How To Save Costs On Your Global Mobility Program
Find out how to save costs on your global mobility program while still providing the necessary support to ensure a smooth transition for your employees.
Global mobility programs are essential for businesses operating internationally. They allow companies to deploy talent across borders, enter new markets, and drive critical projects.
However, they also come with significant costs. Housing, relocation allowances, tax compliance, expenses can quickly spiral out of control if you’re not proactive.
The good news is that reducing costs doesn’t mean sacrificing quality or the employee experience. With careful planning and a few targeted changes, you can manage costs while keeping your mobility program effective and employee-friendly.
Here are 10 practical strategies to help you achieve that.
1. Simplify Your Mobility Policy
Complex, outdated policies are a common source of unnecessary expenses. It’s time to revisit your current policy and ask ‘Is it still relevant?’
For instance, instead of reimbursing every expense, down to moving boxes or meals, consider offering a lump-sum relocation allowance. This simplifies the process for you and gives employees more control over their budgets.
You should also review benefits that no longer add value. If certain perks are rarely used or don’t align with current employee needs, remove them. A leaner, more focused policy saves both time and money.
2. Leverage Technology for Efficiency
Global mobility comes with a lot of moving parts. Managing everything manually increases the risk of errors and makes it harder to spot cost-saving opportunities.
Invest in technology that automates key tasks such as expense tracking, tax calculations, and compliance monitoring. Mobility management platforms can provide real-time insights, helping you identify where your money is going and where you might be overspending.
The result? Better control, fewer administrative burdens, and fewer costly mistakes.
3. Reassess Assignment Durations
Long-term international assignments are often the biggest expense in a mobility program. While they’re sometimes necessary, it’s worth considering alternatives that achieve similar results for less.
For example:
- Short-term assignments: Employees relocate for a few months instead of years.
- Commuter assignments: Employees travel frequently between countries rather than moving permanently.
- Virtual assignments: With remote work, employees can fulfil international responsibilities without relocating.
Each of these options can deliver business outcomes at a much lower cost.
4. Implement a Tiered Approach to Benefits
Not all assignments require the same level of support. A senior executive overseeing a large-scale expansion will need more assistance than an employee working on a short-term project.
A tiered benefits structure allows you to allocate resources efficiently:
- Top Tier: Full support for senior roles, including housing, family relocation, and schooling.
- Mid Tier: Partial support, such as temporary housing or limited relocation allowances.
- Basic Tier: Essential support for short-term assignments, like airfare and minimal relocation expenses.
This approach ensures critical roles get the support they need while preventing overspending on less demanding assignments.
5. Partner with Local Experts
Moving employees to a new country means moving into unfamiliar markets, systems, and costs. Without local expertise, it’s easy to overspend on housing, tax structures, and relocation services.
Local partners such as relocation agencies or tax advisors can help you find cost-effective solutions. They know the regional market inside out, ensuring you get fair prices for housing, schooling, and other necessities.
This not only saves money but also improves the relocation experience for your employees.
6. Negotiate Vendor Contracts
Relocation involves multiple vendors: movers, travel agencies, property agents, and more. If you’re not actively negotiating these contracts, you’re likely paying more than you should.
Start building long-term relationships with key vendors. Reliable, ongoing business gives you leverage to secure discounted rates and better terms.
It’s also a good idea to review contracts regularly. Costs can creep up over time, so make renegotiating or exploring other options part of your routine.
7. Optimise Tax Management
Tax costs are often one of the most overlooked expenses in global mobility programs. Without a clear strategy, tax liabilities can pile up for both your company and your employees.
Work with tax specialists to identify efficient ways to structure compensation and allowances.
For example:
- Providing housing or transportation allowances in kind can sometimes be more tax-efficient than cash payments.
- Leveraging double taxation agreements can help avoid unnecessary tax bills.
Proper tax planning ensures compliance while keeping costs down.
8. Hire Local Talent When Possible
In some cases, the simplest way to save on relocation costs is to avoid relocation altogether. If you can hire local talent with the skills you need, you’ll save significantly on travel, housing, and tax complexities.
Local employees also bring a deeper understanding of the market and cultural nuances, which can add long-term value to your operations.
Relocation will always be necessary for critical roles, but prioritising local hires when feasible can reduce overall costs.
9. Monitor Costs and Performance
You can’t fix what you don’t measure. To keep costs under control, you need clear visibility into your global mobility expenses.
Track key metrics such as:
- Average cost per relocation.
- Total spend on housing, travel, and allowances.
- Employee satisfaction with relocation support.
By regularly reviewing this data, you can identify where you’re overspending and make adjustments to improve both costs and outcomes.
10. Review Your Benefits Regularly
Benefits packages are a major cost factor in any mobility program. While they’re important, it’s worth asking whether every benefit still serves its purpose.
For example:
- Could more modest accommodation be provided without reducing quality of life?
- Are business-class flights necessary for every move?
- Are there perks that employees rarely use?
Focus on the benefits that truly matter to employees, and look for opportunities to trim unnecessary costs.
How Beyond Borders HR Can Support You
Balancing costs with employee experience in a global mobility program isn’t easy. It requires careful planning, practical solutions, and local expertise.
At Beyond Borders HR, we can help you:
- Review and simplify your mobility policies.
- Identify cost-saving opportunities without compromising on quality.
- Work with trusted partners to find affordable solutions.
- Optimise tax planning to reduce liabilities.
- Implement tools to track and manage costs effectively.
With the right approach, you can manage costs, support your employees, and keep your mobility program aligned with business goals.
