An international compensation and benefits policy must fit in with domestic policies. It is vital that reward programmes validate the reasons why key employees should uproot their families or else they are unlikely to remain loyal to that company. Llyn Clague, editor of Expatriate Management Update, spoke at the Corporate Relocation Now conference in London on expatriate compensation. The devil is in the details, he said. I believe that each company should adopt three to five plans, each of which can then be tailored to the individual.
Flexibility is so important.
Compensation policies are far more than a cost of living allowance. They should attract, retain, motivate and mobilise employees. Each employee is an individual and each posting is unique for that person depending on where he has come from, his family requirements and life stage. A reward package that makes sense, is objectively justifiable, efficient and relevant is vital if it is to succeed.