Is your organization

‘mobile ready’?

What does it mean

and how to get there…
December 2016
 Exec summary/introduction
‘Mobile readiness’ is quickly becoming a business imperative. Multinational
businesses need mobile employees who are ‘ready to go’ – so the right talent
can get to the right place quickly, both domestically and across borders.
This is much easier said than done due to the increasing number of
compliance and operational challenges that come into play.
Global markets continue to demand employee mobility on an
unprecedented scale. But the way employees are ‘moving’ is fundamentally
shifting due to the attractiveness of non-traditional approaches that do not
involve formal relocations. Couple that with an expected global ‘talent gap’
and geopolitical uncertainty occurring around the world and a perfect storm
of factors is requiring companies to revamp their mobility processes in
order to be ‘fit’ for the future of work.
So how does an organization achieve ‘mobile readiness?’ Information,
processes, and resources that cross functional lines of expertise - woven
together by a cohesive strategy – must be in place and working seamlessly
to meet business demands. Each company will need to map out specific
parameters based on their desired state of preparedness, balancing cost
and resources. But there are some common elements that companies
should consider.

A strategic and holistic approach to

achieving ‘mobile readiness’ is essential
while fostering an organization-wide
culture that recognizes the value of
international experiences.

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 Being ‘mobile ready’ typically means that:
 The organization can easily check a continually evolving repository of
available employees to find the person with the required skills and
attributes, and even the right visas and vaccinations already in place.
 Business teams regularly use ‘talent mapping’ and people analytics with
real-time information to better understand their future workforce needs.
 The right non-traditional mobility programs are available by
policy to enable flexibility for the business (e.g., swaps and
commuter arrangements.)
 Tax and immigration compliance challenges and costs that may arise are
known upfront. Corporate functions managing mobility (e.g., Tax, HR,
Mobility) are the ‘first to know’ when decisions are made by the business
to move people. Technology propels efficient processes that in turn
enable time for thoughtful assignment planning that can reduce
tax costs.
 The employment structure for mobile employees (e.g., is a secondment
occurring?) is determined before departure and shared in real-time with
all relevant functions. Supporting domestic and foreign compliance
processes such as payrolls to deduct tax withholding can be
quickly engaged.
 Move costs are not only estimated promptly well before departure, but
can be dramatically reduced by using cloud-based technology tools.

Achieving ‘mobile readiness’ requires not only a

keen focus on process improvement (such as
integrating automation), but also an openness to
re-imagine and create new processes and
information flows.

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Does your organization have A recent PwC survey
…an easily accessible and real-time snapshot indicated that almost 30%
of which employees are ‘mobile ready?’ of international employers
Tracking skills and attributes of the talent pool overall currently have no
A first step towards ‘mobile readiness’ for any process at all in place for
organization is to have access to a continually understanding which of their
updated repository of people who are on a short-list employees are ready for a
for deployment. The repository should track skills mobility assignment. And
sets and technical capabilities, project exposure, as
well as languages spoken. It can also include any
only 9% of international
certifications or professional licenses employees employers currently ask
carry, as well as recent vaccinations needed for their key talent population
travel to certain destinations. on an annual basis whether
Employees may also hold certain visas that could be they are willing to be
renewable – a valuable piece of information that internationally mobile.
may enable a quicker deployment. Renewals of
existing visas can often be a faster process than
acquiring a new one.
Understanding specific employee preferences
Many companies currently
An important criteria for readiness is knowing
track employees by job title,
whether employees are willing and prepared to go
on an international assignment. Employees with certain skills, and
the ‘right’ skill set may not be the best choice for a professional licenses, but
deployment if he/she is not willing or otherwise most will need to engage in a
unable to travel abroad. In addition, it would also new level of tracking likely
be valuable to track specific locations in which the requiring new automated
employee finds personally desirable – matching
processes that will not only
the business’ location needs with the desire of the
employee can yield significant mutual benefits. gather this information, but
will continually gather it to
Tracking these updated employee preferences
can produce significant time savings when the
keep it fresh.
business needs to review available resources. In
addition, it could help eliminate barriers for
employees that may change their mind about an
international assignment depending upon their
situation. As an example, female employees who
may not have wanted to work abroad earlier in
their career may now have an inclination to do so.
Gathering this real-time information can effectively
‘open the door’ for opportunities that may not
necessarily be known if organizations are basing
decisions on outdated information.

