Leading Magazine For International HR Professionals Worldwide
FEATURES INCLUDE:
Measuring The Return On Investment For Global Mobility
Immigration: How Quickly Will You Receive Your UK Visa?
Global Tax Update • 4 Reasons 'Quiet Firing' Is Bad For Businesses
EU Pay Transparency: Unpacking The Implications For Global Mobility
Fast Track Leadership Development Through Strategic Talent Mobility
Effective Leadership In HR With A Future With AI: Leading Employees Through AI
International Remote Working: Navigating The Risks And Maximising The Benefits
ADVISORY PANEL FOR THIS ISSUE:
In This Issue
EU
Deepinder Lamba & Sophie Lambert, Deloitte LLP
International
Karen McGrory, BDO LLP
Global Tax Update
Karen McGrory, BDO LLP
Fast
Kristin White, Sterling Lexicon
Immigration:
David Hugkulstone, Smith Stone Walters
Markus Kurth & Olivier Meier, Mercer
Mostafa
Merilee Kern
EU Pay Transparency: Unpacking The Implications For Global Mobility
Change is coming and the EU Pay Transparency Directive will have significant implications for organisations and employees who work for them in the EU. Have you considered the potential additional implications for those employees who work cross-border?
The EU Pay Transparency Directive (“EUPTD” or the “Directive”) is intended to bolster existing laws on equal pay and help reduce the gender pay gap across Europe. It will apply to organisations with workers in the EU, regardless of where they are headquartered.
It is more than just a regulatory update; it's a powerful catalyst for change, designed to dismantle the entrenched structures that perpetuate the gender pay gap. This Directive goes beyond simply increasing transparency, as it aims to create a cultural shift where pay equity is the norm, not the exception.
In this article we provide mobility professionals with perspectives that will
inform considerations and actions, and better ensure engagement on mobilityrelated issues with those leading on EUPTD within their organisation.
EU member states are required to implement the Directive into local law by June 2026. There are several requirements for employers to meet to make pay more transparent to both employees and job applicants. Whilst reporting requirements do not start until June 2027, subject to reporting thresholds (for example, based on number of employees per employing entity and / or additional local requirements), employers will be reporting on 2026 data. As such many organisations will already be working through what it means for their domestic population in various countries, but it will also be important to ensure the impact of employees that move cross-border are factored into the analysis being undertaken.
Why Is The EUPTD Relevant To Global Mobility?
When reporting on the gender pay gap, employers will be required to include all pay, including benefits in kind, not just salary and bonus.
Depending on the nature and duration of the assignment, employers may be required to include international assignees in their host country gender pay gap analysis, even if the international assignees continue to be paid from the home location. In addition, localto-local transfers and internationally mobile employees on temporary assignments will often receive enhanced benefits in kind and/ or allowances in accordance with the terms of Global Mobility policies, which may need to be included in the analysis. There can also be a degree of negotiation regarding remuneration packages for such workers.
All of these factors may distort local reporting under the EUPTD requirements. This is especially true for organisations where mobile workers are in senior positions (e.g., the C-suite), can often be male, and who are also more likely to negotiate on packages, creating pay disparity.
Even where there is clear governance around global mobility policies and procedures, mobile workers can still impact gender pay gap metrics. There are various aspects to consider if they are moving from a higher paid to a lower paid jurisdiction and vice versa.
What Should Those Managing Mobile Workers Do?
Whilst some limited guidance has been provided in the EU Directive, countries are required to publish how they will implement at a local level. Many countries are yet to publish, but waiting until they do to decide on actions needed may leave it too late. Furthermore, it is not surprising that in neither the Directive, nor countries who have published, has it been set out specifically how mobile workers should be treated, so it will be left to organisations to interpret the guidance and come up with their own approach. Such an approach should be robust and defensible, not only in the eyes of the relevant authorities, but also employees and worker representatives such as works councils and trades unions.
It is essential for those managing mobile workers to create a clear methodology and framework to manage the reporting of data related to such workers. It is important to understand the data that is required, what compensation needs to be reported and where, recognising variation for countries and different mobility policy types.
Below is a suggested methodology of things to consider and actions to take:
1. Identify individuals that have moved cross-border and their corresponding move type
Ensure that you have appropriate technology systems in place to easily obtain real-time mobility information on an ongoing basis.
2. In which country should each move type be reported?
Organisations should consider the underlying contractual arrangements for their assignment policies and who should be considered in country and entity reporting. Whilst for some move types it may be more straightforward - for example, as a rule of thumb, traditional long-term assignments are likely to be reportable in the host location - there are now many more mobility types that need to be considered, and the position may not be so clear cut for all of them.
3. Consider what income needs to be reported
Under the Directive, there is a broad definition of pay that includes all variable elements and benefits in kind. It is not simply about what is processed through payroll, clear processes will need to be put in place to obtain the relevant compensation.
One of the biggest challenges in implementing the Directive is ensuring consistency. Countries interpret remuneration differently, including what counts as a benefit and how to categorise or report it. Of course, the Directive provides some limited guidelines,
but some national laws and guidance implementing the Directive are likely to differ on exactly what needs to be included and how to value these benefits. This inconsistency will be a significant challenge for employers. For example, some pensions are mandatory, while others are voluntary. This makes it difficult to determine how to factor them into pay gap analyses. Payroll data complicates it further, as varying contributions create artificial gaps.
It is important for mobility professionals to work closely with those stakeholders in each of the countries making decisions on domestic employees, to ensure an appropriate approach is taken for mobile workers’ compensation and benefits.
4. Undertake modelling
Once it has been established for which individuals data needs to be reported, in which country and what compensation, undertake modelling using sample data in order to establish to what extent mobile workers impact the EUPTD reporting and in which countries.
When creating the methodology, build in the flexibility to be able to react to guidance as and when it is being published. Also, consider how to justify what is being included and what is not, and be comfortable that the organisation can stand behind its decisions and explain their approach to workers and worker representatives alike.
Mobile Employees Creating A Gender Pay Gap?
If it is identified that mobile workers are causing a gender pay gap which cannot be justified using objective and gender-neutral criteria, aim to address this in advance of ‘go live’ of the first reporting period requirements, i.e., by 2026.
Otherwise, once into the published reporting period, guidance stipulates that if there is a pay gap of 5% or more in any cohort of workers doing the same job, or work of equal value, and the organisation is not able to justify the pay gap using objective and gender-neutral criteria (and it persists for six months or more), they are required to undertake a “joint pay assessment” with worker representatives. A “joint pay assessment” is, in effect, an equal pay audit. If the joint pay assessment establishes that there is an equal pay issue, there is a requirement to remediate this within a reasonable timeframe.
In such circumstances, it is key to understand the drivers of the gap caused by mobile workers and identify what can be done to address them. For example, is it as a result of a high proportion of mobile working going from a low to high pay jurisdictions? Are certain benefits, or trailing incentive compensation relating to the period before their move, distorting figures, and if so, can these be justified using objective and gender-neutral criteria?
If the joint pay assessment establishes that there is an equal pay issue, there is a requirement to remediate this within a reasonable timeframe
The second aspect is around root causes, such as the extent to which mobile workers have the ability to negotiate their compensation package or obtain additional allowances, regardless of what may be documented in global mobility policies. An example of this may be where an individual is localising, but has negotiated ongoing housing and education allowances for a period of time.
Consequences Of Pay Gaps
The Directive fundamentally alters the power dynamic around pay by shifting the burden of proof from the employee to the employer. The employer has to show there has been no pay discrimination. Employers will be required to disclose pay information, justify disparities, and proactively ensure pay equity. This empowers workers to challenge potential discrimination and levels the playing field for salary negotiations.
