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Short-Term Work Assignments: Maximizing Benefits, Mitigating Risks

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This article was updated on September 3, 2018.

Short-term work assignments — typically less than a year — offer a wide array of benefits for both businesses and employees. It's no wonder such assignments have been increasing. According to Mercer , "Companies are using a more varied range of assignments in order to respond to evolving business needs and changing patterns in the global workforce." These short-term work assignments allow businesses to mobilize skills and grow their organization while developing employees at the same time.

Here, we'll examine some of the benefits and risks.

• The organization fills a skills gap by relocating an employee where their capabilities are needed. Also, the employee can train others and help close the skills gap.
• The organization increases productivity and avoids adding to its headcount by not having to hire from the outside.
• The reassigned employee gains invaluable experience. They expand their network and learn how the business operates in a different place. Even more, the challenges of adapting to a new location will draw out leadership qualities. In fact, many businesses explicitly use short-term assignments as a development tool for employees with high leadership potential.
• The employee's morale increases after being recognized for their expertise.
• The organization attracts candidates who are adventurous and eager for a challenge.
• The employee has to adapt to a new city, state or country. They also have to adapt to a new team and space, which will take patience and emotional intelligence. It's here HR can help by supporting integration.
• The employee may be left with unclear goals. This can be avoided by laying out organizational and individual goals in advance. HR and the employee can discuss how to track these along the way.
• The organization must deal with any compliance complexities that come up. However, HR simply needs to integrate the employee into its labor-related compliance system. While reassignments will likely increase compliance risks, having the right systems in place to accommodate reassigned employees will best manage and mitigate those risks.

Clear communication between HR and reassigned employees will be a critical success factor. HR systems must be in place that support the needs of short-term assignments, in terms of tracking employee performance, facilitating a smooth transition and ensuring compliance needs are met no matter where the assignment occurs.

Having a powerful technology platform in place to accommodate employee reassignments, such as time and labor management (TLM) systems as well as other vital HCM systems, will serve as a firm foundation upon which you can build success for any reassignment.

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Short-Term Assignments: Key Considerations and Essential Information

By Tracy Langlois, CRP, GMS

Short-term work assignments have been steadily increasing over the years and certain factors like the pandemic have shined a light on vulnerabilities within numerous industries. For instance, the demand for travel nurses has never been higher, as certain staffing agencies need to fill voids and provide additional support at hospitals all over the US. Other companies are asking employees to train new hires at different locations or attend workshop programs and conferences out of state. Those working in media may need to spend days, weeks, or months in different locations covering news stories. HR representatives are focusing on talent mobility, which may require employees to take on short-term work assignments for specialized training and upward growth within a company.

No matter the industry or reason, employers are recognizing the value of short-term assignments, as well as the logistical steps required to smoothly transition their employees from point A to B. With that in mind, CapRelo put together an overview of short-term assignments, so your company knows what is needed to assist your employee during the hectic transition of a short-term assignment.

What is a Short-Term Assignment?

A temporary assignment is defined as a work stint lasting for one year or less. A short-term assignment can be a series of shorter rotational assignments or an assignment that requires an employee to stay in one place for the entire duration. Similar to temporary duty assignments in the military, short-term assignments are not permanent and are meant to carry out a specific purpose. Companies may send one employee or a whole team out on temporary assignments, depending on the industry and work goal.

What is the Purpose of a Short-Term Assignment?

There are plenty of different reasons why companies would send their staff out on short-term assignments. For instance, an employee may need to assist a branch that’s struggling to perform and help them to increase their sales numbers. It’s also not uncommon for staff to oversee different departments during a company merger, requiring temporary assignments to ensure company policies are being carried out consistently across the board. Perhaps limited resources have prevented staff at different locations from being properly cross-trained, necessitating the need for temporary work trips.

Whether three weeks or three months long, short-term assignments typically require companies to cover lodging, food, transportation, and other travel-related expenses with stipends.

Benefits and Challenges of Short-Term Assignments

While short-term assignments sound like a breeze, they can pose some serious challenges for both the employee and the company itself. International short-term assignments can pose tax and immigration issues if companies don’t comply with the laws and regulations in each country. Secondly, some countries have turbulent landscapes, which could potentially put staff at risk. Employees may also get stranded in the assignment country due to canceled flights or COVID-related concerns, further implicating the company when temporary assignments do not go according to plan.

On the flip side, a company can create a robust talent mobility strategy with initiatives that reward current and new hires willing to take on short-term assignments. For instance, paying employees during travel time can lead to higher retention rates. Companies can also train staff across locations to improve their skills, eliminating any consistency errors. A change of scenery might help employees to improve productivity as well, especially in locations that offer plenty of sunshine and warm weather for post-work relaxation.

