A secondment is a temporary work arrangement where an employee is assigned to a different organization, department, or location while maintaining employment with their original employer.
An international secondment occurs when an organization assigns employees to work in a different country, typically to support global expansion initiatives or share expertise across international offices. This arrangement allows companies to leverage their talent globally while providing employees with valuable international experience.
The seconded employee continues to receive their salary and benefits from their primary employer during the assignment period. However, they work under the day-to-day supervision and direction of the host organization, creating a unique dual-relationship structure.
Secondments can range from short-term projects lasting a few months to long-term assignments extending several years. These arrangements have become increasingly popular as organizations seek global mobility for talent deployment and cross-border knowledge transfer.
What is a seconded employee?
A seconded employee is a professional who temporarily works for a host organization while remaining officially employed by their original employer. This arrangement creates a triangular relationship where the employee maintains their original employment agreement but performs duties for the host organization.
In a global context, seconded employees often serve as on-the-ground representatives who transfer knowledge, implement new processes, or manage international projects for their home organization. They typically retain their home country's benefits and compensation structure while adhering to the host country's work practices and cultural norms.
How does secondment work?
A secondment operates through a structured process that ensures precise arrangements between the home organization, the host organization, and the employee. The process begins when an organization identifies a need for specialized skills or expertise in another location or department.
The arrangement requires formal agreements that outline specific terms, including duration, responsibilities, compensation, and reporting structures.
When employees cross borders, these agreements must address crucial details like work permits, tax implications, and compliance with local labor laws. This structured approach helps organizations expand globally without requiring permanent establishment in host countries.
A successful secondment relies on thorough preparation and ongoing support. The home organization typically handles travel arrangements, accommodation, and necessary documentation. This often extends to international requirements like visa applications, health insurance coverage, and cultural orientation programs.
During the secondment period, the employee works under the host organization's direction while maintaining employment ties with their original employer. Regular communication channels between all parties help monitor progress and address challenges that may arise.
Upon completion, the employee usually returns to their home organization, often bringing valuable new skills and international experience that benefit both organizations.
When is secondment used?
Here are common scenarios in which organizations leverage secondment arrangements:
- Global expansion support. Organizations second employees to new international markets to establish operations, transfer company culture, and implement standardized processes without triggering permanent establishment requirements.
- Skills and knowledge transfer. Companies use secondments to facilitate expertise sharing between departments or international offices. This approach helps build organizational capabilities and maintain consistent standards across global operations.
- Project-based assignments. Secondments support specific initiatives or projects that require specialized expertise for a defined period. This includes technology. implementations, market research, or establishing new business units abroad.
- Leadership development. Organizations second high-potential employees to international roles to develop future leaders with global business acumen and cross-cultural management experience.
- Client relationship management. Professional service firms often second employees to client organizations to strengthen partnerships, provide specialized expertise, and ensure service delivery excellence.
- Temporary resource coverage. Secondments address temporary staffing needs during parental leave, sabbaticals, or unexpected vacancies while maintaining operational continuity.
- Strategic partnerships. Organizations use secondments to strengthen relationships with international partners, joint ventures, or foreign subsidiary companies by sharing talent and expertise.
Secondment example
Secondment arrangements demonstrate how organizations can strategically deploy talent to create mutual value and foster professional growth across different business contexts. Here’s an example scenario of how these arrangements unfold.
A marketing executive takes a six-month secondment to join the sales department, where they gain direct experience with customer interactions and sales processes. This internal arrangement allows the executive to better understand customer needs, which they later apply to create more effective marketing strategies that align with sales objectives.
A software engineer accepts an external secondment to work on an innovative product development project with a startup company. During this arrangement, the engineer brings technical expertise to the startup while gaining exposure to entrepreneurial practices and agile development methods. Cross-organizational collaboration benefits both companies through knowledge exchange and innovation opportunities.
International secondment vs. employer of record
International secondment and employer of record (EOR) represent two distinct approaches to managing international workforce deployment. Each model serves specific business needs and comes with unique considerations for global organizations.
International secondment
International secondment maintains the original employment relationship while temporarily assigning employees to work abroad. The employee continues employment with the home organization while working under the host organization's direction.
The home organization retains primary responsibility for the seconded employee's salary, benefits, and compliance requirements. This model works well for temporary assignments and helps organizations avoid permanent establishment concerns while deploying talent globally.
Employer of record
An employer of record is the legal employer for employees in countries where an organization lacks a legal entity. The EOR handles all employment-related responsibilities, including payroll, benefits, and compliance with local labor laws, while the organization maintains day-to-day employee management.
EORs offer a faster path to international hiring and permanent relocation without establishing a legal entity in each country. This solution benefits companies seeking rapid market entry or those hiring in multiple global locations simultaneously. Unlike secondment, the EOR arrangement creates a clear legal employment structure in the host country, eliminating compliance complexities associated with cross-border assignments.
Velocity Global’s EOR solution enables organizations to compliantly hire, pay, and manage talent in over 185 countries while maintaining complete control of day-to-day operations. We handle everything from onboarding and offboarding to comprehensive benefits administration, accurate payroll processing, and expert compliance support so companies can focus on growing their business and supporting their expanding workforce. Ready to learn more? Contact us.
Disclaimer: The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. © 2024 Velocity Global, LLC. All rights reserved.
