International HR Adviser Winter 24/25

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International HR Adviser

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The Leading Magazine For International HR Professionals Worldwide

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Of Supporting Global HR Professionals Worldwide R E C E N T AWA R D S :

Best Online HR Media Platform HR - SME News HR Media Platform of the Year - Corporate Livewire Best Specialist HR Magazine 2024 - Media Innovators Awards FEATURES INCLUDE: Behind Japanese HR Leadership Success Global Tax Update • The Future Of Digital Nomadism Five Tactics Turning Strategic Plans Into Actionable Results Hybrid Working: Global Mobility To Attract And Retain Talent Developing Your Globalforce: Where Talent, Skills And Data Converge Ensuring That Talent Mobility Benefits People, Businesses And Communities Corporate Travel Policies Must Evolve Amid A Legionalla Lottery For Business Travellers ADVISORY PANEL FOR THIS ISSUE:

CONTENTS

In This Issue 3

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Developing Your Globalforce: Where Talent, Skills And Data Converge Teji Susheela Vishwanath & Auster Taylor, Deloitte LLP

Hybrid Working: Global Mobility To Attract And Retain Talent Karen McGrory, BDO LLP

Global Tax Update Karen McGrory, BDO LLP

Ensuring That Talent Mobility Benefits People, Businesses And Communities Olivier Meier, Mercer

The Future Of Digital Nomadism Kristin White, Sterling Lexicon

Behind Japanese HR Leadership Success Mostafa Sayyadi & Michael J Provitera

Five Tactics Turning Strategic Plans Into Actionable Results Drew Yancey, Teleios Strategy

Urgent Employee Health Warning: Expert States ‘Corporate Travel Policies Must Evolve Amid A Legionella Lottery For Business Travellers’ HydroHawk

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Directory

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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 In Loving Memory of Assunta Mondello Origination by Debbie Morgan and Printing by Impress Print Services Ltd The International HR Adviser team work with a British planet positive printer, with a commitment to best practice environmental management including achieving the top score in Europe for the Green Leaf Awards, full FSC Certification, and ISO14001. Well managed sourcing of both virgin pulp and recycled papers, in addition to carbon balancing ensures that you can enjoy International HR Adviser with a clear eco conscience.

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INTERNATIONAL HR STRATEGY

Developing Your Globalforce: Where Talent, Skills And Data Converge In a recent workshop we were in discussion with several HR and talent leaders from organisations with global footprints and there was almost unanimous agreement that the current global landscape presents something of a perfect storm for business. Political and economic uncertainty allied with rapid technological advancements and regulatory change are shaking the foundations of traditional business models. To navigate this new reality, the consensus was that businesses are prioritising both cost optimisation and strategic global expansion – competing agendas that require a shift to an agile and global pool of talent and capability.

At the heart of this shift lies a fundamental challenge: a widening global skills shortage colliding head-on with increasing demand for new skills. Businesses are caught in the middle, feeling the pressure to “do more with less” as they innovate and grow, whilst struggling to find and retain the talent they need to succeed, making it critical for organisations to recalibrate their global talent strategies.

So, how can organisations navigate this complex landscape and emerge as leaders in the constantly evolving future of work? The answer lies in moving beyond traditional siloed methods and embracing a global mindset that leverages technology and data to build a truly agile and connected global workforce.

The good news is that the technological advancements that have been pivotal in causing the business and talent landscape to shift have also enabled a truly connected global workforce.

Specialist Talent Marketplace platforms are offered by numerous providers and promise easy connection between employee skills, wherever they are in the world, and projects or jobs.

Such platforms can supercharge organisations’ ability to maximise the value delivered by their workforce. It is understandable therefore, that many are almost evangelical about the new

dawn of talent management that appears before us, but is it really as simple as making use of the right platform?

The Challenge

Increasingly, organisations across all sectors are recognising the challenge that the global skills shortage presents and are working to proactively address this. In analysing their approach however, we often see a disconnect in the way organisations understand, source and manage their global talent. This disconnect hinders their ability to fully tap into their most valuable asset, their people, and is manifested in three key challenges:

Increasingly, organisations across all sectors are recognising the challenge that the global skills shortage presents and are working to proactively address this 1. A Fragmented Approach To The End-To-End Talent Cycle

An experienced HR leader recently commented on the state of the function, aptly describing what we are seeing: “People think HR is one unified function, but we

are an aggregation of different groups – recruitment, learning, employee relations, reward etc., who have been brought together under the umbrella of HR”. This challenge is further exacerbated in the global talent cycle. Strategic Workforce Planning (SWP), which helps organisations understand their current and future skills requirements, has made something of a comeback but has yet to be truly defined and embedded within many organisations. Among those who do have SWP teams, their work is rarely made available to wider HR teams. SWP insights are critical to HR professionals in understanding the skills required to better assess if they are already available internally, need to be sourced across borders, or if they need to be sourced externally (including cross-border).

Talent management is typically divided into independent teams focusing on acquisition, mobility, performance management and learning, and these teams rarely work together formally to address the talent challenges at hand. Without a unified approach, the strategic value that can be delivered by each team separately will be limited.

2. A Fragmented Approach To Mobility

We are seeing a steady rise in Internal Mobility programmes. These programmes enable employers to develop scarce skills and create agile pools of talent whilst enabling employees to explore and stretch into different internal roles. This rise in Internal Mobility is a proactive way in which organisations are addressing skills shortages and has been underpinned and empowered by Talent Marketplace platforms. There is much debate about whether these programmes, which tend to sit within HR, should be managed by the Learning and Development function, due to their connection with skills development or if there is a necessity to establish a ‘Head of Internal Mobility’ role. While these are worthwhile debates, the one trend that should also be considered is why these programmes are being built as independent of International Mobility programmes that enable physical and virtual cross-border sourcing and deployment of talent.

We see this siloed approach despite both internal and international mobility sharing

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common goals to ensure that the right talent is in the right place at the right time, to improve talent retention, to develop a more agile global workforce in sync with business need, and to develop scarce and critical skills. Separating the two programmes limits both the organisation and the employees in their growth and their ability to access wider pools of opportunity.

Separating the two programmes limits both the organisation and the employees in their growth and their ability to access wider pools of opportunity 3. A Fragmented Approach To Technology And Data

A natural outcome of the two points above is that people-related technology within organisations typically exists to address the specific need of each siloed function, rather than end-to-end global talent management.

This means that many organisations have to create bespoke solutions or manual workarounds to address the needs of the global workforce, leading to inefficiencies and increased exposure to risk. Whether it’s individuals selected to work remotely on an international project creating a corporate permanent establishment risk, or a manager finding out after the event that their identified resource has immigration requirements that delays their move and increases cost, judgements are being made by people without the connected view necessary to make optimal decisions. This means the unencumbered connection between skills and jobs promised by Talent Marketplaces fails to be realised across all employees as international considerations for cross-border moves are often put into the ‘too hard basket’. Even when they don’t get derailed by the challenges, the

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inefficiencies from lack of awareness or streamlined processes, mean increased costs are incurred to make it work.

In a world where international boundaries of work continue to break down, we still see organisations setting up siloed functions and approaches. While businesses are increasingly looking for a connected ecosystem and optimised tech-stack, many organisations continue to implement ‘point solutions’ that require manual workarounds to get the processes and data they need. The prevailing economic climate, with its emphasis on ‘doing more with less’, makes it crucial for organisations to ensure that they optimise their global talent strategies and technology for maximum efficiency and impact.

Breaking Down The Silos: Towards A Globalforce

Imagine a world where an employee in London with a specific skillset could seamlessly contribute to a project in Singapore, or where a high-potential employee in New York could swiftly gain valuable experience through a short-term assignment in Berlin. This is the true power of a connected and coherent global workforce.

Building this 'globalforce' requires more than new technology, it requires a fundamental shift in mindset and one that results in restructuring the way talent and HR is managed globally.

To thrive in this new landscape, organisations should view their entire workforce as a single global entity. To effect this, it may be worth establishing an integrated function, perhaps with a dedicated leader and team. One approach is to develop a Global Talent Centre of Excellence (CoE) led by a Global Talent Leader. A CoE can bring together the internal mobility and international mobility functions, and house specialised subfunctions for strategy, operations, compliance, technology and employee experience, thus ensuring a holistic approach to global talent requirements.

