The 11th edition of Mobility Brazil, produced by WERC and Global Line, a consultancy firm based in São Paulo, Brazil, explored the state of global mobility in Brazil by gathering input from 100 multinational companies across various industries. The survey, conducted between April and June of this year, offers insights into the latest trends in expatriation and international transfer policies for professionals responsible for strategic decisions in talent mobility.
This year’s report focuses on how these policies are defined, updated, and communicated within organizations, with a particular emphasis on who drives these changes and how frequently updates occur. But first, let’s examine the profile of the transferees themselves to understand the trends that are shaping the policies.
Understanding the Transferees
The survey covered 4,752 transferees, including both outbound and inbound moves. Notably, 67% were Brazilians relocating abroad, while the remainder were employees relocating to Brazil. The top three types of transfer programs—long-term transfers, short-term transfers, and permanent transfers or localization—continue to dominate over other options like extended business trips, international internships, or digital nomad arrangements. Localization programs, in particular, remain the preferred choice in Brazil, according to year-over-year results.
The survey highlighted a difference between transfer goals for Brazilians abroad and foreigners working in Brazil. The majority of Brazilians relocated to a foreign destination do so to fill technical positions, while foreigners relocating to Brazil do so for more diverse reasons. Additionally, the goal of spreading corporate culture has diminished in importance from 2023 to 2024, while technology transfer has gained traction.
There has been little to no shift in foreign workers’ roles in Brazil over the years, and 2024 was no exception. Forty-two percent of expats relocated by the surveyed companies to Brazil assumed the roles of CEO or directors, according to the report, while 35% of Brazilians assumed the same roles abroad. Thirty-eight percent of expats were relocated to Brazil to fill a management position, a role assumed by 34% of Brazilians transferred abroad. The only category where the percentage of Brazilians working abroad was higher than that of foreigners in Brazil was “technical and operational functions” (31% vs. 20%).
Costs, Compensation, and Benefits
Similar to last year’s findings, more than half (56%) of companies surveyed noted that transferees typically cost up to 99% more than a local employee. This year, 24% of relocations involved costs ranging from 100%-199% more than a local employee. Just 2% of relocations involved cost less than a local employee.
For short-term assignments, most companies offered salaries commensurate with the destination country’s salary scale, while long-term assignments tended to use a combination of the scales from the home and destination countries. Last year’s survey found that wages for short-term assignments tended to follow the salary scale of the home country.
The most common relocation benefits offered by surveyed companies are tax preparation/consultation housing, annual home visits, relocation support, and language courses. More companies this year also offered services aimed at the psychological well-being of the expatriate and their family and intercultural training compared to the 2023 survey.
Challenges
Cultural and social adaptation difficulties for the employee (55%) and their family (73%) in the host country, and personal and family issues (59%) were the primary factors preventing a successful international assignment, as indicated in this year’s report. A lack of attractive job positions after expatriation was also indicated by a third of respondents.
The three primary challenges faced by companies managing transferees are the bureaucracy involved in securing work visas (40%), the high costs of expatriation (21%), and managing the employee’s career (19%). Last year, visa bureaucracy was a challenge pointed out by only 13% of respondents.
Policy Trends
Nearly all (95%) of surveyed companies had a formal expatriation policy in place, with 40% of those having a single global policy, 38% having a general policy with local adjustments, and 40% having specific policies based on assignment duration. Policies are set and managed at the headquarters level by 49% of those surveyed, while 36% also implement policy at the branch level.
For 82% of surveyed companies, expatriation and transfer policy is managed by HR professionals with the appropriate expertise. The policy was dictated by senior leadership in only 11% of companies. However, in most cases, senior leadership is involved in the policy’s assessment.
The main reasons for the involvement of senior leadership in the review are the evaluation of potential assignments (51%), cost/budget analysis (33%), and assessments of new projects (30%). Sixty-two percent of those surveyed said they made changes to expatriation and international transfer policies whenever strategic changes are made at their companies, while 39% said updates are made to keep up with new trends and 37% whenever new legal or tax measures take effect.
Strengths and Weaknesses
Among the strengths of mobility policies, the surveyed companies listed legal and tax at the top (52%), followed by assistance for moving and relocation (49%), and career growth and professional development opportunities (49%). Among the areas that need improvement, respondents stressed the lack of flexibility in choosing certain benefits (61%) and the absence of an adequate policy for repatriation for the return home (44%).
Most (76%) respondents said their companies’ expatriation policy includes an effective way of comparing costs and quality of life, allowing for fair compensation for the relocated professional. However, 62% of respondents said this policy is not well known within the company, thus requiring greater advertising. On the plus side, most (72%) companies closely monitor the transferred professionals and their families, assigning employees and specific departments to assist them as needed. However, most (61%) company policies do not allow for changes, customization, or any other flexibility during the expatriation period.
Finding a Path Forward
Brazil remains a key destination for worker relocation, both inbound and outbound. Businesses with operations within the country, whether based abroad or locally, face challenges. The findings in the report from WERC and Global Line seek to inform decision-makers on the best way to overcome them.
WERC members can access the Mobility Brazil 2024 report in the WERC Research Library. Want to compare trends year-over-year? Read a summary of the Mobility Brazil 2023 report online here.