When remote work crosses borders, short-term arrangements remain the most common approved type 3 27% HR 33% Global Mobility Tax 21% Finance 6% We don’t allow for international remote working 6% Undecided 4% Other 4% Most of the respondents indicated their company allows for remote working within country borders (73 percent). When it comes to cross-border remote working, shortterm arrangements remain the most common type, with
over half of the respondents (52 percent) considering or implementing temporary arrangements of up to 90 days per year. Around 20 percent of respondents are considering hiring abroad or facilitating virtual assignments. Longer-term international remote work arrangements of more than 90 days continue to be least common. The focus on short-term
arrangements for cross-border remote working allows companies to offer a larger degree of location flexibility to employees while minimizing compliance risks and administrative efforts required. In practice, it is not uncommon for organizations to first introduce policies allowing employees to work for a limited time (often between 10 and 40 days), predominantly from a
vacation destination or family and friends
subject to certain conditions and requirements. At the same time, the longterm and permanent remote work arrangements continue to be enabled mostly on a case-by-case basis due to the administrative complexities and associated compliance requirements. According to the latest study, most companies (82 percent) identify tax and legal compliance as their biggest challenge when it comes to implementing remote working. Similarly, 65 percent of companies
cite managing the risks associated with creating a permanent establishment, while 26 percent mention immigration restrictions as the main hurdle. Aside from compliance-related challenges, respondents also identified challenges relating to implementing and administering a remote work program itself. These include establishing robust processes and governance
(43 percent), tracking days spent abroad, (30 percent), and ensuring clear communication of guardrails and policies. The results show that compliance challenges remain a major concern for companies to introduce cross-border remote working. In the last three years, regulators and authorities have made progress in enhancing transparency and facilitating remote
practices Examples include the introduction
of international remote work visas, as well as EU initiatives to establish consistent rulings for cross-border workers. However, further progress is still needed to gain a unified view of how both local and international authorities approach compliance relating to remote working. In the meantime, organizations need to continue to develop and enhance their strategies to
minimize risk exposure, stay updated on developments and engage with authorities to support local policy decisions.In light of the continued compliance challenges, the question remains: what measures are being introduced to effectively manage the associated risks? The majority of respondents (59 percent) conduct case-by-case assessments, while almost half (46 percent) have introduced policy limitations to set clear guardrails that at least partially reduce
the need for individual case assessments. Some companies use specialized tools to track remote work requests (16 percent) or run automated risk assessments (6 percent). The results show that most organizations currently rely on manual processes for managing their remote working programs. Only a small number with more advanced programs have
implemented technology-based
or automated solutions. This is not entirely surprising as the level of process automation will vary from one organization to the next. Each company trying to answer the question of whether to implement technology will need to evaluate factors such as the number of cases they experience, the degree of program standardization and the level of complexity
embedded within their processes. In addition, the current IT-landscape and the extent to which technology is already deployed in the organization play an important role in companies’ decision to adopt a technological solution for remote working. Some organizations are leveraging existing software or low code solutions to automate parts of the remote work
request process, such as standardized request forms. However, we are seeing an increasing number looking at specifically designed remote work solutions. This is driven by the increasing complexity of tracking cross-border travel and remote work together along with the complexities of remote work management. For example, the need to consider multiple layers
Conclusion
of approvals and ensure employee validation post travel within a single platform.When we asked the participants about their top priorities in the coming months, the majority expressed their willingness to focus on implementing governance and processes for international remote working. Additionally, a third of participants (33 percent) are planning to introduce formalized policies. More than 60 percent of participants prioritize updating and expanding their existing
programs. This includes focusing on different types of remote working (31 percent) or reviewing and updating existing policies (31 percent). Around 20 percent of participants are seeking to automate their processes or implement a technology-based solution. The results illustrate the different program maturity levels of companies today: some are preparing to introduce governance and programs, while others are already expanding or reviewing their
existing policies. In addition, the findings indicate a dynamic development of international remote working programs. As the concept is new for many organizations and does not follow a one-size-fits-all approach, companies test and adapt policies and processes along the way. As they learn, programs are adapted in terms of the flexibility provided and new remote work types are introduced to meet the talent and business needs. As the program grows and



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