working Life and a High Quality of Living, Prague not only makes it into the top 10 of the Expat City Ranking (7th) but also into the top 5 for two indices. In the Urban Work Life Index (4th), expatriates are happy with the career opportunities (60% vs. 45% globally), work-life balance (79% vs. 66% globally), and working hours (82% vs. 66% globally). The city comes 5th in the Quality of Urban Living Index: 83% rate the leisure options favourably (vs. 72% globally), and 91% are happy with the transportation system (vs. 69% globally). “I enjoy the great opportunities for socialising, activities, and travelling”, states an expatriate from Ukraine.

However, while housing is easy to find for expatriates (73% vs. 60% globally), 43% find it hard to afford (vs. 39% globally). Still, Prague ranks 14th in the Finance and Housing Index, and 66% are satisfied with their financial situation (vs. 64% globally). It does even better in the Local Cost of Living Index (11th): 61% rate this factor positively (vs. 48% globally). The Getting Settled Index (38th) shows some rather mixed results. Expatriates find the local residents generally unfriendly (32% vs. 16% globally), as well as unfriendly towards foreign residents (35% vs. 18% globally). However, 72% are happy with their social life (vs. 57% globally) and feel at home in Prague (vs. 65% globally).

A Great Climate and a Welcoming Atmosphere in the Expat City Ranking 2021

8 - MEXICO CITY

A Great Climate and a Welcoming Atmosphere in the Expat City Ranking 2021. Mexico City (8th out of 57) performs best in the Getting Settled Index (2nd), even coming 1st in the Feeling Welcome Subcategory. Expatriates find it easy to get used to the local culture (93% vs. 65% globally) and feel at home (80% vs. 65% globally). They are happy with their social life (67% vs. 57% globally) and find it easy to make new friends (73% vs. 48% globally). Another 88% describe the locals as friendly towards foreign residents (vs. 67% globally). Mexico’s capital also performs very well in the Local Cost of Living (5th) and Finance and Housing (4th) Indices: 92% say that their disposable household income is enough or more than enough to cover expenses (vs. 77% globally). Housing is both easy to afford (60% vs. 42% globally) and to find (74% vs. 60% globally). However, the city only ranks 42nd in the Urban Work Life Index. While overall job satisfaction is high (6th), it lands in 52nd place for working hours. It even ends up in the bottom 10 of the Quality of

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Urban Living Index (49th). Expatriates are dissatisfied with public transportation (30% vs. 20% globally), do not feel safe (37% vs. 8% globally) and rate the urban environment negatively (25% vs. 16% globally). However, they love the climate and weather (88% vs. 66% globally) and the local leisure options (81% vs. 72% globally).

9 - BASEL

The Best Working Life for Expatriates in Switzerland, making it into the top 10 of the Expat City Ranking 2021. Basel (9th out of 57) performs best in the Quality of Urban Living Index (2nd). This includes a 1st place in the Transportation Subcategory and a 3rd rank in the Safety and Politics Subcategory. All expatriates in Basel (100%) are satisfied with public transportation (vs. 69% globally). An Australian expatriate notes: “The public transportation system is excellent”. Nearly all respondents (97%) also feel safe there (vs. 84% globally). The city also performs very well in the Urban Work Life Index (6th), particularly for the state of the local economy (1st). In fact, no expatriate (0%) rates the former negatively (vs. 19% globally). Coming 23rd in the Finance and Housing Index, Basel even places 5th in the Finance Subcategory: 84% find their disposable

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household income enough or more than enough (vs. 77% globally), and 77% are satisfied with their financial situation (vs. 64% globally). Nevertheless, the city ranks 48th in the Local Cost of Living Index: 69% are dissatisfied with the cost of living (vs. 34% globally). The Getting Settled Index (39th) is another of Basel’s weak points: 26% of respondents find it difficult to get used to the local culture (vs. 18% globally).

10 - MADRID

A Welcoming City with a High Quality of Life, coming 10th out of 57 in the Expat City Ranking 2021. Madrid does best in the Quality of Urban Living Index (7th). It lands among the top 5 in the Leisure and Climate (4th) and the Health and Environment (5th) Subcategories: expatriates are happy with the climate (92% vs. 66% globally) and the leisure options (87% vs. 72% globally). “I like the good access to entertainment, cultural activities, and various food options”, says a UK expatriate. They also rate the affordability (86% vs. 61% globally), availability (90% vs. 76% globally), and quality (89% vs. 71% globally) of healthcare positively. Madrid ranks nearly as well in the Getting Settled Index (8th): 85% of expatriates find it easy to get used to the local culture (vs.

65% globally). Another 81% feel at home there (vs. 65% globally), and 73% are happy with their social life (vs. 57% globally). Expatriates describe the local people as generally friendly (85% vs. 69% globally) and friendly towards foreign residents (79% vs. 67% globally). While Madrid does well in the Local Cost of Living (14th) and Finance and Housing (25th) Indices, it comes 44th in the Urban Work Life Index. Expatriates are unhappy with the working hours (25% vs. 16% globally), local economy (24% vs. 19% globally), and career options (38% vs. 33% globally).

The 10 Worst Cities 57 - ROME

The Worst City for Expatriates Worldwide, Rome is rated the worst city (57th out of 57) in both the overall Expat City Ranking 2021 and the Urban Work Life Index (57th). It also lands among the bottom 3 in all of its subcategories: Job and Career (57th), Job Security (55th), and Work-Life Balance (55th). Expatriates are unhappy with the career opportunities (60% vs. 33% globally), job security (45% vs. 20% globally), and working hours (27% vs. 16% globally). A UK expatriate sums it up: “The economy is terrible, and salaries are low”. The city ranks 55th in the Quality of Urban Living Index. The local climate and weather,

EXPAT INSIDER CITY RANKING REPORT rated positively by 86% (vs. 66% globally), is the only highlight. Expatriates are unhappy with public transportation (47% vs. 20% globally) and political stability (34% vs. 16% globally), as well as the availability (16% vs. 11% globally) and quality (20% vs. 14% globally) of medical care. Rome only does slightly better in the Finance and Housing Index (45th): 32% are unhappy with their financial situation (vs. 19% globally), and 41% say that their disposable household income is not enough (vs. 23% globally). Moreover, housing is neither affordable (47% vs. 39% globally) nor easy to find (33% vs. 23% globally). At least, 43% rate the cost of living positively (vs. 48% globally), with Rome ranking 20th in the Local Cost of Living Index.

