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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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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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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 .
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Pros and Cons of Different Assignment Structures for Mobility Programs
As companies adjust to the new reality of work and reassess their mobility programs, there is an opportunity for them to examine the costs associated with running their mobility programs and explore innovative solutions. We are witnessing a renewed interest in mobility as companies seek to adopt the best structure for their business and employees. While non-traditional forms such as remote and hybrid work are becoming more prevalent, there is also renewed interest in both short and long-term assignments.
This innovation has already been reflected in the evolution of new mobility policies supporting employees working from outside of their usual office locations, including “ Work from Anywhere ” or “Virtual Assignment” policies. Many companies have also increased their use of non-traditional assignment types such as business travelers or short-term rotations.
Download part one of our "Future of Mobility Survey: Remote Work" to discover how HR and mobility managers are creating policies that tackle the unique challenges posed by a remote workforce.
Based on these evolving trends, it may be easy for organizations to overlook the use of more traditional mobility arrangements to support their business growth and talent management goals. However, long-term assignments, short-term assignments, and permanent transfers each have attributes that warrant consideration when determining the most appropriate way to meet the objectives for your company and employees.
As mobility programs continue to evolve, it is important to understand the advantages and disadvantages of traditional assignment types and permanent transfers. Let's take a closer look at the benefits and drawbacks of these options.
Traditional assignment types – long-term and short-term assignments
One of the most commonly used relocation types is an “assignment.” An assignment is the relocation of an employee from one country to another for a specific period of time. A long-term assignment will generally exceed one year, where a short-term assignment will generally be shorter than one year. Below we have outlined some of the benefits and drawbacks for these assignment types.
Benefits and drawbacks of long-term assignments
Long-term or expatriate assignments have long been a popular option for companies who need to transfer or obtain expertise, set up new entities/markets, or provide career development opportunities, especially for future global leaders within the organization. Here, the longer-term nature of the assignment lends itself to building better long-term relationships and in-depth knowledge that can be invaluable to your organization.
From an employee perspective, another benefit of a long-term assignment is the possibility of remaining on their Home country payroll. In this way, employees can often:
- Receive compensation in their Home country currency, avoiding the need to convert Host country currency in order to pay Home country expenses such as student loans or mortgages.
- Participate in the Home country benefit plans. For example, a US citizen/resident employee on a 3-year assignment to the UK can continue contributing to the Home country 401(k), flexible spending plans, and will remain covered by Home country incentive compensation plans.
- Continue participation in Home country social security. In this way, there will be no break in the required time period to meet the coverage requirement for receiving the social security payments upon retirement. For employees at a later stage in their career, continued participation in Home country social security may be a deal-breaker.
Despite these benefits, a major drawback of the long-term assignment is often cost. Assignments can be more expensive to the company due to several factors, including:
- Providing additional allowances and benefits for the assignee. Common examples of these additional compensation elements include cost-of-living adjustments, hardship allowances, Host country housing, and moving expenses.
- Meeting additional compliance requirements. Employees may now have Home and Host country tax filings. And your organization may have Home and Host country reporting and withholding obligations, including related administration expenses such as the cost of establishing and running a shadow payroll.
- Implementing a tax reimbursement policy for your assignee. Tax equalization remains the most common policy for long-term assignments.
- Handling on-going costs incurred for immigration, tax planning, budgeting, internal administration, etc.
- Failing to benefit from the expertise gained by your assignees by not retaining them as employees or finding a suitable position to use their new skills upon repatriation.
It is important to note that proper planning and policies can help to reduce or eliminate many of these drawbacks.
As many factors, including employment, tax, and immigration law, and the availability of bilateral tax and social security agreements can impact the tax and payroll requirements for an assignment, it is important to consult with your mobility tax and legal advisors to make sure the long-term assignment is structured in an appropriate way.
Benefits and drawbacks of short-term assignments
Short-term assignments may allow companies to achieve several of the same benefits as longer-term scenarios, while also addressing several of the challenges. Benefits to the company of using short-term international assignments include:
- Like long-term assignments, an employee on a short-term assignment will often continue to receive compensation in the Home country payroll, seeing the same benefits as described above.
