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An extended business traveler (EBT) generallyis defined as an
employee who travels interna-tionally on business on a temporary
basis for aminimum of 10 consecutive days at any one time duringa
one-year period to a given country.
Typically, business line management determines theneed for
employee travel and expenditure for businesstrips. In many
organizations, no distinction existsbetween the travel process and
oversight of an employeetraveling to a location for a week or a
month. Given thattravel expenditures are being processed and
initiallytracked by the companys corporate travel department
orpreferred provider, they are key stakeholders in the
iden-tification of EBTs. The travel function may use a web-based
platform, company intranet, or alternate technolo-
gy for bookings that may or may not be integrated intothe
companys data warehouse. Why should this be aconcern?
Each country has its own governing immigration andtax laws. The
number of days an EBT is physically presentin a given country, the
nature of the work he or she maybe performing, and other criteria
(such as the employeesemploying entity, payroll location, stock
option exercise,etc.) may result in unintended tax and immigration
com-pliance risks for the employer. This lack of
compliancereporting may translate into immigration delays or
denial,employee deportation or legal prosecution, increasedcosts,
audits, and overall, a negative company reputation.Consistent
infractions can even jeopardize a companysability to operate and
conduct business in a country.
EBTsClear and Present Danger
B Y S A R A H D E H A Y E S A N D S O F I A P I R E S
Compliance remains a topic of perpetual importance for mobility
professionals, especially whenextended business travelers are
considered. DeHayes and Pires write that various measures can
beemployed to proactively manage and mitigate the risks associated
with these types of mobileemployees, with technology playing an
integral role in the solution architecture.
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30 MOBILITY/DECEMBER 2011
From immigration caps to financialreform legislation, it can be
challeng-ing for companies to both navigateand remain up-to-date on
criticaloperating procedures and furtherassess the effects on
global mobility.With government coffers runninglow, typical
responses can be feltglobally from protectionism of oneslabor pool,
seizing the opportunity tolevy taxes on capital flow, and bene-fits
scheme changes to a more vigor-ous adherence of laws already
inplace.
Organizationally, we can all sensethe intense scrutiny on costs
at all lev-els in this economic climate. Budgetlimitations
notwithstanding, surpriseexpenditures such as lingering tax
lia-bilities are unwelcome. The distrac-tion of playing catch-up
with internalownership and allocation of theseunanticipated
consequences of EBTsis frustrating at best.
The following is an account ofhow one organization
confrontedthis risky landscape and found a newadministrative design
to addresscompliance and awareness.
Theory in PracticeA multinational organization we
have assisted serviced their globalmobility program via a
regional ser-vice delivery model. They have a largepopulation of
EBTs globally and thismobility type was managed by theglobal
mobility function. The report-ing and management of their EBTswas
inconsistent across regions.
Because of these concerns, thecompany embarked on a journey
tocreate awareness across various levelsand functions of the
organizationthrough education; to proactivelyidentify EBTs prior to
the com-mencement of travel and developstandardized tracking tools
to ensure
consistency throughout its supportstructure.
To achieve these goals, the compa-ny first explored the current
state ofprocedures relative to candidateidentification and
decision-makingcriteria. This was a cross-functionalexercise with
the commitment ofglobal mobility, tax, and corporatetravel. A
dedicated EBT mobilitypolicy and assignment letter werecreated,
distinguishing this popula-tion from a typical business traveleror
a short-term assignee (this policydistinction created instant
awarenessacross the HR community). Policybenefits included
mandatory taxbriefings and immigration coordina-tion. The company
also centralizedthe operations team dedicated toEBTs, resulting in
greater consisten-cy with reporting and tracking.Tools such as
process flows, scripts,and reporting were developed tofacilitate
the workflow.
From a technology perspective, thecompanys intranet was
leveraged topush out information and shareresources. The human
resource infor-mation system (HRIS) was not origi-nally designed to
accommodateEBTs, causing resistance by users andthe use of manual
processes to sup-
plement data collection. The base ofthe tracking and reporting
data ware-house became the travel depart-ments software, which then
wasincorporated into a plan for a morefully integrated technology
platformfeeding in data from the accountspayable and HRIS
systems.
Continuous informational trainingsessions with HR and business
man-agers proved most effective and led to sustainable results.
Cross-functional participation requiredinvolvement from senior
manage-ment and an understanding of therepercussions of
non-compliance. Ashift in perspective took place, nowviewing these
recurring businesstrips as a function of employeemobility.
Disciplinary action wastaken to address repeat offenderswith senior
management.
Effective ApplicationThis company took several steps
that highlight some representativebest practices in the
successful man-agement of EBTs. The following rec-ommendations
identify the anchorsof a well-integrated program:
Policy development. Defining eli-gibility criteria for extended
businesstrips within ones organizational con-text and suite of
mobility plans andtiers will aid in clear delineation ofthis
population. A dedicated policyand EBT memo (outlining the termsand
conditions) help facilitate consis-tent and equitable treatment
andsupport of employees while alsoframing the employees
responsibili-ties in the process. The oversight andownership of
EBTs are most success-fully placed within the global mobili-ty
space given the existing architec-ture of compliance, tools,
servicedelivery resources and technicalexpertise. Typical policy
provisions
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MOBILITY/DECEMBER 2011 31
and guidelines include temporaryaccommodation, per diem or
T&Ereimbursement in alignment with theglobal travel policy, tax
consultationand return preparation (as required),immigration
procurement, excessbaggage and airfare.
