| INTERNATIONAL REWARD Managing and rewarding international assignments Getting the expatriate compensation package right and keeping it relevant and up to date is a continuing challenge for organisations. A new study by pay analysts Incomes Data Services looks at the main issues involved in managing and rewarding international assignments. Key results of IDS research - As organisations become more global, employees with, or willing to acquire, international business experience are increasingly valuable. While alternatives such as short-term assignments and weekly commuting arrangements have their place, IDS reckons that traditional longer-term assignments - typically two to three years - are still widely used to meet this demand.
- The research shows that organisations use international assignments for covering temporary skill gaps, filling senior management positions, transferring skills and knowledge, staffing start-up operations or for career development purposes.
- While certain items are outsourced to specialist providers, many organisations undertake much of their expatriate administration in-house.
| What you will find in this report | | This special issue of IDS Study sets out the main approaches to compensation - each with their respective advantages and drawbacks. | | In addition, the many elements that make up an assignment package are considered in detail, including: - cost-of-living adjustments
- hardship allowances
- accommodation
- leave arrangements
- financial support for the family
- relocation assistance.
| | IDS Study looks at the main issues involved in managing assignments, including: - preparing employees for an assignment
- providing support during it
- co-ordinating the repatriation process.
| | Case studies The report contains in-depth case histories of how international assignments are managed in five leading organisations. Each case study includes a summary of the company's assignment policy. | - Cadbury Schweppes: Assignments are managed by an in-house team most are longer-term and undertaken by experienced senior managers. Culture awareness assessments are carried out as part of the selection process for assignees.
| - Smith & Nephew: Following a recent organisational restructure into global business units, employees with international business experience have become increasingly important. A rapid growth in assignee numbers prompted a review of assignments policy.
| - Oracle: A large number of international assignments result from consulting projects for external clients. While the company has a global policy, assignments are managed within three regions. Most assignments are short-term.
| - BG Group: 300 employees are currently on international assignments, managed by a small in-house team. The company tries to provide assignees and their families with as much preparation and support as possible before the assignment.
| - ICI: A shared services approach is used for the administration of assignments within three separate regions. While a number of changes resulted from a recent review of assignments policy, the company retained its better of home or host approach to determining packages.
| Want to know more? Title: International assignments , IDS Study 728, May 2002. Availability: Contact customer services at Incomes Data Services in London, tel: 020 7324 2599, or email sales@incomesdata.co.uk. IDS is an independent research organisation providing information and analysis on pay and conditions, pensions, employment law and personnel policy and practice in the UK and the rest of Europe. For more information about IDS, jump to . . . www.incomesdata.co.uk Posted 11 June 2002 |