The city also ends up in the bottom 10 of the Urban Work Life Index (52nd): 41% are dissatisfied with the local career opportunities (vs. 33% globally). Expatriates also rate the job security (29% vs. 20% globally) and the state of the local economy (48% vs. 19% globally) negatively. Johannesburg performs a lot better in the Getting Settled (29th) and the Finance and Housing (24th) Indices. However, the latter has some very mixed results. The city ranks 56th in the Finance Subcategory and 10th in the Housing Subcategory: 52% of expatriates find housing affordable (vs. 42% globally), but 42% say that their disposable household income is not enough (vs. 23% globally).

56 - MILAN

Expatriates Are Unhappy with their Working Life, Istanbul (54th out of 57) lands in the bottom 10 of the Expat City Ranking 2021. In the Urban Work Life Index (56th), it places last worldwide for the state of the local economy (52% unhappy vs. 19% globally), working hours (33% vs. 16% globally), and work-life balance (33% vs. 17% globally). Expatriates are also not satisfied with their job security (38% vs. 20% globally) and local career opportunities (44% vs. 33% globally). Istanbul performs somewhat better in the Quality of Urban Living Index (40th), despite poor results for political stability (52nd) and the urban environment (50th). Three in ten expatriates (30%) rate the latter negatively (vs. 16% globally). When it comes to the Getting Settled Index (36th), 51% find it hard to live in Istanbul without speaking the local language (vs. 29% globally). On the bright side, Istanbul has an above-average result in the Local Cost of Living Index (17th). But this is not reflected in the Finance Subcategory (53rd), which is part of the Finance and Housing Index (26th): 32% are dissatisfied with their financial situation (vs. 19% globally). At least housing is considered affordable (50% vs. 42% globally).

Disappointed Expatriates across the Board, coming 56th out of 57 in the Expat City Ranking 2021. Milan performs poorly in every index. It lands in 55th place in the Urban Work Life Index and among the bottom 10 for all its rating factors: 47% of expatriates rate the career opportunities negatively (vs. 33% globally), and 38% are unhappy with the local economy (vs. 19% globally). They are also dissatisfied with their work-life balance (22% vs. 17% globally) and working hours (25% vs. 16% globally). Milan also ranks 55th in the Finance and Housing Index, coming last worldwide in the Finance Subcategory (57th): 32% are unhappy with their financial situation (vs. 19% globally), and 39% say that their disposable household income is not enough (vs. 23% globally). Housing is considered unaffordable (68% vs. 39% globally) as well. The city does slightly better in the Local Cost of Living (46th) and Quality of Urban Living (47th) Indices. Expatriates are particularly unhappy with the urban environment (23% vs. 16% globally), and 14% worry about their personal safety (vs. 8% globally). On the bright side, the local leisure options are rated positively by 76% (vs. 72% globally). Lastly, Milan ranks best in the Getting Settled Index (44th). Even so, 30% do not feel at home there (vs. 19% globally).

55 - JOHANNESBURG

Issues with Safety, Work, and Finances, in the Expat City Ranking 2021. Johannesburg (55th out of 57) comes last in the Quality of Urban Living Index (57th): 63% of expatriates are not satisfied with public transportation (vs. 20% globally), and a staggering 68% worry about their personal safety (8% globally). An Irish expatriate feels that he must “always be on guard due to security issues”. Moreover, 32% are unhappy with the urban environment (vs. 16% globally), and they consider healthcare to be neither available (20% vs. 11% globally) nor affordable (40% vs. 21% globally).

54 - ISTANBUL

53 - TOKYO

One of the Worst Cities in the World for Settling-In, coming 53rd out of 57 in the Expat City Ranking 2021. Tokyo is voted worst worldwide in the Getting Settled Index (57th). Here, it ranks in the bottom 10 for most factors. Expatriates find it difficult to learn the language (75% vs. 42% globally) and to live there without speaking it (54% vs. 29% globally). Another 38% find it hard to get used to the local culture (vs. 18% globally), and 40% describe the local population as unfriendly towards foreign residents (vs. 18% globally). “You hardly feel like a local living in Japan, and it can be difficult to integrate”, says an expatriate from the UK.

Tokyo also ranks among the bottom 10 in the Urban Work Life Index (49th): 35% rate their working hours negatively (vs. 16% globally), and 32% are unhappy with their work-life balance (vs. 17% globally). It performs just slightly better in the Finance and Housing Index (43rd): 50% say that it is hard to find housing (vs. 23% globally), and 58% describe it as unaffordable (vs. 39% globally). Overall, 23% are unhappy with their financial situation (vs. 19% globally). However, Tokyo does really well in the Quality of Urban Living Index (14th), even ranking in the top 10 for personal safety (7th). Expatriates are also happy with the public transportation system (87% vs. 69% globally), and 77% find healthcare affordable (vs. 61% globally).

52 - CAIRO

Affordable but with a Very Poor Quality of Life, Cairo ranks 52nd out of 57 in the Expat City Ranking 2021. In the Quality of Urban Living Index (56th), expatriates rate the Transportation (52nd) and Health and Environment (57th) Subcategories especially poorly. Additionally, 32% view the quality of medical care negatively (vs. 14% globally). In the Urban Work Life Index (53rd), Cairo does not fare much better, especially in the Job Security (52nd) and Job and Career (53rd) Subcategories. Expatriates are unhappy with their job in general (22% vs. 16% globally) and the local career opportunities (42% vs. 33% globally). However, the city performs much better in the Getting Settled Index (26th): 57% of expatriates say finding friends in Cairo is easy (vs. 48% globally), and 70% describe the local residents as generally friendly (vs. 69% globally). Ranking the city 19th in the Finance and Housing Index, expatriates consider housing in Cairo both easy to find (67% vs. 60% globally) and to afford (52% vs. 42% globally). Lastly, the city receives its best results in the Local Cost of Living Index (7th). 63% rate this factor positively (vs. 48% globally).

