short term assignment definition

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.

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.

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.

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Taking Another Look at Short Term Assignments and Talent Mobility

Corporate Relocation , Domestic Relocation , Employee Relocation , Talent Mobility

The Covid pandemic has spurred companies and employees to reassess work models and locations, and to consider more flexible, cost-effective ways to achieve business objectives. While not new, short-term assignments can be an effective workaround to current obstacles to employee relocation —from reluctance to relocate to a frenzied real estate market and global restrictions.

Short-term assignments are a “lite” form of talent mobility, enabling businesses to achieve specific, finite project objectives with less expense and disruption. International short term assignments have a longer history, arising as a relatively inexpensive alternative to global relocation . Domestic short-term assignments became more popular over the past 15 years, as the U.S. recovered from the Great Recession.

Objective of Short-Term Assignments

Companies originally devised short-term assignments as a developmental opportunity for high potential, junior-level employees. The employee had the opportunity to meet and work with employees in a different company location, master new skills and hone leadership abilities. This opportunity can increase the employee’s job satisfaction and loyalty and help the company to retain a promising employee. Employees who shine in STAs can be candidates for promotion and future STAs or possibly a traditional global assignment.

Short-term assignments also can be an effective way for more experienced employees to share their expertise with other parts of the organization. A company might deploy a manager to oversee the opening of a new company location, lead a merger or acquisition or bring specific IT or other technical expertise to another company location. In these examples, permanent relocation might not be necessary, but a brief business trip wouldn’t be enough.

Tax Implications of Short Term Assignment Jobs

The IRS treats short-term assignments more like business travel than relocation expenses . Relocation expenses are employee benefits and must be reported on the relocating employee’s W-2 for the year. Most companies gross many of these expenses up to cover the tax obligation, creating another expense for the company.

The IRS definition of a short-term assignment is very precise: the company must expect it to last for less than one year and it must actually last for less than one year. In this case, the IRS considers travel, lodging and certain other expenses to be business expenses that are deductible for the employer and not W-2 benefits to the employee.

Assignments can change in scope or length once underway, and this can influence the tax treatment. The minute an employer determines the assignment is going to extend longer than a year, the reimbursed expenses from that point forward become a taxable benefit to the employee. This applies whether the company reimburses the employee directly or pays expenses on his/her behalf.

So short-term assignments can last longer than a year (this is particularly common with rotational assignments), but the company will sacrifice some of the cost-savings of shorter-length assignments. The scope of work will be one consideration in deciding whether a short-term assignment or relocation makes better business sense.

Learn More About Short Term 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 relocation or a long-term international assignment, but not without careful consideration. Download the Short Term Assignments White Paper

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Short-Term Assignments: The Challenge to Do More Faster

Introduction: why short-term assignments.

Deployment of talent on short-term international assignments is one of many trends that global companies are accelerating to cope with the global financial crisis. Short-term assignments were already on the rise due to changing workforce demographics, the need to offset recruiting gaps, increased focus on strategic global projects, and the desire to provide greater flexibility to employees. Assignees are sent to one or more key global locations to implement a particular set of tasks without the large investment of time or expense associated with a full-fledged global assignment. Other changes that have recently impacted more traditional global assignments include limiting the number of expatriates worldwide while focusing on highly strategic roles, accelerating the development of local leadership, and moving some expatriates to “local hire” status. Given the heightened significance of short-term assignments in these difficult times, it is worth looking at best practices that can help to ensure the success of projects vital to growth and effective operations in key world markets.

Potential Challenges

Just because an assignment is shorter in duration does not mean that it is easier. In fact, a strong case could be made that a short term international assignment is actually more fraught with potential pitfalls than assignments of three or more years. With a tight timeframe in which to get the job done, short-term assignees are under pressure to hit the ground running and to accomplish a lot in a hurry. They do not have the time to take their first few months on assignment to get settled in a new environment, listen and learn, recover from early mistakes, and gradually build effective working relationships with their local colleagues. Due to time constraints, they may not have the full support of a short term international assignment management strategy. Indeed, the conventional wisdom that employees become fully engaged and effective during their second year abroad is unacceptable for short-term assignees, as their assignments may be over within a fraction of a year.

Short-term assignees, with their aggressive goals and deadlines, are possibly more susceptible to common expatriate mistakes such as failing to build key relationships to gain support and ownership for new initiatives, introducing headquarters practices with insufficient knowledge of local circumstances, and alienating local colleagues and counterparts by pushing too hard and too fast. Yet, they are afforded less time to recoup from such missteps.

The expatriate nemesis known as “culture shock” also affects short-term assignees. People living in a very different environment can begin to feel isolated and ineffective in the absence of a personal support network, sufficient language skills, or access to local resources. Many short-term assignees make the move solo, leaving behind close family members and/or significant others. They also tend to live in sterile hotel rooms or other temporary accommodations. For these reasons, they are missing the immediacy of personal ties and comforts of home that can help longer-term expatriates find the resilience and resourcefulness to cope with temporary lows. The temptation to spend free time working may curtail the short-term assignee’s participation in informal social events that would otherwise enable him or her to forge new relationships and learn cultural lessons.

