As more companies embrace global mobility as a critical tool for developing top talent and pursuing new opportunities, our Consulting desk has seen increased requests for the best models and practices to streamline the complex management of global moves.
In response, we developed a diagnostic survey tool to help companies identify areas for program optimization, and invited corporate mobility managers to use this tool to determine where to improve their programs.
Not surprising, the one area that received the most focus is tax and payroll compliance—an admittedly slippery slope for most companies. The cumulative results of our survey, which are presented here, give greater insight into how much of an issue compliance risk is to today’s companies.
At the end of the survey, participants were asked to assign an overall grade to their programs. Sixty-eight percent indicated that their programs “need improvement.”
Of these companies, 34 percent have considerable risk for audit and compliance issues, including lack of insight into key spending patterns and moderate to excessive “out of scope” fees because global mobility isn’t managed effectively. These compliance risks could prevent them from pursuing their growth strategies, especially if those strategies involve expansion into new markets.
The resounding message from this brief study is that many companies walk a tightrope when it comes to tax and payroll compliance issues. While many companies have the desire and mandate to track and avoid compliance risks, many lack the guiding framework or internal expertise to do so. Or they rely on a third-party tax firm that can expose them to harsh out of scope fees. Considering the risks and potential damages an organization could suffer, these issues demand serious attention from any companies with global aspirations.
If you’d like to use our diagnostic tool to identify areas of optimization in your company’s program, please email us.