51 - PARIS

Lacking in Friendliness, Personal Safety, and Affordable Housing, ranking 51st out of 57, Paris is among the worst-rated cities in the Expat City Ranking 2021. It places 55th in the Getting Settled Index. Expatriates describe the Parisians as especially unfriendly towards foreign residents (40% vs. 18% globally), while 53% find it hard to make new friends (vs. 32% globally). The city does not perform much better in the Finance and Housing Index (51st): housing is hard to find (59% vs. 23% globally) and to afford (77% vs. 39% globally). Still, 79% say that their disposable household income is enough or more than enough (vs. 77% globally).

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While Paris lands in an average 33rd place in the Quality of Urban Living Index, two factors affect its performance: 20% do not feel safe in Paris (vs. 8% globally). Additionally, 23% of expatriates rate the urban environment negatively (vs. 16% globally). However, the French capital makes it into the top 10 for affordable healthcare (2nd) and local leisure options (8th). Lastly, it performs quite well in the Urban Work Life Index (22nd), even ranking 4th for job security: 79% rate the latter positively (vs. 61% globally). Another 59% are satisfied with the career opportunities (vs. 45% globally), and 71% are happy with their job in general (vs. 68% globally).

50 - MAASTRICHT

The Worst Dutch City for Career-Driven Expatriates, Maastricht (50th out of 57) ends up in the bottom 10. It performs worst in the Getting Settled Index (42nd), placing 50th in the Friends and Socialising Subcategory. Expatriates find it hard to make new friends (45% vs. 32% globally) and are unhappy with their social life (36% vs. 25% globally). “The locals are not looking to make friends with you as they already have their own groups”, explains a US expatriate. It may not help that 28% perceive them as generally unfriendly (vs. 16% globally). In the Urban Work Life Index (41st), Maastricht performs a lot worse than other Dutch destinations, particularly for local career opportunities (50th): 45% of expatriates are not satisfied with this factor (vs. 33% globally). Another 20% are unhappy with their job in general (vs. 16% globally). The city also ranks 41st in the Finance and Housing Index: 50% say housing is hard to find (vs. 23% globally), and 57% find it unaffordable (vs. 39% globally). In the Quality of Urban Living Index (39th), Maastricht ranks among the worst cities worldwide in the Health and Environment Subcategory (49th). It does badly for the availability (51st), affordability (48th), and quality of medical care (54th). Maastricht also does rather poorly in the Leisure and Climate Subcategory (54th): 32% are unhappy with the leisure options (vs. 14% globally).

49 - MOSCOW

A Difficult Destination for Career-Minded Expatriates, Moscow (49th out of 57) lands in the bottom 10 of the Expat City Ranking 2021. The Urban Work Life Index (48th) is its sore spot, especially in terms of Work-Life Balance (50th): 27% of expatriates are unhappy with this factor (vs. 17% globally), and 22% are dissatisfied with their working hours (vs. 16% globally). What is more, only 34% are happy with the state of the local economy (vs. 62% globally). Moscow could also offer better career opportunities

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(41% unhappy vs. 33% globally). “It is difficult to get a job without having local citizenship”, says a Danish expatriate. Moscow lands in a low 41st place in the Getting Settled Index. Expatriates find it hard to learn the local language (60% vs. 42% globally), while just 25% find it easy to live there without speaking it (vs. 54% globally). Another 27% perceive the locals as unfriendly (vs. 16% globally), and 23% do not feel at home (vs. 19% globally). Still, 63% are happy with their social life (vs. 57% globally). The city receives mediocre results in the Quality of Urban Living (37th) and the Finance and Housing (31st) Indices: 32% of expatriates say that their disposable household income is not enough to cover expenses (vs. 23% globally). Moscow performs best in the Local Cost of Living Index (21st). Nonetheless, just 36% rate the local cost of living positively (vs. 48% globally).

New York places second to last in the Local Cost of Living Index 48 - NEW YORK CITY

Where Expatriates Sacrifice Their WorkLife Balance for Their Career, coming 48th out of 57 in the Expat City Ranking 2021. New York places second to last in the Local Cost of Living Index (56th): 75% of expatriates are dissatisfied with the cost of living (vs. 34% globally). It also performs poorly in the Finance and Housing Index (47th), especially for one factor in the Housing Subcategory (44th): 78% find housing not affordable (vs. 39% globally). The Quality of Urban Living Index (48th) does not look much better. Expatriates are worried about political stability (48% vs. 16% globally) and personal safety (28% vs. 8% globally). A Filipino expatriate said: “I do not like the political and social instability”. Respondents also find healthcare unaffordable (67% vs. 21% globally) and rate its availability negatively (25% vs. 11% globally). While 25% are unhappy with New York’s urban environment (vs. 16% globally), 84% rate the local leisure options positively (vs. 72% globally). New York gets mixed results in the Urban Work Life Index (35th). Expatriates are happy with the career opportunities (69% vs. 45% globally) but rate their work-life balance negatively (38% vs. 17% globally). The ranking in

the Getting Settled Index (20th) is a lot better: expatriates find it easy to get used to the local culture (77% vs. 65% globally) and feel at home in New York (70% vs. 65% globally).

About The Expat City Ranking 2021

The Expat City Ranking is based on the annual Expat Insider survey by InterNations. For the survey, InterNations asked 12,420 expatriates representing 174 nationalities and living in 186 countries or territories to provide information on various aspects of expatriate life, as well as their gender, age, and nationality. In addition to their satisfaction with life in their host country, respondents were also invited to share their opinions on the city they are currently living in. Participants were asked to rate more than 25 different aspects of urban life abroad on a scale of one to seven. The rating process emphasised the respondents’ personal satisfaction with these aspects, considering both emotional topics and more factual aspects with equal weight. The respondents’ ratings of the individual factors were then bundled in various combinations for a total of 13 subcategories, and their mean values were used to draw up four topical indices: Quality of Urban Living, Getting Settled, Urban Work Life, and Finance and Housing. These were further averaged in order to rank all cities worldwide that had the required number of participants for the minimum sample size. (The survey also includes a Local Cost of Living Index, which does, however, not factor into the overall ranking to avoid overrepresenting financial aspects). In 2021, the top 10 cities for expatriates are Kuala Lumpur (1st), Málaga, Dubai, Sydney, Singapore, Ho Chi Minh City, Prague, Mexico City, Basel, and Madrid (10th). For a city to be featured in the Expat City Ranking 2021, a sample size of at least 50 survey participants per city was required. In total, 57 cities met this requirement.

