ORC Compensation » Expatriate Management, Data, and Compensation » Custom Approaches to Compensating Expatriates

Pure Home-country Salary

This approach maintains expatriates on the home-country compensation and benefit programme with no equalisers, premiums, adjustments, or other add-ons. Although attractive when the company is initially entering the global marketplace—and sending employees on business trips—it is not a viable model for short- or long-term assignments.

Advantages:

• Ties basic pay and benefits to the home country.
• Lowers expenses (no equalisers).
• Allows easy explanation.

Disadvantages:

• Does not recognise cost differences between home and host.
• Risks loss of purchasing power abroad, which may lead to morale problems.
• Takes no account of different tax systems and tax levels.

For more information, contact one of our worldwide offices or e-mail International Compensation Services.

International Mobility

Expatriate Programme Consulting

Expatriate Compensation Data

Custom Approaches

Pure Home-country Salary

Headquarters-based Pay

Host-country Approaches

Net-to-Net Approach

Higher of Host or Home

Modified Balance Sheet

For Missionaries and Nonprofits

Seminars

Publications

Expatriate Networks

Compensation Services

International Mobility

Global Local-National

Global Development

SIRS® Compensation Surveys