International Human Talent and Global Mobility

Posted on Mar 12, 2025 in Business Administration and Management (BAM)

International Human Talent

International Human Talent: Taxation can play a significant role in an individual’s decision to live in a country or relocate. Portugal has implemented several programs to attract foreign residents. The most well-known is the Non-Habitual Resident (NHR) tax regime, but there’s also the “Regressar” program for returning Portuguese citizens, double taxation agreements, and special statuses for diplomatic missions and international organizations. Taxation and Social Security can significantly influence a company’s or country’s ability to attract talent. For instance, companies in Madeira benefit from a 5% corporate income tax rate for specific activities like international commerce.

Support Services for INL Workers

The support service for INL workers includes:

  • Free individual consultancy (1 hour) with a specialized lawyer
  • Meeting at INL for newcomers
  • Workshops at INL about tax, social security, and other relevant topics
  • Written guidelines for INLers
  • Consultancy on a personal basis (not sponsored by INL)

This is a good example of an institution that strives to assist its workers with these matters and benefits from a special tax regime. The trend indicates that more and more people will require assistance with international labor and tax issues.

Components of Global Labor Mobility (GLM)

  • Parent-country nationals (PCNs): For example, a US company hires from Hawaii.
  • Host-country nationals (HCNs): For example, a Portuguese company hires from Portugal.
  • Third-country nationals (TCNs): For example, a Portuguese company hires from Spain.

Types of International Employees

Multinational enterprises (MNEs) employ various types of international employees:

  • Domestic internationalists: Employees who frequently interact with people in other countries (via email) but remain in their home country.
  • International commuters: Individuals who live in their home countries but regularly commute to specific foreign locations for work.
  • Employees on long-term business trips: Individuals who take international trips lasting a few weeks or months.
  • Permanent transfers: Individuals who transition from a temporary assignment to permanent local status.
  • Just-in-time employees: Recruited internally or externally, these individuals are contracted only for the duration of a specific assignment.
  • “Reward” or “punishment” assignees: Individuals nearing retirement who are sent on a desirable foreign assignment to conclude their careers.
  • Outsourced employees: Individuals or groups of employees whose services are contracted from another company.
  • Individuals on self-initiated foreign work experience (SFE): Individuals who travel abroad and seek work as they travel.
  • Retirees: Individuals who may be willing to accept short-term foreign assignments with reduced compensation packages.
  • Virtual IEs: Individuals who perform work across borders via electronic media.

Selection Case: Sales Manager

This section details the selection of a candidate for a sales manager position. The candidate must have responsibilities such as:

  • Establishing and maintaining communication with key stakeholders (customers and internal teams).
  • Sharing market experience and best practices with the customer.
  • Increasing sales while maximizing customer satisfaction.

Candidates must demonstrate:

  • Maturity
  • Capacity to build and nurture new relationships within client organizations.
  • Consistently deliver the highest level of customer satisfaction.
  • Hands-on skills and team leadership experience.
  • Good interpersonal skills.

Requirements:

  • Fluent English with excellent communication and marketing skills.
  • Ability to communicate in foreign languages.
  • Willingness to travel to other countries and participate in international fairs.
  • Possession of a favorable outlook: Autodidact and/or quick learner.
  • Appropriate personal characteristics: Experience in sales and ability to manage multiple clients.
  • Adaptability.

Candidates will be evaluated through interviews and written tests.

Major Criteria Used for Selecting International Assignees (IAs)

The main criteria are based on suitability for work. Most companies base their choices for international assignments on:

  • Technical knowledge of candidates.
  • Cultural suitability.
  • Desire for an assignment abroad, including the candidate’s family.
  • Profiles of successful international assignees, such as extensive experience.

Characteristics of a Successful IA

  • Increased employee compensation, bonus, and non-cash benefits.
  • Reentry outplacement.
  • Tax equalization for second income.
  • Incentive payments.

Best Practices:

  • Involve HR in global strategic planning.
  • Train home office staff well in dealing with international assignees.
  • Provide adequate lead time for relocation.
  • Involve spouse/partner/family at the outset of the expatriation process and provide language and cultural training.
  • Provide a pre-assignment site visit for the whole family.

Key Imperatives for Global Organizational Learning and Training

  1. Think and act globally.
  2. Become an equidistant global learning organization.
  3. Empower teams to create a global future.
  4. Make learning a core competence for the global organization.
  5. Regularly reinvent yourself and the global organization.
  6. Develop global leadership skills.
  7. Focus on the global system.

Training Competencies

Comprehensive training should focus on these competencies:

  • Cognitive competency: Acquiring knowledge and facts about cultures, including history, politics, business practices, etc.
  • Performance competency: Performing well in assigned business or organizational tasks in another culture, including technical and managerial skills.
  • Behavioral competency: Adapting to diverse conditions, communicating in other cultures, scanning the country environment, and demonstrating strong interpersonal skills.

Training and Preparation Considerations

  • Intercultural business skills
  • Lifestyle adjustment
  • Area studies
  • Local customs and etiquette
  • Language learning strategies
  • Repatriation planning
  • Culture shock management

Preparation Program Components

  • A pre-visit to the new site.
  • Language training.
  • In-company counseling on issues such as taxes.
  • Intensive area study.
  • Country-specific handbooks.

Global Managerial Competencies

Fundamental, Essential, Visionary

Global Trends in Training and Development

  • Training will continue to be highly valued for building skills.
  • Soft skills training, including cultural training and customer relations, will grow in importance.
  • Distance learning technologies will become more common.
  • Human capital investment and knowledge management will be central to global business strategy.
  • Training and development are cornerstones of this strategy.
  • Training must respond to the aging and diversification of the workforce.
  • Training systems must become flexible, responding to the needs of a global economy.

Characteristics of Organizations with a Global Mindset

  • Manage global competitiveness.
  • Work and communicate with multiple cultures.
  • Manage global complexity, contradiction, and conflict.
  • Manage organizational adaptability.
  • Manage multicultural teams.
  • Manage uncertainty and chaos.