INTERNATIONS

With more than 4 million members in 420 cities around the world, InterNations is the largest global community and a source of information for people who live and work abroad. InterNations offers global and local networking and socialising, both online and face to face. At around 6,000 events and activities per month, expatriates have the opportunity to meet other global minds. Online services include discussion forums and helpful articles with personal expatriate experiences, tips, and information about life abroad. Membership is by approval only to ensure we remain a community of trust. InterNations is part of the NEW WORK SE, a group of brands that offer products and services for a better working life. For further information please visit www.internations.org

HR TRENDS

HR Trends For 2022 Work is having its moment. The transformation of the global workforce accelerated in 2021, and is now beyond what would be recognised in the early 21st century. The changes seen in the workplace over the past couple of years have been driven by the continued impact of the COVID-19 pandemic, strains on businesses amid record labour shortages and shifting worker priorities.

to almost eight hours during the grip of COVID-19. Much of this could be down to the obliteration of the commute, meaning workers have more time on their hands and little else to do. However, it is often due to the enhanced monitoring of time-keeping and attendance that employees brought in at the advent of the pandemic when concerns of employee productivity was rife. Either way, the increase in overtime is a trend worth noting and HR must be cognisant of the potential burnout of staff.

The workforce landscape has evolved and gone through drastic changes in the past year – there are fewer employees that are expected to do more, all in the same 8-hour working day. Employers are so concerned about staff shortages; some were offering bonuses of up to £2,000 to recruit Christmas workers in time for the festive season. Research from Adzuna showed that there were 26,307 seasonal job vacancies ahead of the pivotal Christmas shopping period, almost double the 13,668 seen a year previous. Our own research, by the ADP Research Institute ® People at Work 2020: A Global Workforce View from 2020, has highlighted how almost two-thirds (64%) of the workforce has been negatively impacted by the COVID-19 pandemic. However, vaccines have brought a degree of light to the end of the tunnel. A similar number (66%) of workers say they now feel optimistic about the next five years at work. Many feel that the cloud will have a silver lining and believe the pandemic will have a positive lasting effect on workplace flexibility (34%) and their worklife balance (28%). In many ways, I’m surprised the figure isn’t higher. How and where work gets done has been permanently redefined. A survey undertaken by Deloitte last year, found that more than two-thirds of respondents (67%) were still working remotely. Over half (54%) of staff say they would prefer to continue working from home even after the pandemic ends. It is, therefore, up to businesses to adapt to the morphing demands of talent so that they can recruit the best of the best and remain competitive.

In the UK, there are three key challenges that have defined how we will work in 2022 and beyond The second challenge is that of diminishing worker confidence, particularly among Generation Z. Whilst around half (54%) of workers in the UK across all age groups feel they were professionally impacted by COVID-19, two thirds (73%) of 18–24-yearolds report concern. Further, overall worker optimism regarding the next five years across all age groups is down (from 73% to 66%) from pre-pandemic levels. HR directors in 2022, also need to be mindful of statistics that point towards widening gender inequality. In the UK, only 68% of women received a pay rise or bonus for taking on new roles and extra responsibilities during the pandemic, compared to 76% of men. This has led to almost three-in-ten UK employees (28%) not believing that there is pay equality in their workplace today. Surely, it is time to finally breach this gap.

Three Key Challenges Ahead

Three Areas To Prioritise In 2022

In the UK, there are three key challenges that have defined how we will work in 2022 and beyond. The first is that unpaid overtime has steadily risen from six hours in 2019

To overcome these challenges and rebuild worker confidence in 2022, HR Directors should be prioritising on three key areas within the businesses. The first is fostering a

team ethic despite a workforce that is more disparate than ever before. It is essential to nurture a connection in the absence of physical proximity. People data should be used to help shed insight into the ebbs and flows of engagement and performance. This will help managers pull the right levers to support remote or hybrid teams. More than anything though, there needs to be a workplace dynamic built upon mutual trust to help drive employee engagement and performance. This is important, as an employee’s head can turn quicker today than ever before. The workplace culture in 2022 will have to be driven by people and purpose. As HR look for ways to drive inclusion amidst new work models, connection will become an important measurement of workforce culture. As their most valuable intellectual property (IP), employers will need to heighten their focus on their people and reflect on the larger purpose that unites their workforce. All this will be underpinned by the need for reliable data and technology to drive innovation and resiliency within the business. To navigate forward, business leaders will need to rely more heavily on real-time data to tackle compliance and guide decisionmaking. HR teams must also turn to technology to drive efficiency by eliminating task work and refocusing efforts on strategic growth initiatives.

Empowering The Workforce

It is a time to empower the workforce. Businesses that empower their employees to work in a way that suits them will see higher levels of engagement and productivity in the long run. Technology is now firmly at the helm of business success. Successful HR Directors understand the power of using data and insights to drive their decision making and to better understand their employees’ needs. HR teams already hold some of the most valuable data within the business. However, as the world of work becomes more people and culture centred than ever before, this data will only become more instrumental in driving strategy and change. It is the difference between surviving and thriving.

Uniting Technology And Talent

Uniting technology and talent together can help transform the employee experience and improve performance. Having robust technology is the bedrock of any business today. It helps them attract the best

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people and then propel them towards high performance. From recruiting and onboarding to learning and development, it is important to ensure you have the right technology and tools to help support the HR journey. Similarly, top-performing organisations depend on high-performing leaders and teams. By having the right platforms and programmes, HR teams can boost employee performance by aligning individual, team, and organisational goals. Plus, they can optimise achievement via digital feedback, coaching and skills development. They can also create succession planning and individualised career development. It is about treating staff as more than a number to develop the very best leaders and teams.

Uniting technology and talent together can help transform the employee experience and improve performance. Having robust technology is the bedrock of any business today Creating The Best First Impression

You only get one chance to make a first impression. However, creating a positive first impression has been challenging for HR Directors whilst the world has been confined to their own four walls. It has never been more important to create engaging job posts that grab the attention of top candidates. However, it is what happens next that has shifted the most. HR teams need to harness the power of technology, data and services to streamline the hiring process and ensuring

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that the best talent doesn’t fall through the net. Once they are signed up. It is important to equip new employees with a digital onboarding experience to welcome them to the team.

