Currency Devaluations and Cross-Border Assignments: Do's and Don'ts, Part II

    May 05, 2016 @ 03:32 PM / by Genie Martens

    Currency_Deval_2-325580-edited.pngHas your organization been faced with major currency devaluation issues in the past year? Part I of this white paper addressed the effects of currency devaluations on temporary cross-border compensation for assignees into affected countries. Part II continues the discussion on currency devaluation but switches the focus to compensation arrangements for assignees from countries that have devalued their currencies.

    Download Part II to learn about the home-based balance sheet approach and the do's and don'ts when using this approach:
    • Consider a quick COLA update for exchange rate change
    • Stick to balance sheet principles
    • Don't let currency conversion issues drive your compensation solution
    • Consider coordinating salary and COLA adjustments
    • Think twice about linking pay to host if a career at home or future mobility is expected
    • Host-based is not always the cheaper solution
    • Watch out when both home and host countries are economically volatile

    Carefully thought-out policies and pay approaches help companies achieve both business and career planning goals, control costs, and minimize exceptions.

    Topics: Currency Volatility, Mobility Policy, Currency Devaluations

    Genie Martens

    Written by Genie Martens

    As a senior member of AIRINC’s Client Engagement team and Advisory Consultant, Genie counsels Global 500 companies on designing, implementing and managing effective mobility programs for their international employees. With over thirty years of experience in the field of global mobility, Genie’s areas of expertise include mobility program and pay design, and development of data solutions to support mobility programs. Genie frequently interacts with clients and their stakeholders in business case presentations and workshops, and has traveled to over forty countries in connection with these activities. She works with a diverse range of industries including consumer goods, EPCM, financial services, energy and non-profit sectors. Genie is also focused on providing support to existing programs with respect to communications, training and problem-solving, and is a frequent contributor and speaker at AIRINC’s educational seminars and roundtables.