HRO Today July/August 2015 - 38

Relocation
Benefi ts
of Going Local
What organizations need to consider when leveraging a
local-based approach to long-term international assignments.
By Lisa Johnson
As companies continue to expand and grow globally,
so do the needs of their international assignments. The
one-size-fi ts-all, home country balance sheet policy has
been the backbone of long-term assignments for many
years. However, this policy may no longer suit emerging
assignment types and a local plus approach may need to
be considered.
A traditional home country balance sheet based
long-term assignment policy has several notable
characteristics. It is based on keeping employees
aligned with their home country compensation system,
as it assumes that an employee will repatriate there.
Financially, employees retain the same company income,
benefi ts, and living costs as in the home location, and any
additional costs are borne by the company.
Cost alone can dissuade many companies from offering
assignments, despite having strong business cases
or talent development reasons to support them. To
address this and many of the limitations presented by
a traditional policy approach, including the assumption
that employees will repatriate to their home country,
administrative complications, and the disparity between
the assignee and his or her peers in the assignment
location, companies have begun to introduce more
[38]
HRO TODAY MAGAZINE
| JULY/AUGUST 2015
effective alternatives. These policies can lower costs,
improve parity, and simplify the administration of
assignments.
The most notable difference between a local package
or local plus and a traditional approach is that the
compensation is host location based. Rather than the
assignee's salary and other compensation elements
remaining in line with home country salary levels and
being paid in home country currency, the assignee
transitions to the compensation approach of the host site.
One advantage of this transition is that the assignee's
compensation is in line with both host location peers
and assignees from other countries, eliminating the
perception that assignees are paid better than local
employees. From a cost standpoint, there may be a gain
or a loss-or salary change may be neutral-depending
on the home and host locations. Used in isolation, local
compensation may or may not necessarily represent a
cost savings.
When a company uses a local approach for temporary
assignments, it has to be part of a well-communicated
strategy and consistently applied. If some assignees-
going to the same location-receive the local package

HRO Today July/August 2015

Table of Contents for the Digital Edition of HRO Today July/August 2015

HRO Today July/August 2015 - 1
HRO Today July/August 2015 - 2
HRO Today July/August 2015 - 3
HRO Today July/August 2015 - 4
HRO Today July/August 2015 - 5
HRO Today July/August 2015 - 6
HRO Today July/August 2015 - 7
HRO Today July/August 2015 - 8
HRO Today July/August 2015 - 9
HRO Today July/August 2015 - 10
HRO Today July/August 2015 - 11
HRO Today July/August 2015 - 12
HRO Today July/August 2015 - 13
HRO Today July/August 2015 - 14
HRO Today July/August 2015 - 15
HRO Today July/August 2015 - 16
HRO Today July/August 2015 - 17
HRO Today July/August 2015 - 18
HRO Today July/August 2015 - 19
HRO Today July/August 2015 - 20
HRO Today July/August 2015 - 21
HRO Today July/August 2015 - 22
HRO Today July/August 2015 - 23
HRO Today July/August 2015 - 24
HRO Today July/August 2015 - 25
HRO Today July/August 2015 - 26
HRO Today July/August 2015 - 27
HRO Today July/August 2015 - 28
HRO Today July/August 2015 - 29
HRO Today July/August 2015 - 30
HRO Today July/August 2015 - 31
HRO Today July/August 2015 - 32
HRO Today July/August 2015 - 33
HRO Today July/August 2015 - 34
HRO Today July/August 2015 - 35
HRO Today July/August 2015 - 36
HRO Today July/August 2015 - 37
HRO Today July/August 2015 - 38
HRO Today July/August 2015 - 39
HRO Today July/August 2015 - 40
HRO Today July/August 2015 - 41
HRO Today July/August 2015 - 42
HRO Today July/August 2015 - 43
HRO Today July/August 2015 - 44
HRO Today July/August 2015 - 45
HRO Today July/August 2015 - 46
HRO Today July/August 2015 - 47
HRO Today July/August 2015 - 48
HRO Today July/August 2015 - 49
HRO Today July/August 2015 - 50
HRO Today July/August 2015 - 51
HRO Today July/August 2015 - 52
HRO Today July/August 2015 - 53
HRO Today July/August 2015 - 54
HRO Today July/August 2015 - 55
HRO Today July/August 2015 - 56
HRO Today July/August 2015 - 57
HRO Today July/August 2015 - 58
HRO Today July/August 2015 - 59
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-chro-today-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-march-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2019
https://www.nxtbook.com/sharedxpertise/sharedxpertise/chro-today-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-march-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2018
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-march-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2017
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-march-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2016
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-september-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-july-august-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-november-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-october-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-december-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-january-february-2015
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-june-1014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-may-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hro-today-april-2014
https://www.nxtbook.com/sharedxpertise/sharedxpertise/hrot-january-february-2014
https://www.nxtbookmedia.com