According to a recent study, 74% of global companies now have a global mobility strategy to expand into new geographies and fuel their international growth. It helps them quickly access specialised talent, accelerate market entry and foster innovation through diverse perspectives.
But managing employees across borders, especially in Asia and the Middle East, is easier said than done. Operational roadblocks, complex legal requirements and financial intricacies often make global mobility a challenge for companies.
What further adds to the global mobility hurdles for remote employees in the Middle East and Asia is the complexity of immigration and visas. Securing the right visas for employees is crucial. Now, if you think global mobility is just about securing the right visas, you are mistaken. Employers also need to ensure that employees follow all local immigration laws of the country they are moving to. This requires a deep understanding of the local rules and regulations across multiple countries. In addition, employers need to stay abreast of the ongoing regulatory changes happening in other countries.
Let's look at the global mobility compliance issues for multinational firms in Asia and the Middle East.
Common Challenges in Global Mobility
Strict work permit criteria
Relocating an employee to a foreign jurisdiction requires the necessary visas or work permits. Every country has their own immigration and visa policy. Some counties can have more complex policies than others. For example, Japan requires you to abide by strict work visa requirements, such as holding a bachelor's degree or 10+ years of relevant work experience, a valid employment contract, and a Certificate of Eligibility (COE) from Japan's Immigration Bureau.
Therefore, companies are advised to thoroughly research and comprehend the regulations governing work visas and permits.
Bureaucratic paperwork
Sending employees abroad for work can be challenging for employers, as it involves significant bureaucratic paperwork and formalities. Companies need to maintain proper records to support compliance with the local laws and regulations, especially pertaining to employment-related tax obligations and corporate tax laws.
Lengthy processing times
The complexity of getting work permits and visa, administrative burden, and ensuring legal compliance in a foreign country often leads to delays and difficulties. Counties like Saudi Arabia, UAE, Qatar, and Singapore receive high volumes of applications for certain work permits and visas, which further extend the wait times. The delay often leads to business disruption and increased costs for companies.
Pro tip: Companies are advised to apply for the work visa on time to avoid delays and difficulties. Some countries also offer fast-tracked visa programs that can be explored to reduce wait times. For example, Singapore's e-visa is often issued in 3 to 5 working days and the UAE's Umm Al Quwain Free Trade Zone offers 24-hour urgent visa services.
Quota systems
Relocating the workforce across different territories requires careful consideration of territory-specific protectionism policies such as fair hiring practices and quota systems. Different countries have different criteria, which makes the process complex. For example, Saudi Arabia and Oman require local sponsorship and have nationality quotas. Qatar's new Qatarization law mandates private-sector hiring of nationals. Likewise, Singapore has caps and qualification frameworks for work passes. For the Employment Pass, the professionals need to earn a minimum $5000/month and pass the Complementarity Assessment Framework (COMPASS). For S Pass, skilled workers need to earn a minimum $3300/month.
However, despite localization, some regions give priority to skilled foreign professionals. For example, the Middle East's targeted visas like Saudi Arabia's Premium Residency, UAE's Blue Visa for sustainability experts, etc. fill critical skill gaps in AI and green sectors. Likewise, Bahrain's Golden Residency visa is available for finance and information technology professionals.
Taxation and payroll complexity
When working with an international workforce, companies need to manage cross-border payroll and taxation, which requires a thorough knowledge of tax rules, labour regulations and social security obligations to avoid double taxation or compliance issues. Failure on this part can lead to legal issues, fines and penalties.
Global Mobility Feels Challenging?
Dealing with strict legal requirements, payroll headaches, tax complexities and complex relocations might feel overwhelming for companies. If your company also finds global mobility challenges difficult to navigate, the good news is – there is a solution.
You can reach out to experienced global mobility consultants to create an effective global mobility program that helps your business grow internationally and keeps your employees satisfied. Working with global mobility consultants also makes the entire process easier, smoother and faster.
Streamline your Global Mobility with IMC Group
IMC Group helps companies manage their international moves across Asia and the Middle East. We support your market expansion needs with careful planning and deep market expertise. Our team can handle your visa and immigration requirements and manage international employee relocations smoothly and compliantly.
We manage everything, from paperwork to applications and compliance, so you can focus on your company's growth without worrying about the administrative burdens or compliance risks.
Get in touch with us now to effectively manage your global talent mobility!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