As organisations begin publishing their pay gap data, expect journalists and researchers to scrutinise the numbers, highlighting both leaders and laggards in pay equity.
This further emphasises the need for the impact of mobile workers to be identified and addressed in order to mitigate the potential challenge of compensation packages by local employees or even within groups of mobile workers.
Employers also need to consider the optics if employees from other countries are being paid more/less than domestic workers; regardless of whether it is justifiable, it will be much more visible and may create internal friction.
The Global Direction Of Travel
Whilst the Directive impacts individuals travelling to or within the EU (and some EEA countries who are opting to implement), many leading multinationals are also adopting the Directive’s rules globally for several reasons, as outlined below. It is important for global mobility professionals to understand from those leading EUPTD compliance to what extent they are implementing internally:
• Global adoption of the Directive’s gold standard requirements ensures consistency and simplicity rather than a country-by-country approach
• Countries not covered by the Directive may need to compete for talent with overseas organisations, for example near neighbours in the EU, particularly for senior talent
• To bring consistency for internationally mobile employees across the organisation
• To get ahead of similar legislation they feel may land in the future
Next Steps - A Checklist For Those Managing Global Mobility
Below are some of the suggested actions to consider for those managing global mobility programmes in order to get ready for EUPTD.
• Categorisation of mobile employees - the Directive expects equal pay for work of equal value, which means employers need to be able to assess which employees are carrying out work of equal value. Therefore, mobility teams should work with reward teams to determine if the mobile employee would fit into a home country category, or if the mobile employee’s role should be considered in a different category. Regardless of approach, it needs to be able to withstand scrutiny
• Internal Education - the EUPTD is equally critical for companies moving employees to the EU who are employed outside the region, not only those moving within the EU. Local teams outside the region may be less familiar with the Directive’s requirements. As such, there should be an appropriate education roll-out to ensure they do not fall short of the requirements without realising it
• Review existing policy suite – to document the rationale for each particular provision within your policies that would count as 'pay' under the broad definition used for the Directive
• Undertake modelling for mobile employees – work closely with those leading the EUPTD workstream for domestic employees
Undertake modelling for mobile employees
- work closely with those leading the
EUPTD workstream for domestic employees
• Start/continue to document/capture all aspects of remuneration decision making to increase transparency in approach –where discretionary elements are offered, Global Mobility teams should be transparent in how they are used/offered. Any rationale should be objective and gender neutral
• Analyse and document the impact of Global Mobility when calculating gender pay metrics – work with reward teams/local HR teams to drive pay equity. Global Mobility colleagues should actively look to support local efforts to comply with local legislation
• Consider transparency consistency between countries – e.g. employees may be accustomed to pay transparency in their home location and may not be strictly eligible for transparency in their host location, this could potentially impact employee experience.
DEEPINDER LAMBA
Deloitte Reward Partner
E :dlamba@deloitte.co.uk
T: +44 20 7007 2689
SOPHIE LAMBERT
Deloitte Global Mobility Tax Director
E: slambert@deloitte.co.uk
T : + 44 20 7007 1631
At Deloitte, we understand that navigating the demands and complexities of Pay Equity and Transparency can be daunting. Our proposition is designed to help you overcome this challenge and achieve your goals. Our aim is to enable you to pay employees equitably and help you demonstrate that you are doing so. With our deep multi-disciplinary expertise in Reward, Legal, Mobility and Behaviour Change, we are well-placed to be your trusted partner on this journey. Get in touch to discuss your challenges and needs.
International Remote Working: Navigating The Risks And Maximising The Benefits
Over my last three articles, I have looked at the impact of remote working for employers with internationally mobile employees. To conclude this series, I bring together the highlights from the past year; summarising the points you need to be aware of to attract and retain talent, redesign working patterns and minimise permanent establishment risks. Doing all of this in the right way will help set up your organisation up for long-term success.
As remote work reshapes the global workforce, the rise of the digital nomad has added a new layer of complexity to corporate mobility and compliance. Before the pandemic, international remote working (IRW) was rare – largely confined to executives and directors with international responsibilities and a few digital technology nomads. Post-Covid, advances in technology and familiarity with remote working has led to a surge in demand for, and capability to, work from anywhere in the world. Professionals increasingly travel with laptops in hand, blending business travel with remote work, often without realising the risks involved.
If you want to grant flexibility to your staff, it’s important you understand the various areas which need to be managed, including corporate taxes (e.g. permanent establishment considerations), immigration, data protection, recording employee data, income tax, social security and employment law. There is a lot of risk to be managed, and it needs constant tracking and monitoring.
However, after the initial concerns and struggles in grappling with the tax and employment law issues such working patterns can raise, international employers are now realising that there are opportunities as well.
Global Mobility To Attract And Retain Talent
The global talent landscape has shifted dramatically in the past five-years and many employees in the service economy now
expect at least some degree of flexibility in how and where they work. This isn’t to say that adapting to this new paradigm isn’t without its challenges. In particular, it raises critical questions around administering an equitable compensation programme.
The answer: A global approach to compensation is needed
Establishing a fair and competitive compensation strategy is essential to both attract and retain talent with a global hybrid workforce
Establishing a fair and competitive compensation strategy is essential to both attract and retain talent with a global hybrid workforce. Traditional approaches to benchmarking pay are often locationspecific, 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 using “global benchmarks” based on the highest paying markets for globally in-demand talent. Or, using “hub benchmarks” based on the organisation’s HQ location or where most existing employees are located.
Once you have identified the right approach –or indeed blended approach - the most important step is to 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.
Read our full article from the winter 2024 edition here. https://issuu.com/internationaladviser/docs/ ihra_winter_2025_-_online
Cultivating Inclusive And Diverse Teams
Organisations must nurture 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, and investing in travel programmes to allow teams to meet in-person with some level of regularity.
The answer: design IRW patterns that fit your organisation rather than simply coping with what has evolved
The best way to bring teams together in office locations when needed is to make them see the added value. Putting any of the below concepts into action is a good idea, but we would argue that the real hotspots for officebased job content emerge where the four components overlap. These are the points where bringing an IRW team together, despite the cost and disruption of the international travel involved, will truly pay dividends.
Inspiration: Leaders need to help teams and individuals to redefine and personalise impact in their jobs, finding and sharing the meaning that motivates them.
When Inspiration and Socialisation overlap, we can call it a Belonging experience
Socialisation: We tend to look at modern organisations more and more as networks rather than hierarchies. Understanding and navigating these networks is an emerging management discipline.
When Socialisation overlaps with Collaboration, we can call it Trust-building
Collaboration: Among diverse individuals and teams from different domains, collaboration is essential to achieving agility and innovation. Finding a good balance between online and in-person collaborative patterns and tools is an evergreen topic.
When Collaboration meets Education peer feedback should happen
Education: Reskilling and upskilling are often considered a natural requirement for professionals and businesses to keep redefining themselves cyclically. Do we do it proactively or move only when missing skills hurt?
Read our full article from the Autumn 2024 edition here. https://issuu.com/internationaladviser/docs/ ihra_autumn_2024_-_online
Navigating Permanent Establishment Risks
In countries that operate under general international tax principles, often established by tax treaties, one of the conditions for a non-resident company to create a corporate taxable presence, or permanent establishment (PE), is where there is a fixed place of business in another territory through which the business is operated. It is likely that the OECD will publish new guidelines on IRW soon, but in the meantime, this is still something that needs your attention.
You could find yourself with an unexpected corporate taxable presence in territories where your employees are working remotely if you do not manage this. You therefore need to consider whether your employees working from a home office in another territory could create a taxable presence with associated compliance requirements and potential tax costs.
