Successfully solving international employee mobility challenges.
Initial situation.
A leading European construction and infrastructure company with extensive national and international operations planned to deploy employees to the Netherlands for a multi-year project. The goal was to operate a business location for at least three years while efficiently deploying cross-border teams. However, this intricate project presented numerous challenges:
Complex legal frameworks, such as the creation of specific assignment contracts and compliance with labor and collective bargaining laws in the host country.
Tax and social security pitfalls, particularly due to double taxation agreements and different regulations for salary components.
Administrative requirements, such as payroll processing and documenting travel movements.
Ensuring benefits for employees, both in Germany and the Netherlands.
Challenge.
The main challenge was not to view these complex tasks in isolation, but rather as part of a coherent international project. Synergies had to be utilized effectively and optimal results could only be achieved through a holistic orchestration of all subject areas.
Cross-border projects present unique challenges, as they require coordination across multiple countries with their own local characteristics, as well as collaboration among a diverse workforce across different specialisations.
Procedure and solution.
The company chose to collaborate with a specialized consulting firm that offers extensive expertise in international employee mobility. The key added value was the coordination of all services from a single source. Rather than breaking the task into many small, individual solutions, a comprehensive, integrated approach was adopted. The following steps were implemented:
Holistic analysis and strategic planning.
- Comprehensive review of the tax regulations, labour laws and social security frameworks in both countries
- Analysis of the benefit structures in Germany, compared with host country requirements
- Negotiations with collective bargaining partners abroad
Creation of a customised integrated concept
- Development of a standardised secondment agreement, incorporating taxation, social security and collective bargaining requirements
- Harmonisation of benefits to guarantee equal treatment and employee satisfaction
Efficient process management.
- Koordination aller beteiligten Experten, von Steuerberatern bis hin zu Relocation-Spezialisten
- Coordinating all experts involved, from tax consultants to relocation specialists
- Managing multiple payroll providers across different countries
Comprehensive compliance assurance.
- Addressing visa and reporting obligations, especially for non-EU nationals
- Ensuring adherence to local laws and regulations
Results.
By orchestrating all services as a comprehensive project, the following results were achieved:
Maximum efficiency.
The integration of all subject areas ensured seamless implementation and significantly reduced the administrative workload.
Holistic solutions over individual approaches.
By bringing together different areas, synergies were maximized, and potential conflicts arising from isolated solutions were avoided.
Legal and financial security.
Clear contracts and optimised processes safeguarded the company and its employees from risks such as double taxation or social security disadvantages.
Satisfied employees.
Harmonised benefits and transparent communication fostered employee trust and motivation.
Conclusion.
This practical example clearly illustrates the importance of an integrated approach for complex projects. By orchestrating all services from a single source, we were able to not only identify the best individual solutions but also create an ideal overall solution. This approach provides companies with a distinct competitive advantage and demonstrates how international employee mobility can be implemented efficiently, in compliance with legal requirements, and with maximum benefit for all parties involved.
