Professional Documents
Culture Documents
RESOURCE MANAGEMENT
Compensation
Benefits Economic
Allowances
Conditions
Example:
Assignment
Actual hardship
Tax consequences
Length of assignment
June 11, 2008 8
Key Components of International
Compensation Programme for Expatriates
DISADVANTAGES
ADVANTAGES
Variation between assignments
Equality with local nationals for the same employee
Goods and services – Outlays incurred in the home country for food, personal
care, clothing, household furnishings, recreation, transportation and medical
care
Housing – All major costs associated with housing in the host country
Income Taxes – Parent country and host country income tax expenditures
DISADVANTAGES
ADVANTAGES
Can result in considerable
Equality between assignments
disparities between expatriates
and between expatriates
of different nationalities
of the same nationality
and between expatriates
and local nationals
Facilitates expatriate
reentry
Can be quite complex
to administer (e.g. changing
Easy to communicate
economic conditions,
To employees
taxation)