The OECD guidance notes that while part of a business may be carried on at a home office this should not lead to the automatic finding of a fixed place of business. However, equally, the OECD also notes there are circumstances where a home office could give rise to a taxable presence. In other words, the specific facts and circumstances of each case will be important.
For non-UK companies with employees working from the UK
An understanding of the activities of your employees in the context of your business is important. The UK tax authorities have provided examples of employees of foreign businesses working in the UK –determining whether each scenario would create a ‘fixed place of business’ permanent establishment. The guidance is limited in scope but highlights that where employees are only working occasionally in the UK you may still need to consider their position on a case-by-case basis. Even where a 'fixed place of business' is not established, the position regarding dependent agents and permanent establishments should be considered.
If it is determined you have a presence in the UK, you must then calculate how much of the profit of the non-resident company is attributable to the PE. If there is no significant presence this may be very limited, but this will also be fact dependent. Importantly, you should be aware that even a minor presence in the UK would not remove the need for appropriate compliance.
For UK companies with employees working outside the UK
The local rules, treaties and local tax authority approach in each territory can differ. You should also remember that there are other triggers of corporate taxable presence - the habitual conclusion of contracts outside the territory of corporate residence could also create a taxable presence irrespective of the existence of a fixed place of business.
Be aware of the greater risks for your C-Suite
It is the work that is carried out that needs to be considered. With your C-Suite making business decisions, this leads to an increased risk of a PE being created. Therefore, you may need to balance this risk in your IRW policy with more strict conditions for the c-suite. Does a member of your c-suite have a holiday home abroad? In the event that the individual works from that holiday home regularly, say, a few weeks each year, the repetitive nature may be considered habitual or permanent by some tax authorities. Though this doesn’t just apply to the c-suite, it is likely the risk is elevated as a result of the tasks they undertake whilst abroad.
Read our full article from the Spring 2025 edition here. https://issuu.com/internationaladviser/ docs/ihra_spring_2025_-_online
Some countries have introduced new 'Digital Nomad' visas to cope with this trend, but not all have followed suit
Immigration Challenges
Some countries have introduced new 'Digital Nomad' visas to cope with this trend, but not all have followed suit. Remote work may be location-flexible, but legal obligations are not. There are potentially serious personal implications for your employees if they do not have the right visa when working abroad. In the most severe cases an individual may be refused entry from that country, even in a personal capacity.
Read more in our Global Tax Update article on page 10 on the position paper signed by several EU member states calling for the European Commission to establish a clear and robust legal framework on the posting of nationals of non-EU countries (third-country nationals or TCNs) within the EU. I have included some brief notes here on various countries to give an idea of the different approaches currently across the globe. The UK Government has updated its visitor visa guidance to explain what remote work it permits; however, it leaves much to interpretation. In India there is an anticipated introduction of a Digital Nomad Visa. Responsibility lies with the employee in Luxembourg. In Germany a new government is being formed, which may mean more restrictions on immigration. In Austria which residence and work permit might be applicable needs to be determined on a case-by-case basis. When visiting the Netherlands, as well as visa considerations, everyone (EU and non-EU nationals) must register in the local municipality if their stay exceeds a four-month period. For business visitors entering the United States or Canada, even short periods of remote work can blur the lines between permitted activities and unauthorised employment. Only Australian citizens, permanent residents, and certain New Zealand citizens have unrestricted rights to employment in Australia. All other people in Australia need a visa that enables them to be in and work in Australia lawfully.
Understanding and respecting the limits of each country’s rules is essential for protecting both the traveller and the organisation. In today’s mobile world, compliance must be intentional and informed.
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.
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.
Limiting The Risks By A WellDesigned International Remote Working Policy
As always, managing and monitoring the arrangements of employees is essential. Your IRW policy should allow your employees to work across various locations for several days per year, whilst reducing the risk and commercial obligations involved for your business.
When designing your IRW policy you should
• Ensure corporate tax issues are considered so that the risk of creating a UK and/or other offshore PE is managed
• Incorporate well thought out systems to keep track of your employees to meet your global compliance obligations, consider tech enabled support
• Include compliance with local employment law, health and safety obligations and monitoring sick employees
• Consider different tiers of policy for differing employee levels
• Formalise the process and communications for requests
Given the complexities involved with introducing a remote working policy, various stakeholders are needed to be involved in the process. This can include for example HR, Legal, C-Suite, Data teams and Tax. However, it is important to identify who is the ultimate owner of your IRW policy.
Conclusion And Call To Action
This is an evolving area, so once you have established your best practice it is advisable to keep reviewing how it is working for you. New global developments that impact need to be monitored and adapted to.
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 the authors of the previous articles; Matt Smith and Corina Roks, Zsolt Szelecki, and Joel Kara. In addition, for assistance in relation to immigration aspects Danielle Mapp and colleagues from our international offices (Preeti Sharma from BDO India, Karine Pontet from BDO Luxembourg, Christiane Anger and Stephanie Herbich from BDO Germany, Denise Berzsenyi from BDO Austria, Marjolein Boer and Kateryna Stienstra from BDO Netherlands and Saba Naqvi from BDO Canada) for their 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.
2026 Global HR Conference
You are invited to join us for International HR Adviser's annual Global HR Conference on Monday 15th June, 2026 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
event is
To register your interest in attending this event, that is for Senior Global HR Professionals only, please email helen@internatonalhradviser.com
Global Tax Update
Tax exemptions to attract talent on one hand alongside increasing costs and uncertainty for employers on the other.
With many countries now offering beneficial tax regimes to attract talent, does this help you and your employees? Are you up to date with what tax exemptions are being introduced as well as increasing employer costs and uncertainty in other countries.
As ever, care needs to be taken with an internationally mobile workforce, especially keeping on top of any rule changes in all jurisdictions where you have employees.
With continued changes to current rules across the globe, make sure that you are up to date with what’s new.
EU
Posting of Third-Country Nationals: A Call for Clear EU Legislation
A position paper signed by several EU member states – Belgium, Denmark, Germany, Italy, Latvia, Luxembourg, and the Netherlands - calls for the European Commission to establish a clear and robust legal framework on the posting of nationals of non-EU countries (third-country nationals or TCNs) within the EU. This initiative aims to address the increasing complexities and challenges that have emerged over the years in connection to TCNs.
Some key concepts developed from the current case law are deemed to be insufficiently clear and therefore need to be addressed. The signatory countries call on the
EU Commission to introduce clear definitions on the notion of “lawfully and habitually employed,” and to address the mandatory temporary nature of a posting by requiring that the duration of the posted worker’s contract exceeds that of the posting.
In addition, enhancements are said to be needed to cross-border enforcement of labour mobility rules to include verifying the actual activities of the sending service provider and ensuring that employment contracts genuinely reflect the temporary nature of postings to avoid exploitation.
BDO Comment
The free movement of persons and services within the EU has undeniably contributed to the economic vigour and competitive edge of the single market. However, this freedom has also introduced significant challenges, particularly in the realm of labour mobility. Notably, posted TCNs often find themselves in precarious situations, facing unfair, unhealthy, and unsafe working conditions due to the lack of harmonised EU legislation. The growing trend of posting TCNs across member states by cross-border service providers introduces risks such as social dumping, labour exploitation, and inadequate social security coverage.
Recognising these challenges, the signatory member states are advocating for the European Commission to take decisive action by proposing new legislation specifically focused on the posting of TCNs. Such legislation would provide clarity on the legal conditions required for the legitimate
posting of TCNs, ensuring that these workers are genuinely employed and not merely used to circumvent national labour laws.
The paper concludes that, by establishing a clear legal framework for the posting of TCNs, the EU would create a more equitable and competitive environment that safeguards the rights of all workers and maintains the integrity of the single market.
However, the position paper is merely a call to action by the EU Commission. If, and when, the Commission takes legislative action, remains to be seen.