- The company may be able to offer a more modest compensation and allowance package to the employee, helping to reduce the overall tax and assignment costs to the company.
- For US tax purposes, certain reimbursements such as temporary lodging and per diems may be paid tax-free for certain temporary assignments of one year or less. Other countries may have similar rules for temporary assignments.
- Depending on the availability of income tax treaties and social security agreements, Host country taxes may be avoided or limited. For example, an employee on a 5-month assignment from the US to the UK may be able to avoid UK income tax if they will spend less than 183 days in the UK during a 12-month period, remain on the US payroll, and have their compensation expenses continue to be borne by the US entity. The availability of a social security totalization agreement would also provide for the ability to continue on US rather than UK social security through obtainment of a certificate of coverage from the US Social Security Administration.
- Short-term international assignments could result in a larger pool of potential employees for the international assignment program.
Despite these additional benefits, the shorter duration of the assignment may ultimately not provide enough time to allow the organization and assignee to accomplish all the objectives of the assignment. Additionally, the employee may not have enough time to fully “settle in” and develop relationships with the Host country office and clients.
Short-term assignments, as compared to a long-term or expatriate assignment, typically (but not always) result in a lower tax and assignment cost to the company. However, it is important to consider factors that may lead to additional cost, such as:
- Depending on location and the scenario, paying an employee under the expatriate policy may be less costly than providing a per diem and reimbursement of expenses.
- Administering a short-term international assignment may take more time than a long-term assignment. This could happen due to the length of the short-term assignment changing and requiring more constant support by the program administrator and/or tax services provider (e.g., monitoring the assignment).
- There are certain exclusions (e.g., Foreign Earned Income, Housing) and foreign tax credits available on a qualifying employee’s US federal individual income tax return that help alleviate double taxation that might occur as a result of an international assignment. These exclusions and credits may result in a lower tax cost to the company if the assignment is just over one year, rather than short-term.
- An employee on an expatriate assignment will often break state residency during the assignment period; an employee on a short-term international assignment generally will not break state residency. Thus, the state tax cost for the company will often be higher for the short-term international assignment.
Benefits and drawbacks of permanent transfers
Another commonly used relocation type is a permanent transfer or “transfer.” A transfer is a one-way relocation of an employee to a Host country for an indefinite period. In a typical transfer scenario, the individual will become an employee of the Host country entity, with Host country payroll and benefits.
Transferees will typically receive less company support than assignees. For example, instead of receiving allowances designed to keep an individual in a neutral purchasing position in comparison to their Home location (i.e., through provision of housing, cost-of-living, and other allowances), a transferee may receive a local pay package with limited or no allowances. Instead of tax equalization, they may only receive limited tax compliance assistance such as tax return preparation in the Home and Host countries for the year of transfer. Due to reduced support, transfer cases may initially have lower overall costs for the company than assignments.
Permanent transfers are often considered in scenarios where specific skills are needed/not available in the Host location, where the cost of an assignment is considered too high, or for employee-initiated moves . Because of the transfer to local payroll, administrative costs and complexities may also be reduced as the Host country entity would handle any reporting or withholding obligations. In addition, the risk of creating a taxable presence for the Home country entity (e.g., permanent establishment) is also reduced as the individual has severed employment ties in the Home country. However, despite these potential benefits, a transferred employee will likely receive compensation in Host country currency, and Host country benefits may differ from Home country benefits. Transferees are generally not eligible to contribute to Home country retirement/benefit plans such as the 401(k) plan for US employees, or contribute to Home country social security, which may be a significant drawback for those that are at senior or executive level or those approaching retirement. Additionally, employees take on exchange rate risk, potential cost-of-living issues, and potentially higher taxes.
From a talent management perspective, it may also be more difficult or costly to later relocate an employee who has been transferred rather than assigned to a location. A transferee will now be tied to a pay package and cost-of-living in the Host location, which will create a new point of reference for future moves.