An effective CoE will work with business and HR leaders to: • Establish a global skills inventory: The pivot to skills-based organisations able to utilise skills across the globe requires a global/unified skills inventory. This inventory is key to ensuring that workforce data is standardised and connects internal job roles with global career opportunities • Integrate global workforce planning: Combining workforce plans from internal and international mobility teams to ensure consistent resourcing strategies across borders • Centralise Technology and Data: Integrated platforms that cover global recruitment, career development, mobility management, and retirement planning in one ecosystem

• Streamline Global Talent Acquisition: Maintain a central database of internal and external candidates, including skill profiles, certifications, and mobility readiness to create and use truly global talent pools. An aligned focus from an integrated function will allow companies to maximise value from internal talent, whilst keeping an eye on the external market to supplement skills as needed • Global Talent Development and Career Pathing: Offer training programmes and leadership development that prepare employees for diverse roles across functions and geographies and establishes clear pathways for both internal moves and international assignments. Pair employees with mentors to guide their career progression, including cross-border roles • Compliance and Risk Management: Maintain consistent global standards on policies for tax, labour laws, and visas across regions however the talent is sourced. This will lead to more uniform use of compliance tools to proactively manage and flag potential risks in employment contracts, payroll, and benefits management.

Embracing this borderless approach, where opportunities are open to all employees, regardless of location will not only unlock a wider talent pool but also fosters a more diverse and inclusive workplace, enriching the experiences of all involved.

Maintain consistent global standards on policies for tax, labour laws, and visas across regions however the talent is sourced Talent Marketplaces For The Globalforce

A global mindset shift is critical in the way global talent management technology is adopted, and the most immediate opportunity in this space is likely the

INTERNATIONAL HR STRATEGY deployment of Talent Marketplaces. Whilst there are many ways to address technology strategy, the important thing is that the global needs are addressed at the outset, and not after the event. Mismanaging the global rollout of any HR-related platform will significantly reduce ROI, or worse, hamper global adoption.

To effectively navigate this evolving landscape, global workforce professionals must proactively define their approach to Talent Marketplace integration. There are three primary options to consider, each with its own implications: Reactive Operational: This approach focuses on addressing global mobility considerations within existing frameworks and only after a cross-border move arises during the Talent Marketplace process.

It's a reactive approach that may be more suitable for organisations with limited initial international activity. However, it carries a higher risk of delays, compliance issues, and unmet expectations.

Proactive Operational: This approach takes a step further by identifying and understanding the global mobility needs up front and integrating them into Talent Marketplace processes. However, the processes of talent identification and cross-border considerations are dealt with separately. A proactive approach can ensure a smoother end-to-end experience for employees but may still miss out on opportunities for improved strategic talent management.

Proactive Strategic: This approach champions a holistic integration of talent and global mobility considerations from the outset. By embedding global mobility expertise into the design and implementation of the Talent Marketplace, organisations can proactively address potential challenges and leverage opportunities for strategic workforce planning. This proactive and strategic alignment allows for greater cost control, agility, risk mitigation, and the ability to leverage global talent pools effectively.

While the optimal approach will depend on an organisation's specific circumstances, priorities, and risk appetite, the proactive strategic approach offers the most comprehensive and future-proof solution.

Regardless of the method adopted, once clarified, there will be many actions flowing from the chosen approach to enable the globalisation of the Talent Marketplace.

Getting this right means that Talent Marketplaces can leverage their data and intelligent matching algorithms to break down geographical barriers and connect individuals with opportunities that align with their skills, interests, and career goals. This not only benefits employees by providing them with expanded career development opportunities but also empowers organisations to: • Improve Business Alignment: Ensuring that critical projects are staffed with the best talent available globally, regardless of location • Enable Proactive Planning: Gaining insights into global talent pools, anticipating future skills need, and proactively address potential gaps • Boost Employee Engagement: Fostering a culture of continuous learning and development, empowering employees to take control of their careers and reaching their full potential • Drive innovation: Bringing new ideas to the table through improved diversity of people and thought.

Creating Your Globalforce

The way we work has changed and will continue to evolve. The rise of remote work, the increasing demand for new and specialised skills, and the ever-growing importance of diversity and inclusion are all contributing to a more global and interconnected workforce. Organisations that embrace this shift, break down silos and leverage technology to connect their people and opportunities on a global scale will be the ones that thrive in the future.

By utilising the latest technology to support their global workforces, organisations can unlock a world of possibilities, driving innovation, fostering collaboration, and creating a more engaged and fulfilling work experience for all. These factors will really propel your mobility programme, and help turn your valued global workforce into a truly impactful globalforce.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities. ©2024. For information, contact Deloitte Global.

TEJI SUSHEELA VISHWANATH

Director - Global Workforce Consulting Deloitte LLP +44 20 7007 7378 tsusheelavishwanath@deloitte.co.uk

Teji leads Global Workforce Strategy, designing and implementing plans to align talent acquisition, development and deployment with organisation's goals across international markets.

She has over 15 years’ experience in helping organisation understand how they can transform their approach to global talent to ensure they have the right people in the right places at the right time. She also focuses on helping global mobility programmes transform their strategic approach to impact all operational areas – onboarding, policies and processes, technology, offshoring and change management. www.deloitte.co.uk/globalworkforce

ALISTER TAYLOR

Director – Global Workforce Analytics Deloitte LLP +44 20 7303 0403 alistertaylor@deloitte.co.uk Alister leads the Global Workforce Analytics & Digital Products team within Global Employer Services and has 25 years’ experience advising on global workforce operations. Having witnessed the evolution of talent management in this time, and gained insight into the impact of data and digital services, he has a unique perspective on the globalisation of Talent management, and the benefits that can be delivered by Talent Marketplaces. www.deloitte.co.uk/globalworkforce

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INTERNATIONAL HR ADVISER WINTER

Hybrid Working: Global Mobility To Attract And Retain Talent The global talent landscape has shifted dramatically in the past five years, as the Covid-19 pandemic forced organisations to rapidly adopt remote working practices to, quite frankly, keep the lights on.

This, alongside other global macro trends (limited economic growth in the OECD, quantitative easing and aging populations etc.), has driven three headlines for managing talent: 1. Traditional talent pools are stretched thinner than ever before, as more people voluntarily leave the workforce or relocate out of traditional, geocentric hubs.

2. Many employees in the service economy now expect at least some degree of flexibility in how and where they work.

3. Most organisations have the tools and know-how to facilitate remote working.

By adopting a more flexible approach to where and how employees work, companies should tap into the vast reservoir of skills and expertise that transcends borders to augment their existing workforce. I use the word should

Once you have identified the right approach – or indeed blended approach – for your organisation, you can conduct benchmarking per the typical process 6

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here with the utmost intent. The reality is your competitors are, or will very shortly be doing so – and reaping the benefits.

To be clear, this isn’t to say that adapting to this new paradigm isn’t without its challenges. It requires careful investment and people management to ensure that remote workers integrate with existing teams - e.g., by co-locating with others with some regularity. It also raises critical questions around administering equitable compensation programmes, complying with local laws/taxes/regulations, and cultivating inclusive and diverse teams.

A Global Approach To Compensation

One of the most pressing challenges to establishing a global hybrid workforce is setting out a fair and competitive compensation strategy, which is essential to both attract and retain talent.

Traditional approaches to benchmarking pay are often location-specific, reflecting the market rates in a particular geographical area/ sector. However, when teams are spread across different regions, this model can lead to significant disparities and perceptions of inequity – especially without proactive messaging from employers.

To address this, employers should consider: A. Using “global benchmarks” based on the highest paying markets for globally in-demand talent.

This ensures that compensation is competitive on a global scale, which is crucial for attracting and retaining top talent in specialised fields. For example, I have fielded many calls from distressed clients based in low-cost economies who are facing the prospect of large multinationals tempting their teams with US-based salaries (sometimes up to four times their current salary) to do the same job, without having to relocate.

B. Using “hub benchmarks” based on the organisation’s HQ location or where the majority of existing employees are located. This can then be adapted globally based on relative cost-of-living data.

This prioritises existing workers not feeling like they’re getting a worse deal than their globally hybrid counterparts, while still giving the organisation some scope to pay above local market rates to secure the necessary talent.

Once you have identified the right approach – or indeed blended approach – for your organisation, you can conduct benchmarking per the typical process. That is: 1. Identify market rates: Research and analyse compensation data from the relevant markets.

2. Assess internal equity: Ensure that any compensation structures maintain fairness within the organisation – or have a plan to address them in real-time.

3. Consider cost of living adjustments: Adjustments may be necessary to account for significant differences in the cost of living – even within regions/countries. However, these adjustments should not compromise the competitiveness of the offer.

4. Ensure compliance with local regulations: More on this below.

5. Communicate: This is the most important step, regardless of your chosen approach.

Clearly articulate the compensation strategy to all employees and spend time proactively addressing likely questions / concerns. Transparency helps build trust and understanding, as well as mitigating potential concerns about why pay may vary across different locales.

Global hybrid working presents unique challenges in employment law due to varying legal requirements across jurisdictions

TAXATION Ensuring Compliance With Local Regulations

Global hybrid working presents unique challenges in employment law due to varying legal requirements across jurisdictions.