A Shift In Worker Priorities

We have all experienced a tremendous amount of change in the last year, across both our home and work life. Workers’ priorities have shifted, perhaps indefinitely. The effects of the pandemic have seen record levels of unpaid overtime in the UK. It has also hindered the closing of the gender pay gap that has been talked about for years. In particular, the pandemic has affected the professional lives of those who have just joined the workforce. It is those I feel perhaps most sorry for. It has forced them to re-evaluate what they want and need from their working lives. Now, and in the future. Brexit, global supply chain issues and the long tail of COVID-19 has created a perfect storm for businesses in the UK. Moving into the new year, it is more important than ever to address the needs of your teams and ensure communication is a two-way street. Hybrid working is here to stay. This year has shown that everyone works differently. Having people clocking in and out at specific times, or using rigid metrics to define performance, is unlikely to result in increased productivity or engagement. In fact, the opposite is likely, and it can be a quick path to a resignation. Rather, in 2022 leaders must harness individuals’ strengths and provide opportunities for employees to develop new skills or embark on a new career trajectory with more room for growth.

Rather, in 2022 leaders must harness individuals’ strengths and provide opportunities for employees to develop new skills or embark on a new career trajectory with more room for growth

MELANIE ROBINSON

Senior HR Director UK, Ireland & Nordics Melanie joined ADP in October 2007 to support the growth of the Sales & Marketing business through strategic thought leadership and the creation and delivery of a human capital management agenda. Melanie has been involved in many global projects and Business Process improvement initiatives across ADP while supporting the International business through periods of rapid growth and change. Melanie supports her business units with her experience and knowledge of best practice HR developments, alongside awareness of labour regulations, to enable the design and implementation of appropriate, costeffective organisational change. Working together in this way, Melanie and her partner units are able to identify and implement effective strategies to drive business growth through leveraging technology, efficiency improvements, market trends and best practice HCM. Melanie is a Fellow of the Chartered Institute of Personnel & Development and holds an MSc in Human Resource Management. She has 20 years’ experience in a variety of HR roles predominantly within the Engineering sector, including the Institution of Mechanical Engineers. Contact: ADP@hellounity.com

CORPORATE KNOWLEDGE MANAGEMENT

The Future Of Corporate Knowledge Management Development After COVID-19 In an effort to grasp the knowledge of executives throughout North America in a post-Covid-19 world, leaders from large corporations operating in a wide range of industries were questioned. Many executives agreed that knowledge management has become a focal point of the executive span of control but has not been associated with organisational internal resources enough to make it an integral part of business success. This article fills this gap by providing a comprehensive framework which incorporates all of the contextual factors that simultaneously impact knowledge management development in corporations in the post-pandemic world. The original value of this article provides an impetus for knowledge management development in corporations. After my discussion with executive colleagues, I have found that organisational knowledge is affected by various internal resources of organisations. Here are some of the ideas that I gathered from executive colleagues leading during the postpandemic world:

1. Corporate Structure

Executive colleagues mentioned that decentralisation encourages organisational communication, and develops a climate of openness for employees to exchange new ideas. Therefore, employees can even implement ideas through delegating the authority of decision-making to their departments. Furthermore, they expressed that an informal structure enhances organisational communication, and the less emphasis on formal language itself could generate more knowledge, because formal procedures and rules can restrict the generation of new ideas. The literature is also rich in this area as various scholars investigated the impact of these structural aspects on various knowledge management processes such as knowledge acquiring, creating, sharing, and utilising.

2. Corporate Culture

When asking executive colleagues how corporate culture can work best for them. They argued that a collaborative culture improves knowledge management processes. They also mentioned that a leader’s ability to create new knowledge and develop more innovative solutions is considerably dependent on the degree to which employees trust them. Accordingly, organisations that exhibit a sense of a high trust environment could positively impact the tendencies of human capital to share their knowledge with others. Another aspect that executive colleagues expressed was learning. Learning is an important requisite for knowledge creation. Firms that stress cultural aspects of learning are stronger in creating new knowledge, and also transferring this knowledge throughout the organisation.

3. Corporate Strategy

In the post-pandemic world, executives identified ‘analysis strategy’ as a component to improve knowledge management performance. Analysis strategy is defined as the degree of tendency for searching of the problems and their roots aimed at generating better solution alternatives to solve them. Executive colleagues argued that analysis strategy is highly related to an organisation’s capacity to generate new ideas and knowledge. In addition, pro-activeness strategy refers to a search for finding new opportunities and proactively responding to current challenges in external environments. The implementation and application of knowledge management projects require the continuous search of a turbulent business environment that needs to be addressed to remain proactive and reduce possible stressors to company performance. We asked executive colleagues how they felt about pro-activeness strategy. They responded that this strategy can be critical for enhancing the performance of knowledge management projects in organisations. Furthermore, they mentioned that a more defensiveness approach enhances efficiency through cutting the costs of the potentiality of future problems that may occur when an organisation remains reactive as opposed to proactive which in turn propels the process of knowledge reuse in companies.

4. Inter-Companies Social Networks

Executive colleagues expressed that intercompanies social networks enhance knowledge acquisition. We asked them so what? They argued that the process of knowledge storing is highly dependent on the extent to which knowledge is transferred by these intercompanies social networks. This transference of knowledge itself can also improve knowledge utilisation and creation within organisations. As a result, inter-companies social networks can be positively related to knowledge management performance.

5. Stakeholder Orientation

Stakeholder orientation is another important aspect of knowledge management performance during the post-Covid-19 world. Stakeholder orientation, as noted by executive colleagues, is directed to enhance the exchange of knowledge with various stakeholders and the application for more effective decisions. The executive colleagues I contacted told me that the knowledge exchanged is experience-based and highly relevant to both context and location, and can facilitate the generation of new knowledge, which represents those decisions and policies created by interacting with various stakeholders. Thus, a necessary precursor to the effective management of knowledge is to have a stakeholder orientation.

Conclusion

This article helps executives build more effective knowledge-based businesses and sustain the impact of the Covid-19 pandemic. In doing this, it provides elaborative insights for executives and senior managers by modeling how knowledge management performance can be affected by company characteristics.

