ITX Insights - February 2025
Are GEC trends changing?? Preparing for the next GEC survey
In Q2 of this year, ITX will launch its 2025 GEC survey, to explore the latest trends and practices specific to organizations that use GECs.? These surveys are conducted every 2 years, and provide interesting and useful insights on emerging trends in terms of how GECs are used, where they are located, and the value they deliver to the organization.
The last GEC survey, released in May 2023 and based on input from 32 organizations, revealed that Switzerland and Singapore are the most preferred locations for GECs, accounting for 79% of the responses. Other notable locations include the United States, United Kingdom, United Arab Emirates, Luxembourg, Netherlands, and Hong Kong. The choice of location for these participants was influenced by factors such as tax treaties, social security agreements, employment law flexibility, currency stability, and infrastructure.
In terms of the volume of assignees employed and managed by the GECs, the survey found that the feasibility of a GEC is influenced more by the number of home and host country combinations, rather than the overall size of the expatriate workforce. The median number of GEC assignees, across all participants, was 158.
The survey also helped to dispel the common myth that all international assignees need to be employed by a GEC, if there is one.? In fact, only 39% of participants employ all their long-term assignees through the GEC, whereas 75% use them to manage third-country nationals (TCNs), global nomads (64%), and senior executives (61%).
A notable finding was the reliance on third-party service providers for technology support. Around 42% of organizations use service providers for technology enablement, while another 42% either use general HRIS tools, standalone payroll tools, or lack a comprehensive system altogether. The survey suggests that technology integration remains an area of improvement for many organizations, with co-sourcing being a pragmatic and scalable solution.
In terms of the value delivered by the GEC, most respondents reported significant advantages in governance, compliance, cost management, and employee experience.? More specifically:
Despite these benefits, organizations also reported some challenges and concerns, although these were cited by less than 50% of the respondents.? The most common concerns were:
Other concerns reported by a minority of respondents included management buy-in, social security issues, maintaining home country employment relationships, and managing an international payroll.
Looking ahead, the survey suggests that GECs will play an increasingly important role in global mobility strategies.? 50% of respondents expected to increase the number of assignees in their GEC over the next five years, and another 29% anticipated maintaining current levels. Only 11% foresaw a decrease in GEC utilization.
In summary, the 2023 ITX GEC Survey underscored the growing role of GECs in facilitating international workforce mobility, and their contribution to streamlined governance, compliance, and cost control, making them an attractive solution for managing globally mobile talent. However, challenges related to cost, service continuity, and technology integration remain areas for improvement.
Since the release of the 2023 survey, and in particular after the end of the COVID-19 pandemic, ITX has witnessed an overall increase in the number of organizations establishing GECs, or conducting Feasibility Studies. At the same time, many organizations that already have a GEC are planning to expand and maximize their usage.
It is clear, therefore, that GECs will continue to evolve, and that companies seeking to optimize their global mobility strategies should focus on agility, scalability, and technological advancements to maximize the value of their GEC structures.
If you wish to discuss whether a GEC could potentially work in your organization, or how to optimize the ROI of an existing GEC, please feel free to reach out to an ITX consultant for a free consultation.
Dispelling the Myth: The hidden cost of a delayed GEC implementation
The decision to implement, or not to implement, a Global Employment Company (GEC) is highly consequential, requiring careful evaluation and strategic foresight. Conducting a thorough Feasibility Study is critical, as previously discussed in our newsletters.
A well-structured Business Case for a GEC will typically outline clear expectations for ROI, which are usually expressed in terms of improvements in compliance, efficiency, cost management, employee engagement, or a combination of the above. Given these anticipated advantages, any delay in implementation directly translates to delayed benefits and increased opportunity costs. In practical terms, an extended timeline means postponed compliance enhancements, prolonged inefficiencies, and deferred cost savings.
Once the decision to implement a GEC has been made, organizations may be tempted to proceed exclusively with in-house resources. While this may appear to be a cost-effective approach, there are significant pitfalls that can delay implementation and hence reduce the potential return on investment (ROI).
Internal teams are often already committed to full-time roles, making it difficult to allocate sufficient time to a complex GEC implementation. Balancing existing responsibilities with new demands can lead to inefficiencies and slow progress. Additionally, in-house teams may lack the full spectrum of specialized knowledge and experience, whereas a reputable service provider can bring expertise gained from various team members, and years of experience of working with multiple organizations on similar projects.