Compliance With Local Employment Laws Ensuring compliance with local regulations is crucial for a stable and fair working environment, especially where employees may be working across different regions and jurisdictions and may be subject to different employment laws, time zones, and working conditions.

The applicable employment laws may depend on the temporary or permanent nature of the global hybrid working arrangements, what the employee's usual place of work is, or, if no usual place of work can be established (when employees work in various countries for example) on where the establishment that hired the employee is located.

Local employment laws differ significantly from each other, for example, around dismissal laws, continuous payment of wages during illness, accrual of holidays, working hours, overtime and mandatory rest periods (time zone management).

Employers are advised to tailor their policies and their individual employment contracts to comply with each jurisdiction where employees work. Determining which employment laws and regulations apply may require careful consultation with local legal experts to ensure all relevant regulations are being followed.

Health And Safety Obligations And Monitoring Sick Employees Another important item to take into consideration as an employer facilitating global hybrid working is the continuous responsibility for employees’ health and safety, also when working remotely.

This mean s that e m p loye rs m u s t ensure a safe and healthy workplace, regardless of the work location. This can be truly complex, as the employer has less control over the remote work situation. That is, however, in itself no reason for employers to skip out of this obligation as many jurisdictions impose strict regulations on conducting risk assessments for home workspaces and providing appropriate training and equipment (e.g., ergonomic furniture).

Establishing clear policies regarding remote work and working abroad may provide clarity and guidance for both employers and employees in this regard.

Rights and obligations following from the applicable employment laws relating to sickness and disability of an employee, especially when it comes down to monitoring sick employees in relation to

any re-integration obligations, are also important considerations when it comes to hybrid working. Establishing clear policies that are in line with applicable employment laws can provide clarity and ensure compliance with local regulations.

Miscellaneous Some other important aspects to consider include: 1. Social security and taxation, which may require careful planning and coordination to ensure that all relevant taxes and social security contributions are being paid in the appropriate jurisdictions.

2. Aspects regarding obtaining a (possibly) required residence or work permit.

3. Coverage of (liability) insurances. It is important for employers to provide clarity on which insurances in crossborder matters apply, if insurance coverage will need to be extended and how liability is regulated.

Of course, employers should also be mindful of any privacy law rights and obligations following from the GDPR and/ or other privacy regulations in countries outside the European Union (where the GDPR does not apply and may be in conflict with local privacy regulations) to ensure that not only personal data of employees, but also company data is being handled in a compliant manner.

Making It Happen

The phrase “having the right people, in the right place, doing the right thing” has long been put forward as a mantra for HR teams.

In the old world “place” meant somewhere specific, be that in an office, farm or shop. Today that “place” can be virtually anywhere – and everywhere. With the task of securing the right talent tougher than ever before organisations should leverage this new reality to their advantage.

Proactively establishing a global hybrid workforce in the right way will help set organisations up for long-term success, by unlocking additional talent pools, driving innovation and baking resilience into their workforce. In other words, it’s a no brainer.

In other words, it’s a no brainer

Cultivating Inclusive And Diverse Teams

A global hybrid workforce inherently promotes diversity. By tapping into talent from various regions, cultures, and backgrounds, organisations benefit from a rich tapestry of perspectives.

T h i s d i ve rs i t y fos te rs i n n ovat i o n , enhances problem-solving, and better reflects the global customer base many companies serve.

Moreover, offering hybrid working more generally can help attract candidates who may have been excluded by traditional working models. For example, individuals with caregiving responsibilities, disabilities, or those who prefer non-traditional work hours can contribute significantly when given the opportunity.

Importantly, inclusive practices should extend beyond hiring to encompass onboarding, team integration, and career development. Organisations must cultivate a culture that values and leverages the unique contributions of each employee. This can include providing soft-skills training, establishing extracurricular employee groups to build relationships outside of work, specific tasks, and investing in travel programmes to allow teams to meet in-person with some level of regularity.

KAREN MCGRORY

Karen McGrory is head of expatriate Tax Services at BDO LLP. She has over 30 years’ experience in the field of expatriate taxation. Karen is indebted to Matt Smith, Senior Manager, and Corina Roks, Head of BDO Legal, for their major contributions to this article.

BDO is able to provide global assistance for all tax issues arising from an internationally mobile workforce. If you would like to discuss any of the issues raised in this article, please do not hesitate to contact Karen McGrory on +44 (0)20 7893 2460, email karen.mcgrory@bdo.co.uk.

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SAVE THE DATE 2025 Global HR Conference

You are invited to join us for International HR Adviser's annual Global HR Conference

on Monday 16th June, 2025 at The Royal Automobile Club, Pall Mall, London.

Our annual event offers readers the opportunity to network with other Global HR Professionals and to attend an event that will give you informative and educational advice on various aspects of Global Mobility

This event is FREE TO ATTEND To register your interest in attending this event, that is for Senior Global HR Professionals only, please email helen@internatonalhradviser.com

GLOBAL TAXATION

Global Tax Update

Relocation?

With many countries now offering beneficial tax regimes for new residents, where will your workforce decide to relocate? And are you ready for the risk and filing obligations that come with international remote working?

As ever, care needs to be taken with an internationally mobile workforce, especially keeping on top of any rule changes in all jurisdictions you have people (See next page).

With continued changes to current rules across the globe, make sure that you are up to date with what’s new. Check you have read and understood the small print, as a recent case from Switzerland on accident insurance shows.

UK, PORTUGAL, THAILAND AND NEW ZEALAND

Will your workforce decide to relocate?

UK: The UK’s first female Chancellor, Rachel Reeves MP, delivered the new Labour government’s first Budget on 30 October.

The Government followed through on their plans to abolish the current rules for UK resident non-domiciled individuals from 6 April 2025. As expected, the existing regime will be replaced with a residence-based test that sees the introduction of a four-year foreign income and gains (FIG) regime and a ten out of twenty years residence regime for inheritance tax on non-UK assets.

Portugal: Following an unexpected announcement in Portugal’s 2024 Budget that the Non-Habitual Resident regime (NHR) would be terminated effective 1 January 2024, the Portuguese Government almost simultaneously introduced a new regime with some tax holidays and exemptions. The new rules are again

focused on individuals, employees, and self-employed individuals that move their tax residency to Portugal and meet specific requirements regarding their activities.

The rules are now geared to granting relief for active income earners, employed or self-employed, that perform technical, scientific, or academic roles in R&D projects for production and development, academics, and start-up companies.

Additionally, the so-called “return regime” has also been revisited and reviewed in 2024 to encourage ex-residents. It offers a 50% exemption on income from employment and self-employment, capped to the upper limit of the first bracket (EUR 250,000) of the individual tax code.

Thailand: A new type of visa has been launched - the “Destination Thailand Visa” (DTV) - designed to attract digital nomads and remote workers from 93 countries.

This new type of visa is part of the Thai government’s efforts to boost tourism and attract more visitors. The DTV is a multipleentry visa that allows its holder to stay in Thailand for up to 180 days per visit, with the option to extend for an additional 180 days each time. The DTV is valid for five years, which makes it attractive to digital nomads or remote workers who cannot meet the required experience and financial conditions under the Long-Term Residence (LTR) visa scheme. Given the favourable conditions for DTVs, the Thai Government is not expected to provide tax concession for DTV holders.

New Zealand: For those thinking about returning home to New Zealand or relocating there for the first time – while New Zealand has a comprehensive income tax regime, there is no capital gains tax, gift duty,

death taxes or stamp duty. As an incentive to attract talent and encourage citizens to return, the New Zealand Government has introduced the transitional residency exemption, where those who qualify can be temporarily exempt from paying tax on most types of overseas income. Where you qualify, you will not have to pay New Zealand tax on foreign-sourced passive income for four years.

Other European countries with similar incentive regimes include Italy and Spain.

Italy: Individuals who have not been tax residents in Italy for at least nine of the previous ten years may pay an annual flat tax of €200,000 (increased by €100,000 from 7 August 2024) instead of taxes on overseas income and assets. This regime can be applied for up to 15 years.

Spain: Meanwhile, there were changes made in 2023 to the expatriate tax regime (commonly known as the “Beckham” tax regime) which provides for a 24% rate of income tax for qualifying expatriate employees on annual income of up to €600,000. The changes are designed to encourage more expatriates to work in Spain and can now apply where an individual has a contract which permits them to work remotely in Spain. Other changes reduce the numbers of years the individual is required to have been non-Spanish resident before the assignment from ten to five years.

Personal Relocation Choices Where an employer is not instigating or supporting a relocation, they should be clear with any IMEs looking to relocate that they should take specific legal and tax advice personally on how any given regime would apply to them. This should include advice on their legal right to work there. In addition, employers need to make clear that employees are responsible for their own tax position.

The UK Four-Year FIG Regime A Closer Look From 6 April 2025, the current remittance basis regime will be replaced with a new residence-based test. The new regime will be available for four years starting from 6 April 2025 to any individuals who have been non-UK resident for at least the previous ten tax years.

