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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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43

Critical Expatriate Compensation Issues and Practices

ROGER HEROD

Mercer LLC

This chapter provides readers with a guide to the fundamental issues that organizations face in paying employees they transfer between countries. Compensation systems for expatriates, as such employees are often known, are complex and generally expensive. The original policies developed by companies to encourage employees to take international assignments were often very generous, sometimes even lavish, because international assignments were not part of the mainstream in terms of career progression within many companies. However, the globalization of many business activities has created a rapidly changing environment in which companies have found that successful ...

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