Short-term assignments...what's the risk?

With 122 pages, KPMG's 2019 GAPP Survey Report is bound to have many talent mobility program insights. It is a must read for companies and suppliers within the global mobility industry. Over 75% of the participants from 275 companies were in mobility management positions within their organization. 75% of those companies have been running international assignment programs for more than five years. Many people utilize this data in benchmarking many aspects of their assignment programs.

There is information in this leading survey on:

1. Automation and robotics
2. Data and analytics
3. Talent management
4. Policy
5. Flexibility in approach
6. Future mobility

The survey reveals that over the next five years, more companies expect the biggest increases in short-term assignments (STAs) and extended international business trips (EBTs). This has been an ongoing trend over the past few years, so that should not really come to a shock for most in the industry. 

Many companies consider assignments between three and twelve months to be short-term, but some have alternative definitions, like one to six months in length.

Why are STAs so popular?

• When structured properly, STAs can save money and be less expensive than long-term assignments (LTAs) or permanent transfers
• 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

KPMG does warn though that there are risks that come with these types of mobile employee groups. Find out why in this Relocate Magazine article. Of course, tax and immigration are the biggest concerns, but permanent establishment, reputational risks and duty of care are also major concerns. 

Interested in more on STAs? Try these:

The versatility and value of short-term assignments

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