During these four-years, new arrivals to the UK will not be subject to tax on their foreign income and gains, nor on distributions from non-resident trusts - these can be brought into the UK freely without attracting a tax charge. Once the four-year period is over,

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individuals will be taxed on their worldwide income and gains in accordance with the normal tax rules for UK residents.

With the introduction of the four-year FIG regime there will be some transitional provisions for existing non-doms. UK resident individuals who have previously claimed the remittance basis and have unremitted FIG arising before 6 April 2025, can elect to designate all or part of that FIG, and pay tax at a reduced rate of 12% for the tax years 2025/26 and 2026/27 or 15% for the tax year 2027/28. Employers should revisit their global mobility tax policy in view of the potential attractiveness to IMEs of remitting previously unremitted (and untaxed) earnings as a result of the reduced 12% tax rate. The timing will be particularly relevant to US taxable IMEs given the way a foreign tax credit is claimed for US tax purposes.

A capital gains tax rebasing of non-UK sited assets will be available to those who have historically claimed the remittance basis for any tax from 2017/18 onwards, but cannot benefit from the four-year FIG regime. Assets will be rebased to their market value as at 5 April 2017.

The UK will move to a residence-based system from 6 April 2025 that will see IHT being charged on worldwide assets for individuals who have been UK resident in ten out of the last twenty tax years. Such individuals will remain within the scope of IHT for up to ten years following exit from the UK, and the IHT ‘tail’ will depend on how long they were resident in the UK. The exemption to travel costs incurred by non-dom employees that are funded by employers when they come to the UK, and periodic travel back to their home country will be reduced from its current 5 years to 4 tax years after 5 April 2025.

We await details of how the rule changes will impact UK resident, and currently nondom IMEs, and their employers, when dual contract arrangements are in place.

BDO Comment The global competition for talent also extends to countries trying to attract and retain residents.

The emergence of new ways of working has led to many organisations incorporating hybrid working arrangements as part of their talent attraction and retention strategy, with a number of businesses allowing their workforce to work flexibly overseas.

For some, the opportunity to work from another country is an exciting essential in balancing life and family needs. However, for organisations that want to grant flexibility to staff working overseas, it’s important to understand the various areas which need to be managed, in order to avoid unnecessary cost and administrative compliance arising.

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Employers need to ensure they have an appropriate international remote working policy in place, which is sufficiently flexible for your employees whilst reducing the risk and commercial obligations involved for your business. Where the demand for flexible working requests within your business is particularly high (e.g. 500 or more per year), employers should also consider techenabled support to streamline the process and track requests.

INDIA, IRELAND, UK

Pension reform and evolution continue across the globe In India, an employee’s contribution to the Provident Fund (PF) is deductible if the same is paid on or before the ‘due date’. There were conflicting judicial views on the ‘due date’, which were laid to rest by India’s Supreme Court wherein it was held that an employee's contributions, if not paid by the due date specified under the relevant Act, were not allowable. A lower court recently had occasion to examine whether the principle laid down by the Supreme Court decision is applicable to all the proceedings under the IT Act. It concluded that the Supreme Court declaration of law is applicable to all proceedings.

Ireland’s Automatic Enrolment Retirement Savings System Act 2024 was signed into law on 9 July 2024, with the goal of significantly improving pension scheme participation rates.

The act is expected to enter into effect in 2025, although the exact date has not yet been announced. Auto-enrolment contributions will be phased in over a decade, with both employer and employee contributions starting at 1.5% and increasing every three years by 1.5% to a maximum of 6% by year 10.

In the UK Autumn Budget, the key announcement for pensions was the effective abolition of the IHT exemption from 6 April 2027. The increase in employer’s NIC to 15% from April 2025 makes salary sacrifice arrangements for pension contributions more attractive for employers as part of their overall remuneration packages for employees. This is especially true as a rumoured employer’s NIC charge on pension contributions did not materialise.

BDO Comment Pension benefits are always a key part of any remuneration package and the implications of the rules in the different jurisdictions employees may work in during their career must be tracked and considered. Getting this right for your IMEs is essential to incentivise and retain them.

SWITZERLAND

Are your people covered?

Check the small print The Swiss Federal Supreme Court ruled on the question of insurance coverage for

individuals who live abroad but telework for a Swiss company. In Switzerland, the Accident Insurance Act (AIA) stipulates that all employees who are employed in Switzerland are covered by mandatory accident insurance.

In this case, an individual, living overseas, was employed by a Swiss-based company as a “product content manager”’ on a fixedterm contract. His work mainly involved platform work, which could be carried out for the Swiss company regardless of the employee’s location. The employee was not a Swiss resident either at the time of hiring or during the employment period; instead, he lived temporarily in different jurisdictions around the world. While in Sri Lanka, he was hit by a delivery van as a pedestrian and suffered severe traumatic brain injuries.

The court ruled these sorts of employees are generally not insured under the company's compulsory accident insurance policy and the AIA so the costs paid by the employer were not covered by the policy.

BDO Comment This ruling is a warning signal to all employers based in Switzerland that employ platform employees who can carry out their work from anywhere and a reminder to all employers with IMEs to check that they and their employees understand the limits of their insurance cover.

KAREN MCGRORY

Karen McGrory is head of expatriate Tax Services at BDO LLP. She has over 30 years’ experience in the field of expatriate taxation. BDO is able to provide global assistance for all tax issues arising from an internationally mobile workforce. If you would like to discuss any of the issues raised in this article, please do not hesitate to contact Karen McGrory on +44 (0)20 7893 2460, email karen.mcgrory@bdo.co.uk.

INTERNATIONAL HR ADVISER WINTER

Ensuring That Talent Mobility Benefits People, Businesses And Communities Circular talent mobility is a reference to the circular economy: Products are kept in use for as long as possible through repairing, recycling and redesign - so they can be used again and again. Ultimately, this is an effort to reduce waste.

Not wasting the benefits of talent mobility for the assignees (skills, career postrepatriation), the families (experience), the organisations (investment in key talent, longterm growth), the receiving business countries (skills transfer, long-term impact) and the broader communities (indirect business impact) is becoming imperative.

The Employee Perspective

An assignment can present a great opportunity for employees, but it can also hinder their careers with the "out of sight, out of mind" mentality, potentially leading them to leave the company upon repatriation due to a perceived lack of opportunities.

The intention of this message is not to be negative. Instead, it serves as a reminder that international assignments can benefit certain employees under specific circumstances, but not all assignments. It encourages a deeper exploration of the conditions and circumstances that make an assignment mutually beneficial for both the company and the assignees.

• Can we measure and quantify the benefits for individuals?

• Which types of assignments provide the most benefits?

Without a clear answer to these questions, the real benefit of mobility remains hard to evaluate.

• 38% of mobility professionals believe that employees with international experience are promoted more quickly in their organisations • Only 7% can demonstrate it with detailed internal statistics • 41% don’t know and don’t track this information in any way. (1) The value of assignments can be measured in terms of direct impact on career progression, skill acquisition and

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development, networking opportunities, and overall well-being aspects such as health and work-life balance.

The Family Perspective

Many discussions about mobility tend to focus solely on the relocation of individual employees. However, it is crucial to recognise that the experience of the employee's family is a central aspect of the overall assignment experience. This has become even more significant with the increase in dual incomes and the emergence of new types of assignments. Family-related issues often contribute to assignment failures, 59% of respondents to Mercer’s 2025 Talent Mobility Outlook Survey list family issues as an important or a medium issue for mobility management.

In order for an assignment to be successful, it is essential to ensure that it provides a rewarding experience for the entire family or, at the very least, maintains the wellbeing of all family members

In order for an assignment to be successful, it is essential to ensure that it provides a rewarding experience for the entire family or, at the very least, maintains the well-being of all family members. Possible action points include partner support (providing assistance for both working and non-working spouses), covering daycare costs and not just schooling costs, health considerations (implementing preventive measures, including mental health support) and fostering social integration (support groups and local networking).

Currently only 21% of respondents declare covering daycare costs and while a majority of companies (73%) include spouses in their policies, it is sometimes in the form of simple lump sums as opposed to well-structured support programmes. (2)

The Organisation Perspective

The organisation can anticipate various outcomes from international assignments: 1. Business outcomes: These outcomes are associated with business growth, profitability, market share acquisition and acquiring new clients. While these outcomes are often prioritised by top management, measuring them in isolation does not provide a comprehensive understanding of the value of mobility itself or the extent to which these outcomes can be attributed to the act of relocating employees.

2. Mobility outcomes: These outcomes are related to the process of relocating employees. They encompass factors such as employee satisfaction, well-being of the assignee and their family, retention and performance. Additionally, they consider the impact on the receiving business unit and the efficiency of the mobility teams in managing the assignment process.