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 Does your organization
…engage in ‘talent mapping’ that takes into account anticipated
business needs?
Compiling a database of skills and other attributes, as described above, can
be an incredible resource for choosing a candidate for an imminent cross-
border assignment. But forward looking organizations should also be
analyzing skill and attribute pools proactively in light of management’s
longer term plans for talent with respect to, for example, operational or
product expansion. Skill gaps or other deficiencies should be identified
early on so there is time to fill them.
More specifically, companies will want their leaders to actively use a
workforce planning and mobility approach that can evolve for longer-term
planning purposes as well as used for short term forecasting. This could
mean driving behaviors whereby decision makers must keep an active list of
their own function’s mobile readiness so when an opportunity arises, they
know which employees are interested and can objectively identify the most
suitable candidate.

Talent mapping’ should involve identifying the

realistic pool of skills, as well as applying an
‘eligibility filter’ that takes into account various
cultural and practical factors.

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 Does your organization have
…the right non-traditional mobility programs to enable flexibility
A growing trend is that non-traditional mobility arrangements are quickly
becoming the mainstream approach for many companies. This typically
means that the mobile employee works in a location without a traditional
relocation through, for example, a commuter arrangement or frequent
business travel. Now, ‘swaps’ are becoming popular whereby two people in
different locations simply switch positions (e.g., an employee from China
exchanges with an employee in New York.) Companies are also considering
a ‘fly in and fly out’ approach that involves travel but not on a daily basis.
This latter arrangement is typically used by more risk adverse companies
that recognize that it may not be necessary for the employee to be present
in the jurisdiction 24/7 in order to effectively do their job.
Three to six month rotations for an employee through multiple
business units has become a popular new mobility program,
often taking the place of a traditional relocation assignment.
Proactive mobility teams should create new policies and programs on a
more real-time basis in response to changing business needs in order to be
‘mobile ready’. If not, the processing of an ‘exception’ for the business can
be time-consuming, costly, and cause an unnecessary burden on business
and HR teams.
These policies and programs should be continually reviewed to ensure their
effectiveness, at least every six months or so. And when policies are drafted,
there is a move away from traditional stereotypes (for example, where only
men have a particular preference.) As a result, more gender neutral policies
can facilitate a broader spectrum of candidates in a more efficient manner.

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 Does your organization have
…an efficient process to ascertain the resulting tax
obligations upfront?
‘Mobile readiness’ requires that when an employee is deployed, there is a
understanding upfront of what taxes are owed, how they will be paid (e.g.,
filing a return, withholding?), and what parties bear ultimate responsibility
for the relevant costs. For example, how will the employee be tax-equalized?
To determine resolution of these tax-related issues, a decision must be
made as to which entity will effectively ‘employ’ the individual. Does the
employee need to be seconded to a foreign affiliate in order for proper
foreign taxes to be paid? What entities have the proper tax and other
registrations to remit taxes, etc?
The list of tax issues that arise when determining a mobile employee’s
proper employment structure is lengthy – the above list is just a few. The
bottom line is that proactive organizations should strive to evaluate these
issues as early as possible (e.g., when the decision is made to move people)
in order to be ‘mobile ready’. A critical goal is avoiding any adverse financial
consequences, which can include unexpected tax liabilities as well as
interest and penalties if such taxes are not remitted timely – whether by
withholding or otherwise.

‘Mobile ready’ organizations not only have

global expertise and resources that are ready to
evaluate tax impacts, but this must be coupled
with a grounded knowledge base of the
company’s historic positions and practices for
both individual and corporate level taxes.
New BEPS rules prompt review of tax
determinations

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 Evaluating the employment structure and resulting tax costs upfront is
becoming more critical given new rules promulgated by the Organization
for Economic Co-operation and Development (OECD) under the OECD-led
base erosion and profit shifting (so-called BEPS) project. These rules have
effectively expanded the situations in which a permanent establishment
(PE) may arise that causes a corporate income tax liability, which can
occur when employees cross borders and are physically present in other
jurisdictions depending upon their activities.
As a result, it is a good time for companies to re-evaluate what positions
relating to corporate income taxes they have in place and whether certain
placements of employees abroad now trigger corporate level tax obligations.
For example, certain activities may now trigger a PE concern if they are not
preparatory or auxiliary which did not cause a concern under prior rules.
These changes will depend on the specific treaty and country law, making
the analysis more complex.

Tax authorities are accelerating the

implementation of the BEPS rules relating to
PEs and are also increasing their data sharing
with other countries. Companies should
anticipate greater scrutiny as to whether the
activities and presence of employees crossing
borders are causing tax liabilities for the
employer in that country – if so, this is likely to
also increase individual income and payroll
obligations relating to the cross border
employee(s), usually on a retroactive basis.

