International Business Travel: New factors in focus

The International Mobility Report 2022 from Aon plc shows that when it comes to international business travel, new factors are in focus: Companies are focusing on re-evaluating business travel. At the top of the list are sustainability, but also Costs and political unrest. At the same time, employee safety and well-being is one of the biggest challenges of international assignments. This means that employers must also be prepared for international talent and establish an international workplace and business policies for them. The report's findings are based on a survey of more than two hundred companies worldwide.

Corona jointly responsible for changes

Ingo Trosiner, Head of International People Mobility at Aon, believes that the Corona pandemic in particular has permanently changed international business travel: "If you look at the current number and also the way companies deal with business travel, you can see that a real reassessment is taking place. In the future, factors such as costs, employee well-being and also the current situation in the country of assignment will determine whether a trip is considered necessary or not. Thus, better decisions can be brought about. This is not to say that business travel will become obsolete, as it adds real value in various areas, but the world after COVID-19 will not be the same.

Gianluca Galli, Broker Health Solutions at Aon adds: "Employers have learned about the benefits of remote working and want to continue offering it. Not least to ensure the best possible work-life balance for their employees and thus create more resilience. At the same time, however, it is necessary for companies not to focus solely on the benefits of working remotely, but to formulate concrete strategies on how to deal with the challenges and legal requirements - and communicate these to their employees in a way they can understand."

International business travel put to the test

After little to no travel in 2020 and the first half of 2021, business travel in Europe picked up again in the second half of 2021. However, a re-evaluation of international travel is taking place on the part of companies: General safety (75 %) and employee well-being (60 %) are the biggest challenges. The ability to work with and guide posted workers (36.2 %) and compliance with laws and regulations (31.9 %) were also frequently cited as key reasons for whether to implement a posting or business trip. CO2 emissions, on the other hand, were in last place with 15 %.

Many employers are now focusing on quality rather than quantity. This means that companies are increasingly looking for local talent, which is why no increase in the number of international assignments is expected. At the same time, international remote work is seen as a solution when talent is in short supply. In 2021, employees in sales (66 %) and management (65 %) in particular went on business trips again. The main focus here was on maintaining relationships and trust through personal contact.

Overarchingly, the return on investment is the top priority: the actual value for a company, the measurable benefit and the ability to demonstrate this benefit to internal stakeholders are considered the most important criteria in the assessment for or against a trip. Another decisive factor is the fact that a business trip always places higher demands on due diligence and preparation, such as compliance with laws and regulations and ensuring the safety and well-being of employees.

Increasing trend toward international remote work

In addition to the challenges already mentioned, international work brings with it many other issues for companies that employers must necessarily address before sending or sending their employees on business trips. These include, for example, regulatory compliance (54.6 %), social security (51.5 %) and taxes (49.5 %). However, 40 % of companies offering international remote work do not have policies in place for this. However, mishandling the issues related to working abroad can have huge consequences.

Previously mentioned reasons often explain the decision of companies to rely on international remote work instead of secondments. Nearly 60 % of employers indicated within the study that remote work is an option within their company. This goes hand in hand with many people's need to be able to work flexibly from anywhere in the world, allowing them to combine leisure and work away from the home office or to be closer to family. Furthermore, remote work can also be a possible solution when it comes to recruiting and retaining much needed talent.

Source: Aon plc