As more companies expand into global markets, HR professionals are tasked with the challenge of preparing employees for foreign assignments. The international workforce has quickly become the norm and with this age of mobility well underway, the need for recognizing and addressing the challenges employees face when relocating has never been greater.
Before relocating staff overseas, employers often consider housing, visas, health care, travel and schooling for children. Whilst these are vital to a successful relocation, whether it be for a year or a five year assignment, newfound expatriates are often surprised at how difficult it is to establish a bank account and credit abroad.
Transatlantic commuting can be expensive, so having easy access to capital is vital. Below are ways that HR professionals can help financially prepare employees for the global commute:
Bank Accounts that Operate Across Borders
The process of opening a foreign bank account is complicated. To help alleviate some of this stress for employees, HR professionals should consider international bank account options as part of relocation packages. These accounts can assist the employee in making rent or mortgage payments back home and easily transferring money to family and dependents that stay behind.
When operating across the Atlantic, look for an account that can be set up prior to departure and offers the option to have multiple currency accounts. This will allow for money to be transferred seamlessly at a low transfer rate without conversion fees and let employees who jet set between different countries to have immediate access to local funds.
Tailoring a relocation package that considers all the factors will let staff know that the company is with them every step of their journey and allow them to concentrate on the more important things, like settling into their new home.
Credit Cards
Using local accounts and credit cards abroad can be complicated and costly when paying conversion fees. However, without locally established credit in the new country, many expatriates are given low limits on their cards. This can make relocation purchases, such as furniture and appliances, especially difficult.
To make life a little easier, ensure that the employee has a credit card that is accepted worldwide. When considering a loan, choose one that offers a competitive interest rate, a suitable repayment period and won't charge for early repayments.
International Housing
An international mortgage service can also be designed to take the worry away from securing finance and make buying an investment property (including buy-to-lease) or a holiday home in another country as simple as possible for employees. Look for a financial institution that can lend in a range of currencies and countries, offers a free pre-approved advance credit line service, no early repayment penalties and has a re-mortgage/equity release option.
By combining an international mortgage with a company that also offers international accounts, foreign exchange rates can be avoided when making mortgage payments or refinancing the home left behind whilst abroad.
Chris Gardiner is the Associate Director for Lloyds TSB Offshore Limited for the Northeast region of the United States. Chris is an integral part of the leadership team responsible for growing the Lloyds TSB brand in U.S. Chris oversees sales teams that assist customers with international currency accounts. Lloyds TSB Offshore Limited, a subsidiary of United Kingdom-based Lloyds TSB Bank PLC, has opened three offices in Los Angeles, Miami and Stamford, Connecticut. For more information, please visit: www.lloydstsb-offshore.com/international.