Preparing Short-Term Assignees: Ten Key Questions

A good global mobility strategy for short-term expats is important for ensuring positive initial contact and for ensuring expats have the resources they need to thrive during their assignments. A range of global mobility solutions for short term assignments are available to give expats the freedom and ability to interact meaningfully with global colleagues.

Consideration of the following ten questions is a good starting point for assignees who want to overcome the obstacles and best leverage the investment that both they and their companies are making:

1. What can you do to develop your personal network in advance?

Regardless of where you are located, there are often contacts available that allow you to start building a personal network in your destination country and to acquire relevant knowledge before leaving home. Sources for such contacts might include:

• Assignees from your future host country who are residing in your current location;
• Former expatriates who lived in that country and can provide introductions;
• Residents of the broader community in which you live (there are large foreign contingents from many parts of the world in most major urban areas);
• Alumni associations; or,
• Web-based platforms such as LinkedIn.

2. Are you being introduced in the right way?

The way that you are introduced to new colleagues is crucial. For instance, in some cultures hierarchy and group affiliation — “whom you know” — are valued over “what you know.” In these environments, your credibility and the importance of your project can be underscored through an introduction by a high-status individual whose views carry weight in the host culture, or undermined by a haphazard or unmediated introduction that does not position you appropriately in the eyes of host nationals.

3. What is the level of local input and support for your agenda?

There is a big difference between a project that has been planned and driven primarily or entirely from headquarters and one with local involvement and strategic contributions from the beginning. What was the origin of the effort with which you are involved? Is it new to your host country colleagues, or has their input been incorporated already? Depending upon the answers to these questions, you may need to take a different road towards implementation. In the case of a headquarters-driven initiative, you will probably have to work harder to provide a rationale for going forward that makes sense in the context of local business circumstances, and modify the project as you proceed. Neglecting to do this invites outright rejection or feigned compliance – in the case of a short-term assignee, local colleagues do not have to wait very long for the foreign “typhoon” (that is, you!) to pass.

4. Do you understand the perspectives of local stakeholders?

Try to identify and meet with a group of local stakeholders who can provide input and advice. What do they want from your stay in their country? How aligned are your goals with theirs? What advice and insights do they have about local customer needs, employee capabilities, and organizational priorities? If you can engage such key stakeholders early on, you are more likely to establish targets and adopt implementation methods that fit their business context.

5. Are your fellow team members ready and willing to participate?

For many team or project leaders, especially temporary assignees, matrix reporting relationships are a fact of life. If your team is essentially rented out from other managers, do you have the buy-in of those managers for your initiative, and are they encouraging your team members who report to them to participate fully? Misunderstandings and dysfunctional team behaviors occur most often when participants on the same team are driven in divergent directions by conflicting metrics, priorities, and leadership demands.

6. Is your role clear to everyone involved?

You may have a perception of your role on assignment that is not shared by your new colleagues. Are you a team leader, a project coordinator, a liaison with headquarters, or an individual contributor? What is your role in making decisions that will impact other team members? What is the project timeline, and what are the key objectives that you seek to achieve? At the outset of your assignment, it is useful to share your understanding of your role with fellow team members and to hear their understanding of both your role and theirs at the same time. Any gaps in expectations are best addressed sooner rather than later, and could require consultation with key stakeholders and/or higher management in order to avoid having team members work at cross-purposes and blame misunderstandings on one another.

7. Can you relax and learn about the local culture at the same time?

Every culture has rules and assumptions that are not immediately visible or articulated. For example, how is true agreement expressed? Is information commonly shared on the basis of one’s function or through long-standing personal ties? Should feedback be given and received in more direct or more indirect ways? How should one demonstrate respect for persons in executive roles? Who needs to be consulted when major changes are proposed?

By spending time with colleagues in informal social settings, you have the chance to see them in a different context and listen to their views about questions like these. They may feel freer to offer advice in such an environment, and by taking part in cultural events — dinners, entertainment, ceremonies, festivals, sporting contests, etc. — you will gain insights into workplace interactions. At the very least, the camaraderie generated in these settings usually makes your host country colleagues more inclined to cooperate with you and your agenda, especially in relationship-oriented cultures.

8. Have you allowed sufficient time for any knowledge transfer that must occur?

If there is a significant body of knowledge to be transferred to the new location, the most prudent strategy is to take the time you would normally expect to invest in this transfer and double it. A host of issues can affect the smooth movement of knowledge between one location and another. Factors that it may be necessary to consider are fear of job loss on the part of those in the host location conveying the knowledge and a related hesitation to share information; problems in linking IT platforms; different or insufficient technical backgrounds on the part of trainees that require recalibration of materials and methods; learning styles that call for extensive “hands-on” involvement of the trainer; and the need for spoken and written translations into other languages.

