Reporting into HR, Ford Motor Co. EMEA and APAC travel manager Stephen Swift recognized impending risk issues for business travel given new and newly enforced municipal and country-based tax, visa and work-permit regulations. In response, he reshaped travel approval with tax compliance as an integrated process. Though he took the reins of compliance through his role in travel, he found he needed providers outside of the traditional travel management universe to deliver the solution he was looking for.
What prompted you to take hold of visa/immigration/tax compliance issues, and what risks have emerged for companies around them?
I managed relocation and travel for five years in the EMEA region and was involved in immigration and tax compliance. We became aware of compliance challenges around working patterns in Europe and realized we did not have a formal policy or process in place from a business travel perspective and needed to create one. We also realized we needed better support for employees on vehicle launch activity in other countries. This included immigration and tax support to obtain the right documentation for the individual. I took it to our HR leadership and got complete [buy-in]. What clinched it was briefly reporting to the head of the general counsel office. He said to make it a priority.
The risks of noncompliance are significant. There is reputational damage should noncompliance be highlighted by authorities in the form of fines and any potential media coverage of that. [You also] put employees at risk.
The U.K. and EU is where visa and immigration issues were more prevalent. But is this a global concern for companies?
Since the pandemic, we have noticed it has become more challenging to obtain work permits in many countries. There are staff shortages at many embassies around the world, which is leading to longer processing times. At many consulates there is greater scrutiny on some applications in certain regions, which is also leading to delays.
You’ve noted your biggest challenge was connecting the mobility compliance process you built to the OBT or TMC. How are you dealing with that?
We are using technology from our relocation partner Weichert Workforce Mobility to build a new global pre-trip approval system that will replace our existing tools. The tool will contain immigration and tax compliance logic and will initiate support for our employees when their travel patterns trigger the need for it. Weichert and our tax provider Deloitte will then obtain the relevant support. This is a huge project that has multiple work streams. We plan to have it available in the second quarter of 2022. In our experience, TMCs are still not interested enough in this area to offer a solution.
What do you recommend to travel managers getting started putting together a pre-trip process that enables simplified compliance?
Work with your relocation team and ask about the challenges they see. Also, if your company retains a tax consultancy, they are usually happy to present on this topic. Then highlight it to leadership and obtain support to take this forward. This can be the biggest challenge, as determining who owns this area is something a lot of companies struggle with. Then find a technology. There are many options. The technology will help you steer employees to a place where their travel can be assessed and any compliance requirements actioned through the system.
Do you see business travel getting more involved in mobility or coming together with that function?
As expat assignments reduce in number, companies are sending more people as a ‘business traveler,’ so we will need to create more flexible policies that meet the business need and combine all the elements of travel and relocation. Are businesses willing to merge these two departments? Perhaps not yet, but I can see a future where travel and relocation merge in some companies.