The versatility and value of short-term assignments

ECA’s recently published Short-term Assignments Survey found that almost three quarters of companies expect their numbers of short-term assignees (STAs) to increase in the next three years, a more significant rise than predicted for long-term assignees, international commuters or permanent transfers.

The popularity of STAs may be due to their versatility. Consider these facts regarding STAs:

• Offer excellent career developmental opportunities for high-potential employees and are a great way to maintain or elevate employee engagement.
• Many rotational assignment programs are a set of short-term assignments connected by an overarching goal or mission.
• Many employees find them more appealing and are more likely to accept them because they need not uproot their family, especially as it relates to their spouse’s work and children's schooling.
• STAs can often be deployed more quickly for project work, transferring knowledge and covering talent gaps.
• When structured properly, STAs can save money and be less expensive than long-term assignments (LTAs) or permanent transfers.

Key word in the last point was can. Short-term international assignments, as compared to an expatriate assignment, do not always result in a lower tax and assignment cost to the company. There are situations whereby extending the assignment length to just over one year, the company may actually reduce the overall cost. Each case would need to be considered on its own as residency, home/host locations, duration and specific benefit inclusions will have an impact on the ultimate overall cost, inclusive of taxes.

Per AIRINC's 2019 Mobility Outlook Survey, 90% of companies have a short-term assignment policy in place making it the most popular mobility policy out there.  

For interesting tips on maximizing your STA program, check out: Supercharge your STAs: 5 tips for maximizing short-term global assignments.