Working while on a short trip abroad – known by many as a "workation" – has long been an option at many German companies. Our survey of more than 300 companies revealed that an increasing number of employers are developing broader strategies that will enable them to offer their employees the opportunity to work outside Germany on a long-term or even a permanent basis. The practical insights our consultants have acquired through their work with clients flesh out the results.
Skilled labour shortage a driving force
According to the survey, the main reason employers are more frequently turning to long-term and permanent working-from-abroad models is a shortage of skilled labour. Many companies offer flexible solutions in a bid to attract the best and the brightest. These solutions are not mere perks that improve an employee's work/life balance. For many employers, they have become a strategic necessity.
There is often a lack of clear rules and processes
While companies may be eager to offer employees the chance to work from abroad long-term, many run into stumbling blocks, particularly when it comes to compliance, work organisation, HR and corporate culture.
On top of that, many companies still have some work to do to develop the approvals processes for expanded remote working models. According to the survey, many companies lack established processes and policies.
But our experts have observed that in practice, when the various stakeholders throughout the company – including Tax, HR and Business – all pull in the same direction, they are able to significantly minimise costs, administrative effort and legal risks.
Dr. Tobias Preising
Partner, Tax, Global Mobility Services
KPMG AG Wirtschaftsprüfungsgesellschaft