How Can Companies Assist Employees?

Companies should have well-defined relocation policies in place before sending employees out on temporary assignments. The policy should include details on the relocation services and benefits which will be provided to employees and who will be assisting them with these services. It is important to note for international cases that proper immigration documentation is required before the start of the assignment. Letters of assignment (LOA)s should also be created for employee and company signature and should include specifics on the location and duration of the assignment and specific benefits. Companies should have a dedicated budget in place to assist with short-term assignment relocation expenditures; a comprehensive cost estimate including tax costs can be prepared in advance to ensure appropriate approvals can be obtained. A survey of HR professionals conducted in partnership with CapRelo found that 33% of participants stated their relocation policies have been updated to accommodate employees’ mental health and well-being, which is another factor that should be taken into consideration to help employees cope better with their new surroundings.

Do You Need a Relocation Program?

So, you’re ready to send your employees out on short-term assignments, but don’t know where to start? Whether you need help transferring one employee intra-country , or flying a whole team across the globe for specialized training, we can help.

At CapRelo , we provide relocation solutions for companies that need them, covering a host of services including cost estimate preparation, corporate housing, auto shipment, property management, travel services, immigration coordination, and much more.

Our team specializes in seamless transfer operations and sorts out all of the logistical steps before your employee’s short-term assignment so you can have peace of mind knowing that they are in the best of hands. Allow us to take one more thing off your plate and contact our highly qualified team at CapRelo today to get started.

Short-Term Assignment FAQs

• Are Short-Term Assignments International? Short-term assignments can be either domestic (within a country) or international (across country borders). Certain companies like Amazon, FedEx, and Apple are known for leading the way with the most corporate travel, requiring employees to rack up airline miles to fulfill their job duties.
• How Does the IRS Define Short-Term Assignments? The IRS defines short-term assignments as work in one location that can be reasonably completed in one year or less (and is). Employees typically file taxes with their home state. If a work assignment lasts for longer than a year then it is considered an indefinite assignment, prompting an employee’s tax home to change.
• What is Relocation Tax Assistance? Before 2018, any moving-related payments or reimbursements to employees were not included in their annual reportable wages. These expenses did not require withholding taxes and would have been paid by the employee and later deducted. The Tax Cuts and Job Act of 2017 changed the way payroll handled relocation expenses. Nowadays, employers can offer relocation tax assistance or tax gross-ups. A tax gross-up simply means that a company provides a larger payment sum to the employee to compensate for the taxes that will be withheld from their payment if that employee is relocating somewhere new.
• Do Family Members Join Employees on Short-Term Assignments? When it comes to temporary assignments, most companies do not assist families to join the employee in the new location if the assignment is expected to have a duration of six months or less. Assignments greater than six months may include company support for family accompaniment. Some companies will offer to pay for visits home after a certain amount of time has passed for employees who are not accompanied. This could be anywhere from 8 to 12 weeks after the start of the assignment but depends on the company’s unique policies.
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Caprelo insider: october 2024, employee relocation delays due to rising global container shipping, caprelo insider: september 2024, caprelo insider: august 2024.

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Study guides for every class, that actually explain what's on your next test, short-term assignments vs long-term assignments, from class:.

Short-term assignments are temporary work placements that typically last from a few months to a year, while long-term assignments are extended placements that can last several years. These assignments play a crucial role in expatriate management as they address different business needs, such as immediate project requirements versus strategic development of global talent.

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5 Must Know Facts For Your Next Test

• Short-term assignments usually involve less complex roles, focusing on immediate needs such as project management, while long-term assignments often require in-depth cultural knowledge and relationship building.
• Companies may prefer short-term assignments for cost-effectiveness and flexibility, as they often incur lower expenses related to relocation and family adjustments.
• Long-term assignments can enhance career development opportunities for expatriates by providing them with valuable international experience and exposure to different markets.
• The success of both assignment types relies heavily on effective pre-departure training and ongoing support to help expatriates navigate cultural differences.
• Employee retention can be influenced by the assignment type; longer assignments may lead to stronger ties with the host country, but shorter ones may offer faster returns without the need for significant lifestyle changes.

