The World of Work Report published by Axa over the summer offered some interesting insights into overseas working habits.
What does an international business need to succeed?
Firstly, out of the 250 companies surveyed, 98% thought that a mobile, multinational workforce was crucial to the development of a business.
Secondly, the report highlighted a clear shift towards employees taking shorter international posts of up to one year, and more people commuting to an overseas location rather than uprooting their lives to commit to a new location outright.
What impact does Brexit have on UK businesses?
The fact that the UK is set to leave the European Union might make the latter option of commuting even more appealing in the future, depending on the working visa, and residency situation that Brits could potentially face in Europe.
What to consider when relocating employees
Whether your employees are relocating, or commuting across international borders for work, there are a number of incentives that firms can use to entice key talent to make the move. One obvious example is that many employers offer fair remuneration for the upheaval of moving overseas. One factor that employers might have overlooked however, is offering provisions for the foreign exchange impact of working or commuting overseas.
Paying employees in sterling or local currency
For those employees relocating abroad, they might be paid in either sterling or the currency of their adopted overseas place of work. Avoiding the impact of currencies is difficult. If an employee working overseas but is being remunerated in sterling, then their daily living costs are subject to currency movements. And for those being paid in a non-sterling currency, honouring existing financial interests back in the UK also comes with currency risk. For example, if a UK-based firm sends a member of staff to work in the US, they may pay their employee’s wages in dollars. This will mean that the employee doesn’t have to incur the cost and effort of converting salary in order to pay rent and other local living costs. However, the employee might be renting out a property or paying a mortgage in the UK while working in the US.
Impact of fluctuating exchange rates
The uncertainties of notoriously fluctuating exchange rates can have a big impact on an employee’s net take-home pay. It is not just the market exchange rate that needs to be considered either, but the rate offered by different foreign exchange providers - which can vary dramatically. Giving your employees access to a foreign exchange specialist could be a good way for firms to take the headache of dealing with currency differentials and sending money across borders, as well as ensuring that their employees are getting access to competitive rates and guidance.
Why you should offer employees foreign exchange services
Telegraph Media Group International Money Transfer, managed by foreign exchange experts moneycorp, could be a good solution to offer employees.
Better exchange rates
Your employees get the assurance that they receive great exchange rates and low transfer fees. While banks might charge up to –£40 every time a transfer is made, we have zero transfer fees.
Currency exchange guidance
One key benefit of the service though, is the guidance they get access to. Your employees can receive guidance from a personal account manager on currency market ups and downs, and how to protect their income against the possibility of exchange rate movements using currency market tools such as ‘forward contracts’ - whereby they can fix a prevailing exchange rate even if they don’t need to make a transfer until down the line (note: may require a deposit).
With their own online account, your employees can also buy or sell currency, carry out transfers and manage payments from a computer or mobile device. Furthermore, moneycorp’s Regular Payment Plan means setting up repeat payments at any interval, whether weekly, monthly - or even irregularly - useful for settling regular costs associated with property, for example.
Ensure your international employees get great exchange rates with Telegraph Media Group International Business Money Transfers
moneycorp is a trading name of TTT Moneycorp Ltd which is authorised by the Financial Conduct Authority under the Payment Service Regulations 2017 (reference number 308919) for the provision of payment services.
The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.
Information correct at date of publication.