The globalisation of the marketplace is well documented – many companies have sales, manufacturing or R&D operations in multiple locations around the world and use these to build the international experience of future senior managers. Traditionally, companies have paid a premium to incentivise employees to relocate. Whether the approach has been a Host salary basis or Home-based build-up the package has been laden with allowances for housing, education, hardship and R&R. With the total package being a multiple of 4 or 5 times base salary, companies are keen to quantify an ROI on their investment.

For some time, the profile of international assignees has been changing – no longer is it the domain of a lead assignee and trailing spouse – dual careers make the decision more complex with short-term or commuting assignments becoming more popular and associated packages being adapted.

But do companies still have to offer such generous terms? With Gen Y increasingly becoming a dominant proportion of the workplace, the attitudes of employees is changing. Gen Y have grown up in a global and connected world, they see themselves as global citizens, are more widely travelled and more likely to expect an international career. Early on, many move countries as frequently as they move jobs and are happy to be employed on a local basis. Others who are more established and  who join organisations with the expectation of an international career are more motivated by the experience, interesting job or project and career progression than the whistles and bells of an assignment package.

As a result, some companies are looking to adapt their assignment packages for this group by creating a globally mobile cadre with a suitable reward offering which reflects the international nature of the employee offering but without all of the traditional add-ons.

If you are looking to review the reward elements of your international assignment Innecto Reward Consulting can help.  Call us on 020 3457 0894.

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