AUSTRIA
A wider definition of homeworking in Austria
New regulations under the Austrian Telework Act entered into force on 1 January 2025 and bring both opportunities and challenges for local and international employers.
Office premises rented by the employee (so-called coworking spaces) or other locations chosen by the employee (such as internet cafés) are now also considered for telework under the regulations (i.e. as well as their home or the home of a close relative or partner).
To benefit from the teleworking allowance (EUR 3.00 per day for 100 days), the teleworking days must be reported to the tax authorities. To ensure proper documentation, you are legally required to document, and report telework days and any telework allowance granted on the annual payslip filed with the tax authorities (L16). Failure to report telework days results in the loss of the teleworking allowance. The allowance can either be granted tax-free by the employer and paid out with the regular payroll cycles, or the employee can deduct the respective amount as “income-related expenses” in the employee’s personal income tax return. Additionally, in some cases, employee can also claim expenses for ergonomic furniture, up to EUR 300 per fiscal year.
BDO Comment
Although the extension of the home office regulations to telework opens possibilities, foreign employers who employ remote workers in Austria may face restrictive regulations regarding the creation of a permanent establishment (PE) in Austria. Therefore, you should have the PE risk reviewed based on the activity performed by the employee in Austria right from the beginning.
From a risk perspective, it is important for you to be aware that accident insurance
coverage has been extended to include accidents that occur during telework in general, with the condition that these accidents must be related to the individual's employment. There is a differentiation between "telework in the narrow sense" (e.g., home office or coworking spaces) and "telework in the broader sense" (e.g., parks or cafés). Commuting accidents to and from work locations in the narrow sense are covered, while those in the broader sense are considered personal interests and are not covered by the (mandatory) accident insurance.
DENMARK
New strict requirements for the posting of foreign workers in Denmark
Since 1 January 2025, you must ensure that both Danish and foreign employees can present valid identification to the Danish Working Environment Authority and the Danish Agency for International Recruitment and Integration (SIRI) during inspection visits. From 1 January 2026, if you wish to post third-country nationals to Denmark you will be required to upload a copy of the service agreement, employment contracts, any posting agreements, and work permits for the individuals concerned to the Register of Foreign Service Providers (RUT from its Danish acronym). These requirements apply in addition to the information foreign employers are already required to report to RUT.
BDO
Comment
The increased compliance burden should not be ignored, and you will need to be prepared to ensure that you and your employees comply with these.
JAPAN
2025 Tax Reform’s Impact on Global Mobility in Japan
Japan’s 2025 tax reform includes significant changes to personal deductions. Out of many changes in the 2025 tax reform, we have highlighted the implications for global mobility.
Basic And Special Deductions
Due to the amendments, the non-taxable income threshold for salaried employees for income tax purposes will be raised from the current annual income of JPY 1.03 million to a maximum of JPY 1.60 million for 2025 and 2026 (total of JPY 950,000 basic deduction and JPY 650,000 employment income deduction).
However, the basic deduction amount for local inhabitant tax has not been increased in the 2025 tax reform, and it remains unchanged.
The 2025 tax reform also introduces a “special deduction for specific dependents”, allowing taxpayers to receive income deductions for dependents aged 19 to 22 in wider circumstances than previously given.
BDO Comment
The amendments related to personal deductions will apply to income tax from the 2025 tax year; however, since the effective date is 1 December 2025 for salaried employees, the changes will be reflected for the first time in the 2025 year-end adjustment ("Nenmatsu Chosei") or in the 2025 individual income tax return filed in March 2026.
During 2025, the withholding tax on monthly salary payments by companies will be based on the current deduction amounts before the amendments. The updated withholding tax tables will apply to payments made from January 2026 onwards. Therefore, there will be no significant changes in the monthly withholding tax amounts during 2025, but it is expected that any excess tax withheld will be refunded during the year-end adjustment. Additionally, for employees who cannot undergo the usual year-end adjustment, such as those on overseas assignments or those who resign midyear, special considerations will apply, as detailed below.
Employees Departing Japan Before 30 November 2025
The new deductions are not immediately applicable to employees who depart Japan by 30 November 2025. Because the effective date of the amended law is 1 December 2025, the year-end adjustment at the time of departure will be calculated based on the current law before the amendment. To apply the new deduction under the amended law to the income tax calculation, employees who received a year-end adjustment at the time of departure must appoint a tax agent and file a tax return through that tax agent.
Impact On Hypothetical Tax Calculations For Outbound Assignees
The amendments also affect hypothetical tax or net-pay guarantee calculations used in global mobility schemes. If you have long-term international assignees whose compensation structure is designed to guarantee the same net pay as if they remained working in Japan, recalculations will be required under the new deduction rates. You should review and adjust compensation packages accordingly, clearly communicating changes to the affected employees.
Tax Liability Borne By Employer For Inbound Assignees
If you are covering taxes for employees seconded to Japan from overseas you might need to revisit budgets for your Japanese tax liability. While this can present costsaving opportunities, it's essential to reassess and reconcile any discrepancies against previously established budgets, ensuring timely accounting adjustments and revisions.
SWITZERLAND
Swiss Employers Face New Certification
Obligations for Swiss/French Cross-Border Commuters
To ensure the proper functioning of the bilateral regulations on cross-border commuters concluded on 27 June 2023, since 1 January 2025, Swiss employers are obligated to certify the remote work performed by the employee. The certificate must be issued at the employee's request and must confirm specifically:
• The number of teleworking days or teleworking quota
• Working days in the form of temporary assignments in the country of residence
• Working days in the form of temporary assignments in third countries; and
• Overnight stays in Switzerland for employees.
The reporting form requirement applies explicitly to employees of Swiss employers who change employer in a given year.
The 40% home office work threshold also applies to cross-border employees between France and Switzerland who do not qualify under the 1983 regime on crossborder commuters (for example, if the Swiss working place is located outside the enumerated cantons).
BDO Comment
A French tax resident can work up to 40% in his home office for a Swiss employer and these days will generally count as Swiss working days for tax purposes. This arrangement led to an amendment of the Swiss Federal tax code effective 1 January 2025, that created a legal basis for the taxation of non-Swiss working days for tax residents in France, which was not known so far.
You should check today if your systems are recording the required information for this reporting.
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.
Fast-Track Leadership Development Through Strategic Talent Mobility
The demand for strong leaders is being felt by businesses from all industry sectors around the globe. Despite – or some might argue because of – the current economic headwinds and geopolitical uncertainty, global organisations must continue to invest in securing top talent and preparing a leadership pipeline that can adapt, engage, and deliver results in an increasingly complex world. Developing these leaders requires more than a robust curriculum or static mentorship programmes. It calls for immersive, hands-on learning experiences that fully test and refine critical human-centric skills.
Strategic talent mobility serves as a key lever in this mission. By enabling employees to work across different geographies, cultures, and business functions, organisations can cultivate future-ready leaders equipped with the resilience, empathy, and problem-solving skills essential for current and future challenges. Talent mobility, when used strategically, can accelerate leadership development and create a long-term competitive advantage.
Does Leadership Development Need A Rethink?
Traditional leadership programmes often fail to fully address the growing complexities of engaging in global business today. As organisations confront technological disruption, shifting workforce demographics, and economic volatility, CEOs and senior HR leaders agree that leaders of the future need to master a blend of technological and human-centric competencies.
