As an IIM interim considering an overseas assignment, you may well have come across international umbrellas or management companies (IUMCs) offering country-specific, ‘guaranteed’ services covering all employment-related costs, insurances and local compliance costs for a standard management fee of circa 5% (naturally negotiable downwards to get your business).
According to ItsInternational, the interim market’s most experienced provider of ‘contract management services’, it doesn’t require a degree in ‘rocket science’ to realise this cannot be a sustainable IUMC business model.
There are still recruiters handing their candidates a list of preferred IUMCs without giving any guidance as to the differences between them. Indeed, how many recruiters share the selection criteria for including an IUMC on its PSL with their candidates? For someone contracting their services abroad for the first time, it can be quite challenging to know exactly what to ask a prospective IUMC – especially as most only have knowledge of their home country laws and may dangerously assume they will be similar abroad.
By all means be attracted to low IUMC fees but ensure you equally give due attention to any risks associated with the ‘solution’ they are going to use.
Some IUMCs have been known to advertise “risk free” solutions. Who could reject such an appealing and fail-safe offer? However, before rushing to get your hands on such a solution, ItsInternational suggests you obtain local and/or independent substantiation to be satisfied the service promise matches reality. This will help you understand the level of risk you could be facing if you go ahead; and, if you still decide to go ahead, how you should be preparing to manage that risk.
ItsInternational would like every interim considering an overseas assignment to accept the old mantra “if it sounds too good to be true, then it’s likely not to be true” when faced with a choice of ‘solutions’ appearing to marry very high retentions with no apparent compliance risk.
For more information about ‘ItsInternational’ please call Mike Phillips on +44 (0)20 7477 2660 or email him at firstname.lastname@example.org
© itsinternational Ltd – July 2013