3. Talent management outcomes: These outcomes encompass the career progression of mobile employees, the development of their skills and the experiences gained through mobility.

These outcomes have an impact on the talent pool and the organisation's ability to address skill gaps. Understanding these outcomes helps to comprehend the indirect costs and benefits of mobility, as well as its long-term value.

CIRCULAR TALENT MOBILITY A narrow focus on business outcomes fails to fully capture the significance of mobility. A limited definition of return on investment (ROI) may misrepresent short-term success as a high value move.

A positive business outcome, such as the growth of the host business, could lead to the loss of talent due to a negative assignment experience or the absence of post-assignment career planning.

Conversely, solely focusing on mobility or talent management aspects would fail to establish a connection between these outcomes and the financial aspects of the business. This narrow perspective could create the perception that mobility is primarily about costs or, at best, a substantial investment to maintain employee satisfaction and retention without yielding long-term business benefits.

Most of the participants can still not determine the ROI of assignments. Close to half do not track either the cost or the value of assignments. Only 2% of respondents indicated that they can determine the ROI of assignments, a percentage that has not changed significantly over the years. Close to a third can measure the direct costs of an assignment, and half of this proportion can measure both direct and indirect costs, but not the value. (3) Mobility professionals should broaden their definition of mobility success to encompass the various aspects of mobility.

These different outcomes can reinforce each other: Talent management outcomes can contribute to a strong talent pipeline, which, in turn, can drive better business outcomes in the future. However, there may also be conflicts between these outcomes: Shortterm profitability and cost control objectives may not align with mobility experience and talent management goals. In practice, there will often be trade-offs between the different aspects of mobility.

Global Workforce Diversity Perspectives

Are current mobility policies and practices effectively promoting gender parity and the integration of minorities in the international workforce? Or are these policies failing to meet the specific needs of certain employee categories?

There is a risk of developing two distinct workforces: On one side, internationally mobile employees who can leverage the benefits of global mobility to advance their careers within their companies or explore opportunities elsewhere. On the other side, employees without international experience who are not benefiting from global mobility opportunities, resulting in a slower career progression. In some cases, these employees may even be compelled to relocate simply to retain their jobs (constrained mobility).

A first step to address the gap is often leveraging policy flexibility to support different employee groups based on their specific needs. This could involve implementing benefits swaps or reallocating budgets to accommodate diverse employee requirements.

However, providing more flexibility in the benefit package is often not sufficient: Only 13% of mobility professionals indicate having seen an increase in female assignees since the implementation of their flexible policy. Female assignees remain a minority, representing an average of 22% of the global assignee population. (4) Additional effort is required to enhance career equity: It is not solely about the number of female or minority employees going on assignments but also about the type of assignments and the career benefits they provide. Shifting from a purely quantitative assessment to a more qualitative one is necessary to ensure equitable career opportunities.

The Perspective Of Receiving Business Units And Local Communities

Talent mobility can lead to knowledge transfer and capacity building, as international workers share their expertise and best practices with local colleagues, fostering professional development and skill acquisition. However, this requires conscious efforts and planning from organisations. Too many moves are driven by time-sensitive business issues and little consideration is given to the broader picture.

Considerations must also be given to environmental and social issues.

Managers' goals should incentivise knowledge transfers and local talent pool development, and integrate these objectives in their performance evaluation.

Transparency and equity should be respected: Differences in treatment between international assignees and local employees must reflect specific and objective requirements to facilitate moves.

Employee should be encouraged to make sustainable choices for the environment and enforce strict codes of conduct (ethical best practices).

Establishing circular talent mobility best practices mean addressing all these different perspectives. It’s an ambitious goal but talent mobility is going under increasingly scrutiny from top management due to its cost and the lack of measurement of its true value. Adopting a circular approach to talent mobility can enhance the experiences of employees and their families, promote diversity and ensure that knowledge is shared between international assignees and local teams.

For HR professionals, this means looking

beyond traditional metrics to truly assess the benefits of mobility. Ultimately, this a path for organisations to strengthen their global workforce but also build a more engaged and sustainable future.

Mercer Mobility

Whether you send only a few employees abroad, or hundreds of them, Mercer provides a range of products to help you manage all aspects of long-term international assignments, short-term assignments, permanents moves, international hires, commuters, international remote workers, and business travellers. Our experience and global reach ensure that you receive the most up-to-date and accurate information to manage your global mobility programme effectively. Find out more about our tools and surveys at www.mobilityexchange. mercer.com/.

References: 1) 2023 Worldwide Survey of International Assignment Policies and Practices, Mercer 2) 2023 Worldwide Survey of International Assignment Policies and Practices, Mercer 3) 2023 Worldwide Survey of International Assignment Policies and Practices, Mercer 4) 2024 Flexible Mobility Policies Survey, Mercer

OLIVIER MEIER

Mercer Olivier.meier@mercer.com Find out more: Talent Mobility Trend Surveys: mobilityexchange.mercer.com/surveys Join us at the 2025 Talent Mobility Conference in Copenhagen: www.mercer.com/insights/events/ global-hr-conferences/talent-mobilityconference-2025/

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The 2025 Expatriate’s Guide to Living in the UK Pre-order your copies to pass on to your expatriate employees 20th Annual Edition

The 2025 Expatriate's Guide to Living in the UK

Topics include: Banking, Conversion Charts, Driving, Education & Schooling, Embassies & High Commissions, Family Law, Healthcare, Property, Taxation, Travel and Wealth Management

www.expatsguidetotheuk.com

The 2025 Guide will contain content covering: Banking • Driving • Education - Schools & Universities Embassies & High Commissions • Expatriate Clubs • Healthcare Immigration • Legal Issues • Moving & Relocation Property • Residential Lettings • Taxation Travel • Wealth Management The Guide has been published for over 20 years, and has had over 1.5 million views over the past year on our digital issues.

To pre-register for copies for your expatriate employees relocating to the UK, please email helen@internationalhradviser.com with the quantity you require and the full address you would like these sent to. They will be delivered in early April.

In the meantime, please visit our website www.expatsguidetotheuk.com which is the digital platform for the Guide.

Please share the website with colleagues or employees relocating to the UK.

VISIT WWW.EXPATSGUIDETOTHEUK.COM TODAY!

THE FUTURE OF DIGITAL NOMADISM

The Future Of Digital Nomadism Telecommuting. Digital nomadism.

Work from anywhere. It’s had many names over the years, but the concept is the same. The number of people seeking to combine the freedom to experience different places or cultures while simultaneously earning an income has been growing since the technology made it possible. In fact, the term “digital nomad” likely dates to the 1997 book by the same name, authored by Tsugio Makimoto and David Manners. In 2020, Estonia was the first of now more than 60 countries and territories to introduce a visa programme to encourage the arrival of digital nomads. The idea is that self-employed individuals or those working for foreign employers can live in and contribute to their economies for defined periods of time, ideally without disrupting their own labor markets.

The number of people taking advantage of location-independent work arrangements exploded during the 2020 pandemic and has continued to grow ever since. But with many large multinationals now announcing return to office (RTO) policies for at least three, if not five days a week, what does the future of digital nomadism hold, and what role might global mobility professionals play in it?

A Look At The Numbers

First, it’s worth noting a few statistics. It’s estimated that currently over 35 million people consider themselves digital nomads, according to an MBO Partners report. Other reports put that number closer to 40 million globally. In a trend originally defined largely by self-employed or freelance workers – very often single men working in tech industries – it has since evolved as working conditions changed and more professionals with traditional office employment adapted to fully remote work.

Today, the largest percentages of digital nomads are still single and fall in either the Gen Z or Millennial generations, but now there are plenty of females, families with children and older workers who have opted for the remote lifestyle, too. What

The Current Landscape

All signs point to flexible work options continuing to expand even beyond remote work motivates them? The answers will vary, but frequently include the desire to travel, an appetite for flexible work arrangements, the quest to live and work in more affordable locations and the perception that what prior generations might have regarded as symbols of success – a 9-to-5 office job and homeownership – are now either unattainable or undesirable. Approximately 90% of digital nomads have completed some form of higher education, with 33% holding Master’s degrees, according to The Nomad Almanac.

Opinions on digital nomads vary widely and are likely to continue to evolve alongside our complex geopolitical and economic environment. An unprecedented number of major elections in 2024 ushered in new leadership in multiple regions around the globe. Some governments regard the economic and other benefits of enticing digital nomads as outweighing any risks, while others are taking the opposite approach, scaling back in response to local pushback and adopting a more protectionist view.

At the same time, employers continue to grapple with skill shortages globally, and the digital nomad community will undoubtedly remain a talent pool well worthy of consideration. Even in companies where remote work is not the norm, managers may seek allowances for it, especially if it comes down to a “make or break” feature in the recruitment or retention of top talent. A case could also be made that digital nomads naturally possess many of the positive traits and skills employers look for, like resilience, innate curiosity about and openness to other cultures, a willingness to take calculated risks and independent problem-solving.