What is the best relocation type for your company?
As has been shown, the type of relocation best suited for a given employee and your organization will be based on many factors. Key questions to consider include:
- Why is the employee moving? Is the move initiated by the individual or needed by the organization?
- What are the organizational goals relating to the move? Is the timeline for the proposed relocation reasonable to achieve these objectives?
- Does the employee’s career and personal goals align with the proposed scenario?
- Does the scenario support the longer-term career development objectives for the employee—e.g., will there be ongoing support to make sure the investment in the employee is not lost due to not having an appropriate repatriation plan?
Effective management of cross-border assignments can help firms that are trying to grow their business in key global markets while simultaneously reducing costs. There is no one-size-fits-all approach, hence, every assignment type and policy should be closely reviewed by the company based on the specific assignment objectives.
If you have questions about different assignment structures or how they could impact your global mobility program, schedule a free consultation with our team. We are happy to discuss your specific situation.
Author: Mark Tirpak, EA
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What is a Short Term Developmental Assignment?
Domestic Relocation , Employee Relocation , Relocation Policy , Talent Mobility , U.S. Relocation
Short Term Developmental Assignments (STDAs) are an increasingly popular tool for businesses to accomplish specific, finite projects and to develop employees while containing costs. Domestic STDAs really seemed to take off in the U.S. in the aftermath of the Great Recession. Concurrently, international short-term assignments, which have been on the radar longer, grew in popularity as companies looked for ways to reduce the cost of international relocation .
Length of STDAs
An STDA allows businesses to deploy talent where needed without making the financial commitment inherent in a permanent domestic relocation move or a long-term international assignment. Although an STDA can range from a few months to a year or more (if it’s a rotational assignment), most U.S.-based companies try to limit the assignments to one year or less to maintain the associated tax benefits.
Benefits of STDAs
Companies often use STDAs to develop high potential, junior-level employees. The hope is that the staff member will be a strong contributor in the host location while improving his or her professional competencies, mastering new skills, and honing leadership and managerial abilities.
For the employer, the aim is not only to complete the project successfully but also to develop a promising employee. Ideally, the STDA contributes to the employee’s satisfaction with the organization and improves the company’s chances of retaining the employee for the long term. A successful STDA also makes the employee a more valuable asset for the organization.
Learn More about Short Term Developmental Assignments
Within the mobility arena, short-term developmental assignments are gaining traction with companies looking to support business growth and employee development while controlling costs.This creative strategy allows businesses to deploy talent where needed without making the financial commitment inherent in a permanent domestic move or a long-term international assignment, but not without careful consideration.
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Top Benefits of Temporary Work
There are a number of great benefits for professionals to take on a short-term assignment.
There are a number of great benefits for professionals to take on a short-term assignment. Temporary job opportunities are a great way to fill gaps in your resume, build your network of connections, explore new professional opportunities, and put money in your pocket! You might also find your next full-time position with this strategic move.
Here are some of the top benefits of taking on a temporary assignment:
1. TEMPORARY WORK ALLOWS YOU TO EXPERIENCE A NEW POSITION OR INDUSTRY.
Are you thinking of making a career change? A temporary assignment offers you the unique opportunity to test out a career move before fully investing yourself and your time into a permanent position. If you’re committed to moving into a new industry or role, completing a temporary job assignment in a related field can help get your foot in the door. Companies look to hire candidates with similar industry experience because you can quickly make an impact once you join the team.
2. TEMPORARY WORK FILLS THE GAPS IN YOUR RESUME.
It often takes more than a month to find a permanent job opportunity. Temp work can help keep income coming in and fill in gaps on your resume as you search – providing additional experience in the process. It keeps you going, growing, and looking good to potential future employers. It’s also an opportunity to build valuable references for future positions.
If you’re early in your professional career, landing your dream role without a long CV can make it challenging to get your foot in the door. Taking on a temporary role not only provides networking and upskilling opportunities, but also helps build your professional portfolio and adds professional experiences to your resume.
