Many companies will pay a lump sum relocation allowance to cover such expenses as passports, visas, medical check-ups and other miscellaneous expenses incurred as a result of taking up an assignment. Lump sums and cafeteria approaches are often discussed but few companies actually use them at this stage. If they do, it is likely to be the larger multinational companies with a large expatriate population. Benefits Pension, social security, medical care plus cars and other benefits need to be considered along with home leave trips, pet s etc. Once the compensation policy has been agreed, it is important to benchmark against best practice to see how it compares against the market and or competitor companies.
Implementation is the next step.
Very often a policy can flounder if implementation is not carried out effectively. Clear, concise communication is key, to ensure line managers, expats and all concerned with the assignment process understand the policy and do not try to get around it by agreeing exceptions or special deals. It is important to use a reliable source and to update allowances on a regular basis. Most of the consulting firms work with corporate clients only and do not advise expatriates on an individual basis. Tax and social security issues are far more complex for expats than domestic employees and companies are advised to contact one of the big 5 Accounting firms to ensure they handle tax issues in the most cost efficient way.