Then there is the work environment itself. Despite a pendulum shift that could see greater numbers of employees returning to more traditional, in-office work arrangements, astute employers cannot ignore the fact that many highly skilled, high-performing individuals who have had a taste for the nomadic lifestyle

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INTERNATIONAL HR ADVISER WINTER

will be very reluctant to give it up. In fact, all signs point to flexible work options continuing to expand even beyond remote work, as larger numbers of younger employees enter the workforce and seek experiences that align with their individual preferences and lifestyles. Exactly what that flexibility looks like will continue to evolve, spanning work settings and spaces, hours, benefits and time off.

All these converging complexities give global mobility professionals opportunities to continue to demonstrate and cement their value to their organisations The Role Of Global Mobility

All these converging complexities give global mobility professionals opportunities to continue to demonstrate and cement their value to their organisations. They have the knowledge, experience, relationships with service providers and expertise to help ensure all the right questions are asked and answered when companies consider whether to hire new or allow current employees to work from just about anywhere. For example, a few of the most important considerations are: • Compliance Employing digital nomads involves understanding all the relevant regional immigration, tax and employment laws and ensuring employees are properly classified. With so many countries opting to institute some form of a digital visa, it’s essential to know and stay on top

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of the specifics, just as with all other types of cross-border residence and work authorisations. These can include minimum income or salary requirements, length of allowable stays, permissible work activities and whether there are provisions to extend or renew.

Some applications may require proof of employer permission to work remotely or rigorous background checks to prove applicants are free from criminal convictions. Ensuring all parties understand and fully comply with the tax obligations in home and host locations for both employee and employer is also essential, as is being aware of the risk of potentially triggering a permanent establishment (PE) and the financial obligations that go along with that.

• Policy Just as employers do with individuals reporting to an office, establishing clear expectations around compensation, work hours, time off, performance, code of conduct, communication and equipment use will help ensure mutually successful and beneficial employer/ employee relationships with remote or nomadic team members. Global mobility professionals can offer region-specific benchmarking data and expertise to look at each scenario holistically and make recommendations grounded in data.

• Security and data protection The idea of logging in and working from a laptop anywhere in the world may be appealing to employees but can pose the stuff of nightmares for IT teams.

Rapid advancements in technology and expanding network access continue to make remote work possible in more locations, but it’s essential employees know and strictly comply with all cybersecurity and data protection protocols and policies. Collaboration across IT, legal, HR and business travel teams is critical for developing, testing and enforcing policies and ongoing training to keep your company and employees secure.

• Housing One of the biggest challenges of a nomadic lifestyle is securing acceptable short-term accommodations.

Depending on your policy benefit options, destination service providers and temporary living firms can be a huge help in sourcing and securing housing options that will keep your employees safe and secure.

What’s Next?

There’s no doubt that how, where and when we work will continue to evolve.

Whatever changes take shape, though, we can count on a certain percentage

There’s no doubt that how, where and when we work will continue to evolve of the employee population embracing the call to reject the same commute and office environment every day in favor of the freedom to work, live and travel throughout different places. Faced with a fiercely competitive talent landscape and a generation of employees prioritising flexibility, savvy employers will take heed and call upon the expertise of their global mobility teams and service partners to help them make the most of a diverse and nomadic talent pool.

KRISTIN WHITE

Kristin White is Director, Thought Leadership & PR with Sterling Lexicon.

She has more than 30 years of experience in the global workforce mobility industry, including several as an expatriate. She can be reached at E: kristin.white@sterlinglexicon.com

BEHIND JAPANESE HR LEADERSHIP SUCCESS

Behind Japanese HR Leadership Success The HR leadership of Japanese organisations makes them stand out. Japanese executives have secret ideas that may be the key to their success and long-term survival. When advancing a business endeavour, learning the secrets creates the kind of success that is easy to follow and worth emulating.

This article attempts to reveal them. Much of what we share in this article comes from over 20 years of management consulting in Japanese companies such as Toyota, Nissan and Panasonic.

Japanese HR leadership has encompassed worldwide success and criticism. For example, Toyota is an example of a leading and successful Japanese company in industry. With its new and creative ideas, this company was able to rebuild the marginalised image of Japanese cars in the international business scene and take a large share of the car market in the world.

Our investigations as senior consultants in Japanese organisations have shown that the innovative and agile organisation of these organisations minimises inefficiencies in the two prominent areas of human resource and leadership development. However, a note from a Japanese Intercultural Consulting, Rochelle Kopp, posits that “non-Japanese employees of Japanese firms frequently mention the penchant that many Japanese managers have for public criticism. Whereas Americans would prefer to receive negative feedback in private, Japanese seem to prefer to give it in public. And in some cases, the negative feedback goes one step beyond into the realm of “chewing out,” or just plain yelling”. We will now look at the five secrets of the success of these organisations so that managers can use them.

# Secret 1: Bridging The Gap Between Strategic Writing And Strategic Implementing

In Japanese organisations, the gap between what senior managers’ plan and what operational departments implement is small due to a large amount

of communication and cross-referencing ideas. Senior managers do not speak in generalities, they use a measurable language in expressing their strategic plans.

Japanese organisations rely on two wellknown basic components: knowledge management and systems approach.

The successful implementation of an integrated knowledge management system in Japanese organisations has caused the

The successful implementation of an integrated knowledge management system in Japanese organisations has caused the formation of effective communication channels between the senior and operational levels of these organisations

formation of effective communication channels between the senior and operational levels of these organisations. The existence of a systems approach in these organisations has also caused a synergy. The flow of information in these organisations, along with the existence of a systems approach, has caused all departments to consider themselves. Middle managers play a role as facilitators of information flow between senior levels as decision makers of the organisation and operational levels as implementers of strategy. These middle managers also play an important role in expanding the systems approach by holding discussion and consensus meetings between the top and operational levels.

# Secret 2: Organising Based On Social Capital

Japanese organisations portray a new form of discipline that maximises their agility.

As organisations get larger, innovation is sacrificed for efficiency and the structure becomes more and more bureaucratic.

This bureaucratic structure minimises the organisation's ability to respond quickly and innovatively to environmental changes and takes the organisation away from the original idea of its creation. Japanese organisations have also solved this problem by relying on a component called social capital.

Through the exchange of ideas, social capital can play an important role in increasing the ability of organisations to increase agility and reduce the gap between realising environmental changes and responding effectively to them. Trust and interaction are two main components in the structure of Japanese organisations based on social capital. The structure based on social capital also plays an important role in creating learning organisations by expanding the flow of knowledge between employees. All the processes and events of these organisations are designed in a way that provide human interaction to share more ideas and expand the systems approach. They convert as much human capital into social capital as possible.

Japanese organisations provide a platform for the development of human capital by using successful methods by designing and structuring based on social capital. This secret helps them become more innovative and spread ideas quickly and effectively.

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INTERNATIONAL HR ADVISER WINTER

Organisations such as Nokia show why some organisations no longer exist # Secret 3: Discovering New Competencies

Organisations such as Nokia show why some organisations no longer exist. Perhaps the main cause of their demise is that new competencies are underdeveloped or avoided altogether. Organisations should give up on short-term profits to achieve a guarantee of long-term survival. Japanese organisations have solved this problem.

Japanese organisations, such as Toyota, are ready to discover new competencies. This is the preparation of coordination between all the components of the company, including R&D teams, top managers as decisionmakers, operational levels as implementers of strategic decisions, middle levels as communication channels between the top and operational levels, and foreign investors.

This wide flow of information has caused an awareness of the necessity of discovering new competencies and new investments.

In fact, although investing in these new areas will reduce short-term profits, in the end, long-term survival and even more profitability is achieved.

# Secret 4: Adopting ThreeStage Leadership Development Programme

The Japanese leadership development programme is based on the principle that future leaders can experience and act along with their current leaders. This three-step leadership development programme is the secret to the amazing innovations that occur in Japanese organisations. Practice makes perfect, commitment to the mission and vision, and change that is constant, coupled with the development of innovation.

This leads to the growth of organisational commitment and a systems approach.

Japanese feel that it is the system that manages itself perfectly, not just the wheels of a car that spin, but the whole car itself.

Therefore, their cars outlast the competition and people are just waiting for the time to trade it instead of it breaking down.

This leadership development programme has flourished the organisational culture, and solved many of the anomalies in the individual lives of the employees of these

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organisations. Life of the Japanese executive is very important to the organisation. Their lives, homes, travel, and vacation are all intertwined to build a great executive.

Drucker, in his Harvard Business Review article titled “What Can We Learn for Japanese Management”, stated that: “They could have a far-reaching impact on the quality of our executive decision making, corporate planning, worker productivity, and management training”.