If an organization chooses to recruit additional staff for the GEC implementation project, the recruitment and onboarding process will extend the timeline even further. Training new employees on the intricacies of international employment structures also requires additional time and resources. Furthermore, establishing critical infrastructure, such as an international payroll system, demands careful selection, procurement, installation, and testing, all of which can add further delays. Internal IT teams may not always have the expertise to integrate GEC-specific technology efficiently, prolonging deployment cycles.
While case studies vary, industry experience suggests that a fully in-house GEC implementation could double, or even triple, the implementation timeline, compared to one that leverages external expertise.
In summary, leveraging external resources and expertise enables organizations to accelerate the design, implementation, and operation of their GEC while managing risks, avoiding pitfalls, and allowing internal teams to focus on strategic decision-making. External providers may also provide quick and scalable access to the necessary payroll and HR technology tools, bypassing lengthy procurement and implementation processes. This rapid access to best practices, proven methodologies, technology tools, and reduced internal disruptions, all contribute to a significantly shorter implementation timeline, and a faster realization of the benefits of their GEC.
If you wish to explore and compare approaches and timelines for a GEC implementation, please feel free to reach out to an ITX consultant for a free consultation.
Learning Corner: Bridging the GEC Knowledge Gap
As organizations continue to navigate the complexities of global talent mobility, Global Employment Companies (GECs) continue to emerge as a strategic solution with the potential to deliver many benefits, if properly designed and operated. However, despite their advantages, there are still companies that have yet to evaluate the potential benefits of adopting this model. To better understand the level of awareness, perceptions, and barriers to GEC adoption, ITX conducted an in-depth survey targeting organizations that do not currently use a GEC. The results offer valuable insights into the challenges and opportunities surrounding the wider adoption of GECs.
Released in August 2024, the ITX GEC Market Awareness Survey gathered responses from 100 participants, primarily HR professionals (98%), with 82% specializing in Global Mobility. The majority of respondents held senior positions, such as Management and Director roles, and represented a diverse range of industries. The survey aimed to assess familiarity with GECs, perceptions of their value, and key organizational challenges to implementation.
The survey findings reveal that a key obstacle to GEC adoption is a generally low awareness of GECs, even among Global Mobility professionals. in fact, 30% of the respondents reported being unfamiliar with GECs (13% had never heard of them, while 17% had heard the term but did not understand the concept), while another 30% claimed to have only a superficial understanding.? By contrast, 27% of survey participants had a good grasp of what GECs are and how they function, and another 13% had detailed knowledge or direct experience with a GEC model.
It can be safely assumed that organizations that have low familiarity with the concept and benefits of GECs are unlikely to prioritize it as a strategic initiative.
The key factors driving the perceptions of GECs (whether positive or negative) were Operational Efficiency, Compliance, Risk Management, and ROI. Among the survey respondents who had some awareness of GECs, only 4% reported having a negative perception, whereas 45% had a positive or very positive perception, and 51% had an overall neutral perception of GECs (there were no respondents who reported a “very negative” perception). A deeper analysis showed that organizations with higher levels of familiarity with GECs have a more positive view, suggesting that education and awareness could help shift perceptions in favour of adoption.
While perceptions of GECs were overall not negative, the survey identified other common barriers to implementing a GEC.? The most common challenge was found to be a focus on other priorities.? A deep-dive into these competing priorities revealed that these organizations are focusing on:
Also, according to survey respondents, in order to be deemed a “priority project”, GECs should deliver improvements in compliance, risk management, and efficiency.
Interestingly, many of these priorities align perfectly with the advantages that GECs are designed to provide, namely, efficiency, compliance, and cost control. This suggests that a GEC could actually support these priorities rather than compete with them.? The real challenge seems to be a general lack of understanding of how GECs could contribute to these strategic objectives.
In conclusion, the 2024 survey highlights an urgent need to bridge a knowledge gap regarding GECs. Increased understanding generally leads to more positive perceptions and a greater willingness to explore implementation. GECs should be perceived and evaluated as a possible solution, rather than a distraction, and organizations that prioritize efficiency, compliance, and cost control would benefit from learning how a well-designed GEC can directly support these goals.
By increasing their understanding of GECs, companies can make informed decisions about whether a GEC is the right fit for their global workforce strategy.