The power of technology.Technology drives business forwardby
leveraging efficiencies. The inte-gration of systems allows for
regionaldata to be synthesized globally andultimately safeguard
compliance.Technology affords mobility teamsthe ability to manage
workflow, trackactivity and share data with theirexternal
suppliers. Limiting the inter-face to pertinent key EBT
identifiers,along with the additional supportinginformation
required to deliver theprogram, reduces the extensive timeand cost
of standard technology con-structs. Typical relevant data
include:employee name, employee ID,employee contact details, home
loca-tion, host location, business division,cost center, business
manager, startdate, end date and the number ofdays in the host
location for each trip.
Suppliers, who may have existingaccess to the clients HRIS
system viaa web portal, can extract the neces-sary information in
real time andproactively service the EBT popula-tion. For those
clients who do nothave the internal technology, similarresults can
be obtained via assess-ment tools offered from various sup-pliers
that provide both country-specific compliance regulations andcost
projections to be used for bud-getary purposes. Maintenance ofthose
assessments for current applica-tion requires due diligence but
canprove highly effective in addressingthe exposure associated with
EBTactivity.
Cross-functional involvement.The engagement of multiple
depart-ments within the organization high-lights the grasp that
mobility and thisparticular mobility typeEBTstruly have. From tax
and treasury totravel and legal, the effects of EBTsare
far-reaching, thus a solutionshould best be crafted
synergistically.Securing buy-in within an organiza-tion can assist
in forging a new path
to proactive management of theseemployees on extended
businesstravel. This strong partnership aids inthe implementation
of new proce-dures and workflow that could bemet with resistance or
at a minimum,irritation, if the rationale is not suc-cessfully
conveyed.
Communication and education.Launching an internal
awarenesscampaign to highlight the compli-ance risks and exposure
EBTs canpose to the organization can be aneffective call to action.
EducatingHR business partners and line man-agement alike, an
organization canbe well on the way to greater invest-ment in the
EBT process and admin-istration. Supplemental manager
andadministrator guides can supportcontinued learning and new
teammember onboarding. Communi -cations can be reviewed on a
quarter-ly basis to maintain focus and rele-vance.
Ongoing vigilance. The mainte-nance of data integrity is
vital.Country regulations or modificationsto corporate governance
rulings are
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32 MOBILITY/DECEMBER 2011
ever-changing. Communicatingthese regulatory updates to
stake-holders ensures that complianceterms are being met. Similar
to othermobility programs, the EBT policyand accompanying
administrativetools should be audited frequently,as the maintenance
of this education-al material is fundamental in the suc-
cessful management of EBTs. Ex -tracting and disseminating
valuablereporting from an organizationsmobility system of record
can bebeneficial to keep a close eye on themovement of its mobile
population.In tandem with tracking tools, theestablishment of
prescribed escala-tion protocols can be implemented
to send off alarms to key stake-holders and decision-makers
prior toan EBT approaching a critical taxthreshold. The
organization then isempowered to make an informeddecision rather
than pick up thepieces after an unwitting commit-ment.
Bringing It All TogetherThe subject of extended business
travelers and their related compliancerisks for organizations
will continueto be a hot topic of discussion in themobility
community. It is true thatthe hazards are plentiful, however,the
various measures discussed abovecan be implemented to tighten
pro-cedures, enhance visibility anddeploy mobility administration
withgreater confidence and ease. Now goforth and wear your
compliancebadges proudly!
Sarah DeHayes is director, consulting services at Crown
Relocations, Brookfield,CT. She can be reached at +1 203 482 6271or
e-mail [email protected].
Sofia Pires is a project manager, consultingservices at Crown
Relocations, Brookfield,CT. She can be reached at +1 203-788-9943or
e-mail [email protected].
Testing Your Knowledge
Lets take a birds eye view of your own organization and the
management of EBTs. Though some of the choices are a bit
irreverent, we hope the themes of technology, oversight and
compliance resonate.
1. How do you define EBTs in your organization? a) Eagerness
Before Thinkingb) Extended Business Travelers2. How do you identify
EBTs? a) Pick them out of a line-upb) In our HRIS system3. How do
you track EBTs? a) Via the signal from an ankle monitorb) Our
integrated HRIS system with enhanced tracking tools4. Who does the
employee on an EBT call if detained at the border? a) The
immigration providerb) Global mobilityc) The client
Answers: 1. b 2.c b 3. b 4. a and b.
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mailto:[email protected]://Answers:1.b2.cb3.b4.aandbhttp://www.gmsmobility.comhttp://www.gmsmobility.com
TOC-1EBTsClear and Present Danger