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.
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.
In this interactive session, our experts will cover:
We are offering three convenient sessions to suit your time zone:
All sessions will be recorded. If time zones prevent you from attending live, please register to receive a link to the recordings.
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.
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.
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.
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.