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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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Employing Novel Compensation Approaches to Compete for Expatriate Talent

YVONNE MCNULTY

Singapore Institute of Management University

Expatriate compensation is often regarded as a key and strategic component of effective international assignment management, yet as the fierce competition for foreign talent increases, compensating expatriates is undoubtedly becoming more and more complex. A survey by Ernst & Young, for example, found that 67 percent of mobility managers reported “compensation packages” as the biggest area where international assignee expectations are not met.1 This may be due in part to fluctuating exchange rates, inflation, challenging locations in emerging markets, variable income tax rates, and a range of new compensation ...

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