The nature of international assignments, where employees are sent to reside/work in another country by their employer for a ‘temporary’ period only, usually means that they will retain financial commitments in their home country – or at least wish to retain any savings there.
We have produced a whitepaper on the 4 essential factors to consider in managing the issues of exchange rates for your international assignments. The whitepaper covers:
- How to maintain perceived equity in the calculation of the remuneration by using the home-country currency method.
- How to identify the most transparent method for the management in the host country, to get a known cost, which can be matched against the budgeted cost at the start of the assignment.
- How to use the split-pay approach that allows the assignee the flexibility to decide the percentage of salary that will be paid in the host currency.
- Understanding how to use another major component of the international assignment package, the cost-of-living allowance.