January 22, 2019

How to Structure an Effective Extended Business Travel Policy

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Jan

22

How to Structure an Effective Extended Business Travel Policy

Posted by: Jennifer White, Manager, Consulting Solutions

Today, companies are placing emphasis on constructing relocation policies that are more in line with their mobility goals, objectives, and purpose, along with keeping abreast of changing employee profiles and destination locations. Over the past decade, companies have been searching for ways to adopt more flexibility in their programs while maintaining equitability and cost containment. One key demographic group that needs a closer look is the extended business traveler (EBT), loosely defined as an employee who does not relocate, but travels to an international location for business purposes for an extended period of time.

What Do Relocation Managers Need to Know When Managing Extended Business Travelers?

Cartus knows that the global mobility team in an organization is often unaware of who their business travelers are, yet we see that responsibility for tracking them often falls to this team. More than half (55%) of survey respondents indicated that Mobility manages EBTs, and in cases where Mobility does not currently manage EBTs, 59% expect that to change over the next few years.

We have developed a white paper, Extended Business Travel-Policy Structure and Benefits, that highlights the factors that should be considered, and the areas that need to be addressed, when developing an extended business travel policy. The coverage within each benefit can vary depending on the amount of flexibility and budget available for each move, but we have shared suggested policy components that can make up an extended business travel policy.

How do EBTs fit into today’s mobility programs?

According to Cartus’ 2018 Pulse Survey—Strategic or on Autopilot? How is Your EBT Program Performing?—75% of the 132 responding companies indicated that they expected their EBT population to increase over the next two years, up from 50% in 2014. This is in line with companies’ search for lower-cost approaches that still support a flexible, mobile workforce. However, despite the trend in extended business travel, 65% of companies do not have an EBT relocation policy in place. In fact, this is often the assignment type that leads to the “stealth expat” phenomenon, where companies struggle to ensure that this group of travelers is in compliance with local tax and immigration laws.

This is in line with the biggest challenges organizations are facing with regards to extended business travelers, including:

EBT_challenges.jpg
*Source: 2018 Extended Business Traveler Pulse Survey vs. 2014 Global Mobility Policy & Practices Survey

Additional Resource

For more information on managing EBTs, download our pulse survey report, Strategic or on Autopilot? How Is Your EBT Program Performing?,EBT survey thumb-280px.png to find out how your industry peers are managing EBTs. Among the key findings of the pulse survey report, you’ll learn:

  • How companies are defining EBTs
  • Which area of the company is managing EBTs
  • Most common support provided to EBTs
  • The top countries that companies are sending EBTs
  • Five key takeaways to take control of your EBT program

Please contact your Cartus representative, or email us at consultingsolutions@cartus.com if you would like more information on supporting Extended Business Travelers, and visit our Resource Hub on Cartus.com for more information to help you manage your mobility program.

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Posted By

Jennifer White

About Jennifer

Jen is manager of Consulting Solutions and has more than 25 years’ experience in the global mobility industry, predominantly in global operations, account management, program implementation, and policy design.

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