Expatriates are expensive, and this doesn’t come as a surprise. Indeed, according to the latest Brookfield Global Relocation Trends report (2014) expatriation cost pressures continue to be a predominant concern among multinational corporations. Although the majority of companies (98%) are still using long-term assignment policies, most probably with a balance sheet compensation approach, the continuous […]
Increased globalization continuously pushes organizations to expand further into emerging markets, to operate across borders more effectively, and to create better results in more cost-saving, flexible and innovative ways. This explains the spreading popularity of virtual working arrangements (e.g. telecommuters, virtual cross-cultural teams) as well as rapid transformations in HR strategies, such as moving talent […]
From an organizational perspective, thinking about expatriation often starts with thinking about expatriate compensation.
Broadly speaking, we can differentiate between two different approaches to expatriate compensation: the balance sheet approach and the going rate approach. Have a look at the review.
Companies argue that expatriates provide benefits both in the short and long term; yet, only a few can quantify these benefits. According to the 2011 Brookfield Global Relocation Trends survey, only 8% of responding firms actually appear to measure the return on investment (ROI) for global staff mobility.
Clearly, being an expat involves a number of important stressors in life, such as moving between countries, starting a new job or project, adjusting to a new culture, and having to build new relationships. Why is it worthwhile to tolerate these challenges?