At AIRINC, we hear many of the same questions from mobility teams and their assignees: “Why has my COLA gone down?” “How is inflation affecting my allowance?” “What role do exchange rates play?” These are important questions and they deserve clear, data-driven answers.

Because we work every day with the data every day, we understand how challenging it can be to communicate these changes with confidence. That’s exactly why we’re offering this Back-to-Basics webinar. Our goal is to demystify the mechanics behind COLA, explain how economic trends shape allowances, and give mobility professionals the knowledge they need to support their assignees.

Why COLA and Exchange Rates Matter

A well-managed COLA ensures that assignees maintain their purchasing power when moving between locations with different cost structures. In today’s dynamic economic environment, inflation and exchange rate fluctuations can significantly affect both the assignee experience and employer costs. Understanding how these factors interact helps mobility professionals maintain equity and transparency in their programs.

As explained in AIRINC’s Education Knowledge Base on COLA, the allowance bridges the gap between home and host markets by accounting for differences in goods and services prices. COLA is not a bonus; it is a data-driven adjustment that ensures employees maintain a consistent standard of living while on assignment.

What You Will Learn At Our Webinar

In this interactive session, our experts will cover:

  • The relationship between inflation, exchange rates, and COLA
  • How often COLA should be updated to reflect economic changes
  • Pay approaches and exchange rate management
  • How to effectively communicate COLA to assignees

Session Information

We are offering three convenient sessions to suit your time zone:

  • Session 1: November 18 | 11:00 AM San Francisco / 2:00 PM Boston REGISTER
  • Session 2: November 25 | 10:00 AM Hong Kong REGSTER
  • Session 3: December 4 | 10:00 AM Boston / 3:00 PM London REGISTER

All sessions will be recorded. If time zones prevent you from attending live, please register to receive a link to the recordings.

Common Questions About COLA and Exchange Rates

Why does my COLA decrease?

A decrease in COLA often reflects changing market conditions, such as lower inflation in the host location or a favorable exchange rate for the home currency. When prices fall or exchange rates improve, the amount needed to maintain equivalent purchasing power is reduced. COLA is not a fixed payment; it responds to current economic data.

How often should the COLA be updated?

Regular updates are important to ensure accuracy. Many organizations review COLA quarterly or biannually, depending on the volatility of the currencies and inflation in their assignment locations. During periods of rapid economic change, more frequent reviews may be necessary.

Is COLA considered part of base pay?

No. The Cost of Living Allowance is not part of an employee’s base salary. It is an adjustment designed to equalize purchasing power between the home and host locations so that assignees are neither advantaged nor disadvantaged by cost differences.

How should I explain COLA to assignees?

Transparency is key. Explain that COLA is based on objective market data, not discretion or performance. It adjusts as economic conditions change, helping assignees understand that variations in COLA reflect shifts in prices and exchange rates, not individual circumstances.

I am pleased to be one of the presenters for this Back-to-Basics session. These discussions help demystify how COLA and exchange rates work in practice. I look forward to seeing you there.

 

Register

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