4 essential factors to consider in managing exchange rates for your international assignments

The nature of international assignments, where employees are sent to reside/work in another country by their employer for a ‘temporary’ period only, usually means that they will retain financial commitments in their home country – or at least wish to retain any savings there.

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Nov 28, 2016
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The nature of international assignments, where employees are sent to reside/work in another country by their employer for a ‘temporary’ period only, usually means that they will retain financial commitments in their home country – or at least wish to retain any savings there.

Thus the issue of exchange rates is one that has been familiar to assignees and their employers for many years. Rates of exchange between the home and host currency (and sometimes a third currency) may be used in setting remuneration at the start of an assignment. As the employee remits funds to and from the assignment country against a constantly changing rate, this will have an effect on his/her perceived ‘purchasing power’ during the assignment.

We have produced a whitepaper on the 4 essential factors to consider in managing the issues of exchange rates for your international assignments. The whitepaper covers:

  1. How to maintain perceived equity in the calculation of the remuneration by using the home-country currency method.
  2. How to identify the most transparent method for the management in the host country, to get a known cost, which can be matched against the budgeted cost at the start of the assignment.
  3. How to use the split-pay approach that allows the assignee the flexibility to decide the percentage of salary that will be paid in the host currency.
  4. Understanding how to use another major component of the international assignment package, the cost-of-living allowance.

Download whitepaper here

Go to the profile of Alan Bentley

Alan Bentley

Managing Director, IPM Global Mobility Limited

I joined IPM Global Mobility in 2004 as Managing Director. My main focus is to help Global Mobility professionals to develop and implement a seamless process for transferring their assignees between countries, ensuring compliance at all times. My role is to ensure we provide a flexible management service that delivers cost savings, legal compliance, and peace of mind to Clients. Through continuous improvement of our systems and processes we ensure your HR team are benefiting from time and cost efficiency, and receive a very personal and responsive service from our highly competent team of experts. This almost inevitably leads to long-lasting relationships that ensure your company is fully compliant, and your assignees and their families arrive at their new destination relaxed, prepared, and ‘ready to go’. What makes IPM very different is the culture and connection where IPM become a natural extension to the in-house HR teams. We value the relationships we have with our clients, and recruit a team with the same vision and passion to build strong, long-lasting partnerships.

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