9. How will you maintain your own personal support system?

Although your assignment may be just a few months in duration, it is not a good idea to go it alone. Simple steps, such as setting up a web-cam connection that allows you to see loved ones as you speak with them, or arranging in advance to have others visit while you are on assignment, can provide you with sources of enjoyment, support, perspective, stress release, and a “sanity check” when work becomes difficult. Investing energy in making new friends and acquaintances through common interest groups will also give you the foundation for a local support network and ways to learn about your host country. These kinds of personal experiences can turn out to be as valuable in many ways as your professional ones.

10. Do you have a local partner who can carry on your work after you’re gone?

Being in a rush to complete assignment tasks successfully comes with the territory during a short-term stay. However, a critical error that many assignees make is that they neglect to identify and groom local owners for their initiative. The result is that when the assignee leaves, the initiative loses momentum and fades away. It is essential to identify local partners at an early stage and bring them into projects in a manner that allows them to identify with the progress to date and take responsibility for the next steps. The ideal outcome is for them to champion your initiative to the extent that you are no longer needed. Without this, a short-term assignment loses its meaning, either because it has to be extended or because its impact does not live on beyond the assignment itself, an outcome that is not optimal for the assignee, the host organization, or the company as a whole.

Effectively managing short term international assignments can help firms that are trying to grow their business in key global markets while simultaneously reducing costs. Assignees who prepare themselves by taking steps such as those outlined here will be better able to overcome the inherent hazards of trying to get a lot done in a hurry in a new environment, and will increase the chances of completing their assignments successfully. Companies can help by offering support and comprehensive short term assignment policies.

If you’d like to help your team succeed on short-term and long-term assignments, our Global Mobility solutions. We offer a wide range of solutions for companies and teams requiring the skills and global intelligence needed for international work assignments. We’re proud to have supported over 16,000 individuals and their families in developing the tools they needed before, during, and after assignment. We look forward to being part of your success story.

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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

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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 2022 report: 10 takeaways

Short-term assignments (STAs) continue to be a popular option for global mobility and are quickly evolving into an ED&I Mobility vehicle. These opportunities have the potential to allow more diverse employee populations to gain experiences that will enhance career paths and diversify an organization’s leadership pipeline. This makes it more important than ever to ensure STA policy lines up with typical practices.

• 68% of policies are from EMEA-based companies. This predominance reflects the use of STAs globa­lly. Given the geography of the EMEA region (vs North America), STAs are a realistic option for many reasons that companies transfer employees (e.g., skill development, filling a position gap, etc.).
• Half of the policies specify that STAs are unaccompanied, typically attributed to the limited assignment duration, which most commonly ranges from three (62%) – twelve (83%) months.
• Immigration assistance (addressed in 89% of STA and LTA policies).
• Travel to the host location (87% of STA policies vs 92% of LTA policies).
• Cultural training (61% STA vs 67% LTA).
• Language training (61% STA vs 78% LTA). Just as in LTA policy, the use of cultural and language training typically requires approval.
• 90% of policies address health insurance for short-term assignees. It is becoming common to provide an international program for short-term assignees, as stated in 41% of policies (55% use this approach for LTAs).
• 34% of STA policies address settling-in assistance, compared to 46% of LTA policies. Assistance typically focuses on single assignees who are in country for a limited duration that might require: assistance with establishing a bank account, locating shopping facilities, public transportation, local services, religious institutions, and social opportunities.
• Home leave is addressed in 84% of STA policies (vs 90% of LTA policies). The major difference is the timing of the trips. For STAs, the most common frequency is one trip every three months (33%). Though many policies vary frequency based on assignment circumstances such as duration, accompaniment status, or distance between the home and host country.

• STA policy rarely includes the shipment of household goods; rather, most (52%) assist with an air shipment of personal effects or excess baggage charges only (30%).
• Few (23%) provide a pre-move trip. P­­rimarily because most (72%) provide furnished accommodations rather than have the employee find their own housing.
• Fewer (47%) provide temporary living for STAs than the 98% that address it in LTA policies.
• It is not as common to provide a hardship allowance for STAs (32%) as it is for LTAs (53%).
• Use of a relocation allowance is not as common for STAs as it is for LTAs: 47% vs. 84%, respectively.
• Most companies (63%) retain employees on their home country compensation and provide a per diem or reimbursement for daily living expenses while on an STA.

The lower cost profile of short-term assignments – due to single status, shorter duration, simpler support – continues to contribute to the popularity of this move type. For companies reviewing their STA policies, it can be very beneficial to see what the typical practices are and how they differ from their LTA counterparts.

