First Talent Mobility Summit in Romania tackles the challenges of cross border workforce transfers – an interview with the organizers

Top international speakers will share their expertise related to workforce mobility at the first Talent Mobility Summit in Romania, at the Sheraton Hotel in Bucharest on October 27. The event’s organizers - Andreea Gheorghe, managing partner of Nestlers Group, and Elena Antoneac, co-founder of xpath.global - talk in this interview about the main themes to be addressed at the summit and about the trends and challenges related to talent mobility in Romania.

Workforce mobility is an important concern for companies in Romania. In recent years, Romania has experienced a significant increase in workforce immigration due to labor shortages in key industries. At the same time, Romania also remains a source country for talent transfers within the EU as multinational companies active in the country find the expertise of their local employees valuable for their operations in other countries.

International employee transfers pose many challenges to HR departments due to differences in labour and tax regulations between countries. The first Talent Mobility Summit in Romania, organized by Nestlers Group and xpath.global, aims to provide HR specialists with valuable insights to tackle these challenges.

“Romania plays a pivotal role as a source country for employee transfers within the EU for various projects. We've organized this event to provide support for HR professionals in Romania, helping them grasp the complexities of posting employees abroad and raising awareness about the associated risks and legal solutions available to them,” says Elena Antoneac (in opening picture right), co-founder of xpath.global.

The Talent Mobility Summit will address themes such as Business Trips vs. Posting Projects, Legal Procedures for Posted Employees, Interpretation of PWD by Different Countries, Applicable Tax Legislation, and Shadow Payroll Considerations.

“Our keynote speakers bring their expertise from Spain, Belgium, the Netherlands, France, and Austria, each offering insights into the challenges and opportunities of international employee assignments. Additionally, representatives from the OECD will provide valuable insights into the impact of the digital economy on tax legislation,” adds Andreea Gheorghe (in opening picture left), managing partners of Nestlers Group.

The list of speakers will also include delegates from the European Labour Authority and the Romanian Labour Department, who will share their insights into labor regulations and policies.

Read the full interview to learn more about the Talent Mobility Summit and the challenges related to workforce mobility in Romania.

Please share with us what is your mission at Nestlers Group and xpath.global. How long have you been on the market and what services do you provide?

Andreea Gheorghe: At Nestlers Group, we take pride in delivering top-tier immigration, tax, and social security services to our corporate clients. Our team brings over 50 years of extensive expertise to the table, demonstrating a high degree of professionalism and unwavering dedication.

Elena Antoneac: I am in the HR and global mobility industry for 20 years now. Previously I had several roles as HR Executive and entrepreneur building a boutique consultancy company dedicated to the global mobility industry. After couple of years in this profession I understood the need of tech tools on this side of the HR. I learned that the industry needed more transparency and companies would need to have access to vetted suppliers in a more digitalized way. So xpath.global was born on the exclusive need of the clients. xpath is mainly a technology platform which helps HR professionals, expatriates, short term assignees, long term assignees, business travelers as well as service providers worldwide to work and keep track on the global mobility processes in one single platform.

xpath.global marketplace platform enables corporate clients to procure essential services directly from vetted curated providers. From our platform professionals can buy and track relocation, immigration, taxation, social security, and moving services, spanning across 183 countries globally. With an extensive catalogue of over 60,000 services and access to more than 600 vetted suppliers, corporate clients can cherry-pick the best services at the most competitive prices, all with full transparency. Using our platform, any company can organize a global RFQ in minutes having direct access to hundreds of global suppliers.

The entire ecosystem built by us come with a case management tool, AI-driven capabilities, Centralized expatriate database, Assignment management, Supplier management, Salary Calculator, Checklists and Workflows, Document sharing, and projected cost of living data for over 11,000 cities worldwide.

What is the profile of your clients and what needs do they have in the areas you cover?

Andreea Gheorghe: Nestlers primarily caters to corporate clients engaged in global employee transfers. Our clients typically fall into the following profiles:

The needs of our corporate clients in the areas we cover include:

• Immigration Services: Assistance with obtaining work visas, residence permits, and necessary documentation to ensure employees can legally work in the destination country.
• Tax and Compliance: Guidance on tax compliance for both employees and employers in the host and home country, including tax planning and compliance with local regulations.
• Labour Law Compliance: Support on labour law compliance for both employees and employers in the host and home country.
• Relocation Coordination: Organizing the logistics of the move, including housing, transportation, and settling-in services to ensure a smooth transition for employees and their families.

Elena Antoneac: At xpath.global, our primary clientele comprises corporate entities deeply involved in the complex world of global employee transfers. These organizations seek our expertise to address challenges within the realm of international workforce mobility. The diversity of our client base ranges from large multinational corporations to mid-sized enterprises, all of whom share a common need: efficient and seamless global transfers.

