Short-term work abroad – known to many as workation – has long been established in many German companies. More and more employers are currently developing additional strategies to enable employees to work outside Germany on a long-term or permanent basis. This is shown by the results of our survey of more than 300 participating companies. The results are supplemented by the experiences of our experts from consulting practice.
Skills shortage as a driver
According to the survey, the most important reason for more frequent long-term or permanent work from abroad is the shortage of skilled labour. Many companies are trying to increase their attractiveness as an employer in the battle for the best talent by offering flexible solutions. It is therefore no longer primarily about a "goodie" for employees to improve their work-life balance. Rather, many employers now see these options as a strategic necessity.
There is often a lack of clear regulations and processes
Despite the desire to enable long-term working from abroad, implementation is not yet running smoothly in many companies. In fact, new hurdles are arising, particularly in the areas of compliance, work organisation, HR and corporate culture.
In addition, the authorisation procedures for extended remote working models are not yet fully developed in many companies. According to the survey, many employers point to the lack of established processes and policies.
Our experts emphasise, also based on their practical experience, that if the various stakeholders in the company, including tax, HR and the business, pull in the same direction, costs, administrative effort and legal risks can be significantly minimised.
Dr. Tobias Preising
Partner, Tax, Global Mobility Services
KPMG AG Wirtschaftsprüfungsgesellschaft
