Going Local (ePub)

Companies have long accepted the high cost of expatriate assignments as the price of doing business in the global arena. Now, companies are increasingly considering expatriate localization in response to increased pressures to trim costs within global mobility programs. Expatriate assignments cost an average of $1 million over a three-year period, so converting an expatriate to a local package can save a company hundreds of thousands of dollars, if done correctly. Localization involves changing the expatriates total compensation (including base salary, incentive compensation, risk benefits, perks, social security, and retirement plans) into one that is identical to that available to locally hired employees. This is done with the understanding that the employee does not intend to return to their home country. The benefits of localization for cost containment, peer equity, and business imperatives are evident. However, developing and implementing an effective localization policy is a challenge that most employers find too daunting to undertake alone. From handling changes in retirement benefits to salary differentials, local labor law and tax compliance, the complexities of this conversion are enormous. Now, corporate employee mobility expert Yvonne Bosson has developed a comprehensive handbook to address the issue in a way that is clear and easy to understand. This invaluable resource guides human resources professionals and relocation administrators through the multifaceted process of examining their current localization policy and identifying areas for improvement. This book is also ideal for companies just beginning to transfer employees globally. It provides an in-depth examination of the structure and components of a successful relocation and localization program along with pertinent advice on communicating policies.