In the first step, future leaders are encouraged to attend current leadership meetings. In these meetings, the future leaders under the supervision of a board member as a mentor realise the dynamics needed in personal relationships and the personal qualities needed for effective leadership. In the second step, future leaders are asked to analyse their personal characteristics compared to the characteristics required for leadership, and to state which characteristics need to be changed and improved to be more in harmony with leadership requirements, and how these future leaders can effectively bring about this change in their individual characteristics. This stage requires more discussions and expression of leadership experiences between the mentor who is a member of the board of directors and the management trainees. And in the third stage, as the mentor's relationship with future leaders gradually decreases, the human resource development department enters the development process and establishes a relationship with trainees to create favourable conditions for continuous improvement and commitment to change.

Human resource development specialists are in contact with these leaders and continuously monitor the changes and challenges faced by these applicants.

# Secret 5: A Systems Approach - A Dynamic Interaction Between Processes, Strategies, And Capabilities

Organisations turn our ideals and dreams into results that benefit the whole society and all the people around the world. Just look at the question that the former CEO of Benz asked himself and see how this question (why do cars crash?) led to results such as the design of smart sensors that use alarms to alert sleepy drivers, and if there is no response from the drivers, it automatically leads the car driver to a safe place, assuming a heart attack or unconsciousness. This question prevented the death of millions of people in the world. Japanese organisations are at the forefront of transforming individual ideals and aspirations into exciting results that benefit the entire society and people around the world. These organisations do this by building a dynamic interaction between

their processes, their strategies, and their organisational capabilities.

Individual ideals and wishes of each of their employees, if realised, can improve the position of these organisations in industry, like Cristiano Ronaldo, who improves the position of the Portuguese national team in the ranking of FIFA national teams by scoring each goal. Awareness of the importance of this issue has caused a dynamic interaction between the processes, strategies, and capabilities of these organisations by their leaders. And these three basic factors lead to synergy in a dynamic interaction. Synergy ultimately leads to innovation and greater adaptation to environmental changes.

In Conclusion

The secret weapons of success and longterm survival of Japanese organisations are no longer secret. Japanese organisations are among the best and most valuable organisations in the world. Their change and movement towards success and survival require the commitment of leaders as senior managers. Should other executives learn from the Japanese, according to Peter Drucker, the answer is yes. The challenge now facing business leaders around the world is to adopt and implement these success codes to achieve long-term success and survival.

Optimise the change according to what you are lacking, what needs a change, and how you can better plan for the future of HR leadership development.

The secret weapons of success and long-term survival of Japanese organisations are no longer secret

BY MOSTAFA SAYYADI & MICHAEL J. PROVITERA

INTERNATIONAL HR ADVISER WINTER

Five Tactics Turning Strategic Plans Into Actionable Results As the year comes to a close, many leadership teams are in full swing with their annual strategic planning.

The familiar rhythm of planning retreats, detailed spreadsheets, and high-level discussions about growth opportunities takes centre stage.

For 2025, companies are once again pouring significant time, effort, and resources into crafting what they hope will be their winning blueprint for success. Yet, as history shows, by spring, many of these plans will be set aside, lost in the day-to-day hustle. Why does this happen?

A staggering 60-90% of strategic plans fail to fully come to life. The main reason: poor execution. This reality teaches us an essential truth - while creating a plan is critical, the ability to execute it effectively is what truly separates successful organisations from those that falter.

A staggering 60-90% of strategic plans fail to fully come to life. The main reason: poor execution Execution: The Real Driver Of Success

Every business - whether a lean start-up or a multi-billion-dollar corporation -

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needs a plan. Strategic planning provides the roadmap for achieving key objectives, navigating market volatility, and responding to competitive threats. It defines your goals, market positioning, and financial forecasts.

But there’s a critical disconnect between planning and doing. Too often, leadership teams spend months perfecting their strategy but fail to turn those ideas into concrete, measurable actions.

The difference between success and stagnation lies in how well an organisation can execute its strategic plan. Execution transforms intentions into outcomes. It bridges the gap between theoretical ideas and the day-to-day operations needed to achieve business growth. Without a clear path from strategy to execution, even the most sophisticated plans will remain ineffective.

Five Key Attributes Of A High-Impact, Executable Strategic Plan

So, how do you create a strategic plan that doesn’t just live on paper, but actually delivers results? The key is ensuring that your plan is not only well-thought-out but also structured for execution. Below are five critical attributes to focus on if you want to make sure your strategic plan drives real progress:

1. Stakeholder-Centred: Aligning For Success

No plan can succeed without buy-in from key stakeholders - customers, employees, shareholders, suppliers, and the broader community. Aligning your strategy with the interests and values of these groups is crucial. Why? Because when stakeholders are engaged, execution becomes smoother, more efficient, and more impactful.

Stakeholders feel invested in the outcomes, which means they’re more likely to support the necessary actions to bring the plan to life. Companies that focus on stakeholder alignment and engagement consistently outperform their peers in profitability, innovation, and speed of growth. When your strategy considers the interests of all involved parties, you reduce conflicts, build trust, and create a clearer path to execution.

2. Radically Prioritised: Focusing On What Matters Most

One of the most common pitfalls in strategic planning is attempting to do too

much. When leadership teams set too many priorities, resources become stretched, and focus is diluted. The result? Initiatives stall or fail to deliver expected outcomes.

Radical prioritisation means focusing your plan on the few actions that will deliver the most impact. It requires discipline choosing what not to do can be just as important as deciding what to pursue.

Successful execution hinges on having clear priorities. By narrowing your focus, you can allocate resources effectively, monitor progress more closely, and ensure that your team is fully aligned on what matters most.

Remember, unclear priorities are among the top reasons why projects fail.

A de-biased approach ensures that your strategy is rooted in reality, improving the likelihood of success while reducing costly missteps 3. De-Biased: Making Better Decisions

Every strategic planning process is vulnerable to bias - whether cognitive (personal beliefs), organisational (company culture), or even emotional. These biases cloud judgement and lead to poor decision-making. Plans that are not based on data-driven insights are often doomed from the start. To build an effective and executable plan, you must eliminate bias from the process. Ground your decisions in evidence, analytics, and realworld data. Consider using objective tools

RISK like market analysis, financial forecasting, and stakeholder feedback to remove the influence of bias. A de-biased approach ensures that your strategy is rooted in reality, improving the likelihood of success while reducing costly missteps.

4. Over-Communicated: The Power Of Repetition

Communication is one of the most underestimated aspects of execution. It’s not enough to simply draft a strategic plan and present it once during a team meeting.

For execution to succeed, your plan needs to be over-communicated. This means repeatedly sharing the vision, goals, and key actions with all members of the organisation until everyone is on the same page. When employees understand the plan deeply and see how their daily work contributes to its success, they become more engaged and committed to its execution.

Effective communication helps break down silos, align departments, and create momentum across the company. A wellcommunicated plan ensures that every team member, regardless of role, knows what’s expected, reducing confusion and driving collective action.

5. Risk-Mitigated: Navigating The Unexpected

No strategic plan is immune to risk. Every plan comes with uncertainties - whether it’s shifts in the market, economic downturns, or internal challenges like talent gaps. A successful plan is one that proactively identifies and addresses potential risks. Risk mitigation involves anticipating what could go wrong and developing strategies to manage those risks. By building contingency plans and setting up early warning systems, you can adapt quickly when things don’t go as expected. Proactively addressing risks increases your ability to navigate challenges, avoid costly mistakes, and keep the plan on track. By embedding risk management into your strategy, you safeguard your execution efforts, ensuring smoother operations and stronger financial performance over the long-term.

Bridging The Gap Between Strategy And Execution

Creating a strategic plan is the easy part.

The hard part is making it work in practice.

Organisations that consistently succeed in executing their plans do so because they embrace these five attributes. They align with stakeholders, prioritise ruthlessly, remove bias, communicate effectively, and manage risk proactively. Execution

isn’t an afterthought - it’s the driving force behind growth.

As you finalise your plans for the year ahead, take a step back and ask yourself: How executable is this plan? Have you accounted for these five attributes? If not, take the time to make the necessary adjustments now. Doing so will set your team up for success in 2025 and beyond.

In the end, your strategic plan is only as good as your ability to execute it. By focusing on these core principles, you can bridge the gap between ideas and action, driving meaningful outcomes that fuel your business’s growth and success.

DREW YANCEY

Drew Yancey, PhD is Founder & CEO at Teleios Strategy, a premier strategic planning, leadership development, executive coaching and succession planning advisory firm. With a proven track record in high-performance team building and strategic execution for over 15 years, Yancey solves challenging problems at the nexus of growth, strategy, and innovation. Yancey is also the co-author of “ Leading Performance… Because It Can’t Be Managed: How to Lead the Modern Workforce,” and a frequent keynote speaker. Reach him at www.teleiostrategy.com.

