Global mobility solutions provider ITX has put forth its mobility model, Global Employment Company (GEC), offering that seeks to improve organizations' management of expatriate employees versus other traditional mobility models.
For decades, many companies have traditionally used a shared services and centers of expertise (COE) model to manage the policies and administration of international assignments. While this model addresses the major potential issues associated with expatriate employees, it has several limitations. Assignees are employed by a “home country” and deployed to a “host country” using the applicable mobility policy. An organization operating in 10 countries has 90 possible “home” and “host” country permutations. This results in having to deal with many different employment/tax laws and other conditions per location, which can cause complexities to escalate quickly.
According to Mr. Christophe Malavallon, CEO of ITX, having a shared services model takes away a lot of administration, but it does not take away the complexity of multiple home and host countries. The decentralized model creates further “process fragmentation”, requiring additional communication, coordination, and technology to overcome. However, using a GEC model will greatly simplify this process, by providing a single entity that employs all expat staff, essentially giving them a single “home” country and harmonizing compensation and benefits.
ITX's turnkey GEC offering includes consulting and management services, assisting organizations in formulating, building, and running their GECs.
Mr. Malavallon says that a GEC is a wholly-owned subsidiary of a group or, alternatively, a branch of one of its subsidiaries, which becomes the legal employer of mobile employees prior to their deployment. He also points out that a GEC is not a third-party provider and it is not owned by ITX, which means that employees remain employed by the same organization, albeit a different legal entity.
“There are many advantages coming from the centralization brought by using GECs, with regard to risk management, compliance, and governance. Having all international assignments managed by the same team means they are going to be handled consistently. This team will have a holistic view of the cost of the mobility program, down to how much each individual assignment costs.”
Mr. Malavallon says that Switzerland, where ITX is headquartered, is a popular location for GECs, due to favorable regulations, as well as bilateral agreements with many countries that favor both employer and employees. By consolidating the expatriate headcount within a single entity, the GEC creates economies of scale, allowing the implementation of affordable benefit plans, such as international retirement plans or global medical insurance.
“Over the past 22 years, ITX has handled around 30,000 expat employees in their international assignments. Adding in family members and turnover, that number goes above 100,000. We believe that the GEC model can deliver outstanding benefits to most organizations that hire and deploy employees across borders, exceeding the capabilities of other traditional mobility models. However, it is critically important to perform a detailed feasibility study in order to define the company-specific objectives, anticipate the potential benefits of such an initiative, and build a solid business case for internal discussion.”
About ITX:
ITX is a global mobility consultancy that specializes in the design and implementation of solutions for the management of expatriates and cross-border remote employees, delivering compliance, efficiencies, cost savings and enhanced customer experience for their clients. It was founded in 2000 by seasoned HR and finance executives, drawing on their deep experience in global mobility from working with large corporations. Some of the world’s leading organizations have chosen ITX as a trusted partner to support their mobility programs and to operate their Global Employment Companies (GEC).
Media Contact:
Name: Mario Ferraro
Email: enquiries@itx-ge.com
Published by: Omar Hamdi