Five common myths about short-term assignments

Myth #1: an sta is pretty much the same as an lta – just shorter..

Fact: The differences between these two assignment types are notable and significant. Long-term assignments are typically investments in the future. Their considerable use of resources (people and money) makes them worthwhile for business-building initiatives such as leadership training, market expansion, management roles where local candidates are not available and new product development. These are all goals that require a long term to complete. Short-term assignments are better suited to initiatives that can be completed in under a year. Global exposure, filling a job gap, short-term projects and skill building are examples of realistic STA assignment objectives.

Myth #2: Employees on short-term assignments need less support than those on long-term assignments.

Fact: Replace “less” with “some of the same but also different” and you would be correct! For example, short-term assignees need assistance with some of the same things as long-term assignees (immigration and tax compliance, travel, arranging housing, becoming familiar with the assignment location, etc.). But they also need different things, given that most short-term assignees remain on home-country compensation and retain many home-country expenses. For example, they need a per diem to cover daily living costs in the host location. Since many STAs are single-status, employees may have left immediate family in the home location. Therefore, trips home are a greater need for STAs than they are for LTAs.

Myth #3: It sounds like an STA is really just a glorified business trip.

Fact: Aside from the primary distinction that a business trip is typically no more than a month and an STA is typically 3-12 months, the business objectives are different, too. This is a key issue.

Myth #4: Short-term assignees don’t need the same cultural or language training as long-term assignees.

Fact: The fact that short-term assignees need to quickly get up and running, live in the local area and succeed in the business environment often dictates that they require the same or similar training as long-term assignees. Of course, there are times when a short-term assignee is needed for work that is primarily solitary and does not require local language skills. In this case, more condensed training may be sufficient.

Myth #5: We should be more concerned about the challenges of long-term vs. short-term assignments, given their bigger goals, longer time in the host country and greater cost to the company.  

Fact: STAs may impact a more diverse pool of employees than LTAs do. Companies may not recognize the challenges different demographics may encounter on STAs as they do for LTAs. For example, an employee may turn down an LTA because a same-sex partner cannot accompany but that employee may undertake an STA single-status. However, that employee still needs to be successful in the local environment. Similar ED&I considerations may be necessary for many populations (women, younger employees, older employees, etc.). It is important to address the same factors for these employees on STAs as one would if they were embarking on an LTA.

To benchmark your STA policy and discover more emerging trends, download our 2022 expert report here .  

If you have any questions regarding this article or would like to find out more about other services, please contact Lisa Johnson (Global Practice Leader, Consulting Services) at [email protected] .

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International Short-Term Assignments

International short-term assignments are a useful global mobility tool, that provide companies with a resource to support critical strategic needs while mitigating mobility program costs. Short-term assignments may also be used in a developmental capacity providing high potential employees an opportunity to grow in their career. Short-term assignments commonly range from 3 to 12 months in duration.

One of the biggest challenges of global mobility is compliance with applicable immigration, tax, employment, and permanent establishment laws. Laws that change quickly and vary from country to country can take companies by surprise. A carefully crafted short-term assignment program and comprehensive policy can help avoid potential hazards. Having a consistent program with clearly defined parameters will allow the focus to remain on compliance.

Program Development

As with all mobility programs, short-term assignments can be structured as a single policy applicable to all, tiered based on factors such as business need or job level, or as a structured core/flex program. When developing a short-term assignment program, whether for the first time or revising an existing policy, these initial steps are recommended:

• Consider the overall company culture, mobility philosophy, business objectives of the international short-term assignment program, and common assignment objectives.
• Identify employee job levels and demographics.
• Reflect on the importance of the employee experience as well as how the assignment policy can support DEI initiatives.
• Determine the most common assignment durations and locations, if possible, to estimate the anticipated cost of the benefits under consideration.

These initial steps will, in turn, help the company determine the desired parameters of the program. A common example of how a company’s overall company culture influences mobility policy can be seen in eligibility of family members under a short-term assignment. Some companies may decide that short-term assignees may not be accompanied by families and reflect that in policy eligibility language. Some companies will not support families going on the assignment, but do not expressly reject families from accompanying at their own expense. While others with a more family focused culture will allow accompaniment and provide some supporting benefits.

Assignment duration is also a key factor in short-term assignment program design. These assignments can have varying ranges from as short as 30 days or up to 18 months. They are most commonly defined as longer than 90 days or up to one year. However, knowing company intentions regarding durations helps in determining parameters and components. For example, if assignments are typically shorter in duration, the policy may not include parameters for home leave. If the assignments are typically the full year, the company may decide to include a home leave. If there is a possibility that the assignment may extend beyond 1 year, the company should be prepared to address whether benefits change or the employee transitions to another type of mobility policy. If short-term assignments are a new phenomenon and assignment durations are unknown at the time of program development, it will be important to revisit the policy as the assignment program matures.