Review Questions

• Short-term assignments benefit multinational companies by providing quick solutions for immediate project needs, allowing for greater flexibility and reduced relocation costs. On the other hand, long-term assignments contribute to strategic goals by developing global leaders with deep understanding of local markets. While short-term placements often focus on specific tasks, long-term placements foster relationships and cultural understanding that can lead to sustained business success in foreign markets.
• Cultural adaptation plays a significant role in the effectiveness of expatriates, particularly on long-term assignments where deep integration into the local culture is essential for relationship building. Short-term assignees may not have enough time to fully adapt, potentially leading to miscommunication and ineffective collaboration. Conversely, those on long-term assignments are likely to invest more time in understanding local customs and practices, enhancing their ability to navigate challenges and perform effectively within the host organization.
• Repatriation presents unique challenges depending on whether employees are returning from short-term or long-term assignments. Those coming back from short-term roles may face less intense reintegration issues as their absence was relatively brief; however, they might struggle with feeling disconnected from organizational changes. In contrast, employees returning from long-term assignments often experience significant shifts in their roles and relationships, requiring careful management of their reintegration process to retain their engagement and capitalize on their international experience within the organization.

Related terms

Expatriate : An expatriate is an employee who is sent to live and work in a foreign country for a specific period, often to fulfill organizational goals or assignments.

Cultural adaptation : Cultural adaptation refers to the process by which expatriates adjust to a new cultural environment, which can significantly affect their performance and well-being during assignments.

Repatriation : Repatriation is the process of returning expatriates back to their home country after their assignment ends, which involves addressing the challenges of reintegration into the home organization.

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July 18, 2022

Short-term Assignments Can Give High-Potential Employees a Reason to Stay

Counter the “Great Resignation” by offering short-term assignments to your high-potential employees and build engagement

Short-term assignments, whether in the same country or abroad, have been a major trend in relocation over the last few years and we believe this trend will continue in the years to come. Short-term assignments, which are typically less than 12 months, can be a way to attract and retain talent by offering interesting challenges as the employee gains new skills, experiences, and builds a network of colleagues.

While there are clear benefits to utilizing this policy type – especially instead of a long-term assignment that can be quite costly – corporations must maintain compliance with respect to payroll, taxation, and immigration if the assignment is overseas.

In the U.S., a short-term assignment must have a clear start and end date and must be less than 12 months to claim some expenses tax-free for the employer, and in many cases, international short-term assignments can avoid host country taxes if there is a totalization agreement between the home and host country and the employee spends less than 183 days there.

Whether it’s for finite projects, developmental job positions, new business or branch openings, there are many reasons and benefits for sending an employee on a short-term assignment. Instead of tradeoffs, we often see synergy across different priorities, such as when productivity is maintained, headcount is not increased, and high-potential employees are given an opportunity to build leadership qualities.

Benefits of Short-Term Assignments

A short-term assignment costs less than permanently relocating an employee Short-term assignments can be more cost-effective than a long-term assignment (typically 1 to 3 years) or permanently relocating the employee. In fact, it allows company initiatives to proceed without the costs of selling a house and asking members of an assignee’s family to relocate with them.

A short-term move is less stressful on employees than a permanent move Unlike long-term assignments or permanent relocation, employees do not typically move with their families during a short-term assignment. Whereas this eliminates some added challenges that could arise from searching for adequate housing, enrolling children in a new school, or a spouse looking for employment, we recognize that living apart from family can be stressful and therefore recommend regular home leave to ensure a successful assignment.

Short-term assignments are great opportunities for employees to grow Short-term assignments can give your staff opportunities to learn additional skills and gain new perspectives, helping to create a more diverse and inclusive organization. Knowledge sharing upon their return to the origin location is a bonus to going on short-term assignment, benefiting the employee, colleagues, and the company.

Most short-term assignments range between 3 and 12 months; assignments that are shorter tend to be considered Extended Business Travel with some different considerations to keep in mind. There are employers that allow accompanying family members on an assignment that is less than 1 year; other organizations consider any assignment under 2 years as short-term.

Setting up your Employee for a Successful Short-Term Assignment

While the needs of employees will vary, it’s important for companies to have a standard program that allows some flexibility. Setting clear expectations and communicating those to the employee helps achieve success.

Here’s our key advice for employers to consider when creating a short-term assignment policy.

Help employees find short-term housing Short-term rental agreements with corporate housing specialty companies are often the best option because they are fully furnished and typically offer a variety of amenities to help renters feel at home.

Some of these organizations own properties while others source properties and fill with furniture, and if your organization frequently sends people to the same location, they can set up rotational agreements whereby the accommodations are maintained for your organization and employees can rotate in and out as necessary. This can eliminate the hassle of searching for new housing each time an employee is relocated for a short time. Alternative housing options can include extended-stay hotels or vacation-type rentals such as Airbnb.