MOSTAFA SAYYADI

Senior Management Consultant at The Change Leader Consulting Inc. in Sydney, Australia. He works with senior business leaders to effectively develop innovation in companies, and helps companies - from start-ups to the Fortune 100 - succeed by improving the effectiveness of their leaders. He is a coauthor of the recently published book, Postpandemic Recovery.

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INTERNATIONAL HR ADVISER WINTER

Why Every HR Professional Needs To Be Aware Of The Changes The Sustainability Agenda Will Bring - And Planting A Tree Isn’t The Answer As the dust settles on COP26, which rather predictably failed to fulfil hopes and promises, the obvious questions for HR professionals are: what next, and how can we contribute? Pandemics excepted, COPs normally take place every year. COP26 was important – not because Scotland was hosting it, but because it is five COPs on from Paris, where it was agreed to limit the rise in global temperatures to 1.5 degrees. Glasgow should have been the Action Plan; the “How”. There are still widely varying views on sustainability and what, if anything, individuals and businesses can do. Some people believe the issue is not as bad as it’s painted; many ask what is the point if China and Russia refuse to play ball; others want to do something, but don’t know what; many are simply confused. I’m not surprised – it is confusing. There are so many different terminologies: carbon neutral, carbon removal, carbon offset, net zero, to name but a few. They all mean different things but instead of explaining them, mostly what we hear about in the press is of businesses planting trees. So, Let’s Clear That One Up. Planting Trees Is Not The Answer. Obviously, it’s not a bad thing to plant more trees, but we produce far too much carbon for trees to be the solution. I won’t bore you with the maths, but to offset the carbon from UK households alone (ignoring businesses entirely), we would have to completely forest an area larger than Wales – and that’s assuming Wales had no trees already. Across the planet, there is physically not enough viable space to plant the number of trees required to offset the carbon we produce. On what then, should the HR sector focus? As the people who will be the conduit between board-level policy and the implementation of the sustainability agenda in the office or on the shop floor, it is important that HR professionals are up to speed with the issues.

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It is increasingly clear that people are becoming more selective about their career choices, and conscious of what companies stand for and what their values are. In attracting staff, HR will have to be able to demonstrate that sustainability is something your company or organisation is invested in. Without that, people will take their talent elsewhere.

It is increasingly clear that people are becoming more selective about their career choices, and conscious of what companies stand for and what their values are Disseminating information about the company’s commitments, and the rate of travel to its goals, will help drive change in attitudes – and clear communication is of the essence in getting messages across not only to staff, but also to customers and the supply chain. It must also be recognised that there will inevitably be resistance to change. Young people in general will be more receptive to new sustainability policies and practices, but people who have been doing the same thing

the same way for most of their career may need some persuading. This is where HR’s talents come in. And to be convincing, it pays to be au fait with the arguments, some of which are detailed below. The key term is Net Zero. Offsetting carbon cannot solve the problem alone. The only solution is REDUCTION. The principle of Net Zero is to reduce carbon output first, aiming for at least a 90% reduction – then offsetting can be used for the last 10%. Businesses which boast about planting trees now are just indulging in PR spin, which should rightly be denounced as “greenwashing”. Clued-up staff will know this and call it out, so as HR professionals, keep your company honest. It is also reasonable to ask why businesses should care. And, if the fact that sustainability is vital for the planet is not reason enough, here is another incentive: how about staying in business? I am not being melodramatic. This is fact. The UK has already signed up to Net Zero by 2050 and, legally, every business must achieve the same. That probably still feels like a long way off, so how about 2023 instead? While COP26 may not have fulfilled all aspirations, a very significant announcement was made by Westminster at the start of the conference, stating that all large businesses and public organisations must have a plan for Net Zero by 2023. You may not be a large business nor public body. But you probably do business with them – or, if not, you are likely to be a supplier to someone else who does – and true measurement runs end to end, including the full supply chain up and downstream. Therefore, if you want to stay part of the supply chain, you must have a plan yourself. And, most companies need to start planning a year before the deadline date – so if you haven’t got this in hand by the end of next year, your business probably won’t survive very long. To make it real, Tesco already announced this step in October. If a business does not

SUSTAINABILITY AGENDA have a plan, and is not measuring and showing improvement, then it will no longer be accepted as a Tesco supplier from next year. The next question then, is what can and should we do. The first step in effecting change is to measure and understand the problem. This means you need to calculate your carbon output, and there are three scopes of measurement:

Scope 1.

The actual carbon a business burns, such as gas usage for premises and vehicle fuel.

Scope 2.

Indirect carbon such as electricity usage, although if you use 100% renewable electricity this counts as zero.

Scope 3.

Everything else upstream and downstream such as business travel or transportation of goods. Every item has a carbon value from its production. This means EVERYTHING. If every single business measured everything, then suddenly it would become a lot easier. Expect regulation in the nottoo-distant future which demands that every single item lists its carbon rating – just as we

have the traffic light system on food today. Once you know how big your carbon footprint is, and what is driving it, you can take action to reduce it. Set a target with a plan to achieve it. Make it stretching but realistic. As sustainability becomes ever more prevalent, consumers, businesses and staff will only want to engage with those taking action, so don’t leave this too late. Keep tracking and keep taking actions to reduce. Once you get down to the last 10%, then, certainly, go and plant some trees. Here are four quick wins: 1. Switch to 100% renewable electricity. You immediately score zero on scope 2. 2. If sales staff are still travelling to press the flesh, encourage them to embrace teleconferencing technologies. The emission savings are remarkable. 3. As your fleet of vehicles comes up for renewal, consider switching to electric. 4. Consider business travel – do you really need to take that flight? Implement an HR policy which makes remote connections the default and travel the exception. In summary, don’t wait around – start your plan now. Don’t worry about what China is doing – focus on what you can do. Do it for the planet. Do it for your children. Do it for your business and staff. If you don’t embrace Net Zero, you will have no business left in less time than it takes a sapling to grow.

NEIL BRADBROOK

Managing Director of Ahead Business Consulting. Neil Bradbrook is an expert in adaptive business strategy and managing change, whose career includes senior roles at General Electric, RBS, and Santander. He formed Ahead Business Consulting in 2019. It helps leaders plan, implement, and engage their customers and staff to drive greater success. Prior to this, he led a 160-strong team, transformation, and digital innovation consultancy, growing it from £11m to £23m. For further information, contact Neil Bradbrook, Managing Director, Ahead Business Consulting, Armont House, Falkirk FK1 5SL. T: 0333 444 4123. M: 07971 954573. W: www.aheadbusinessconsulting.co.uk.

