Expatriate Compensation

Interactive Exercise

Now it's time to try your hand at using the information you've learned to set an employee's pay for a foreign assignment.

Introduction

When sending employees to other countries, one of the major principles is to "keep the employee whole" so that the employee does not suffer financially but also does not receive windfalls. This requires a series of adjustments to the employee's base salary, so that the employee will not lose income or quality of life due to the transfer.

In this case, we will use ERI's Relocation Assessor to examine the differences in the cost of living between the home country of the employee and the locale of the foreign assignment.