Skills For The Future Of Work
The World Economic Forum and other leading organisations consistently highlight these high-demand capabilities for future leaders:
• Critical Problem Solving: Leaders face complex challenges in ambiguous environments and are called on to make critical decisions quickly and confidently
• Resilience And Agility: Adapting to change while maintaining focus and composure under pressure is a challenging balancing act that requires unique skills
• Multicultural Aptitude: The ability to understand, appreciate, lead and collaborate across diverse cultural settings is essential in our globally connected world
• Empathy And Emotional Intelligence: Building genuine relationships and managing diverse teams with care and understanding fosters greater employee engagement, productivity and retention. While these so-called “soft skills” are essential, they can’t be acquired in isolation or learned in an online or classroom management course. They must be honed through experience, making talent mobility a powerful conduit for success.
A sound talent mobility strategy, fully aligned with overall business goals, offers a double advantage
The Role Of Talent Mobility
A sound talent mobility strategy, fully aligned with overall business goals, offers a double advantage. It can help address immediate
operational goals by moving employees to where they are most needed and filling talent gaps. It also serves as a foundational framework for experiential learning, offering employees real-world opportunities to develop the competencies needed to lead in a dynamic global environment.
Mobility contributes to the development of future leaders in several important ways:
Immersive Learning Opportunities
Assigning or permanently transferring employees to roles in different regions, business units or markets immerses them in diverse environments that challenge their problem-solving skills, cultural awareness, and adaptability. These cross-functional and crossborder experiences foster a more holistic view of the business and empower future leaders to make decisions that bridge organisational silos.
Real-World Knowledge Sharing
Mobility facilitates knowledge-sharing across generational, functional, and regional lines. This collaborative learning is vital for leadership development, particularly as businesses work to capture the knowledge and expertise of their more senior team members who may be soon exiting the workforce.
Developing PeopleCentered Skills
What better way to cultivate human-centric leadership capabilities than by placing individuals in diverse environments with varying levels of complexity? Exposure to different individuals, cultures, and business challenges builds the resilience, empathy, and agility essential for successful people management in today’s world.
Implementing Mobility As A Strategic Development Tool
HR managers, global mobility specialists, and talent acquisition leaders looking to integrate mobility into their leadership development strategies more effectively should consider a few important steps:
1. Secure Buy-In From Leadership
The C-Suite plays a critical role in the success of mobility initiatives. Build a compelling
FAST-TRACK LEADERSHIP DEVELOPMENT
case by presenting data on the return on investment (ROI) of leadership mobility programmes, including their positive impact on retention and engagement rates.
2. Establish Clear Objectives
Define specific goals for mobility programmes. Whether the focus is on developing resilience, problem-solving, or global market insights, aligning assignments with these outcomes ensures targeted skill-building.
3. Foster Positive Mobility Experiences
Delivering positive experiences is essential for all employees, but especially those uprooting their lives and families to take on a new assignment. Ensure employees receive adequate logistical, emotional, and cultural support before, during, and after their moves.
4. Leverage Flexibility
Today’s workforce places a high value on flexible, tailored support, and mobility programmes should reflect this. Offering different types of assignments, such as permanent transfers, project-based work or rotational opportunities to collaborate across different business units and regions can encourage broader participation.
5. Track And Measure Success
Invest in advanced reporting tools to evaluate the effectiveness of mobility initiatives.
Metrics like leadership readiness, retention rates, and time-to-fill critical vacancies provide valuable insights to refine programmes over time. However you choose to collect and measure feedback, be sure to act on it, so employees feel heard and valued.
Building The Business Case For Talent Mobility
Failure to prioritise leadership development through experiential learning risks significant repercussions. Poor management and lack of accountability are some of the biggest drivers of talent flight, along with a perceived lack of growth opportunities. The loss of key personnel can increase recruitment costs, reduce morale, and impact productivity.
On the other hand, companies that invest in management development programmes consistently outperform the competition. Their employees are more engaged, their businesses are more agile, and they achieve better overall performance. An effective and strategic talent mobility programme can go a long way toward helping organisations ensure leadership readiness, enhance employee satisfaction, and build a resilient workforce prepared to tackle the challenges of tomorrow.
While it’s important to acknowledge that the current environment keeps the pressure to contain costs very real, economic conditions ebb and flow. Prioritising an
investment in talent mobility now won’t just develop better leaders – it can help you build a stronger, more sustainable and future-ready organisation.
KRISTIN WHITE
Kristin White is Director, Communications & Thought Leadership 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.
Immigration: How Quickly Will You Receive Your UK Visa?
One of the most common questions
HR Managers and individuals have when arranging UK visas for key personnel is: How long will the process take? Fortunately, the Home Office has established customer service standards for visa processing times, aiming to provide decisions within specific timeframes.
A UK visa processing time begins once you have submitted the application online and the applicant has verified their identity by, for example, attending an appointment at a Visa Application Centre (VAC) and ends when you received confirmation from the Home Office notifying you of the outcome.
Home Office Service Aims
Home Office aims to process:
• Non-settlement applications within 15 working days (approximately 3 weeks)
• Settlement applications within 120 working days (about 24 weeks)
However, these are targets, not guarantees. Processing times can vary depending on several factors. The table aside set out the processing times currently being achieved by the Home Office for each visa category.
There are occasions where it may take longer to get a decision on your application. This includes when you need to provide further evidence or attend an interview, and when the Home Office decides that your application is “not straightforward” and therefore it is not possible to decide your application
within the customer service targets. If this happens, the Home Office will usually notify you by email.
Delays Can Occur
Unfortunately, UK visa processing times can be unpredictable. Where delays occur this can lead to a lot of stress being felt - especially those workers and families seeking to relocate to the UK before a specific date. For example, at this time of year most families will want to arrive in the UK before their children start school in September, rather than after. To mitigate stress and avoid last-minute issues, it’s wise to submit applications well in advance, building in extra contingency time. Early application filing helps prevent the anxiety associated with tight deadlines.
However, these are targets, not guarantees
Priority Services Can Help
To reduce waiting times, applicants can opt for Home Office priority services. Depending on the visa type and service availability, you may pay extra for faster processing:
• Priority Service: Typically provides a
decision within 5 working days. For Family visas from outside the UK, it may take up to 30 working days
• Super Priority Service: Usually guarantees a decision by the end of the next working day.
If your application is urgent, Smith Stone Walters recommends using the Priority or Super Priority services where they are available.
Key To Avoiding Delays
Most importantly, avoiding visa delays mainly depends on the quality and the accuracy of your application. We strongly advise double-checking that you have provided all the required information and supporting documents, and that all details are correct.
Missing or incorrect information is one of the main causes of processing delays and refusals - often an avoidable issue. Ensuring your application is complete and accurate the first time gives you the best chance of securing your visa as quickly as possible.
DAVID HUGKULSTONE
Written by David Hugkulstone, Director
E: David.Hugkulstone@smithstonewalters.com
Te: +44 (0) 208 461 6660
SMITH STONE WALTERS
Smith Stone Walters is now part of Envoy Global, the leading corporate immigration services provider committed to delivering a better way for companies to manage global immigration.
This partnership will greatly enhance our global footprint and enable us to meet the growing needs of our clients even more effectively.
If you would like to find out more about the enhanced level of global immigration services now available to your business, please contact us today at info@smithstonewalters.com or by calling +44 (0) 208 461 6660
Measuring The Return On Investment For Global Mobility
Over the past two decades, Mercer surveys have shown that many companies struggle to quantify the value of international mobility. More than 95% of companies say they cannot accurately measure their return on investment (ROI) (Mercer Worldwide International Assignments Policies and Practices surveys).
The Importance Of ROI For Mobility Teams
This challenge is particularly pressing now. Many mobility teams are underresourced, with 51% reporting insufficient headcount and technology (Mercer 2025 Talent Mobility Outlook). Building effective business cases for new budgets is difficult without being able to quantify and demonstrate the value of mobility.