A brief description of the components commonly found in international short-term assignment programs follows. It is important to note that note every component has to be included in order to have a successful program, and regional variances/culture may also dictate which components are included. There may also be variations on the inclusions and descriptions below as these descriptions are based on an unaccompanied employee. 

International Short Term Assignment Program Components

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Relocation packages designed to support your short-term international assignment policies

What is the definition of a short-term assignment.

A short-term assignment (STA) is typically defined as an employee international assignment of more than 30 days and up to 12 months.

A short-term assignment does not normally include a change of residence and does not always include the relocating employee being accompanied by their partners or family. It may also be part of a group move project. They are popular because they enable employers to complete smaller specific projects, fill temporary skills gaps and are commonly used as developmental opportunities for staff as part of a company’s broader talent programme.

We have developed a short-term relocation package to support this requirement.

Expert relocation coordination and cost management

We provide management of your short-term assignments through coordinating a range of services which provide a high level of support for your relocating employees, as well as managing costs.

Relocation package core services to support an assignment of 1-12 months

• Immigration coordination • Temporary accommodation booking with negotiation of lower rates • Mini international move service • Settling-in support • Expense processing

Recommended flexible options

• On-assignment support

Rotational and group move projects

If your relocating employee is working on a rotational assignment basis, then we can manage their experience so that they have the same Relocation Manager supporting them throughout.

If your short-term assignments are part of a group project, we can provide a project management team and group move programme to support your relocating employees. This can include creating cost efficiencies by group booking accommodation together.

Developmental assignments and graduate move options

If your short-term assignments are part of a developmental programme or a graduate move scheme, we can consult with you to optimise the programmes and the packages to provide the most economical and highest level of support available.

Global Mobility Consulting Services

• Policy benchmarking and development • Data sourcing for CoLA and Relocation Costs • Assignment cost estimates calculations • Letters of assignment

Ensure your shot-term assignments are effective and compliant with Gerson Relocation

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Types of Global Assignments: which one is best for each of your relocations?

With a diverse global mobility portfolio, organizations can maximize their ROI by ensuring they choose the most appropriate and cost-effective assignment, whether concerning the duration of the assignment, location or its overall strategic goal.

Let’s look at the different types of global assignments.

Short vs. Long term global assignments

An  assignment  is a type of relocation within a global corporation or joint venture that requires the employee to relocate, specifically to another country, and work there for a set amount of time.

We consider “short-term assignments “those that take place within less than a year; and a “long-term assignment” when the predetermined time is greater than that. Short-term assignments are usually associated with specific projects with shorter timelines, while long-term assignments are more broadly strategic. Long-term assignments are quite labour intensive for companies and their relocation partners because of compensation and taxes.

International commuter assignment

An alternative to traditional global assignments, a commuter assignment happens when an employee lives a few days of the week in the country they work in and frequently returns to their home country.

International commuters are not defined by a specific type or length of the assignment. Some are actually classic relocations, with the employee returning home regularly, possibly on weekends or for a full week every month. Others are less organized “frequent flier” assignments in which the employee travels between countries without a fixed schedule (HR – important! You should always have a way of tracking time spent in the destination country). Sometimes, assignee reluctance to leave their family for short-term assignments results in the company choosing a commuter assignment. This may not always be the best solution for the project (should someone else be considered?)

Extended business travel

Extended Business Travel (EBT) is an umbrella term for frequent business travellers – who travel for business to different countries regularly -, and extended business travellers – who travel for business to another country for an extended period.

As businesses attempt to reduce reliance on traditional assignment types, EBT is a way to respond to demands in other regions of the world or even within the same country. Yet, it is important to pay attention to the duration of the stay. Extended business travel is not without its disadvantages. Tracking time spent at a destination may be harder because the rules around extended business travel are looser. There may be health care coverage concerns. And when extended business travel exceeds 183 days, the agreement might trigger tax obligations in host countries. But other destination country rules may trigger tax without crossing the threshold of 183 days. Finally, extended business travel may be exhausting for the employee and cause stress at home.

Is your company thinking of relocating personnel internationally? Strategic considerations play a role in determining whether to create a long or short-term assignment and overall cost and tax ramifications. Employee hesitancy may mean a commuter assignment over a short-term assignment, but commuter assignment can have a lot of hidden costs. Work with a Relocation Management Company to determine which kind of global assignment works best for your particular situation.

One final word about short-term commuter assignments and extended business travel: it is very important to implement systems to monitor employees’ travel. The company and employee may be liable for tax withholding payments or financial penalties. One problem at companies with low global mobility is that short-term and commuter assignments are often decided upon at short notice at the level of the individual specialist departments, bypassing HR.  This means risk to the company including reputational risk with government authorities. HR should be at the center of relocation, be it long-term, permanent, or shorter-term varieties.

Let All Points help you with this decision.  Contact us  to learn more.

