Multinationals bump up stakes in expat benefits

first_img Previous Article Next Article Multinationalsbump up stakes in expat benefits Multinational companies are making theirexpatriate benefit packages more competitive, according to a William M Mercersurvey. The survey of 200 companies worldwide shows that eight out of 10companies now recognise that mobility premiums and hardship grants areessential to the success of assignments. The allowances range from 30 to 40 per cent of gross base salary for certaindestinations deemed to be difficult locations, such as Algeria, the DemocraticRepublic of Congo and China. Yvonne Traber, co-author of the survey and a senior researcher at William MMercer, said, “The expatriate environment is becoming very competitive asindividuals are often placed on assignments where they are in contact with otherexpatriates. Inevitably they compare conditions and discuss who has the betterdeal. It can be a huge loss of investment for the company if these individualsleave while on assignment.” To combat this problem, about 20 per cent of companies said they pay part ofthe mobility premium at the beginning of the assignment and the remainder onrepatriation home. More than three-quarters of the companies surveyed recognise the importanceof spouse support in the success of their expatriate programme. But the surveyshows that 69 per cent of respondents are failing to grant cash allowances tosupport spouses. Traber predicts there will be an increasing number of young people going onexpatriate assignments, as junior employees are generally more mobile and considerthese opportunities as part of their career development. www.wmmercer.com Comments are closed. Multinationals bump up stakes in expat benefitsOn 30 May 2001 in Personnel Today Related posts:No related photos.last_img read more