But after nearly every profession experienced a shift to working from home during what the U.S. Bureau of Labor Statistics called a massive experiment in remote work—a stark contrast to the 6.5% of private sector workers who worked from home in 2019—more and more employees are requesting a permanent decoupling of career and location and demanding flexibility, both in terms of working hours and physical location.
Employees everywhere have proved they don't need to go into the office to have an impact, with data from 2019–2022 showing the rise in remote work was associated with an increase in industry-level TFP (total factor productivity). Today, organizations are seeing an uptick in requests from employees who want to relocate to their home country, move to be closer to family, or live abroad for the fun of it, joining a global trend that saw 167.7 million migrants become part of the labor force in their destination countries in 2022.
While enabling international employee relocation can be key to retaining top talent, it can be a tricky scenario for an HR department, especially since the majority of the international labor force is concentrated in high-income countries, which often have complex regulations. Relocation requests on an international level trigger administrative, legal, tax implications, visa and residency requirements—and becoming an expert in every country's labor laws just isn't feasible.
Let's dig into some of the common challenges that come with remote employee relocation requests, and we'll share some tips and tools to navigate them.
Wondering how Oyster fits into your big picture? Book a customized demo to see what your day-to-day could look like with our global employment platform.
Challenge 1: Complying With Local Labor Laws
What does compliance actually mean when an employee relocates? Every country has different employment laws, tax requirements, and worker protections—and getting it wrong means hefty fines and legal exposure.
You have two main options:
- Open a legal entity: Costly and time-intensive, but gives you full control
- Use an employer of record (EOR): Faster and more cost-effective for individual relocations
Let's look at an example of how this works, which is increasingly common given the growing share of migrants in Europe's labor force. Say a company based in Germany has an employee who wants to relocate to Spain. This can be a tricky situation because if the company doesn't have a legal entity set up in Spain, they can't handle visas. In this instance, the employer may choose to use a global employment platform to manage all aspects of local compliance. This includes ensuring employment agreements are up to par with local labor laws and providing the legal protection the company needs.
Challenge 2: Setting Up Payroll
Here's the reality: your home-country payroll likely can't handle international employees. You'd need separate payroll systems for each country, plus deal with currency exchanges and banking fees.
Instead of setting up entities everywhere, a global payroll platform handles:
- Compliant local contracts: Generated according to local labor laws
- Tax management: Local taxes and contributions calculated automatically
- Expert support: Access to HR specialists in each country
Challenge 3: Immigration And Visa Requirements
Because employees are no longer tied to one geographical location, more and more are making the move abroad. This can complicate things for an employer who isn't equipped to handle the immigration and visa requirements needed to accommodate these changes on their team.
For example, a company is ready to hire a candidate who recently moved to France, but the visa process will take a couple of months, and they want an immediate start. This is where relocation services like Jobbatical can be quite helpful. They can take care of the challenges around immigration and let employers relocate their international hires easily.
Until the visa is granted, employers can use an EOR for the new employee's country of residence, and the employee can enter the country and start working from the local office.
Challenge 4: Managing Administrative Complexity And Documentation
Beyond the big three—compliance, payroll, and visas—lies a mountain of administrative work:
- Document management: Collecting and submitting forms across multiple agencies
- Deadline tracking: Missing one date can derail everything
- Team coordination: Keeping legal, finance, and HR aligned
The solution? Centralize this chaos. A global employment platform replaces scattered emails and spreadsheets with a single system that tracks milestones and maintains clear audit trails.
Challenge 5: Developing Effective Communication Strategies
An employee's relocation journey is filled with uncertainty. Vague timelines and radio silence from HR can turn excitement into anxiety. So how do you keep employees confident during the uncertainty?
Effective communication is non-negotiable:
- Single point of contact: One person they can always reach with questions
- Clear timelines: Realistic expectations from day one
- Regular updates: Even if there's nothing new to report
This isn't just about information—it's about showing you value their experience.
Challenge 6: Compensation
As an employer who hires around the world, it's important to define and communicate your compensation strategy for your global workforce, especially in light of research showing that pandemic-era productivity gains were not passed along to workers through higher hourly compensation. Some companies tie pay to location, whereas others follow a location-agnostic compensation approach.
Whatever compensation your company chooses to use, it's important that you have one singular approach and are up front about it. When it comes to building trust with your global workforce, it's recommended that companies take a stance, put a stake in the ground, and allow potential employees to decide if that company subscribes to a pay structure that works for them.
Leveraging Technology Solutions For Seamless Relocation Management
Trying to manage an international relocation with manual tools is a recipe for errors and delays. Spreadsheets can't track compliance changes, email chains get lost, and there's no single source of truth for employee data.
Think of a modern global employment platform as your operational backbone. It automates the heavy lifting:
- Contract generation: Compliant agreements created automatically
- Visa coordination: Support initiated with proper documentation
- Data integration: No more copying information between systems
The result? Your team gets time back to focus on the human side of relocation.
Supporting Employee Success Throughout The Relocation Process
A successful relocation isn't just about getting the paperwork right; it's about ensuring your team member thrives in their new environment. The stress of moving, adapting to a new culture, and navigating personal logistics can impact their well-being and performance if left unaddressed.
What does real support look like? Go beyond the operational checklist:
- Cultural resources: Help them adapt to local customs and practices
- Local connections: Introduce them to nearby team members when possible
- Regular check-ins: Touch base frequently during their first few months
This human touch shows you're invested in them as a person—not just checking compliance boxes.
Building A Sustainable Global Relocation Strategy
Handling employee relocations on a case-by-case basis isn't scalable. As your team becomes more distributed, you need a consistent, compliant, and humane process. The challenges of compliance, payroll, and administration don't have to be a barrier to retaining your best talent, wherever they choose to live.
By partnering with a global employment expert, you can turn a complex operational burden into a strategic advantage. A platform like Oyster provides the technology, local expertise, and human support to manage every aspect of employee mobility. You can confidently approve relocation requests, knowing every detail is handled correctly, and build a truly global workforce without the traditional headaches. Ready to make global mobility a seamless part of your talent strategy? Start hiring globally with confidence.
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About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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