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 Does your organization have
…a streamlined process to collaborate and share information
regarding employment structures?
‘Mobile readiness’ typically means that when an employee is deployed,
there is an understanding by all impacted corporate functions and business
teams of how that deployment will be structured so that it can be
implemented quickly. Problems can arise when there is a lack of
collaboration and communication when determining this employment
structure – this is of critical importance particularly between Tax, HR,
Legal, and Mobility functions.
For example, Tax may suggest a need to second the employee to a foreign
affiliate so that proper foreign taxes may be remitted. HR will likely need to
know this information in order to complete immigration paperwork due to
sponsorship requirements. In some instances, there can be conflicts
between advice from Tax and immigration requirements that must be
worked through in order to reach an arrangement that works for all parties
and addresses compliance obligations.
Company leaders must recognize the importance of collaboration
between functions and support new ways to strengthen
relationships and processes. This can be an opportunity to
elevate the Mobility or HR team as a conductor, adding value by
coordinating cross functional issues.
Using automation to shorten process times and share data

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 The process to determine employment structures for mobile employees
should be streamlined with technology to enable quick departures. This
plan should not only be in place upon departure, but it likely needs to be
in writing and accessible by all relevant functions (e.g., HR, Tax, Mobility,
Legal, business teams.) Using e-mail for separate functions to store this
information in a silo is likely not an efficient process – rather, companies
should consider an integrated database that can facilitate sharing.
A more sophisticated technology solution may be considered to implement
a specific workflow. For example, the business team could be mandated by
policy to input detail about its plans to deploy employees cross border, the
Tax function could then enter a suggested employment structure and
resulting tax consequences, and then the HR or Mobility functions could be
electronically notified that this information has been added. All of the data
can be shared by relevant team members and searchable, making the data
accessible in real-time.
Technology-enabled tools that minimize duplicative, manual
processes and data gathering can reduce costs, as well as free
up time for more value-added activities. For example, more
time may be spent refining the end-to-end timing of the mobility
assignment prior to departure in order to lower foreign tax costs.
A central database of mobility-related activities can also be
helpful for risk management purposes. It can provide a roadmap
to confirm whether post-departure/return immigration and tax
advice has been properly carried out, and could also serve as a
source of data for tax audits.

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Does your organization

…have the payroll and other processes ready to support mobility demands?
The company may determine that certain employment structures will enable proper compliance
with tax and immigration laws. But processes such as payroll must be in place to implement
efficiently on day ‘one’ of work abroad. Supporting processes for non-traditional work
arrangements are typically the most difficult and time-consuming to set up. For example,
companies using frequent business travel to meet mobile talent needs often have difficulty
tracking such travel and identifying compliance obligations that arise.
Technology-embedded solutions can provide a wealth of support for frequent business travelers
to track and capture data in real-time for tax and immigration compliance purposes. But being
‘mobile ready’ also means giving valuable support to the employee. For example, employees can
be automatically sent pre-travel notifications relating to security, sanctioned travel, and non-
treaty countries, highlighting potential concerns before travel is completed.

Tax, HR, and Mobility teams may all agree to second a

frequent business traveler to a foreign affiliate, but is
there a payroll process already in place to ensure that
taxes are remitted timely? If, for example, the corporation
has many frequent business travelers to a particular
location and wants to take advantage of a cooperative
compliance arrangement that may eliminate certain tax
filings, are their payroll systems robust enough to satisfy
scrutiny from the tax authorities? A ‘mobile ready’
organization can often say ‘yes’ to these questions.

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Does your organization have
Mobility processes should be
…an updated strategy to facilitate designed to have ‘ranges of
immigration as quickly as possible?
flexibility’ to meet current
Organizations are demanding the rapid deployment and future business
of talent, even as immigration requirements are
requirements while
tightening around the world creating more
challenges. Mobile readiness demands that mobility integrating closely with
professionals be ready to provide immigration other functions such as
details to business teams in a quick timeframe to Legal to ensure compliance.
meet the business needs. This may mean having
real-time immigration information and
requirements within a database or other source
readily available. This would include not only
country requirements but also knowing the pools Ensuring immigration
of people within the organization that hold visas. compliance processes are
Typically, the more time-consuming aspect is ‘mobile ready’ can be a
implementation – i.e., once a decision is made for challenging endeavor
a specific employee to cross borders, the time period considering the geopolitical
needed to get the immigration paperwork properly
prepared and approved. Processes should be uncertainty that is producing
evaluated, streamlined, and technology-enabled constantly changing
to reduce this timeframe as short as possible. requirements. A holistic
A critical question is whether Mobility, HR, and approach is key, such as
Tax teams are the ‘first to know’ when business implementing a centralized
teams make decisions about moving people. immigration team with
Are these intra-company communications timely specialized knowledge,
and efficient? Is the information shared and made coupled with robust data
available for various corporate functions to view?
Can the communication process be automated? Is
management.
there a corporate policy that directs the process?
How well is the process known by business
team members?
Once this communication occurs, HR/Mobility
needs to have immediate access to up-to-date
information necessary for immigration paperwork.
Processes should be in place to obtain needed
information quickly from both the business and the
mobile employee. Additional procedures to have
proactive discussions with authorities for seeking
special rulings or concessions are also important,
where existing immigration protocols may not be a
good fit.