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CORPORATE TRAVEL POLICIES

Urgent Employee Health Warning: Expert States ‘Corporate Travel Policies Must Evolve Amid A Legionella Lottery For Business Travellers’ Legionnaires’ disease is a potentially fatal lung infection caused by inhaling droplets of water containing Legionella bacteria. It can be found in various man-made water systems, including taps, showers, air conditioning units, spa pools, and hot tubs.

Current estimates indicate there are between 4,000 and 6,000 cases of Legionnaires’ disease in the UK each year, with a fatality rate of 7 to 12 per cent among those infected. Experts warn that the UK is facing an increased risk of Legionella, fuelled by climate change and warmer temperatures, which create ideal breeding conditions for the bacteria.

Crucially for HR leaders, Legionella can pose particular risks for employees travelling for work due to a myriad of reasons. Foremost, buildings that are used less frequently during the colder months, including hotel rooms, which have been found to have a 32 per cent inoccupancy rate, are especially vulnerable to outbreaks when water systems are neglected or left unused for extended periods. Adding to the risk for overseas business travellers, many countries worldwide continue to experience higher-than-usual incidences of Legionnaires’ disease and lack the same level of regulatory oversight as the UK. Additional concerns arise from the use of hotel hot tubs and spa pools, which are particularly prone to Legionella contamination due to their warm water temperatures and aerosolising jets. A study in Quebec found Legionella in 23% of public whirlpool spas, while an outbreak investigation revealed that 79.1% of hotel hot tubs were colonised with the bacteria.

In light of this, we are urging HR leaders to carefully review their corporate travel policies to ensure they are doing everything

possible to protect employees from exposure to Legionella, especially while travelling for work.

With the year end now upon us, there’s likely to be a lot of business travel due to an upswing in purchasing power, annual review meetings, and prospects for the year ahead With the year end now upon us, there’s likely to be a lot of business travel due to an upswing in purchasing power, annual review meetings, and prospects for the year ahead. While Legionella may not be the first concern when ensuring safe travel for employees, the assumption that hotels will cover this as part of their health and safety strategy is a risk employers can ill afford to take. Indicative of this, just recently two of our employees found

Legionella pneumophila in their hotel rooms at two different premises, prompting us to adopt an even more rigorous approach to Legionella detection for our team when they travel on business.

The fact is that Legionella is increasing globally at an alarming rate, with 1000% increase in the disease in the USA since 20006 and over 500% increase in the EU in the same period. This is posing a significant risk for hotels given their complex water systems and high-risk exposure points, such as hot tubs, pools, and spas. Fluctuating occupancy rates can exacerbate this risk by leading to stagnation and creating ideal conditions for Legionella bacteria growth.

With 32% of hotel rooms unoccupied, this means that, without proper water management procedures, employees staying in hotels are very much facing a Legionella lottery.

About one in ten people who contract Legionnaires' disease will die due to complications from their illness. Seven in eight survivors will suffer long-term impacts on their quality of life, including fatigue, neurologic and neuromuscular symptoms, and post-traumatic stress disorder.

The statistics show that the scale and severity of Legionella cases in the UK and all across the world are increasing at concerning levels. As such, there has never been a more appropriate time for HR leaders to take a proactive stance by providing employees with the means to better protect themselves from the Legionella risk. By testing hotel water systems, employees can identify potential threats before exposure occurs, ensuring they are not unknowingly placed at risk. Every Legionella test taken is an opportunity to safeguard against what is, unfortunately, becoming an increasing health concern, particularly for the business travel community.

For information please visit: www.hydrohawk.co.uk/

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24

DIRECTORY

INTERNATIONAL HR ADVISER WINTER

INTERNATIONAL HR CONSULTANTS DELOITTE LLP 1 New Street Square, London EC4A 3HQ, United Kingdom Contact: Danny Taggart Telephone: +44 (0) 20 7007 1447 E-mail: dtaggart@deloitte.co.uk Website: www.deloitte.co.uk To address the most challenging business demands, multi-national organisations need to define and understand their global workforce footprint and deliver global talent deployment efficiently and compliantly.

Deloitte’s Global Employer Services practice is a multidisciplinary consulting group of tax, immigration, talent/HR, payroll, reward and digital professionals who support clients as they navigate their complex global workforce challenges, providing advisory services, developing focused strategies and delivering practical enablement.

RELOCATION ASSOCIATIONS ASSOCIATION OF RELOCATION PROFESSIONALS (ARP) 9&10 Diss Business Centre, Dark Lane, Diss, Norfolk, IP21 4ND Contact: Tad Zurlinden Telephone: +44 (0)1379 651 671 Fax: +44 (0)1379 641 940 Email: enquiries@arp-relocation.com Website: www.arp-relocation.com The ARP is the professional association for the relocation industry in the UK. The ARP’s activities include seminars throughout the year, an annual conference, the publication of an annual Directory of Members and a website, which is updated regularly.

THE EUROPEAN RELOCATION ASSOCIATION (EuRA) 9&10 Diss Business Centre, Dark Lane, Diss, Norfolk, IP21 4ND Telephone +44 (0)1379 651 671 Fax: +44(0)1379 641 940 E-mail: enquiries@eura-relocation.com Website: www.eura-relocation.com EuRA is an industry body for Relocation Professionals in both Europe and Worldwide.

EuRa have launched The EuRA Quality Seal, the world’s first accreditation programme for relocation providers. This pioneering initiative provides a straight forward, cost effective audit to reflect your company’s excellence in providing relocation services.

24

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SCHOOLS TASIS THE AMERICAN SCHOOL IN ENGLAND Coldharbour Lane, Thorpe, Surrey TW20 8TE Contact: Sarah Travis Telephone: 01932 582316 Email: ukadmissions@tasisengland.org Website www.tasisengland.org TASIS England's diverse student body includes over 50 nationalities and many in the school community have experienced the challenges of relocation. Along with well-established welcoming programs, families receive ongoing support as they cope with the practical and emotional aspects of their transition to life in the UK. Taught in small classes, students (ages 3–18) benefit from a balance of academics, arts, athletics, activities, and service leadership. Excellent exam results and oneto-one college counselling enable 97% of TASIS graduates to gain acceptance to their first- or second-choice university in the UK, the US, and worldwide.

SERVICED APARTMENTS THE ASSOCIATION OF SERVICED APARTMENT PROVIDERS (ASAP) Suite 3, The Business Centre, Innsworth Tech Park, Innsworth Lane, Gloucestershire GL3 1DL Contact: ASAP Office Telephone: +44 (0)1452 730452 Email: admin@theasap.org.uk Website: www.theasap.org.uk Twitter: @ASAPThe LinkedIn: The Association of Serviced Apartment Providers ASAP is in the industry association representing, promoting and improving the serviced apartment sector. Our 124 members including serviced apartment operators and agents represent in excess of 25,000 serviced apartments in the UK, Europe, USA and Canada.

When booking your serviced apartment, look for our Quality Accreditation kitemark which confirms the operator is fully compliant with all the core legal, health and safety practices and means you can book with confidence.

TAXATION BDO LLP 55 Baker Street, London, W1U 7EU Contact: Karen McGrory Telephone: 020 7893 2460 Fax: 020 7893 2418 E-mail: karen.mcgrory@bdo.co.uk Website: www.bdo.co.uk BDO LLP is the award-winning, UK Member Firm of BDO International, the world’s fifth largest

accountancy network with more than 1500 offices in 162 countries.

We have a partner-led approach, which delivers the highest quality of service by using short, functional chains of communication to aid decision-making. Clients benefit from our fresh thinking, constructive challenge and practical understanding of the issues they face. Developing strong, personal relationships with our clients is at the forefront of our service approach.

Tax advice is just one of our award-winning services and our expatriate team give practical and direct advice, delivering solutions which suit your needs.

GLOBAL TAX NETWORK LTD

1st Floor, Andrews House, College Road, Guildford, GU1 4QB Contact: Richard Watts-Joyce CTA, ATT Telephone: +44(0)20 7100 2126 Email: help@gtn.uk Website: www.gtn.uk Twitter: @GTN_Tax LinkedIn: www.linkedin.com/company/globaltax-network Global Tax Network Ltd is the UK member of Global Tax Network (GTN), an international affiliation of professional firms in over 100 countries specialising in global mobility tax consulting. We provide assistance to employers with the tax administration of international assignment programs and private client services to high net worth individuals, non-domiciles, professional sportspersons and entertainers. Our consultants include members of the Association of Taxation Technicians, Chartered Institute of Taxation, and US Enrolled Agents.

To advertise your services to our Global HR readers in this Directory please email helen@internationalhradviser.com for further information.

We would like to wish all our readers and clients a very Happy & Healthy 2025.

With very best wishes, Helen & Ben

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