Employers worldwide are using an expanding array of packages as they aim to balance costs with attracting and retaining talent. According to Mercer’s Alternative International Assignments Policies and Practices Survey report, “Local Plus” packages are increasingly being used by employers to attract and retain talent at the right price.
The “pluses” most commonly added to an expatriate worker’s pay and benefits package are tax assistance, host housing, relocation services, dependent education, medical benefit, and home leave.
“Global employers tell us that there are a number of reasons why they use a Local Plus approach, including cost reduction, market competitiveness, employee satisfaction, and employee retention,” says Mike Shore, a principal and expatriate compensation expert in Mercer's Talent business. “While employers may face some challenges in offering Local Plus — such as communicating the approach to assignees, dealing with inequities between countries, and occasional legal issues — most find it a valuable tool in their efforts to appropriately reward mobile employees.”
Learn more about the use of Local Plus in international assignments.
For more information about the survey, visit www.imercer.com/aia.