Need to know:
- Relocation packages should include a compliance element, covering areas such as tax and immigration, to ensure an employee is not out of pocket overseas.
- Health and wellbeing are key benefits, enabling an employee to look after their health and feel supported while on an assignment.
- A consistent and transparent approach to relocation packages can help to control costs and ensure fairness.
Sending an employee overseas is expensive, with Axa Global Healthcare’s World of work research, published in March 2026, showing the average international assignment costs nearly £60,000 (US$79,636) a year on top of base salary. As around 40% of assignments fail, the right relocation package is essential.
A carefully curated mix of benefits and support can make a significant difference according to Eileen Girling, regional HR Director at Crown Worldwide Group. “It’s the small things that break assignments,” she says. “It could be adapting to the culture, or their partner struggling to settle that makes them want to come home.”
Compliance package
A compliance package is a must. This covers the additional immigration, visa and tax liabilities an employee may face in a different country. Having to navigate a new tax system or work out which visas are required can distract an employee from the day job and even leave them at risk of penalties for non-compliance.
For example, in Austria, an employee would be tax liable from day one, says Andreas Strachwitz, vice president EMEA at Weichert Workforce Mobility. “Tax advice isn’t always included in a compliance package, but it will be offered by larger companies,” he adds. “An employee shouldn’t be out of pocket as a result of a relocation.”
Health and wellbeing support
An employee’s health and wellbeing are also key considerations. Michelle Bishop, global practice leader, multinational benefits and mobility at Gallager, says: “Healthcare systems vary enormously around the world. Providing medical insurance, whether through an international or local policy, ensures an employee will be able to access healthcare if required.”
Wellbeing support has also shot up the relocation agenda. Alongside the traditional initiatives, such as mental wellbeing tools, healthy lifestyle information and digital GP services, wellbeing for an employee posted overseas could include language and cultural support. “Just having a native speaker on hand to help them get to grips with local rules can make a big difference,” says Girling.
Tailored to fit
Once the must-haves are in place, relocation packages are often shaped by the nature of the assignment. For example, a senior executive being posted with their family for 18 months to set up a new office in south-east Asia could expect a more generous package than someone volunteering to transfer to the US division for six months.
Local requirements make a difference too. “Employers must consider benefits legislation,” says Bishop. “An employee may be able to continue paying into their pension in their home country, but the rules vary between countries and can also depend on how long they are away.”
Where an employee is relocated with a partner or family, appropriate support can minimise the risk of the assignment failing, says Strachwitz. “The relocation package should be tailored to the family,” he explains. “This might include school fees if there are no international schools or spousal support to help the employee’s partner find suitable work.”
Competition and transparency
Competition, with other organisations but also other employees, plays a part too. While it is important to compete, a big difference in packages can backfire. “People do talk so there must be a consistent approach across [an organisation],” Strachwitz says. “The days of the assignee being a local god are long gone.”
Balancing transparency with an employee’s unique needs means local plus packages are common. “These give an employee the same benefits package as their local colleagues while also acknowledging their unique needs,” says Bishop. “Giving an employee a pot of money to cover costs can also work well, especially where the [organisation] doesn’t have scale. This can also help to contain costs, which is a key focus for relocation packages.”
Networking with other global mobility specialists through groups such as the Forum for Expatriate Management can help reward professionals stay ahead of the latest trends and ensure relocation packages are appropriate.
International assignments are a significant financial commitment. Designing a relocation package that is fair, transparent and meets the needs of the employee can increase the probability of a successful posting.
