How do you compensate an employee on a foreign assignment?

What are the good practices? Does it depends on life condition in the foreign country? the distance from home? what else?


Opened by Antoine Fournier, Head of ECM, Input and Output management, Zurich Insurance
Oct 25, 2013.

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Jesse Domingo Leadership Adviser, Strategist
Oct 27, 2013

Many times employers base it on the country's standards - that's why they end up employing 4 average performers instead of 1 real talent. However, if discrepancy is way below compared to world standards then you would eventually have a problem in performance. If it's too high then you'd have a motivated employee for at least 6 months, after that, he'd be sort of complacent.

Ideally, compensation should be at par with world not country standards especially in regard to executives. If ever there would be differences then better go for the upside than below standard.

In all this, lean towards the safety and the real needs of your man (with consideration to your company's purpose) more than the life condition of the foreign country. Mind you, different folks have different strokes. And good people are assets not costs.

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