Furthermore, mobility now includes new forms of cross-border work and international remote work. HR teams face similar challenges with these new practices. For example, two-thirds of companies allow temporary international remote work, or “workation”, and have policies in place to manage it. Alarmingly, 96% of these companies lack metrics to measure the success of their new policies.
Historically, mobility teams have been trying to adopt a more strategic role, but this has proven elusive. Often, a significant barrier is their limited fluency in the language of finance, which focuses on measuring the ROI of business activities.
Mobility professionals often point to a lack of time and resources as obstacles to measuring ROI. They may also struggle to quantify the value of mobility and, to a lesser extent, face challenges related to insufficient input from the business and access to relevant data.
Setting A Realistic Approach
Measuring ROI is about finding the right balance, not a frantic rush to quantify everything or discover a magic formula. It involves developing a set of approaches that is good enough to allow stakeholders to have a better understanding of return
on investment and make informed decisions about work from anywhere in their organisation.
Here are useful principles to follow:
• This is not about a one-size-fits-all formula. Instead, it should be a set of approaches that meet the needs of different users and organisations, depending on their resources, analytical maturity and the size of the remote worker population
• Develop a fact-based, rigorous, yet pragmatic approach that all stakeholders can use
• Start from a strictly neutral position. The ROI measure should indicate whether mobility practices are a good solution for a given organisation. Avoid preconceptions or justifying past choices and practices in retrospect.
How To Start The Journey
Many mobility professionals seek guidance on initiating the ROI measurement process. Here are some recommended steps:
1. Define Clear Goals
The foundation of successful ROI measurement begins with clearly defined goals. Organisations must articulate what they aim to achieve through their global mobility initiatives. Key questions to consider include:
• What do I want to achieve? Identify specific outcomes, such as skills transfer, leadership development or achieving market expansion
• What are the most relevant mobility investment clusters? Consider the areas where investments will be made, such assignment types, mobility function processes and various mobility programmes and policies
• For whom or what do I need the information? Determine the stakeholders who will benefit from the ROI analysis, including senior leadership, finance and operational teams
• Which aspects do I want to highlight and measure? Decide on focus areas, such as employee satisfaction, retention rates or skills improvements.
2. Identify Appropriate Metrics And Criteria
Once goals are established, the next step is to identify suitable metrics and criteria for measuring success. This involves asking:
• What are suitable key performance indicators (KPIs) for meaningful results? KPIs should align with the defined goals and provide insights into the effectiveness of mobility programmes. Examples may include cost per assignment, time to fill positions and employee performance post-assignment
• How can financial data inform decisionmaking? While financial data is crucial, it may not apply to all investment decisions. To provide a holistic view of ROI, consider qualitative metrics, such as employee engagement and cultural integration.
3. Assess Post-Implementation Success
Measuring ROI is a marathon, not a sprint; it requires continuous effort and adjustment. After implementing mobility initiatives, determine whether the defined goals have been achieved. Reflect on the following questions if goals are not met:
• Did I have the wrong focus? Re-evaluate whether the initial objectives were realistic and aligned with organisational needs
• Did I use the wrong metrics or criteria? Check that the chosen KPIs accurately reflects the desired outcomes
• Did I measure correctly? Review the methodologies used for data collection and analysis to confirm their validity
• Do I have the right data sources? See if your data covers everything needed to reach those goals.
Involving different stakeholders in the ROI measurement journey is essential for capturing the big picture. Collaboration across departments can enhance data collection and provide diverse perspectives. This might involve working with teams from finance, operations and business units to gather comprehensive data that supports KPI implementation. Finally, define how to use the insights gained from the ROI analysis. This can inform future mobility strategies, enhance decision-making and drive continuous improvement.
Building Blocks To Understand The Cost And Value Of Global Mobility
1. Establish a hierarchy of evidence/what we know (evidence-based approach)
• Simple gut feelings
• Anecdotal evidence
• Structured feedback from stakeholders
• Structured facts/data output
• In-depth factual research.
2. Cost Transparency
• Direct costs
• Indirect costs (including mobility management costs and lost talent)
• Risks (impact multiplied by probability).
3. Value Assessment
• Quantitative: measurable output (such as sales and training completed)
• Qualitative: satisfaction from assignees, families and receiving units.
4. Varied Perspectives
• Job-related outcomes (performance)
• Talent related outcomes (retention, skill transfer)
• Mobility-related outcomes (assignee and family)
• Efficiency of mobility management
• ESG considerations (environmental, social, and diversity factors).
The Mobility Investment Cluster Approach
Measuring ROI in mobility can be nuanced and multifaceted. Establishing a single method for calculating ROI that provides clarity and objectivity can be challenging. Mercer recommends adopting an investment cluster approach that focuses on key areas reflecting typical talent mobility investment decisions. This structured framework allows organisations to evaluate their mobility initiatives comprehensively and strategically.
1. Investment In Specific Assignments/Assignees
Different assignment purposes and types of movements necessitate tailored measurement approaches. Organisations could consider the following aspects:
• Diverse assignment objectives: Each assignment can have unique goals, such as skills development, knowledge transfer or market expansion. Metrics used to evaluate success should align with these specific objectives
• Training outcomes versus task results: It is essential to differentiate between measuring the effectiveness of developmental programmes and assessing the tangible results of assignments. For instance, while training outcomes may focus on skill acquisition, task results should evaluate the impact on business performance
• Development metrics: Organisations need robust metrics to measure success in employee development, such as improvements in competencies, leadership capabilities and overall performance after the assignment.
2. Investment In The Global Mobility Function
Investing in the global mobility function itself is important for enhancing service delivery and operational efficiency. Common considerations include:
• Improving service delivery models: Organisations should refine their service delivery models by leveraging technology and enhancing competencies within the mobility team. This may involve developing solid business cases to secure additional budget for increasing headcount and upgrading technology.
Organisations should visualise and clarify different service delivery models, considering factors such as cost, flexibility, scalability, control and quality. Comparing in-house mobility management with outsourcing can provide insights into the most effective approach for the organisation.
• Measuring benefits and returns on technology implementation: It is important to assess the benefits derived from technology investments in the mobility function, ensuring that these tools enhance efficiency and effectiveness
• Measuring true ROI: Accurately calculating the true ROI of the global mobility function goes beyond basic efficiency metrics. This requires a deeper analysis of how mobility initiatives contribute to overall business objectives and employee satisfaction.
Investing in the global mobility function itself is important for enhancing service delivery and operational efficiency
3. Investment In Talent Mobility Programmes And Policies
Evaluating the value of specific talent mobility programmes is essential for determining their effectiveness and sustainability. This is particularly relevant for emerging forms of mobility, such as international remote work, where the value proposition may be less clear.
Key areas to consider include:
• Programme evaluation: Organisations should assess whether to continue, modify or discontinue specific mobility programmes based on their measured impact. This evaluation should incorporate both qualitative and quantitative data
• Benefits of promoting personnel changes: Encouraging personnel changes can enhance diversity and foster creativity within teams
• Importance of investing in international hiring programmes: Investing in international hiring initiatives can help attract a diverse talent pool and enhance the organisation’s global presence.
Enhancing The Credibility Of Mobility Initiatives
Measuring ROI for global mobility may seem intimidating at first, but the journey is manageable and rewarding. Every small winwhether it’s demonstrating enhanced employee engagement, improved talent retention or a more agile response from the mobility function - reinforces the credibility of the mobility and its role in shaping talent and business strategies. As mobility and HR professionals, let’s view ROI measurement as an opportunity rather than a burden. By sharing experiences and insights, we can cultivate a community that champions global mobility as a strategic asset rather than a cost centre.
