By: Genie Martens, Senior Director at AIRINC
This complementary white paper continues the discussion from Part 1 on currency devaluation, but switches the focus to compensation arrangements for assignees from countries that have devalued their currencies.
Since currency devaluations are generally intended as a fix for unhealthy economies, the right compensation solutions are not always simple or obvious. Economic and political instability, particularly in emerging markets, can present mobility professionals with compensation challenges both before and after a formal currency devaluation occurs. Many of the principles and compensation solutions reviewed in Part 2 of this whitepaper can therefore be equally useful when addressing either a major devaluation or ongoing economic volatility. The paper examines each pay approach – Home-based Balance Sheet and Host-based Pay, and highlights the various ways to address home country devaluations and economic volatility.