IDS Study 857, November 2007

International assignments

• Focuses on the compensation packages and management issues associated with sending staff on international assignments

• Covers approaches to pay, salary adjustments, benefits and relocation assistance

• Examines how employees are prepared for an assignment and supported in the host location, as well as arrangements made for repatriating them at the end of an assignment

• Features detailed case studies describing how international assignments are managed at six companies

In an increasingly globalised business environment, employees with, or willing to acquire, international business experience are particularly valuable. While the use of short-term assignments is growing, traditional longer-term assignments – typically of two to three years – are still widely used to meet this demand. Organisations use international assignments to cover temporary skill gaps, to fill senior management positions, to transfer skills and knowledge, to resource start-up operations or for career development purposes.

To encourage employees to take up an assignment, the compensation package needs to be sufficiently attractive. The two main approaches to this – each with their respective advantages and drawbacks – are examined. In addition, the many elements that make up an assignment package, including cost-of-living adjustments and hardship allowances, accommodation, leave arrangements, financial support for the family and relocation assistance, are considered in detail.

While certain items are often outsourced to specialist providers, many organisations undertake much of their expatriate administration in-house. This Study examines the main issues involved in managing assignments, including preparing employees for an assignment, providing support during it and co-ordinating the repatriation process.

This publication includes detailed case studies of how international assignments are managed at Reuters, Standard Chartered, BT, PricewaterhouseCoopers, Atkins and Lilly. The key provisions for international assignees at these organisations are also summarised.