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Helping companies relocate employees & recruits seamlessly, whether it is domestically, cross-border or globally.

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  Managing Short-term Assignments  

Like all areas of the working world, global mobility is evolving. Businesses are providing employees with increased flexibility by offering different forms of international assignment. Where once expat assignments lasted three to five years, now assignments vary in range.

A short-term assignment can be a more cost effective way of achieving specific goals in another market without disrupting an employee’s life too much. 

What is a short-term assignment?

• A short-term assignment (STA) is an international project that usually lasts between 3 and 12 months. They allow organisations to transfer resources, knowledge and skills cost effectively and quickly providing fast response to business needs. For some companies short-term assignments are becoming more popular than their long-term equivalent due to changing workforce demographics, skills shortages and the need to provide more flexibility to employees. 
• Just because employees are away for less  time does not make STA’s easier. In fact, short-term assignments may be more difficult as there is a need to hit the ground running and accomplish a lot quickly.
• When it comes to short-term assignments, thorough preparation is more important. Potential pitfalls that can cause problems for professionals in an overseas office for a short period include:
• Failure to build key relationships
• Culture shock
• Alienating local colleagues
• When planning an STA pre-departure training is important but pre-departure preparation is essential.

Preparing short-term assignees before assignment

Preparing for a short-term assignment is challenging. It may need to go further than providing the soon to be expat with clear understanding of their role or overview of the local culture. Short-term assignees with aggressive deadlines may fall into a common expat error of trying to introduce initiatives without sufficient knowledge of local circumstances or alienating colleagues. 

For these kinds of assignments pre-departure preparation must go much further than training on what to expect, it should allow the soon to be expat to begin their assignment before they leave. 

Developing personal network in advance

Help employees prepare in advance for life in their temporary home by doing everything possible to acquire relevant information about life there:

• Arrange meetings with employees from the host country that are working in your current location
• Encourage the employee to join groups from that country in your city 
• Make the most of web-based platforms like LinkedIn or Meetup to enable future expats to become more aware of life and work etiquette before they leave

Virtual introductions to colleagues

Gauge local support and understand perspective, supporting short term assignees on assignment, are the team willing to participate, is their role clear.

At the outset of the assignment it is important for the expat to share:

• The assignment goals
• The expat’s role
• Expectations for employees

This does not have to be completed on day one but may be useful within a few weeks of the assignment starting. This way, any gaps in expectation or issues that arise can be ironed out quickly to provide the assignment with the best chance of success. 

Maintaining their personal support system

Even though short-term assignees are not going to be overseas for long, having a support network outside of work still matters. This is where the groundwork put in before the assignee arrived should pay dividends. Help expats find work life balance by continuing a hobby they have at home, locally, from yoga to rock climbing, hopefully there’ll be a group or venue where they can let off some steam after a busy day in the office. 

It is also important STA’s remain connected to colleagues in head office particularly if the medium term plan is they return to a role there. Arranging intermittent virtual check ins is a great way to ensure there are no surprises when they return to head office. 

Achieving Short term assignment goals 

Sufficient time for knowledge transfer, local owners of the initiative .

The last thing your business wants is to spend all that time and money on an STA only for everything to revert to how it was previously as soon as that person leaves. Key to long-term implementation is ensuring there are local owners of the initiative who will continue to grow the programme once the assignment is over. 

Ultimately any global mobility practice should aim to create solutions that are employee centric while also being relevant and cost effective ways to achieve company goals. Although there is likely to always be place for longer term assignments, their short-term counterparts may be the right solution in certain scenarios.   

Managing short-term assignees may be challenging but looking after their health while they are away does not have to be. We have group international health insurance schemes tailored to the needs of your business.

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Effective Short-term Assignment Per Diem Calculations

Short-term assignments is a growing – and growingly complicated – category within international mobility, with the number of short-term assignees increasing at over half of multinational companies over the last two years, according to Mercer’s 2012 and 2010 Worldwide Surveys of International Assignment Policies and Practices. An increasing number of assignments means higher costs, and it is more important than ever to ensure that the short-term allowances you provide to your employees are calculated accurately and consistently. Most multinational employers choose to use short-term per diem allowances rather than an expense-report-based reimbursement system for short-term assignees for consistency and budget control. But how should you approach per diem calculations to ensure your allowances are cost-effective, fair and consistent?

What is a short-term assignment?

First of all, it is important to be clear with what constitutes a short-term assignment. Employers may be differentiate based on family status, nationality, salary levels or other factors when determining the daily living allowance for these assignees. However, typically, a short-term assignee at a multinational company

• is on an assignment of 3 to 12 months,
• is unaccompanied by family members,
• is housed in a company-provided furnished apartment, with a self-catering facility (i.e. kitchen),
• receives transportation assistance from the company, and
• remains on home-country payroll and benefits.

What matters in determining short-term per diems?

