Key Things You Need to Know About Inflation and Your Global Mobility Program - Step 3: Other Allowances

    Jan 24, 2023 @ 04:57 PM / by Adam Silver

    2022 Inflation GM Download-1

    How does inflation impact 'other allowances'?

    With inflation continuing to be a global issue, let’s review some key areas that inflation can impact your global mobility program and ways to address them! Let's move on to step three, those 'other allowances'.

    In the first two parts of this series, we looked at inflationary impact on COLA and housing & utilities, but what else do you need to consider?

    Do you have other cash benefits like Miscellaneous Relocation Expenses or home leaves? Allowances that are “set and forget” or updated rarely can be affected by inflation too. As costs rise, they can become insufficient, causing assignee complaints and headaches for all involved.

    What can you do?

    Review your provisions and how they are communicated up with the pace!

    Take a look at your policy for these items and identify whether what is intended to be covered is clearly communicated. This will help you evaluate whether what you are providing is sufficient. If it is not clear, this is a good time to evaluate what they should cover. This will make it easier to respond to assignee questions or pushback.

    Review the amounts you are providing

    If you are in the 25% of companies that do not provide utilities support, you may wish to look at providing reimbursement or an allowance to ensure assignees are not being unduly burdened by increasing host costs


    Download the full paper now for details on how inflation and currency fluctuations can affect your global mobility program, as well as concrete steps you can take to maintain your assignment allowances.


    Download the Paper



    Interested to know more about how AIRINC tools can help you with 'other' allowances?

    1. AIRINC's Furnishing Rental & Allowance Reports
      Furnishing Rental Report
      AIRINC has partnered with CORT Global Network to collect and curate the cost for rental furniture across the globe. This data can be used for cost estimates or for employee benefits either as reimbursement  or direct payments.
      Furniture Allowance Report
      One of the most flexible approaches to providing household goods and furnishings is to administer an allowance or reimbursement limit for purchases. This flexibility helps employees obtain the right furnishings based on their specific situation & needs. AIRINC collects and curates the cost of household furnishings across the world.
    2. AIRINC's Lump Sum Calculator
      Leverage AIRINC’s industry-leading data sets to create a custom Lump Sum Calculator to fit your organization’s policies and objectives. Lump sum benefit offerings have become popular across the spectrum of assignment types: long-term, short-term, permanent and domestic, and are seen as a way to increase flexibility to the employee and business, and reduce administration.
    3. AIRINC's Global Reward Calculator
      You want your rewards programs to offer equitable recognition for employee achievements. When you adjust rewards allowances by country, you can provide more globally aligned rewards ranging from wellness allowances and sales stipends to remote work benefits. The Global Reward Index is based on cost of living data to help you vary these benefits by country, better aligning your program.

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    Read more from our blog AIRSHARE:

    Currency Performance: Worst & Best in November 2022

    Can a recession be good for global mobility?

    New Ways for International One-Way Transfers: Creative Use Cases


    Topics: Currency Volatility, Housing, Expatriate Housing, Hyperinflation, International Housing Guide, Furniture Allowance Reports, lump sums, Long-Term Assignment, Inflation, Utilities, Expatriates, Furnishing Rental

    Adam Silver

    Written by Adam Silver

    Adam Silver joined AIRINC in 2006 and currently serves as the Director for Client Engagement, North Central US. Adam has worked in Client Engagement at AIRINC for 14 years, partnering with AIRINC’s clientele across most industries to help provide data, consulting and support to help them reach their mobility goals. Adam received his BA from Wesleyan University and was an expatriate teaching English in Osaka, Japan from 2005-2006.