How are Global Mobility Trends Impacting Expats Working Overseas?

In today’s interconnected world, global mobility trends are reshaping the landscape for expatriates working overseas. Factors such as the rise of remote work, evolving relocation packages, and the emergence of digital nomad visas are significantly influencing how professionals engage with international assignments. Understanding these trends is crucial for both employers and employees to navigate the complexities of modern global employment.

The COVID-19 pandemic accelerated the adoption of remote work, leading to a paradigm shift in traditional workplace models. Many organisations have embraced flexible work arrangements, allowing employees to perform their duties from virtually anywhere. This shift has enabled expatriates to maintain their roles without the necessity of physical relocation, offering greater flexibility and work-life balance. For instance, companies like Airbnb and Spotify have implemented policies encouraging employees to work overseas for extended periods, resulting in increased job interest and reduced staff attrition.

As the nature of international assignments evolves, so too do the relocation packages offered by employers. Traditional long-term relocations, often involving comprehensive support for expatriates and their families, are becoming less common. Instead, there is a growing emphasis on short-term assignments and extended business trips, which are more cost-effective and flexible. According to KPMG International’s Global Assignment Policies and Practices survey, 75% of companies expect to rely on short-term placements, while 56% anticipate using extended business trips to deploy staff to overseas locations. Conversely, 51% of businesses expect to reduce the use of traditional long-term assignments.

The concept of the digital nomad has gained traction, with professionals seeking the freedom to work remotely from different parts of the world. In response, numerous countries have introduced digital nomad visas to attract this new breed of worker. As of recent data, 66 countries offer digital nomad or remote work visas, a significant increase from less than a year ago. This trend reflects the global shift towards remote work and the desire of countries to attract foreign talent to boost their economies.

Short-term overseas assignments are becoming more commonplace than long-term or permanent relocations. These assignments, typically lasting less than a year, allow employees to undertake international projects without requiring their families to relocate. This approach minimises disruption to personal lives while fulfilling business needs. The EY 2023 Mobility Reimagined Survey found that 90% of employees would accept a short-term assignment without relocating their families to fill a business need.

Many companies are moving away from long-term international assignments in favour of short-term moves to reduce costs and better address changing business and talent needs.

A recent study on international assignments practices revealed that companies reported a predicted increase of 59% for short-term assignments between 2023 and 2024.

Despite the benefits, these trends present challenges. Short-term assignments and remote work can complicate tax compliance, immigration requirements, and social security contributions. Employers must navigate complex legal and regulatory frameworks to ensure compliance and support employee well-being. Additionally, while digital nomad visas offer opportunities, they also require individuals to manage logistics such as housing, healthcare, and local integration.

Global mobility trends are significantly impacting expatriates working overseas. The rise of remote work, evolving relocation packages, and the emergence of digital nomad visas are reshaping how professionals and organisations approach international assignments. As short-term assignments become more prevalent, both employers and employees must adapt to the changing landscape, balancing flexibility with compliance to harness the benefits of global mobility.