What should you watch for when determining daily allowance recommendations for this type of assignees?

The key to effectively managing per diems is to ensure that you are getting data based on correct assumptions. The data should be flexible, accurate, and tailored toward short-term assignees at companies like yours.

The accuracy of the data that goes into the calculations is, of course, primary. That does not only mean that the various costs that make up the per diem should reflect current spending levels of assignees in a particular location. But the data should also be based on the spending of other business employees on short-term assignments. That means the calculations are made with appropriate assumptions, such as that the employees are staying in lodgings with self-catering facilities rather than in hotel dwellings where they would spend significantly more on eating out.

It is also important that the recommendations are transparent and flexible. Being able to pinpoint the costs of various elements of the per diem will not only help you manage budget and expectations, but will also let you adjust the allowance based on specific circumstances. You may want to adjust the market basket and/or compensate short-term assignees differently depending on their salary level, the purpose of their assignment or other factors. Mercer’s short-term per diem calculator presents our clients with three price levels and allows to customize per diem elements, so that they can apply the recommendation that fits their company’s budget and spending assumptions.

Isn’t free public data the easiest and cheapest source of recommendations?

When searching for per diem recommendations, you may find free public data available online, often published by government agencies. But this data may not meet the objectives of your short-term assignment policy or budget for a number of reasons. Here are some differences between the governmental approach, this one of the United States Department of State, and that of Mercer, which is experienced in providing data specifically for short-term assignees from multinational companies:

• Assumes employees are living in apartments/hotels with kitchen facilities for meal preparation
• Prices are updated twice a year and exchange rates are updated weekly
• Prices reflect outlets used frequently by expatriates in each location
• The number of meals out varies by the three levels offered by Mercer and can be customized to include as many or as few as a company deems essential. It is based on typical costs at dining facilities frequented by expatriates.
• Data includes expenses based on statistical research of consumption on short-term assignments and includes items in categories of personal care, recreation, public transportation and over-the-counter medicine.
• Assumes employees are living in hotels without kitchen facilities and eat all meals out
• Prices for hotels and meals are updated every two years (unless major changes require an interim update)
• Prices reflect the hotels and meals most frequently used by typical government travelers
• The meal portion is based on the average costs of three daily meals at dining establishments typically used by federal employees in that location.
• The “incidentals” portion is calculated as the cost of meals plus 10% of the combined lodging and meal costs, to cover incidental travel expenses

What do these differences in data sources and per diem calculations mean in terms of daily allowances? Let’s look at some of the most common short-term assignment locations worldwide and compare Mercer’s recommended per diems with those of the US Department of State:

Per diem allowances: Mercer vs. US Department of State (DoS) – Data other than % in USD; all data as of 15 October 2012

Unaccompanied assignee, price levels (all in USD)

As you can see, the differences in assumptions and approach yield significantly higher daily per diem recommendations from the US Department of State data. Using these recommendations would cause an employer with short-term assignees to waste hundreds to thousands of dollars per assignee per month, even if you compare to the “High” price level in Mercer’s range. So much for cost-effectiveness!

As multinationals increase their reliance on short-term assignees to reach their business goals, they should also increase their vigilance in ensuring that those assignees are provided living expenses based on realistic assumptions. Use of accurate and flexible per diem assumptions will not only be fair to assignees but will benefit employers’ bottom lines.

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Key considerations when structuring short-term packages

Short-term international assignments have many tricky nuances from immigration, employment law, payroll, tax, and other related perspectives. Management of these types of assignments has become a major challenge for many companies, as different departments and business units frequently initiate them. Assumptions that sometimes are made with respect to the nature and duration of a short-term assignment, as well as the taxation, immigration, and other issues surrounding the assignment, can get an employer and the employee into difficulties.

This first article focuses on why short-term assignments are growing in popularity and how companies are structuring packages. 

Today it is no longer surprising to find that an executive of a global organisation has had some experience working in a country outside of their head office, as many employers consider international experience to be desirable for career progression. Likewise, many employees now consider international assignments an important ticket to get stamped to improve their career prospects.

However, mobility barriers remain a challenge for employers with many employees reluctant to accept a long-term international assignment. Besides the growth of the two-career family and social/family concerns of an employee, one of the main difficulties in attracting the right calibre of candidate to accept an international assignment is an individual’s unwillingness to go to ‘non-family friendly’ locations or territories perceived as risky.

For both employer and employee, short-term assignments fulfil many of the criteria demanded by our 21st century lifestyles: flexibility, variety, immediacy and minimal family disruption. Research shows that use of short-term assignments, which typically last from three to 12 months, has risen considerably over the past decade with short-term assignees making up over 20 percent of companies’ internationally mobile workforces. 

Their rise in popularity is due to a few factors, including changing workforce demographics, the need to plug skills gaps and accelerate the development of employees with leadership potential, increased focus on costs and as a means to overcome mobility barriers.