Effective Leadership In HR With A Future With AI: Leading Employees Through AI
The emerging technology of artificial intelligence is bringing big changes for businesses, executives must guide their companies through these new tough transitions. AI has the potential to improve human skills, however, it also worries employees. Employees may fear AI will take their jobs, executives must bring in AI ethically and thoughtfully to balance the path forward. Managers should also be optimistic about AI's chances to aid humans. They should also be realistic about employees' concerns, and with open discussions, managers can ease uncertainty about AI. They should explain how AI can work with employees, not against them. They must focus on ethics and peoplenot just efficiency. Adapting to this change is very hard. Nevertheless, organisations can still thrive in the AI age with responsible leadership focused on empowering people.
Executives should effectively inspire trust to guide transitions. Their motivation and belief in people's abilities can provide reassurance despite uncertainty. They should persist in finding ethical AI approaches, choosing human values over convenience. Managers must also show flexibility in readying their workforce to use AI responsibly. Psychological strengths like hope and resilience can also help executives manage AI risks. With an ethical digital culture focused on human collaboration with AI, managers can better steer their companies through complex changes. Employees will then feel excited by AI’s potential, not threatened.
The New Pillars Of Leadership In The AI Age
The eight pillars of effective leadership in the AI age are discussed here:
1. Making Employees Feel More Confident
AI technology disruptions can bring many changes, from remote work and skills gaps to complex matrixed organisations that present corporate leaders with daunting challenges when modeling desired behaviours such as transparency and morality. Navigating virtual environments further complicates creating trust through screens. Executives who believe in themselves and their abilities can better make people feel more confident that they can guide the organisation through big, complex changes due to new technologies like artificial intelligence. Their self-confidence and related motivation help give reassurance and make people feel less uncertain even when things feel unclear or worrying because of the changes, managing transitions capably. Executives can also reassure people amidst uncertainty by openly displaying their drive, motivation, and leadership capability through their words and actions.
Navigating virtual environments further complicates creating trust through screens
2. Sustaining Hope
Reliance on AI and data for decisionmaking may compromise traditional values like transparency and morality, leading to managers who rely more heavily on algorithmic insights than on their human reasoning capability and judgment learned over years of experience. Bias exists everywhere - humans included while there may also be risks in using Machine Learning technologies. As pressures to rely solely on data increase, executives who excel in hope
can better identify alternative ethical AI approaches that respect transparency and human impacts.
3. Creating Transparency
AI systems tend to be inherently opaque, concealing their inner workings from users and powered by proprietary black boxes. This lack of transparency contradicts managers’ emphasis on openness and transparency. Executives should prioritise open dialogue when making and explaining decisions; unfortunately, AI systems make it nearly impossible to explain AI-generated recommendations or insights. This can lead to distrust and anxiety among employees affected by mysterious AI systems.
People also might worry that AI might be biased and unethical, leading to unethical uses that go undetected and unchecked by managers who cannot monitor audit algorithms to guarantee their moral behaviour. Managers must act to mitigate gaps between opaque AI systems and their open values of openness that create risks and their values of transparency as core values of authenticity and transparency among their audiences. They must also take proactive steps (i.e., ethics reviews, algorithm audits, or explainable AI techniques). These measures are designed to restore transparency and build trust against this artificial opacity created by opaque systems that mismatch these values. Otherwise, this can create distrust among users as well as unethical AI technology uses.
4. Building Resilience
Resilience can help corporate leaders adapt to fast changes from opaque technologies like AI. Resilience also improves managers' ability to recover from problems and put in place algorithm auditing to restore transparency. Executives who adapt well to change show flexibility in the face of AI disruption by proactively planning training to develop responsible AI skills in their workforce. From research on healthcare, it emerges that adaptability empowers managers high in resilience to put in place ethical checks on black box algorithms and find new ways to maintain transparency when faced with opaque AI and machine learning systems.
5. Building Trust
Since employees fear job loss due to automation and AI, managers must proactively build employee trust by communicating openly and transparently about how AI will augment roles rather than replace jobs. They must strike the right tone when discussing how AI technology will impact jobs. They should also be realistic. AI will transform roles and potentially replace some jobs. Corporate leaders should transparently acknowledge that fact. However, they should also need to provide reassurance and optimism. Technology has historically created more opportunities than it destroys, and AI can significantly boost human productivity. Managers should focus on how AI can augment human skills and talents. This balanced and hopeful realism can ease fears of change.
Managers can build trust through various means. They can explain openly how AI enhances human skills. This helps employees believe they can succeed with AI's help, prioritising human skills. In doing this, executives can also design systems that enable teamwork between humans and AI, which fosters trust.
6. Promoting Responsibility And Ethics
The emerging age of AI promotes new models of ethical use of technology and shapes a new model of corporate culture in which employees should be aware that AI can assist humans and not replace them. Fostering an ethical digital culture is critical. As AI becomes more integrated, corporate leaders must vocally and visibly promote responsible and ethical use of the technology. Managers must make clear that AI is meant to enhance, not diminish, uniquely human abilities like creativity, empathy, and judgment. When business leaders demonstrate ethics, they also build employee trust in AI. To do this, executives can create an ethical organisational culture where AI assists humans rather than replaces them. Their optimistic approach includes monitoring the ethical aspects of AI while keeping its focus on helping humans. These actions contribute to creating an ethical climate while shaping a culture where opportunities for human enhancement arise.
7. Digging Further To Determine The Best Strategies
When companies consider investing in new technology like robots, AI, or other advanced computer programmes, corporate leaders start with various assessments including financial, work process, and organisational considerations. But managers should also understand it’s more than numbers. They spend time considering
how these significant changes might impact people who work there through factors like job security and well-being. Managers need to ask key questions regarding any proposed changes. These key questions are: “Will these changes cause someone else’s job or career to change?” or “Who might find adapting difficult”? In addition, executives also have an ethical responsibility when decisions could impact others. They can consider this by providing various forms of support such as extra training for those employees who feel threatened by any forthcoming adjustments. In this case, leaders can dig further and determine why before devising strategies.
Executives also have a moral duty to consider how AI might subjugate human dignity or dehumanise aspects of work
8. Safeguarding Employees’ Humanity
Managers have an ethical responsibility to prioritise workplace humanity. They should emphasise transparency, ethics, and morality to create trust when implementing AI or emerging technologies. Corporate leaders implementing AI technology must not accept data-driven metrics or efficiency gains alone as justification; doing so would represent an ethical breach.
Executives also have a moral duty to consider how AI might subjugate human dignity or dehumanise aspects of work. If an AI system’s metrics will treat people like disposable cogs, then its implementation must be rejected on moral grounds. They must mitigate these risks by showing openness, carefully assessing impacts, and upholding an unwavering dedication to safeguarding people’s humanity. When integrating AI systems, managers should also clearly communicate the purpose and limitations of these technologies and
consider any risks that might occur rather than dismiss them outright.
Furthermore, managers must guard against profit-driven attempts to turn work into mechanical data-driven processes devoid of meaning. They must prioritise respecting human dignity over any productivity gains or cost savings. By doing this, executives in the AI age must champion timeless human-centric leadership virtues such as morality, empathy, and ethical empowerment as an antidote against technology’s potentially dehumanising effects. Only in this way, they set an example for an ethical AI deployment that augments rather than diminishes workplace humanity.