3. TEMPORARY WORK HAS FLEXIBILITY AND BETTER WORK/LIFE BALANCE.
Temporary positions often allow you to manage your work-life balance better than permanent ones. In between assignments, you’re able to spend time on your “side-hustle”, whether that’s your family, your Etsy business, Uber, or anything else. Depending on the type of position, there also may be limits on overtime so your work hours don’t encroach your personal time, and you’d be eligible for overtime pay that you wouldn’t otherwise have in a salaried position.
4. TEMPORARY WORK ALLOWS YOU TO EXPAND YOUR SKILLSET.
Not every temp job will be perfectly aligned with your skillset, and actually, that’s what makes temp work such a great opportunity for you. Not only can you continue to sharpen some of your current skills, but you can also pick up skills that may be brand new to you and learn new platforms you wouldn’t otherwise have exposure to. Research shows that every 4-5 years your skills become half as valuable. And for technology, it’s even less. By learning new skills and keeping your existing expertise up-to-date, you become the top candidate for future roles and an expert industry best practices.
5. TEMPORARY WORK ALLOWS YOU TO BUILD YOUR NETWORK.
You never know who you will meet while working on a contract job, who they know, and where they can potentially make introductions. Working a contract position only helps to expand your professional network. An estimated 85% of jobs are filled through networking . In addition to meeting valuable contacts, you have an opportunity to gain recommendations on LinkedIn to help build your portfolio of skills.
6. TEMPORARY WORK COMES WITH A BUILT-IN SUPPORT SYSTEM.
Staffing companies, like our team at LHH, are here to help guide you through each assignment you take. Our recruiters are trained to work with you to ensure that you’re working on the right assignment, with the right company, for the right compensation. You’ll receive benefits and a steady income, in addition to professional career guidance from your recruiter, all at no expense to you.
If you’re ready to explore short-term opportunities, we’d love to talk! Take a look at our open temp roles or reach out to discuss your goals with one of our talent recruiters.
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Make the Most of a Short-Term Assignment
Short-term assignments, transfers, or rotation programs can have big advantages: You’re exposed to new geographies, functions, cultures, and people. But these temporary positions often come with little or no training, so it’s your responsibility to get up to speed fast. Here are three ways to make sure you’re getting the most from a short-term assignment: […]
Short-term assignments, transfers, or rotation programs can have big advantages: You’re exposed to new geographies, functions, cultures, and people. But these temporary positions often come with little or no training, so it’s your responsibility to get up to speed fast. Here are three ways to make sure you’re getting the most from a short-term assignment:
Source: Adapted from “Maximize Your Learning in Short-Term Assignments,” by John Coleman
COMMENTS
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 ...
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.
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.
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 ...
Like long-term assignments, an employee on a short-term assignment will often continue to receive compensation in the Home country payroll, seeing the same benefits as described above. The company may be able to offer a more modest compensation and allowance package to the employee, helping to reduce the overall tax and assignment costs to the ...
Learn More about Short Term Developmental Assignments. Within the mobility arena, short-term developmental assignments are gaining traction with companies looking to support business growth and employee development while controlling costs.This creative strategy allows businesses to deploy talent where needed without making the financial commitment inherent in a permanent domestic move or a ...
The number of short-term assignments in companies has been increasing, and the trend is expected to continue. Within large corporations, secondments, short-term transfers, and functional or ...
There are a number of great benefits for professionals to take on a short-term assignment. Temporary job opportunities are a great way to fill gaps in your resume, build your network of connections, explore new professional opportunities, and put money in your pocket! You might also find your next full-time position with this strategic move.
Short-term assignments, transfers, or rotation programs can have big advantages: You're exposed to new geographies, functions, cultures, and people. But these temporary positions often come with ...
Many people look for short-term assignments at some point in their working life as it presents many real advantages. Skills development. Temporary assignments or contract roles offer you a broad depth of opportunities, experience and skills development. You can accept assignments that will broaden your expertise and expose you to new industries.