Human resources professionals demand sophisticated Global Transfers Tech Solutions. They require comprehensive tools that not only track visa procedures but also ensure the secure acquisition of work permits. In an industry dominated by traditional methods an overpriced management companies, our clients rely on us to provide cutting-edge solutions that eliminate and simplify these processes.

Another crucial aspect of our services revolves around Risk Mitigation. Global mobility professionals, operating in a global landscape, need strategies to manage the risks associated with international workforce mobility. We offer a user-friendly system that grants real-time access to the entire immigration, relocation, tax and moving process with their predefined process to ensure consistency in their processes. This transparency equips our clients with the ability to navigate potential challenges proactively.

Furthermore, enhancing the Employee Experience is crucial in our services. Recognizing that relocated employees often face complex challenges during international assignments, we have developed a dedicated mobile app designed exclusively for expatriates - the xpath.one. This app not only simplifies various tasks but also elevates the overall satisfaction of relocated employees, ensuring a smoother transition into their new work environment.

Additionally, HR teams require Cost Efficiency and Budgeting assistance. International assignments come with financial complexities, from administrative costs to potential tax impacts. Our team excels in delivering efficient solutions that optimize expenses. We collaborate closely with our clients, estimating these financial implications to aid in effective budgeting, ensuring that every penny spent yields maximum value.

Lastly, our expertise lies in a smooth Technology Integration. Our clients need integrated technology solutions and platforms that harmonizes the global mobility process. Real-time tracking and reporting capabilities are essential for HR and mobility teams to make informed decisions.

You organize the first Talent Mobility Summit in Romania on October 27 at the Sheraton Hotel. Why have you decided to organize this event and who is the target audience? 

Elena Antoneac: Romania plays a pivotal role as a source country for employee transfers within the EU for various projects. However, as an HR professional in Romania, keeping up with the ever-changing Romanian legislation can be quite challenging, let alone gaining in-depth knowledge of Posted Worker Directive 96/71/CE or European Regulation no 883/2014. To address this, we've organized this event to provide support for HR professionals in Romania, helping them grasp the complexities of posting employees abroad and raising awareness about the associated risks and legal solutions available to them.

What are the top themes that will be covered at the TMS and what kind of information will the participants get from it? 

Andreea Gheorghe: The main topics which will be discussed during the event are:

• Business Trips vs. Posting Projects: While often seen as synonymous, these terms differ significantly from a legal standpoint. Moreover, the Romanian Labour Code offers a unique definition of posting, potentially adding to the confusion for companies.
• Legal Procedures for Posted Employees: Our experience has revealed overlooked steps in HR coordination of posting projects. To address this, we emphasize the importance of comprehensively discussing each step and highlighting associated risks.
• Interpretation of PWD by Different Countries: HR professionals often struggle to decipher legal requirements in host countries. To aid them, we've invited experts from various EU nations to share their insights with their Romanian counterparts.
• Applicable Tax Legislation: Understanding the tax implications of international assignments is crucial for both employees and employers. Our event will analyze the tax laws in the context of cross-border projects, shedding light on compliance requirements, potential benefits, and key considerations to ensure a smooth tax journey.
• Shadow Payroll Considerations: Shadow payroll is a concept that often is ignored by the HR professionals. We will provide insights into its significance, best practices, and how to manage it effectively. Participants will gain valuable knowledge to ensure accurate payroll processing, tax compliance, and employee satisfaction during international assignments.

Please tell us a few things about the speakers and the type of expertise that each of them brings to this event. 

Andreea Gheorghe: Our keynote speakers bring their expertise from Spain, Belgium, the Netherlands, France, and Austria, each offering insights into the challenges and opportunities of international employee assignments. Additionally, representatives from the OECD will provide valuable insights into the impact of the digital economy on tax legislation. Furthermore, our speakers include delegates from the European Labour Authority and the Romanian Labour Department, who will share their insights into labor regulations and policies. Lastly, we will explore the advantages of using technology in managing global mobility processes, offering practical solutions to enhance efficiency.

Workforce migration is a hot topic today in Romania as the country faces labor deficits in many business sectors. How has workforce immigration evolved in Romania in recent years and what are the top challenges for companies looking to bring workers from outside the EU to Romania? 

Elena Antoneac: In recent years, Romania has experienced notable shifts in workforce immigration due to labor shortages in key industries.

Romania's expanding economy sectors, such as IT and manufacturing, have led to a heightened need for both skilled and unskilled workers. Consequently, there has been a discernible uptick in the demand for foreign labor to bridge these gaps. Nowadays, the Romanian companies have a high request for work permits to cover their need of workforce. Romania entered softly in this global battle for skilled workers.