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Does your organization
…deliver accurate cost estimates and move plans in a business
friendly timeframe?
Timely deployment is critical, but business teams must also balance cost with their need to get
the right talent in place. A ‘mobile ready’ organization must have a process in place to create
cost estimates in a business friendly timeframe that are accurate and keep costs in check. The
process should embody automation, while building on historic business-specific knowledge.
Processes should also enable mobility teams to analyze the ‘big picture’ on a periodic basis with
the ability to effortlessly pull reports and data to spot trends and opportunities for savings.
Cloud-based technology systems such as MOVE Guides are the newest trend - they
can provide move cost information and vendor relationships in real-time while
also integrating with existing HR and payroll systems. This technology can cut
traditional relocation management company fees in half, as well as better prepare
employees to start work.
Cost estimate processes also need to embody a clear approach where the business team or
individual is requesting an ‘exception’ from company policy. These situations have a tendency to
significantly slow down process times. The better approach is to consider upfront the exceptions
that may occur and proactively map out a policy or process to address them quickly so that
normal cycle times are not impacted. The right use of technology can support this approach and
can result in fewer touch points across the organization, cost containment, and increased
visibility and analytics for stakeholders and mobility managers.

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 The bottom line

The desired level of ‘mobile readiness’ will vary depending upon the
specific organization’s needs and structure. Each company will have
their own talent and timing requirements that are required to satisfy the
business. Getting there requires an on-going examination of these needs,
periodic dialogue with business leaders, coupled with an honest assessment
of the current state of mobility readiness and an identification of any gaps
in between.
In some situations, the business may have historically accepted the status
quo and simply assumed that there is no quicker way to deploy talent.
Focusing on ‘mobile readiness’ can be an opportunity for HR, Mobility,
and Tax teams to enhance their capabilities and efficiency, as well as
demonstrate to management and other functions how they strive to
continually add strategic value to the bottom line.
Creating a roadmap for change
Becoming ‘mobile ready’ may require creating a roadmap for
improvements, new information flows and processes – this may be a multi-
year plan with various sub-projects. Below are some ideas for how to
get started:
 Use benchmarking as a guide – this can help companies gauge their
position among their peers
 Assess the current state of readiness as a joint effort with other impacted
functions including Tax and Legal
 Consider a formal survey of the business to identify areas that would
have the most impact
 Evaluate new technologies and how they could positively impact
mobility readiness
 Start with the weakest processes first
 Focus on objectives measures of success to justify investment dollars,
e.g., cycle or task time measurement.

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Integrating the ‘intangibles’
Evaluating processes and the integration of technology is a critical step for mobile readiness.
But companies should also consider the ‘intangible’ aspects of a mobility strategy to be truly
successful. What is the mobility culture in the organization? How do executives and employees
feel about mobility?
Mobility programs striving to improve their perception as ‘empathetic’ and ‘transparent’ will
likely improve their readiness because employees will become more motivated to participate.
For example, mobility programs will likely feel more transparent if executives articulate upfront
the key mobility experiences needed to advance. Mobility policies can also be structured to be
more supportive towards women, single parents, etc. They can embody more ‘employee choice’
options so participants feel that the company is trying to accommodate them.

Evaluating ‘mobile readiness’ is a not a one-time task – rather, it is a

periodic endeavor that not only prompts process improvements to an
organization’s preparedness to deploy talent, but also aims to increase
favorable perceptions about mobility experiences across the organization.

Organizations should disrupt their mobility processes now to enhance

their readiness, before getting disrupted later.
Let’s talk
For a deeper discussion on mobile readiness or any issue from this thought leadership, please
contact your regular PwC Mobility Services engagement team or one of the following
contributors:
Peter Clarke, Al Giardina
Global Mobility Leader Global Mobility Partner
+1 (203) 539-3826 +1 (203) 539-4051
[email protected] [email protected]

Eileen Mullaney Derek Nash

Global Mobility Consulting Leader Global Mobility Managing Director
+1 973 236 4212 +1 (202) 414-1702
[email protected] [email protected]

Julia Onslow-Cole Lindsey Barras

Global Head of Immigration Immigration Director
+44 (0) 20 7804 7252 +44 (0) 20 7212 1362
[email protected] [email protected]

Clarissa Cole
Global Mobility Director
+1 (213) 217-3164
[email protected]

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