Relocation Blog

The High Cost of Low Cost in Global Mobility!

Posted by staff alexander on May 17, 2016 12:17:00 PM

Many global companies are feeling the crunch right now and understandably want to lower costs in many areas of operations, including their Global Mobility Programs. While cost cutting is understandable, there are some areas of the program where it is highly advisable not to try to save money, if major headaches want to be avoided. Let’s look at some of those areas where investment is needed and where cost savings cannot be applied:cost

  1. Major compliance issues leading to work permit bans – If there is one area where you cannot skimp, it is in the area of compliance. The do-it-yourself approach to immigration is a road fraught with problems and potential legal issues. In certain countries, not being compliant can lead to heavy fines, work permit bans, and is some cases, possible jail time.
  2. Housing deposits not being returned – Many times, due to the fact that the arrival / check in were not managed correctly, there can be huge challenges in getting the housing deposit back, as very often, no one can prove the state of the property at the time of the check in. In this case, we enter the “tenant says / landlord says” scenario – which means that the departure can drag on forever costing a fortune in terms of time and energy.
  3. Assignees being legally responsible for things they negotiated on their own – another recipe for disaster is when assignees look for properties on their own, especially in countries where they don’t speak the local language. Case in point: in Sweden, landlords want corporate leases and will always opt for that over a personal lease. Therefore, if this is not explained upfront to the landlord, very often the assignee risks losing a property they have fallen in love with when the owner discovers it’s a personal contract!
  4. Assignments ending early due to the assignee and / or family being unhappy – mobility programs that are too slim and don’t address correctly the settling-in issues of the spouse/partner/family, very often end up causing irritation and stress due to the fact that the individuals don’t feel supported. What can be seen as a cost-effective program can have very expensive negative consequences, such as valuable company talent resigning due to feeling unsupported during their assignment.

At the end of the day, we are dealing with human beings – therefore, it is hard to plan how things will turn out exactly. For this reason, it is vital to control the aspects of the Global Mobility Program that we can through working with professionals and by investing and spending wisely.

For more information on our services or for a  consultation without commitment, please contact us today

Topics: Relocation to Sweden, HR, Moving to Sweden