Cost management and tax compliance top priority list for mobility managers

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A survey of over one thousand companies' multinational mobility programmes identified cost management and tax compliance as the key priorities for HR and Mobility professionals.

The Global Mobility Survey, which contains comment from some of the Mobility industry's leading experts, identified that compliance represents a significant risk for organisations. The threat of significant fines and even imprisonment in some countries is a good deterrent against non-compliance. It is therefore unsurprising that it is clearly a core priority for mobility professionals. Mobility teams are responsible for ensuring compliance with an abundance of international and domestic laws, as well as their own internal policies. This section examines where each aspect of compliance sits on their list of priorities, how well mobility professionals feel compliance is managed within their organisation, and who has overall responsibility for it.

Who is responsible for Managing Compliance?

Within the majority of organisations' management of compliance is the responsibility of the HR Department (53 percent) or a dedicated mobility team (27 percent). As you would expect, compliance with external legislation tops their list of priorities.

While compliance with external legislation tops the list, the majority report all aspects of internal compliance as being either a medium or a high priority.

Compliance with external and internal legislation and policy is clearly a priority. Organisations do however perceive themselves to manage both aspects of compliance effectively.

Compliance is perceived to be well-managed by the majority

Ninety-three percent of organisations report that they manage compliance quite or very well. Compliance with external legislation is, as should be expected, the more fundamental aspect of compliance. However, all aspects of compliance are considered by the majority to be a medium or high priority.

Top three areas of compliance

Whilst the emphasis typically varied depending on where the programme was being managed from (you can compare these by country at ), overall the three top compliance priorities are:

  • 73 percent Compliance with tax regulations
  • 69 percent Compliance with immigration law
  • 67 percent Compliance with employment law

Cost management remains a clear priority

Fifty-three  percent of organisations reported it to be a high priority (compared to 53 percent  in 2011) and 70 percent of organisations expect to be more focussed on reducing mobility costs in the coming 12 months.

However in order to effectively manage costs organisations need to be able to accurately measure costs. Only 18 percent of organisation reported that they highly accurately measure mobility costs and only 22 percent have a specific cost reduction target.

Interestingly cost management is considered a high priority by fewer organisations in Asia, especially within China.

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About the Global Mobility Survey

The Global Mobility Survey is a large scale review of multinational mobility programmes available. The results are collected from 1,119 company respondents from across North America, Latin America, Europe, Middle East, Asia and the Pacific region and span the complete range of industry sectors.

The Global Mobility Survey is conducted by Circle Research and commissioned by Santa Fe Group.

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