Cover all host-location expenses A short-term assignee retains their home property while on assignment, therefore, the employer assumes responsibility for most expenses, including but not limited to housing, utilities, parking fees, as well as travel expenses in the host location and for home leave visits.

In addition, most employers will provide an allowance to offset the cost of meals and incidentals, sometimes in the form of a cost of living adjustment (COLA) or per diem.* This decision is typically based on the expected duration of the assignment.

Provide benefits that will help employees adjust Family separation during a short-term assignment is one of the most common challenges for employees, making the power of continued connection critical. Therefore, taking home leave on a regularly scheduled basis throughout the duration of the assignment promotes closeness, and many companies allow family members to visit the host location in lieu of the employee travelling home. We also suggest offering self-directed online cross-cultural training if the assignment is overseas.

Offer resources to help employees acclimate Whether the assignment is in-country or abroad, Sterling Lexicon recommends providing at least a ½ day orientation tour to ensure your valued employee feels comfortable in the host location.

Employees will appreciate knowing how to navigate in the host location, knowing the location of medical facilities, and knowing how to go about their daily life in a different environment helps people adapt more quickly.

Choose the right relocation management company (RMC) for your relocation and assignment needs Whether relocating permanently or going on a short-term assignment, the right counseling can help mitigate worry while providing an exceptional employee experience. The right RMC can help develop equitable policies and should have an extensive supplier network to identify appropriate corporate housing within budgetary requirements, Destination Services Providers to manage an orientation to the host location, and online tools to support their stay. Additionally, an RMC like Sterling Lexicon can manage the entire expense process from start to assignment completion.

*There are distinct differences between a per diem and COLA, and are usually applied to different global mobility policy types:

Per Diem: a per day payment structure that is designed specifically for employees on assignment lasting from 1 month to 1 year. A per diem is intended to provide a fixed daily living allowance that is equitable to all assignees in the same host location, regardless of salary level or home country.

Cost of Living Adjustment (COLA): a payment structure that is designed to protect assignees from the increased costs of goods and services at the host location by supplementing their salaries. The calculation also takes into account the longer-term nature of living and working in a host location while reflecting the expatriate’s spending patterns. Data providers offer multiple index options and the ability to customize according to company policies.

Leah Johnson

Leah Johnson is Sterling Lexicon’s Director, Client Solutions, and has worked in the global mobility industry for more than 20 years. She has held management positions in business development, operations, account management, and consulting, and had the opportunity to live and work in Tokyo and Hong Kong for six years. She initiated destination services in Hong Kong for a relocation management company and directed global mobility for Goldman Sachs in the APAC region. She graduated from Colgate University, earned an MBA from the University of Alabama in Huntsville, and maintains a Senior Certified Professional (SCP) certification from SHRM.

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31 May International Long-Term vs Short-Term Assignments

Global mobility professionals possess the difficult task of identifying the best candidate for an open position for an international assignment. While all may seem easy, relocating an employee internationally requires analysis and strategy.

As we go along another year with COVID-19, mobility leaders should keep themselves posted on the latest developments in the global mobility landscape. With more innovative options for assignments such as virtual assignments or the work-from-anywhere structure, mobility programs are becoming more and more complex.

But all these newer innovations can lead to global mobility professionals stuck in tunnel vision, overlooking the more traditional types of mobility arrangements. Long-term and short-term international assignments are the most common types that mobility professionals consider.

The length of time that qualifies an assignment to be considered long-term or short-term varies from company to company, but the general rule of thumb is that long-term assignments will range from 12 to 36 months in duration while short-term assignments may last from 3 months to a full year.

Defining the best assignment option can be tricky. Several intertwined variables are involved depending on the candidate and the available position. Moreover, relocation is a top stressor not only for the assignees themselves but for their families.

So, to increase international assignment success rates, mobility teams need to learn which option will best yield favorable results for the company.

One way to identify the best option is to see both the pros and cons of each assignment type.

Global Tax Network and other firms in the global mobility space help us by pointing out these advantages and disadvantages.

Long-term assignments

This assignment type is a popular choice for companies who desire to obtain specific expertise, target new markets, or offer career development opportunities for candidates who show exemplary performance within the organization. The nature of this type of assignment helps the assignee to build strong relationships and more comprehensive knowledge about the organization that can be valuable for the company.

