Monthly Special - Case Study: Switzerland–USA Assignment In Practice: Why Low Direct Costs Do Not Guarantee A Successful Assignment Abroad

The following case study shows why international assignments should not be assessed solely on the basis of direct costs. It also illustrates how indirect and hidden costs can have a significant impact on the success of an assignment, even if the international setup has been set up correctly from a technical standpoint and implemented correctly from an administrative point of view.

Initial situation

A Swiss company sends a young Swiss engineer to the US for two years. The assignment is planned as a classic long-term assignment. The contract terms and the tax and social security issues associated with the assignment are clarified at an early stage. Tax equalization is agreed and payroll is correctly implemented with some external assistance. From a practical point of perspective, the assignment is relatively quick and easy to administer.