ITX News:
ITX at the WERC Talent Mobility Workshop in Singapore – February 10 and 11, 2025
ITX was delighted to participate in the Talent Mobility Leaders event in Singapore on February 10-11, 2025, hosted by Worldwide ERC and KPMG. This exclusive workshop brought together corporate talent mobility leaders for insightful discussions, interactive exercises, and focused learning sessions. Participants gained valuable skills in building strong business cases and leading with confidence.
As part of the event, ITX delivered a presentation on Global Employment Companies (GECs), providing a comprehensive overview of the concept, key benefits, challenges, and essential steps for successful implementation.
We sincerely appreciate Worldwide ERC and KPMG for organizing this impactful event and enjoyed connecting with industry professionals to explore innovative talent mobility strategies.
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ITX Engages with Magellan Institute Students in Singapore – February 4, 2025
On February 4, 2025, ITX had the privilege of delivering two presentations to the students of the Magellan Institute during their Learning Expedition in Singapore. We spent an engaging and thought-provoking afternoon discussing key trends in Global Mobility and taking a deep dive into the role of Global Employment Companies (GECs).
The Magellan Institute is a specialized HR training organization offering MBAs, continuing education programs, and certifications in Global Compensation & Benefits and International HR Management. For 28 years, it has prepared HR professionals and executives for leadership roles in international organizations, supporting their career development.
ITX greatly value its collaboration with the Magellan Institute, Having presented these lectures for several years, each session remains a unique learning experience. The students’ curiosity, fresh perspectives, and insightful questions continue to reaffirming our confidence in the next generation of Global Mobility leaders.
A heartfelt thanks to the Magellan Institute for this opportunity. ITX wishes the students the very best in their studies and looks forward to seeing their careers flourish in the years to come.
Meet ITX at the FEM European Global Mobility Conference
If you are attending the Forum for Expatriate Management (FEM) European Global Mobility Conference in Amsterdam on 7th March 2025, we would love to meet you. Schedule a conversation with Ms. Emilie Rulland, Chief Legal Officer and Chief International Mobility Consulting Officer, and Mr. Simon Davies, Client Strategy Director for Europe, as they represent ITX at this prestigious event. Their expertise in international mobility, legal compliance, and strategic workforce planning makes them invaluable resources for companies looking to navigate the complexities of cross-border employment in Europe.
The global mobility landscape in Europe is evolving rapidly, shaped by shifting economic conditions, geopolitical uncertainties, and ongoing regulatory changes. For Global Mobility professionals, staying ahead of these developments is more critical than ever. That’s why ITX is delighted to participate in the upcoming FEM European Global Mobility Conference, a premier gathering of industry leaders, innovators, and decision-makers.
Stay ahead of the curve—see you at the conference!
ITX to Present at Magellan Network Plenary Meeting – March 13, 2025
ITX is pleased to announce that Ms. Emilie Rulland, Chief Legal Officer and Chief International Mobility Consulting Officer, will be delivering a presentation at the upcoming Plenary Meeting of the Magellan Network (Cercle Magellan) on March 13, 2025.
Ms. Rulland will speak on the topic: “Intra-group mobility: What Are the Key Levers for Reducing and Optimizing Costs?” Her presentation will provide valuable insights into cost-effective strategies for managing international employee mobility within corporate groups. She will explore practical approaches to streamlining mobility programs, minimizing financial burdens, and ensuring compliance while maintaining operational efficiency.
This session will be a great opportunity for global mobility professionals to gain expert perspectives on optimizing costs in an increasingly complex international landscape. As businesses continue to navigate economic pressures and evolving workforce dynamics, mastering cost-efficient mobility solutions is more critical than ever.
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ITX to Launch 2025 GEC Survey in early 2025
ITX is set to launch its highly anticipated 2025 Global Employment Company (GEC) Survey in the first half of this year, inviting organizations that operate a GEC model to take part. Conducted every two years, this exclusive survey offers valuable insights into the latest trends and best practices within the GEC framework.
The 2025 survey will explore how organizations are leveraging the GEC model, highlighting key priorities, challenges, and future outlooks. It will also examine how GECs are evolving in response to shifts in the global workforce, advancements in technology, and changes in talent mobility.
Participating organizations will gain access to critical benchmarks and data, helping them make informed strategic decisions and optimize their GEC operations. The insights gathered will provide a clearer understanding of emerging trends and the evolving needs of the global workforce.
We encourage all organizations utilizing a GEC model to express their interest in participating as soon as possible. Don’t miss the opportunity to contribute to and benefit from the findings of this comprehensive survey. Stay tuned for further updates as we prepare for the survey launch!
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