From the assignee’s perspective, one benefit they gain from a long-term assignment is the possibility of being on their home country’s payroll. This way the employee can:

• avoid having to go through tedious and – at times – unfair currency changes to enable seamless home country payments such as student loans and mortgages 
• continue participation in his or her home country’s social security. This will prevent breaks in the required period of contributions so that they could meet the requirements for receiving social security payments in retirement
• enjoy his or her home country benefit plans

Long-term assignments are also seen to be the less risky option of the two types. With COVID-19 still around, it would make sense that employees in long-term assignments be better positioned and entail lesser movement in the whole relocation process. They can have longer immigration status and housing than short-term assignees.

A major drawback of long-term assignments is mostly cost-related. Long-term assignments can be more expensive due to:

• provision of additional allowances and benefits such as cost-of-living adjustments, host country housing, and moving expenses
• on-going costs from immigration, budgeting, tax planning, and more
• additional compliance requirements that are mandated by the host and home country.
• implementation of tax reimbursement for the assignee
• failure to benefit from the expertise acquired by the assignee by not retaining them as employees upon repatriation

Another thing to note is that employee dissatisfaction with long-term expatriates is known to be a common problem. It can be difficult for an assignee’s family members to become accustomed to a new environment causing a lot of stress and unfamiliarity. 

Short-term assignments

Short-term assignments may also offer the same benefits as long-term ones while addressing other points as well. Here are their advantages:

• employees receive compensation from their home countries to prevent currency exchanges that will cause delays in expenditures in the home country
• the company may offer modest compensation and allowance packages to mitigate preventable extra costs
• for tax purposes in the United States, temporary housing and per diems may be paid without taxes for some temporary short-term assignments

dDepending on the tax treaties imposed by a host country, assignees can avoid taxes if they do not exceed a certain time threshold

Short-term assignments might limit an assignee’s ability to achieve set goals and objectives due to time constraints. The nature of this type of assignment will make it more difficult for assignees to settle in and develop strong working relationships with both clients and colleagues in the host country.

Moreover, there are cost implications in shorter assignments from several factors such as:

• the longer processes in administering a short-term assignment caused by its susceptibility to change that require more constant support from mobility teams
• In some cases, the provision of a per diem and reimbursements will cost more than paying an employee under an expatriate policy
• higher state tax costs when a short-term assignee breaks state residency in the given period

Determining which assignment type will reign supreme will ultimately depend on the position and its objectives. Let’s just not forget how much influence employees now have over mobility policies and assignment practices, so it’s important for mobility experts to keep an eye on the latest developments in the field. 

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Short-term assignments are the new normal, but compliance remains a challenge

Are short-term international assignments the future of global mobility? Once considered an ‘alternative’ assignment type, they are now an established and essential means of moving talent around the world for many companies. ECA’s recently published Short-term Assignments Survey found that almost three quarters of companies expect their numbers of short-term assignees to increase in the next three years, a more significant rise than predicted for long-term assignees, international commuters or permanent transfers.

The suitability of short-term assignments for achieving a range of objectives contributes to their increasing popularity. Not only are they ideal for fulfilling temporary project needs but companies also commonly use them for career development purposes. In fact, short-term assignment policies are used to govern rotator and graduate assignments, extended business trips and even commuter assignments by many companies. Where companies have yet to find time to implement stand-alone policies for these types of assignments, or perhaps want to avoid the complexity of operating too many policies, short-term assignment policies may provide a suitable framework to use.

The use of short-term assignments for developmental purposes helps to explain the younger age profile of short-term assignees compared to their long-term counterparts. 45% of the average company’s short-term population is aged under 35, compared to just 21% of the average long-term population. The youthful nature of short-term assignees is reflected to some extent by the seniority levels of staff sent on these assignments, with very few senior managers or executives represented and assignees more likely to be working in professional or technical roles. 

Best practice in pay and benefits for short-term assignments is well established, with little having changed over the last five years, but the challenges they present are also unchanged, and include tax compliance, cost control and exception management. As short-term assignments increasingly become the norm rather than the exception in the next few years, we expect to see companies focus on improved policy, governance and processes to make sure they deliver the best value for their business. Some highlights from the survey are shown below.

To benchmark and review your short-term assignments policy based on best practice in the industry, you can purchase a copy of the survey results from the Surveys area of our website.

Our experienced consultancy team can help you to design global mobility policies , whether you are creating them for the first time or reviewing existing approaches. Contact us to find out more.

Over 80% of companies cover day-to-day living expenses for their short-term assignees, most commonly through a per diem or living allowance. Subscribe to ECA’s Short-term Allowance Calculator to calculate cost-effective essentials allowances for all your short-term assignees, or contact our Consultancy & Advisory team for individual calculations .