Recently, AIRINC hosted a thought-provoking roundtable discussion, delving into two pivotal benchmark publications on Host Plus Assignments and International One-Way Transfers. This gathering not only provided valuable insights, but also tailored the conversation to the APAC context, emphasizing trends and practices that define today’s mobility programs.
Open Forum: Addressing Key Challenges
An essential part of the discussion focused on the questions and challenges participants faced with their mobility programs. Key topics included:
Host Plus Approach
Participants discussed a few challenges leading to several key takeaways:
- Most companies determine the ‘plus’ components of a package on a case-by-case basis.
- Some level of relocation support, such as tax preparation assistance, is commonly provided.
- A notable practice came from one company that offers salaries in multiple currencies, reviewed annually for flexibility.
- Many firms guarantee a net salary, absorbing all taxes associated with assignments.
Technology & Metrics
The conversation turned to technology and metrics used in managing relocation cases. Interestingly, about half of the participants indicated that they outsource tracking to Relocation Management Companies (RMCs). Some companies leverage internal programs for tracking and reporting.
Compensation, Relocation Support, and Termination Practices
The discussion continued as participants considered compensation approaches:
For long-term assignments, the home-based balance sheet approach was the predominant strategy, with many firms covering additional taxes incurred. Short-term assignments presented unique challenges, particularly concerning compliance and host country tax implications. Regarding repayment agreements, most companies applied a 12-month repayment period, should an assignee resign, while stating that company-driven terminations would not require repayment of benefits.
Conclusion: A Seamless Exchange of Ideas
The roundtable was not just a platform for sharing insights; it fostered an engaging networking experience for all attendees. Participants left with a deeper understanding of prevalent practices in mobility programs and were encouraged to continue the conversation beyond the meeting.
Please get in touch with Lynette Laurence if you would like to attend our next roundtable in Singapore!