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INTERNATIONAL HR ADVISER WINTER

Hiring In 2022: What Changed In 2021, And What To Expect In The Year Ahead The past two years have been anything but normal for recruitment. HR teams needed to adapt quickly in 2021 when it came to interviewing new talent and successfully onboarding them into the business. The ‘great resignation’ both helped and hindered teams in this regard. The employment market is undergoing a significant transformation, as technology continues to disrupt established ways of doing business. According to the World Economic Forum’s Future of Jobs Report, more than half (54%) of all employees will require re- or upskilling by 2022. This rapid change places an even greater emphasis on companies to find and hire people with the correct set of skills.

In what is likely to be an equally challenging 12 months ahead, what changed for employers this year and what can they expect in 2022? In what is likely to be an equally challenging 12 months ahead, what changed for employers this year and what can they expect in 2022?

Evolve Your Interview Process

The interview process changed over the

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last 18 months with many employees being interviewed remotely and starting new jobs having never met their colleagues in person. With many more jobs available than suitable candidates, top applicants will have their pick of opportunities. That means the interviewers also need to put their best feet forward. This includes getting rid of generic interview questions such as ‘where do you see yourself in the next five years?’ and adapting them to better test candidates’ adaptability and creativity. It’s also important to ask questions that feel specific to your company. You may be sick of video, but it’s not going away anytime soon. Recruitment processes are using video tools more and more, and it is better to embrace it than be left behind. Pre-recorded interviews are a good way for multiple team members to get a feel for a candidate in the initial stages, without monopolising valuable team time interviewing someone who may not be right. This is also a good way to interview candidates in different time zones.

Hire With Remote-First As The Norm

Many companies have embraced the work from home revolution but it’s extremely important to understand whether individual candidates can handle the remote working world. Digital skills are crucial, especially when most contact with clients, employees, managers, or investors will be online. Other important things to consider are home set-ups, video capabilities, internet speed, computer skills, familiarity with key software, and general computer competence. All these factors make remote workers successful, so don’t be afraid to ask about their perspective on working from home and whether they have the right skill set.

With A Remote Mindset, Businesses Can Now Hire Stronger And Diverse Global Workforces

As remote and hybrid work models move into the mainstream, companies are also embracing the opportunity to pursue talent regardless of geographic constraints. Bringing

teams together from an unlimited number of countries now allows businesses to access the very best people from a wider and more diverse range of backgrounds.

It means employers, who have the right digital tools and remote working mindset in place, can now hire - literally - the best candidates from across the globe, giving them a distinct competitive advantage Evidence suggests the diversity of teams themselves makes for better business results. A report from McKinsey found that those in the top quartile for ethnic and racial diversity in management were 35% more likely to have financial returns above their industry means. And according to the Harvard Business Review, a body of research has revealed another benefit of workplace diversity: nonhomogenous teams are smarter.

HIRING IN 2022 It means employers, who have the right digital tools and remote working mindset in place, can now hire - literally - the best candidates from across the globe, giving them a distinct competitive advantage.

Build A Fully Remote Onboarding Process

The shift to fully remote work was a significant burden on companies in 2020, and those not wanting to be left behind again have revamped remote working and onboarding processes altogether. Integrating a new employee into the company culture remotely is where most employers and HR teams get tripped up. As a HR leader or manager, you want a new employee to feel like they understand the team dynamics, get a sense of each person’s unique personality, and grasp the elements that make your company culture special and authentic. To make the most of this widening talent pool, companies need to continually find ways to ensure new employees feel welcome throughout the onboarding process and through company culture regardless of where they are located. One way to address this is to be more creative with your approach. Instead of just meet-and-greets, HR/compliance training, and downloads on relevant information, companies are taking it upon themselves to make sure their corporate culture shines through during the onboarding process. This is especially important now as culture remains a top priority for employees and can be more challenging for companies to foster virtually compared to when their workforce was office-based.

Create Content And Experiences That Are Unique To Your Company

Bringing a new joiner into a company culture is where most challenges come about. After onboarding, new employees should feel as though they are familiar with the team dynamics, get a sense of every team member’s personality, and understand the elements that make a company and its culture special.

Have The Right Tools In Place For Your New Employees

To do a job well, you need the right tools. This age-old concept is more important than ever now that we are all remote-working and onboarding remotely. Employees need the correct apps, systems, and subscriptions in place to be able to work effectively and in synchronicity with each other. The right digital tools can streamline everything from getting paperwork signed to the onboarding experience. Handling paperwork, payroll, and other IT protocols can easily be done with the right digital tools in place like DocuSign.

Communication technology is also paramount in a remote-first workplace. Zoom or video conference tools are now the backbone of our office environment. Other tools include collaboration apps, wiki-based platforms, and project management software that allow multiple people to edit the same work. Investing in this toolkit shows your new employees that you are willing to provide everything necessary so that they can succeed in their new roles. Adopting a remote-first approach can also help businesses explore and improve their creativity and allow old and new employees to fulfill their potential. Collaboration software should be a high priority as it helps to reflect the normal pace of internal communications and fits with the modern user experience requirement, making the employee’s journey both productive and simple at the same time. This then allows teams to work together on ideation all around the world, each bringing their own unique perspective and making new employees feel immediately part of the process.

Company Culture Is Still King In 2022

Every company is different, but all are brought to life by their people and the culture they all bring to the team. One of the key challenges that companies are facing with interviewing and onboarding is bringing an employee into that culture. When interviewing new candidates, and particularly if they are likely to be working remotely more often than not, processes will need to be re-evaluated to help find the best possible fit, not only for the role itself but also for company culture.

One way that can help with this is to clearly set out communication processes and preferences early on. If teams primarily use Slack, Teams, or WhatsApp, make sure a new hire knows that preference. You might have tools that you only use for specific types of conversations, so make sure a new employee understands those nuances and can engage in the right way on the right platform.