How do companies structure packages?

Employees normally remain on their home compensation and benefits plans while on assignment and continue to be paid through their usual payroll. There is, however, a wide range of practices between companies in the level of living allowances, types of incentives, and even the number of times they will pay for trips home for employees to visit their families.

Daily living expenses

Provision of daily living expenses is an area where companies use many different approaches. Expenses include not only accommodation but also often meals, transport, laundry, etc. This means lots of individual claims to audit and process. The most popular approach is to establish one fixed daily allowance to cover the cost of food, transport and incidentals for all short-term assignees at the same location (almost 70 per cent of companies). However, nearly 20 per cent of companies report that they reimburse actual day-to-day living expenses for their assignees. What is the most effective approach? That depends on the number and type of short-term assignees that a company is trying to manage.

Several participants apply more than one approach to cover costs, taking into account variables such as the type of accommodation, length of assignment etc.

Source: ECA’s Managing Variety in International Mobility survey

For instance, a company with 25 international assignees may pay approximately four bills per day per assignee. If the company reimburses the assignees directly, that's a total of 3,000 expense claims per month for short-term assignees alone. Even assuming some of these claims would be combined on a single expense form with other expenses, the numbers are still significant, and so is the administration necessary to audit, process, pay, report and store the expense reports.

A possible solution to reduce the volume of claims processed is to pay a fixed daily cash allowance either in the form of a short-term allowance or a per diem instead. The allowance or per diem can then be paid through the payroll, requiring only an instruction at the appropriate time to start and stop payment.

In addition to reducing administration, paying an allowance or per diem changes an unknown, unlimited cost into a known fixed cost. And if that's not reason enough, it is an environmentally friendly approach as an allowance encourages assignees not to be wasteful since they aren't being reimbursed for unlimited costs but must work to a budget.

A short-term allowance or per diem also saves assignees time as they do not have to keep receipts for even the smallest of expenses incurred and fill out multiple expense forms in the first few weeks in the host location when they should be concentrating on settling into a new job.

It should be noted that depending on the expense item and the tax jurisdiction, there may be tax implications associated with paying a short-term allowance or per diem rather than reimbursing an actual cost. Any administrative savings gained by paying an allowance need to be compared against possible increases in the associated tax burden.

According to ECA’s research, less than 50 per cent of companies say that they provide mobility incentives for short-term assignments (which typically run from 10 per cent to 15 per cent of the monthly base salary), whereas this mobility allowance is commonly paid for long-term assignments (62 per cent of companies using the home-based approach). Companies electing to pay the allowance specify that financial incentives can help encourage employees to accept an international assignment to more challenging or difficult locations or short-term assignments with strategic or high-risk objectives.  Others cite the use of this allowance to compensate for the inconveniences and costs incurred by family separation.

The issue of location (hardship) allowances follows a similar pattern to mobility incentives. Consistency with long-term assignees working at the same location is the main reason nearly half the companies also pay location allowances to short-term assignees. The other 50 per cent of companies will usually argue that, as short-term assignees normally leave their families at home, they are far less exposed to ‘hardship factors’ than assignees who have their families living with them at the host location. Conversely, the payment of a location allowance is more prevalent with companies in the construction, civil engineering, mineral and mining, non-profit, oil and gas and telecommunications sectors with the number of companies providing this allowance increasing to over two thirds. 

Employees undertaking short-term assignments are rarely accompanied by their partner and/or family, who often opt to stay at home because of the shorter nature of the assignment. This leads to a wide variation in practice relating to trips home and it is surprising, given that this is a critical policy issue, that many companies do not appear to have clear guidelines in place.

Typically, companies permit one company-funded trip home every 12 weeks for employees whose families have remained at home. However, some companies allow the partner to visit the assignee in the host country in lieu of the assignee returning home. Others have a less structured approach towards home leave trips whereby some short-term assignments are treated more like commuting arrangements. When this is the case, the family stay behind and the employee travels home regularly, perhaps on weekends or for a full week once every month or two. Inexpensive flights and short distances make spending weekends at home feasible. Hence, the line separating a short-term assignment from a commuting one is becoming increasing blurred and costly, as assignees request more frequent travel back home to overcome mobility barriers caused by personal or family circumstances.

We will share more ideas about the compliance challenges involved with short-term assignments in our next article.

Our Consultancy & Advisory team can help you design or review existing policies , as well as calculate weekly or monthly allowances for your short-term international assignees.

ECA's Short-term Allowance Calculator provides a choice of regional bases on which to create consistent allowances in the host location, whatever the nationality of the assignee. Find out more about the Short-term Allowance Calculator here  or request a demo .

If you haven't already done so, read the next two articles of our three-part series on short-term international assignments:

• Compliance challenges involved with short-term assignments
• Short-term international assignments: how to achieve consistency