Mercer has introduced a new tool that enables organizations to streamline how pay is established for international employees on a localized compensation program.

Compensation Localizer quantifies the economic impact to expatriates placed on a host-based compensation package by calculating the difference between costs in the current and proposed locations, taking into account taxes, cost of goods and services, and housing expenses.

Organizations can 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, including 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.

“We are excited to introduce a new international compensation online resource for the mobility marketplace,” says Luc Lalonde, a principal with Mercer Canada.

Mercer says the tool simplifies the process for negotiating a pay package that meets both the needs of the assignee and the organization.

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