Anyone hiring for 2022 should take a strategic look at their priorities Anyone hiring for 2022 should take a strategic look at their priorities. The working climate and landscape have changed, and the most important considerations may have dramatically shifted over the past year. Hiring teams should be encouraged to continually evolve to meet these continual shifts and changes. Whether that’s asking unexpected questions or having the right tools in place, you’ll be surprised how much difference it makes in building the right teams for your company.

ALEKSANDRA SULIMKO

Chief Human Resources Officer at TheSoul Publishing We’ve enlisted our creative team to design and execute onboarding videos that we can share with all new hires. Our employees tell us they love the strategy and that it helped them understand the corporate DNA of TheSoul Publishing. This video creation is a part of onboarding that feels more natural in a remote work world. It’s something that makes the experience better than an office tour, directions to the kitchen, and a list of names and titles of every other person at the company, which can certainly overwhelm a new joiner. Creating videos allows a company to give new employees a “look under the hood” and understand what makes the organization special, and – as a result – remind them why they joined. It's also important to remember that the more a company grows, the more cultural alignments need to be made. As well as onboarding new starters, TheSoul Publishing also launched a re-onboarding programme for all 2,600 employees who joined the company before 2021. This was to ensure knowledge consistency when it comes to knowing what the company culture is and how we interact with each other.

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INTERNATIONAL HR ADVISER WINTER

5 Cybersecurity Myths That Are Compromising Your Data As the importance of cybersecurity has increased, so has our awareness of it. Poor cybersecurity has been identified as the most pressing threat to businesses today. Issues with cybersecurity often stem from a lack of cybersecurity awareness. In fact, according to the 2020 Cyberthreat Defense Report, a lack of cybersecurity awareness was identified as the biggest detriment to an organisation’s cyber-defences. The reasons for this lack of awareness include no training on cybersecurity and persistent misinformation. Despite more media attention than ever, there are still some common misconceptions about cybersecurity that put businesses at risk. Here, we bust the top myths around cybersecurity and how you can address them.

The reasons for this lack of awareness include no training on cybersecurity and persistent misinformation 1. Cybersecurity Isn’t My Responsibility

IT security is still viewed as the IT team’s problem when that’s not the case at all. All employees have a responsibility to ensure the security of their business. Your people are the frontline of your defence and represent its biggest attack surface. They

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are the people hackers are targeting with phishing campaigns because they’re banking on a lack of security knowledge. This myth can have serious consequences if your people don’t practise basic cybersecurity hygiene. If they don’t take care when clicking links in emails or downloading software, they could compromise your business’ security. Education is critical because your employees need to understand why cybersecurity is so important and that they have a role to play. Training will also equip them with the skills to spot threats and change their behaviour for the better.

2. Hackers Don’t Target Small Businesses

If media coverage is anything to go by, only large organisations like Yahoo, Uber and Marriott get attacked, right? Wrong. This myth is particularly persistent because of mainstream news and the fact that hackers can potentially extort higher sums of money from these businesses. But the Federation of Small Businesses (FSB) reports that UK small businesses are targeted with over 10,000 cyberattacks a day. The same report highlights widespread weak security procedures in small businesses, including a lack of formal password policies, not installing updates and not using security software. While the financial gain from targeting enterprises is more lucrative, the stakes are higher for small businesses. Cybercriminals know this. A cyber-attack could destroy a small business and force it to close, and that’s why one small business is successfully hacked every 19 seconds in the UK. Small businesses which have a limited cybersecurity budget should tap into the knowledge of an IT support service, who can advise on the most suitable defences.

3. My Passwords Will Keep Me Safe

security is length. Software can crack short passwords, no matter how “complex”, in a matter of days. But the longer a password is, the more time it takes to crack. The recommendation is using a memorable phrase - from a book or song, for example that doesn’t include special characters.

There are still two long-held misconceptions around passwords. The first is that adding capital letters, numbers or special characters to your one-word password will make it uncrackable But determining a strong, (almost certainly) uncrackable password is only the first step. If the service you’re using is hacked and criminals gain access to your password, you’re still vulnerable. That’s where twofactor authentication (2FA) and multifactor authentication (MFA) come in. These methods require you to set up an extra verification step. When you log in, you’ll be prompted to enter a security code which will be sent to your phone or even accessed via a dedicated verification app. That means if a hacker ever gets their hands on your password, they’ll still be thwarted.

5 CYBERSECURITY MYTHS 4. A Basic Anti-Virus Will Be Enough To Protect My Business

Gone are the days where your McAfee or Avast anti-virus solution will be enough to protect your business. Now, there are dedicated tools to fight against specific threats like ransomware. A synchronised approach to security, whereby your solutions all interact with one another, is generally accepted as the most robust. Your security solutions should cover your endpoint, firewall, network connections, email and more. In addition, backup and disaster recovery solutions are recommended to mitigate any potential incidents.

Gone are the days where your McAfee or Avast anti-virus solution will be enough

5. We Only Need To Protect Against Hackers

While hackers pose an enormous threat to your business, you can’t ignore the possibility of malicious insiders or even staff accidents. One of the most highly-publicised accidental breaches was a Heathrow Airport staff member losing a USB stick with sensitive data on it. Luckily, the person who found it handed it in rather than using it maliciously. The company was still fined £120,000 for its “serious” failings in data protection. It’s also all-too-easy for an employee to accidentally email a spreadsheet with sensitive data outside of the company. Equally, a disgruntled employee who has access to sensitive employee or customer information could willingly steal or share it. Locking down access to your core systems and ensuring fewer employees have access to them can help you protect against this. For accidental breaches, implement policies that state removable devices must be encrypted. You can also configure your email settings to block certain attachments from being shared outside of your organisation. Are you or your staff members guilty of believing any of these myths? References: • www.cyber-edge.com/cdr/ • w w w . s e c u r i t y m a g a z i n e . c o m /

Are you or your staff members guilty of believing any of these myths? articles/90688-small-businesses-in-theuk-suffer-10000-cyber-attacks-daily • www.csoonline.com/article/3440069/ uk-cybersecurity-statistics-you-need-toknow.html • www.infosecurity-magazine.com/news/ longer-password-harder-to-crack • www.ncsc.gov.uk/guidance/mitigatingmalware-and-ransomware-attacks

BARRY O'DONNELL

Barry O'Donnell is the Chief Operating Officer at TSG, offering managed IT services in London, with expertise across a range of areas including Office 365, Dynamics 365, document management and business intelligence.

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