However, as the competition for talent intensifies globally, Romania is increasingly positioning itself as an attractive destination for skilled professionals and unskilled labor alike. This evolution is not only contributing to economic growth but also fostering a more diverse and dynamic workforce in the country, enhancing innovation and competitiveness across industries.

Andreea Gheorghe: Romania's work permit quotas have undergone substantial changes in recent years. For instance, in 2020, the quota stood at 30,000, increased to 50,000 in 2021, surged to 100,000 in 2022, and maintained the same level in 2023.  

However, companies must successfully navigate a labyrinth of legal prerequisites. This entails ensuring they meet the criteria for hiring non-EU workers, adhering to minimum salary standards, and fulfilling tax and social security obligations. 

Managing international assignments while adhering to Romanian and EU legal frameworks can be extremely complex. To overcome these challenges effectively, companies often require specialized support and expertise in global mobility management. This support might also mean a tech solution to mitigate all the compliance risks. 

In conclusion, Romania's workforce immigration landscape has adapted to address labor shortages, heightened demands for skilled labor, and shifts in EU regulations. For companies seeking to bring non-EU workers to Romania, key challenges encompass complex immigration procedures, adherence to legal requirements, and addressing language and cultural disparities while ensuring the seamless integration of foreign employees into the workforce.

At the same time, multinational companies that are active in Romania send some of their local employees abroad with temporary or permanent assignments. How widespread is this phenomenon and what are the main challenges in this regard?

Elena Antoneac: The practice of multinational companies based in Romania sending local employees abroad on temporary or permanent assignments is relatively widespread and is an integral part of global talent management and business operations.

Multinational companies often have a global presence and engage in international business operations. Sending local employees abroad is a common strategy to facilitate these operations efficiently.

Many Romanian employees possess specialized skills or knowledge that can be valuable in international markets. Sending them abroad allows companies to leverage their expertise in different locations.

This practice comes with challenges such as:

• Immigration and Work Authorization: One of the primary challenges is navigating the immigration and work authorization processes in the host country. Obtaining the necessary visas and work permits can be time-consuming and complex.
• Compliance with Local Laws: Multinational companies must ensure that they comply with the labor laws and regulations of both Romania and the host country. This includes issues related to employment contracts, taxation, and social security contributions.
• Cultural and Language Differences: Employees sent abroad may face challenges related to adapting to new cultures and languages, which can impact their effectiveness in their roles and overall well-being.
• Employee Support and Relocation: Providing adequate support for employees and their families during relocation is crucial. This includes assistance with housing, schooling for children, and addressing any personal or family concerns.
• Repatriation and Career Development: Planning for the return of employees after their international assignment ends and providing opportunities for career development and growth are important considerations.
• Cost Management: International assignments can be expensive for companies, including costs associated with expatriate compensation packages, housing, and relocation. Managing these costs is a significant challenge.
• Security and Safety: Ensuring the safety and security of employees working in different countries is a top priority. Companies must have contingency plans in place for potential emergencies or crises.

In summary, multinational companies in Romania commonly send local employees abroad for various reasons, including leveraging their expertise and facilitating global business operations. However, this practice comes with several challenges related to immigration, legal compliance, cultural adaptation, employee support, and cost management. Effective global mobility management and comprehensive support systems are crucial for addressing these challenges and ensuring the success of international assignments.

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Elena Antoneac, co-founder of xpath.global, simplifies international assignments through their technology platform. It connects HR professionals, expatriates, business travelers, and service providers, offering a collaborative global mobility ecosystem. With a marketplace of vetted suppliers across 183 countries, the platform provides immigration, tax, relocation, and moving services. Elena, a law graduate and former HR executive, recognized the need for technology in HR compliance and global mobility after founding her boutique consultancy specializing in Immigration, Tax, and Labor Law. She is an advocate for technology, compliance, and an immigration and tax expert.

Andreea Gheorghe became a valuable member of the Nestlers team in 2016, bringing with her over a decade of expertise in tax and accounting. She initially assumed the role of an expatriate tax manager but rapidly climbed the ranks to become the Managing Partner within approximately three years. Her unwavering passion lies in assisting both businesses seeking consultancy and HR professionals in need of expatriate support.What sets Andreea apart is her consistent reliability, which cultivates trust among our partners. Her adept management skills ensure the smooth and efficient operation of our team. Despite her extensive experience, Andreea understands the vital importance of ongoing learning, especially in light of ever-changing regulations and emerging requirements. It is this commitment to continuous improvement that equips her to skillfully navigate your needs.

*This interview was edited by the Romania-Insider team for Nestlers Group and xpath.global.