Preparing Employees For This New Leadership
Here are also five suggestions that can help managers better prepare the minds of employees for the implementation of these eight leadership pillars:
• First, use hope to provide training for the visualisation of quantum goals and contingency planning. Have followers practice flexibility in finding new solutions by providing hope coupled with resources and tolerance for possible mistakes when they occur
• Second, use resilience to build up high recovery from artificial intelligence drawbacks such as cyber-attacks. Resilience can be manifested through workshops on managing stress, bouncing back from setbacks, and changing management skills to repackage negative stimuli
• Third, use self-efficacy to boost confidence by setting achievable targets that stretch skill levels but are not too difficult, provide mentoring from senior and tenured employees to those recently onboarded, and give positive feedback on accomplishments whenever possible. We found that cross-training in similar areas of the business units helps people grow in depth and breadth
• Fourth, use optimism to foster techniques such as identifying negative thought patterns and changing them to positive ones, reframing issues positively faced by artificial intelligence, and focusing on opportunities when they arise
• Fifth, use transparency to enhance goals and objectives with education and communication through the artificial intelligence transition process. Transparency needs to be coupled with clear communication of plans in an ongoing process, always inviting inputs and sharing from and across employees.
MOSTAFA SAYYADI & MICHAEL J. PROVITERA
4 Reasons ‘Quiet Firing’ Is Bad For Business
While the phenomenon of “quiet quitting” - representing an employee doing the least required for their job to just “get by” until they opt to leave or are let go - having gained its fair share of attention in recent years, another clandestine workplace practice us underway: quiet firing. This subtle, equally insidious practice is typified by employees being “nudged out” amid a workplace culture and conditions cultivating voluntary resignations rather than the staffer being formally terminated.
There are a litany of ways companies can passively undertake quiet firing, with many associated with unwelcome changes. For example, according to Harvard Business Review (HBR), such changes typifying quiet firing often include that related to workplace job responsibilities, compensation, working conditions and supervisor communication. The report included specific examples like reassigning important job responsibilities to other employees; pay cuts or not providing expected yearly bonuses or raises; changing work hours or regular shifts; forcing relocation; evaluating an employee unfairly by providing excessively harsh feedback or constant criticism of work; and not giving an employee credit for their work, or even worse, giving the credit to others. Pew Research findings uphold these revelations, citing that “low pay, a lack of opportunities for advancement and feeling disrespected at work are the top reasons why Americans quit their jobs” during the study period.
“Quiet firing, a paradigm that has emerged in recent discussions about workplace dynamics, refers to the subtle and often indirect ways in which organisations push employees out of their roles”, notes relational leadership and management authority Cheryl L. Mason, J.D., an acclaimed TEDx speaker, author and Chief Catalyst at Catalyst Leadership Management - a firm helping leaders function with authenticity and empathy for an impactful morale-boosting, people-centric management approach. “Unlike traditional firing, which is direct and straightforward, quiet firing employs passive-aggressive tactics
such as giving employees unmanageable workloads, excluding them from key projects, or micromanaging them to the point of frustration. While this approach might seem like an easy way to avoid confrontation, it can have detrimental effects on both the organisation and its leaders”.
According to Mason, a staff relations authority whose widely hailed book “Dare to Relate: Leading with a Fierce Heart” centres on cultivating strong workforce relationships, “quiet firing hurts organisations by adversely impacting outcomes, deflating employee morale, damaging reputations and costing money ... just to name a few of the counterproductive effects”.
Here, Mason further details these four particular ways that quiet firing can hurt an organisation.
When organisations quietly fire employees, they risk losing valuable talent. These employees often possess unique skills, knowledge, and experience that are crucial to the success of the organisation
Adversely Impacting Outcomes
When organisations quietly fire employees, they risk losing valuable talent. These employees often possess unique skills, knowledge, and experience that are crucial to the success of the organisation. By pushing them out, organisations not only lose these assets but also disrupt workflows and project timelines. The remaining employees may struggle to fill the gaps, leading to decreased productivity and suboptimal outcomes.
Deflating Employee Morale
Quiet firing creates a toxic work environment where employees feel undervalued and unsupported. This can lead to a significant drop in morale, as employees become disengaged and demotivated. When workers see their colleagues being quietly pushed out, it fosters an atmosphere of fear and uncertainty. This can lead to increased stress, reduced job satisfaction, and higher turnover rates, all of which are detrimental to organisational health.
Hindering Reputation
Organisations that engage in quiet firing risk damaging their reputation. Word spreads quickly in professional networks, and employees who feel mistreated are likely to share their experiences. This can lead to negative reviews on platforms like Glassdoor, making it difficult for the organisation to attract top talent. A tarnished reputation can also affect relationships with clients, partners, and other stakeholders, further harming the organisation's prospects.
Increased Expenses
Quiet firing is not a cost-effective strategy. The process of hiring and training new employees is expensive and time-consuming. When experienced employees are pushed out, organisations must invest in recruiting and onboarding replacements. Additionally, the loss of institutional knowledge can lead to costly mistakes and inefficiencies. In the long run, quiet firing can result in higher operational costs and reduced profitability.
“Quiet firing might seem like an easy way to manage difficult employees, but it is a shortsighted approach that can have far-reaching negative consequences”, says Mason.
Apparently, this can include legal ramification. According to the HBR report, if one suspects they are being quiet fired they can seek legal help.
“Sometimes consulting with an attorney or union representative can help you assess the severity of a situation and determine the best way to handle it”, the report outlines. “In addition, sometimes just the knowledge that you have consulted with an attorney or union representative is enough to deter a supervisor from continuing down the path of quiet firing”.
Mason urges a more empathetic, EQ-driven human resources approach. “Instead of taking the quiet firing approach, leaders should focus on understanding employee needs, strategically allocating resources, building strong relationships and
supporting and developing their teams. By doing so, they can create a positive work environment that fosters engagement, productivity, and long-term success”.
By developing a workplace culture in this way, leaders can avoid creating a toxic workplace environment exemplified by poor communication, ineffective leadership, low morale and high turnover. Indeed, a supportive and nurturing atmosphere founded on open dialogue with approachable managers can greatly enhance staff satisfaction and retention. This kind of respectful, sensitive and employeeforward approach can also notably improve
MERILEE KERN
individual and team performance, reduce absenteeism, bolster reputation and thwart other costly budget busters that undermine the success and sustainability of the organisation at large. Don’t quiet fire, but rather enthusiastically inspire!
• https://www.pewresearch.org/shortreads/2022/03/09/majority-of-workerswho-quit-a-job-in-2021-cite-low-pay-noopportunities-for-advancement-feelingdisrespected/ The 2025 Guide contains content covering:
Merilee Kern, MBA is an internationally-regarded brand strategist and analyst who reports on noteworthy industry change makers, movers, shakers and innovators across all B2B and B2C categories. This includes field experts and thought leaders, brands, products, services, destinations and events. Merilee is Founder, Executive Editor a nd Producer of “The Luxe List” as well as Host of the “Savvy Ventures” business TV show that airs nationally on FOX Business TV and Bloomberg TV and the “Savvy Living” lifestyle TV show that airs in New York, Los Angeles, San Francisco, Miami, Atlanta and other major markets on CBS, FOX and other top networks. As a prolific business and consumer trends, lifestyle and leisure industry voice of authority and tastemaker, she keeps her finger on the pulse of the marketplace in search of new and innovative must-haves and exemplary experiences at all price points, from the affordable to the extreme—also delving into the minds behind the brands. Her work reaches multi-millions worldwide via broadcast TV (her own shows and copious others on which she appears) as well as a myriad of print and online publications. Connect with her at www.TheLuxeList.com and www.SavvyLiving.tv / Instagram www.Instagram. com/MerileeKern / Twitter www.Twitter.com/MerileeKern / Facebook www.Facebook.com/ MerileeKernOfficial / LinkedIN www.LinkedIn.com/in/MerileeKern.
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.
Please share our website with your UK-bound expatriate colleagues, www.expatsguidetotheuk.com which is the digital platform for the Guide.
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
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.
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
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.
The 2026 Global HR Conference
will take place on Monday 15th June 2026 at
The Royal Automobile Club, Pall Mall, London.
For further information please contact helen@internationalhradviser.com
