A brand new tool for organizations and for their employees
A new tool has been introduced by Mercer. This latter enables organizations to streamline how pay is established for international employees on a localized compensation program. Now it is possible to quantify the economic impact to expatriates placed on a host-based compensation package.
It works by calculating the difference between costs in the current and proposed locations, taking into account taxes, cost of goods and services, and housing expenses.
Compensation Localizer let organizations establish financial packages to meet both, the individual and company needs, by applying standardized or customized data for employees on a host-based expatriate compensation package. This includes local plus packages (where it is a feasible alternative to a traditional expatriate package), localization (transitioning expatriates to host-based pay), one-way indefinite international transfers and locally or directly hired foreigners.
This tool is a new international compensation online resource for the mobility marketplace.
This way, organizations can calculate the precise economic gain or loss of transferees, compare pay packages to the local market using Mercer’s proprietary market remuneration data, and easily determine a compensation package that represents a gain or needs to be modified because of an economic loss.
Compensation Localizer ease the process for negotiating a pay package that meets both the need of the assignee and the organization.